[Title 15 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2013 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

          Title 15

Commerce and Foreign Trade


________________________

Parts 300 to 799

                         Revised as of January 1, 2013

          Containing a codification of documents of general 
          applicability and future effect

          As of January 1, 2013
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

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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                                                  61
          Chapter VII--Bureau of Industry and Security, 
          Department of Commerce                                    93
  Finding Aids:
      Table of CFR Titles and Chapters........................     957
      Alphabetical List of Agencies Appearing in the CFR......     977
      List of CFR Sections Affected...........................     987

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

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

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

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                               EXPLANATION

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

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

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

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    To determine whether a Code volume has been amended since its 
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OMB CONTROL NUMBERS

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

[[Page vi]]

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

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``[RESERVED]'' TERMINOLOGY

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that volume.

[[Page vii]]

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    Raymond A. Mosley,
    Director,
    Office of the Federal Register.
    January 1, 2013.







[[Page ix]]



                               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, 2013.

    For this volume, Jonn V. Lilyea was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Michael L. White, assisted by Ann Worley.

[[Page 1]]



                  TITLE 15--COMMERCE AND FOREIGN TRADE




                   (This book contains parts 300-799)

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

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

                                                                    Part

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)

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 CHAPTER III--INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE




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

                 SUBCHAPTER A--MISCELLANEOUS REGULATIONS
Part                                                                Page
300             [Reserved]

301             Instruments and apparatus for educational 
                    and scientific institutions.............           7
302             [Reserved]

303             Watches, watch movements and jewelry program          20
310             Official U.S. Government recognition of and 
                    participation in international 
                    expositions held in the United States...          41
315             Determination of bona fide motor-vehicle 
                    manufacturer............................          46
325             Export trade certificates of review.........          47
335             Imports of worsted wool fabric..............          56

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                 SUBCHAPTER A_MISCELLANEOUS REGULATIONS



                           PART 300 [RESERVED]



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 
          (Customs and Border Protection).
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 Customs and Border 
          Protection 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; 19 U.S.C. 1514(c)(3)); and 
Presidential Proclamation 7011, signed on June 30, 1997.

    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 toSec. 
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 
Customs and Border Protection 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.

[[Page 8]]

    (3) Repair components for instruments or apparatus admitted duty-
free 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 Customs and Border Protection. 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; 74 FR 30463, June 26, 2009]



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) The Commissioner means Commissioner of Customs and Border 
Protection, or the official(s) designated to act on the Commissioner's 
behalf.
    (c) CBP 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 andSec. 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 a vacuum evaporator sold for use with an electron 
microscope, 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 and Border Protection 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.,

[[Page 10]]

scanning electron microscope, x-ray 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; 74 FR 30463, June 26, 2009]



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 20230, the Web site at http://ia.ita.doc.gov/sips/
index.html, or from the

[[Page 11]]

various District Offices of the U.S. Department of Commerce.
    (c) Where to apply. Applications must be filed with the U.S. Customs 
and Border Protection, 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 inSec. 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 
alsoSec. 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.

(Approved by the Office of Management and Budget under control number 
0625-0037)

[47 FR 32517, July 28, 1982, as amended at 50 FR 11501, Mar. 22, 1985; 
66 FR 28833, May 25, 2001; 74 FR 30463, June 26, 2009]



Sec.  301.4  Processing of applications by the Department of the 
Treasury (Customs and Border Protection).

    (a) Review and determination. The Commissioner shall date each 
application when received by Customs and Border Protection. 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

[[Page 12]]

things, whether the results of any research to be performed with the 
instrument will be fully and timely made available to the public. For 
the purposes of this section, use of an instrument for the treatment of 
patients is considered noncommercial.

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

    (b) Forwarding of applications to the Department of Commerce. If the 
Commissioner finds the application to be within the scope of the Act and 
these regulations, the Commissioner shall (1) assign a number to the 
application and (2) forward one copy to the Secretary of the Department 
of Health and Human Services (HHS), and two copies, including the one 
that has been signed in the original, to the Director. The Commissioner 
shall retain one copy and return the remaining copy to the applicant 
stamped ``Accepted for Transmittal to the Department of Commerce.'' The 
applicant shall file the stamped copy of the form with the Port when 
formal entry of the article is made. If entry has already occurred 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 inSec. 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; 74 FR 30463, June 
26, 2009]



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

[[Page 13]]

application is published in the Federal Register. In order to be 
considered, comments and related attachments must be submitted to the 
Director in duplicate; shall state the name, affiliation and address of 
the person submitting the comment; and shall specify the application to 
which the comment applies. In order to preserve the right to appeal the 
Director's decision on a particular application pursuant toSec. 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 ofSec. 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

[[Page 14]]

upon the provision of such information and may draw appropriate 
inferences from a person's failure to provide the requested information.
    (c) Advice from technical consultants. (1) The Director shall 
consider any written advice from the Secretary of HHS, or his delegate, 
on the question whether a domestic instrument of equivalent scientific 
value to the foreign instrument, for the purposes for which the 
instrument is intended to be used, is being manufactured in the United 
States.
    (2) After the comment period has ended (Sec.  301.5(a)(3)), the 
complete application and any comments received and related information 
are forwarded to 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 (seeSec. 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 ofSec. 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 Customs and Border Protection. 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,

[[Page 15]]

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

[[Page 16]]

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 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 (seeSec. 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. (SeeSec. 301.5(g).)
    (7) Information provided in a resubmission that, in the judgment of 
the Director, contradicts or conflicts with information provided in a 
prior submission, or is not a reasonable extension of the information 
contained in the prior submission, shall not be considered in making the 
decision on an application that has been resubmitted. Accordingly, an 
applicant may elect to reinforce an orginal submission by elaborating in 
the resubmission on the description of the purposes contained in a prior 
submission and may supply additional examples, documentation and/or 
other clarifying detail, but the applicant shall not introduce new 
purposes

[[Page 17]]

or other material changes in the nature of the original application. The 
resubmission should address the specific deficiencies cited in the DWOP. 
The Director may draw appropriate inferences from the failure of an 
applicant to attempt to provide the information requested in the DWOP.
    (8) In the event an applicant fails to address the noted 
deficiencies in the response to the DWOP, the Director may deny the 
application.
    (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 ofSec. 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; 74 FR 30463, June 
26, 2009]



Sec.  301.6  Appeals.

    (a) An appeal from a final decision made by the Director underSec. 
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 toSec. 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 CBP 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,

[[Page 18]]

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; 74 
FR 30463, June 26, 2009]



Sec.  301.8  Instructions for entering instruments through Customs 
and Border Protection 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 and Border Protection as accepted for transmittal to the 
Department of Commerce in accordance withSec. 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. Before the entry is 
liquidated, the applicant must file with the CBP Port a properly stamped 
copy of the application form. In the event that the CBP Port does not 
receive a copy of the properly stamped application form before 
liquidation, the instrument shall be classified and liquidated in the 
ordinary course, without regard for 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 toSec. 301.7 of these regulations. Liquidation in such 
case shall be made under subheading 9810.00.60, HTSUS.
    (b) Normal Customs and Border Protection entry requirements. In 
addition to the entry requirements in paragraph (a) of this section, the 
normal Customs and Border Protection entry requirements must be met. In 
most of the cases, the value of the merchandise will be such that the 
formal Customs and Border Protection 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. 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.

[[Page 19]]

    (d) Payment of duties. The importer of record will be billed for 
payment of duties when Customs and Border Protection determines that 
such payment is due. If a refund of a deposit made pursuant to paragraph 
(a)(4) of this section is due, the importer should contact Customs and 
Border Protection 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; 74 
FR 30463, June 26, 2009]



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 CBP 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 and Border 
Protection.
    (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 and Border Protection 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; 74 
FR 30463, June 26, 2009]



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 and Border Protection 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, as amended at 74 FR 30463, June 26, 2009]

                           PART 302 [RESERVED]

[[Page 20]]



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 and duty-
          refunds.
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, duty refund calculations and miscellaneous 
          provisions.

                            Subpart B_Jewelry

303.15 Purpose.
303.16 Definitions and forms.
303.17 Application for annual duty-refunds.
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. 167; Pub. L. 108-429, 118 Stat. 
2582.

    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, amended by 
Public Law 103-465, enacted 8 December 1994 and amended by Public Law 
108-429 enacted 3 December 2004. 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 any article imported into the customs territory of the United 
States duty paid except for any article containing a material which is 
the product of a country to which column 2 rates of duty apply. The 
amounts of these certificates may not exceed specified percentages of 
the producers' verified

[[Page 21]]

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 additional 
U.S. note 5 to chapter 91 of the Harmonized Tariff Schedule of the 
United States, HTSUS and may cancel or restrict the license or 
certificate of any insular manufacturer found violating the regulations.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
53 FR 52994, Dec. 30, 1988; 61 FR 55884, Oct. 30, 1996; 70 FR 67647, 
Nov. 8, 2005; 72 FR 16713, Apr. 5, 2007]



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, Public Law 108-429, enacted on 3 December 2004, 
118 Stat. 2582.
    (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 movements 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 and associated, creditable fringe benefits and 
creditable duty differentials eligible for the duty refund benefit 
include, but are not limited to, the following:

[[Page 22]]

    (i) Wages up to an amount equal to 65 percent of the contribution 
and benefit base for Social Security, as defined in the Social Security 
Act for the year in which wages were earned, paid to permanent residents 
of the insular possessions employed in a firm's 91/5 watch and watch 
movement program.
    (A) Wages paid for the repair of watches up to an amount equal to 85 
percent of the firm's total creditable wages.
    (B) Wages paid to watch and watch movement assembly workers involved 
in the complete assembly of watches and watch movements which have 
entered the United States duty-free and have complied with the laws and 
regulations governing the program.
    (C) Wages paid to watch and watch movement assembly workers involved 
in the complete assembly of watches, excluding the movement, only in 
situations where the desired movement can not be purchased unassembled 
and the producer has documentation establishing this.
    (D) Wages paid to those persons engaged in the day-to-day assembly 
operations on the premises of the company office, wages paid to 
administrative employees working on the premises of the company office, 
wages paid to security employees and wages paid to servicing and 
maintenance employees if these services are integral to the assembly and 
manufacturing operations and the employees are working on the premises 
of the company office.
    (E) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations may be credited proportionally 
provided the firm maintains production, shipping and payroll records 
adequate for the Departments' verification of the creditable portion.
    (F) Wages paid to new permanent residents who have met the 
requirements of permanent residency in accordance with the Departments' 
regulations, along with meeting all other creditable wage requirements 
of the regulations, which must be documented and verified to the 
satisfaction of the Secretaries.
    (ii) The combined creditable amount of individual health and life 
insurance per year, for each full-time permanent resident employee who 
works on the premises of the company office and whose wages qualify as 
creditable, may not exceed 130 percent of the ``weighted average'' 
yearly federal employee health insurance, which is calculated from the 
individual health plans weighted by the number of individual contracts 
in each plan. The yearly amount is calculated by the Office of Personnel 
Management and includes the ``weighted average'' of all individual 
health insurance costs for federal employees throughout the United 
States. The maximum life insurance allowed within this combined amount 
is $50,000 for each employee. Only during the time employees are earning 
creditable wages are they entitled to health and life insurance duty 
refund benefits under the program.
    (A) The combined creditable amount of family health and life 
insurance per year, for each full-time permanent resident employee who 
works on the premises of the company office and whose wages qualify as 
creditable, may not exceed 150 percent of the ``weighted average'' 
yearly federal employee health insurance, which is calculated from the 
family health plans weighted by the number of family contracts in each 
plan. The yearly amount is calculated by the Office of Personnel 
Management and includes the ``weighted average'' of all family health 
insurance costs for federal employees throughout the United States. The 
maximum life insurance allowed within this combined amount is $50,000 
for each employee. Only during the time employees are earning creditable 
wages are they entitled to health and life insurance duty refund 
benefits under the program.
    (B) The creditable pension benefit, for each full-time permanent 
resident employee who works on the premises of the company office and 
whose wages qualify as creditable, is up to 3 percent of the employee's 
wages unless the employee's wages exceed the maximum annual creditable 
wage allowed under the program (see paragraph (a)(13)(i) of this 
section). An employee earning more than the maximum creditable wage 
allowed under the program will be eligible for only 3 percent of the 
maximum creditable wage. Only during

[[Page 23]]

the time employees are earning creditable wages are they entitled to 
pension duty refund benefits under the program.
    (iii) If tariffs on watches and watch movements are reduced, then 
companies would be required to provide the annual aggregate data by 
individual HTSUS watch tariff numbers for the following components 
contained therein: the quantity and value of watch cases, the quantity 
of movements, the quantity and value of each type of strap, bracelet or 
band, and the quantity and value of batteries shipped free of duty into 
the United States. If discrete watch movements are shipped free of duty 
into the United States, then the annual aggregate quantity by individual 
HTSUS movement tariff numbers would also be required along with the 
value of each battery if it is contained within. These data would be 
used to calculate the annual duty rate before each HTSUS tariff 
reduction, and the annual duty rate after the HTSUS tariff reduction. 
The amount of the difference would be creditable toward the duty refund. 
The tariff information would only be collected and used in the 
calculation of the annual duty-refund certificate and would not be used 
in the calculation of the mid-year duty-refund.
    (14) Non-creditable wages and associated non-creditable fringe 
benefits ineligible for the duty refund benefit include, but are not 
limited to, the following:
    (i) Wages over 65 percent of the contribution and benefit base for 
Social Security, as defined in the Social Security Act for the year in 
which wages were earned, paid to permanent residents of the territories 
employed in a firm's 91/5 watch and watch movement program.
    (A) Wages paid for the repair of watches in an amount over 85 
percent of the firm's total creditable wages.
    (B) Wages paid for the assembly of watches and watch movements which 
are shipped outside the customs territory of the United States; wages 
paid for the assembly of watches and watch movements that do not meet 
the regulatory assembly requirements; or wages paid for the assembly of 
watches or watch movements that contain HTSUS column 2 components.
    (C) Wages paid for the complete assembly of watches, excluding the 
movement, when the desired movement can be purchased unassembled, if the 
producer does not have adequate documentation, demonstrating to the 
satisfaction of the Secretaries, that the movement could not be 
purchased unassembled whether or not it is entering the United States.
    (D) Wages paid to persons not engaged in the day-to-day assembly 
operations on the premises of the company office; wages paid to any 
outside consultants; wages paid to outside the office personnel, 
including but not limited to, lawyers, gardeners, construction workers, 
and accountants; wages paid to employees not working on the premises of 
the company office; and wages paid to employees who do not qualify as 
permanent residents in accordance with the Departments' regulations.
    (E) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations if the producer does not 
maintain production, shipping and payroll records adequate for the 
Departments' verification of the creditable portion.
    (ii) Any costs, for the year in which the wages were paid, of the 
combined creditable amount of individual health and life insurance for 
employees over 130 percent of the ``weighted average'' yearly individual 
health insurance costs for all federal employees. The cost of any life 
insurance over the $50,000 limit for each employee. Any health and life 
insurance costs during the time an employee is not earning creditable 
wages.
    (A) Any costs, for the year in which the wages were paid, of the 
combined creditable amount of family health and life insurance for 
employees over 150 percent of the ``weighted average'' yearly family 
health insurance costs for all federal employee. The cost of any life 
insurance over the $50,000 limit for each employee. Any health and life 
insurance costs during the time an employee is not earning creditable 
wages.
    (B) Any pension benefits that were not based on associated 
creditable wages. The cost of any pension benefit

[[Page 24]]

per employee over 3 percent of the employee's creditable wages unless 
the employee's wages exceed the maximum annual creditable annual maximum 
creditable wage allowed under the program (see paragraph (a)(13)(i) of 
this section). Employees earning over the maximum creditable wage 
allowed under the program would have a creditable annual pension benefit 
of up to 3 percent of the maximum creditable wage and wages over 3 
percent of the maximum creditable wage would not be creditable.
    (15) 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).
    (16) 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.)
    (17) 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 within a continuous 
365 day period) 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 Articles that Entered the Customs Territory of The United 
State Duty Paid.'' This document authorizes an insular watch producer to 
request the refund of duties on imports of articles that entered the 
customs territory of the United States duty paid, up to the specified 
value of the certificate. 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 Articles that Entered 
the Customs Territory of the United States Duty Paid.'' This form must 
be completed to obtain the refund of duties authorized by the Director 
through Form ITA-

[[Page 25]]

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 duty paid 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. (SeeSec. 303.12.)

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

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
53 FR 52994, Dec. 30, 1988; 56 FR 9621, Mar. 7, 1991; 61 FR 55884, 
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; 70 FR 
67647, Nov. 8, 2005; 72 FR 16714, Apr. 5, 2007; 73 FR 62881, Oct. 22, 
2008]



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 (seeSec. 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

[[Page 26]]

mind the aggregate benefits to the territories, such as creditable wages 
paid, creditable wages per unit exported, and corporate income tax 
payments.
    (3) Limitations on reduction of share. The Secretaries shall not 
reduce a territory's share if its producers use 85% or more of the 
quantity distributed to that territory in the immediately preceding 
year, except in the case of a major increase or decrease in the number 
of producers in a territory or if they believe that a territorial 
industry will decrease production by more than 15% from the total of the 
preceding year.
    (4) Standby redistribution authority. The Secretaries may 
redistribute territorial shares if such action is warranted by 
circumstances unforeseen at the time of the initial distributions, such 
as that a territory will use less than 80% of its total by the end of a 
calendar year, or if a redistribution is necessary to maintain the 
competitive nature of the territorial industries.

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



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

    (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 or duty-refund certificate 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, including time cards, production 
records, and all shipping records including the importer of record 
number and proof of residency, as requested;
    (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.
    (8) All records pertaining to health insurance, life insurance and 
pension benefits for each employee; and
    (9) If HTSUS tariffs on watches and watch movements are reduced, 
records of the annual aggregate data by individual HTSUS watch tariff 
numbers for the following components contained therein would be 
required: the quantity and value of watch cases; the quantity of 
movements; the quantity and value of each type of strap, bracelet or 
band; and the quantity and value of batteries shipped free of duty into 
the United States. In addition, if applicable, records of the annual 
aggregate quantity of discrete watch movements shipped free of duty into 
the United States by HTSUS tariff number.
    (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. It is the responsibility of each program producer to make 
the appropriate data available to the Departments' officials for the 
calendar year for which the annual verification is being performed and 
no further data, from the calendar year for which the audit is being 
completed, will be considered for benefits at any time after the audit 
has been completed. In the event of discrepancies between the 
application and substantiating data before the audit is

[[Page 27]]

complete, the Secretaries shall determine which data will be used in the 
calculation of the duty refund and allocations.
    (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; 70 FR 67648, Nov. 
8, 2005; 72 FR 16714, Apr. 5, 2007]



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 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 toSec. 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

[[Page 28]]

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 toSec. 303.14 at any time 
they consider it necessary to fulfill their responsibilities. Normally, 
such changes will be proposed towards the end of each calendar year. 
Interested parties shall be given an opportunity to submit written 
comments on proposed changes.

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

[[Page 29]]

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:
    (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]

[[Page 30]]



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 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, 
determined from the wages as reported on the employer's first two 
quarterly federal tax returns (941-SS), paid during the first six months 
of the calendar year, using the formula inSec. 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 be based on verified creditable wages, 
duty-free shipments into the customs territory of the United States, 
creditable health insurance, life insurance and pension benefits and the 
duty differential, if watch tariffs have been reduced during the 
calendar year. 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.

[[Page 31]]

    (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 Form 
ITA-361P (seeSec. 303.2(b)(5) and the instructions on the form). After 
authentication by the Department of Commerce, Form ITA-361P may be used 
to obtain duty refunds on articles that entered the customs territory of 
the United States duty paid except for any article containing a material 
which is the product of a country to which column 2 rates of duty apply. 
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 Public Law 97-446, as amended by Public Law 103-465 and 
Public Law 108-429. 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 ofSec. 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; 70 FR 67648, Nov. 8, 2005; 72 FR 16714, Apr. 5, 2007]



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 address of the petitioner and 
the name

[[Page 32]]

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; 72 
FR 16714, Apr. 5, 2007]



Sec.  303.14  Allocation factors, duty refund calculations and 
miscellaneous provisions.

    (a) The allocation formula. (1) Except as provided in (a)(2) of this 
section, the territorial shares (excluding any amount set aside for 
possible new entrants) shall be allocated among the several producers in 
each territory in accordance with the following formula:
    (i) Fifty percent of the territorial share shall be allocated on the 
basis of the net dollar amount of economic contributions to the 
territory consisting of the dollar amount of creditable wages, up to 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 $300 for watch movements and $3000 for watches shall 
not be eligible for duty-exemption upon entry into the U.S. Customs 
territory. Value

[[Page 33]]

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 inSec. 
303.13(b).
    (c) Calculation of the value of the mid-year production incentive 
certificates. (1) The value of each producer's certificate shall equal 
the producer's average creditable wage per unit shipped during the first 
six months of the calendar year 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 units times a factor 
of 80%; plus
    (iv) Incremental units shipped up to 750,000 units times a factor of 
75%.
    (2) Calculation of the value of the annual production incentive 
certificates. The value of each producer's certificate shall equal the 
producer's average creditable benefit per unit based on creditable 
wages, health insurance, life insurance and pension benefits plus any 
duty differential, if applicable, averaged from the amount of duty free 
units shipped during the calendar year multiplied by the sum of the 
following to obtain the total verified amount of the annual duty-refund 
per company. This amount would then be adjusted by deducting the amount 
of the mid-year duty-refund already issued.
    (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 units times a factor 
of 80%; plus
    (iv) Incremental units shipped up to 750,000 units times a factor of 
75%.
    (3) The Departments may make adjustments for these data in the 
manner set forth inSec. 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; 69 FR 51533, Aug. 20, 2004; 
72 FR 16714, Apr. 5, 2007]



                            Subpart B_Jewelry

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



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, and Public Law 108-429, enacted on 3 December 2004.
    (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 any article imported into the customs territory of the 
United States duty paid except for any article containing a material 
which is the product of a country to which column 2 rates of duty apply. 
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 10,000,000 units by each 
producer) nor an aggregate annual amount for all certificates exceeding 
$5,000,000 adjusted for growth by the

[[Page 34]]

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.

[49 FR 17740, Apr. 25, 1984, as amended at 70 FR 67648, Nov. 8, 2005; 72 
FR 16715, Apr. 5, 2007; 73 FR 34857, June 19, 2008]



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, and Public Law 108-429, enacted on 3 December 2004.
    (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 
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 (e.g., ring, bracelet, 
necklace), pair (e.g, cufflinks), gram for links which are sold in grams 
and stocked in grams, and other subassemblies and components in the 
customary unit of measure they are stocked and sold within the industry.

[[Page 35]]

    (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 and associated creditable fringe benefits and 
creditable duty differentials eligible for the duty refund benefit 
include, but are not limited to, the following:
    (i) Wages up to an amount equal to 65 percent of the contribution 
and benefit base for Social Security, as defined in the Social Security 
Act for the year in which wages were earned, paid to permanent residents 
of the insular possessions employed in a 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.
    (A) Wages paid to persons engaged in the day-to-day assembly 
operations at the company office, wages paid to administrative employees 
working on the premises of the company office, wages paid to security 
operations employees and wages paid to servicing and maintenance 
employees if these services are integral to the assembly and 
manufacturing operations and the employees are working on the premises 
of the company office.
    (B) Wages paid to permanent residents who are employees of a new 
company involved in the jewelry assembly and jewelry manufacturing of 
HTSUS heading 7113 jewelry for up to 18 months after such jewelry 
company commences jewelry manufacturing or jewelry assembly operations 
in the insular possessions.
    (C) Wages paid when a maximum of two program producers work on a 
single piece of HTSUS heading 7113 jewelry which entered the United 
States 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 customs 
territory of the United States, and the producers maintained production 
and payroll records sufficient for the Departments' verification of the 
creditable wage portion (seeSec. 303.17(b)).
    (D) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations may be credited proportionally 
provided the firm maintains production, shipping and payroll records 
adequate for the Departments' verification of the creditable portion.
    (E) Wages paid to new permanent residents who have met the 
requirements of permanent residency in accordance with the Departments' 
regulations along with meeting all other creditable wage requirements of 
the regulations, which must be documented and verified to the 
satisfaction of the Secretaries.
    (ii) The combined creditable amount of individual health and life 
insurance per year, for each full-time permanent resident employee who 
works on the premises of the company office and whose wages qualify as 
creditable, may not exceed 130 percent of the ``weighted average'' 
yearly federal employee health insurance, which is calculated from the 
individual health plans weighted by the number of individual contracts 
in each plan. The yearly amount is calculated by the Office of Personnel 
Management and includes the ``weighted average'' of all individual 
health insurance costs for federal employees throughout the United 
States. The maximum life insurance allowed within this combined amount 
is $50,000 for each employee. Only during the time employees are earning 
creditable wages are they entitled to health and life insurance duty 
refund benefits under the program.
    (A) The combined creditable amount of family health and life 
insurance per year, for each full-time permanent resident employee who 
works on the premises of the company office and whose wages qualify as 
creditable, may not exceed 150 percent of the ``weighted average'' 
yearly federal employee health insurance, which is calculated from the 
family health plans weighted by the number of family contracts in

[[Page 36]]

each plan. The yearly amount is calculated by the Office of Personnel 
Management and includes the ``weighted average'' of all family health 
insurance costs for federal employees throughout the United States. The 
maximum life insurance allowed within this combined amount is $50,000 
dollars for each employee. Only during the time employees are earning 
creditable wages are they entitled to health and life insurance duty 
refund benefits under the program.
    (B) The creditable pension benefit, for each full-time permanent 
resident employee who works on the premises of the company office and 
whose wages qualify as creditable, is up to 3 percent of the employee's 
wages unless the employee's wages exceed the maximum annual creditable 
wage allowed under the program (see paragraph (a)(9)(i) of this 
section). An employee earning more than the maximum creditable wage 
allowed under the program will be eligible for only 3 percent of the 
maximum creditable wage. Only during the time employees are earning 
creditable wages are they entitled to pension duty refund benefits under 
the program.
    (10) Non-creditable wages and associated non-creditable fringe 
benefits ineligible for the duty refund benefit include, but are not 
limited to, the following:
    (i) Wages over 65 percent of the contribution and benefit base for 
Social Security, as defined in the Social Security Act for the year in 
which wages were earned, paid to permanent residents of the territories 
employed in a firm's 91/5 heading 7113, HTSUS, jewelry program.
    (A) Wages paid for the repair of jewelry in an amount over 50 
percent of the firm's total creditable wages.
    (B) Wages paid to employees who are involved in assembling HTSUS 
heading 7113 jewelry beyond 18 months after such jewelry company 
commences jewelry manufacturing or jewelry assembly operations in the 
insular possessions if the jewelry does not meet the Bureau of Customs 
and Border Protection's substantial transformation requirements and 
other criteria for duty-free enter into the United States.
    (C) Wages paid for the assembly and manufacturing of jewelry which 
is shipped to places outside the customs territory of the United States; 
wages paid for the assembly and manufacturing of jewelry that does not 
meet the regulatory assembly requirements; or wages paid for the 
assembly and manufacture of jewelry that contain HTSUS column 2 
components.
    (D) Wages paid to those persons not engaged in the day-to-day 
assembly operations on the premises of the company office, wages paid to 
any outside consultants, wages paid to outside the office personnel, 
including but not limited to, lawyers, gardeners, construction workers 
and accountants; wages paid to employees not working on the premises of 
the company office; wages paid to employees working with a non-program 
producer to create a single piece of HTSUS heading 7113 jewelry whether 
or not it entered the United States free of duty; and wages paid to 
employees who do not qualify as permanent residents in accordance with 
the Departments' regulations.
    (E) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations if the producer does not 
maintain production, shipping and payroll records adequate for the 
Departments' verification of the creditable portion.
    (ii) Any costs, for the year in which the wages were paid, of the 
combined creditable amount of individual health and life insurance for 
employees over 130 percent of the ``weighted average'' yearly individual 
health insurance costs for all federal employees. The cost of any life 
insurance over the $50,000 limit for each employee. Any health and life 
insurance costs during the time an employee is not earning creditable 
wages.
    (A) Any costs, for the year in which the wages were paid, of the 
combined creditable amount of family health and life insurance for 
employees over 150 percent of the ``weighted average'' yearly family 
health insurance costs for all federal employee. The cost of any life 
insurance over the $50,000 limit for each employee. Any health and life 
insurance costs during the time an employee is not earning creditable 
wages.

[[Page 37]]

    (B) Any pension benefits that were not based on associated 
creditable wages. The cost of any pension benefit per employee over 3 
percent of the employee's creditable wages unless the employee's wages 
exceed the maximum annual creditable annual maximum creditable wage 
allowed under the program (see paragraph (a)(9)(i) of this section). 
Employees earning over the maximum creditable wage allowed under the 
program would have a creditable annual pension benefit of up to 3 
percent of the maximum creditable wage and wages over 3 percent of the 
maximum creditable wage would not be creditable.
    (11) 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.
    (12) 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 within a continuous 
365 day period 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 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 Articles that Entered the Customs Territory of The United 
State Duty Paid.'' This document authorizes an insular jewelry producer 
to request the refund of duties on imports of articles that entered the 
customs territory of the United States duty paid, with certain 
exceptions, up to the specified value of the certificate. 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 Articles that Entered 
the Customs Territory of the United States Duty Paid.'' 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 duty paid 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; 70 FR 67648, Nov. 8, 
2005; 72 FR 16715, Apr. 5, 2007; 73 FR 62881, Oct. 22, 2008]



Sec.  303.17  Application for annual duty-refunds.

    (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;

[[Page 38]]

    (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, including time cards, production 
records, and all shipping records including the importer of record 
number and proof of residency, as requested;
    (7) All records pertaining to health insurance, life insurance and 
pension benefits for each employee;
    (8) Records on purchases of components and sales of jewelry, 
including proof of payment; and
    (9) 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; 70 
FR 67650, Nov. 8, 2005; 72 FR 16715, Apr. 5, 2007]



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 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, 
determined from the wages as reported on the employer's first two 
quarterly federal tax returns (941-SS), paid during the first six month 
of the calendar year, using the formula inSec. 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 be based on verified creditable wages,

[[Page 39]]

duty-free shipments into the customs territory of the United States, 
creditable health insurance, life insurance and pension benefits and the 
duty differential, if watch tariffs have been reduced during the 
calendar year. 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 Form 
ITA-361P (seeSec. 303.16(b)(3)) and the instruction on the form). 
After authentication by the Department of Commerce, Form ITA-361P may be 
used to obtain duty refunds on article that entered the customs 
territory of the United States duty paid. Duties on an article which is 
the product of a country with respect to 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.
    (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 ofSec. 303.21 of this part.

[49 FR 17740, Apr. 25, 1984, as amended at 66 FR 34813, July 2, 2001; 70 
FR 67650, Nov. 8, 2005; 72 FR 16715, Apr. 5, 2007]

[[Page 40]]



Sec.  303.20  Duty refund calculations and miscellaneous provisions.

    (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) Eighteen month exemption. Any article of jewelry provided for in 
HTSUS heading 7113, assembled in the insular possessions by a new 
entrant jewelry manufacturer shall be treated as a product of the 
insular possessions if such article is entered into the customs 
territory of the United States no later than 18 months after such 
producer commences jewelry manufacturing or jewelry assembly operations 
in the insular possessions.
    (b) Calculation of the value of the mid-year production incentive 
certificates.(1) The value of each producer's certificate shall equal 
the producer's average creditable wage per unit shipped during the first 
six months of the calendar year 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 3,533,334 units times a factor 
of 85%; plus
    (iii) Incremental units shipped up to 6,766,667 units times a factor 
of 80%; plus
    (iv) Incremental units shipped up to 10,000,000 units times a factor 
of 75%.
    (2) Calculation of the value of the annual production incentive 
certificates. The value of each producer's certificate shall equal the 
producer's average creditable benefit per unit based on creditable 
wages, health insurance, life insurance and pension benefits averaged 
from the amount of duty free units shipped during the calendar year 
multiplied by the sum of the following to obtain the total verified 
amount of the annual duty-refund per company. This amount would then be 
adjusted by deducting the amount of the mid-year duty-refund already 
issued.
    (i) The number of units shipped up to 300,000 units times a factor 
of 90%; plus
    (ii) Incremental units shipped up to 3,533,334 units times a factor 
of 85%; plus
    (iii) Incremental units shipped up to 6,766,667 units times a factor 
of 80%; plus
    (iv) Incremental units shipped up to 10,000,000 units times a factor 
of 75%.

[64 FR 67150, Dec. 1, 1999, as amended at 70 FR 67650, Nov. 8, 2005; 72 
FR 16715, Apr. 5, 2007; 73 FR 34857, June 19, 2008]



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 hardship or extraordinary circumstances resulting in the 
inability of the petitioner to comply with the rule.
    (b) Petitions shall bear the name and 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

[[Page 41]]

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.

[64 FR 67150, Dec. 1, 1999, as amended at 72 FR 16716]



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\ Under BIE rules, member 
nations may

[[Page 42]]

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:

    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

[[Page 43]]

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, 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 toSec. 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

[[Page 44]]

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



Sec.  310.5  Report of the Secretary on Federal recognition.

    If the Director's report recommends Federal recognition, the 
Secretary, within a reasonable time, shall submit a report to the 
President.

[[Page 45]]

    (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.
    (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.

[[Page 46]]



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 inSec. 
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, unless otherwise noted. 
Redesignated at 53 FR 52115, Dec. 27, 1988.



Sec.  315.1  Scope and purpose.

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

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



Sec.  315.2  Definitions.

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

[[Page 47]]

    (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.
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

[[Page 48]]

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--
    (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

[[Page 49]]

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 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

[[Page 50]]

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.
    (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

[[Page 51]]

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

[[Page 52]]

    (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 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 inSec. 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

[[Page 53]]

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 toSec. 
325.3(f) of the time period for making a determination). The Secretary 
may not issue a certificate until thirty days after the summary of the 
application is published in the Federal Register.
    (c) Concurrence of the Attorney General. (1) Not later than ten 
working days before the date on which a determination on the application 
is due, the Secretary shall deliver a proposed certificate to the 
Attorney General for discussion and comment. If the Attorney General 
does not agree that the proposed certificate may be issued, he shall, 
not later than five working days before the date on which a 
determination on the application is due, so advise the Secretary and 
state the reasons for the disagreement. The Secretary, with the 
concurrence of the Attorney General, may revise the proposed certificate 
to resolve the objections and problems raised by the Attorney General, 
or deny the application.
    (2) If the Attorney General receives the proposed certificate by the 
date specified in the preceding paragraph and does not respond within 
the time period specified in that paragraph, he shall be deemed to 
concur in the proposed certificate.

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



Sec.  325.9  Reconsidering an application that has been denied.

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



Sec.  325.10  Modifying or revoking a certificate.

    (a) Action subject to modification or revocation. The Secretary 
shall revoke a certificate, in whole or in part, or modify it, as the 
Secretary or the Attorney General considers necessary, if:
    (1) The export conduct of a person or entity protected by the 
certificate no longer complies with the requirements set forth inSec. 
325.4(b);
    (2) A person or entity protected by the certificate fails to comply 
with a

[[Page 54]]

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 inSec. 
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 inSec. 
325.4(b), the Secretary shall revoke or modify the certificate as 
appropriate. If the Secretary or the Attorney General determines that 
the certificate holder has failed to comply with the request for 
information under paragraph (b) of this section, or has failed to file a 
complete annual report, and that the failure to comply or file should 
result in revocation of modification, the Secretary shall revoke or 
modify the certificate as appropriate. The determination will be final 
and will be issued to the certificate holder in writing. The notice to 
the certificate holder shall include a statement of the circumstances 
underlying and the reasons in support of the determination. If the 
Secretary determines to revoke or modify the certificate, the decision 
shall specify the effective date of the revocation or modification; this 
date must be at least thirty days but not more than ninety days after 
the Secretary notifies the certificate holder of his determination. The 
Secretary shall publish notice in the Federal Register of a revocation 
or modification or a decision not to revoke or modify.
    (d) Investigative information. In proceedings under this section, 
the Attorney General shall make available to the Secretary any 
information that has

[[Page 55]]

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 underSec. 325.5,Sec. 325.7, 
Sec.  325.9, orSec. 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.
    (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).

[[Page 56]]

    (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.

    Authority: Title V of the Trade and Development Act of 2000 (Public 
Law No. 106-200) as amended by Trade Act of 2002 and the Miscellaneous 
Trade Act of 2004 (Public Law 108-429), Presidential Proclamation No. 
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 TRQs 
established by Section 501 of the Act, including the new HTS categories 
9902.51.15 and 9902.51.16 added by the amended Act.

[70 FR 25777, May 16, 2005]



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.

[[Page 57]]

    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 for the benefit of persons 
(including firms, corporations, or other legal entities) who cut and sew 
men's and boy's wool suits, suit-type jackets and trousers in the United 
States (HTS heading 9902.51.15), and worsted wool fabric with average 
fiber diameters of 18.5 microns or less for the benefit of persons 
(including firms, corporations, or other legal entities) who weave 
worsted wool fabric in the United States (HTS 9902.51.16).
    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.

[66 FR 6461, Jan. 22, 2001, as amended at 70 FR 25777, May 16, 2005]



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) For applying for TRQs 9902.51.11 or 9902.51.15 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. For applying for TRQ 9902.51.16 during the 
calendar year of the date of the application, an applicant must have 
woven in the United States worsted wool fabrics with average fiber 
diameters of 18.5 microns or less, suitable for use in making suits, 
suit-type jackets, and trousers. 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)(i) Production. Applicants for TRQs 9902.51.11 and 9902.51.15 
must provide the 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 or woven 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 least 85

[[Page 58]]

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.
    (ii) Applicants for TRQ 9902.51.16 must provide the name and address 
of each plant or location where Worsted Wool Fabric was woven by the 
applicant. The quantity and value of the Worsted Wool Fabric woven in 
the United States by applicant. This data must indicate actual 
production (not estimates) of Worsted Wool Fabric containing at least 85 
percent worsted wool fabric by weight with an average diameter of 18.5 
microns or less. For applications for the 2005 Tariff Rate Quota year, 
production data must be provided for full calendar year 2004. For 
allocations of Tariff Rate Quota years after 2005, 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) Worsted Wool Fabric. Data indicating the quantity and value of 
the Worsted Wool Fabric used in reported production.
    (4) 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 inSec. 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.

[66 FR 6461, Jan. 22, 2001, as amended at 70 FR 25777, May 16, 2005]



Sec.  335.4  Allocation.

    (a) For HTS 9902.51.11 and HTS 9902.51.15 each Tariff Rate Quota 
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. In regards to HTS 9902.51.16 the Tariff Rate Quota 
will be allocated based on an applicant's Worsted Wool Fabric 
production, on a weighted average basis.
    (b) For the purpose of calculating allocations for HTS 9902.51.11 
and HTS 9902.51.15 only, 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.

[66 FR 6461, Jan. 22, 2001, as amended at 70 FR 25777, May 16, 2005]



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 inSec. 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.

[[Page 59]]

    (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 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

[[Page 60]]

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 to 25 percent of its unused allocation from the prior year. A 
Licensee whose unused allocation in two or more 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.

[66 FR 6461, Jan. 22, 2001, as amended at 70 FR 25777, May 16, 2005]

[[Page 61]]



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




  --------------------------------------------------------------------
Part                                                                Page
400             Regulations of the Foreign-Trade Zones Board          63

[[Page 63]]



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



               Subpart A_Scope, Definitions and Authority

400.1 Scope.
400.2 Definitions.
400.3 Authority of the Board.
400.4 Authority and responsibilities of the Executive Secretary.
400.5 Authority to restrict or prohibit certain zone operations.
400.6 Board headquarters.
400.7 CBP officials as Board representatives.

  Subpart B_Ability To Establish Zone; Limitations and Restrictions on 
                            Authority Granted

400.11 Number and location of zones and subzones.
400.12 Eligible applicants.
400.13 General conditions, prohibitions and restrictions applicable to 
          authorized zones.
400.14 Production--requirement for prior authorization; restrictions.
400.15 Production equipment.
400.16 Exemption from state and local ad valorem taxation of tangible 
          personal property.

         Subpart C_Applications To Establish and Modify Authority

400.21 Application to establish a zone.
400.22 Notification for production authority.
400.23 Application for production authority.
400.24 Application for expansion or other modification to zone.
400.25 Application for subzone designation.
400.26 Criteria for evaluation of proposals, including expansions, 
          subzones or other modifications of zones.
400.27 Criteria applicable to evaluation of applications for production 
          authority.
400.28 Burden of proof.
400.29 Application fees.

       Subpart D_Procedures for Application Evaluation and Reviews

400.31 General application provisions and pre-docketing review.
400.32 Procedures for docketing applications and commencement of case 
          review.
400.33 Examiner's review--application to establish or modify a zone.
400.34 Examiner's review--application for production authority.
400.35 Examiner's review--application for subzone designation.
400.36 Completion of case review.
400.37 Procedure for notification of proposed production activity.
400.38 Procedure for application for minor modification of zone.

       Subpart E_Operation of Zones and Administrative Requirements

400.41 General operation of zones; requirements for commencement of 
          operations.
400.42 Operation as public utility.
400.43 Uniform treatment.
400.44 Zone schedule.
400.45 Complaints related to public utility and uniform treatment.
400.46 Grantee liability.
400.47 Retail trade.
400.48 Zone-restricted merchandise.
400.49 Monitoring and reviews of zone operations and activity.

      Subpart F_Records, Reports, Notice, Hearings and Information

400.51 Accounts, records and reports.
400.52 Notices and hearings.
400.53 Official records; public access.
400.54 Information.

              Subpart G_Penalties and Appeals to the Board

400.61 Revocation of authority.
400.62 Fines, penalties and instructions to suspend activated status.
400.63 Appeals to the Board of decisions of the Assistant Secretary for 
          Import Administration and the Executive Secretary.

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

    Source: 77 FR 12139, Feb. 28, 2012, unless otherwise noted.



               Subpart A_Scope, Definitions and Authority



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 (FTZs or 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 for the Board's regulation of zone activity. The purpose of 
zones as stated in the Act is to ``expedite and encourage foreign 
commerce, and other purposes.''

[[Page 64]]

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



Sec.  400.2  Definitions.

    (a) Act means the Foreign-Trade Zones Act of 1934, as amended (19 
U.S.C. 81a-81u).
    (b) Activation limit is the size of the physical area of a 
particular zone or subzone authorized by the Board to be simultaneously 
in activated status with CBP pursuant to 19 CFR 146.6. The activation 
limit for a particular zone/subzone is a figure explicitly specified by 
the Board in authorizing the zone (commonly 2,000 acres) or subzone or, 
in the absence of a specified figure, the total of the sizes of the 
approved sites of the zone/subzone.
    (c) Alternative site framework (ASF) is an optional approach to 
designation and management of zone sites allowing greater flexibility 
and responsiveness to serve single-operator/user locations. The ASF was 
adopted by the Board as a matter of practice in December 2008 (74 FR 
1170, January 12, 2009; correction 74 FR 3987, January 22, 2009) and 
modified by the Board in November 2010 (75 FR 71069, November 22, 2010).
    (d) 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.
    (e) Board Order is a type of document that indicates a final 
decision of the Board. Board Orders are generally published in the 
Federal Register after issuance.
    (f) CBP means U.S. Customs and Border Protection.
    (g) Executive Secretary is the Executive Secretary of the Foreign-
Trade Zones Board.
    (h) Foreign-trade zone (FTZ or zone) includes one or more 
restricted-access sites, including subzones, in or adjacent (as defined 
bySec. 400.11(b)(2)) to a CBP port of entry, operated as a public 
utility (within the meaning ofSec. 400.42) under the sponsorship of a 
zone grantee authorized by the Board, with zone operations under the 
supervision of CBP.
    (i) Grant of authority is a document issued by the Board that 
authorizes a zone grantee to establish, operate and maintain a zone, 
subject to limitations and conditions specified in this part and in 19 
CFR part 146. The authority

[[Page 65]]

to establish a zone includes the responsibility to manage it.
    (j) Magnet site means a site intended to serve or attract multiple 
operators or users under the ASF.
    (k) Modification: A major modification is a proposed change to a 
zone that requires action by the FTZ Board; a minor modification is a 
proposed change to a zone that may be authorized by the Executive 
Secretary.
    (l) Person includes any individual, corporation, or entity.
    (m) Port of entry means a port of entry in the United States, as 
defined by part 101 of the customs regulations (19 CFR part 101), or a 
user fee airport authorized under 19 U.S.C. 58b and listed in part 122 
of the customs regulations (19 CFR part 122).
    (n) Private corporation means any corporation, other than a public 
corporation, which is organized for the purpose of establishing, 
operating and maintaining a zone and which is chartered for this purpose 
under a law of the state in which the zone is located.
    (o) Production, 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, or 
activity involving a change in the condition of the article which 
results in a change in the customs classification of the article or in 
its eligibility for entry for consumption.
    (p) 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.
    (q) Service area means the jurisdiction(s) within which a grantee 
proposes to be able to designate sites via minor boundary modifications 
under the ASF.
    (r) State includes any state of the United States, the District of 
Columbia, and Puerto Rico.
    (s) Subzone means a site (or group of sites) established for a 
specific use.
    (t) Usage-driven site means a site tied to a single operator or user 
under the ASF.
    (u) 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.
    (v) Zone grantee is the corporate recipient of a grant of authority 
for a zone. Where used in this part, the term ``grantee'' means ``zone 
grantee'' unless otherwise indicated.
    (w) Zone operator is a person that operates within a zone or subzone 
under the terms of an agreement with the zone grantee (or third party on 
behalf of the grantee), with the concurrence of CBP.
    (x) Zone participant is a current or prospective zone operator, zone 
user, or property owner.
    (y) Zone plan includes all the zone sites that a single grantee is 
authorized to establish.
    (z) Zone site (site) means a physical location of a zone or subzone. 
A site is composed of one or more generally contiguous parcels of land 
organized and functioning as an integrated unit, such as all or part of 
an industrial park or airport facility.
    (aa) Zone user is a party using a zone under agreement with a zone 
operator.



Sec.  400.3  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 approve subzones and 
modifications to the original zone;
    (3) Authorize production activity in zones and subzones as described 
in 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, 
operators and users (and persons undertaking zone-related functions on 
behalf of grantees, where applicable);
    (7) Require zone grantees and operators to report on zone 
operations;
    (8) Report annually to the Congress on zone operations;

[[Page 66]]

    (9) Restrict or prohibit zone operations;
    (10) Terminate reviews of applications under certain circumstances 
pursuant toSec. 400.36(g);
    (11) Authorize under certain circumstances the entry of ``zone-
restricted merchandise'' (19 CFR 146.44) into the customs territory 
pursuant toSec. 400.48;
    (12) Impose fines for violations of the Act and this part;
    (13) Instruct CBP to suspend activated status pursuant toSec. 
400.62(h);
    (14) Revoke grants of authority for cause;
    (15) Determine, as appropriate, whether zone activity is or would be 
in the public interest or detrimental to the public interest, health or 
safety; and
    (16) Issue and discontinue waivers pursuant toSec. 400.43(f).
    (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 shall designate an 
alternate with authority to act in an official capacity for that member.
    (d) Authority of the Assistant Secretary for Import Administration 
(Alternate Chairman). The Commerce Department's Assistant Secretary for 
Import Administration has the authority to:
    (1) Terminate reviews of applications under certain circumstances 
pursuant toSec. 400.36(g);
    (2) Mitigate and assess fines pursuant to Sec.Sec. 400.62(e) and 
(f) and instruct CBP to suspend activated status pursuant toSec. 
400.62(h); and
    (3) Restrict the use of zone procedures under certain circumstances 
pursuant toSec. 400.49(c).
    (e) Determinations of the Board. Determinations of the Board shall 
be by the unanimous vote of the members (or alternate members) of the 
Board, which shall be recorded.



Sec.  400.4  Authority and responsibilities 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 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) Direct processing of applications and reviews, including 
designation of examiners and scheduling of hearings, under various 
sections of this part;
    (i) Make determinations on questions pertaining to grantees' 
applications for subzones as provided inSec. 400.12(d);
    (j) Make recommendations in cases involving questions as to whether 
zone activity should be prohibited or restricted for public interest 
reasons, including proceedings and reviews underSec. 400.5;
    (k) Determine questions of scope underSec. 400.14(d);
    (l) 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. 400.21-400.25;
    (m) Issue instructions, guidelines, forms and related documents 
specifying time, place, manner and formats for applications and 
notifications in various sections of this part, including Sec.Sec. 
400.21(b) and 400.43(f);
    (n) Determine whether proposed modifications are major modifications 
or minor modifications underSec. 400.24(a)(2);

[[Page 67]]

    (o) Determine whether applications meet pre-docketing requirements 
underSec. 400.31(b);
    (p) Terminate reviews of applications under certain circumstances 
pursuant toSec. 400.36(g);
    (q) Authorize minor modifications to zones underSec. 400.38, 
commencement of production activity underSec. 400.37(d) and subzone 
designation underSec. 400.36(f);
    (r) Review notifications for production authority underSec. 
400.37;
    (s) Direct monitoring and reviews of zone operations and activity 
underSec. 400.49;
    (t) Review rate schedules and determine their sufficiency under 
Sec.  400.44(c);
    (u) Assess potential issues and make recommendations pertaining to 
uniform treatment underSec. 400.43 and review and decide complaint 
cases underSec. 400.45;
    (v) Make certain determinations and authorizations pertaining to 
retail trade underSec. 400.47;
    (w) Authorize under certain circumstances the entry of ``zone-
restricted merchandise'' into the customs territory underSec. 400.48;
    (x) Determine the format and deadlines for the annual reports of 
zone grantees to the Board and direct preparation of an annual report 
from the Board to Congress underSec. 400.51(c);
    (y) Make recommendations and certain determinations regarding 
violations and fines, and undertake certain procedures related to the 
suspension of activated status, as provided inSec. 400.62; and
    (z) Designate an acting Executive Secretary.



Sec.  400.5  Authority to restrict or prohibit certain zone operations.

    The Board may conduct a proceeding, or the Executive Secretary a 
review, to consider a restriction or prohibition on zone activity. Such 
proceeding or review may be either self-initiated or in response to a 
complaint made to the Board by a person directly affected by the 
activity in question and showing good cause. After a proceeding or 
review, the Board may restrict or prohibit any admission of merchandise 
or process of treatment in an activated FTZ site when it determines that 
such activity is detrimental to the public interest, health or safety.



Sec.  400.6  Board headquarters.

    The headquarters of the Board are located within the U.S. Department 
of Commerce (Herbert C. Hoover Building), 1401 Constitution Avenue NW., 
Washington, DC 20230, within the office of the Foreign-Trade Zones 
staff.



Sec.  400.7  CBP officials as Board representatives.

    CBP officials with oversight responsibilities for a port of entry 
represent the Board with regard to the zones adjacent to the port of 
entry in question and are responsible for enforcement, including 
physical security and access requirements, as provided in 19 CFR part 
146.



  Subpart B_Ability To Establish Zone; Limitations and Restrictions on 
                            Authority Granted



Sec.  400.11  Number and location of zones and subzones.

    (a) Number of zones--port of entry entitlement.
    (1) Provided that the other requirements of this part are met:
    (i) Each port of entry is entitled to at least one zone;
    (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; 
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.
    (2) Applications pertaining to zones in addition to those approved 
under the entitlement provision of paragraph (a)(1) of this section may 
be approved by the Board if it determines that the existing zone(s) will 
not adequately serve the convenience of commerce.
    (b) Location of zones and subzones--port of entry adjacency 
requirements.
    (1) 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 site is located within 60 statute miles 
or 90 minutes' driving time (as determined or

[[Page 68]]

concurred upon by CBP) from the outer limits of a port of entry boundary 
as defined in 19 CFR 101.3.
    (ii) A subzone meets the following requirements relating to CBP 
supervision:
    (A) Proper CBP oversight can be accomplished with physical and 
electronic means;
    (B) All electronically produced records are maintained in a format 
compatible with the requirements of CBP for the duration of the record 
period; and
    (C) The operator agrees to present merchandise for examination at a 
CBP site selected by CBP when requested, and further agrees to present 
all necessary documents directly to the relevant CBP oversight office.



Sec.  400.12  Eligible applicants.

    (a) In general. Subject to the other provisions of this section, 
public or private corporations may apply for grants of authority to 
establish zones. The Board shall give preference to public corporations.
    (b) Public corporations and private non-profit corporations. The 
eligibility of public corporations and private non-profit corporations 
to apply for a grant of authority shall be supported by 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. Any application must not be 
inconsistent with the charter or organizational papers of the applying 
entity.
    (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 (except pursuant toSec. 400.24(c))--
(1) Eligibility. The following entities are eligible to apply to 
establish a subzone:
    (i) The grantee of the closest zone in the same state;
    (ii) The grantee of another zone in the same state, which is a 
public corporation (or a non-public corporation if no such other public 
corporation exists), 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) Notification of closest grantee. If an application is submitted 
under paragraph (d)(1)(ii) or (iii) of this section, the Executive 
Secretary shall:
    (i) Notify, in writing, the grantee specified in paragraph (d)(1)(i) 
of this section, which 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 docketing the application to 
determine whether the proposed sponsorship is in the public interest, 
taking into account:
    (A) The objecting 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 objecting zone in writing of the 
Executive Secretary's determination;
    (iv) If the Executive Secretary determines that the proposed 
sponsorship is in the public interest, docket the application (seeSec. 
400.63 regarding appeals of decisions of the Executive Secretary).



Sec.  400.13  General conditions, prohibitions and restrictions 
applicable to authorized zones.

    (a) In general. Grants of authority issued by the Board for the 
establishment of zones and any authority subsequently approved for such 
zones, including those already issued, are subject to the Act and this 
part and the following general conditions or limitations:
    (1) 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.
    (2) A grant of authority approved under this part includes authority 
for the grantee to permit the erection of

[[Page 69]]

buildings necessary to carry out the approved zone (subject to 
concurrence of CBP for an activated area of a zone).
    (3) Approvals from the grantee (or other party acting on behalf of 
the grantee, where applicable) and CBP, pursuant to 19 CFR part 146, are 
required prior to the activation of any portion of an approved zone.
    (4) Authority for a zone or a subzone shall lapse unless the zone 
(in case of subzones, the subzone facility) is activated, pursuant to 19 
CFR part 146, and in operation not later than five years from the 
authorization of the zone or subzone, subject to the provisions of Board 
Order 849 (61 FR 53305, October 11, 1996).
    (5) Zone grantees, operators, and users (and persons undertaking 
zone-related functions on behalf of grantees, where applicable) shall 
permit federal government officials acting in an official capacity to 
have access to the zone and records during normal business hours and 
under other reasonable circumstances.
    (6) Activity involving production is subject to the specific 
provisions inSec. 400.14.
    (7) A grant of authority may not be sold, conveyed, transferred, set 
over, or assigned (FTZ Act, section 17; 19 U.S.C. 81q).
    (8) Private ownership of zone land and facilities is permitted, 
provided the zone grantee retains the control necessary to implement the 
approved zone. Such permission shall not constitute a vested right to 
zone designation, nor interfere with the Board's regulation of the 
grantee or the permittee, nor interfere with or complicate the 
revocation of the grant by the Board. 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 zone-designated land/facility for more than its fair market 
value without zone designation could, depending on the circumstances, be 
subject to the prohibitions set forth in section 17 of the Act (19 
U.S.C. 81q).
    (b) Board authority to restrict or prohibit activity. Pursuant to 
section 15(c) of the Act (19 U.S.C. 81o(c)), the Board has authority to 
``order the exclusion from [a] zone of any goods or process of treatment 
that in its judgment is detrimental to the public interest, health, or 
safety.'' In approvals of proposed production authority pursuant to 
Sec.  400.14(a), the Board may adopt restrictions to protect the public 
interest, health, or safety. When evaluating production activity, either 
as proposed in an application or as part of a review of an operation, 
the Board shall determine whether the activity is in the public interest 
by reviewing it in relation to the evaluation criteria contained in 
Sec.  400.27.
    (c) Additional conditions, prohibitions and restrictions. Other 
conditions/requirements, prohibitions and restrictions under Federal, 
State or local law may apply to authorized zones and subzones.



Sec.  400.14  Production--requirement for prior authorization;
restrictions.

    (a) In general. Production activity in zones shall not be conducted 
without prior authorization from the Board. To obtain authorization, the 
notification process provided for in Sec.Sec. 400.22 and 400.37 shall 
be used. If Board review of a notification underSec. 400.37 results in 
a determination that further review is warranted for all or part of the 
notified activity, the application process pursuant to Sec.Sec. 
400.23, 400.31-400.32, 400.34 and 400.36 shall apply to the activity.
    (b) Scope of authority. Production activity that may be conducted in 
a particular zone operation is limited to the specific foreign-status 
materials and components and specific finished products described in 
notifications and applications that have been authorized pursuant to 
paragraph (a) of this section, including any applicable prohibitions or 
restrictions. A determination may be requested pursuant to paragraph (d) 
of this section as to whether particular activity falls within the scope 
of authorized activity. Unauthorized activity could be subject to 
penalties pursuant to the customs regulations on foreign-trade zones (19 
CFR part 146).
    (c) Information about authorized production activity. The Board 
shall make available via its Web site information

[[Page 70]]

regarding the materials, components, and finished products associated 
with individual production operations authorized under these and 
previous regulations, as derived from applications and notifications 
submitted to the Board.
    (d) Scope determinations. Determinations may be made by the 
Executive Secretary as to whether changes in activity are within the 
scope of the production activity already authorized under this part. 
When warranted, the procedures of Sec.Sec. 400.32 and 400.34 shall be 
followed.
    (e) Restrictions on items subject to antidumping and countervailing 
duty actions.
    (1) Board policy. Zone procedures shall not be used to circumvent 
antidumping duty (AD) and countervailing duty (CVD) actions under 19 CFR 
part 351.
    (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 part 351.



Sec.  400.15  Production equipment.

    (a) In general. Pursuant to section 81c(e) of the FTZ Act, 
merchandise that is admitted into a foreign-trade zone for use within 
such zone as production equipment or as parts for such equipment, shall 
not be subject to duty until such merchandise is completely assembled, 
installed, tested, and used in the production for which it was admitted. 
Payment of duty may be deferred until such equipment goes into use as 
production equipment as part of zone production activity, at which time 
the equipment shall be entered for consumption as completed equipment.
    (b) Definition of production equipment. Eligibility for this section 
is limited to equipment and parts of equipment destined for use in zone 
production activity as defined inSec. 400.2(o) of this part. 
Ineligible for treatment as production equipment under this section are 
general materials (that are used in the installation of production 
equipment or in the assembly of equipment) and materials used in the 
construction or modification of the plant that houses the production 
equipment.
    (c) Equipment not destined for zone activity. Production equipment 
or parts that are not destined for use in zone production activity shall 
be treated as normal merchandise eligible for standard zone-related 
benefits (i.e., benefits not subject to the requirements ofSec. 
400.14(a)), provided the equipment is entered for consumption or 
exported prior to its use.



Sec.  400.16  Exemption from state and local ad valorem taxation of
tangible personal property.

    Tangible personal property imported from outside the United States 
and held in a zone for the purpose of storage, sale, exhibition, 
repackaging, assembly, distribution, sorting, grading, cleaning, mixing, 
display, manufacturing, or processing, and tangible personal property 
produced in the United States and held in a zone for exportation, either 
in its original form or as altered by any of the above processes, shall 
be exempt from state and local ad valorem taxation.



        Subpart C_Applications To Establish and Modify Authority



Sec.  400.21  Application to establish a zone.

    (a) In general. An application for a grant of authority to establish 
a zone (including pursuant to the ASF procedures adopted by the Board; 
see 74 FR 1170, Jan. 12, 2009, 74 FR 3987, Jan. 22, 2009, and 75 FR 
71069, Nov. 22, 2010) shall consist of an application letter and 
detailed contents to meet the requirements of this part.
    (b) Application format. Applications pursuant to this part shall 
comply with any instructions, guidelines, and forms or related 
documents, published in the Federal Register and made available on the 
Board's Web site, as established by the Executive Secretary specific to 
the type of application in question. An

[[Page 71]]

application submitted that uses a superseded format shall be processed 
unless the format has not been current for a period in excess of one 
year.
    (c) Application letter. The application letter shall be dated within 
six months prior to the submission of the application and signed by an 
officer of the corporation authorized in the resolution for the 
application (seeSec. 400.21(d)(1)(iii)). The application letter shall 
also describe:
    (1) The relationship of the proposal to the state enabling 
legislation and the grantee's charter;
    (2) The specific authority requested from the Board;
    (3) The proposed zone site(s) and facility(ies) and any larger 
project of which the zone is a part;
    (4) The project background;
    (5) The relationship of the project to the community's and state's 
international trade-related goals and objectives;
    (6) Any production authority requested; and
    (7) Any additional pertinent information needed for a complete 
summary description of the proposal.
    (d) Detailed contents.
    (1) Legal authority for the application shall be documented with:
    (i) A current copy of the state enabling legislation described in 
Sec.Sec. 400.12(b) and (c);
    (ii) A copy of the relevant sections of the applicant's charter or 
organization papers; and
    (iii) A certified copy of a resolution of the applicant's governing 
body specific to the application authorizing the official signing the 
application letter. The resolution must be dated no more than six months 
prior to the submission of the application.
    (2) Site descriptions (including a table with site designations when 
more than one site is involved) shall be documented with:
    (i) A detailed description of the zone site, including size, 
location, and address (and legal description or its equivalent in 
instances where the Executive Secretary determines it is needed to 
supplement the maps in the application), as well as dimensions and types 
of existing and proposed structures, master planning, and timelines for 
construction of roads, utilities and planned buildings;
    (ii) Where applicable, a summary description of the larger project 
of which the site is a part, including type, size, location and address;
    (iii) A statement as to whether the site is within or adjacent to a 
CBP port of entry (including distance from the limits of the port of 
entry and, if the distance exceeds 60 miles, driving time from the 
limits of the port of entry);
    (iv) A description of existing or proposed site qualifications, 
including appropriate land-use zoning (with environmentally sensitive 
areas avoided) and physical security;
    (v) A description of current and planned activities associated with 
the site;
    (vi) A summary description of transportation systems, facilities, 
and services, including connections from local and regional 
transportation hubs to the zone;
    (vii) A statement regarding the environmental aspects of the 
proposal;
    (viii) The estimated time schedules for construction and activation; 
and
    (ix) A statement as to the possibilities and plans for future 
expansion of the site.
    (3) Operation and financing shall be documented with:
    (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 plans for operations at the site;
    (iii) A commitment to satisfy the requirements for CBP automated 
systems; and
    (iv) A summary of the plans for financing the project.
    (4) Economic justification shall be documented with:
    (i) A statement of the community's overall economic and trade-
related goals and strategies in relation to those of the region and 
state, including a reference to the plan or plans on which the goals are 
based and how they relate to the zone project;
    (ii) An economic profile of the community including discussion of:
    (A) Dominant sectors in terms of employment or income;
    (B) Area strengths and weaknesses;

[[Page 72]]

    (C) Unemployment rates; and
    (D) Area foreign trade statistics;
    (iii) A statement as to the role and objective of the zone project 
and a discussion of the anticipated economic impact, direct and 
indirect, of the zone project, including references to public costs and 
benefits, employment, and U.S. international trade;
    (iv) A separate justification for each proposed site, including a 
specific explanation addressing the degree to which the site may 
duplicate types of facilities at other proposed or existing sites in the 
zone;
    (v) A statement as to the need for zone services in the community, 
with specific expressions of interest from proposed zone users and 
letters of intent from those firms that are considered prime prospects 
for each specific proposed site; and
    (vi) For any production activity to be conducted at a proposed site, 
the separate requirements ofSec. 400.14(a) must also be met.
    (5) Maps and site plans shall include the following documents:
    (i) State and county maps showing the general location of the 
proposed site(s) in terms of the area's transportation network;
    (ii) For any proposed site, a legible, detailed site plan of the 
zone area showing zone boundaries in red, with street name(s), and 
showing existing and proposed structures; and
    (iii) For proposals involving a change in existing zones, one or 
more maps showing the relationship between existing zone sites and the 
proposed changes.
    (e) ASF applications. In addition to the general application 
requirements of this section, applications under the ASF shall include 
the following, where applicable:
    (1) Service area.
    (2) Appropriate information regarding magnet sites.
    (3) Appropriate information regarding usage-driven sites.
    (f) Additional information. The Board or the Executive Secretary may 
require additional information needed to evaluate proposals adequately.
    (g) Amendment of application. The Board or the Executive Secretary 
may allow amendment of an application. Amendments which substantively 
expand the scope of an application shall be subject to comment period 
requirements such as those ofSec. 400.32(c)(2) with a minimum comment 
period of 30 days.
    (h) Drafts. Applicants are encouraged to submit a draft application 
to the Executive Secretary for review. A draft application must be 
complete with the possible exception of the application letter and/or 
resolution from the grantee.
    (i) Format and number of copies. Unless the Executive Secretary 
alters the requirements of this paragraph, the applicant shall submit an 
original (including original documents to meet the requirements of 
paragraphs (c) and (d)(1)(iii) of this section) and one copy of the 
application, both on 8\1/2\x11 (216x279 mm) paper, 
and an electronic copy.
    (j) Where to submit an application: Executive Secretary, Foreign-
Trade Zones Board, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230. Options for submission of electronic copies 
are described on the FTZ Board's Web site.

    Effective Date Note: At 77 FR 12139, Feb. 28, 2012,Sec. 400.21 was 
added. This section contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec.  400.22  Notification for production authority.

    Notifications requesting production authority pursuant toSec. 
400.14(a) shall comply with any instructions, guidelines, and forms or 
related documents, published in the Federal Register and made available 
on the Board's Web site, as established by the Executive Secretary. 
Notifications shall contain the following information:
    (a) Identity of the user and its location;
    (b) Materials, components and finished products associated with the 
proposed activity, including the tariff schedule categories (6-digit 
HTSUS) and tariff rates; and
    (c) Information as to whether any material or component is subject 
to a trade-related measure or proceeding

[[Page 73]]

(e.g., AD/CVD order or proceeding, suspension of liquidation under AD/
CVD procedures).

    Effective Date Note: At 77 FR 12139, Feb. 28, 2012,Sec. 400.22 was 
added. This section contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec.  400.23  Application for production authority.

    In addition to any applicable requirements set forth inSec. 
400.21, an application requesting production authority pursuant toSec. 
400.37(c) shall include:
    (a) A summary as to the reasons for the application and an 
explanation of its anticipated economic effects;
    (b) Identity of the user and its corporate affiliation;
    (c) A description of the proposed activity, including:
    (1) Finished products;
    (2) Imported (foreign-status) materials and components;
    (3) For each finished product and imported material or component, 
the tariff schedule category (6-digit HTSUS), tariff rate, and whether 
the material or component is subject to a trade-related measure or 
proceeding (e.g., AD/CVD order or proceeding, suspension of liquidation 
under AD/CVD procedures);
    (4) Domestic inputs, foreign inputs, and plant value added as 
percentages of finished product value;
    (5) Projected shipments to domestic market and export market 
(percentages);
    (6) Estimated total or range of annual value of benefits to proposed 
user (broken down by category), including as a percent of finished 
product value;
    (7) Annual production capacity (current and planned) for the 
proposed FTZ activity, in units;
    (8) Information to assist the Board in making a determination under 
Sec.Sec. 400.27(a)(3) and 400.27(b);
    (9) Information as to whether alternative procedures have been 
considered as a means of obtaining the benefits sought;
    (10) Information on the industry involved and extent of 
international competition; and
    (11) Economic impact of the operation on the area; and
    (d) Any additional information requested by the Board or the 
Executive Secretary in order to conduct the review.

    Effective Date Note: At 77 FR 12139, Feb. 28, 2012,Sec. 400.23 was 
added. This section contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec.  400.24  Application for expansion or other modification to zone.

    (a) In general. (1) A grantee may apply to the Board for authority 
to expand or otherwise modify its zone (including pursuant to the ASF 
procedures adopted by the Board; see 74 FR 1170, Jan. 12, 2009, 74 FR 
3987, Jan. 22, 2009, and 75 FR 71069, Nov. 22, 2010).
    (2) The Executive Secretary, in consultation with CBP as 
appropriate, shall 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 shall 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 
they relate to the scope of operations envisioned in the original plan.
    (b) Major modification to zone. An application for a major 
modification of an approved zone shall be submitted in accordance with 
the requirements ofSec. 400.21, except that the content submitted 
pursuant toSec. 400.21(d)(4) (economic justification) shall relate 
specifically to the proposed change.
    (c) Minor modification to zone. Other applications or requests under 
this subpart 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 (seeSec. 400.38). Such applications or requests include those 
for minor revisions of general-purpose zone or subzone boundaries based 
on

[[Page 74]]

immediate need, as well as for designation as a subzone of all or part 
of an existing zone site(s) (or site(s) that qualifies for usage-driven 
status), where warranted by the circumstances and so long as the subzone 
activity remains subject to the activation limit (seeSec. 400.2(b)) 
for the zone in question.
    (d) Applications for other revisions to authority. Applications or 
requests for other revisions to authority, such as for Board action to 
establish or modify an activation limit for a zone, modification of a 
restriction or reissuance of a grant of authority, shall be submitted in 
letter form with information and documentation necessary for analysis, 
as determined by the Executive Secretary. If the change involves the 
removal or significant modification of a restriction included by the 
Board in its approval of authority or the reissuance of a grant of 
authority, the review procedures of Sec.Sec. 400.31-400.34 and 400.36 
shall be followed, where relevant. If not, the procedure set forth in 
Sec.  400.38 shall generally apply (although the Executive Secretary may 
elect to follow the procedures of Sec.Sec. 400.31-400.34 and 400.36 
when warranted).



Sec.  400.25  Application for subzone designation.

    In addition to the requirements of Sec.Sec. 400.21(d)(1)(i) and 
(ii) pertaining to legal authority,Sec. 400.21(d)(2)(vii) pertaining 
to environmental aspects of the proposal, and Sec.Sec. 400.21(d)(3)(i) 
and (iii) pertaining to operation, a grantee's application for subzone 
designation shall contain the following information:
    (a) The name of the operator/user for which subzone designation is 
sought;
    (b) The nature of the activity at the proposed subzone;
    (c) The address(es) and physical size (acreage or square feet) of 
the proposed subzone location(s); and
    (d) One or more maps conforming to the requirements of sectionSec. 
400.21(d)(5)(ii). For any production activity to be conducted at a 
proposed subzone, the separate requirements ofSec. 400.14(a) must be 
met.

    Effective Date Note: At 77 FR 12139, Feb. 28, 2012,Sec. 400.25 was 
added. This section contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.



Sec.  400.26  Criteria for evaluation of applications for expansions,
subzones or other modifications of zones.

    The Board shall consider the following factors in determining 
whether to approve an application pertaining to a zone:
    (a) 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;
    (b) The suitability of each proposed site and its facilities based 
on the plans presented for the site, including existing and planned 
buildings, zone-related activities, and the timeframe for development of 
the site;
    (c) The specific need and justification for each proposed site, 
taking into account existing sites and/or other proposed sites;
    (d) 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 the outcome of Board decisions;
    (e) The views of persons likely to be materially affected by 
proposed zone activity; and
    (f) If the application involves production activity, the criteria in 
Sec.  400.27.



Sec.  400.27  Criteria applicable to evaluation of applications for
production authority.

    The Board shall apply the criteria set forth in this section in 
determining whether to approve an application for authority to conduct 
production activity pursuant toSec. 400.23. The Board's evaluation 
shall take into account such factors as market conditions, price 
sensitivity, degree and nature of foreign competition, intra-industry 
and intra-firm trade, effect on exports and imports, ability to conduct 
the proposed activity outside the United States with the same U.S. 
tariff impact, analyses conducted in connection with prior Board 
actions, and net effect

[[Page 75]]

on U.S. employment and the U.S. economy:
    (a) 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 inSec. 400.27(b), the Board shall deny or restrict 
authority for proposed or ongoing activity if it determines that:
    (1) The activity is inconsistent with U.S. trade and tariff law, or 
policy which has been formally adopted by the Executive branch;
    (2) Board approval of the activity under review would seriously 
prejudice U.S. tariff and trade negotiations or other initiatives; or
    (3) 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.
    (b) Economic factors. After its review of threshold factors, if 
there is a basis for further consideration of the application, the Board 
shall consider the following factors in determining the net economic 
effect of the proposed activity:
    (1) Overall employment impact;
    (2) Exports and re-exports;
    (3) Retention or creation of value-added activity;
    (4) Extent of value-added activity;
    (5) Overall effect on import levels of relevant products;
    (6) Extent and nature of foreign competition in relevant products;
    (7) Impact on related domestic industry, taking into account market 
conditions; and
    (8) Other relevant information relating to the public interest and 
net economic impact considerations, including technology transfers and 
investment effects.
    (c) The significant public benefit(s) that would result from the 
production activity, taking into account the factors in paragraphs (a) 
and (b) of this section.
    (d) Contributory effect. In assessing the significance of the 
economic effect of the proposed zone activity as part of the 
consideration of economic factors, and considering whether it would 
result in a significant public benefit(s), 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.



Sec.  400.28  Burden of proof.

    (a) In general. An applicant must demonstrate to the Board that its 
application meets the criteria set forth in these regulations. 
Applications for production-related authority shall contain evidence 
regarding the positive economic effect(s) and significant public 
benefit(s) that would result from the proposed activity and may submit 
evidence and comments concerning policy considerations.
    (b) Comments on applications. Comments submitted regarding 
applications should provide information that is probative and 
substantial in addressing the matter at issue relative to the nature of 
the proceeding, including any evidence of the projected direct impact of 
the proposed authority.
    (c) Requests for extensions of comment periods. Requests for 
extensions of comment periods shall include a description of the 
potential impact of the proposed authority and the specific actions or 
steps for which additional time is necessary.
    (d) Responses to comments on applications. Submissions in response 
to comments received during the public comment period or pursuant to 
Sec.  400.33(e)(1) orSec. 400.34(a)(5)(iv)(A) should contain evidence 
that is probative and substantial in addressing the matter at issue.



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,

[[Page 76]]

which provides for the collection of user fees by agencies of the 
Federal Government.
    (b) Uniform system of user fee charges. The following fee schedule 
establishes fees for certain types of applications and requests for 
authority on the basis of their estimated 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.  400.21;Sec. 
400.11(a)(2))--$3,200
    (2) Special-purpose subzones (Sec.  400.25):
    (i) Not involving production activity or involving production 
activity with fewer than three products--$4,000
    (ii) Production activity with three or more products--$6,500
    (3) Expansions (Sec.  400.24(b))--$1,600
    (c) Applications submitted to the Board shall include a currently 
dated 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 
the Board in 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.  400.31(b), or are withdrawn by applicants prior to formal 
docketing, refunds will be made.



       Subpart D_Procedures for Application Evaluation and Reviews



Sec.  400.31  General application provisions and pre-docketing review.

    (a) In general. Sections 400.31-400.36 and 400.38 outline the 
procedures to be followed in docketing and processing applications 
submitted under Sec.Sec. 400.21, 400.23, 400.24(b), and 400.25. In 
addition, these sections set forth the time schedules which will 
ordinarily apply in processing applications. The schedules will guide 
applicants with respect to the time frames for each of the procedural 
steps involved in the Board's review. Under these schedules, 
applications for subzone designation will generally be processed within 
5 months (3 months for applications subject toSec. 400.36(f)) and 
applications to establish or expand zones will generally be processed 
within 10 months. The general timeframe to process applications for 
production authority is 12 months, but additional time is most likely to 
be required for applications requesting production authority when a 
complex or controversial issue is involved or when the applicant or 
other party has obtained a time extension for a particular procedural 
step. The timeframes specified apply from the time of docketing. Each 
applicant is responsible for submitting an application that meets the 
docketing requirements in a timeframe consistent with the applicant's 
need for action on its request.
    (b) Pre-docketing review. The grantee shall submit a single complete 
copy of an application for pre-docketing review. (For requests relating 
to production in already approved zone or subzone space, the request may 
be submitted by the operator, provided the operator at the same time 
furnishes a copy of the request to the grantee.) The Executive Secretary 
shall determine whether the application satisfies the requirements of 
Sec.Sec. 400.12, 400.21, 400.23-400.25, and other applicable 
provisions of this part such that the application is sufficient for 
docketing. If the pre-docketing copy of the application is deficient, 
the Executive Secretary shall notify the applicant within 30 days of 
receipt of the pre-docketing copy, specifying the deficiencies. An 
affected zone participant may also be contacted regarding relevant 
application elements requiring additional information or clarification. 
If the applicant does not correct the deficiencies and submit a 
corrected pre-docketing application copy within 30 days of notification, 
the pre-docketing application (single copy) shall be discarded.



Sec.  400.32  Procedures for docketing applications and commencement
of case review.

    (a) Once the pre-docketing copy of the application is determined to 
be sufficient, the Executive Secretary shall notify the applicant within 
15 days so that the applicant may then submit the original and requisite 
number of copies (which shall be dated upon receipt at the headquarters 
of the Board)

[[Page 77]]

for docketing by the Board. For applications subject toSec. 400.29, 
the original shall be accompanied with a check in accordance with that 
section.
    (b) After the procedures described in paragraph (a) of this section 
are completed, the Executive Secretary shall within 15 days of receipt 
of the original and required number of copies of the application:
    (1) Formally docket the application, thereby initiating the 
proceeding or review;
    (2) Assign a case-docket number; and
    (3) Notify the applicant of the formal docketing action.
    (c) After initiating a proceeding based on an application under 
Sec.Sec. 400.21 and 400.23-400.25, the Executive Secretary shall:
    (1) Designate an examiner to conduct a review and prepare a report 
or memorandum with recommendations for the Board;
    (2) Publish in the Federal Register a notice of the formal docketing 
of the application and initiation of the review. The notice shall 
include the name of the applicant, a description of the proposal, and an 
invitation for public comment. If the application requests authority for 
production activity and indicates that a component to be used in the 
activity is subject to a trade-related measure or proceeding (e.g., AD/
CVD order or proceeding, suspension of liquidation under AD/CVD 
procedures), the notice shall include that information. For applications 
to establish or expand a zone or for production authority, the comment 
period shall normally close 60 days after the date the notice appears. 
For applications for subzone designation, the comment period shall 
normally close 40 days after the date the notice appears. However, if a 
hearing is held (seeSec. 400.52), the comment period shall not close 
prior to 15 days after the date of the hearing. The closing date for 
general comments shall ordinarily be followed by an additional 15-day 
period for rebuttal comments. Requests for extensions of a comment 
period will be considered, subject to the standards ofSec. 400.28(c). 
Submissions must meet the requirements ofSec. 400.28(b). With the 
exception of submissions by the applicant, any new evidence or new 
factual information and any written arguments submitted after the 
deadlines for comments shall not be considered by the examiner or the 
Board. Submission by the applicant of new evidence or new factual 
information may result in the (re)opening of a comment period. A comment 
period may otherwise be opened or reopened for cause;
    (3) Transmit or otherwise make available copies of the docketing 
notice and the application to CBP;
    (4) Arrange for hearings, as appropriate;
    (5) Transmit the report and recommendations of the examiner and any 
comments by CBP to the Board for appropriate action; and
    (6) Notify the applicant in writing (via electronic means, where 
appropriate) and publish notice in the Federal Register of the Board's 
determination.
    (d) CBP review. Any comments by CBP pertaining to the application 
shall be submitted to the Executive Secretary by the conclusion of the 
public comment period described in paragraph (c)(2) of this section.



Sec.  400.33  Examiner's review--application to establish or 
modify a zone.

    An examiner assigned to review an application to establish, 
reorganize or expand a zone shall conduct a review taking into account 
the factors enumerated inSec. 400.26 and other appropriate sections of 
this part, which shall include:
    (a) Conducting or participating in hearings scheduled by the 
Executive Secretary;
    (b) Reviewing case records, including public comments;
    (c) Requesting information and evidence from parties of record;
    (d) Developing information and evidence necessary for evaluation and 
analysis of the application in accordance with the criteria of the Act 
and this part; and
    (e) Developing recommendations to the Board and submitting a report 
to the Executive Secretary, generally within 150 days of the close of 
the period for public comment (75 days for reorganizations under the 
ASF) (seeSec. 400.32):

[[Page 78]]

    (1) If the recommendations are unfavorable to the applicant, they 
shall be considered preliminary and the applicant shall be notified in 
writing (via electronic means, where appropriate) of the preliminary 
recommendations and the factors considered in their development. The 
applicant shall be given 30 days from the date of notification, subject 
to extensions upon request by the applicant, which shall not be 
unreasonably withheld, in which to respond to the recommendations and 
submit additional evidence pertinent to the factors considered in the 
development of the preliminary recommendations. Public comment may be 
invited on preliminary recommendations when warranted.
    (2) If the response contains new evidence on which there has been no 
opportunity for public comment, the Executive Secretary shall publish a 
notice in the Federal Register after completion of the review of the 
response. The new material shall be made available for public inspection 
and the Federal Register notice shall invite further public comment for 
a period of not less than 30 days, with an additional 15-day period for 
rebuttal comments.
    (3) If the bases for an examiner's recommendation(s) change as a 
result of new evidence, the applicable procedures of Sec.Sec. 
400.33(e)(1) and (2) shall be followed.
    (4) When necessary, a request may be made to CBP to provide further 
comments, which shall be submitted within 45 days after the request.



Sec.  400.34  Examiner's review--application for production authority.

    (a) The examiner shall conduct a review taking into account the 
factors enumerated in this section,Sec. 400.27, and other appropriate 
sections of this part, which shall include:
    (1) Conducting or participating in hearings scheduled by the 
Executive Secretary;
    (2) Reviewing case records, including public comments;
    (3) Requesting information and evidence from parties of record and 
others, as warranted;
    (4) Developing information and evidence necessary for analysis of 
the threshold factors and the economic factors enumerated inSec. 
400.27; and
    (5) Conducting an analysis to include:
    (i) An evaluation of policy considerations pursuant to Sec.Sec. 
400.27(a)(1) and (2);
    (ii) An evaluation of the economic factors enumerated in Sec.Sec. 
400.27(a)(3) and 400.27(b), 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 production 
activity;
    (iii) Conducting appropriate industry research and surveys, as 
necessary; and
    (iv) Developing recommendations to the Board and submitting a report 
to the Executive Secretary, generally within 150 days of the close of 
the period for public comment (although additional time may be required 
in circumstances such as when the applicant or other party has obtained 
a time extension for a particular procedural step):
    (A) If the recommendations are unfavorable to the applicant, they 
shall be considered preliminary and the applicant shall be notified in 
writing (via electronic transmission where appropriate) of the 
preliminary recommendations and the factors considered in their 
development. The applicant shall be given 45 days from the date of 
notification in which to respond to the recommendations and submit 
additional evidence pertinent to the factors considered in the 
development of the preliminary recommendations. Public comment may be 
invited on preliminary recommendations when warranted.
    (B) If the response contains new evidence on which there has not 
been an opportunity for public comment, the Executive Secretary shall 
publish notice in the Federal Register after completion of the review of 
the response. The new material shall be made available for public 
inspection and the Federal Register notice shall invite further public 
comment for a period of not less than 30 days, with an additional 15-day 
period for rebuttal comments.
    (C) If the bases for an examiner's recommendation(s) change as a 
result of

[[Page 79]]

new evidence, the applicable procedures of Sec.Sec. 
400.34(a)(5)(iv)(A) and (B) shall be followed.
    (b) Methodology and evidence. The evaluation of an application for 
production authority shall include the following steps:
    (1) The first phase (Sec.  400.27(a)) involves consideration of 
threshold factors. If an examiner or reviewer makes a negative finding 
on any of the factors inSec. 400.27(a) in the course of a review, the 
applicant shall be informed pursuant toSec. 400.34(a)(5)(iv)(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 
toSec. 400.34(a)(5)(iv)(A). If the Board determines in the negative 
regarding any of the factors inSec. 400.27(a), it shall deny or 
restrict authority for the proposed or ongoing activity.
    (2) The second phase (Sec.  400.27(b)) involves consideration of the 
enumerated economic factors, taking into account their relative weight 
and significance under the circumstances. Previous evaluations in 
similar cases shall be considered.



Sec.  400.35  Examiner's review--application for subzone designation.

    The examiner shall develop a memorandum with a recommendation on 
whether to approve the application, taking into account the criteria 
enumerated inSec. 400.26. To develop that memorandum, the examiner 
shall review the case records including public comments, and may request 
information and evidence from parties of record, as necessary. The 
examiner's memorandum shall generally be submitted to the Board within 
30 days of the close of the period for public comment. However, 
additional time may be taken as necessary for analysis of any public 
comment in opposition to the application or if other complicating 
factors arise.
    (a) If the examiner's recommendation is unfavorable to the 
applicant, it shall be considered preliminary and the applicant shall be 
notified in writing (via electronic means, where appropriate) of the 
preliminary recommendation and the factors considered in its 
development. The applicant shall be given 30 days from the date of 
notification, subject to extensions upon request by the applicant, which 
shall not be unreasonably withheld, in which to respond to the 
recommendation and submit additional evidence pertinent to the factors 
considered in the development of the preliminary recommendations. Public 
comment may be invited on preliminary recommendations when warranted.
    (b) If the response contains new evidence on which there has not 
been an opportunity for public comment, the Executive Secretary shall 
publish notice in the Federal Register after completion of the review of 
the response. The new material shall be made available for public 
inspection and the Federal Register notice shall invite further public 
comment for a period of not less than 30 days, with an additional 15-day 
period for rebuttal comments.
    (c) If the bases for an examiner's recommendation(s) change as a 
result of new evidence, the applicable procedures of Sec.Sec. 
400.35(a) and (b) shall be followed.
    (d) The CBP adviser shall be requested, when necessary, to provide 
further comments, which shall be submitted within 45 days after the 
request.



Sec.  400.36  Completion of case review.

    (a) The Executive Secretary shall circulate the examiner's report 
(memorandum in the case of subzone applications) with recommendations to 
CBP headquarters staff and to the Treasury Board member for review and 
action.
    (b) In its advisory role to the Board, CBP headquarters staff shall 
provide any comments within 15 days.
    (c) The vote of the Treasury Board member shall be returned to the 
Executive Secretary within 30 days, unless a formal meeting is requested 
(see,Sec. 400.3(b)).
    (d) The Commerce Department shall complete the decision process 
within 15 days of receiving the vote of the Treasury Board member, and 
the Executive Secretary shall publish the Board decision.
    (e) If the Board is unable to reach a unanimous decision, the 
grantee shall

[[Page 80]]

be notified and provided an opportunity to meet with the Board members 
or their delegates.
    (f) Delegation of authority to approve subzone designation. The 
Board delegates to the Executive Secretary authority to approve 
applications requesting subzone designation, on the condition that such 
approved subzones will be subject to the activation limit for the zone 
in question.
    (g) The Board or the Commerce Department's Assistant Secretary for 
Import Administration may opt to terminate review of an application with 
no further action if the applicant has failed to provide in a timely 
manner information needed for evaluation of the application. A request 
from an applicant for an extension of time to provide information needed 
for evaluation of an application shall not be unreasonably withheld. The 
Executive Secretary may terminate review of an application where the 
overall circumstances presented in the application no longer exist as a 
result of a material change, and shall notify the applicant in writing 
of the intent to terminate review and allow 30 days for a response prior 
to completion of any termination action. The Executive Secretary shall 
confirm the termination in writing (by electronic means, where 
appropriate) to the applicant.



Sec.  400.37  Procedure for notification of proposed production activity.

    (a) Submission of notification. A notification for production 
authority pursuant to Sec.Sec. 400.14(a) and 400.22 shall be submitted 
simultaneously to the Board's Executive Secretary and to CBP (as well as 
to the grantee of the zone, if the grantee is not the party making the 
submission).
    (b) Initial processing of notification. Upon receipt of a complete 
notification conforming to the requirements of the notification format 
established by the Executive Secretary pursuant toSec. 400.22, the 
Executive Secretary shall commence processing the notification. Unless 
the Executive Secretary determines, based on the content of the 
notification, to recommend further review to the Board without inviting 
public comment on the notification, the Executive Secretary shall 
transmit to the Federal Register a notice inviting public comment on the 
notification (with such comment subject to the standards ofSec. 
400.28(b)). The notice shall be transmitted to the Federal Register 
within 15 days of the commencement of the processing of the 
notification, and the comment period shall normally close 40 days after 
the date the notice appears. If the notification indicates that a 
material or component to be used in the activity is subject to an AD/CVD 
order or proceeding, or suspension of liquidation under AD/CVD 
procedures, the notice shall include that information. Evidence, factual 
information and written arguments submitted in response to the notice 
must be submitted by the deadline for comments. Any comments by CBP 
pertaining to the notification shall be submitted to the Executive 
Secretary by the end of the comment period. Within 80 days of receipt of 
the notification, the Executive Secretary shall submit to the Board a 
recommendation on whether further review of all or part of the activity 
subject to the notification is warranted. The Executive Secretary's 
recommendation shall consider comments submitted during the comment 
period, any guidance from specialists within government, and other 
relevant factors based on the Board staff's assessment of the 
notification, in the context of the factors set forth inSec. 400.27.
    (c) Determinations regarding further review. Within 30 days of 
receipt of the Executive Secretary's recommendation, the Board members 
shall provide to the Executive Secretary their determinations on whether 
further review is warranted concerning all or part of the activity that 
is the subject of the notification. If either Board member makes a 
determination that further review is warranted, the activity that is 
subject to further review (which may constitute all or part of the 
notified activity) shall not be conducted without authorization pursuant 
to the application requirements ofSec. 400.23 and the procedural 
requirements of Sec.Sec. 400.31-400.34 and 400.36 (or the provisions 
of paragraph (d) of this section, where applicable). Within 120 days of 
receipt of the notification, the Executive Secretary shall notify the 
party that submitted

[[Page 81]]

the notification (and the zone grantee, if it did not submit the 
notification) that:
    (1) Further review is not needed for all or part of the activity 
that is the subject of the notification, and that the activity in 
question may be conducted; or
    (2) Further review is needed for all or part of the activity that is 
the subject of the notification, with such activity precluded absent 
specific authorization.
    (d) Authorization for commencement of an activity on an interim 
basis. For an activity notified pursuant toSec. 400.14(a), the 
Executive Secretary may authorize the commencement of some or all of the 
activity on an interim basis. Such authorization shall only be made 
based on a showing that commencement of the activity is time-sensitive, 
with such showing to include comments from CBP that specifically address 
the projected timeframe for commencement of the activity. Interim 
authorization shall not apply to materials or components subject to an 
AD/CVD order or proceeding or suspension of liquidation under AD/CVD 
procedures. As warranted, a determination that further review is needed 
for all or some of the notified activity pursuant toSec. 400.37(c) may 
also revoke the interim authorization until the Board makes a 
determination after conduct of that further review.



Sec.  400.38  Procedure for application for minor modification of zone.

    (a) The Executive Secretary shall make a determination in cases 
underSec. 400.24(c) involving minor modifications of zones that do not 
require Board action, such as boundary modifications, including certain 
relocations, and shall notify the applicant in writing of the decision 
within 30 days of the determination that the application or request can 
be processed underSec. 400.24(c). The applicant shall submit a copy of 
its application/request to CBP no later than the time of the applicant's 
submission of the application/request to the Executive Secretary.
    (b) If not previously provided to the applicant for inclusion with 
the applicant's submission of the application/request to the Executive 
Secretary, any CBP comments on the application/request shall be provided 
to the Executive Secretary within 20 days of the applicant's submission 
of the application/request to the Executive Secretary.



      Subpart E_Operation of Zones and Administrative Requirements



Sec.  400.41  General operation of zones; requirements for commencement
of operations.

    (a) In general. Zones shall be operated by or under the general 
management of zone grantees, subject to the requirements of the FTZ Act 
and this part, as well as those of other federal, state and local 
agencies having jurisdiction over the site(s) and operation(s). Zone 
grantees shall ensure that the reasonable zone needs of the business 
community are served by their zones. CBP officials with oversight 
responsibilities for a port of entry represent the Board with regard to 
the zones adjacent to the port of entry in question and are responsible 
for enforcement, including physical security and access requirements, as 
provided in 19 CFR part 146.
    (b) Requirements for commencement of operations in a zone. The 
following actions are required before operations in a zone may commence:
    (1) The grantee shall submit the zone schedule to the Executive 
Secretary, as provided inSec. 400.44.
    (2) Approval or concurrence from the grantee and approval from CBP, 
pursuant to 19 CFR part 146, are required prior to the activation of any 
portion of an approved zone; and
    (3) Prior to activation of a zone, the 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.



Sec.  400.42  Operation as public utility.

    (a) In general. Pursuant to Section 14 of the FTZ Act (19 U.S.C. 
81n), each zone shall be operated as a public utility, and all rates and 
charges for all services or privileges within the zone shall be fair and 
reasonable. A rate or charge (fee) may be imposed on zone participants 
to recover costs incurred by or on behalf of the grantee for the

[[Page 82]]

performance of the grantee function. Such a rate or charge must be 
directly related to the service provided by the grantee (for which the 
fee recovers some or all costs incurred) to the zone participants. Rates 
or charges may incorporate a reasonable return on investment. Rates or 
charges may not be tied to the level of benefits derived by zone 
participants. Other than the uniform rates and charges assessed by, or 
on behalf of, the grantee, zone participants shall not be required 
(either directly or indirectly) to utilize or pay for a particular 
provider's zone-related products or services.
    (b) Delayed compliance date. The compliance date for the 
requirements of paragraph (a) of this section shall be February 28, 
2014.



Sec.  400.43  Uniform treatment.

    Pursuant to Section 14 of the FTZ Act (19 U.S.C. 81n), a grantee 
shall afford to all who may apply to make use of or participate in the 
zone uniform treatment under like conditions. Treatment of zone 
participants within a zone (including application of rates and charges) 
shall not vary depending on whether a zone participant has procured any 
zone-related product or service or engaged a particular supplier to 
provide any such product or service.
    (a) Agreements to be made in writing. Any agreement or contract 
related to one or more grantee function(s) and involving a zone 
participant (e.g., agreements with property owners and agreements with 
zone operators) must be in writing.
    (b) Evaluation of proposals. A grantee (or person undertaking a 
zone-related function(s) on behalf of a grantee, where applicable) shall 
apply uniform treatment in the evaluation of proposals from zone 
participants. Uniform treatment does not require acceptance of all 
proposals by zone participants, but the bases for a grantee's decision 
on a particular proposal must be consistent with the uniform treatment 
requirement.
    (c) Justification for differing treatment. Given the requirement for 
uniform treatment under like conditions, for any instance of different 
treatment of different zone participants, a grantee (or person 
undertaking a zone-related function(s) on behalf of a grantee, where 
applicable) must be able to provide upon request by the Executive 
Secretary a documented justification for any difference in treatment.
    (d) Avoidance of non-uniform treatment. To avoid non-uniform 
treatment of zone participants, persons (as defined inSec. 400.2(l)) 
within key categories set out in paragraph (d)(2) of this section shall 
not undertake any of the key functions set out in paragraph (d)(1) of 
this section (except in specific circumstances where the Board has 
authorized a waiver pursuant to paragraph (f) of this section).
    (1) Key functions are:
    (i) Taking action on behalf of a grantee, or making recommendations 
to a grantee, regarding the disposition of proposals or requests by zone 
participants pertaining to FTZ authority or activity (including 
activation by CBP);
    (ii) Approving, or being a party to, a zone participant's agreement 
with the grantee (or person acting on behalf of the grantee) pertaining 
to FTZ authority or activity (including activation by CBP); or
    (iii) Overseeing zone participants' operations on behalf of a 
grantee.
    (2) Key categories of persons are:
    (i) A person that currently engages in, or which has during the 
preceding twelve months engaged in, offering/providing a zone-related 
product/service to or representing a zone participant in the grantee's 
zone;
    (ii) Any person that stands to gain from a person's offer/provision 
of a zone-related product/service to or representation of a zone 
participant in the zone; or
    (iii) Any person related, as defined in paragraph (e) of this 
section, to the person identified in paragraphs (d)(2)(i) and (ii) of 
this section.
    (e) Definition of related persons. For purposes of this section, 
persons that are related include:
    (1) Members of a family or members of a household. The term members 
of a family means spouses, parents, grandparents, children, 
grandchildren, siblings (including half-siblings and step-siblings), 
aunts, uncles, nieces, nephews, and first cousins, as well as the 
parents, children, and siblings of a

[[Page 83]]

spouse, and the spouse of a sibling, child or parent;
    (2) Organizations that are wholly or majority-owned by members of 
the same family or members of the same household;
    (3) An officer or director of an organization and that organization;
    (4) Partners;
    (5) Employers and their employees;
    (6) An organization and any person directly or indirectly owning, 
controlling, or holding with power to vote, 20 percent or more of the 
outstanding voting stock or shares of that organization;
    (7) Any person that controls any other person and that other person 
(the term control means the power, direct or indirect, whether or not 
exercised, through any means, to determine, direct, or decide important 
matters affecting an entity); or
    (8) Any two or more persons who directly control, are controlled by, 
or are under common control with, any person (see definition of control 
in paragraph (e)(7) of this section).
    (f) Waivers. The grantee or other person subject to paragraph (d) of 
this section may submit an application requesting that the Board issue a 
waiver exempting from the prohibition of that paragraph a person's 
undertaking a specific key function(s) listed in paragraph (d)(1) of 
this section. Using the format developed by the Executive Secretary, an 
application for a waiver shall explain in detail how the person falls 
within a key category(ies) set out in paragraph (d)(2) of this section, 
and the specific key function(s) listed in paragraph (d)(1) of this 
section that would be undertaken by the person. After receipt of an 
application requesting a waiver, the Executive Secretary may solicit 
additional information or clarification, as necessary, including from 
the person submitting the application and from the grantee. Based on the 
information presented in the application, the Executive Secretary shall 
make a recommendation to the Board. A waiver shall be authorized only by 
an affirmative vote by the Board. If the Board votes not to authorize a 
waiver or to discontinue a waiver, the applicant shall be notified in 
writing and allowed 30 days to present evidence in response. In deciding 
whether to grant a waiver, the Board shall determine whether there is an 
unacceptable risk that the waiver would result in non-uniform treatment 
being afforded by the person undertaking a key function(s) listed in 
paragraph (d)(1) of this section. In its assessment, the Board shall 
consider the specific circumstances presented, including the nature and 
extent of the person's involvement in undertaking a key function(s) 
listed in paragraph (d)(1) of this section. In general, the more 
significant the requester's involvement or interest in the undertaking 
of a key function(s) listed in paragraph (d)(1) of this section or 
activity(ies) identified in paragraph (d)(2)(i) of this section, the 
greater the risk will be that non-uniform treatment will be afforded 
and, thus, the less likely it will be that a waiver will be granted. The 
Board may attach to individual waivers such conditions or limitations 
(including, for example, the length of time a waiver is to be effective) 
as it deems necessary.
    (g) Requests for determinations. A grantee or other party may 
request a determination by the Executive Secretary regarding the 
consistency of an actual or potential arrangement with the requirements 
of this section.
    (h) Identification of person undertaking function(s) on behalf of 
grantee. The Board, the Commerce Department's Assistant Secretary for 
Import Administration, or the Executive Secretary, may require a zone 
grantee to identify any person undertaking a zone-related function(s) on 
behalf of the grantee.
    (i) Delayed compliance date. If, as of April 30, 2012, existing 
business arrangements do not comply with the requirements of paragraphs 
(a) and (d) of this section, such existing arrangements shall be 
terminated or brought into compliance no later than February 28, 2014.

    Effective Date Note: At 77 FR 12139, Feb. 28, 2012,Sec. 400.43 was 
added. Paragraph (f) contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.

[[Page 84]]



Sec.  400.44  Zone schedule.

    (a) In general. The zone grantee shall submit to the Executive 
Secretary (in both paper and electronic copies) a zone schedule which 
sets forth the elements required in this section. No element of a zone 
schedule (including any amendment to the zone schedule) may be 
considered to be in effect until such submission has occurred. If 
warranted, the Board may subsequently amend the requirements of this 
section by Board Order.
    (b) Each zone schedule shall include:
    (1) A title page, which shall include the name of the zone grantee 
and the date of the current schedule;
    (2) A table of contents;
    (3) Internal rules/regulations and policies for the zone;
    (4) All rates or charges assessed by or on behalf of the grantee;
    (5) Information regarding any operator which has an agreement with 
the grantee to offer services to the public, including the operator's 
rates or charges for all zone-specific services offered; and
    (6) An appendix with definitions of any FTZ-related terms used in 
the zone schedule (as needed).
    (c) The Executive Secretary may review the zone schedule (or any 
amendment to the zone schedule) to determine whether it contains 
sufficient information for zone participants concerning the operation of 
the zone and the grantee's rates and charges as provided in paragraphs 
(b)(3) and (b)(4) of this section. If the Executive Secretary determines 
that the zone schedule (or amendment) does not satisfy these 
requirements, the Executive Secretary shall notify the zone grantee. The 
Executive Secretary may also conduct a review under 400.45(b).
    (d) Amendments to the zone schedule shall be prepared and submitted 
in the manner described in paragraph (a) of this section, and listed in 
the concluding section of the zone schedule, with dates. No rates/
charges or other provisions required for the zone schedule may be 
applied by, or on behalf of, the grantee unless those specific rates/
charges or provisions are included in the most recent zone schedule 
submitted to the Board and made available to the public in compliance 
with paragraph (e) of this section.
    (e) Availability of zone schedule. A complete copy of the zone 
schedule shall be freely available for public inspection at the offices 
of the zone grantee and any operator offering FTZ services to the user 
community. The Board shall make copies of zone schedules available on 
its Web site.
    (f) Delayed compliance date. The compliance date for the 
requirements of this section shall be February 28, 2014.



Sec.  400.45  Complaints related to public utility and uniform treatment.

    (a) In general. A zone participant may submit to the Executive 
Secretary a complaint regarding conditions or treatment that the 
complaining party believes are inconsistent with the public utility and 
uniform treatment requirements of the FTZ Act and these regulations. 
Complaints may be made on a confidential basis, if necessary. Grantees 
(and persons undertaking zone-related functions on behalf of grantees, 
where applicable) shall not enter into or enforce provisions of 
agreements or contracts with zone participants that would require zone 
participants to disclose to other parties, including the grantee (or 
person undertaking a zone-related function(s) on behalf of a grantee, 
where applicable), any confidential communication with the Board under 
this section.
    (b) Objections to rates and charges. A zone participant showing good 
cause may object to any rate or charge related to the zone on the basis 
that it is not fair and reasonable by submitting to the Executive 
Secretary a complaint in writing with supporting information. If 
necessary, such a complaint may be made on a confidential basis pursuant 
toSec. 400.45(a). The Executive Secretary shall review the complaint 
and issue a report and decision, which shall be final unless appealed to 
the Board within 30 days. The Board or the Executive Secretary may 
otherwise initiate a review for cause. The primary factor considered in 
reviewing fairness and reasonableness is the cost of the specific 
services rendered. Where those costs incorporate charges to the grantee 
by one or more parties undertaking functions on behalf of the

[[Page 85]]

grantee, the Board may consider the costs incurred by those parties 
(using best estimates, as necessary). The Board will also give 
consideration to any extra costs incurred relative to non-zone 
operations, including return on investment and reasonable out-of-pocket 
expenses.



Sec.  400.46  Grantee liability.

    (a) Exemption from liability. A grant of authority, per se, shall 
not be construed to make the zone grantee liable for violations by zone 
participants. The role of the zone grantee under the FTZ Act and the 
Board's regulations is to provide general management of the zone to 
ensure that the reasonable needs of the business community are served. 
It would not be in the public interest to discourage public entities 
from zone sponsorship because of concern about liability without fault.
    (b) Exception to exemption from liability. A grantee could create 
liability for itself that otherwise would not exist if the grantee 
undertakes detailed operational oversight of or direction to zone 
participants. Examples of detailed operational oversight or direction 
include review of an operator's inventory-control or record-keeping 
systems, specifying requirements for such a system to be used by an 
operator, and review of CBP documentation related to an operator's zone 
receipts and shipments.



Sec.  400.47  Retail trade.

    (a) In general. Retail trade is prohibited in activated areas of 
zones, except that 1) sales or other commercial activity involving 
domestic, duty-paid, and duty-free goods may be conducted within an 
activated area of a zone under a permit issued by the zone grantee and 
approved by the Board, and 2) 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 individuals working therein. The Executive Secretary shall 
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. 
Determinations on whether an activity constitutes retail trade shall be 
based on precedent established through prior rulings by CBP, as 
appropriate. Such prior rulings shall remain effective unless a 
determination is issued to modify their effect (after a notice-and-
comment process, as appropriate). Determinations made by the Executive 
Secretary pursuant to this section shall be made available to the public 
via the Board's Web site.
    (b) Procedure. Requests for Board approval under this section shall 
be submitted in letter form, with supporting documentation, to the 
Executive Secretary, who is authorized to act for the Board in these 
cases, after consultation with CBP as necessary.
    (c) Criteria. In evaluating requests under this section, the 
Executive Secretary and CBP shall consider factors that may include:
    (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.



Sec.  400.48  Zone-restricted merchandise.

    (a) In general. Merchandise in zone-restricted status (19 CFR 
146.44) may be entered into the customs territory of the United States 
only when the Board determines that the entry would be in the public 
interest. Such entries are subject to the customs laws and the payment 
of applicable duties and excise taxes (19 U.S.C. 81c(a), 4th proviso).
    (b) Criteria. In making the determination described in paragraph (a) 
of this section, the Board shall consider:
    (1) The intent of the parties;
    (2) Why the merchandise cannot be exported;
    (3) The public benefit involved in allowing entry of the 
merchandise; and
    (4) The recommendation of CBP.
    (c) Procedure. (1) A request for authority to enter ``zone-
restricted'' merchandise into U.S. customs territory shall be made to 
the Executive Secretary in letter form by the zone grantee or by the 
operator responsible for the merchandise (with copy to the grantee), 
with supporting information and documentation.

[[Page 86]]

    (2) The Executive Secretary shall investigate the request and 
prepare a report for the Board.
    (3) The Executive Secretary may act for the Board under this section 
with respect to requests that involve merchandise valued at 500,000 
dollars or less and that are accompanied by a letter of concurrence from 
CBP.



Sec.  400.49  Monitoring and reviews of zone operations and activity.

    (a) In general. Ongoing zone operation(s) and activity may be 
reviewed by the Board or the Executive Secretary at any time to 
determine whether they are in the public interest and in compliance and 
conformity with the Act and regulations, as well as authority approved 
by the Board. Reviews involving production activity 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 inSec. 400.27. 
The Board may prescribe special monitoring requirements in its decisions 
when appropriate.
    (b) Conduct of reviews. 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 
showing good cause based on the provision of information that is 
probative and substantial in addressing the matter in issue. After 
initiation of a review, any affected party shall provide in a timely 
manner any information requested as part of the conduct of the review. 
If a party fails to timely provide information requested as part of such 
a review, a presumption unfavorable to that party may be made.
    (c) Prohibition or restriction. Upon review, if a finding is made 
that zone activity is no longer in the public interest (taking into 
account the factors enumerated inSec. 400.27 where production activity 
is involved), the Board or the Commerce Department's Assistant Secretary 
for Import Administration may prohibit or restrict the activity in 
question. Such prohibitions or restrictions may be put in place after a 
preliminary review (e.g., prior to potential steps such as a public 
comment period) if circumstances warrant such action until further 
review can be completed. The procedures ofSec. 400.34(a)(5)(iv)(A) 
shall be followed to notify the grantee of the affected zone and allow 
for a response prior to the final imposition of a prohibition or 
restriction. The appropriateness of a delayed effective date shall be 
considered.



      Subpart F_Records, Reports, Notice, Hearings and Information



Sec.  400.51  Records and reports.

    (a) Records and forms. Zone records and forms shall be prepared and 
maintained in accordance with the requirements of CBP and the Board, 
consistent with documents issued by the Board specific to the zone in 
question, and the zone grantee shall retain copies of applications/
requests it submits to the Board in electronic or paper format.
    (b) Maps and drawings. Zone grantees or operators, and CBP, shall 
keep current layout drawings of approved sites as described inSec. 
400.21(d)(5), showing activated portions, and a file showing required 
activation approvals. The zone grantee shall furnish necessary maps to 
CBP.
    (c) Annual reports. (1) Each zone grantee shall submit a complete 
and accurate annual report to the Board within 90 days after the end of 
the reporting period. Each zone operator shall submit a complete and 
accurate annual report to the zone grantee in a timeframe that will 
enable the grantee's timely submission of a complete and accurate annual 
report to the Board. A zone grantee may request an extension of the 
deadline for its report, as warranted. The Executive Secretary may 
authorize such extensions, with decisions on such authorizations taking 
into account both the circumstances presented and the importance of the 
Board submitting its annual report to Congress in a timely manner. 
Annual reports must be submitted in accordance with any instructions, 
guidelines, forms and related documents specifying place, manner

[[Page 87]]

and format(s) prescribed by the Executive Secretary. In the event that a 
grantee has not received all necessary annual report information from an 
operator in a timely manner, the grantee may submit its annual report on 
time and note the absence of the missing information.
    (2) The Board shall submit an annual report to Congress.



Sec.  400.52  Notices and hearings.

    (a) In general. The Executive Secretary shall publish notice in the 
Federal Register inviting public comment on applications and 
notifications for Board action (see, Sec.Sec. 400.32 and 400.37(b)), 
and with regard to other reviews or matters considered under this part 
when public comment is necessary. An applicant under Sec.Sec. 400.21, 
400.24(b) and 400.25 shall give appropriate notice of its proposal in a 
local, general-circulation newspaper at least 15 days prior to the close 
of the public comment period for the proposal in question. The Board, 
the Secretary of Commerce, 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 party who may be materially 
affected by the zone activity in question and who shows 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 (seeSec. 400.32) 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 shall 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 shall publish notice in 
the Federal Register of the date, time and location of a public 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.  400.53  Official records; public access.

    (a) Content. The Executive Secretary shall maintain at the location 
stated inSec. 400.54(e) an official record of each proceeding within 
the Board's jurisdiction. The Executive Secretary shall include in the 
official record all timely evidence, factual information, and written 
argument, and other material developed by, presented to, or obtained by 
the Board in connection with the proceeding. 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 to a proposal is involved.
    (b) Opening and closing of official record. The official record 
opens on the date the Executive Secretary dockets an application or 
receives a request or notification 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 shall 
not be removed from the Department of Commerce. A certified copy of the 
record shall be made available to any court before which any aspect of a 
proceeding is under review, with appropriate safeguards to prevent 
disclosure of business proprietary or privileged information.



Sec.  400.54  Information.

    (a) Request for information. The Executive Secretary, on behalf of 
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 shall consider all information submitted in a 
proceeding to be public information, and if the person submitting the 
information does not

[[Page 88]]

agree to its public disclosure, the Board shall return the information 
and not consider it in the proceeding. Information to meet the basic 
requirements of Sec.Sec. 400.21-400.25 is inherently public 
information to allow meaningful public evaluation pursuant to those 
sections andSec. 400.32.
    (c) Business proprietary information. Persons submitting business 
proprietary information and requesting that it be protected from public 
disclosure shall mark the cover page, as well as the top of each page on 
which such information appears, ``business proprietary.'' Any business 
proprietary document submitted for a proceeding other than pursuant to 
Sec.  400.45 shall contain brackets at the beginning and end of each 
specific piece of business proprietary information contained in the 
submission. Any such business proprietary submission shall also be 
accompanied by a public version that contains all of the document's 
contents except the information bracketed in the business proprietary 
version, with the cover page and the top of each additional page marked 
``public version.'' Any information for which business proprietary 
treatment is claimed must be ranged (i.e., presented as a number or 
upper and lower limits that approximate the specific business 
proprietary figure) or summarized in the public version. If a submitting 
party maintains that certain information is not susceptible to 
summarization or ranging, the public version must provide a full 
explanation specific to each such piece of information regarding why 
summarization or ranging is not feasible.
    (d) Disclosure of information. Disclosure of public information 
shall be governed by 15 CFR part 4.
    (e) Availability of information. Public information in the official 
record shall be available at the Office of the Executive Secretary, 
Foreign-Trade Zones Board, U.S. Department of Commerce Building, 1401 
Constitution Avenue NW., Washington, DC 20230 and may also be available 
electronically over the Internet via http://www.trade.gov/ftz (or a 
successor Internet address).



              Subpart G_Penalties and Appeals to the Board



Sec.  400.61  Revocation of authority.

    (a) In general. As provided in this section, the Board can revoke in 
whole or in part authority for a zone or subzone whenever it determines 
that the zone grantee has violated, repeatedly and willfully, the 
provisions of the Act.
    (b) 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 shall:
    (1) Notify the grantee of the zone in question in writing stating 
the nature of the alleged violations, provide the grantee an opportunity 
to request a hearing on the proposed revocation, and notify any known 
operators in the zone;
    (2) Conduct a hearing, if requested or otherwise if appropriate;
    (3) Make a determination on the record of the proceeding not earlier 
than four months after providing notice to the zone grantee under 
paragraph (b)(1) of this section; and
    (4) If the Board's determination is affirmative, publish a notice of 
revocation of authority, in whole or in part, in the Federal Register.
    (c) As provided in section 18 of the Act (19 U.S.C. 81r(c)), the 
grantee of the zone or subzone in question may appeal an order of the 
Board revoking authority.



Sec.  400.62  Fines, penalties and instructions to suspend activated status.

    (a) In general. Fines are authorized solely for specific violations 
of the FTZ Act or the Board's regulations as detailed in Sec.Sec. 
400.62(b) and (c). Each specific violation is subject to a fine of not 
more than 1,000 dollars (as adjusted for inflation pursuant toSec. 
400.62(j)), with each day during which a violation continues 
constituting a separate offense subject to imposition of such a fine 
(FTZ Act, section 19; 19 U.S.C. 81s). This section also establishes the 
party subject to the fine which, depending on the type of violation, 
would be the zone operator, grantee, or a person undertaking one or more 
zone-related functions on behalf of the grantee, where applicable. In 
certain circumstances,

[[Page 89]]

the Board or the Assistant Secretary for Import Administration could 
instruct CBP to suspend the activated status of all or part of a zone or 
subzone. Violations of the FTZ Act or the Board's regulations (including 
the sections pertaining to uniform treatment and submission of annual 
reports), failure to pay fines, or failure to comply with an order 
prohibiting or restricting activity may also result in the Executive 
Secretary's suspending the processing of any requests to the Board and 
staff relating to the zone or subzone in question. In circumstances 
where non-compliance pertains to only a subset of the operations in a 
zone, suspensions of activated status and suspensions of the processing 
of requests shall be targeted to the specific non-compliant 
operation(s).
    (b) Violations involving requirement to submit annual report. A 
grantee's failure to submit a complete and accurate annual report 
pursuant to section 16 of the FTZ Act (19 U.S.C. 81p(b)) andSec. 
400.51(c)(1) of these regulations constitutes a violation subject to a 
fine, with each day of continued failure to submit the report 
constituting a separate offense subject to a fine of not more than 1,000 
dollars (as adjusted for inflation pursuant toSec. 400.62(j)). 
Further, each day during which a zone operator fails to submit to the 
zone's grantee the information required for the grantee's timely 
submission of a complete and accurate annual report to the Board shall 
constitute a separate offense subject to a fine of not more than 1,000 
dollars (as adjusted for inflation pursuant toSec. 400.62(j)). 
Consistent withSec. 400.46, if the grantee submits a timely report to 
the Board identifying any operator that has not provided complete and 
timely information in response to a timely request(s) by the grantee, 
the grantee shall not be subject to a fine-assessment action stemming 
from the operator's failure to timely provide its report.
    (c) Violations involving uniform treatment. Failure by a grantee or 
a person undertaking one or more zone-related functions on behalf of the 
grantee to comply with the uniform treatment requirement of section 14 
of the FTZ Act (19 U.S.C. 81n) or the provisions ofSec. 400.43 of 
these regulations constitutes a violation, with each day of continued 
violation constituting a separate offense subject to a fine of not more 
than 1,000 dollars (as adjusted for inflation pursuant toSec. 
400.62(j)).
    (d) Procedures for determination of violations and imposition of 
fines. When the Board or the Executive Secretary has reason to believe 
that a violation pursuant to Sec.Sec. 400.62(b) and (c) has occurred 
and that the violation warrants the imposition of a fine (such as a 
situation where a party has previously been notified of action required 
for compliance and has failed to take such action within a reasonable 
period of time), the following steps shall be taken:
    (1) The Executive Secretary shall notify the party or parties 
responsible for the violation and the zone grantee in writing stating 
the nature of the alleged violation, and provide the party(ies) a 
specified period (no less than 30 days, with consideration given to any 
requests for an extension, which shall not be unreasonably withheld) to 
respond in writing;
    (2) The Executive Secretary shall conduct a hearing, if requested or 
otherwise if appropriate. Parties may be represented by counsel at the 
hearing, and any evidence and testimony of witnesses in the proceeding 
shall be presented. A transcript of the hearing shall be produced and a 
copy shall be made available to the parties;
    (3) The Executive Secretary shall make a recommendation on the 
record of the proceeding not earlier than the later of 15 days after the 
deadline for the party(ies)'s response under paragraph (d)(1) of this 
section or 15 days after the date of a hearing held under paragraph 
(d)(2) of this section. If the recommendation is for an affirmative 
determination of a violation, the Executive Secretary shall also 
recommend the amount of the fine to be imposed; and
    (4) The Board shall make a determination regarding the finding of a 
violation and imposition of a fine based on the Executive Secretary's 
recommendation under paragraph (d)(3) of this section. For related 
actions where the total sum of recommended fines is no more than 10,000 
dollars (50,000 dollars in the case of violations pursuant to paragraph 
(b) of this section), the

[[Page 90]]

Board delegates to the Executive Secretary the authority to make a 
determination.
    (e) Mitigation--(1) In general. The Commerce Department's Assistant 
Secretary for Import Administration may approve the mitigation 
(reduction or elimination) of an imposed fine based on specific evidence 
presented by the affected party. Authority is delegated to the Executive 
Secretary to mitigate a fine where the total sum of fines imposed on a 
party for related actions does not exceed 10,000 dollars (50,000 dollars 
in the case of violations pursuant to paragraph (b) of this section). 
Mitigating evidence and argument pertaining to mitigating factors must 
be submitted within 30 days of the determination described in paragraph 
(d)(4) of this section, subject to requests for extension for cause, the 
granting of which shall not be unreasonably withheld.
    (2) Mitigating factors. Factors to be taken into account in 
evaluating potential mitigation include:
    (i) A good record of a violator over the preceding five years with 
regard to the type of violation(s) at issue;
    (ii) The violation was due to the action of another party despite 
violator's adherence to the requirements of the FTZ Act and the Board's 
regulations;
    (iii) Immediate remedial action by the violator to avoid future 
violations;
    (iv) A violator's cooperation with the Board (beyond the degree of 
cooperation expected from a person under investigation for a violation) 
in ascertaining the facts establishing the violation;
    (v) A violation's resulting from a clerical error or similar 
unintentional negligence; and
    (vi) Such other factors as the Board, or the Executive Secretary, 
deems appropriate to consider in the specific circumstances presented.
    (f) Assessment of fines. After evaluating submitted mitigating 
evidence and argument, where applicable, the Commerce Department's 
Assistant Secretary for Import Administration may assess an imposed fine 
(in whole or in part). Authority is delegated to the Executive Secretary 
to assess a fine where the total sum of the imposed fines for related 
actions does not exceed 10,000 dollars (50,000 dollars in the case of 
violations pursuant to paragraph (b) of this section).
    (g) Time for payment. Full payment of an assessed fine must be made 
within 30 days of the date of the assessment or within such longer 
period of time as may be specified. Payment shall be made in the manner 
specified by the Commerce Department's Assistant Secretary for Import 
Administration or the Executive Secretary.
    (h) Procedures for instruction to suspend activated status. If a 
fine assessed pursuant to Sec.Sec. 400.62(d) through (g) has not been 
paid within 90 days of the specified deadline for payment, if there is a 
repeated and willful failure to comply with a requirement of the FTZ Act 
or the Board's regulations, or if there is a repeated and willful 
failure to comply with a prohibition or restriction on activity imposed 
by an order of the Board or an order of the Commerce Department's 
Assistant Secretary for Import Administration pursuant toSec. 
400.49(c), the Board or the Commerce Department's Assistant Secretary 
for Import Administration may instruct CBP to suspend the activated 
status of the zone operation(s) in question (or, if appropriate, the 
suspension may be limited to a particular activity of a zone operator, 
such as suspension of the privilege to admit merchandise), and the 
suspension shall remain in place until the failure to pay a fine, 
failure to comply with a requirement of the FTZ Act or the Board's 
regulations, or failure to comply with an order's prohibition or 
restriction on activity has been remedied. In determining whether to 
instruct CBP to suspend the activated status of a zone operation in the 
circumstances noted, the following steps shall be taken:
    (1) Notification of party(ies). The Executive Secretary shall notify 
the responsible party(ies) in writing stating the nature of the failure 
to timely pay a fine, to comply with a requirement of the FTZ Act or the 
Board's regulations or to comply with a prohibition or restriction on 
activity imposed by an order of the Board or an order of the Commerce 
Department's Assistant Secretary for Import Administration. If the 
grantee is not one of the responsible parties notified, the Executive

[[Page 91]]

Secretary shall also provide a copy of the notification to the grantee. 
The responsible party(ies) shall be provided a specified period (of not 
less than 15 days) to respond in writing to the notification;
    (2) Hearing. If the notified responsible party(ies) or the zone's 
grantee requests a hearing (or if a hearing is determined to be 
warranted by the Board, the Commerce Department's Assistant Secretary 
for Import Administration or the Executive Secretary), it shall be held 
before the Executive Secretary (or a member of the Board staff 
designated by the Executive Secretary) within 30 days following the 
request for a hearing (or the determination by the Board, the Commerce 
Department's Assistant Secretary for Import Administration or the 
Executive Secretary). Parties may be represented by counsel at the 
hearing, and any evidence and testimony of witnesses in the proceeding 
shall be presented. A transcript of the hearing shall be produced and a 
copy shall be made available to the parties;
    (3) The Executive Secretary shall make a recommendation on the 
record of the proceeding not earlier than 15 days after the later of:
    (i) The deadline for the party(ies)'s response under paragraph 
(h)(1) of this section; or
    (ii) The date of a hearing held under paragraph (h)(2) of this 
section; and
    (4) The Board or the Commerce Department's Assistant Secretary for 
Import Administration shall determine whether to instruct CBP to suspend 
the activated status of the zone operation(s) in question. If the 
determination is affirmative, the Executive Secretary shall convey the 
instruction to CBP, with due consideration to allow for the transfer of 
any affected merchandise from the applicable zone site(s).
    (i) Enforcement of assessment. Upon any failure to pay an assessed 
fine, the Board may request the U.S. Department of Justice to recover 
the amount assessed in any appropriate district court of the United 
States or may commence any other lawful action.
    (j) Adjustment for inflation. The maximum dollar value of a fine for 
a violation of the FTZ Act or the Board's regulations is subject to 
adjustment for inflation pursuant to the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410), as amended by the 
Debt Collection Improvement Act of 1996 (Pub. L. 104-134).



Sec.  400.63  Appeals to the Board of decisions of the Assistant 
Secretary for Import Administration and the Executive Secretary.

    (a) In general. Decisions of the Commerce Department's Assistant 
Secretary for Import Administration and the Executive Secretary made 
pursuant to this part 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 shall notify the appealing party of its decision in 
writing.

[[Page 93]]



  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 and 69 FR 60546 and 60547, Oct. 12, 2004.

       SUBCHAPTER A--NATIONAL SECURITY INDUSTRIAL BASE REGULATIONS
Part                                                                Page
700             Defense priorities and allocations system...          95
701             Reporting of offsets agreements in sales of 
                    weapon systems or defense-related items 
                    to foreign countries or foreign firms...         120
702-704         [Reserved]

705             Effect of imported articles on the national 
                    security................................         124
706-709         [Reserved]

          SUBCHAPTER B--CHEMICAL WEAPONS CONVENTION REGULATIONS
710             General information and overview of the 
                    Chemical Weapons Convention Regulations 
                    (CWCR)..................................         130
711             General information regarding declaration, 
                    reporting, and advance notification 
                    requirements, and the electronic filing 
                    of declarations and reports.............         137
712             Activities involving Schedule 1 chemicals...         141
713             Activities involving Schedule 2 chemicals...         150
714             Activities involving Schedule 3 chemicals...         160
715             Activities involving Unscheduled Discrete 
                    Organic Chemicals (UDOCs)...............         167
716             Initial and routine inspections of declared 
                    facilities..............................         173
717             CWC clarification procedures (consultations 
                    and challenge inspections)..............         182
718             Confidential business information...........         185
719             Enforcement.................................         188
720             Denial of export privileges.................         197
721             Inspection of records and recordkeeping.....         199
722

Interpretations [Reserved]

[[Page 94]]

723-729         [Reserved]

             SUBCHAPTER C--EXPORT ADMINISTRATION REGULATIONS
730             General information.........................         202
732             Steps for using the EAR.....................         211
734             Scope of the Export Administration 
                    regulations.............................         226
736             General prohibitions........................         243
738             Commerce Control List overview and the 
                    country chart...........................         249
740             License exceptions..........................         260
742             Control policy--CCL based controls..........         313
743             Special reporting...........................         358
744             Control policy: End-user and end-use based..         362
745             Chemical Weapons Convention requirements....         435
746             Embargoes and other special controls........         440
747             Special Iraq reconstruction license.........         449
748             Applications (classification, advisory, and 
                    license) and documentation..............         452
750             Application processing, issuance, and denial         496
752             Special comprehensive license...............         507
754             Short supply controls.......................         523
756             Appeals.....................................         535
758             Export clearance requirements...............         537
760             Restrictive trade practices or boycotts.....         546
762             Recordkeeping...............................         612
764             Enforcement and protective measures.........         617
766             Administrative enforcement proceedings......         628
768             Foreign availability determination 
                    procedures and criteria.................         651
770             Interpretations.............................         661
772             Definitions of terms........................         668
774             The Commerce Control List...................         695
775-780         [Reserved]

              SUBCHAPTER D--ADDITIONAL PROTOCOL REGULATIONS
781             General information and overview of the 
                    additional protocol regulations (APR)...         912
782             General information regarding reporting 
                    requirements and procedures.............         916
783             Civil nuclear fuel cycle-related activities 
                    not involving nuclear materials.........         918
784             Complementary access........................         938
785             Enforcement.................................         945
786             Records and recordkeeping...................         952
787-799         [Reserved]

[[Page 95]]



       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.), Executive Order 12919, 59 FR 29525, 3 CFR, 1994 Comp. 901, and 
Executive Order 13286, 68 FR 10619, 3 CFR, 2003 Comp. 166; 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. 
309; and Executive Order 12656, 53 FR 226, 3 CFR, 1988 Comp. 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),

[[Page 96]]

authorizes the President: to require the priority performance of 
contracts and orders necessary or appropriate to promote the national 
defense over other contracts or orders; to allocate materials, 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(14) of the Defense Production Act provides that this term 
includes ``emergency preparedness activities'' conducted pursuant to 
Title VI of the Stafford Act and ``critical infrastructure protection 
and restoration.''
    (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; 71 FR 39527, July 13, 2006]



                           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 I 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 authorities 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31921, June 11, 1998; 71 FR 39527, July 13, 2006]



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 97]]

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 98]]



                          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 Secretary 
of Homeland Security, 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 99]]

    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; 71 FR 
39528, July 13, 2006]



                     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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31922, June 11, 1998; 71 FR 39528, July 13, 2006]



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, seeSec. 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, seeSec. 
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, 
C2, or N1. 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; 71 FR 39528, July 13, 2006]



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;
    (c) The written signature on a manually placed order, or the digital 
signature or name on an electronically

[[Page 100]]

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 and transmit the acceptance or rejection in writing 
(hard copy), or in electronic format, 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 
also provide the reasons

[[Page 101]]

for the rejection, pursuant to paragraphs (b) and (c) of this section, 
in writing (hard copy) or electronic format.
    (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; 70 FR 10864, Mar. 7, 2005]



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 inSec. 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 inSec. 
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.

[[Page 102]]



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

    (a) The priority rating on a rated order may be changed or cancelled 
by:
    (1) An official action of the Department of Commerce; or
    (2) Written notification from the person who placed the rated order 
(including a Delegate Agency).
    (b) If an unrated order is amended so as to make it a rated order, 
or a DO, rating is changed to a DX rating, the supplier must give the 
appropriate preferential treatment to the order as of the date the 
change is received by the supplier.
    (c) An amendment to a rated order that significantly alters a 
supplier's original production or delivery schedule shall constitute a 
new rated order as of the date of its receipt. The supplier must accept 
or reject the amended order according to the provisions ofSec. 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 bySec. 
700.12, are included on the order with the statement required inSec. 
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

[[Page 103]]

as provided inSec. 700.13 and give preferential treatment only to the 
rated quantities as required by this part. 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 underSec. 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 (seeSec. 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, seeSec. 700.51.]
    (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) Jurisdiction limitations. (1) The priorities and allocations 
authority for certain items have 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) (The Department of Agriculture and the Department of 
Commerce have agreed that the Department of Defense may place rated 
contracts and orders for food resources in support of troops, including 
but not limited to, meals ready to eat (MREs), ``tray-packs'' (T-
rations), A-rations, and B-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); and
    (vi) Communications services (National Communications System under 
Executive Order 12472 of April 3, 1984).

[[Page 104]]

    (2) The jurisdiction of the Department of Commerce and the 
Departments of Energy and Agriculture over certain specific items 
included in the categories listed above has been clarified by 
Interagency Memoranda of Understanding.
    (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; 71 FR 39528, July 13, 2006]



           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 a request to the Department of 
Energy. Further information may be obtained from the U.S. Department of 
Energy, Office of Electricity Delivery and Energy Reliability, 1000 
Independence Avenue, SW., Washington, DC 20585.
    (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.
    (f) Schedule I includes a list of approved programs to support the 
maximization of domestic energy supplies. A Department of Energy 
regulation

[[Page 105]]

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; 73 FR 34, Jan. 2, 2008]



      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 (seeSec. 
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) [Reserved]

[63 FR 31923, June 11, 1998, as amended at 71 FR 39528, July 13, 2006]



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

[[Page 106]]

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 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,

[[Page 107]]

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:
    (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;

[[Page 108]]

    (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, Italy, The Netherlands, Sweden, and the United Kingdom in 
support of approved programs.
    (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.
    (3) Any person in the United States ordering defense items in Canada 
in support of an approved program 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, the supplier or vendor should contact the Canadian 
Public Works and Government Services Canada, for authority to place 
rated orders in the United States: Public Works and Government Services 
Canada, Acquisitions Branch, Business Management Directorate, Phase 3, 
Place du Portage, Level 0A1, 11 Laurier Street, Gatineau, Quebec, K1A 
0S5, Canada; telephone: (819) 956-6825; Fax: (819) 956-7827.
    (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, Acquisitions Branch, Business Management 
Directorate, in accordance with its procedures.
    (5) Persons in Canada needing special priorities assistance in 
obtaining defense items in the United States may apply to the Canadian 
Public Works and Government Services Canada, Acquisitions Branch, 
Business Management Directorate, for such assistance. Public Works and 
Government Services Canada will forward appropriate requests to the U.S. 
Department of 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 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 submit a request for such assistance or rating 
authority to the Office of the Deputy Under Secretary of Defense 
(Industrial Policy): Office of the Deputy Under Secretary of Defense 
(Industrial Policy), 3330 Defense Pentagon, Washington, DC 20301; 
telephone: (703) 697-0051; Fax: (703) 695-4277.
    (i) If the end product is being acquired by a U.S. government 
agency, the request should be submitted to the Office of the Deputy 
Under Secretary of Defense (Industrial Policy) through the U.S. contract 
administration representative.

[[Page 109]]

    (ii) If the end product is being acquired by a foreign nation, the 
request must be sponsored prior to its submission to the Office of the 
Deputy Under Secretary of Defense (Industrial Policy) by the government 
of the foreign nation that will use the end product.
    (2) If the Department of Defense endorses the request, it will be 
forwarded to Commerce for appropriate action.
    (d) Requesting assistance in Italy, The Netherlands, Sweden, and the 
United Kingdom. (1) The U.S. Department of Defense has entered into 
bilateral security of supply arrangements with Italy, The Netherlands, 
Sweden, and the United Kingdom that allow the U.S. Department of Defense 
to request the priority delivery for U.S. Department of Defense 
contracts, subcontracts, and orders from companies in these countries.
    (2) Any person in the United States requiring assistance in 
obtaining the priority delivery of a contract, subcontract, or order in 
Italy, The Netherlands, Sweden, or the United Kingdom to support an 
approved program should contact the Office of the Deputy Under Secretary 
of Defense (Industrial Policy) for assistance. Persons in Italy, The 
Netherlands, Sweden, and the United Kingdom should request assistance in 
accordance withSec. 700.55(c)(1).

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998; 71 FR 39528, July 13, 2006; 71 FR 
54904, Sept. 20, 2006]



                       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 inSec. 700.71(c).

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 71 FR 39528, July 13, 2006]



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, seeSec. 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

[[Page 110]]

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 inSec. 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]



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

[[Page 111]]

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 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 Strategic Industries and Economic Security, 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; 71 FR 
39528, July 13, 2006]



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

[[Page 112]]

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.
    (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, seeSec. 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

[[Page 113]]

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 Export Administration for good cause shown.
    (c) Each appeal must be in writing and contain a complete statement 
of all the facts and circumstances related to the action appealed from 
and a full and precise statement of the reasons the decision should be 
modified or reversed.
    (d) In addition to the written materials submitted in support of an 
appeal, an appellant may request, in writing, 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; 71 FR 39528, July 13, 2006]



                   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 inSec. 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

[[Page 114]]

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 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 Strategic Industries and Economic 
Security, Room 3876, U.S. Department of Commerce, Washington, DC 20230, 
Ref: DPAS; telephone: (202) 482-3634 or fax: (202) 482-5650.

[71 FR 39528, July 13, 2006]



  Sec. 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.

[[Page 115]]

 
    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.
        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.
Homeland security programs:
    N1....................................  Federal emergency         Department of Homeland Security.
                                             preparedness,
                                             mitigation, response,
                                             and recovery.
    N2....................................  State, local, tribal       Do.
                                             government emergency
                                             preparedness,
                                             mitigation, response,
                                             and recovery.
    N3....................................  Intelligence and warning   Do.
                                             systems.
    N4....................................  Border and                 Do.
                                             transportation security.
    N5....................................  Domestic counter-          Do.
                                             terrorism, including
                                             law enforcement.
    N6....................................  Chemical, biological,      Do.
                                             radiological, and
                                             nuclear countermeasures.
    N7....................................  Critical infrastructure    Do.
                                             protection and
                                             restoration.
    N8....................................  Miscellaneous...........   Do.
----------------------------------------------------------------------------------------------------------------
\1\ Department of Defense includes: The Office of the Secretary of Defense, the Military Departments, the Joint
  Staff, the Combatant Commands, the Defense Agencies, the Defense Field Activities, all other organizational
  entities in the Department of Defense, and, for purposes of this regulation, the Central Intelligence Agency
  and the National Aeronautics and Space Administration as Associated Agencies.


[63 FR 31925, June 11, 1998, as amended at 71 FR 39529, July 13, 2006; 
72 FR 3944, Jan. 29, 2007]

[[Page 116]]



     Sec. Appendix I to Part 700--Form BIS-999--Request for Special 
                          Priorities Assistance
[GRAPHIC] [TIFF OMITTED] TR13JY06.000


[[Page 117]]


[GRAPHIC] [TIFF OMITTED] TR13JY06.001


[[Page 118]]


[GRAPHIC] [TIFF OMITTED] TR13JY06.002


[[Page 119]]


[GRAPHIC] [TIFF OMITTED] TR13JY06.003


[71 FR 39529, July 13, 2006]

[[Page 120]]



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.
701.6 Violations, penalties, and remedies.

    Authority: 50 U.S.C. App. 2099 and Executive Order 12919, 59 FR 
29525, 3 CFR, 1994 Comp. 901 and Executive Order 13286, 68 FR 10619, 3 
CFR, 2003 Comp. 166.

    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 are submitted annually to 
Congress pursuant to Section 309 of the Defense Production Act of 1950, 
as amended.

[59 FR 61796, Dec. 2, 1994, as amended at 74 FR 68140, Dec. 23, 2009]



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 are categorized as co-
production, technology transfer, subcontracting, credit assistance, 
training, licensed production, investment, purchases and other. 
Paragraphs (f)(1) through (f)(8) of this section provide examples of the 
categories of offset transactions.
    (1) Example 1. Company A, a U.S. firm, contracts for Company B, a 
foreign firm located in country C, to produce a component of a U.S.-
origin defense article subject to an offset agreement between Company A 
and country C. The defense article will be sold to country C pursuant to 
a Foreign Military Sale and the production role of Company B is 
described in the Letter of Offer and Acceptance associated with that 
sale and a government-to-government co-production memorandum of 
understanding. This transaction would be categorized as co-production 
and would, like all co-production transactions, be direct.
    (2) Example 2. Company A, a U.S. firm, transfers technology to 
Company B, a foreign firm located in country C, which allows Company B 
to conduct research and development directly related to a defense 
article that is subject to an offset agreement between Company A and 
country C. This transaction would be categorized as technology transfer 
and would be direct because the research and development is

[[Page 121]]

directly related to an item subject to the offset agreement.
    (3) Example 3. Company A, a U.S. firm, contracts for Company B, a 
foreign firm located in country C, to produce a component of a U.S.-
origin defense article subject to an offset agreement between Company A 
and country C. The contract with Company B is for a direct commercial 
sale and Company A does not license Company B to use any technology. The 
transaction would be categorized as subcontracting and would, like all 
subcontracting transactions, be direct.
    (4) Example 4. Company A, a U.S. firm, makes arrangements for a line 
of credit at a financial institution for Company B, a foreign firm 
located in country C, so that Company B can produce an item that is not 
subject to the offset agreement between Company A and country C. The 
transaction would be categorized as credit assistance and would be 
indirect because the credit assistance is unrelated to an item covered 
by the offset agreement.
    (5) Example 5. Company A, a U.S. firm, arranges for training of 
personnel from Company B, a foreign firm located in country C. The 
training is related to the production and maintenance of a U.S.-origin 
defense article that is subject to an offset agreement between Company A 
and country C. The transaction would be categorized as training and 
would be direct because the training is directly related to the 
production and maintenance of an item covered by the offset agreement.
    (6) Example 6. Company A, a U.S. firm, contracts for Company B, a 
foreign firm located in country C, to produce a component of a U.S.-
origin defense article that is subject to an offset agreement between 
Company A and country C. The contract with Company B is a Foreign 
Military Sale and Company A licenses Company B to use Company A's 
production technology to produce the component. There is no co-
production agreement between the United States and country C. The 
transaction would be categorized as licensed production and would be 
direct because it involves the item covered by the offset agreement.
    (7) Example 7. Company A, a U.S. firm, makes an investment in 
Company B, a foreign firm located in country C, so that Company B can 
create a new production line to produce a component of a defense article 
that is subject to an offset agreement between Company A and country C. 
The transaction would be categorized as investment and would be direct 
because the investment involves an item covered by the offset agreement.
    (8) Example 8. Company A, a U.S. firm, purchases various off-the-
shelf items from Company B, a foreign firm located in country C, but 
none of these items will be used by Company A to produce the defense 
article subject to the offset agreement between Company A and country C. 
The transaction would be categorized as purchases and would, like all 
purchase transactions, be indirect.
    (g) Direct Offset--an offset transaction directly related to the 
article(s) or service(s) exported or to be exported pursuant to the 
military export sales agreement. See the examples illustrating offset 
transactions of this type in Sec.Sec. 701.2(f)(1), 701.2(f)(2), 
701.2(f)(3), 701.2(f)(5), 701.2(f)(6) and 701.2(f)(7) of this part.
    (h) Indirect Offset--an offset transaction unrelated to the 
article(s) or service(s) exported or to be exported pursuant to the 
military export sales agreement. See the examples illustrating offset 
transactions of this type in Sec.Sec. 701.2(f)(4) and 701.2(f)(8) of 
this part.

[59 FR 61796, Dec. 2, 1994, as amended at 74 FR 68140, Dec. 23, 2009]



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.

[[Page 122]]



Sec.  701.4  Procedures.

    (a) Reporting period. The Department of Commerce publishes a notice 
in the Federal Register annually reminding the public that U.S. firms 
are required to report annually on contracts for the sale of defense-
related items or defense-related services to foreign governments or 
foreign firms that are subject to offset agreements exceeding $5,000,000 
in value. U.S. firms are also required to report annually on offset 
transactions completed in performance of existing offset commitments for 
which offset credit of $250,000 or more has been claimed from the 
foreign representative. Such reports must be submitted to the Department 
of Commerce no later than June 15 of each year and must contain offset 
agreement and transaction data for the previous calendar year.
    (b) Reporting instructions. (1) U.S. firms must only report on 
offset agreements they have entered into with a foreign customer. U.S. 
firms must report offset transactions that they are directly responsible 
for reporting to the foreign customer, regardless of who performs the 
transaction (i.e., prime contractors must report for their 
subcontractors if the subcontractors are not a direct party to the 
offset agreement).
    (2) Reports must be submitted in hardcopy to the Offset Program 
Manager, U.S. Department of Commerce, Bureau of Industry and Security, 
Room 3876, 14th Street and Constitution Avenue, NW., Washington, DC 
20230, and as an e-mail attachment to [email protected]. E-mail 
attachments must include the information in a computerized spreadsheet 
or database format. If unable to submit a report in computerized format, 
companies should contact the Offset Program Manager for guidance. All 
submissions must include a point of contact (name and telephone number) 
and must be submitted by a company official authorized to provide such 
information.
    (c) Reports must include the information described below. Any 
necessary comments or explanations relating to the information shall be 
footnoted and supplied on separate sheets attached to the reports.
    (1) Reporting on offset agreements. U.S. firms shall provide an 
itemized list of new offset agreements entered into during the reporting 
period, including the information about each such agreement described in 
paragraphs (c)(1)(i) through (c)(1)(ix) of this section.
    (i) Name of foreign country. Identify the country of the foreign 
entity involved in the military export sale associated with the offset 
agreement.
    (ii) Description of the military export sale. Provide a name and 
description of the defense article and/or defense service referenced in 
the military export sale, as well as the date (month and year) that the 
related offset agreement was signed.
    (iii) Military export sale classification. Identify the six-digit 
North American Industry Classification System (``NAICS'') code(s) 
associated with the military export sale. Refer to U.S. Census Bureau's 
U.S. NAICS Manual for a listing of applicable NAICS codes (http://
www.census.gov/epcd/www/naics.html). Paragraphs (c)(1)(iii)(A) through 
(c)(1)(iii)(E) of this section provide examples that illustrate how to 
select the appropriate NAICS code(s).
    (A) Example 1. Company A enters into an offset agreement associated 
with the sale of 24 fighter aircraft and guided missiles to country B. 
Fighter aircraft manufacturing is classified in the NAICS as NAICS 
336411, Aircraft Manufacturing. Guided missiles are classified in the 
NAICS as NAICS 336414, Guided Missile and Space Vehicle Manufacturing. 
This military export sale should be classified under NAICS 336411 and 
NAICS 336414.
    (B) Example 2. Company B enters into an offset agreement associated 
with the sale of a navigation system for a fleet of military aircraft to 
country C. Navigation system manufacturing is classified in the NAICS as 
NAICS 334511, Search, Detection, Navigation, Guidance, Aeronautical, and 
Nautical System and Instrument Manufacturing. This military export sale 
should be classified under NAICS 334511.
    (C) Example 3. Company C enters into an offset agreement associated 
with the sale of radio communication equipment to country D. Radio 
communication equipment is classified in the

[[Page 123]]

NAICS as NAICS 334220, Radio and Television Broadcasting and Wireless 
Communication Equipment Manufacturing. This military export sale should 
be classified under NAICS 334220.
    (D) Example 4. Company D enters into an offset agreement associated 
with the sale of 30 aircraft engines to country E. Aircraft engines are 
classified in the NAICS as NAICS 336412, Aircraft Engine and Engine 
Parts Manufacturing. This military export sale should be classified 
under NAICS 336412.
    (E) Example 5. Company E enters into an offset agreement associated 
with the sale of armored vehicles to country F. Armored vehicles are 
classified in the NAICS as NAICS 336992, Military Armored Vehicle, Tank, 
and Tank Component Manufacturing. This military export sale should be 
classified under NAICS 336992.
    (iv) Foreign party to offset agreement. Identify the foreign 
government agency or branch that is the signatory to the offset 
agreement.
    (v) Military export sale value. Provide the U.S. dollar value of the 
military export sale. Should the military export sale involve more than 
one NAICS code, please separately list the values associated with each 
NAICS code.
    (vi) Offset agreement value. Provide the U.S. dollar value of the 
offset agreement.
    (vii) Offset agreement term. Identify the term of the offset 
agreement in months.
    (viii) Offset agreement performance measures. Identify each category 
that describes the offset agreement's performance measures: best 
efforts, accomplishment of obligation, or other (please describe).
    (ix) Offset agreement penalties for non-performance. Identify each 
category that describes the offset agreement's penalties for non-
performance. For example, the agreement may include penalties such as 
liquidated damages, debarment from future contracts, added offset 
requirements, fees, commissions, bank credit guarantees, or other 
(please describe).
    (2) Reporting on offset transactions. U.S. firms shall provide an 
itemized list of offset transactions completed during the reporting 
period, including the elements listed in paragraphs (c)(2)(i) through 
(c)(2)(x) of this section for each such transaction (numerical estimates 
are acceptable when actual figures are unavailable; estimated figures 
shall be followed by the letter ``E'').
    (i) Name of foreign country. Identify the country of the foreign 
entity involved in the military export sale associated with the offset 
transaction.
    (ii) Description of the military export sale. Provide a name and 
description of the defense article and/or defense service referenced in 
the military export sale associated with the offset transaction, as well 
as the date the offset agreement was signed (month and year).
    (iii) Offset transaction category. Identify each category that 
describes the offset transaction as co-production, technology transfer, 
subcontracting, training, licensing of production, investment, 
purchasing, credit assistance or other (please describe).
    (iv) Offset transaction classification. Identify the six-digit NAICS 
code(s) associated with the offset transaction. Refer to U.S. Census 
Bureau's U.S. NAICS Manual for a listing of applicable NAICS codes 
(http://www.census.gov/epcd/www/naics.html). Paragraphs (c)(2)(iv)(A) 
through (c)(2)(iv)(E) of this section provide examples that illustrate 
how to select the appropriate NAICS code in the instances described 
therein.
    (A) Example 1. Company A completes an offset transaction by co-
producing aircraft engines in country B. Aircraft engine manufacturing 
is classified in the NAICS as NAICS 336412, Aircraft Engine and Engine 
Parts Manufacturing. This offset transaction should be classified under 
NAICS 336412.
    (B) Example 2. Company B completes an offset transaction by 
licensing the production of automotive electrical switches in country C. 
Company B also assists in structuring a wholesale distribution network 
for these products. Automotive electrical switch manufacturing is 
classified in the NAICS as NAICS 335931, Current Carrying Wiring Device 
Manufacturing, and the wholesale distribution network is classified in 
the NAICS as NAICS 423120, Motor

[[Page 124]]

Vehicle Supplies and New Parts Merchant Wholesalers. This offset 
transaction should be classified under NAICS 335931 and NAICS 423120.
    (C) Example 3. Company C completes an offset transaction by 
transferring technology to establish a biotechnology research center in 
country D. Biotechnology research and development is classified in the 
NAICS as NAICS 541711, Research and Development in Biotechnology. This 
offset transaction should be classified under NAICS 541711.
    (D) Example 4. Company D completes an offset transaction by 
purchasing steel forgings from a steel mill in country E. Steel forgings 
are classified in the NAICS as NAICS 331111, Iron and Steel Mills. This 
offset transaction should be classified under NAICS 331111.
    (E) Example 5. Company E completes an offset transaction by 
providing training assistance services in country F to certain plant 
managers. Training assistance is classified in the NAICS as NAICS 
611430, Professional and Management Development Training. This offset 
transaction should be classified under NAICS 611430.
    (v) Offset transaction type. Identify the offset transaction as a 
direct offset transaction, an indirect offset transaction, or a 
combination of both.
    (vi) Name of offset performing entity. Identify, by name, the entity 
performing the offset transaction on behalf of the U.S. entity that 
entered into the offset agreement.
    (vii) Name of offset receiving entity. Identify the foreign entity 
receiving benefits from the offset transaction.
    (viii) Actual offset value. Provide the U.S. dollar value of the 
offset transaction without taking into account multipliers or intangible 
factors. Should the offset transaction involve more than one NAICS code, 
please list the U.S. dollar values associated with each NAICS code.
    (ix) Offset credit value. Provide the U.S. dollar value credits 
claimed by the offset performing entity, including any multipliers or 
intangible factors.
    (x) Offset transaction performance location. Name the country where 
each offset transaction was fulfilled, such as the purchasing country, 
the United States, or a third country.

[74 FR 68141, Dec. 23, 2009]



Sec.  701.5  Confidentiality.

    (a) As provided bySec. 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 inSec. 701.1.



Sec.  701.6  Violations, penalties, and remedies.

    (a) Willful violation of the Defense Production Act may result in 
punishment 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.
    (b) The Government may 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 and this 
regulation.

[74 FR 68141, Dec. 23, 2009]

                        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.

[[Page 125]]

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 
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 Technology Evaluation, Room H-1093, 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 toSec. 705.10 of 
this part, any

[[Page 126]]

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; 72 FR 
25195, May 4, 2007]



Sec.  705.6  Confidential information.

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

[[Page 127]]



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 toSec. 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 inSec. 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 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;

[[Page 128]]

    (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 inSec. 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 underSec. 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
    (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

[[Page 129]]

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 130]]



          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, the International 
          Traffic in Arms Regulations, and the Alcohol, Tobacco, 
          Firearms, and Explosives 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
Supplement No. 2 to Part 710--Definitions of Production

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, 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 729 of this subchapter, unless otherwise noted):
    Act (The). Means the Chemical Weapons Convention Implementation Act 
of 1998 (22 U.S.C. 6701 et seq.).
    Advance Notification. Means a notice informing BIS of a company's 
intention to export to or import from a State Party a Schedule 1 
chemical. This advance notification must be submitted to BIS at least 45 
days prior to the date of export or import (except for transfers of 5 
milligrams or less of saxitoxin for medical/diagnostic purposes, which 
must be submitted to BIS at least 3 days prior to export or import). BIS 
will inform the company in writing of the earliest date the shipment may 
occur under the advance notification procedure. This advance 
notification requirement is imposed in addition to any export license 
requirements under the Department of Commerce's Export Administration 
Regulations (15 CFR parts 730 through 774) or the Department of State's 
International Traffic in Arms Regulations (22 CFR parts 120 through 130) 
or any import license requirements under the Department of Justice's 
Bureau of Alcohol, Tobacco, Firearms and Explosives Regulations (27 CFR 
part 447).
    Bureau of Industry and Security (BIS). Means the Bureau of Industry 
and Security of the United States Department of Commerce, including 
Export Administration and Export Enforcement.
    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) Toxic chemicals and their 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) Munitions and devices, 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 munitions and devices;
    (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.

[[Page 131]]

    Chemical Weapons Convention Regulations (CWCR). Means the 
regulations contained in 15 CFR parts 710 through 729.
    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 to be 
submitted 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. See also related 
definitions of declared facility, undeclared facility and report.
    Declared facility or plant site. Means a facility or plant site that 
submits declarations of activities involving Schedule 1, Schedule 2, 
Schedule 3, 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. (Also see the definition for unscheduled 
discrete organic chemical.)
    Domestic transfer. Means, with regard to declaration requirements 
for Schedule 1 chemicals under the CWCR, any movement of any amount of a 
Schedule 1 chemical outside the geographical boundary of a facility in 
the United States to another destination in the United States, for any 
purpose. Also means, with regard to declaration requirements for 
Schedule 2 and Schedule 3 chemicals under the CWCR, movement of a 
Schedule 2 or Schedule 3 chemical in quantities and concentrations 
greater than specified thresholds, 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. (Also see definition of United States.)
    EAR. Means the Export Administration Regulations (15 CFR parts 730 
through 774).
    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 the CWCR 
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 the 
CWCR 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 Notification. Means a written announcement to a plant 
site by the United States National Authority

[[Page 132]]

(USNA) or the BIS Host Team of an impending inspection under the 
Convention.
    Inspection Site. Means any facility or area at which an inspection 
is carried out and which is specifically defined in the respective 
facility agreement or inspection request or mandate or inspection 
request as expanded by the alternative or final perimeter.
    Inspection Team. Means the group of inspectors and inspection 
assistants assigned by the Director-General of the Technical Secretariat 
to conduct a particular inspection.
    Intermediate. Means a chemical formed through chemical reaction that 
is subsequently reacted to form another chemical.
    ITAR. Means the International Traffic in Arms Regulations (22 CFR 
parts 120-130).
    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;
    (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, including biochemical or biologically mediated reaction (see 
Supplement No. 2 to this part).
    (1) Production of Schedule 1 chemicals means formation through 
chemical synthesis as well as processing to extract and isolate Schedule 
1 chemicals.
    (2) Production of a Schedule 2 or Schedule 3 chemical means all 
steps in the production of a chemical in any units within the same plant 
through chemical reaction, including any associated processes (e.g., 
purification, separation, extraction, distillation, or refining) in 
which the chemical is not converted into another chemical. The exact 
nature of any associated process (e.g., purification, etc.) is not 
required to be declared.
    Production by synthesis. Means production of a chemical from its 
reactants.
    Protective purposes in relation to Schedule 1 chemicals. Means any 
purpose directly related to protection against toxic chemicals and to 
protection against chemical weapons. Further means the Schedule 1 
chemical is used for determining the adequacy of defense equipment and 
measures.
    Purposes not prohibited by the CWC. Means the following:

[[Page 133]]

    (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 of the CWCR (see the 
definition of ``report'' inSec. 719.1(b) of the CWCR).
    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 the CWCR.
    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.
    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 the CWCR.
    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. 
Such persons must be the principal party in interest of the exports or 
imports and may not delegate CWC reporting responsibilities to a 
forwarding or other agent.
    Transfer. See domestic transfer.
    Transient intermediate. Means any chemical which is produced in a 
chemical process but, because it is in a transition state in terms of 
thermodynamics and kinetics, exists only for a very short period of 
time, and cannot be isolated, even by modifying or dismantling the 
plant, or altering process operating conditions, or by stopping the 
process altogether.
    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

[[Page 134]]

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 the CWCR).
    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 the CWCR) and subject 
to the declaration requirements of part 715 of the CWCR. Unscheduled 
discrete organic chemicals subject to declaration under the CWCR 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.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78182, Dec. 22, 2008]



Sec.  710.2  Scope of the CWCR.

    The Chemical Weapons Convention Regulations (parts 710 through 729 
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 apply 
to all persons and facilities located in the United States, except the 
following U.S. Government facilities:
    (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 the CWCR, ``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'' do not 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 activities subject to the 
CWCR (parts 710 through 729 of this subchapter) are activities, 
including production, processing, consumption, exports and imports, 
involving chemicals further described in parts 712 through 715 of the 
CWCR. These do not include activities involving inorganic chemicals 
other than those listed in the Schedules of Chemicals, or other 
specifically exempted unscheduled discrete organic chemicals.



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

[[Page 135]]

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 729 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 the CWCR. 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 the CWCR.



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 729 of this subchapter). 
These examples are not exhaustive, and you should refer to parts 712 
through 715 of the CWCR to determine your obligations.
    (a) Schedule 1 chemicals are listed in Supplement No. 1 to part 712 
of the CWCR. Schedule 1 chemicals have little or no use in industrial 
and agricultural industries, but may have limited use for research, 
pharmaceutical, medical, public health, or protective purposes.
    (b) Schedule 2 chemicals are listed in Supplement No. 1 to part 713 
of the CWCR. 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 the CWCR. 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.

[[Page 136]]



Sec.  710.5  Authority.

    The CWCR (parts 710 through 729 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, the International
Traffic in Arms Regulations, and the Alcohol, Tobacco, Firearms 
and Explosives Regulations.

    Certain obligations of the U.S. Government under the CWC pertain to 
exports and imports. The obligations on exports are implemented in the 
Export Administration Regulations (EAR) (15 CFR parts 730 through 774) 
and the International Traffic in Arms Regulations (ITAR) (22 CFR parts 
120 through 130). See in particular Sec.Sec. 742.2 and 742.18 and part 
745 of the EAR, and Export Control Classification Numbers 1C350, 1C351, 
1C355 and 1C395 of the Commerce Control List (supplement no. 1 to part 
774 of the EAR). The obligations on imports are implemented in the 
Chemical Weapons Convention Regulations (Sec.Sec. 712.2 and 713.1) and 
the Alcohol, Tobacco, Firearms and Explosives Regulations in 27 CFR part 
447.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78182, Dec. 22, 2008]



 Sec. 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 20, 2008

Afghanistan
Albania
Algeria
Andorra
Antigua and Barbuda
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belgium
Belize
Benin
Bhutan
Bolivia
Bosnia-Herzegovina
Botswana
Brazil
Brunei Darussalam*
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
China***
Colombia
Comoros
Congo (Republic of the)
Cook Islands**
Costa Rica
Cote d'Ivoire (Ivory Coast)
Croatia
Cuba
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Ecuador
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Fiji
Finland
France
Gabon
Gambia
Georgia
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Holy See*
Honduras
Hungary
Iceland
India
Indonesia
Iran (Islamic Republic of)
Ireland
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Kiribati
Korea (Republic of)
Kuwait
Kyrgyzstan
Laos (P.D.R.)*
Latvia
Lebanon
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Luxembourg
Macedonia (The Former Yugoslav Republic of)
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Mauritania
Mauritius
Mexico

[[Page 137]]


Micronesia (Federated States of)
Moldova (Republic of)*
Monaco
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nauru
Nepal
Netherlands***
New Zealand
Nicaragua
Niger
Nigeria
Niue**
Norway
Oman
Pakistan
Palau
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Rwanda
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
San Marino
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovak Republic*
Slovenia
Solomon Islands
South Africa
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Tajikistan
Tanzania, United Republic of
Thailand
Timor Leste (East Timor)
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Yemen
Zambia
Zimbabwe

    * For export control purposes, these destinations are identified 
using a different nomenclature under the Commerce Country Chart in 
Supplement No. 1 to part 738 of the Export Administration Regulations 
(EAR) (15 CFR parts 730 through 774).
    ** For export control purposes, Cook Islands and Niue are not 
identified on the Commerce Country Chart in Supplement No. 1 to part 738 
of the EAR and are treated the same as New Zealand, in accordance with 
Sec.  738.3(b) of the EAR.
    *** For CWC States Parties purposes, a territory, possession, or 
department of any country that is listed in this Supplement as a State 
Party to the CWC, is treated the same as the country of which it is a 
territory, possession, or department (e.g., China includes Hong Kong and 
Macau; the Netherlands includes Aruba and the Netherlands Antilles).

[71 FR 24929, Apr. 27, 2006, as amended at 72 FR 14408, Mar. 28, 2007; 
73 FR 78182, Dec. 22, 2008]

         Supplement No. 2 to Part 710--Definitions of Production

----------------------------------------------------------------------------------------------------------------
                                                                                Unscheduled discrete organic
        Schedule 1 chemicals           Schedule 2 and Schedule 3 chemicals            chemicals (UDOCs)
----------------------------------------------------------------------------------------------------------------
        Produced by a biochemical or biologically mediated reaction         Produced by synthesis*
----------------------------------------------------------------------------------------------------------------
Formation through chemical            All production steps in any units
 synthesis.                            within the same plant which
Processing to extract and isolate      includes associated processes--
 Schedule 1 chemicals.                 purification, separation,
                                       extraction distillation or
                                       refining.**
----------------------------------------------------------------------------------------------------------------
* Intermediates used in a single or multi-step process to produce another declared UDOC are not declarable.
** Intermediates are subject to declaration, except ``transient intermediates,'' which are those chemicals in a
  transition state in terms of thermodynamics and kinetics, that exist only for a very short period of time, and
  cannot be isolated, even by modifying or dismantling the plant, or by altering process operating conditions,
  or by stopping the process altogether are not subject to declaration.



PART 711_GENERAL INFORMATION REGARDING DECLARATION, REPORTING, AND 
ADVANCE NOTIFICATION REQUIREMENTS, AND THE ELECTRONIC FILING OF 
DECLARATIONS AND REPORTS

Sec.
711.1 Overviews of declaration, reporting, and advance notification 
          requirements.
711.2 Who submits declarations, reports and advance notifications?
711.3 Compliance review.
711.4 Assistance in determining your obligations.
711.5 Numerical precision of submitted data.
711.6 Where to obtain forms.
711.7 Where to submit declarations, reports and advance notifications.
711.8 How to request authorization from BIS to make electronic 
          submissions of declarations or reports.


[[Page 138]]


    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.



Sec.  711.1  Overviews of declaration, reporting, and advance
notification requirements.

    Parts 712 through 715 of the CWCR (parts 710 through 729 of this 
subchapter) describe the declaration, advance notification and reporting 
requirements for Schedule 1, 2 and 3 chemicals and for unscheduled 
discrete organic chemicals (UDOCs). For each type of chemical, the 
Convention requires annual declarations. If, after reviewing parts 712 
through 715 of the CWCR, you determine that you have declaration, 
advance notification or reporting requirements, you may obtain the 
appropriate forms by contacting the Bureau of Industry and Security 
(BIS) (seeSec. 711.6 of the CWCR).



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

    The owner, operator, or senior management official of a facility 
subject to declaration, reporting, or advance notification requirements 
under the CWCR (parts 710 through 729 of this subchapter) is responsible 
for the submission of all required documents in accordance with all 
applicable provisions of the CWCR.



Sec.  711.3  Compliance review.

    Periodically, BIS will request information from persons and 
facilities subject to the CWCR to determine compliance with the 
reporting, declaration and notification requirements set forth herein. 
Information requested may relate to the production, processing, 
consumption, export, import, or other activities involving scheduled 
chemicals and unscheduled discrete organic chemicals described in parts 
712 through 715 of the CWCR. Any person or facility subject to the CWCR 
and receiving such a request for information will be required to provide 
a response to BIS within 30 working days of receipt of the request. This 
requirement does not, in itself, impose a requirement to create new 
records or maintain existing records in a manner other than that 
directed by the recordkeeping provisions set forth in part 721 of the 
CWCR.



Sec.  711.4  Assistance in determining your obligations.

    (a) Determining if your chemical is subject to declaration, 
reporting or advance 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 must be sent via facsimile to (202) 
482-1731, e-mailed to [email protected], or mailed to the Treaty 
Compliance Division, Bureau of Industry and Security, U.S. Department of 
Commerce, Room 4515, 14th Street and Pennsylvania Avenue, NW., 
Washington, DC 20230, and must be marked ``Attn: Chemical 
Determination.'' 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 the CWCR 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. BIS will provide 
a written response to your chemical determination request within 10 
working days of receipt of the request.
    (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 facsimile number of contact;
    (v) E-mail address of contact, if you want an acknowledgment of 
receipt sent via e-mail;

[[Page 139]]

    (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 the CWCR or need assistance with declaration, forms, 
reporting, advance notification, inspection or facility agreement 
issues, contact BIS's Treaty Compliance Division by phone at (202) 482-
1001. If 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 facsimile included in paragraph (a) of this 
section, or e-mail the request to [email protected]. Your request must 
be marked, ``ATTN: CWCR Assistance.''

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78182, Dec. 22, 2008]



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 the CWCR) 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.

    (a) Forms to complete declarations and reports required by the CWCR 
may be obtained by contacting: Treaty Compliance Division, Bureau of 
Industry and Security, U.S. Department of Commerce, Room 4515, 14th 
Street and Pennsylvania Avenue, NW., Washington, DC 20230, Telephone: 
(202) 482-1001. Forms and forms software may also be downloaded from the 
Internet at www.cwc.gov.
    (b) If the amount of information you are required to submit is 
greater than the given form will allow, multiple copies of forms may be 
submitted.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78182, Dec. 22, 2008]



Sec.  711.7  Where to submit declarations, reports and advance
notifications.

    Declarations, reports and advance notifications required by the CWCR 
must be sent either by fax to (202) 482-1731 or by mail or courier 
delivery to the following address: Treaty Compliance Division, Bureau of 
Industry and Security, U.S. Department of Commerce, Room 4515, 14th 
Street and Pennsylvania Avenue, NW., Washington, DC 20230, Telephone: 
(202) 482-1001. Specific types of declarations and reports and due dates 
are outlined in Supplement No. 2 to parts 712 through 715 of the CWCR.

[73 FR 78182, Dec. 22, 2008]



Sec.  711.8  How to request authorization from BIS to make electronic
submissions of declarations or reports.

    (a) Scope. This section provides an optional method of submitting 
declarations or reports. Specifically, this section applies to the 
electronic submission of declarations and reports required under the 
CWCR. If you choose to submit declarations and reports by electronic 
means, all such electronic submissions must be made through the Web-Data 
Entry System for Industry (Web-DESI), which can be accessed on the CWC 
web site at www.cwc.gov.
    (b) Authorization. If you or your company has a facility, plant 
site, or trading company that has been assigned a U.S. Code Number (USC 
Number), you may submit declarations and reports electronically, once 
you have received authorization from BIS to do so. An authorization to 
submit declarations and reports electronically may be limited or 
withdrawn by BIS at any time. There are no prerequisites for obtaining 
permission to submit electronically, nor are there any limitations with 
regard to the types of declarations or reports that are eligible for 
electronic submission. However, BIS may direct, for any reason, that any 
electronic declaration or report be resubmitted in writing, either in 
whole or in part.
    (1) Requesting approval to submit declarations and reports 
electronically. To submit declarations and reports electronically, you 
or your company must submit a written request to BIS at the address 
identified inSec. 711.6 of the

[[Page 140]]

CWCR. Both the envelope and letter must be marked, ``ATTN: Electronic 
Declaration or Report Request.'' Your request should be on company 
letterhead and must contain your name or the company's name, your 
mailing address at the company, the name of the facility, plant site or 
trading company and its U.S. Code Number, the address of the facility, 
plant site or trading company (this address may be different from the 
mailing address), the list of persons who are authorized to view, edit, 
and/or submit declarations and reports on behalf of your company, and 
the telephone number and name and title of the owner, operator, or 
senior management official responsible for certifying that each person 
listed in the request is authorized to view, edit, and/or submit 
declarations and reports on behalf of you or your company (i.e., the 
certifying official). Additional information required for submitting 
electronic declarations and reports may be found on BIS's Web site at 
www.cwc.gov. Once you have completed and submitted the necessary 
certifications, BIS will review your request for authorization to view, 
edit, and/or submit declarations and reports electronically. BIS will 
notify you if additional information is required and/or upon completion 
of its review.

    Note toSec. 711.8(b)(1): You must submit a separate request for 
each facility, plant site or trading company owned by your company 
(e.g., each site that is assigned a unique U.S. Code Number).

    (2) Assignment and use of passwords for facilities, plant sites and 
trading companies (USC password) and Web-DESI user accounts (user name 
and password). (i) Each person, facility, plant site or trading company 
authorized to submit declarations and reports electronically will be 
assigned a password (USC password) that must be used in conjunction with 
the U.S.C. Number. Each person authorized by BIS to view, edit, and/or 
submit declarations and reports electronically for a facility, plant 
site or trading company will be assigned a Web-DESI user account (user 
name and password) telephonically by BIS. A Web-DESI user account will 
be assigned to you only if your company has certified to BIS that you 
are authorized to act for it in viewing, editing, and/or submitting 
electronic declarations and reports under the CWCR.

    Note toSec. 711.8(b)(2)(i): When persons must have access to 
multiple Web-DESI accounts, their companies must identify such persons 
on the approval request for each of these Web-DESI accounts. BIS will 
coordinate with such persons to ensure that the assigned user name and 
password is the same for each account.

    (ii) Your company may reveal the facility, plant site or trading 
company password (USC password) only to Web-DESI users with valid 
passwords, their supervisors, and employees or agents of the company 
with a commercial justification for knowing the password.
    (iii) If you are an authorized Web-DESI account user, you may not:
    (A) Disclose your user name or password to anyone;
    (B) Record your user name or password, either in writing or 
electronically;
    (C) Authorize another person to use your user name or password; or
    (D) Use your user name or password following termination, either by 
BIS or by your company, of your authorization or approval for Web-DESI 
use.
    (iv) To prevent misuse of the Web-DESI account:
    (A) If Web-DESI user account information (i.e., user name and 
password) is lost, stolen or otherwise compromised, the company and the 
user must report the loss, theft or compromise of the user account 
information, immediately, by calling BIS at (202) 482-1001. Within two 
business days of making the report, the company and the user must submit 
written confirmation to BIS at the address provided inSec. 711.6 of 
the CWCR.
    (B) Your company is responsible for immediately notifying BIS 
whenever a Web-DESI user leaves the employ of the company or otherwise 
ceases to be authorized by the company to submit declarations and 
reports electronically on its behalf.
    (v) No person may use, copy, appropriate or otherwise compromise a 
Web-DESI account user name or password assigned to another person. No 
person, except a person authorized access by the company, may use or 
copy the facility, plant site or trading company password (USC 
password), nor may any

[[Page 141]]

person steal or otherwise compromise this password.
    (c) Electronic submission of declarations and reports--(1) General 
instructions. Upon submission of the required certifications and 
approval of the company's request to use electronic submission, BIS will 
provide instructions on both the method for transmitting declarations 
and reports electronically and the process for submitting required 
supporting documents, if any. These instructions may be modified by BIS 
from time to time.
    (2) Declarations and reports. The electronic submission of a 
declaration or report will constitute an official document as required 
under parts 712 through 715 of the CWCR. Such submissions must provide 
the same information as written declarations and reports and are subject 
to the recordkeeping provisions of part 720 of the CWCR. The company and 
Web-DESI user submitting the declaration or report will be deemed to 
have made all representations and certifications as if the submission 
were made in writing by the company and signed by the certifying 
official. Electronic submission of a declaration or report will be 
considered complete upon transmittal to BIS.
    (d) Updating. A company approved for electronic submission of 
declarations or reports under Web-DESI must promptly notify BIS of any 
change in its name, ownership or address. If your company wishes to have 
a person added as a Web-DESI user, your company must inform BIS and 
follow the instructions provided by BIS. Your company should conduct 
periodic reviews to ensure that the company's designated certifying 
official and Web-DESI users are persons whose current responsibilities 
make it necessary and appropriate that they act for the company in 
either capacity.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78182, Dec. 22, 2008]



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 Restrictions on activities involving Schedule 1 chemicals.
712.3 Initial declaration requirements for declared facilities which are 
          engaged in the production of Schedule 1 chemicals for purposes 
          not prohibited by the CWC.
712.4 New Schedule 1 production facility.
712.5 Annual declaration requirements for facilities engaged in the 
          production of Schedule 1 chemicals for purposes not prohibited 
          by the CWC.
712.6 Advance notification and annual report of all exports and imports 
          of Schedule 1 chemicals to, or from, other States Parties.
712.7 Amended declaration or report.
712.8 Declarations and reports returned without action by BIS.
712.9 Deadlines for submission of Schedule 1 declarations, reports, 
          advance notifications, and amendments.

Supplement No. 1 to Part 712--Schedule 1 Chemicals
Supplement No. 2 to Part 712--Deadlines for Submission of Schedule 1 
          Declarations, Reports, Advance Notifications, Reports, and 
          Amendments

    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, 3 CFR 1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.



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

    Facilities that produce, export or import mixtures containing less 
than 0.5% aggregate quantities of Schedule 1 chemicals (see Supplement 
No. 1 to this part) as unavoidable by-products or impurities may round 
to zero and are not subject to the provisions of this 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 the regulatory 
requirements of other federal agencies.



Sec.  712.2  Restrictions on activities involving Schedule 1 chemicals.

    (a) You may not produce Schedule 1 chemicals for protective 
purposes.
    (b) You may not import any Schedule 1 chemical unless:
    (1) The import is from a State Party;

[[Page 142]]

    (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 at least 45 calendar days prior to the 
import, pursuant toSec. 712.6 of the CWCR.

    Note 1 toSec. 712.2(b): Pursuant toSec. 712.6, advance 
notifications of import of saxitoxin of 5 milligrams or less for 
medical/diagnostic purposes must be submitted to BIS at least 3 days 
prior to import.
    Note 2 toSec. 712.2(b): For specific provisions relating to the 
prior advance notification of exports of all Schedule 1 chemicals, see 
Sec.  745.1 of the Export Administration Regulations (EAR) (15 CFR parts 
730 through 774). For specific provisions relating to license 
requirements for exports of Schedule 1 chemicals, seeSec. 742.2 and 
Sec.  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.

    (c)(1) The provisions of paragraphs (a) and (b) 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 (c)(2) of this 
section, pending destruction of the Schedule 1 chemical;
    (2) A person referred to in paragraph (c)(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.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



Sec.  712.3  Initial declaration requirements for declared facilities
which are engaged in the production of Schedule 1 chemicals for
purposes not prohibited by the CWC.

    Initial declarations submitted in February 2000 remain valid until 
amended or rescinded. If you plan to change/amend the technical 
description of your facility submitted with your initial declaration, 
you must submit an amended initial declaration to BIS 200 calendar days 
prior to implementing the change (seeSec. 712.5(b)(1)(ii) of the 
CWCR).



Sec.  712.4  New Schedule 1 production facility.

    (a) Establishment of a new Schedule 1 production facility. (1) If 
your facility has never before been declared underSec. 712.5 of the 
CWCR, or the initial declaration for your facility has been withdrawn 
pursuant toSec. 712.5(g) of the CWCR, 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 (with a 
current detailed technical description of your facility) to BIS in no 
less than 200 calendar days in advance of commencing such production. 
Such facilities are considered to be ``new Schedule 1 production 
facilities'' and 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, and a detailed diagram of the 
declared areas in the facility.
    (c) Two hundred days after a new Schedule 1 production facility 
submits its initial declaration, it is subject to the declaration 
requirements inSec. 712.5(a)(1) and (a)(2) andSec. 712.5(b)(1)(ii) 
of the CWCR.

[[Page 143]]



Sec.  712.5  Annual declaration requirements for facilities engaged
in the production of Schedule 1 chemicals for purposes not prohibited
by the CWC.

    (a) Declaration requirements--(1) 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. 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 any Schedule 1, Schedule 2, 
or Schedule 3 precursor used to produce the declared Schedule 1 
chemical. You must further declare 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.
    (2) 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 (seeSec. 712.4 of the CWCR) 200 calendar days before 
commencing operations or increasing production which will result in 
production of more than 100 grams aggregate of Schedule 1 chemicals.
    (b) Declaration forms to be used--(1) Initial declaration. (i) You 
must have completed 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 years 1997, 1998, or 1999. You must have provided 
a detailed current technical description of your facility or its 
relevant parts including a narrative statement, and a detailed diagram 
of the declared areas in the facility.
    (ii) If you plan to change the technical description of your 
facility from your initial declaration completed and submitted pursuant 
toSec. 712.3 orSec. 712.4 of the CWCR, you must submit an amended 
initial declaration to BIS 200 calendar days prior to the change. Such 
amendments to your initial declaration must be made by completing a 
Certification Form, Form 1-1 and Form A, including the new description 
of the facility. SeeSec. 712.7 of the CWCR 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)(1) 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. 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 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).
    (d) For the purpose of determining if a Schedule 1 chemical is 
subject to declaration, you must declare a Schedule 1 chemical that is 
an intermediate, but not a transient intermediate.
    (e) ``Declared'' Schedule 1 facilities and routine inspections. Only 
facilities that submitted a declaration pursuant to paragraph (a)(1) or 
(a)(2) of this section

[[Page 144]]

orSec. 712.4 of the CWCR are considered ``declared'' Schedule 1 
facilities. A ``declared'' Schedule 1 facility is subject to initial and 
routine inspection by the OPCW (see part 716 of the CWCR).
    (f) 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)(1) and (a)(2) of this 
section). If your facility does not produce more than 100 grams 
aggregate of Schedule 1 chemicals, no approval by BIS is required.
    (g) Withdrawal of Schedule 1 initial declarations. A facility 
subject to Sec.Sec. 712.3, 712.4 and 712.5 of the CWCR may withdraw 
its initial declaration at any time by notifying BIS in writing. A 
notification requesting the withdrawal of the initial declaration should 
be sent on company letterhead to the address inSec. 711.6 of the CWCR. 
BIS will acknowledge receipt of the withdrawal of the initial 
declaration. Facilities withdrawing their initial declaration may not 
produce subsequently in excess of 100 grams aggregate of Schedule 1 
chemicals within a calendar year unless pursuant toSec. 712.4.



Sec.  712.6  Advance notification and annual report of all exports
and imports of Schedule 1 chemicals to, or from, other States Parties.

    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 advance 
notification and annual report requirements of this section do not 
relieve you of any requirement to obtain a license for export of 
Schedule 1 chemicals subject to the EAR or ITAR or a license for import 
of Schedule 1 chemicals from the Department of Justice under the 
Alcohol, Tobacco, Firearms and Explosives Regulations in 27 CFR part 
447. Only ``declared'' facilities, as defined inSec. 712.5(e) of the 
CWCR, are subject to initial and routine inspections pursuant to part 
716 of the CWCR.
    (a) Advance notification of exports and imports. You must notify BIS 
at least 45 calendar days prior to exporting or importing any quantity 
of a Schedule 1 chemical, except for exports or imports of 5 milligrams 
or less of Saxitoxin--B (7)--for medical/diagnostic purposes, listed in 
Supplement No. 1 to this part to or from another State Party. Advance 
notification of export or import of 5 milligrams or less of Saxitoxin 
for medical/diagnostic purposes only, must be submitted to BIS at least 
3 calendar days prior to export or import. Note that advance 
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 ECCN 1C351 or to the Department 
of State for Schedule 1 chemicals controlled under the ITAR. Such 
advance notifications must be submitted separately from license 
applications.
    (1) Advance 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 facsimile numbers, 
along with the following information:
    (i) 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 or import;

[[Page 145]]

    (vi) Purpose (end-use) of export or import (i.e., research, medical, 
pharmaceutical, or protective purposes);
    (vii) Name(s) of exporter and importer;
    (viii) Complete street address(es) of exporter and importer;
    (ix) U.S. export license or control number, if known; and
    (x) Company identification number, once assigned by BIS.
    (2) Send the advance notification either by fax to (202) 482-1731 or 
by mail or courier delivery to the following address: Treaty Compliance 
Division, Bureau of Industry and Security, U.S. Department of Commerce, 
Room 4515, 14th Street and Pennsylvania Avenue, NW., Washington, DC 
20230, and mark it ``Attn: Advance Notification of Schedule 1 Chemical 
[Export] [Import].''
    (3) Upon receipt of the advance notification, BIS will inform the 
exporter or importer of the earliest date after which the shipment may 
occur under the advance notification procedure. To export a 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 (seeSec. 742.2 andSec. 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 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 must submit an 
annual report 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 must report the export or import by submitting either:
    (1) Combined declaration and report. Submit, 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) Report. Submit, 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.
    (B) If your facility declared production of a Schedule 1 chemical 
and exported or imported any amount of a different Schedule 1 chemical, 
you must report the export or import by submitting either:
    (1) Combined declaration and report. Submit, 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) Report. Submit, 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 report the export or import by 
submitting 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 inSec. 712.2(b) of the CWCR.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



Sec.  712.7  Amended declaration or report.

    In order for BIS to maintain accurate information on previously 
submitted facility declarations, including information necessary to 
facilitate inspection notifications and activities or to communicate 
declaration or report requirements, amended declarations or reports will 
be required under the following circumstances described in this section. 
This section applies only to annual declarations on past activities

[[Page 146]]

and annual reports on exports and imports submitted for the previous 
calendar year or annual declarations on anticipated activities covering 
the current calendar year, unless specified otherwise in a final 
inspection report.
    (a) Changes to information that directly affect inspection of a 
declared facility's Annual Declaration of Past Activities (ADPA) or 
Annual Declaration on Anticipated Activities (ADAA). You must submit an 
amended declaration or report to BIS within 15 days of any change in the 
following information:
    (1) Types of Schedule 1 chemicals produced (e.g., additional 
Schedule 1 chemicals);
    (2) Quantities of Schedule 1 chemicals produced;
    (3) Activities involving Schedule 1 chemicals; and
    (4) End-use of Schedule 1 chemicals (e.g., additional end-use(s)).
    (b) Changes to export or import information submitted in Annual 
Reports on Exports and Imports from undeclared facilities, trading 
companies and U.S. persons. You must submit an amended report or amended 
combined declaration and report for changes to export or import 
information within 15 days of any change in the following export or 
import information:
    (1) Types of Schedule 1 chemicals exported or imported (e.g., 
additional Schedule 1 chemicals);
    (2) Quantities of Schedule 1 chemicals exported or imported;
    (3) Destination(s) of Schedule 1 chemicals exported;
    (4) Source(s) of Schedule 1 chemicals imported;
    (5) Activities involving exports and imports of Schedule 1 
chemicals; and
    (6) End-use(s) of Schedule 1 chemicals exported or imported (e.g., 
additional end-use(s)).
    (c) Changes to company and facility information previously submitted 
to BIS in the ADPA, the ADAA, and the Annual Report on Exports and 
Imports--(1) Internal company changes. You must submit an amended 
declaration or report to BIS within 30 days of any change in the 
following information:
    (i) Name of declaration/report point of contact (D-POC), including 
telephone number, facsimile number, and e-mail address;
    (ii) Name(s) of inspection point(s) of contact (I-POC), including 
telephone number(s), and facsimile number(s);
    (iii) Company name (seeSec. 712.7(c)(2) of the CWCR for other 
company changes);
    (iv) Company mailing address;
    (v) Facility name;
    (vi) Facility owner, including telephone number, and facsimile 
number; and
    (vii) Facility operator, including telephone number, and facsimile 
number.
    (2) Change in ownership of company or facility. If you sold or 
purchased a declared facility or trading company, you must submit an 
amended declaration or report to BIS, either before the effective date 
of the change or within 30 days after the effective date of the change. 
The amended declaration or report must include the following 
information:
    (i) Information that must be submitted to BIS by the company selling 
a declared facility:
    (A) Name of seller (i.e., name of the company selling a declared 
facility);
    (B) Name of the declared facility and U.S. Code Number for that 
facility;
    (C) Name of purchaser (i.e., name of the new company purchasing a 
declared facility) and identity of contact person for the purchaser, if 
known;
    (D) Date of ownership transfer or change;
    (E) Additional details on sale of the declared facility relevant to 
ownership or operational control over any portion of that facility 
(e.g., whether the entire facility or only a portion of the declared 
facility has been sold to a new owner); and
    (F) Details regarding whether the new owner will submit the next 
declaration or report for the entire calendar year during which the 
ownership change occurred, or whether the previous owner and new owner 
will submit separate declarations or reports for the periods of the 
calendar year during which each owned the facility or trading company.
    (1) If the new owner is responsible for submitting the declaration 
or report for the entire current year, it must have in its possession 
the records for

[[Page 147]]

the period of the year during which the previous owner owned the 
facility.
    (2) If the previous owner and new owner will submit separate 
declarations for the periods of the calendar year during which each 
owned the facility (``part-year declarations''), and if, at the time of 
transfer of ownership, the previous owner's activities are not above the 
declaration thresholds set forth in Sec.Sec. 712.4 and 712.5 of the 
CWCR, the previous owner and the new owner must still submit 
declarations to BIS with the below threshold quantities indicated.
    (3) If the part-year declarations submitted by the previous owner 
and the new owner are not, when combined, above the declaration 
threshold set forth in Sec.Sec. 712.4 and 712.5 of the CWCR, BIS will 
return the declarations without action as set forth inSec. 712.8 of 
the CWCR.
    (4) If part-year reports are submitted by the previous owner and the 
new owner as required inSec. 712.5 of the CWCR, BIS will submit both 
reports in the OPCW.
    (ii) Information that must be submitted to BIS by the company 
purchasing a declared facility:
    (A) Name of purchaser (i.e., name of company purchasing a declared 
facility;
    (B) Mailing address of purchaser;
    (C) Name of declaration point of contact (D-POC) for the purchaser, 
including telephone number, facsimile number, and e-mail address;
    (D) Name of inspection points of contact (I-POC) for the purchaser, 
including telephone number(s), facsimile number(s) and e-mail 
address(es);
    (E) Name of the declared facility and U.S. Code Number for that 
facility;
    (F) Location of the declared facility;
    (G) Owner and operator of the declared facility, including telephone 
number, and facsimile number; and
    (H) Details on the next declaration or report submission on whether 
the new owner will submit the declaration or report for the entire 
calendar year during which the ownership change occurred, or whether the 
previous owner and new owner will submit separate declarations or 
reports for the periods of the calendar year during which each owned the 
facility or trading company.
    (1) If the new owner is taking responsibility for submitting the 
declaration or report for the entire current year, it must have in its 
possession the records for the period of the year during which the 
previous owner owned the facility.
    (2) If the previous owner and new owner will submit separate 
declarations for the periods of the calendar year during which each 
owned the facility, and, at the time of transfer of ownership, the 
previous owner's activities are not above the declaration thresholds set 
forth in Sec.Sec. 712.4 and 712.5 of the CWCR, the previous owner and 
the new owner must still submit declarations to BIS with the below 
threshold quantities indicated.
    (3) If the part-year declarations submitted by the previous owner 
and the new owner are not, when combined, above the declaration 
threshold set forth in Sec.Sec. 712.4 and 712.5 of the CWCR, BIS will 
return the declarations without action as set forth inSec. 712.8 of 
the CWCR.
    (4) If part-year reports are submitted by the previous owner and the 
new owner as required inSec. 712.5 of the CWCR, BIS will submit both 
reports to the OPCW.

    Note 1 toSec. 712.7(c): You must submit an amendment to your most 
recently submitted declaration or report for declaring changes to 
internal company information (e.g., company name change) or changes in 
ownership of a facility or trading company that have occurred since the 
submission of this declaration or report. BIS will process the amendment 
to ensure current information is on file regarding the facility or 
trading company (e.g., for inspection notifications and correspondence) 
and will also forward the amended declaration to the OPCW to ensure that 
they also have current information on file regarding your facility or 
trading company.
    Note 2 toSec. 712.7(c): You may notify BIS of change in ownership 
via a letter to the address given inSec. 711.6 of the CWCR. If you are 
submitting an amended declaration or report, use Form B to address 
details regarding the sale of the declared facility or trading company.
    Note 3 toSec. 712.7(c): For ownership changes, the declared 
facility or trading company will maintain its original U.S. Code Number, 
unless the facility or trading company is sold to multiple owners, at 
which time BIS will assign new U.S. Code Numbers for the new facilities.


[[Page 148]]


    (d) Inspection-related amendments. If, following completion of an 
inspection (see parts 716 and 717 of the CWCR), you are required to 
submit an amended declaration based on the final inspection report, BIS 
will notify you in writing of the information that will be required 
pursuant to Sec.Sec. 716.10 and 717.5 of the CWCR. You must submit an 
amended declaration to BIS no later than 45 days following your receipt 
of the BIS post-inspection letter.
    (e) Non-substantive changes. If, subsequent to the submission of 
your declaration or report to BIS, you discover one or more non-
substantive typographical errors in your declaration or report, you are 
not required to submit an amended declaration or report to BIS. Instead, 
you may correct these errors in a subsequent declaration or report.
    (f) Documentation required for amended declarations or reports. If 
you are required to submit an amended declaration or report to BIS 
pursuant to paragraph (a), (b), (c), or (d) of this section, you must 
submit either:
    (1) A letter containing all of the corrected information required, 
in accordance with the provisions of this section, to amend your 
declaration or report; or
    (2) Both of the following:
    (i) A new Certification Form (i.e., Form 1-1); and
    (ii) The specific forms (e.g., annual declaration on past 
activities) containing the corrected information required, in accordance 
with the provisions of this part 712, to amend your declaration or 
report.



Sec.  712.8  Declarations and reports returned without action by BIS.

    If you submit a declaration or report and BIS determines that the 
information contained therein is not required by the CWCR, BIS will 
return the original declaration or report to you, without action, 
accompanied by a letter explaining BIS's decision. In order to protect 
your confidential business information, BIS will not maintain a copy of 
any declaration or report that is returned without action (RWA). 
However, BIS will maintain a copy of the RWA letter.



Sec.  712.9  Deadlines for submission of Schedule 1 declarations, 
reports, advance notifications, and amendments.

    Declarations, reports, advance notifications, and amendments 
required under this part must be postmarked by the appropriate date 
identified in Supplement No. 2 to this part 712. Required declarations, 
reports, advance notifications, and amendments include:
    (a) Annual declaration on past activities (Schedule 1 chemical 
production during the previous calendar year);
    (b) Annual report on exports and imports of Schedule 1 chemicals 
from facilities, trading companies, and other persons (during the 
previous calendar year);
    (c) Combined declaration and report (production of Schedule 1 
chemicals, as well as exports or imports of the same or different 
Schedule 1 chemicals, by a declared facility during the previous 
calendar year);
    (d) Annual declaration on anticipated activities (anticipated 
production of Schedule 1 chemicals in the next calendar year);
    (e) Advance notification of any export to or import from another 
State Party;
    (f) Initial declaration of a new Schedule 1 chemical production 
facility; and
    (g) Amended declaration or report, including combined declaration 
and report.



         Sec. 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............................

[[Page 149]]

 
    (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.................................
    (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-chloroethylthio)ethane      (3563-36-8)
        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): Saxitoxin (35523-89-8) and
  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 Directorate of Defense Trade
  Controls of the Department of State under the International Traffic in
  Arms Regulations (22 CFR parts 120 through 130).



Sec. Supplement No. 2 to Part 712--Deadlines for Submission of Schedule 
     1 Declarations, Advance Notifications, Reports, and Amendments

------------------------------------------------------------------------
      Declarations, advance
    notifications and reports      Applicable forms        Due dates
------------------------------------------------------------------------
Annual Declaration on Past        Certification, 1-   February 28th of
 Activities (previous calendar     1, 1-2,1-2A,1-2B,   the year
 year)--Declared facility (past    A (as               following any
 production).                      appropriate), B     calendar year in
                                   (optional).         which more than
                                                       100 grams
                                                       aggregate of
                                                       Schedule 1
                                                       chemicals were
                                                       produced,
Annual report on exports and      Certification, 1-   February 28th of
 imports (previous calendar        1,1-3, A (as        the year
 year) (facility, trading          appropriate), B     following any
 company, other persons).          (optional).         calendar year in
                                                       which Schedule 1
                                                       chemicals were
                                                       exported or
                                                       imported.
Combined Declaration and Report.  Certification, 1-   February 28th of
                                   1, 1-2, 1-2A, 1-    the year
                                   2B, 1-3, A (as      following any
                                   appropriate), B     calendar year in
                                   (optional).         which Schedule 1
                                                       chemicals were
                                                       produced,
                                                       exported, or
                                                       imported.
Annual Declaration of             Certification, 1-   September 3rd of
 Anticipated Activities (next      1, 1-4, A (as       the year prior to
 calendar year).                   appropriate), B     any calendar year
                                   (optional).         in which Schedule
                                                       1 activities are
                                                       anticipated to
                                                       occur.
Advance Notification of any       Notify on           45 calendar days
 export to or import from          letterhead. See     prior to any
 another State Party.            Sec. 712.6 of     export or import
                                   the CWCR.           of Schedule 1
                                                       chemicals, except
                                                       3 days prior to
                                                       export or import
                                                       of 5 milligrams
                                                       or less of
                                                       saxitoxin for
                                                       medical/
                                                       diagnositc
                                                       purposes.
Initial Declaration of a new      Certification, 1-   200 calendar days
 Schedule 1 facility (technical    1, A (as            prior to
 description).                     appropriate), B     producing in
                                   (optional).         excess of 100
                                                       grams aggregate
                                                       of Schedule 1
                                                       chemicals.
Amended Declaration.............  Certification, 1-
                                   1, 1-2, 1-2A.
    --Chemicals/Activities:Sec. ..................  --15 calendar days
       712.7(a).                                       after change in
                                                       information.
    --Company information:Sec.  ..................  --30 calendar days
      712.7(c).                                        after change in
                                                       information.
    --Post-inspection letter:     ..................  --45 calendar days
   Sec. 712.7(d).                                  after receipt of
                                                       letter.

[[Page 150]]

 
Amended ReportSec.  712.7(b)..  Certification, 1-   --15 calendar days
                                   1, 1-3, A (as       after change in
                                   appropriate), B     information.
                                   (optional).
Amended Combined Declaration &    Certification, 1-   --15 calendar days
 Report.                           1, 1-2, 1-2A, 1-    after change in
                                   3, A (as            information.
                                   appropriate), B
                                   (optional).
------------------------------------------------------------------------



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



Sec.
713.1 Prohibition on exports and imports of Schedule 2 chemicals to and 
          from States not Party to the CWC.
713.2 Annual declaration requirements for plant sites that produce, 
          process or consume Schedule 2 chemicals in excess of specified 
          thresholds.
713.3 Annual declaration and reporting requirements for exports and 
          imports of Schedule 2 chemicals.
713.4 Advance declaration requirements for additionally planned 
          production, processing or consumption of Schedule 2 chemicals.
713.5 Amended declaration or report.
713.6 Declarations and reports returned without action by BIS.
713.7 Deadlines for submission of Schedule 2 declarations, reports, and 
          amendments.

Supplement No. 1 to Part 713--Schedule 2 Chemicals
Supplement No. 2 to Part 713--Deadlines for Submission of Schedule 2 
          Declarations, Reports, and Amendments

    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, 3 CFR 1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.



Sec.  713.1  Prohibition on exports and imports of Schedule 2 chemicals
to and from States not Party to the CWC.

    (a) You may not export any Schedule 2 chemical (see supplement no. 1 
to this part) to any destination or import any Schedule 2 chemical from 
any destination other than a State Party to the Convention. See 
supplement no. 1 to part 710 of the CWCR for a list of States that are 
party to the Convention.

    Note toSec. 713.1(a): SeeSec. 742.18 of the Export 
Administration Regulations (EAR) (15 CFR part 742) for prohibitions that 
apply to exports of Schedule 2 chemicals to States not Party to the CWC.

    (b) Paragraph (a) of this section does not apply to:
    (1) The export or import of a Schedule 2 chemical to or from a State 
not Party to the CWC 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;
    (2) Mixtures containing Schedule 2A chemicals, if the concentration 
of each Schedule 2A chemical in the mixture is 1% or less by weight 
(note, however, that such mixtures may be subject to the regulatory 
requirements of other federal agencies);
    (3) Mixtures containing Schedule 2B chemicals if the concentration 
of each Schedule 2B chemical in the mixture is 10% or less by weight 
(note, however, that such mixtures may be subject to the regulatory 
requirements of other federal agencies); or
    (4) Products identified as consumer goods packaged for retail sale 
for personal use or packaged for individual use.



Sec.  713.2  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) Annual declaration on past activities. (A) You produced, 
processed or consumed at one or more plants on

[[Page 151]]

your plant site during any of the previous three calendar years, a 
Schedule 2 chemical in excess of any of the following declaration 
threshold quantities:
    (1) 1 kilogram of chemical BZ: 3-Quinuclidinyl benzilate (see 
Schedule 2, paragraph A.3 in Supplement No. 1 to this part);
    (2) 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 in 
Supplement No. 1 to this part); or
    (3) 1 metric ton of any chemical listed in Schedule 2, Part B (see 
Supplement No. 1 to this part).
    (B) In order to trigger a declaration requirement for a past 
activity (i.e., production, processing or consumption) involving a 
Schedule 2 chemical, a plant on your plant site must have exceeded the 
applicable declaration threshold for that particular activity during one 
or more of the previous three calendar years. For example, if a plant on 
your plant site produced 800 kilograms of thiodiglycol and consumed 300 
kilograms of the same Schedule 2 chemical, during the previous calendar 
year, you would not have a declaration requirement based on these 
activities, because neither activity at your plant would have exceeded 
the declaration threshold of 1 metric ton for that Schedule 2 chemical. 
However, a declaration requirement would apply if an activity involving 
a Schedule 2 chemical at the plant exceeded the declaration threshold in 
an earlier year (i.e., during the course of any other calendar year 
within the past three calendar years), as indicated in the example 
provided in the note to this paragraph.

    Note toSec. 713.2(a)(1)(i)(B): To determine whether or not you 
have an annual declaration on past activities requirement for Schedule 2 
chemicals, you must determine whether you produced, processed or 
consumed a Schedule 2 chemical above the applicable threshold at one or 
more plants on your plant site in any one of the three previous calendar 
years. For example, for the 2004 annual declaration on past activities 
period, if you determine that one plant on your plant site produced 
greater than 1 kilogram of the chemical BZ in calendar year 2002, and no 
plants on your plant site produced, processed or consumed any Schedule 2 
chemical above the applicable threshold in calendar years 2003 or 2004, 
you still have a declaration requirement under this paragraph for the 
previous calendar year (2004). However, you must only declare on Form 2-
3 (question 2-3.1), production data for calendar year 2004. You would 
declare ``0'' production because you did not produce BZ above the 
applicable threshold in calendar year 2004. Since the plant site did not 
engage in any other declarable activity (i.e., consumption, processing) 
in the 2002-2004 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 2004, 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.

    (ii) 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, a Schedule 2 chemical in 
excess of the applicable declaration threshold set forth in paragraphs 
(a)(1)(i)(A)(1) through (3) of this section.

    Note toSec. 713.2(a)(1)(ii): A null ``0'' declaration is not 
required if you do not plan to produce, process or consume a Schedule 2 
chemical in the next calendar year.

    (2) Schedule 2 chemical production. (i) For the purpose of 
determining Schedule 2 production, you must include all steps in the 
production of a chemical in any units within the same plant through 
chemical reaction, including any associated processes (e.g., 
purification, separation, extraction, distillation, or refining) in 
which the chemical is not converted into another chemical. The exact 
nature of any associated process (e.g., purification, etc.) is not 
required to be declared.
    (ii) For the purpose of determining if a Schedule 2 chemical is 
subject to declaration, you must declare an intermediate Schedule 2 
chemical, but not a transient intermediate Schedule 2 chemical.
    (3) Mixtures containing a Schedule 2 chemical. (i) Mixtures that 
must be counted. You must count the quantity of each Schedule 2 chemical 
in a mixture, when determining the total quantity of

[[Page 152]]

a Schedule 2 chemical produced, processed, or consumed at a plant on 
your plant site, if the concentration of each Schedule 2 chemical in the 
mixture is 30% or more by volume or by weight, whichever yields the 
lesser percent. Do not count a Schedule 2 chemical in the mixture that 
represents less than 30% by volume or by weight.
    (ii) How to count the quantity of each Schedule 2 chemical in a 
mixture. If your mixture contains 30% or more concentration of a 
Schedule 2 chemical, you must count the quantity (weight) of each 
Schedule 2 chemical in the mixture, not the total weight of the mixture. 
You must separately declare each Schedule 2 chemical with a 
concentration in the mixture that is 30% or more and exceeds the 
quantity threshold detailed in paragraphs (a)(1)(i)(A)(1) through (3) of 
this section.
    (iii) Determining declaration requirements for production, 
processing and consumption. If the total quantity of a Schedule 2 
chemical produced, processed or consumed at a plant on your plant site, 
including mixtures that contain 30% or more concentration of a Schedule 
2 chemical, exceeds the applicable declaration threshold set forth in 
paragraphs (a)(1)(i)(A)(1) through (3) of this section, you have a 
declaration requirement. For example, if during calendar year 2001, 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, the total amount of thiodiglycol produced at that plant 
for CWCR purposes would be 1100 kilograms, which exceeds 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 
2001. 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) 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 threshold 
quantity of a Schedule 2 chemical described in paragraphs 
(a)(1)(i)(A)(1) through (3) 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.
    (2) 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 set forth in 
paragraphs (a)(1)(i)(A)(1) through (3) of this section during the 
following calendar year. Form B is optional.
    (c) Quantities to be declared--(1) Production, processing and 
consumption of a Schedule 2 chemical above the declaration threshold--
(i) Annual declaration on past activities. 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 for that Schedule 2 chemical. 
Do not include in these aggregate production, processing, and 
consumption quantities any data 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. For example, if a plant 
on your plant site produced a Schedule 2 chemical in an amount greater 
than the applicable declaration threshold during the previous calendar 
year, you would have to declare only the production quantity from that 
plant, provided that the total amount of the Schedule 2 chemical 
processed or consumed at the plant did not exceed the applicable 
declaration threshold during any one of the previous three calendar 
years. If in

[[Page 153]]

the previous calendar year your production, processing and consumption 
activities all were below the applicable declaration threshold, but your 
declaration requirement is triggered because of production activities 
occurring in an earlier year, you would declare ``0'' only for the 
declared production activities.
    (ii) Annual declaration on anticipated activities. If you are 
required to complete forms pursuant to paragraph (a)(1)(ii) of this 
section, you must declare the aggregate quantity of any Schedule 2 
chemical that you plan to produce, process or consume at any plant(s) on 
your plant site above the applicable thresholds set forth in paragraphs 
(a)(1)(i)(A)(1) through (3) of this section during the next calendar 
year. Do not include in these anticipated aggregate production, 
processing, and consumption quantities any data from plants on the plant 
site that you do not anticipate will individually produce, process or 
consume a Schedule 2 chemical in amounts greater than the applicable 
thresholds.
    (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 site. A plant site that submitted 
a declaration pursuant to paragraph (a)(1) of this section is a 
``declared'' plant site.
    (e) Declared Schedule 2 plant sites subject to initial and 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 set forth in paragraphs (a)(1)(i)(A)(1) through 
(3) of this section (see part 716 of the CWCR). A ``declared'' Schedule 
2 plant site that has received an initial inspection is subject to 
routine inspection.



Sec.  713.3  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--(1) Declarations. A Schedule 2 plant site that is declared 
because it produced, processed or consumed a Schedule 2 chemical at one 
or more plants above the applicable threshold set forth in paragraph (b) 
of this section, and also exported from or imported to the plant site 
that same Schedule 2 chemical above the applicable threshold, must 
submit export and import information as part of its declaration.
    (2) Reports. The following persons must submit a report if they 
individually exported or imported a Schedule 2 chemical above the 
applicable threshold indicated in paragraph (b) of this section:
    (i) A declared plant site that exported or imported a Schedule 2 
chemical that was different than the Schedule 2 chemical produced, 
processed or consumed at one or more plants at the plant site above the 
applicable declaration threshold;
    (ii) An undeclared plant site;
    (iii) A trading company; or
    (iv) Any other person subject to the CWCR.

    Note toSec. 713.3(a)(1) and (a)(2)(i): 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 and 
also report exports or imports of different Schedule 2 chemicals that it 
did not produce, process or consume above the applicable threshold 
quantities. The report may be submitted to BIS either with or separately 
from the annual declaration on past activities (seeSec. 713.3(d) of 
the CWCR).
    Note toSec. 713.3(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 toSec. 713.3(a)(1) and (2): Declared and undeclared plant 
sites must count, for declaration or reporting purposes, all exports 
from and imports to the entire plant site, not only from or to 
individual plants on the plant site.


[[Page 154]]


    (b) Quantities of exports or imports that trigger a declaration or 
reporting requirement. (1) You have a declaration or reporting 
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); or
    (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 each 
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 each Schedule 2 chemical in the mixture is 30% or more 
by volume or by weight, whichever yields the lesser percent. You must 
declare separately each Schedule 2 chemical whose concentration in the 
mixture is 30% or more.

    Note 1 toSec. 713.3(b)(2): SeeSec. 713.2(a)(2)(ii) of the CWCR 
for information on counting amounts of Schedule 2 chemicals contained in 
mixtures and determining declaration and reporting requirements.
    Note 2 toSec. 713.3(b)(2): The ``30% and above'' mixtures rule 
applies only for declaration and reporting 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 BIS (seeSec. 742.2,Sec. 
742.18 andSec. 745.2 of the Export Administration Regulations) or from 
the Department of State (see the International Traffic in Arms 
Regulations (22 CFR parts 120 through130)).

    (c) Declaration and reporting requirements--(1) Annual declaration 
on past activities. A plant site described in paragraph (a)(1) of this 
section that has an annual declaration requirement for the production, 
processing, or consumption of a Schedule 2 chemical for the previous 
calendar year also must declare the export and/or import of that same 
Schedule 2 chemical if the amount exceeded the applicable threshold set 
forth in paragraph (b) of this section. The plant site must declare such 
export or import information as part of its annual declaration of past 
activities.
    (2) Annual report on exports and imports. Declared plant sites 
described in paragraph (a)(2)(i) of this section, and undeclared plant 
sites, trading companies or any other person (described in paragraphs 
(a)(2)(ii) through (iv) of this section) subject to the CWCR that 
exported or imported a Schedule 2 chemical in a previous calendar year 
in excess of the applicable thresholds set forth in paragraph (b) of 
this section must submit an annual report on such exports or imports.
    (d) Types of declaration and reporting forms to be used--(1) Annual 
declaration on past activities. If you are a declared Schedule 2 plant 
site, as described in paragraph (a)(1) of this section, you must 
complete Form 2-3B, in addition to the forms required bySec. 
713.2(b)(1) of the CWCR, for each declared Schedule 2 chemical exported 
or imported above the applicable threshold in the previous calendar 
year.
    (2) Annual report on exports and imports. (i) If you are a declared 
plant site, as described in paragraph (a)(2)(i) of this section, you may 
fulfill your annual reporting requirements by:
    (A) Submitting, with your annual declaration on past activities, a 
Form 2-3B for each Schedule 2 chemical you exported or imported above 
the applicable threshold. Attach Form A, as appropriate; Form B is 
optional; or
    (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. 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

[[Page 155]]

above the applicable threshold. 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 of a Schedule 2 chemical in the 
previous calendar year, you must declare or report all exports and 
imports of that chemical by country of destination or country of origin, 
respectively, and indicate the total amount exported to or imported from 
each country.
    (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 and then round as follows: For 
the chemical BZ, the total quantity for each country of destination or 
country of origin (source) 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 or 
source should be reported to the nearest 1 kilogram; and for all other 
Schedule 2 chemicals, the total quantity for each destination or source 
should be reported to the nearest 10 kilograms.



Sec.  713.4  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 
underSec. 713.2(a)(1)(ii) of the CWCR 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 
underSec. 713.2(a)(1)(ii) of the CWCR 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 underSec. 713.2(a)(1)(ii) of the 
CWCR;
    (iv) You plan to increase the production, processing, or consumption 
of a Schedule 2 chemical by a plant declared underSec. 713.2(a)(1)(ii) 
of the CWCR from the amount exceeding the applicable declaration 
threshold to an amount exceeding the applicable inspection threshold 
(seeSec. 716.1(b)(2) of the CWCR);
    (v) You plan to change the starting or ending date of anticipated 
production, processing, or consumption declared underSec. 
713.2(a)(1)(ii) of the CWCR 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 underSec. 713.2(a)(1)(ii) of the 
CWCR.
    (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 also should 
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 the plant site's status relating to exports of the 
chemical or the addition of new countries for export.
    (b) Declaration forms to be used. If you are required to declare 
additionally

[[Page 156]]

planned activities pursuant to paragraph (a) of this section, 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 least 15 days prior to 
beginning the additional activity.



Sec.  713.5  Amended declaration or report.

    In order for BIS to maintain accurate information on previously 
submitted plant site declarations, including information necessary to 
facilitate inspection notifications and activities or to communicate 
declaration or reporting requirements, amended declarations or reports 
will be required under the circumstances described in this section. This 
section applies only to annual declarations on past activities submitted 
for the three previous calendar years, annual reports on exports and 
imports for the previous calendar year or annual declarations on 
anticipated activities covering the current calendar year, unless 
specified otherwise in a final inspection report.
    (a) Changes to information that directly affect inspection of a 
declared plant site's Annual Declaration of Past Activities (ADPA) or 
Combined Annual Declaration and Report. You must submit an amended 
declaration or report to BIS within 15 days of any change in the 
following information:
    (1) Types of Schedule 2 chemicals produced, processed, or consumed;
    (2) Quantities of Schedule 2 chemicals produced, processed, or 
consumed;
    (3) Activities involving Schedule 2 chemicals (production, 
processing, consumption);
    (4) End-use of Schedule 2 chemicals (e.g., additional end-use(s));
    (5) Product group codes for Schedule 2 chemicals produced, 
processed, or consumed;
    (6) Production capacity for manufacturing a specific Schedule 2 
chemical at particular plant site;
    (7) Exports or imports (e.g., changes in the types of Schedule 2 
chemicals exported or imported or in the quantity, recipients, or 
sources of such chemicals);
    (8) Domestic transfers (e.g., changes in the types of Schedule 2 
chemicals, types of destinations, or product group codes); and
    (9) Addition of new plant(s) for the production, processing, or 
consumption of Schedule 2 chemicals.
    (b) Changes to export or import information submitted in Annual 
Reports on Exports and Imports from undeclared plant sites, trading 
companies and U.S. persons. You must submit an amended report or amended 
combined declaration and report to BIS within 15 days of any change in 
the following export or import information:
    (1) Types of Schedule 2 chemicals exported or imported (additional 
Schedule 2 chemicals);
    (2) Quantities of Schedule 2 chemicals exported or imported;
    (3) Destination(s) of Schedule 2 chemicals exported; and
    (4) Source(s) of Schedule 2 chemicals imported.
    (c) Changes to company and plant site information that must be 
maintained by BIS for the ADPA, Annual Declaration on Anticipated 
Activities (ADAA), and the Annual Report on Exports and Imports--(1) 
Internal company changes. You must submit an amended declaration or 
report to BIS within 30 days of any change in the following information:
    (i) Name of declaration/report point of contact (D-POC), including 
telephone number, facsimile number, and e-mail address;
    (ii) Name(s) of inspection point(s) of contact (I-POC), including 
telephone number(s), facsimile number(s) and e-mail address(es);
    (iii) Company name (see paragraph (c)(2) of this section for other 
company changes);
    (iv) Company mailing address;
    (v) Plant site name;
    (vi) Plant site owner, including telephone number, and facsimile 
number;
    (vii) Plant site operator, including telephone number, and facsimile 
number;
    (viii) Plant name;
    (ix) Plant owner, including telephone number, and facsimile number; 
and
    (x) Plant operator, including telephone number and facsimile number.
    (2) Change in ownership of company, plant site, or plant. If you 
sold or purchased a declared plant site, plant, or trading company you 
must submit an amended declaration or report to BIS, either before the 
effective date of the

[[Page 157]]

change or within 30 days after the effective date of the change. The 
amended declaration or report must include the following information:
    (i) Information that must be submitted to BIS by the company selling 
a declared plant site:
    (A) Name of seller (i.e., name of the company selling a declared 
plant site);
    (B) Name of the declared plant site and U.S. Code Number for that 
plant site;
    (C) Name of purchaser (i.e., name of the new company/owner 
purchasing a declared plant site) and identity of contact person for the 
purchaser, if known;
    (D) Date of ownership transfer or change;
    (E) Additional (e.g., unique) details on the sale of the declared 
plant site relevant to ownership or operational control over any portion 
of the declared plant site (e.g., whether the entire plant site or only 
a portion of the declared plant site has been sold to a new owner); and
    (F) Details regarding whether the new owner will submit the next 
declaration or report for the entire calendar year during which the 
ownership change occurred, or whether the previous owner and new owner 
will submit separate declarations or reports for the periods of the 
calendar year during which each owned the plant site or trading company.
    (1) If the new owner is responsible for submitting the declaration 
or report for the entire current year, it must have in its possession 
the records for the period of the year during which the previous owner 
owned the plant site.
    (2) If the previous owner and new owner will submit separate 
declarations or reports for the periods of the calendar year during 
which each owned the plant site, and, if at the time of transfer of 
ownership, the previous owner's activities are not above the declaration 
or reporting thresholds set forth inSec. 713.2(a)(1)(i)(A)(1) through 
(3) andSec. 713.3(b)(1)(i) through (iii) of the CWCR, respectively, 
the previous owner and the new owner must still submit declarations to 
BIS with the below threshold quantities indicated.
    (3) If the part-year declarations submitted by the previous owner 
and the new owner are not, when combined, above the declaration 
thresholds set forth inSec. 713.2(a)(1)(i)(A)(1) through (3) of the 
CWCR, BIS will return the declarations without action as set forth in 
Sec.  713.6 of the CWCR.
    (4) If part-year reports submitted by the previous owner and the new 
owner are not, when combined, above the thresholds in Sec.Sec. 
713.3(b)(1)(i) through (iii) of the CWCR, BIS will return the reports 
without action as set forth inSec. 713.6 of the CWCR.
    (ii) Information that must be submitted to BIS by the company 
purchasing a declared plant site:
    (A) Name of purchaser (i.e., name of individual or company 
purchasing a declared plant site);
    (B) Mailing address of purchaser;
    (C) Name of declaration point of contact (D-POC) for the purchaser, 
including telephone number, facsimile number, and e-mail address;
    (D) Name of inspection point(s) of contact (I-POC) for the 
purchaser, including telephone number(s), facsimile number(s) and e-mail 
address(es);
    (E) Name of the declared plant site and U.S. Code Number for that 
plant site;
    (F) Location of the declared plant site;
    (G) Owner of the declared plant site, including telephone number, 
and facsimile number;
    (H) Operator of the declared plant site, including telephone number, 
and facsimile number;
    (I) Name of plant(s) where Schedule 2 activities exceed the 
applicable declaration threshold;
    (J) Owner and operator of plant(s) where Schedule 2 activities 
exceed the applicable declaration threshold, including telephone 
numbers, and facsimile numbers;
    (K) Location of the plant where Schedule 2 activities exceed the 
applicable declaration threshold; and
    (L) Details on the next declaration or report submission on whether 
the new owner will submit the declaration or report for the entire 
calendar year during which the ownership change occurred, or whether the 
previous owner and new owner will submit separate declarations or 
reports for the periods of the calendar year during which each

[[Page 158]]

owned the plant site or trading company.

    Note 1 toSec. 713.5(c): You must submit an amendment to your most 
recently submitted declaration or report for declaring changes to 
internal company information (e.g., company name change) or changes in 
ownership of a facility or trading company that have occurred since the 
submission of this declaration or report. BIS will process the amendment 
to ensure current information is on file regarding the facility or 
trading company (e.g., for inspection notifications and correspondence) 
and will also forward the amended declaration to the OPCW to ensure that 
they also have current information on file regarding your facility or 
trading company.
    Note 2 toSec. 713.5(c): You may notify BIS of change in ownership 
via a letter to the address given inSec. 711.6 of the CWCR. If you are 
submitting an amended declaration or report, use Form B to address 
details regarding the sale of the declared plant site or trading 
company.
    Note 3 toSec. 713.5(c): For ownership changes, the declared 
facility or trading company will maintain its original U.S. Code Number, 
unless the plant site or trading company is sold to multiple owners, at 
which time BIS will assign new U.S. Code Numbers.

    (d) Inspection-related amendments. If, following the completion of 
an inspection (see parts 716 and 717 of the CWCR), you are required to 
submit an amended declaration based on the final inspection report, BIS 
will notify you in writing of the information that will be required 
pursuant to Sec.Sec. 716.10 and 717.5 of the CWCR. You must submit an 
amended declaration to BIS no later than 45 days following your receipt 
of BIS's post-inspection letter.
    (e) Non-substantive changes. If, subsequent to the submission of 
your declaration or report to BIS, you discover one or more non-
substantive typographical errors in your declaration or report, you are 
not required to submit an amended declaration or report to BIS. Instead, 
you may correct these errors in a subsequent declaration or report.
    (f) Documentation required for amended declarations or reports. If 
you are required to submit an amended declaration or report to BIS 
pursuant to paragraph (a), (b), (c), or (d) of this section, you must 
submit either:
    (1) A letter containing all of the corrected information required, 
in accordance with the provisions of this section, to amend your 
declaration or report; or
    (2) Both of the following:
    (i) A new Certification Form; and
    (ii) The specific forms required for the declaration or report type 
being amended (e.g., annual declaration on past activities) containing 
the corrected information required, in accordance with the requirements 
of this section, to amend your declaration or report.



Sec.  713.6  Declarations and reports returned without action by BIS.

    If you submit a declaration or report and BIS determines that the 
information contained therein is not required by the CWCR, BIS will 
return the original declaration or report to you, without action, 
accompanied by a letter explaining BIS's decision. In order to protect 
your confidential business information, BIS will not maintain a copy of 
any declaration or report that is returned without action (RWA). 
However, BIS will maintain a copy of the RWA letter.



Sec.  713.7  Deadlines for submission of Schedule 2 declarations,
reports, and amendments.

    Declarations, reports, and amendments required under this part must 
be postmarked by the appropriate date identified in Supplement No. 2 to 
this part 713. Required declarations, reports, and amendments include:
    (a) Annual declaration on past activities (production, processing, 
or consumption of Schedule 2 chemicals during the previous calendar 
year);
    (b) Annual report on exports and imports of Schedule 2 chemicals by 
plant sites, trading companies, and other persons subject to the CWCR 
(during the previous calendar year);
    (c) Combined declaration and report (production, processing, or 
consumption of Schedule 2 chemicals, as well as exports or imports of 
the same or different Schedule 2 chemicals, by a declared plant site 
during the previous calendar year);
    (d) Annual declaration on anticipated activities (production, 
processing or consumption) involving Schedule 2

[[Page 159]]

chemicals during the next calendar year;
    (e) Declaration on Additionally Planned Activities (production, 
processing or consumption) involving Schedule 2 chemicals; and
    (f) Amended declaration and report, including combined declaration 
and report.



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

------------------------------------------------------------------------
                                                          (CAS registry
                                                             number)
------------------------------------------------------------------------
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-(trifluoromethyl)-      (382-21-8)
     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)
------------------------------------------------------------------------
Notes to Supplement No. 1
Note 1: Note that the following Schedule 2 chemicals are controlled for
  export purposes by the Directorate of Defense Trade Controls of the
  Department of State under the International Traffic in Arms
  Regulations (22 CFR parts 120 through 130): Amiton: O,O-Diethyl S-[2-
  (diethylamino)ethyl] phosphorothiolate and corresponding alkylated or
  protonated salts (78-53-5); BZ: 3-Quinuclidinyl benzilate 6581-06-2);
  and Methylphosphonyl dichloride (676-97-1).
Note 2: All Schedule 2 chemicals not listed in Note 1 to this Supplement
  are controlled for export purposes under the Export Administration
  Regulations (see part 774 of the EAR, the Commerce Control List).



Sec. Supplement No. 2 to Part 713--Deadlines for Submission of Schedule 
                 2 Declarations, Reports, and Amendments

------------------------------------------------------------------------
    Declarations and reports       Applicable forms        Due dates
------------------------------------------------------------------------
Annual Declaration on Past        Certification, 2-   February 28 of the
 Activities (previous calendar     1, 2-2, 2-3, 2-     year following
 year)--Declared plant site        3A, 2-3B (if also   any calendar year
 (production, processing, or       exported or         in which the
 consumption).                     imported), A (as    production,
                                   appropriate), B     processing, or
                                   (optional).         consumption of a
                                                       Schedule 2
                                                       chemical exceeded
                                                       the applicable
                                                       declaration
                                                       thresholds in
                                                       Sec.
                                                       713.2(a)(1)(i) of
                                                       the CWCR.
Annual Report on Exports and      Certification, 2-   February 28 of the
 Imports (previous calendar        1, 2-3B, A (as      year following
 year)--Plant site, trading        appropriate), B     any calendar year
 company, other persons.           (optional).         in which exports
                                                       or imports of a
                                                       Schedule 2
                                                       chemical by a
                                                       plant site,
                                                       trading company,
                                                       or other person
                                                       subject to the
                                                       CWCR (as
                                                       described in Sec.
                                                         713.3(a)(2) of
                                                       the CWCR)
                                                       exceeded the
                                                       applicable
                                                       thresholds in
                                                       Sec.
                                                       713.3(b)(1) of
                                                       the CWCR.
Combined Declaration & Report--   Certification, 2-   February 28 of the
 Declared plant site               1, 2-2, 2-3, 2-     year following
 (production, processing, or       3A, 2-3B, A (as     any calendar year
 consumption; exports and          appropriate), B     in which the
 imports).                         (optional).         production,
                                                       processing, or
                                                       consumption of a
                                                       Schedule 2
                                                       chemical and the
                                                       export or import
                                                       of the same or a
                                                       different
                                                       Schedule 2
                                                       chemical by a
                                                       declared plant
                                                       site exceeded the
                                                       applicable
                                                       thresholds in
                                                      Sec. Sec.
                                                       713.2(a)(1)(i)
                                                       and 713.3(b)(1),
                                                       respectively, of
                                                       the CWCR.

[[Page 160]]

 
Annual Declaration on             Certification, 2-   September 3 of the
 Anticipated Activities (next      1, 2-2, 2-3, 2-     year prior to any
 calendar year).                   3A, 2-3C, A (as     calendar year in
                                   appropriate), B     which Schedule 2
                                   (optional).         activities are
                                                       anticipated to
                                                       occur.
Declaration on Additionally       Certification, 2-   15 calendar days
 Planned Activities (production,   1, 2-2, 2-3, 2-     before the
 processing and consumption).      3A, 2-3C, A (as     additionally
                                   appropriate), B     planned activity
                                   (optional).         begins.
Amended Declaration.............  Certification, 2-
                                   1, 2-2, 2-3 2-3A,
                                   2-3B (if also
                                   exported or
                                   imported), A (as
                                   appropriate), B
                                   (optional).
    --Declaration information...  ..................  --15 calendar days
                                                       after change in
                                                       information.
    --Company information.......  ..................  --30 calendar days
                                                       after change in
                                                       information.
    --Post-inspection letter....  ..................  --45 calendar days
                                                       after receipt of
                                                       letter.
Amended Report..................  Certification, 2-   --15 calendar days
                                   1, 2-3B, A (as      after change in
                                   appropriate), B     information.
                                   (optional).
Amended Combined Declaration &    Certification, 2-   --15 calendar days
 Report.                           1, 2-2, 2-3, 2-     after change in
                                   3A, 2-3B, A (as     information.
                                   appropriate), B
                                   (optional).
------------------------------------------------------------------------



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



Sec.
714.1 Annual declaration requirements for plant sites that produce a 
          Schedule 3 chemical in excess of 30 metric tons.
714.2 Annual reporting requirements for exports and imports in excess of 
          30 metric tons of Schedule 3 chemicals.
714.3 Advance declaration requirements for additionally planned 
          production of Schedule 3 chemicals.
714.4 Amended declaration or report.
714.5 Declarations and reports returned without action by BIS.
714.6 Deadlines for submission of Schedule 3 declarations, reports, and 
          amendments.

Supplement No. 1 to Part 714--Schedule 3 Chemicals
Supplement No. 2 to Part 714--Deadlines for Submission of Schedule 3 
          Declarations, Reports, and Amendments

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.



Sec.  714.1  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 (see Supplement No. 1 to this 
part) as follows:
    (i) 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.
    (ii) 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) Schedule 3 chemical production. (i) For the purpose of 
determining Schedule 3 production, you must include all steps in the 
production of a chemical in any units within the same plant through 
chemical reaction, including any associated processes (e.g., 
purification, separation, extraction, distillation, or refining) in 
which the chemical is not converted into another chemical. The exact 
nature of any associated process (e.g., purification, etc.) is not 
required to be declared.
    (ii) For the purpose of determining if a Schedule 3 chemical is 
subject to declaration, you must declare an intermediate Schedule 3 
chemical, but not a transient intermediate Schedule 3 chemical.
    (3) Mixtures containing a Schedule 3 chemical. (i) When you must 
count the quantity of a Schedule 3 chemical in a mixture for declaration 
purposes. The quantity of each Schedule 3 chemical contained in a 
mixture must be counted for declaration purposes only if the 
concentration of each Schedule 3 chemical in the mixture is 80% or more 
by

[[Page 161]]

volume or by weight, whichever yields the lesser percent.
    (ii) How to count the amount of a 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) 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. Form B is optional.
    (2) 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. Do not aggregate amounts of production from plants on the 
plant site that did not individually produce a 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 site. A plant site that submitted 
a declaration pursuant to paragraph (a)(1) of this section is a 
``declared'' Schedule 3 plant site.
    (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 the CWCR) if:
    (1) The declared plants on your plant site produced in excess of 200 
metric tons aggregate of any Schedule 3 chemical during the previous 
calendar year; or
    (2) You anticipate that the declared plants on your plant site will 
produce in excess of 200 metric tons aggregate of any Schedule 3 
chemical during the next calendar year.



Sec.  714.2  Annual reporting requirements for exports and imports
in excess of 30 metric tons of Schedule 3 chemicals.

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

    Note 1 toSec. 714.2(a)(1): Declared and undeclared plant sites 
must count, for reporting purposes, all exports from and imports to the 
entire plant site, not only from or to individual plants on the plant 
site.
    Note 2 toSec. 714.2(a)(1): 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.

    (2) 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

[[Page 162]]

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 toSec. 714.2(a)(2): The ``80% and above'' mixtures rule 
applies only for reporting 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 BIS (see 15 CFR 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)).

    (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 from or imported to your plant site in excess of 30 
metric tons of that same Schedule 3 chemical, you must report the export 
or import by either:
    (A) Completing question 3-3.3 on Form 3-3 on your declaration for 
that same Schedule 3 chemical; 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 is declared for production of a Schedule 3 
chemical and you exported or imported in excess of 30 metric tons of a 
different Schedule 3 chemical, you must report the export or import by 
either:
    (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, a 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 calendar year, you 
must report all exports and imports of that chemical by country of 
destination or country of origin, respectively, and indicate the total 
amount exported to or imported from each country.
    (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 and then round to the nearest 0.1 metric 
tons.

    Note toSec. 714.2(c): 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, with a 
quantitative breakdown for each country or destination involved. The 
U.S. Government will not submit your company-specific information 
relating to the export or import of a Schedule 3 chemical reported under 
thisSec. 714.2. 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.  714.3  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 
underSec. 714.1(a)(1)(ii) of the CWCR will produce a Schedule 3 
chemical above the declaration threshold;
    (ii) You plan to produce at a plant declared underSec. 
714.1(a)(1)(ii) of the CWCR 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

[[Page 163]]

the amount exceeding the applicable declaration threshold to an amount 
exceeding the applicable inspection threshold (seeSec. 716.1(b)(3) of 
the CWCR); 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 underSec. 714.1(a)(1)(ii) of the CWCR.
    (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 also should 
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.  714.4  Amended declaration or report.

    In order for BIS to maintain accurate information on previously 
submitted plant site declarations, including information necessary to 
facilitate inspection notifications and activities or to communicate 
declaration or reporting requirements, amended declarations or reports 
will be required under the following circumstances described in this 
section. This section applies only to annual declarations on past 
activities and annual reports on exports and imports submitted for the 
previous calendar year or annual declarations on anticipated activities 
covering the current calendar year, unless specified otherwise in a 
final inspection report.
    (a) Changes to information that directly affects a declared plant 
site's Annual Declaration of Past Activities (ADPA) or Combined Annual 
Declaration or Report which was previously submitted to BIS. You must 
submit an amended declaration or report to BIS within 15 days of 
determining that there has been a change in any of the following 
information that you have previously declared or reported:
    (1) Types of Schedule 3 chemicals produced (e.g., production of 
additional Schedule 3 chemicals);
    (2) Production range (e.g., from 30 to 200 metric tons to above 200 
to 1000 metric tons) of Schedule 3 chemicals;
    (3) Purpose of Schedule 3 chemical production (e.g., additional end-
uses); or
    (4) Addition of new plant(s) for production of Schedule 3 chemicals.
    (b) Changes to export or import information submitted in Annual 
Reports on Exports and Imports from undeclared plant sites, trading 
companies and U.S. persons. You must submit an amended report or amended 
combined declaration and report to BIS within 15 days of any change in 
the following export or import information:
    (1) Types of Schedule 3 chemicals exported or imported (additional 
Schedule 3 chemicals);
    (2) Quantities of Schedule 3 chemicals exported or imported;
    (3) Destination(s) of Schedule 3 chemicals exported; and
    (4) Source(s) of Schedule 3 chemicals imported.
    (c) Changes to company and plant site information submitted in the 
ADPA, the Annual Declaration of Anticipated Activities, and the Annual 
Report on Exports and Imports--(1) Internal company changes. You must 
submit an amended declaration or report to BIS within 30 days of any 
change in the following information:
    (i) Name of declaration/report point of contact (D-POC), including 
telephone number, facsimile number, and e-mail address;
    (ii) Name(s) of inspection point(s) of contact (I-POC), including 
telephone number, and facsimile number, and e-mail address(es);
    (iii) Company name (see 714.4(c)(2) for other company changes);
    (iv) Company mailing address;
    (v) Plant site name;
    (vi) Plant site owner, including telephone number and facsimile 
number;
    (vii) Plant site operator, including telephone number and facsimile 
number;
    (viii) Plant name;

[[Page 164]]

    (xi) Plant owner, including telephone number and facsimile number; 
and
    (x) Plant operator, including telephone number and facsimile number.
    (2) Change in ownership of company, plant site, or plant. If you 
sold or purchased a declared company, plant site or plant, you must 
submit an amended declaration or report to BIS, either before the 
effective date of the change or within 30 days after the effective date 
of the change. The amended declaration or report must include the 
following information.
    (i) Information that must be submitted to BIS by a company selling a 
declared plant site:
    (A) Name of seller (i.e., name of the company selling a declared 
plant site);
    (B) Name of declared plant site and U.S. Code Number for that plant 
site;
    (C) Name of purchaser (i.e., name of company purchasing a declared 
plant site) and identity of the new owner and contact person for the 
purchaser, if known;
    (D) Date of ownership transfer;
    (E) Additional (e.g., unique) details on the sale of the plant site 
relevant to ownership or operational control over any portion of the 
declared plant site (e.g., whether the entire plant site or only a 
portion of the declared plant site has been sold to a new owner); and
    (F) Details regarding whether the new owner will submit the 
declaration or report for the entire calendar year during which the 
ownership change occurred, or whether the previous owner and the new 
owner will submit separate declarations or reports for the periods of 
the calendar year during which each owned the plant site or trading 
company.
    (1) If the new owner is responsible for submitting the declaration 
or report for the entire current year, it must have in its possession 
the records for the period of the year during which the previous owner 
owned the plant site or trading company.
    (2) If the previous owner and new owner will submit separate 
declarations or reports for the periods of the calendar year during 
which each owned the plant site or trading company, and, at the time of 
transfer of ownership, the previous owner's activities are not above the 
declaration or reporting thresholds set forth inSec. 714.1(a)(1) and 
Sec.  714.2(a)(1) of the CWCR, respectively, the previous owner and the 
new owner must still submit declarations to BIS with the below threshold 
quantities indicated.
    (3) If the part-year declarations submitted by the previous owner 
and the new owner are not, when combined, above the declaration 
threshold set forth inSec. 714.1(a)(1) of the CWCR, BIS will return 
the declarations without action as set forth inSec. 714.5 of the CWCR.
    (4) If part-year reports are not, when combined, above the reporting 
threshold set forth inSec. 714.2(a)(1) of the CWCR, BIS will return 
the reports without action as set forth inSec. 714.5 of the CWCR.
    (ii) Information that must be submitted to BIS by the company 
purchasing a declared plant site:
    (A) Name of purchaser (i.e., name of individual or company 
purchasing a declared plant site);
    (B) Mailing address of purchaser;
    (C) Name of declaration point of contact (D-POC) for the purchaser, 
including telephone number, facsimile number, and e-mail address;
    (D) Name(s) of inspection point(s)s of contact (I-POC) for the 
purchaser, including telephone number, facsimile number, and e-mail 
address(es);
    (E) Name of the declared plant site and U.S. Code Number for that 
plant site;
    (F) Location of the declared plant site;
    (G) Operator of the declared plant site, including telephone number, 
and facsimile number;
    (H) Name of plant where Schedule 3 production exceeds the 
declaration threshold;
    (I) Owner of plant where Schedule 3 production exceeds the 
declaration threshold;
    (J) Operator of plant where Schedule 3 production exceeds the 
declaration threshold; and
    (K) Details on the next declaration or report submission on whether 
the new owner will submit the declaration or report for the entire 
calendar year during which the ownership change occurred, or whether the 
previous owner and new owner will submit separate

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declarations or reports for the periods of the calendar year during 
which each owned the plant site or trading company.

    Note 1 toSec. 714.4(c): You must submit an amendment to your most 
recently submitted declaration or report for declaring changes to 
internal company information (e.g., company name change) or changes in 
ownership of a facility or trading company that have occurred since the 
submission of this declaration or report. BIS will process the amendment 
to ensure current information is on file regarding the facility or 
trading company (e.g., for inspection notifications and correspondence) 
and will also forward the amended declaration to the OPCW to ensure that 
they also have current information on file regarding your facility or 
trading company.
    Note 2 toSec. 714.4(c): You may notify BIS of change in ownership 
via a letter to the address given inSec. 711.6 of the CWCR. If you are 
submitting an amended declaration or report, use Form B to address 
details regarding the sale of the declared plant site or trading 
company.
    Note 3 toSec. 714.4(c): For ownership changes, the declared plant 
site or trading company will maintain its original U.S. Code Number, 
unless the plant site or trading company is sold to multiple owners, at 
which time BIS will assign new U.S. Code Numbers.

    (d) Inspection-related amendments. If, following the completion of 
an inspection (see parts 716 and 717 of the CWCR), you are required to 
submit an amended declaration based on the final inspection report, BIS 
will notify you in writing of the information to be amended pursuant to 
Sec.Sec. 716.10 and 717.5(b) of the CWCR. Amended declarations must be 
submitted to BIS no later than 45 days following your receipt of BIS's 
post-inspection letter.
    (e) Non-substantive changes. If, subsequent to the submission of 
your declaration or report to BIS, you discover one or more non-
substantive typographical errors in your declaration or report, you are 
not required to submit an amended declaration or report to BIS. Instead, 
you may correct these errors in a subsequent declaration or report.
    (f) Documentation required for amended declarations or reports. If 
you are required to submit an amended declaration or report to BIS 
pursuant to paragraph (a), (b), (c), or (d) of this section, you must 
submit either:
    (1) A letter containing all of the corrected information required, 
in accordance with the provisions of this section, to amend your 
declaration or report; or
    (2) Both of the following:
    (i) A new Certification Form; and
    (ii) The specific forms required for the declaration or report type 
being amended (e.g., annual declaration on past activities) containing 
the corrected information required, in accordance with the requirements 
of this section, to amend your declaration or report.



Sec.  714.5  Declarations and reports returned without action by BIS.

    If you submit a declaration or report and BIS determines that the 
information contained therein is not required by the CWCR, BIS will 
return the original declaration or report to you, without action, 
accompanied by a letter explaining BIS's decision. In order to protect 
your confidential business information, BIS will not maintain a copy of 
any declaration or report that is returned without action. However, BIS 
will maintain a copy of the RWA letter.



Sec.  714.6  Deadlines for submission of Schedule 3 declarations, 
reports, and amendments.

    Declarations, reports, and amendments required under this part must 
be postmarked by the appropriate date identified in Supplement No. 2 to 
this part 714 of the CWCR. Required declarations, reports, and 
amendments include:
    (a) Annual declaration on past activities (production of Schedule 3 
chemicals during the previous calendar year);
    (b) Annual report on exports and imports of Schedule 3 chemicals 
from plant sites, trading companies, and other persons subject to the 
CWCR (during the previous calendar year);
    (c) Combined declaration and report (production of Schedule 3 
chemicals, as well as exports or imports of the same or different 
Schedule 3 chemicals, by a declared plant site during the previous 
calendar year);
    (d) Annual declaration on anticipated activities (anticipated 
production of

[[Page 166]]

Schedule 3 chemicals during the next calendar year);
    (e) Declaration on Additionally Planned Activities (additionally 
planned production of Schedule 3 chemicals); and
    (f) Amended declaration and report, including combined declaration 
and report.



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

------------------------------------------------------------------------
                                                          (CAS registry
                                                             number)
------------------------------------------------------------------------
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)
------------------------------------------------------------------------
Note to Supplement No. 1: Refer to Supplement No. 1 to part 774 of the
  Export Administration Regulations (the Commerce Control List), ECCNs
  1C350 and 1C355, for export controls related to Schedule 3 chemicals.



Sec. Supplement No. 2 to Part 714--Deadlines for Submission of Schedule 
                 3 Declarations, Reports, and Amendments

------------------------------------------------------------------------
          Declarations             Applicable forms        Due dates
------------------------------------------------------------------------
Annual Declaration on Past        Certification, 3-   February 28 of the
 Activities (previous calendar     1, 3-2, 3-3 (if     year following
 year)--Declared plant site        also exported or    any calendar year
 (production).                     imported), A (as    in which the
                                   appropriate), B     production of a
                                   (optional).         Schedule 3
                                                       chemical exceeded
                                                       the declaration
                                                       threshold in Sec.
                                                         714.1(a)(1)(i)
                                                       of the CWCR.
Annual Report on Exports and      Certification, 3-   February 28 of the
 Imports (previous calendar        1, 3-3.3 and 3-     year following
 year)--Plant site, trading        3.4, A (as          any calendar year
 company, other persons.           appropriate), B     in which exports
                                   (optional).         or imports of a
                                                       Schedule 3
                                                       chemical by a
                                                       plant site,
                                                       trading company,
                                                       or other person
                                                       subject to the
                                                       CWCR (as
                                                       described in Sec.
                                                         714.2(a) of the
                                                       CWCR) exceeded
                                                       the threshold in
                                                     Sec. 714.2(a)
                                                       of the CWCR.
Combined Declaration & Report...  Certification, 3-   February 28 of the
                                   1, 3-2, and 3-3,    year following
                                   A (as               any calendar year
                                   appropriate), B     in which the
                                   (optional).         production of a
                                                       Schedule 3
                                                       chemical and the
                                                       export or import
                                                       of the same or a
                                                       different
                                                       Schedule 3
                                                       chemical by a
                                                       declared plant
                                                       site exceeded the
                                                       applicable
                                                       thresholds in
                                                      Sec. Sec.
                                                       714.1(a)(1)(i)
                                                       and 714.2(a),
                                                       respectively, of
                                                       the CWCR.
Annual Declaration on             Certification, 3-   September 3 of the
 Anticipated Activities            1, 3-2, 3-3.2, A    year prior to any
 (Production) (next calendar       (as appropriate),   calendar year in
 year).                            B (optional).       which Schedule 3
                                                       production is
                                                       anticipated to
                                                       occur.
Declaration on Additionally       Certification, 3-   15 calendar days
 Planned Activities.               1, 3-3.1 and 3-     before the
                                   3.2, A (as          additionally
                                   appropriate), B     planned activity
                                   (optional).         begins.
Amended Declaration.............  Certification, 3-
                                   1, 3-2, 3-3.
    --Declaration information...  ..................  --15 calendar days
                                                       after change in
                                                       information.
    --Company information.......  ..................  --30 calendar days
                                                       after change in
                                                       information.
    --Post-inspection letter....  ..................  --45 calendar days
                                                       after receipt of
                                                       letter.
Amended Report..................  Certification, 3-   --15 calendar days
                                   1, 3-2, 3-3, A      after change in
                                   (as appropriate),   information.
                                   B (optional).

[[Page 167]]

 
Amended Combined Declaration &    Certification, 3-   --15 calendar days
 Report.                           1, 3-2, 3-3, A      after change in
                                   (as appropriate),   information.
                                   B (optional).
------------------------------------------------------------------------



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



Sec.
715.1 Annual declaration requirements for production by synthesis of 
          unscheduled discrete organic chemicals (UDOCs).
715.2 Amended declaration.
715.3 Declarations returned without action by BIS.
715.4 Deadlines for submitting UDOC declarations, No Changes 
          Authorization Forms, Change in Inspection Status Forms, and 
          amendments.

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
Supplement No. 3 to Part 715--Deadlines for Submission of Declarations, 
          No Changes Authorization Forms, Amendments for Unscheduled 
          Discrete Organic Chemical (UDOC) Facilities, and Change in 
          Inspection Status Forms

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.



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

    (a) Declaration of production by synthesis of UDOCs for purposes not 
prohibited by the CWC--(1) Production quantities that trigger the 
declaration requirement. SeeSec. 711.6 of the CWCR for information on 
obtaining the forms you will need to declare production of unscheduled 
discrete organic chemicals. 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'') during the previous calendar year; or
    (ii) In excess of 30 metric tons of an individual PSF chemical at 
one or more plants at your plant site during the previous calendar year.

    Note toSec. 715.1(a)(1)(ii): In calculating the aggregate 
production quantity of each individual PSF chemical produced by a PSF 
plant, do not include production of a PSF chemical that was produced in 
quantities less than 30 metric tons. Include only production quantities 
from those PSF plants that produced more than 30 metric tons of an 
individual PSF chemical.

    (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;
    (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 toSec. 715.1(a)(2): See Supplement No. 2 to this part 715 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.

[[Page 168]]

    (b) Types of declaration forms to be used--(1) Annual declaration on 
past activities. You must complete the Certification Form and Form UDOC 
(consisting of two pages), unless there are no changes from the previous 
year's declaration and you submit a No Changes Authorization Form 
pursuant to paragraph (b)(2) of this section. Attach Form A as 
appropriate; Form B is optional.

    Note toSec. 715.1(b)(1): If there is a change in the inspection 
status of your plant site, as described in paragraph (d)(2) of this 
section, you may submit an Annual Declaration on Past Activities, in 
lieu of a Change in Inspection Status Form, under the circumstances 
described in Note 3 to paragraph (d)(2). In this case, the due date for 
submitting the Annual Declaration on Past Activities to BIS, covering 
UDOC production at your plant site during the current calendar year, 
would be December 15th of the current calendar year, instead of February 
28th of the next calendar year (also see Supplement No. 3 to this part). 
If you choose to submit your Annual Declaration on Past Activities to 
BIS by December 15th and, subsequently, you determine that the 
production by synthesis of UDOCs at your plant site actually exceeded 
the UDOC inspection threshold level specified in paragraph (d)(1) of 
this section, you must submit an amendment to your Annual Declaration on 
Past Activities (seeSec. 715.2 of the CWCR) and indicate, on Form B, 
the reason your plant site exceeded the UDOC inspection threshold.

    (2) No Changes Authorization Form. You may complete the No Changes 
Authorization Form if there are no updates or changes to any information 
(except the certifying official and dates signed and submitted) in your 
plant site's previously submitted annual declaration on past activities. 
Your plant site's activities will be declared to the OPCW and subject to 
inspection, if applicable, based upon the data reported in the most 
recent UDOC Declaration that you submitted to BIS.

    Note toSec. 715.1(b)(2): If, after submitting the No Changes 
Authorization Form, you have changes to information, you must submit a 
complete amendment to the annual declaration on past activities. See 
Sec.  715.2 of the CWCR.

    (c) ``Declared'' UDOC plant site. A plant site that submitted a 
declaration pursuant to paragraph (a)(1) of this section is a 
``declared'' UDOC plant site.
    (d) Routine inspections of declared UDOC plant sites. (1) Inspection 
requirement. A ``declared'' UDOC plant site is subject to routine 
inspection by the Organization for the Prohibition of Chemical Weapons 
(OPCW) (see part 716 of the CWCR) if it produced by synthesis more than 
200 metric tons aggregate of UDOCs during the previous calendar year.
    (2) Change in inspection status. You may complete the Change in 
Inspection Status Form, to ensure that your facility does not remain 
subject to inspection during the first 90 days of the next calendar year 
(i.e., prior to the submission of the U.S. declaration to the OPCW), if:
    (i) Your plant site is currently subject to inspection, pursuant to 
paragraph (d)(1) of this section, based on your plant site's production 
by synthesis of UDOCs during the previous calendar year; and
    (ii) Your plant site's production by synthesis of UDOCs in the 
current calendar year will be below the inspection threshold level 
specified in paragraph (d)(1) of this section by the deadline indicated 
in Supplement No. 3 to this part, and is anticipated to remain below 
that threshold level through the remainder of the current calendar year.

    Note 1 toSec. 715.1(d)(2): Upon receipt of the Change in 
Inspection Status Form, BIS will inform the Organization for the 
Prohibition of Chemical Weapons (OPCW) that your plant site is not 
subject to inspection during the next calendar year.
    Note 2 toSec. 715.1(d)(2): If, after submitting your Change in 
Inspection Status Form to BIS, you determine that the production by 
synthesis of UDOCs at your plant site actually exceeded the UDOC 
inspection threshold level specified in paragraph (d)(1) of this 
section, you must indicate this fact when you submit your Annual 
Declaration on Past Activities to BIS and indicate, on Form B, the 
reason your plant site exceeded the UDOC inspection threshold.
    Note 3 toSec. 715.1(d)(2): You may submit the Annual Declaration 
on Past Activities described in paragraph (b)(1) of this section, 
instead of the Change in Inspection Status Form, if you anticipate that 
UDOC production at your plant site during the current calendar year will 
be below the inspection threshold level specified in paragraph (d)(1) of 
this section, but you expect your plant site to remain subject to the 
UDOC declaration requirements in paragraph (a)(1) of this

[[Page 169]]

section. In this case, the due date for the Annual Declaration on Past 
Activities will be December 15th of the current calendar year, instead 
of February 28th of the next calendar year. Note that any changes to 
information contained in the Annual Declaration on Past Activities must 
be addressed in accordance with the amendment requirements inSec. 
715.2 of the CWCR. For example, if subsequent to the submission of your 
Annual Declaration on Past Activities to BIS on December 15th, you 
determine that the production by synthesis of UDOCs at your plant site 
actually exceeded the UDOC inspection threshold level specified in 
paragraph (d)(1) of this section, you must submit an amendment to your 
Annual Declaration on Past Activities (seeSec. 715.2 of the CWCR) and 
indicate, on Form B, the reason your plant site exceeded the UDOC 
inspection threshold.
    Note 4 toSec. 715.1(d)(2): Currently inspectable UDOC plant sites 
that do not submit either a Change in Inspection Status Form or Annual 
Declaration of Past Activities by December 15th of the current calendar 
year, in accordance with paragraph (d)(2) of this section, will remain 
subject to inspection through at least the 90-day period at the 
beginning of the next calendar year.

[71 FR 24929, Apr. 27, 2006, as amended at 72 FR 14408, Mar. 28, 2007]



Sec.  715.2  Amended declaration.

    In order for BIS to maintain accurate information on previously 
submitted plant site declarations, including current information 
necessary to facilitate inspection notifications and activities or to 
communicate declaration requirements, amended declarations will be 
required under the following circumstances described in this section. 
This section applies only to annual declarations on past activities 
submitted for the previous calendar year, unless specified otherwise in 
a final inspection report.
    (a) Changes to information that directly affects a declared plant 
site's Annual Declaration of Past Activities (ADPA) which was previously 
submitted to BIS. You must submit an amended declaration to BIS within 
15 days of any change in the following information:
    (1) Product group codes for UDOCs produced in quantities exceeding 
the applicable declaration threshold specified inSec. 715.1(a)(1) of 
the CWCR;
    (2) Approximate number of plants at the declared plant site that 
produced any amount of UDOCs (including all PSF chemicals);
    (3) Aggregate amount of production (by production range) of UDOCs 
produced by all plants at the declared plant site;
    (4) Exact number of plants at the declared plant site that 
individually produced more than 30 metric tons of a single PSF chemical; 
and
    (5) Production range of each plant at the declared plant site that 
individually produced more than 30 metric tons of a single PSF chemical.
    (b) Changes to company and plant site information submitted in the 
ADPA that must be maintained by BIS--(1) Internal company changes. You 
must submit an amended declaration to BIS within 30 days of any change 
in the following information:
    (i) Name of declaration point of contact (D-POC), including 
telephone number, facsimile number, and e-mail address;
    (ii) Name(s) of inspection point(s) of contact (I-POC), including 
telephone number, facsimile number(s) and e-mail address(es);
    (iii) Company name (see 715.2(b)(2) for other company changes);
    (iv) Company mailing address;
    (v) Plant site name;
    (vi) Plant site owner, including telephone number and facsimile 
number; and
    (vii) Plant site operator, including telephone number and facsimile 
number.
    (2) Change in ownership of company or plant site. If you sold or 
purchased a declared plant site, you must submit an amended declaration 
to BIS, either before the effective date of the change or within 30 days 
after the effective date of the change. The amended declaration must 
include the following information.
    (i) Information that must be submitted to BIS by the company selling 
a declared plant site:
    (A) Name of seller (i.e., name of company selling a declared plant 
site);
    (B) Name of declared plant site name and U.S. Code Number for that 
plant site;
    (C) Name of purchaser (i.e., name of new company purchasing a 
declared plant site) and identity of contact person for the purchaser, 
if known;

[[Page 170]]

    (D) Date of ownership transfer or change;
    (E) Additional details on the sale of the declared plant site 
relevant to ownership or operational control over any portion of the 
declared plant site (e.g., whether the entire plant site or only a 
portion of the declared plant site has been sold to a new owner); and
    (F) Details regarding whether the new owner will submit the 
declaration for the entire calendar year during which the ownership 
change occurred, or whether the previous owner and new owner will submit 
separate declarations for the periods of the calendar year during which 
each owned the plant site.
    (1) If the new owner is responsible for submitting the declaration 
for the entire current year, it must have in its possession the records 
for the period of the year during which the previous owner owned the 
plant site.
    (2) If the previous owner and new owner will submit separate 
declarations for the periods of the calendar year during which each 
owned the plant site, and, if at the time of transfer of ownership, the 
previous owner's activities are not above the declaration thresholds set 
forth inSec. 715.1(a)(1) of the CWCR, the previous owner and the new 
owner must still submit declarations to BIS with the below threshold 
quantities indicated.
    (3) If the part-year declarations submitted by the previous owner 
and the new owner are not, when combined, above the declaration 
threshold set forth inSec. 715.1(a)(1) of the CWCR, BIS will return 
the declarations without action as set forth inSec. 715.3 of the CWCR.
    (ii) Information that must be submitted to BIS by the company 
purchasing a declared plant site:
    (A) Name of purchaser (i.e., name of individual or company 
purchasing a declared plant site);
    (B) Mailing address of purchaser;
    (C) Name of declaration point of contact (D-POC) for the purchaser, 
including telephone number, facsimile number, and e-mail address;
    (D) Name(s) of inspection point(s) of contact (I-POC) for the 
purchaser, including telephone number(s), facsimile number(s), and e-
mail address(es);
    (E) Name of the declared plant site and U.S. Code Number for that 
plant site;
    (F) Location of the declared plant site;
    (G) Name of plant site where the production of UDOCs exceeds the 
applicable declaration threshold;
    (H) Owner of plant site where the production of UDOCs exceeds the 
applicable declaration threshold, including telephone number and 
facsimile number;
    (I) Operator of plant site where the production of UDOCs exceeds the 
applicable declaration threshold, including telephone number and 
facsimile number; and
    (J) Details on the next declaration or report submission on whether 
the new owner will submit the declaration or report for the entire 
calendar year during which the ownership change occurred, or whether the 
previous owner and new owner will submit separate declarations or report 
for the periods of the calendar year during which each owned the plant 
site.

    Note 1 toSec. 715.2(b): You must submit an amendment to your most 
recently submitted declaration or report for declaring changes to 
internal company information (e.g., company name change) or changes in 
ownership of a facility or trading company that have occurred since the 
submission of this declaration or report. BIS will process the amendment 
to ensure current information is on file regarding the facility or 
trading company (e.g., for inspection notifications and correspondence) 
and will also forward the amended declaration to the OPCW to ensure that 
they also have current information on file regarding your facility or 
trading company.
    Note 2 toSec. 715.2(b): You may notify BIS of change in ownership 
via a letter to the address given inSec. 711.6 of the CWCR. If you are 
submitting an amended declaration, use Form B to address details 
regarding the sale of the declared plant site.
    Note 3 toSec. 715.2(b): For ownership changes, the declared plant 
site will maintain its original U.S. Code Number, unless the plant site 
is sold to multiple owners, at which time BIS will assign new U.S. Code 
Numbers.

    (c) Inspection-related amendments. If, following completion of an 
inspection (see part 716 or 717 of the CWCR), you are required to submit 
an amended declaration based on the final inspection report, BIS will 
notify you in writing

[[Page 171]]

of the information that will be required pursuant to Sec.Sec. 716.10 
and 717.5 of the CWCR. You must submit an amended declaration to BIS no 
later than 45 days following your receipt of BIS's post-inspection 
letter.
    (d) Non-substantive changes. If, subsequent to the submission of 
your declaration to BIS, you discover one or more non-substantive 
typographical errors in your declaration, you are not required to submit 
an amended declaration to BIS. Instead, you may correct these errors in 
a subsequent declaration.
    (e) Documentation required for amended declarations. If you are 
required to submit an amended declaration to BIS pursuant to paragraph 
(a), (b), or (c) of this section, you must submit either:
    (1) A letter containing all of the corrected information required, 
in accordance with the provisions of this section, to amend your 
declaration; or
    (2) Both of the following:
    (i) A new Certification Form; and
    (ii) The specific form required for the declaration containing the 
corrected information required, in accordance with the requirements of 
this section, to amend your declaration.



Sec.  715.3  Declarations returned without action by BIS.

    If you submit a declaration and BIS determines that the information 
contained therein is not required by the CWCR, BIS will return the 
original declaration to you, without action, accompanied by a letter 
explaining BIS's decision. In order to protect your confidential 
business information, BIS will not maintain a copy of any declaration 
that is returned without action. However, BIS will maintain a copy of 
the RWA letter.



Sec.  715.4  Deadlines for submitting UDOC declarations, No Changes 
Authorization Forms, Change in Inspection Status Forms, and amendments.

    Declarations, No Changes Authorization Forms, Change in Inspection 
Status Forms, and amendments required under this part must be postmarked 
by the appropriate dates identified in Supplement No. 3 to this part 715 
of the CWCR. Required documents under this part include:
    (a) Annual Declaration on Past Activities (UDOC production during 
the previous calendar year);
    (b) No Changes Authorization Form (may be completed and submitted to 
BIS when there are no changes to any information in your plant site's 
previously submitted annual declaration on past activities, except the 
certifying official and the dates signed and submitted); and
    (c) Change in Inspection Status Form--May be completed and submitted 
to BIS if your plant site is currently subject to inspection, pursuant 
toSec. 715.1(d)(1) of the CWCR, and you anticipate that the production 
of UDOCs at your plant site during the current calendar year will remain 
below the inspection threshold level indicated therein (i.e., 200 metric 
tons aggregate); and
    (d) Amended declaration.

[71 FR 24929, Apr. 27, 2006, as amended at 72 FR 14408, Mar. 28, 2007]



Sec. 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 the CWCR). 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 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

[[Page 172]]

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 in 
this Note, and carbon (e.g., calcium carbide 
(CaC2)), are exempt from declaration requirements 
(seeSec. 715.1(a)(2)(ii)(D) of the CWCR).



  Sec. 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) UDOCs that are intermediates and that are used in a single or 
multi-step process to produce another declared UDOC.
    (2) Examples of UDOCs that you must declare under part 715 of the 
CWCR 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 of the CWCR, which means 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.

Supplement No. 3 to Part 715-- Deadlines for Submission of Declarations, 
  No Changes Authorization Forms, Amendments for Unscheduled Discrete 
  Organic Chemical (UDOC) Facilities, and Change in Inspection Status 
                                  Forms

------------------------------------------------------------------------
          Declarations             Applicable forms        Due dates
------------------------------------------------------------------------
Annual Declaration on Past        Certification,      February 28 of the
 Activities (previous calendar     UDOC, A (as         year following
 year).                            appropriate), B     any calendar year
Declared plant site.............   (optional).         in which the
                                                       production by
                                                       synthesis of
                                                       UDOCs exceeded
                                                       the applicable
                                                       declaration
                                                       threshold in Sec.
                                                         715.1(a)(1) of
                                                       the CWCR.*
No Changes Authorization Form     No Changes          February 28 of the
 (declaration required, but no     Authorization       year following
 changes to data contained in      Form.               any calendar year
 previously submitted annual                           in which the
 declaration on past activities--                      production by
 previous calendar year).                              synthesis of
Declared plant site.............                       UDOCs exceeded
                                                       the applicable
                                                       declaration
                                                       threshold in Sec.
                                                         715.1(a)(1) of
                                                       the CWCR.
Amended Declaration:............  Certification,      ..................
                                   UDOC, A (as
                                   appropriate), B
                                   (optional).
    --Declaration information...  ..................  --15 calendar days
                                                       after change in
                                                       information.
    --Company information.......  ..................  --30 calendar days
                                                       after change in
                                                       information.
    --Post-inspection letter....  ..................  --45 calendar days
                                                       after receipt of
                                                       letter.
Change in Inspection Status Form  Change in           December 15th of
 (applies only if your plant       Inspection Status   any calendar year
 site is currently subject to      Form.               in which the
 inspection, pursuant toSec.                         production by
 715.1(d)(1) of the CWCR, and                          synthesis of
 you anticipate that the                               UDOCs is
 production by synthesis of                            anticipated to be
 UDOCs at your plant site during                       below the
 the current calendar year will                        inspection
 remain below the inspection                           threshold level
 threshold level specified                             specified in Sec.
 therein).                                               715.1(d)(1) of
                                                       the CWCR.*
------------------------------------------------------------------------
* You may submit the Annual Declaration on Past Activities (ADPA)
  described inSec.  715.1(b)(1), instead of the Change in Inspection
  Status Form, if you anticipate that UDOC production at your plant site
  during the current calendar year will be below the inspection
  threshold level specified inSec.  715.1(d)(1), but you expect your
  plant site to remain subject to the UDOC declaration requirements in
Sec. 715.1(a)(1). In this case, the due date for the Annual
  Declaration on Past Activities will be December 15th of the current
  calendar year, instead of February 28th of the next calendar year.


[[Page 173]]


[72 FR 14408, Mar. 28, 2007]



PART 716_INITIAL AND ROUTINE INSPECTIONS OF DECLARED FACILITIES

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.
716.10 Post-inspection activities.

Supplement No. 1 to Part 716--Notification, Duration, and Frequency of 
          Inspections
Supplement Nos. 2-3 to Part 716 [Reserved]

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, 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 the CWCR 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 inspection teams employed by the Organization for the Prohibition of 
Chemical Weapons (OPCW) to ensure that activities are consistent with 
obligations under the Convention. BIS is responsible for leading, 
hosting and escorting inspections of all facilities subject to the 
provisions of the CWCR (seeSec. 710.2 of the CWCR).
    (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 the CWCR, your facility is subject to an initial 
inspection within 200 days of submitting an initial declaration.

    Note toSec. 716.1(b)(1): All Schedule 1 facilities submitting a 
declaration are subject to inspection.

    (2) Schedule 2 plant sites--(i) Inspection thresholds for Schedule 2 
plant sites. 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 the CWCR);
    (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 the CWCR); or
    (C) 10 metric tons of any chemical listed in Schedule 2, Part B (see 
Supplement No. 1 to part 713 of the CWCR).
    (ii) Initial inspection for new Schedule 2 plant sites. Your 
declared plant site is subject to an initial inspection within the first 
year after submitting a declaration, if at least one plant on your plant 
site produced, processed or consumed in any of the three previous 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 threshold quantities set forth in paragraphs 
(b)(2)(i)(A) through (C) of this section.

    Note toSec. 716.1(b)(2): The applicable inspection threshold for 
Schedule 2 plant sites is

[[Page 174]]

ten times higher than the applicable declaration threshold. Only 
declared plant sites, comprising at least one declared plant that 
exceeds the applicable inspection threshold, are subject to inspection.

    (3) Schedule 3 plant sites. 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 they will produce in the next 
calendar year, in excess of 200 metric tons aggregate of any Schedule 3 
chemical.

    Note toSec. 716.1(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. Your declared 
plant site is subject to inspection if it produced by synthesis more 
than 200 metric tons aggregate of unscheduled discrete organic chemicals 
(UDOC) during the previous calendar year.

    Note 1 toSec. 716.1(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.

    Note 2 toSec. 716.1(b)(4): All UDOC plant sites that submit a 
declaration based onSec. 715.1(a)(1)(i) of the CWCR are subject to a 
routine inspection.
    Note 3 to paragraph (b)(4): Any UDOC plant site that is eligible, in 
accordance withSec. 715.1(d)(2) of the CWCR, to submit a Change in 
Inspection Status Form or an Annual Declaration on Past Activities by 
December 15th of the current calendar year (i.e., a plant site that will 
be below the inspection threshold level indicated in paragraph (b)(4) of 
this section during the current calendar year), but that fails to do so, 
will remain subject to inspection through at least the 90-day period at 
the beginning of the next calendar year.

    (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 the CWCR under this part, BIS 
will:
    (1) Lead on-site inspections;
    (2) Provide Host Team notification to the facility of an impending 
inspection;
    (3) Take appropriate action to obtain an administrative warrant in 
the event the facility does not consent to the inspection;
    (4) 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;
    (5) Escort the Inspection Team on-site throughout the inspection 
process;
    (6) Assist the Inspection Team with verification activities;
    (7) Negotiate the development of a site-specific facility agreement, 
if appropriate (seeSec. 716.6); and
    (8) Ensure that an inspection adheres to the Convention, the Act and 
any warrant issued thereunder, and a site-specific facility agreement, 
if concluded.

[71 FR 24929, Apr. 27, 2006, as amended at 72 FR 14409, Mar. 28, 2007]



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. (A) 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 (seeSec. 716.6 of the CWCR) for the conduct of routine 
inspections.
    (B) For new Schedule 1 production facilities declared pursuant to 
Sec.  712.4 of the CWCR, the U.S. National Authority, in coordination 
with BIS, will conclude a facility agreement with the OPCW before the 
facility begins producing above 100 grams aggregate of Schedule 1 
chemicals.

[[Page 175]]

    (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 (seeSec. 716.6 of the CWCR) 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 in accordance with the provisions of the Convention;
    (B) Consistency with declarations of production, processing or 
consumption of Schedule 2 chemicals; and
    (C) Non-diversion of Schedule 2 chemicals for activities prohibited 
under the Convention.
    (ii) During initial inspections, Inspection Teams 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 
Inspection Team 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 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 (seeSec. 
716.6 of the CWCR).
    (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 (seeSec. 716.6 of the CWCR), 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 (seeSec. 716.6 of the CWCR). 
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 chemical plant sites--(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

[[Page 176]]

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 (seeSec. 716.6 of the CWCR). 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, BIS will 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 inSec. 716.2 of the CWCR 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, the 
Inspection Team:
    (i) Will receive a pre-inspection briefing from facility 
representatives;
    (ii) Will visually inspect the facilities or plants producing 
scheduled chemicals or UDOCs, which may include storage areas, feed 
lines, reaction vessels and ancillary equipment, control equipment, 
associated laboratories, first aid or medical sections, and waste and 
effluent handling areas, as necessary to accomplish their inspection;
    (iii) May visually inspect other parts or areas of the plant site to 
clarify an ambiguity that has arisen during the inspection;
    (iv) May take photographs or conduct formal interviews of facility 
personnel;
    (v) May examine relevant records; and
    (vi) 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, 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 pursuant to paragraph (a) of 
this section, except for information subject to export control under 
ITAR (22 CFR parts 120 through 130) (see paragraph (b)(3) of this 
section). 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.
    (3) ITAR-controlled technology. ITAR-controlled technology shall not 
be divulged to the Inspection Team without U.S. Government authorization 
(such technology includes, but is not limited to technical data related 
to Schedule 1 chemicals or Schedule 2 chemicals identified in Note 2 to 
Supplement No. 1 to Part 712 or Note 1 to Supplement No. 1 to Part 713, 
respectively, of the CWCR; also see 22 CFR Section 121.1, i.e., the 
United States Munitions List). Facilities being inspected are 
responsible for the identification of ITAR-controlled technology to the 
BIS Host Team, if known.

[[Page 177]]

    (c) Pre-inspection briefing. Upon arrival of the Inspection Team and 
Host Team at the inspection site and before commencement of the 
inspection, facility representatives will provide the Inspection Team 
and Host Team with 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) Facility health and safety issues and requirements, and 
associated alarm systems;
    (ii) Declared facility activities, business and manufacturing 
operations;
    (iii) Physical layout;
    (iv) Delimitation of declared facility;
    (v) Scheduled chemicals on the facility (declared and undeclared);
    (vi) Block flow diagram or simplified process flow diagram;
    (vii) Plants and units specific to declared operations;
    (viii) Administrative and logistic information; and
    (ix) Data declaration updates/revisions.
    (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) Draft facility agreement, if applicable; and
    (vi) Proposed inspection plan.
    (d) Visual plant inspection. The Inspection Team may visually 
inspect the declared plant or facility and other areas or parts of the 
plant site as agreed by the Host Team Leader after consulting with the 
facility representative.
    (e) Records review. (1) The facility must provide the Inspection 
Team with access to all supporting materials and documentation used by 
the facility to prepare declarations and to otherwise comply with the 
requirements of the CWCR. These supporting materials and documentation 
shall include records related to activities that have taken place at the 
facility since the beginning of the previous calendar year, regardless 
of whether or not the facility has submitted its current year Annual 
Declaration on Past Activities to BIS at the time of the inspection. The 
facility shall also make available for inspection all records associated 
with the movement into, around, and from the facility of declared 
chemicals and their feedstock or any product chemicals formed from such 
chemicals and feedstock. All supporting materials and documentation 
subject to the requirements of this paragraph (e) must be retained by 
the facility in accordance with the requirements ofSec. 721.2 of the 
CWCR. The facility also must permit access to and copying of these 
records, upon request by BIS or any other agency of competent 
jurisdiction, in accordance with the requirements ofSec. 721.1 of the 
CWCR.
    (2) The facility must provide access to these supporting materials 
and documentation in appropriate formats (e.g., paper copies, electronic 
remote access by computer, microfilm, or microfiche), through the U.S. 
Government Host Team to Inspection Teams, during the inspection period 
or as otherwise agreed upon by the Inspection Team and Host Team Leader.
    (3) The facility must provide the Inspection Team with appropriate 
accommodations in which to review these supporting materials and 
documentation.
    (4) If a facility does not have access to supporting materials and 
documentation for activities that took place under previous ownership, 
because such records were not transferred to the current owner of the 
facility by the previous owner (e.g., as part of the contract involving 
the sale of the facility), the previous owner must make such records 
available to the Host Team for provision to the Inspection Team in 
accordance with section 305 of the Act. However, the current owner of a 
facility, upon receiving notification of an inspection (seeSec. 716.5 
of the CWCR), is responsible for informing

[[Page 178]]

BIS if the previous owner did not transfer records for activities that 
took place under the previous ownership--this will allow BIS to contact 
the previous owner of the facility, to arrange for access to such 
records, if BIS deems them relevant to the inspection activities.
    (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 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 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 comments on the preliminary 
findings to the Inspection Team. This meeting will be completed not 
later than 24 hours after the completion of the inspection.

[71 FR 24929, Apr. 27, 2006, as amended at 72 FR 14409, Mar. 28, 2007]



Sec.  716.5  Notification, duration and frequency of inspections.

    (a) Inspection 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. 
BIS will also provide a separate inspection 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 and to the operator, occupant or agent in charge, 
BIS (or the Federal Bureau of Investigation, if BIS is unable) 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 Inspection Team members.
    (ii) Consent to inspection. In addition to appropriate information 
provided by the OPCW in its notification to the USNA, BIS's inspection 
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 
inspection notification, BIS will seek an administrative warrant. The 
current owner of a facility, upon receiving notification of an 
inspection, is also responsible for informing BIS if the previous owner 
did not transfer (to the

[[Page 179]]

current owner) records for activities that took place under the previous 
ownership (seeSec. 716.4(e) of the CWCR)--this will allow BIS to 
contact the previous owner of the facility, to arrange for access to 
such records, if BIS deems them relevant to the inspection activities.
    (iii) The following table sets forth the notification procedures for 
inspection:

                       Table toSec.  716.5(a)(1)
------------------------------------------------------------------------
            Activity                 Agency action      Facility action
------------------------------------------------------------------------
(A) OPCW notification inspection  (1) U.S. National   Acknowledges
                                   Authority           receipt of
                                   transmits actual    facsimile.
                                   written notice
                                   and inspection
                                   authorization to
                                   the owner and
                                   operator,
                                   occupant, or
                                   agent in charge
                                   via facsimile
                                   within 6 hours.
                                  (2) Upon            (A) Indicated
                                   notification from   whether it grants
                                   the U.S. National   consent.
                                   Authority, BIS     (B) May request
                                   immediately         advance team
                                   transmits           support. No
                                   inspection          requirement for
                                   notification via    reimbursement of
                                   facsimile to the    U.S. Government's
                                   inspection point    services.
                                   of contract to
                                   ascertain whether
                                   the facility (i)
                                   grants consent
                                   and (ii) requests
                                   assistance in
                                   preparing for the
                                   inspection. In
                                   absence of
                                   consent within
                                   four hours of
                                   facility receipt,
                                   BIS intends to
                                   seek an
                                   administrative
                                   warrant.
(B) Preparation for inspection..  (1) BIS advance     If advance team
                                   team generally      support is
                                   arrives in the      provided,
                                   vicinity of the     facility works
                                   facility to be      with the advance
                                   inspected 1-2       team on
                                   days after OPCW     inspection-
                                   notification for    related issues.
                                   logistical and
                                   administrative
                                   preparations.
                                  (2) If records for  The current owner
                                   activities that     of the facility
                                   took place under    must inform BIS
                                   the previous        if the previous
                                   ownership of the    owner of the
                                   facility are        facility did not
                                   deemed relevant     transfer (to the
                                   to the              current owner)
                                   inspection, BIS     records for
                                   will contact the    activities that
                                   previous owner of   took place under
                                   the facility to     the previous
                                   arrange for         ownership.
                                   access to any
                                   such records
                                   required under
                                   the CWCR that
                                   have not been
                                   transferred to
                                   the current owner.
------------------------------------------------------------------------

    (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. BIS 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. BIS 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 UDOC plant sites. For declared Schedule 3 and 
UDOC plant sites, the Technical Secretariat will notify the USNA of a 
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.

[[Page 180]]

BIS 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, and will 
be 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 there. 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. SeeSec. 
716.4(c) and (i) of the CWCR 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. SeeSec. 716.4(c) and (i) of the CWCR for a 
description of these activities.
    (3) Schedule 3 and UDOC plant sites. For declared Schedule 3 or UDOC 
plant sites, the maximum duration of routine inspections shall be 24 
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. SeeSec. 716.4(c) and (i) of the CWCR 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 two 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 Inspection Team's 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 
UDOC plant sites in the United States may not exceed 20 per calendar 
year.
    (4) UDOC 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 UDOC 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.

[[Page 181]]

    (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. For new Schedule 1 production facilities 
declared pursuant toSec. 712.4 of the CWCR, the USNA, in coordination 
with the Department of Commerce, will conclude a facility agreement with 
the OPCW before the facility begins producing above 100 grams aggregate 
of Schedule 1 chemicals.
    (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 UDOC plant sites. If the owner, operator, 
occupant or agent in charge of a declared Schedule 3 or UDOC 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, BIS 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 BIS representatives for the 
negotiation of such an agreement. During the initial or routine 
inspection of a declared facility, the Inspection Team and the Host Team 
will negotiate a draft facility agreement or amendment to a 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 the 
facility's views into consideration during negotiations. BIS 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 the 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 USNA 
shall ensure that facility agreements for Schedule 1, Schedule 2, 
Schedule 3 and UDOC facilities are concluded, as appropriate, with the 
OPCW in coordination with BIS.
    (c) [Reserved]
    (d) Further information. For further information about facility 
agreements, please write or call: Treaty Compliance Division, Bureau of 
Industry and Security, U.S. Department of Commerce, Room 4515, 14th 
Street and Pennsylvania Avenue, NW., Washington, DC 20230, Telephone: 
(202) 482-1001.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



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 the Act and 
consistent with requirements set forth by the Director of the United 
States National Authority in 22 CFR part 103. Analysis will be 
restricted to verifying the absence of undeclared scheduled chemicals, 
unless otherwise agreed after consultation with the facility 
representative.



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 the CWCR

[[Page 182]]

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 inSec. 716.6(d) of the CWCR, with the 
following notation: ``Attn: Report of inspection-related costs.''



Sec.  716.10  Post-inspection activities.

    BIS will forward a copy of the final inspection report to the 
inspected facility for their review upon receipt from the OPCW. 
Facilities may submit comments on the final inspection report to BIS, 
within the time-frame specified by BIS (i.e., at least 7 working days 
from receipt of the report), and BIS will consider them, to the extent 
possible, when commenting on the final report. BIS will also send 
facilities a post-inspection letter detailing the issues that require 
follow-up action, e.g., amended declaration requirement (see Sec.Sec. 
712.7(d), 713.5(d), 714.4(d), and 715.2(c) of the CWCR), information on 
the status of the draft facility agreement, if applicable, and the date 
on which the report on inspection-related costs (seeSec. 716.9 of the 
CWCR) is due to BIS.



Sec. 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      72 hours prior to   48 hours prior to   120 hours prior to  120 hours prior to
 inspection to USNA.               arrival of          arrival of          arrival of          arrival of
                                   Inspection Team     Inspection Team     Inspection Team     Inspection Team
                                   at the point of     at the plant site.  at the plant site.  at the plant
                                   entry (initial);                                            site.
                                   24 hours prior to
                                   arrival of
                                   Inspection Team
                                   at the point of
                                   entry (routine).
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 the CWCR.



             Sec. Supplement Nos. 2-3 to Part 716 [Reserved]



PART 717_CWC CLARIFICATION PROCEDURES (CONSULTATIONS AND CHALLENGE
INSPECTIONS)--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.
717.5 Post-inspection activities.

    Authority: 22 U.S.C. 6701 et seq., 2681; E.O. 13128, 64 FR 36703, 3 
CFR 1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.

[[Page 183]]



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. States Parties may attempt to resolve such issues 
through consultation between themselves or through the Organization for 
the Prohibition of Chemical Weapons (OPCW). A State Party may also 
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) In the event that BIS receives a request for clarification, 
pursuant to Article IX of the Convention, concerning possible non-
compliance with the CWC, any person or facility subject to the CWCR 
(parts 710 through 729 of this subchapter) that receives an official 
written request from BIS for clarification must, within five working 
days from receipt of such request, provide BIS with any relevant 
information required to respond to the OPCW or the State Party(ies) who 
requested clarification under Article IX. BIS will contact the person or 
facility subject to the Article IX clarification, as early as 
practicable, prior to issuing an official written request for 
clarification to the person or facility.



Sec.  717.2  Challenge inspections.

    Persons or facilities, other than U.S. Government facilities as 
defined inSec. 710.2(a) of the CWCR, may be subject to a challenge 
inspection by the OPCW concerning possible non-compliance with the 
requirements of the Convention, irrespective of whether or not they are 
required to submit declarations or reports under the CWCR. BIS will host 
and escort the international Inspection Team for challenge inspections 
in the United States of such persons or facilities.
    (a) Consent to challenge inspections; warrants for challenge 
inspections. (1) The owner, operator, occupant or agent in charge of a 
facility may consent to a challenge 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. The facility must 
respond to the notice of inspection, which includes within it a request 
for consent to the inspection, within four hours of the facility's 
receipt of the notice of inspection from BIS.
    (2) In instances where the owner, operator, occupant or agent in 
charge of a facility does not consent to a challenge inspection, BIS 
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) Notice 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. BIS will provide notice of inspection to the 
inspection point of contact at such time that a person or facility has 
been clearly established, if possible, and when notification is deemed 
appropriate. If the United States is unable to provide actual written 
notice to the owner and to the operator, occupant or agent in charge, 
BIS (or another appropriate agency, if BIS is unable) 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 of inspection shall include all 
appropriate information provided by the OPCW to the United States 
National Authority concerning:
    (A) The type of inspection;

[[Page 184]]

    (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 Inspection Team members; 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 notice of inspection that BIS delivers 
to the facility will request the facility to 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 
inspection notification, BIS will assist the Department of Justice in 
seeking a criminal warrant.
    (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 consents to a challenge inspection, the 
inspection will be conducted under the authority of the Act and 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 pursuant to the terms of a criminal 
warrant issued under the authority of the Act.
    (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.
    (5) Pre-inspection briefing. Upon arrival of the Inspection Team and 
the Host Team in the vicinity of the inspection site and before 
commencement of the inspection, facility representatives will provide 
the Inspection Team and the Host Team with a pre-inspection briefing 
concerning 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 may not exceed three hours.



Sec.  717.3  Samples.

    If requested by the Inspection Team, the owner, operator, occupant 
or agent in charge of a facility must provide a sample, as provided for 
in the Convention and the Act and consistent with requirements set forth 
by the Director of the United States National Authority in 22 CFR part 
103. This may be done by providing a sample, taken in the presence of 
the Inspection Team, to the U.S. Host Team leader, who will then release 
it to the Inspection Team for analysis. Analysis of the sample may be 
restricted to verifying the presence or absence of Schedule 1, 2, or 3 
chemicals, or appropriate degradation products, unless agreed otherwise.



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 the CWCR

[[Page 185]]

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 inSec. 716.6(d) of the CWCR, with the 
following notation: ``AATTN: Report of Inspection-related Costs.''



Sec.  717.5  Post-inspection activities.

    BIS will forward a copy of the final inspection report to the 
inspected facility for their review upon receipt from the OPCW. 
Facilities may submit comments on the final inspection report to BIS, 
and BIS will consider them, to the extent possible, when commenting on 
the final report. BIS will also send facilities a post-inspection letter 
detailing the issues that require follow-up action and the date on which 
the report on inspection-related costs (seeSec. 717.4 of the CWCR) is 
due to BIS.



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, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, 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 and 
personal passenger vehicles exiting the site;
    (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.



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

[[Page 186]]

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 toSec. 718.2(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 advance 
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 advance notifications of Schedule 1 imports that you 
consider to be privileged and confidential, and describe how disclosure 
would likely result in competitive harm. SeeSec. 718.3(b) of the CWCR 
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 (seeSec. 
718.3(c)(1)(ii) of the CWCR). 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 774), 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 
advance 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 statutory and regulatory authorities as follows:
    (1) Exports of Schedule 1 chemicals. Confidentiality of all 
information contained in these advance notifications will be maintained 
consistent with the non-disclosure provisions of the Export 
Administration Regulations (15 CFR parts 730 through 774), 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 advance 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

[[Page 187]]

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) The OPCW Inspection Team members are prohibited, under the terms 
of their employment contracts and pursuant to the Confidentiality Annex 
of the Convention, from disclosing to any unauthorized persons, during 
their employment and 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 advance 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 the 
CWCR provides that all hearings will be closed, unless the 
Administrative Law Judge for good cause shown determines otherwise. 
Section 719.20 of the CWCR 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

[[Page 188]]

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.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



  Sec. 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................................  Question 2-2.9
  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 the CWCR.
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.
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, 3 CFR 1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, 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 the CWCR. It also

[[Page 189]]

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. Section 719.2 of the CWCR sets forth violations 
for which the statutory basis is the Act. BIS 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 the CWCR. 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 of 
the CWCR sets forth violations of the Chemical Weapons Convention for 
which the statutory basis is the IEEPA. BIS 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 the CWCR. Section 719.4 of the CWCR sets forth 
violations and sanctions under the Act that are not violations of the 
CWCR and that are not subject to proceedings under the CWCR. This 
section is included solely for informational purposes. BIS may assist in 
investigations of these violations, but has no authority to initiate any 
enforcement action under the CWCR.

    Note toSec. 719.1(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 774) 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 of the CWCR. For definitions of terms applicable to 
parts 710 through 718 and parts 721 and 722 of the CWCR, see part 710 of 
the CWCR.
    Act (The). 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 the CWCR, the term 
``report'' means any declaration, report, or advance notification 
required under parts 712 through 715 of the CWCR.
    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, Bureau of Industry and Security. The Under 
Secretary, Bureau of Industry and Security, United States Department of 
Commerce.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



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 the 
CWCR; or
    (ii) To submit any report, notice, or other information to the 
United States

[[Page 190]]

Government in accordance with the Act or the CWCR; or
    (iii) To permit access to or copying of any record required to be 
established or maintained by the Act or the CWCR, including any record 
that is exempt from disclosure under the Act or the CWCR.
    (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 the CWCR, or to have willfully failed 
or refused to permit access to or copying of any record, including any 
record exempt from disclosure under the Act or the CWCR 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, including records 
exempt from disclosure under the Act or the 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 the CWCR 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 inSec. 712.2 of the CWCR, no 
person may import any Schedule 1 chemical (See Supplement No. 1 to part 
712 of the CWCR) 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 BIS not less than 45 calendar 
days before the import pursuant toSec. 712.6 of the CWCR.
    (2) Import restrictions involving Schedule 2 chemicals. Except as 
otherwise provided inSec. 713.1 of the CWCR, no person may, on or 
after April 29, 2000, import any Schedule 2 chemical (see Supplement No. 
1 to part 713 of the CWCR) from any destination other than a State 
Party.
    (b) Civil penalty. A civil penalty not to exceed $50,000 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 $50,000 for any violation committed on 
or after October 23, 1996 (15 CFR 6.4(a)(5)).
---------------------------------------------------------------------------

    (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 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.

[71 FR 24929, Apr. 27, 2006, as amended at 72 FR 14410, Mar. 28, 2007]

[[Page 191]]



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

    (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. 229 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) 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 BIS has conducted an investigation and intends 
to recommend that the Secretary of State issue a Notice of Violation and 
Assessment (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 of State in 
accordance with paragraph (b) of this section.
    (b) 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 thisSec. 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.
    (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,

[[Page 192]]

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 of the CWCR, 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 business days from the postmarked 
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 withSec. 719.8 of the 
CWCR.
    (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 contends 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.



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

[[Page 193]]

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 the CWCR, 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, NW., 
Room H-3839, Washington, DC 20230, or sent via facsimile 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.



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 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

[[Page 194]]

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 inSec. 719.8(b) of the CWCR.
    (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 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

[[Page 195]]

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, DC, 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 toSec. 719.16 of the CWCR, a 
written stipulation agreed to by all parties and filed with the ALJ will 
modify the procedures established by this part.



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

[[Page 196]]

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, NW., 
Room 5519, Washington, DC 20520, to the Office of Chief Counsel at the 
address inSec. 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 approve and 
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 
Secretary will approve and 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. 
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.

[[Page 197]]



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 underSec. 719.18 or under 22 CFR 103.8, the 
decision of the ALJ and such submissions as are provided for underSec. 
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 displayed on the BIS Freedom of Information Act (FOIA) Web site, 
at http://www.bis.doc.gov/foia, which is maintained by the Office of 
Administration, Bureau of Industry and Security, U.S. Department of 
Commerce. This office does not maintain a separate inspection facility. 
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 effective date of the order or within such longer 
period of time as may be 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 the 
CWCR. 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 
the CWCR 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, NW., Room H-4520, 
Washington, DC 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, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.



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

[[Page 198]]

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 under 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 774), 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.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



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 inSec. 719.14 of 
the CWCR.
    (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 774). The initial decision and 
order will be served on each party, and will be published in the Federal 
Register as the final decision of BIS 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, Bureau of 
Industry and Security, for review of the initial decision and order. A 
petition for review must be filed with the Office of Under Secretary, 
Bureau of Industry and Security, Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 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.
    (d) Appeal procedure. The Under Secretary, Bureau of Industry and 
Security, normally will not hold hearings or entertain oral arguments on 
appeals. A

[[Page 199]]

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, Bureau of 
Industry and Security, 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.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



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 (EAR) (15 CFR parts 730 through 774). 
Orders denying export privileges pursuant to Parts 764 and 766 of the 
EAR are published in the Federal Register when they are issued and are 
legally controlling documents in accordance with their terms. BIS 
maintains unofficial compilations of persons denied export privileges on 
its Web site.

[71 FR 24929, Apr. 27, 2006, as amended at 73 FR 78183, Dec. 22, 2008]



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, 3 CFR 
1999 Comp., p. 199.

    Source: 71 FR 24929, Apr. 27, 2006, unless otherwise noted.



Sec.  721.1  Inspection of records.

    Upon request by BIS or any other agency of competent jurisdiction, 
you must permit access to and copying of any record relating to 
compliance with the requirements of the CWCR. 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) Requirements. Each person, facility, plant site or trading 
company required to submit a declaration, report, or advance 
notification under parts 712 through 715 of the CWCR must retain all 
supporting materials and documentation used by a unit, plant, facility, 
plant site or trading company to prepare such declaration, report, or 
advance notification to determine production, processing, consumption, 
export or import of chemicals. Each facility subject to inspection under 
Part 716 of the CWCR must retain all supporting materials and 
documentation associated with the movement into, around, and from the 
facility of declared chemicals and their feedstock or any product 
chemicals formed from such chemicals and feedstock. In the event that a 
declared facility is sold, the previous owner of the facility must 
retain all such supporting materials and documentation that were not 
transferred to the current owner of the facility (e.g., as part of the 
contract involving the sale of the facility)--otherwise, the current 
owner of the facility is responsible for retaining such supporting 
materials and documentation. Whenever the previous owner of a declared 
facility retains such supporting materials and documentation, the owner 
must inform BIS of any subsequent change in address or other contact 
information, so that BIS will be able to contact the previous owner of 
the facility, to arrange for access to such records, if BIS deems them 
relevant to inspection activities involving the facility (seeSec. 
716.4 of the CWCR).
    (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

[[Page 200]]

years from the due date of the applicable declaration, report, or 
advance notification, or for five years from the date of submission of 
the applicable declaration, report or advance notification, whichever is 
later. Due dates for declarations, reports and advance notifications are 
provided in parts 712 through 715 of the CWCR.
    (c) Location of records. If a facility is subject to inspection 
under part 716 of the CWCR, 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 the CWCR, 
records retained under this section may be maintained either at the 
facility subject to a declaration, report, or advance 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 
underSec. 721.1 of the CWCR.
    (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, 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.

[71 FR 24929, Apr. 27, 2006, as amended at 72 FR 14410, Mar. 28, 2007]



Sec.  721.3  Destruction or disposal of records.

    If BIS 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]

[[Page 201]]

    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 202]]



             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 Organization of the Bureau of Industry and Security.
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); 22 U.S.C. 287c; 22 U.S.C. 2151 note; 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; 15 U.S.C. 1824a; 50 U.S.C. app. 
5; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; 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. 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; 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; E.O. 13338, 69 FR 26751, 3 CFR, 
2004 Comp., p 168; Notice of September 21, 2011, 76 FR 59001 (September, 
22, 2011); Notice of November 9, 2011, 76 FR 70319 (November 10, 2011); 
Notice of January 19, 2012, 77 FR 3067 (January 20, 2012); Notice of May 
9, 2012, 77 FR 27559 (May 10, 2012); Notice of August 15, 2012, 77 FR 
49699 (August 16, 2012).

    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

[[Page 203]]

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



Sec.  730.4  Other control agencies and departments.

    In addition to the departments and agencies mentioned inSec. 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.

[61 FR 12734, Mar. 25, 1996, as amended at 61 FR 68577, Dec. 30, 1996; 
74 FR 52882, Oct. 15, 2009]



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

[[Page 204]]

the Nuclear Suppliers Group, the Australia Group, and the Missile 
Technology Control Regime. The EAR also include some export controls to 
protect the United States from the adverse impact of the unrestricted 
export of commodities in short supply.



Sec.  730.7  License requirements and exceptions.

    A relatively small percentage of exports and reexports subject to 
the EAR require an application to BIS for a license. Many items are not 
on the Commerce Control List (CCL) (Supplement No. 1 toSec. 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.

[[Page 205]]

    (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 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 Export Services at the following locations: 
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 Export Services at the following locations: Outreach and 
Educational Services Division, U.S. Department of Commerce, 14th and 
Pennsylvania Avenue, NW., Room H1099D, Washington, DC 20230, Tel: (202) 
482-4811, Fax: (202) 482-2927, and Bureau of Industry and Security, 
Western Regional Office, U.S. Department of Commerce, 2302 Martin St., 
Suite 330, Irvine, CA 92612, Tel: (949) 660-0144, Fax: (949) 660-9347, 
and Bureau of Industry and Security, Western Regional Office, Northern 
California Branch, U.S. Department of Commerce, 160 W. Santa Clara 
Street, Suite 725, San Jose, CA 95113, Tel: (408) 998-8806, Fax: (408) 
998-8677.

[61 FR 12734, Mar. 25, 1996, as amended at 69 FR 5687, Feb. 6, 2004; 70 
FR 14386, Mar. 22, 2005; 70 FR 22249, Apr. 29, 2005; 72 FR 3945, Jan. 
29, 2007; 73 FR 35, Jan. 2, 2008; 73 FR 75944, Dec. 15, 2008; 76 FR 
40604, July 11, 2011]

[[Page 206]]



Sec.  730.9  Organization of the Bureau of Industry and Security.

    The head of the Bureau of Industry and Security is the Under 
Secretary for Industry and Security. The Under Secretary is assisted by 
a Deputy Under Secretary for Industry and Security, the Assistant 
Secretary for Export Administration, the Assistant Secretary for Export 
Enforcement, the Director of Administration, the Director of the Office 
of Congressional and Public Affairs, and the Chief Information Officer. 
The functions and authorities of the Under Secretary are described in 
the Department's Organizational Order 10-16. The Department's 
organizational and administrative orders are available via Office of 
Management and Organization's Web page on the Department's Web site at 
http://www.osec.doc.gov/omo/DMPHome.htm. The principal functions of the 
Bureau that directly affect the public are carried out by two units: 
Export Administration and Export Enforcement.
    (a) Export Administration is headed by the Assistant Secretary for 
Export Administration, who is assisted by a Deputy Assistant Secretary. 
Its substantive work is carried out by six sub-units: the Office of 
Nonproliferation and Treaty Compliance, the Office of National Security 
and Technology Transfer Controls, the Office of Exporter Services, the 
Operating Committee, the Office of Strategic Industries and Economic 
Security, and the Office of Technology Evaluation. The functions of the 
Operating Committee are described inSec. 750.4(f)(1) of the EAR. The 
roles of the other units are described on BIS's Web site at http://
www.bis.doc.gov/about/programoffices.htm.
    (b) Export Enforcement is headed by the Assistant Secretary for 
Export Enforcement who is assisted by a Deputy Assistant Secretary. Its 
substantive work is carried out by three sub-units: the Office of Export 
Enforcement, the Office of Enforcement Analysis and the Office of 
Antiboycott Compliance. The roles of these units are described on BIS's 
Web site at http://www.bis.doc.gov/about/programoffices.htm.
    (c) BIS is also assisted in its work by six technical advisory 
committees. The procedures and criteria for establishing and operating 
the technical advisory committees is at supplement No. 2 to this part. 
Information about the specific roles of each committee, meeting 
schedules, and membership selection is available on BIS's Web site at 
http://tac.bis.doc.gov/.

[70 FR 8248, Feb. 18, 2005, as amended at 72 FR 25196, May 4, 2007]



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.



 Sec. 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.

------------------------------------------------------------------------
                                                       Reference in the
        Collection number                Title                EAR
------------------------------------------------------------------------
0694-0004.......................  Foreign             part 768.
                                   Availability
                                   Procedures and
                                   Criteria.
0694-0009.......................  Approval of       Sec. 748.10(e).
                                   Triangular
                                   Transactions
                                   Involving
                                   Commodities
                                   Covered by a U.S.
                                   Import
                                   Certificate.
0694-0012.......................  Report of Requests  part 760 and Sec.
                                   for Restrictive      762.2(b).
                                   Trade Practice or
                                   Boycott--Single
                                   or Multiple
                                   Transactions.

[[Page 207]]

 
0694-0013.......................  Computers and       part 774.
                                   Related Equipment
                                   EAR Supplement 2
                                   to Part 748.
0694-0016.......................  Delivery           Sec. Sec.
                                   Verification        748.13 and
                                   Certificate.        762.2(b).
0694-0017.......................  International     Sec. 748.10
                                   Import
                                   Certificate.
0694-0021.......................  Statement by       Sec. Sec.
                                   Ultimate            748.11 and
                                   Consignee and       762.2(b).
                                   Purchaser.
0694-0026.......................  Short Supply      Sec. 754.3.
                                   Regulations--Petr
                                   oleum Products.
0694-0047.......................  Technology Letter   Supplement No. 2
                                   of Explanation.     to part 748,
                                                       paragraph (o)(2).
0694-0058.......................  Procedure for      Sec. Sec.
                                   Voluntary Self-     762.2(b) and
                                   Disclosure of       764.5.
                                   Violations.
0694-0073.......................  Export Controls of  Supplement No. 2
                                   High Performance    to part 748,
                                   Computers.          paragraph (c)(2),
                                                       and Sec.
                                                       762.2(b).
0694-0088.......................  Simplified Network  parts 746, 748,
                                   Application         and 752; Sec.
                                   Processing+         762.2(b).
                                   System (SNAP+)
                                   and the
                                   Multipurpose
                                   Export License
                                   Application.
0694-0089.......................  Special             part 752 and Sec.
                                   Comprehensive        762.2(b).
                                   License Procedure.
0694-0093.......................  Import             Sec. Sec.
                                   Certificates And    748.9, 748.10,
                                   End-User            762.5(d), 762.6
                                   Certificates.       764.2(g)(2).
0694-0096.......................  Five Year Records   part 760, Sec.
                                   Retention Period.   762.6(a).
0694-0100.......................  Requests for        Supplement No. 1
                                   Appointment of      to part 730.
                                   Technical
                                   Advisory
                                   Committee.
0694-0102.......................  Registration of    Sec.Sec.  754.6
                                   U.S. Agricultural   and 754.7.
                                   Commodities For
                                   Exemption From
                                   Short Supply
                                   Limitations on
                                   Export'', and
                                   ``Petitions For
                                   The Imposition of
                                   Monitoring Or
                                   Controls On
                                   Recyclable
                                   Metallic
                                   matrials; Public
                                   Hearings.
0694-0107.......................  National Defense   Sec. Sec.
                                   Authorization Act   740.7, 742.12.
                                   (NDAA).
0694-0117.......................  Chemical Weapons    Part 745.
                                   Convention
                                   Provisions of the
                                   Export
                                   Administration
                                   Regulations
                                   (Schedule 1
                                   Advance
                                   Notifications and
                                   Reports and
                                   Schedule 3 End-
                                   use Certificates).
0694-0122.......................  Licensing           Part 758, and Sec.
                                   Responsibilities      748.4.
                                   and Enforcement.
0694-0125.......................  BIS Seminar         N/A
                                   Evaluation.
0694-0126.......................  Export License    Sec. 750.9.
                                   Services--Transfe
                                   r of License
                                   Ownership,
                                   Requests for a
                                   Duplicate License.
0694-0129.......................  Export and        Sec. 732.3, 738,
                                   Reexport Controls   744.18,
                                   For Iraq.           746.3(b)(1), 747,
                                                       750, 758, 762,
                                                       772, 774.
0694-0132.......................  Voluntary Self-   Sec. 764.8.
                                   Disclosure of
                                   Antiboycott
                                   Violations.
0694-0134.......................  Procedure for     Sec. 744.16
                                   parties on the
                                   Entity List to
                                   Request Removal
                                   or Modification
                                   of their Listing.
0694-0137.......................  License ExemptionsSec. 734.4,
                                   and Exclusions.     Supplement No. 2
                                                       to part 734, Sec.
                                                      Sec. 740.3(d),
                                                       740.4(c),
                                                       740.9(a)(2)(viii)
                                                       (B), 740.9(c),
                                                       740.13(e),
                                                       740.12(b)(7),
                                                       740.17, 740.18,
                                                       Supp. No. 2 to
                                                       Part 740, Sec.
                                                     Sec. 742.15,
                                                       743.1, 743.3,
                                                       754.2, 754.4,
                                                       762.2(b) and
                                                       Supplement No. 1
                                                       to part 774
0607-0152.......................  Automated Export   Sec. Sec.
                                   System (AES)        740.1(d),
                                   Program.            740.3(a)(3),
                                                       752.7(b),
                                                       752.15(a),
                                                       754.2(h),
                                                       754.4(c), 758.1,
                                                       758.2 and 758.3
                                                       of the EAR.
------------------------------------------------------------------------


[61 FR 12734, Mar. 25, 1996, as amended at 70 FR 14386, Mar. 22, 2005; 
71 FR 20883, Apr. 24, 2006; 72 FR 39004, July 17, 2007; 73 FR 49321, 
Aug. 21, 2008; 73 FR 56967, Oct. 1, 2008; 73 FR 75944, Dec. 15, 2008; 74 
FR 23944, May 22, 2009; 75 FR 36489, June 25, 2010; 76 FR 40604, July 
11, 2011]



    Sec. 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 
questions involving technical matters;

[[Page 208]]

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, 14th Street and Pennsylvania Ave., NW., Room 
2705, Washington, DC 20230.
    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 209]]

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 210]]

    (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.

[61 FR 12734, Mar. 25, 1996, as amended at 73 FR 35, Jan. 2, 2008; 73 FR 
75945, Dec. 15, 2008]



Sec. 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, Directorate of Defense Trade Controls, Tel. (703) 
875-6644, Fax: (703) 875-6647.
    22 CFR parts 120 through 130.

                     Drugs, Chemicals and Precursors

Chemicals: Drug Enforcement Administration, Office of Diversion Control, 
Import-Export Unit, Tel. (202) 307-4916, Fax: 202-307-4702, Internet: 
http://www.deadiversion.usdoj.gov/imp--exp/index.html.

                     21 CFR Parts 1311 Through 1313

Controlled Substances: Drug Enforcement Administration, Office of 
Diversion Control, Import-Export Unit, Tel. (202) 307-7182 or (202) 307-
7181, Fax: (202) 307-7503, Internet: http://www.deadiversion.usdoj.gov/
imp--exp/index.html.
    21 CFR Parts 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.

[[Page 211]]

                             Medical Devices

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

                     Natural Gas and Electric Power

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

                     Nuclear Materials and Equipment

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

Nuclear Technologies and Services Which Contribute to the Production of 
  Special Nuclear Material (Snm). Technologies Covered Include Nuclear 
 Reactors, Enrichment, Reprocessing, Fuel Fabrication, and Heavy Water 
                               Production.

Department of Energy Office of Export Control Policy & Cooperation (NA-
24) Tel. (202) 586-2331, Fax (202) 586-1348.
    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; 
69 FR 5687, Feb. 6, 2004; 72 FR 20222, Apr. 24, 2007]



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 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 15, 2012, 77 FR 49699 
(August 16, 2012).

    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 inSec. 732.2 throughSec. 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).

[[Page 212]]

    (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) inSec. 
736.2(b)(4) and parts 744 and 764 of the EAR for a reference to the list 
of persons you may not deal with.
    (4) What will they do with it? The ultimate end-use of your item 
cannot be a bad end-use. See General Prohibition Five (End-Use End-User) 
inSec. 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 inSec. 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, North Korea, and Syria. 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

[[Page 213]]

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

[61 FR 12740, Mar. 25, 1996, as amended at 62 FR 25453, May 9, 1997; 65 
FR 38150, June 19, 2000; 69 FR 23628, Apr. 29, 2004; 69 FR 46074, July 
30, 2004; 72 FR 3724, Jan. 26, 2007; 76 FR 77116, Dec. 12, 2011]



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 inSec. 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 are outside the scope of the EAR. The examples are illustrative, 
not comprehensive. Note that encryption software classified under ECCN 
5D002 on the Commerce Control List (refer to Supplement No.1 to Part 774 
of the EAR) is subject to the EAR even if publicly available, except for 
publicly available encryption object code software classified under ECCN 
5D002 when the corresponding source code meets the criteria specified in 
Sec.  740.13(e) of the EAR.
    (1) If your technology or software is publicly available, and 
therefore outside the scope of the EAR, you may

[[Page 214]]

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.
    (2) If your technology or software is not publicly available and you 
are exporting from the United States, skip to the Step 7 inSec. 
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 inSec. 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 controlled U.S.-origin 
items. This step is appropriate only for items that are made outside the 
United States and not currently located in the United States. Special 
requirements and restrictions apply to foreign-made items that 
incorporate U.S.-origin encryption items (seeSec. 734.4(a)(2), (b), 
and (g) of the EAR).
    (1) Determining whether your foreign made item is subject to the 
EAR. Using the guidance provided in Supplement No. 2 to part 734 of the 
EAR, determine whether controlled U.S.-origin items are incorporated 
into the foreign-made item and are above the de minimis level set forth 
inSec. 734.4 of the EAR.
    (2) If no U.S.-origin controlled items are incorporated or if the 
percentage of incorporated U.S.-origin controlled items are equal to or 
below the de minimis level described inSec. 734.4 of the EAR, then the 
foreign-made item is not subject to the EAR by reason of the de minimis 
rules, and you should go on to consider Step 6 regarding the foreign-
produced direct product rule.
    (3) If the foreign-made item incorporates more than the de minimis 
level of U.S.-origin items, then that item is subject to the EAR and you 
should skip to Step 7 atSec. 732.3 of this part and consider the steps 
regarding all other general prohibitions, license exceptions, and other 
requirements to determine applicability of these provisions to the 
foreign-made item.
    (e) [Reserved]
    (f) Step 6: Foreign-made items produced with certain U.S. technology 
for export to specified destinations. This step is appropriate for 
foreign-made items in foreign countries.
    (1) If your foreign-produced item is described in an entry on the 
CCL and the Country Chart requires a license to your export or reexport 
destination for national security reasons, you should determine whether 
your item is subject to General Prohibition Three (Foreign-Produced 
Direct Product Reexports) (Sec.  736.2(b)(3) of the EAR). Your item is 
subject to the EAR if it is captured by General Prohibition Three 
(Foreign-Produced Direct Product Reexports), and that prohibition 
applies if your transaction meets each of the following conditions:
    (i) Country scope of prohibition. Your reexport destination for the 
foreign-produced direct product is a destination in Country Group D:1 or 
E:1 (see Supplement No. 1 to part 740 of the EAR) (reexports of foreign-
produced direct products 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 inSec. 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

[[Page 215]]

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]

    Editorial Note: For Federal Register citations affectingSec. 
732.2, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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 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.
    (4) Items subject to temporary CCL controls are classified under the 
ECCN 0Y521 series (i.e., 0A521, 0B521, 0C521, 0D521 and 0E521) pursuant 
toSec. 742.6(a)(7) of the EAR while a determination is being made as 
to whether classification under a revised or new ECCN or EAR99 
designation is appropriate .
    (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

[[Page 216]]

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. ConsultSec. 
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). (SeeSec. 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. SeeSec. 
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 and other special controls 
provisions. The Country Chart does not apply to Cuba, Iran, North Korea, 
and Syria. For those countries you should review the provisions at part 
746 of the EAR and may skip this step concerning the Country Chart. For 
Iraq, the Country Chart provides for certain license requirements, and 
part 746 of the EAR provides additional requirements.
    (5) Items subject to the EAR but not on the CCL. Items subject to 
the EAR that are not on the CCL are properly classified EAR99. For such 
items, you may skip this step and proceed directly with Step 12 in 
paragraph (g) of this section.
    (e) Step 10: Foreign-made items incorporating controlled U.S.-origin 
items and the de minimis rules--(1) De minimis rules. If your foreign-
made item abroad is a foreign-made commodity that incorporates 
controlled U.S.-origin commodities, a foreign-made commodity that is 
`bundled' with controlled U.S.-origin software, foreign-made software 
that is commingled with controlled U.S.-origin software, or foreign-made 
technology that is commingled with controlled U.S.-origin technology, 
then it

[[Page 217]]

is subject to the EAR if the U.S.-origin controlled content exceeds the 
de minimis levels described in Sec. 734.4 of the EAR.
    (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, U.S.-origin technology controlled by ECCN 9E003.a.1 through 
a.11, and .h, and related controls, and encryption software controlled 
for ``EI'' reasons under ECCN 5D002 (not eligible for de minimis 
treatment pursuant toSec. 734.4(b) of the EAR) or encryption 
technology controlled for ``EI'' reasons under ECCN 5E002 (not eligible 
for de minimis treatment pursuant toSec. 734.4(a)(2) of the EAR) 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.
    (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 inSec. 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 reexport destination for the 
direct product is a destination in Country Group D:1 or E:1 (see 
Supplement No. 1 to part 740 of the EAR) (reexports of foreign-produced 
direct products to other destinations are not subject to General 
Prohibition Three described inSec. 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 inSec. 740.6 of the EAR (reexports of foreign-
produced direct products created with other technology and software are 
not subject to General Prohibition Three); and
    (iii) Scope of direct products subject to the prohibition. The 
foreign-produced direct products are controlled for national security 
reasons indicated in an ECCN on the CCL (reexports of foreign-produced 
direct products not subject to national security controls are not 
subject to General Prohibition Three).
    (2) License Exceptions. Each License Exception described in part 740 
of the EAR overcomes General Prohibition Three (Foreign-Produced Direct 
Product Reexports) if all terms and conditions of a given License 
Exception are met by the exporter or reexporter.
    (g) Step 12: Persons denied export privileges. (1) Determine whether 
your transferee, ultimate end-user, any intermediate consignee, or any 
other party to a transaction is a person denied export privileges (see 
part 764 of the EAR). 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

[[Page 218]]

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), operation 
technology and software, sales technology, and software updates 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, North Korea, or Syria, 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. 
SeeSec. 746.1(b) for destinations subject to limited sanctions under 
United Nations Security Council arms embargoes. 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 inSec. 744.6 of 
the EAR. Keep in mind that such activity is not limited to exports and 
reexports and is not limited to items subject to General Prohibition One 
(Exports and Reexports), Two (Parts and Components Reexports), and Three 
(Foreign-Produced Direct Product Reexports). Moreover, such activity 
extends to services and dealing in wholly foreign-origin items in 
support of the specified proliferation activity and is not limited to 
items listed on the CCL or included in EAR99.
    (2) Review the definition of U.S. Person in part 744 of the EAR.
    (k) Step 16: In-transit. Shippers and operators of vessels or 
aircraft should review General Prohibition Eight (In-Transit) to 
determine the countries in which you may not unladen or ship certain 
items in-transit. General Prohibition Eight applies to all items subject 
to the EAR, i.e. both items on the CCL and within EAR99.
    (l) Step 17: Review orders, terms, and conditions. Review the 
orders, terms, and conditions applicable to your transaction. General 
Prohibition Nine (Orders, Terms, and Conditions) prohibits the violation 
of any orders, terms, and conditions imposed under the EAR. Terms and 
conditions are frequently contained in licenses. In addition, the ten 
general prohibitions (part 736 of the EAR) and the License Exceptions 
(part 740 of the EAR) impose terms and conditions or limitations on your 
proposed transactions and use of License Exceptions. A given license or 
License Exception may not be used unless each relevant term or condition 
is met.
    (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

[[Page 219]]

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 inSec. 732.4 of this part regarding License 
Exceptions and proceed directly to the Steps inSec. 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]

    Editorial Note: For Federal Register citations affectingSec. 
732.3, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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 inSec. 736.2(b) of the EAR apply to your export 
or reexport. If no general prohibition applies to your export or 
reexport, then you may proceed with your export or reexport and need not 
review part 740 of the EAR regarding License Exceptions. You are 
reminded of your recordkeeping obligations related to the clearance of 
the U.S. Customs Service provided in parts 762 and 758 of the EAR.
    (2) Step 21: Applicability of restrictions on all License 
Exceptions. Determine whether any one or more of the restrictions in 
Sec.  740.2 of the EAR applies to your export or reexport. If any one or 
more of these restrictions apply, there are no License Exceptions 
available to you, and you must either obtain a license or refrain from 
the export or reexport.
    (3) Step 22: Terms and conditions of the License Exceptions. (i) If 
none of the restrictions inSec. 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

[[Page 220]]

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 APP) 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. Some ECCNs contain License Exception STA exclusion 
paragraphs. Those paragraphs delineate items excluded from the License 
Exception STA provisions inSec. 740.20(c)(2) of the EAR. License 
Exception APR authorizes reexports only.
    (iv) If you are exporting under License Exceptions GBS, CIV, LVS, 
STA, APP, TSR or GOV, you should reviewSec. 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; 71 FR 20883, Apr. 24, 2006; 76 FR 35286, June 
16, 2011]



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 toSec. 732.6.

[[Page 221]]

    (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. SeeSec. 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. SeeSec. 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). SeeSec. 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, underSec. 740.9(b)(3). SeeSec. 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 reviewSec. 752.15 of the EAR 
for DCS requirements when using a Special Comprehensive License; 
otherwise, DCS requirements do not apply to reexports. SeeSec. 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]



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 inSec. 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 inSec. 758.1 throughSec. 758.6 of the 
EAR.
    (c) Duty of carriers to return or unload shipments at the direction 
of U.S. Government officials (seeSec. 758.8 of the EAR).
    (d) Specific obligations imposed on parties to Special Comprehensive 
licenses in part 752 of the EAR.

[[Page 222]]

    (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 223]]



             Sec. Supplement No 1 to Part 732--Decision Tree
[GRAPHIC] [TIFF OMITTED] TR06FE04.000


[69 FR 5687, Feb. 6, 2004]

[[Page 224]]



       Sec. Supplement No. 2 to Part 732--Am I Subject to the EAR?
[GRAPHIC] [TIFF OMITTED] TR06FE04.001


[69 FR 5687, Feb. 6, 2004]

[[Page 225]]



Sec. 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 226]]

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--Guidelines 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, 3 CFR, 2001 Comp., p. 783; Notice of 
November 9, 2011, 76 FR 70319 (November 10, 2011); Notice of August 15, 
2012, 77 FR 49699 (August 16, 2012).



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 neither your item nor 
your activity is 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.

[61 FR 12746, Mar. 25, 1996, as amended at 69 FR 5690, Feb. 6, 2004]



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 227]]

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.Sec. 734.2 through 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, seeSec. 734.6 of this part. Publicly available 
technology and software not subject to the EAR are described in 
Sec.Sec. 734.7 through 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 bySec. 
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 228]]

knowledge or reason to know a violation is about to occur is prohibited 
bySec. 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 Schedule C, Classification Codes and 
Descriptions 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. SeeSec. 740.13(e) of the EAR for 
notification requirements for exports or reexports of encryption source 
code software considered to be publicly available consistent with the 
provisions ofSec. 734.3(b)(3) of the EAR. Publicly available 
encryption software in object code that corresponds to encryption source 
code made eligible for License Exception TSU under section 740.13(e) is 
not subject to 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 underSec. 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

[[Page 229]]

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 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; 72 FR 3945, Jan. 29, 2007; 76 
FR 1062, Jan. 7, 2011]



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) Foreign-made commodities that incorporate controlled U.S.-origin 
commodities, foreign-made commodities that are `bundled' with controlled 
U.S.-origin software, foreign-made software that is commingled with 
controlled U.S.-origin software, and foreign-made technology that is 
commingled with controlled U.S.-origin technology:
    (i) In any quantity, as described inSec. 734.4(a) of this part; or
    (ii) In quantities exceeding the de minimis levels, as described in 
Sec.  734.4(c) orSec. 734.4(d) of this part;
    (4) Certain foreign-made direct products of U.S. origin technology 
or software, as described inSec. 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

    Note to paragraph (a)(4): Certain foreign-manufactured items 
developed or produced from U.S.-origin encryption items exported 
pursuant to License Exception ENC are subject to the EAR. See sections 
740.17(a) and 740.17(b)(4)(ii) of the EAR.

    (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 inSec. 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 Directorate 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

[[Page 230]]

content of printed books, pamphlets, and miscellaneous publications, 
including newspapers and periodicals; printed books, pamphlets, and 
miscellaneous publications including bound newspapers and periodicals; 
children's picture and painting books; newspaper and periodicals, 
unbound, excluding waste; music books; sheet music; calendars and 
calendar blocks, paper; maps, hydrographical charts, atlases, 
gazetteers, globe covers, and globes (terrestrial and celestial); 
exposed and developed microfilm reproducing, in whole or in part, the 
content of any of the above; exposed and developed motion picture film 
and soundtrack; and advertising printed matter exclusively related 
thereto.
    (3) Publicly available technology and software, except software 
classified under ECCN 5D002 on the Commerce Control List, that:
    (i) Are already published or will be published as described inSec. 
734.7 of this part;
    (ii) Arise during, or result from, fundamental research, as 
described inSec. 734.8 of this part;
    (iii) Are educational, as described inSec. 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 (seeSec. 734.3(b)(2)). However, 
notwithstandingSec. 734.3(b)(2), encryption source code in electronic 
form or media (e.g., computer diskette or CD ROM) remains subject to the 
EAR (seeSec. 734.3(b)(3)). Publicly available encryption object code 
software classified under ECCN 5D002 is not subject to the EAR when the 
corresponding source code meets the criteria specified inSec. 
740.13(e) of the EAR.

    (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.'' Items subject to temporary CCL 
controls are classified under the ECCN 0Y521 series (i.e., 0A521, 0B521, 
0C521, 0D521, and 0E521) pursuant toSec. 742.6(a)(7) of the EAR, while 
a determination is made as to whether classification under a revised or 
new ECCN, or an EAR99 designation, is appropriate.
    (d) Commodity classification determinations and advisory opinions 
issued by BIS are not, and may not be relied upon as, determinations 
that the items in question are ``subject to the EAR,'' as described in 
Sec.  748.3 of the EAR.

[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; 69 FR 5690, Feb. 6, 2004; 69 FR 5929, Feb. 9, 2004; 73 FR 
56968, Oct. 1, 2008; 73 FR 57503, Oct. 3, 2008; 75 FR 31680, June 4, 
2010; 75 FR 45054, Aug. 2, 2010; 76 FR 1062, Jan. 7, 2011; 77 FR 22198, 
Apr. 13, 2012]



Sec.  734.4  De minimis U.S. content.

    (a) Items for which there is no de minimis level. (1) There is no de 
minimis level for the export from a foreign country of a foreign-made 
computer with an Adjusted Peak Performance (APP) exceeding 3.0 Weighted 
TeraFLOPS (WT) containing U.S.-origin controlled semiconductors (other 
than memory circuits) classified under ECCN 3A001 to Computer Tier 3; or 
exceeding an APP of 0.002 WT containing U.S.-origin controlled 
semiconductors (other than memory circuits) classified under ECCN 3A001 
or high speed interconnect devices (ECCN 4A994.j) to Cuba, Iran, North 
Korea, Sudan, and Syria.
    (2) Foreign produced encryption technology that incorporates U.S. 
origin encryption technology controlled by ECCN 5E002 is subject to the 
EAR regardless of the amount of U.S. origin content.
    (3) There is no de minimis level for foreign-made:
    (i) Commercial primary or standby instrument systems of the type 
described in ECCN 7A994 on the Commerce Control List (Supplement No. 1 
to part 774 the EAR) when the systems integrate QRS11-00100-100/101 
Micromachined Angular Rate Sensors;
    (ii) Commercial automatic flight control systems when the systems 
integrate QRS11-00050-443/569 Micromachined Angular Rate Sensors; and

[[Page 231]]

    (iii) Aircraft of the type described in ECCN 9A991 when such 
aircraft incorporate a primary or standby instrument system integrating 
a QRS11-00100-100/101 sensor or an automatic flight control system 
integrating a QRS11-00050-443/569 sensor.

    Note to paragraph (a)(3): QRS11 Micromachined Angular Rate Sensors 
are subject to the export licensing jurisdiction of the U.S. Department 
of State, Directorate of Defense Trade Controls, except when the QRS11-
00100-100/101 version of the sensor is integrated into and included as 
an integral part of a commercial primary or standby instrument system of 
the type described in ECCN 7A994, or aircraft of the type described in 
ECCN 9A991 that incorporates a commercial primary or standby instrument 
that has such a sensor integrated, or is exported solely for integration 
into such systems; or when the QRS11-00050-443/569 is integrated into a 
commercial automatic flight control system of the type described in ECCN 
7A994, or aircraft of the type described in ECCN 9A991 that incorporates 
an automatic flight control system that has such a sensor integrated, or 
is exported solely for integration into such a system.

    (4) There is no de minimis level for U.S.-origin technology 
controlled by 9E003.a.1 through a.8,.h, .i., and .j., when redrawn, 
used, consulted, or otherwise commingled abroad.
    (5) There is no de minimis level for foreign made military 
commodities that incorporate cameras classified under ECCN 6A003.b.4.b 
if such cameras would be subject to the EAR as separate items and if the 
foreign made military commodity is not subject to the International 
Traffic in Arms Regulations (22 U.S.C. Parts 120-130).
    (6) 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 rules do not relieve U.S. persons 
of the obligation to refrain from supporting the proliferation of 
weapons of mass-destruction and missiles as provided inSec. 744.6 of 
the EAR.
    (b) Special requirements for certain encryption items. Foreign made 
items that incorporate U.S. origin items that are listed in this 
paragraph are subject to the EAR unless they meet the de minimis level 
and destination requirements of paragraph (c) or (d) of this section and 
the requirements of this paragraph.
    (1) The U.S. origin commodities or software, if controlled under 
ECCNs 5A002.a.1, .a.2, .a.5, .a.6, .a.9, .b, or 5D002,, must have been:
    (i)Authorized for license exception TSU because of having met the 
notification requirements ofSec. 740.13(e) of the EAR (ECCN 5D002 
only);
    (ii) Authorized for License Exception ENC by BIS after 
classification pursuant toSec. 740.17(b)(3) of the EAR;
    (iii) Authorized for License Exception ENC by BIS after 
classification pursuant toSec. 740.17(b)(2) of the EAR, and the 
foreign made product will not be sent to any destination in Country 
Group E:1 in Supplement No. 1 to part 740 of the EAR;
    (iv) Authorized for License Exception ENC pursuant toSec. 
740.17(b)(4) of the EAR; or
    (v) Authorized for License Exception ENC after submission of an 
encryption registration pursuant toSec. 740.17(b)(1) of the EAR.
    (2) U.S. origin encryption items classified under ECCNs 5A992, 
5D992, or 5E992.

    Note to paragraph (b): See supplement No. 2 to this part for de 
minimis calculation procedures and reporting requirements.

    (c) 10% De Minimis Rule. Except as provided in paragraphs (a) and 
(b)(1)(iii) of this section and subject to the provisions of paragraphs 
(b)(1)(i), (b)(1)(ii) and (b)(2) of this section, the following 
reexports are not subject to the EAR when made to any country in the 
world. See Supplement No. 2 of this part for guidance on calculating 
values.
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities or ``bundled'' with U.S.-origin software valued 
at 10% or less of the total value of the foreign-made commodity;

    Notes to paragraph (c)(1): (1) U.S.-origin software is not eligible 
for the de minimis exclusion and is subject to the EAR when exported or 
reexported separately from (i.e., not bundled or incorporated with) the 
foreign-made item.
    (2) For the purposes of this section, `bundled' means software that 
is reexported together with the item and is configured for

[[Page 232]]

the item, but is not necessarily physically integrated into the item.
    (3) The de minimis exclusion under paragraph (c)(1) only applies to 
software that is listed on the Commerce Control List (CCL) and has a 
reason for control of anti-terrorism (AT) only or software that is 
designated as EAR99 (subject to the EAR, but not listed on the CCL). For 
all other software, an independent assessment of whether the software by 
itself is subject to the EAR must be performed.

    (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. Before you may rely upon the de minimis 
exclusion for foreign-made technology commingled with controlled U.S.-
origin technology, you must file a one-time report. See Supplement No. 2 
to part 734 for submission requirements.
    (d) 25% De Minimis Rule. Except as provided in paragraph (a) of this 
section and subject to the provisions of paragraph (b) of this section, 
the following reexports are not subject to the EAR when made to 
countries other than those listed in Country Group E:1 of Supplement No. 
1 to part 740 of the EAR. See Supplement No. 2 to this part for guidance 
on calculating values.
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities or ``bundled'' with U.S.-origin software valued 
at 25% or less of the total value of the foreign-made commodity;

    Notes to paragraph (d)(1): (1) U.S.-origin software is not eligible 
for the de minimis exclusion and is subject to the EAR when exported or 
reexported separately from (i.e., not bundled or incorporated with) the 
foreign-made item.
    (2) For the purposes of this section, ``bundled'' means software 
that is reexported together with the item and is configured for the 
item, but is not necessarily physically integrated into the item.
    (3) The de minimis exclusion under paragraph (d)(1) only applies to 
software that is listed on the Commerce Control List (CCL) and has a 
reason for control of anti-terrorism (AT) only or software that is 
classified as EAR99 (subject to the EAR, but not listed on the CCL). For 
all other software, an independent assessment of whether the software by 
itself is subject to the EAR must be performed.

    (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. Before you may rely upon the de minimis 
exclusion for foreign-made technology commingled with controlled U.S.-
origin technology, you must file a one-time report. See Supplement No. 2 
to part 734 for submission requirements.
    (e) 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.
    (f) SeeSec. 770.3 of the EAR for principles that apply to 
commingled U.S.-origin technology and software.
    (g) Recordkeeping requirement. The method by which you determined 
the percentage of U.S. content in foreign software or technology must be 
documented and retained in your records in accordance with the 
recordkeeping requirements in part 762 of the EAR. Your records should 
indicate whether the values you used in your calculations are actual 
arms-length market prices or prices derived from comparable transactions 
or costs of production, overhead, and profit.

[61 FR 12746, Mar. 25, 1996]

    Editorial Note: For Federal Register citations affectingSec. 
734.4, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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 inSec. 744.6 of the EAR, and the

[[Page 233]]

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.

[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; 74 FR 52883, Oct. 
15, 2009]



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 submit a request for a commodity 
jurisdiction determination to the Department of State, Directorate 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 inSec. 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

[[Page 234]]

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 published encryption software classified under ECCN 5D002 on the 
Commerce Control List (Supplement No. 1 to part 774 of the EAR) remains 
subject to the EAR, except publicly available encryption object code 
software classified under ECCN 5D002 when the corresponding source code 
meets the criteria specified inSec. 740.13(e) of the EAR. SeeSec. 
740.13(e) of the EAR for eligibility requirements for exports and 
reexports of publicly available encryption source code under License 
Exception TSU.

[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; 76 FR 1062, Jan. 7, 2011]



Sec.  734.8  Information resulting from fundamental research.

    (a) Fundamental research. Paragraphs (b) through (d) of this section 
andSec. 734.11 of this part provide specific rules that will be used 
to determine whether research in particular institutional contexts 
qualifies as ``fundamental research''. The intent behind these rules is 
to identify as ``fundamental research'' basic and applied research in 
science and engineering, where the resulting information is ordinarily 
published and shared broadly within the scientific community. Such 
research can be distinguished from proprietary research and from 
industrial development, design, production, and product utilization, the 
results of which ordinarily are restricted for proprietary reasons or 
specific national security reasons as defined inSec. 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 
classified under ECCN 5D002 on the Commerce Control List (Supplement No. 
1 to part 774 of the EAR), except publicly available encryption object 
code software classified under ECCN 5D002 when the corresponding source 
code meets the criteria specified inSec. 740.13(e) of the EAR. See 
Sec.  740.13(e) of the EAR for eligibility requirements for exports and 
reexports of publicly available encryption source code under License 
Exception TSU.
    (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

[[Page 235]]

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 ofSec. 734.11 of this part will apply if a 
university or its researchers accept specific national security controls 
(as defined inSec. 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 inSec. 
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, 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; 76 FR 1062, Jan. 7, 2011]



Sec.  734.9  Educational information.

    ``Educational information'' referred to inSec. 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 inSec. 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 classified under ECCN 5D002 on the Commerce Control 
List, except publicly available encryption object code software 
classified under ECCN 5D002 when the corresponding source code meets the 
criteria specified inSec. 740.13(e) of the EAR. SeeSec. 740.13(e) of 
the EAR for eligibility requirements for exports and reexports of 
publicly available encryption source code under License Exception TSU.

[67 FR 38861, June 6, 2002, as amended at 76 FR 1062, Jan. 7, 2011]



Sec.  734.10  Patent applications.

    The information referred to inSec. 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;

[[Page 236]]

    (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 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.



Sec. 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 
classified under ECCN 5D002 for ``EI'' reasons on the Commerce Control 
List or to mass market encryption software with symmetric key length 
exceeding 64-bits classified under ECCN 5D992. 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

[[Page 237]]

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 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'' 
underSec. 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.

[[Page 238]]

    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?
    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'' underSec. 734.9 of this part because your 
proprietary business does not qualify as an ``academic institution'' 
within the meaning ofSec. 734.9 of this part. Conceivably, however, 
the instruction might qualify as ``release at an open * * * seminar, * * 
* or other open gathering'' underSec. 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'' underSec. 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).

[[Page 239]]

    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. Send written communications, via courier, to: 
Department of Commerce, Bureau of Industry and Security, Room 2705, 14th 
Street and Pennsylvania Ave., NW., Washington, DC 20230.
    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 inSec. 734.8(a) of this part.
    Question D(7): Suppose the research in question were funded by a 
corporate sponsor and I had agreed to prepublication review of any paper 
arising from the research?
    Answer: Whether your research would still qualify as ``fundamental'' 
would depend on the nature and purpose of the prepublication review. If 
the review is intended solely to ensure that your publications will 
neither compromise patent rights nor inadvertently divulge proprietary 
information that the sponsor has furnished to you, the research could 
still qualify as ``fundamental.'' But if the sponsor will consider as 
part of its prepublication review whether it wants to hold your new 
research results as trade secrets or otherwise proprietary information 
(even if your voluntary cooperation would be needed for it to do so), 
your research would no longer qualify as ``fundamental.'' As used in 
these regulations it is the actual and intended openness of research 
results that primarily determines whether the research counts as 
``fundamental'' and so is not subject to the EAR.
    Question D(8): In determining whether research is thus open and 
therefore counts as ``fundamental,'' does it matter where or in what 
sort of institution the research is performed?
    Answer: In principle, no. ``Fundamental research'' is performed in 
industry, Federal laboratories, or other types of institutions, as well 
as in universities. The regulations introduce some operational 
presumptions and procedures that can be used both by those subject to 
the regulations and by those who administer them to determine with some 
precision whether a particular research activity is covered. Recognizing 
that common and predictable norms operate in different types of 
institutions, the regulations use the institutional locus of the 
research as a starting point for these presumptions and procedures. 
Nonetheless, it remains the type of research, and particularly the 
intent and freedom to publish, that identifies ``fundamental research,'' 
not the institutional locus (Sec.  734.8(a) of this part).
    Question D(9): I am doing research on high-powered lasers in the 
central basic-research laboratory of an industrial corporation. I am 
required to submit the results of my research for prepublication review 
before I can publish them or otherwise make them public. I would like to 
compare research results with a scientific colleague from Vietnam and 
discuss the results of the research with her when she visits the United 
States. Do I need a license to do so?
    Answer: You probably do need a license (Sec.  734.8(d) of this 
part). However, if the only restriction on your publishing any of that 
information is a prepublication review solely to ensure that publication 
would compromise no patent rights or proprietary information provided by 
the company to the researcher your research may be considered 
``fundamental research,'' in which case you may be able to share 
information because it is not subject to the EAR. Note that the 
information will be subject to the EAR if the prepublication review is 
intended to withhold the results of the research from publication.
    Question D(10): Suppose I have already cleared my company's review 
process and am free to publish all the information I intend to share 
with my colleague, though I have not yet published?
    Answer: If the clearance from your company means that you are free 
to make all the information publicly available without restriction or 
delay, the information is not subject to the EAR. (Sec.  734.8(d) of 
this part)
    Question D(11): I work as a researcher at a Government-owned, 
contractor-operated research center. May I share the results of my 
unpublished research with foreign nationals without concern for export 
controls under the EAR?

[[Page 240]]

    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 underSec. 734.8 
of this part. Is the information arising during or resulting from this 
sponsored research subject to the EAR?
    Answer: UnderSec. 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 inSec. 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'' 
underSec. 734.8(a) of this part, you may subject yourself to the 
sanctions provided for under the EAR, including criminal sanctions, in 
addition to administrative and civil penalties for breach of contract 
under other law.
    Question E(2): Do the Export Administration Regulations restrict my 
ability to publish the results of my research?
    Answer: The Export Administration Regulations are not the means for 
enforcing the national security controls you have agreed to. If such a 
publication violates the contract, you would be subject to 
administrative, civil, and possible criminal penalties under other law.

                    Section F: Commercial Consulting

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

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

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

    Question G(1): Is the export or reexport of software in machine 
readable code subject to the EAR when the source code for such software 
is publicly available?
    Answer: If the source code of a software program is publicly 
available, then the machine readable code compiled from the source code 
is software that is publicly available and therefore not subject to the 
EAR.
    Question G(2): Is the export or reexport of software sold at a price 
that does not exceed the cost of reproduction and distribution subject 
to the EAR?
    Answer: Software in machine readable code is publicly available if 
it is available to a community at a price that does not exceed the cost 
of reproduction and distribution. Such reproduction and distribution 
costs may include variable and fixed allocations of overhead and normal 
profit for the reproduction and distribution functions either in your 
company or in a third party distribution system. In your company, such 
costs may not include recovery for development, design, or acquisition. 
In this case, the provider of the software does not receive a fee for 
the inherent value of the software.

                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.

[[Page 241]]

    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 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; 73 FR 35, Jan. 2, 2008; 73 FR 57503, Oct. 3, 
2008; 76 FR 1062, Jan. 7, 2011]



   Sec. Supplement No. 2 to Part 734--Guidelines for De Minimis Rules

    (a) Calculation of the value of controlled U.S.-origin content in 
foreign-made items is to be performed for the purposes ofSec. 734.4 of 
this part, to determine whether the percentage of U.S.-origin content is 
de minimis. (Note that you do not need to make these calculations if the 
foreign made item does not require a license to the destination in

[[Page 242]]

question.) Use the following guidelines to perform such calculations:
    (1) U.S.-origin controlled content. To identify U.S.-origin 
controlled content for purposes of the de minimis rules, you must 
determine the Export Control Classification Number (ECCN) of each U.S.-
origin item incorporated into a foreign-made product. Then, you must 
identify which, if any, of those U.S.-origin items would require a 
license from BIS if they were to be exported or reexported (in the form 
in which you received them) to the foreign-made product's country of 
destination. For purposes of identifying U.S.-origin controlled content, 
you should consult the Commerce Country Chart in Supplement No. 1 to 
part 738 of the EAR and controls described in part 746 of the EAR. Part 
744 of the EAR should not be used to identify controlled U.S. content 
for purposes of determining the applicability of the de minimis rules. 
In identifying U.S.-origin controlled content, do not take account of 
commodities, software, or technology that could be exported or 
reexported to the country of destination without a license (designated 
as ``NLR'') or under License Exception GBS (see part 740 of the EAR). 
Commodities subject only to short supply controls are not included in 
calculating U.S. content.

    Note to paragraph (a)(1): U.S.-origin controlled content is 
considered `incorporated' for de minimis purposes if the U.S.-origin 
controlled item is: Essential to the functioning of the foreign 
equipment; customarily included in sales of the foreign equipment; and 
reexported with the foreign produced item. U.S.-origin software may be 
`bundled' with foreign produced commodities; seeSec. 734.4 of this 
part. 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.

    (2) Value of U.S.-origin controlled content. The value of the U.S.-
origin controlled content shall reflect the fair market price of such 
content in the market where the foreign product is being produced. In 
most cases, this value will be the same as the actual cost to the 
foreign manufacturer of the U.S.-origin commodity, technology, or 
software. When the foreign manufacturer and the U.S. supplier are 
affiliated and have special arrangements that result in below-market 
pricing, the value of the U.S.-origin controlled content should reflect 
fair market prices that would normally be charged to unaffiliated 
customers in the same foreign market. If fair market value cannot be 
determined based upon actual arms-length transaction data for the U.S.-
origin controlled content in question, then you must determine another 
reliable valuation method to calculate or derive the fair market value. 
Such methods may include the use of comparable market prices or costs of 
production and distribution. The EAR do not require calculations based 
upon any one accounting system or U.S. accounting standards. However, 
the method you use must be consistent with your business practice.
    (3) Foreign-made product value--(i) General. The value of the 
foreign-made product shall reflect the fair market price of such product 
in the market where the foreign product is sold. In most cases, this 
value will be the same as the actual cost to a buyer of the foreign-made 
product. When the foreign manufacturer and the buyer of their product 
are affiliated and have special arrangements that result in below-market 
pricing, the value of the foreign-made product should reflect fair 
market prices that would normally be charged to unaffiliated customers 
in the same foreign market. If fair market value cannot be determined 
based upon actual arms-length transaction data for the foreign-made 
product in question, then you must determine another reliable valuation 
method to calculate or derive the fair market value. Such methods may 
include the use of comparable market prices or costs of production and 
distribution. The EAR do not require calculations based upon any one 
accounting system or U.S. accounting standards. However, the method you 
use must be consistent with your business practice.
    (ii) Foreign-Made Software. In calculating the value of foreign-made 
software for purposes of the de minimis rules, you may make an estimate 
of future sales of that foreign software. The total value of foreign-
made software will be the sum of: The value of actual sales of that 
software based on orders received at the time the foreign software 
incorporates U.S.-origin content and, if applicable; and an estimate of 
all future sales of that software.

    Note to paragraph (a)(3): Regardless of the accounting systems, 
standard, or conventions you use in the operation of your business, you 
may not depreciate reported fair market values or otherwise reduce fair 
market values through related accounting conventions. Values may be 
historic or projected. However, you may rely on projected values only to 
the extent that they remain consistent with your documentation.

    (4) Calculating percentage value of U.S.-origin items. To determine 
the percentage value of U.S-origin controlled content incorporated in, 
commingled with, or ``bundled'' with the foreign produced item, divide 
the total value of the U.S.-origin controlled content by the foreign-
made item value, then multiply the resulting number times 100. If the 
percentage value of incorporated U.S.-origin items is equal to or less 
than the de minimis level described inSec. 734.4 of the EAR,

[[Page 243]]

then the foreign-made item is not subject to the EAR.
    (b) One-time report. As stated in paragraphs (c) and (d) ofSec. 
734.4, a one-time report is required before reliance on the de minimis 
rules for technology. The purpose of the report is solely to permit the 
U.S. Government to evaluate whether U.S. content calculations were 
performed correctly.
    (1) Contents of report. You must include in your report a 
description of the scope and nature of the foreign technology that is 
the subject of the report and a description of its fair market value, 
along with the rationale and basis for the valuation of such foreign 
technology. Your report must indicate the country of destination for the 
foreign technology reexports when the U.S.-origin controlled content 
exceeds 10%, so that BIS can evaluate whether the U.S.-origin controlled 
content was correctly identified based on paragraph (a)(1) of this 
Supplement. The report does not require information regarding the end-
use or end-users of the reexported foreign technology. You must include 
in your report the name, title, address, telephone number, E-mail 
address, and facsimile number of the person BIS may contact concerning 
your report.
    (2) Submission of report. You must submit your report to BIS using 
one of the following methods:
    (i) E-mail: [email protected];
    (ii) Fax: (202) 482-3355; or
    (iii) Mail or Hand Delivery/Courier: Regulatory Policy Division, 
U.S. Department of Commerce, Bureau of Industry and Security, Regulatory 
Policy Division, 14th and Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230.
    (3) 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 described in the report unless 
and until BIS contacts you and instructs you otherwise. BIS may contact 
you with questions concerning your report 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 within thirty days 
after filing the report with BIS, you may not rely upon the calculations 
described in the report, and may not use the de minimis rules for 
technology that are described inSec. 734.4 of this part, until BIS has 
indicated that such calculations were performed correctly.

[73 FR 56969, Oct. 1, 2008]



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.; 22 
U.S.C. 2151 note; 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; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 168; 
Notice of November 9, 2011, 76 FR 70319 (November 10, 2011); Notice of 
May 9, 2012, 77 FR 27559 (May 10, 2012); Notice of August 15, 2012, 77 
FR 49699 (August 16, 2012).

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



Sec.  736.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. A person may undertake transactions subject to the 
EAR without a license or other authorization, unless the regulations 
affirmatively state such a requirement. As such, if an export, reexport, 
or activity is subject to the EAR, the general prohibitions contained in 
this part and the License Exceptions specified in part 740 of the EAR 
must be reviewed to determine if a license is necessary. In the case of 
all exports from the United States, you must document your export as 
described in part 762 of the EAR regarding recordkeeping and clear your 
export through the U.S. Customs Service as described in part 758 of the 
EAR regarding export clearance requirements. Also note that for short 
supply controls all prohibitions and License Exceptions are in part 754 
of the EAR.
    (a) In this part we tell you:
    (1) The facts that make your proposed export, reexport, or conduct 
subject to these general prohibitions, and
    (2) The ten general prohibitions.
    (b) Your obligations under the ten general prohibitions and under 
the EAR depend in large part upon the five types of information 
described inSec. 736.2(a) of this part and upon the general 
prohibitions described inSec. 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.

[[Page 244]]

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 Supplement No. 1 to part 764 of 
the EAR for references to persons with whom your transaction may not be 
permitted; see General Prohibition Five (Paragraph (b)(5) of this 
section) and part 744 for references to end-users for whom you may need 
an export or reexport license).
    (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 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 inSec. 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 (U.S. Content Reexports). (i) You may not, 
without a license or license exception, reexport or export from abroad 
foreign-made commodities that incorporate controlled U.S.-origin 
commodities, foreign-made commodities that are ``bundled'' with 
controlled U.S.-origin software, foreign-made software that is 
commingled with controlled U.S.-origin software, or foreign-made

[[Page 245]]

technology that is commingled with controlled U.S.-origin technology if 
such items require a license according to any of the provisions in the 
EAR and incorporate or are commingled with more than a de minimis amount 
of controlled U.S. content, as defined inSec. 734.4 of the EAR 
concerning the scope of the EAR.
    (A) It incorporates more than the de minimis amount of controlled 
U.S. content, as defined inSec. 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)
    (i) Country scope of prohibition. You may not, without a license or 
license exception, reexport any item subject to the scope of this 
General Prohibition Three to a destination in Country Group D:1 or E: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 atSec. 
740.6 of the EAR, and
    (2) They are subject to national security controls as designated on 
the applicable ECCN of the Commerce Control List at part 774 of the EAR.
    (B) Conditions defining direct product of a plant. Foreign-made 
items are also subject to this General Prohibition 3 if they are the 
direct product of a complete plant or any major component of a plant if 
both of the following conditions are met:
    (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 inSec. 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 its Web site at http://www.bis.doc.gov. BIS 
may, on an exceptional basis, authorize activity otherwise prohibited by 
a denial order. SeeSec. 764.3(a)(2) of the EAR.

[[Page 246]]

    (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 inSec. 744.6(c) of the EAR, you may not 
engage in any activities prohibited bySec. 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 inSec. 
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 inSec. 
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 inSec. 745.2 of the EAR that 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 
Armenia, Azerbaijan, Belarus, Cambodia, Cuba, Georgia, Kazakhstan, 
Kyrgyzstan, Laos, 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, 
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

[[Page 247]]

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]

    Editorial Note: For Federal Register citations affectingSec. 
736.2, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



            Sec. 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 inSec. 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; Section 5(b) of the Syria Accountability and 
Lebanese Sovereignty Restoration Act of 2003 (SAA) gives the President 
authority to waive the application of certain prohibitions set forth in 
the SAA if the President determines that it is in the national security 
interest of the United States to do so. The President made such a 
determination in Executive Order 13338, finding that it was ``in the 
national security interest of the United States to waive application of 
subsection 5(a)(1) and 5(a)(2)(A) of the SAA so as to permit the 
exportation or reexportation of certain items as specified in the 
Department of Commerce's General Order No. 2.'' The President's 
reference to General Order No. 2 addresses applications to export and 
reexport the following items, which are considered on a case-by-case 
basis as opposed to the general policy of denial set forth in section 
746.9 of the Regulations: items in support of activities, diplomatic or 
otherwise, of the United States Government (to the extent that 
regulation of such exportation or reexportation would not fall within 
the President's constitutional authority to conduct the nation's foreign 
affairs); medicine (on the CCL) and medical devices (both as defined in 
part 772 of the EAR); parts and components intended to ensure the safety 
of civil aviation and the safe operation of commercial passenger 
aircraft; aircraft chartered by the Syrian Government for the transport 
of Syrian Government officials on official Syrian Government business; 
telecommunications equipment and associated computers, software and 
technology; and items in support of United Nations operations in Syria. 
The total dollar value of each approved license for aircraft parts for 
flight safety normally will be limited to no more than $2 million over 
the 24-month standard license term, except in the case of complete 
overhauls.

    Note to General Order No. 2: The controls for exports and reexports 
to Syria are set forth inSec. 746.9 of the EAR.

    General Order No. 3 [Reserved]
    General Order No. 4 of June 13, 2008, as amended on September 3, 
2009, amending existing licenses for exports of consolidated gift 
parcels to Cuba due to changes in License Exception GFT.
    (a) Section 740.12(a) of the EAR authorizes, among other things, 
certain exports of gift parcels to Cuba pursuant to a license exception. 
However, consolidated shipments of multiple gift parcels to Cuba require 
a license even if all of the individual items within the consolidated 
gift parcel would be eligible for this license exception if shipped 
alone.
    (b) Notwithstanding any statements to the contrary on the license 
itself, licenses authorizing the export to Cuba of consolidated gift 
parcels described in paragraph (a) of this order that are valid on 
September 3, 2009 authorize the export of consolidated shipments to Cuba 
of gift parcels that comply with the requirements of License Exception 
GFT

[[Page 248]]

found inSec. 740.12(a) of the EAR as of September 3, 2009.
    (c) This General Order does not change any of the other terms 
(including total value of items that may be exported or expiration date) 
of the licenses it affects.

[63 FR 49426, Sept. 16, 1998, as amended at 65 FR 76562, Dec. 7, 2000; 
69 FR 26768, May 14, 2004; 69 FR 42333, July 15, 2004; 69 FR 76843, Dec. 
23, 2004; 71 FR 32273, June 5, 2006; 71 FR 52427, Sept. 6, 2006; 71 FR 
53965, Sept. 13, 2006; 72 FR 31718, June 8, 2007; 73 FR 33673, June 13, 
2008; 73 FR 54503, Sept. 22, 2008; 73 FR 68324, Nov. 18, 2008; 74 FR 
45988, Sept. 8, 2009; 76 FR 77116, Dec. 12, 2011]



        Sec. 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 withSec. 
301(g) of Title 13, United States Code.
    Administrative Order Two: Conduct of Business and Practice in 
Connection with Export Control Matters.
    (a) Exclusion of persons guilty of unethical conduct or not 
possessing required integrity and ethical standards.
    (1) 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.
    (2) Grounds for exclusion. Among the grounds for exclusion are the 
following:
    (i) 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;
    (ii) Offering or making gifts or promises thereof to any such 
officer or employee for any other reason;
    (iii) 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;
    (iv) 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
    (v) 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.
    (3) Definition. As used in this Administration Order, the terms 
``practice before BIS'' and ``appear before BIS'' include:
    (i) 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;
    (ii) 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;
    (iii) Participating on behalf of another in any proceeding pending 
before BIS; and
    (iv) Submission to a customs official on behalf of another of a 
license or Shipper's Export Declaration or other export control 
document.
    (4) Proceedings. All proceedings under this Administrative Order 
shall be conducted in the same manner as provided in part 766 of the 
EAR.
    (b) Employees and former employees. Persons who are or at any time 
have been employed on a full-time or part-time, compensated or 
uncompensated, basis by the U.S. Government are subject to the 
provisions of 18 U.S.C. 203, 205, and 207 (Pub. L. 87-849, 87th 
Congress) in connection with representing a private party or interest 
before the U.S. Department of Commerce in connection with any export 
control matter.

[61 FR 12754, Mar. 25. 1996, as amended at 70 FR 54628, Sept. 16, 2005; 
70 FR 62238, Oct. 31, 2005]

[[Page 249]]



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); 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; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 U.S.C. 7201 
et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 15, 2012, 77 FR 49699 (August 16, 2012).

    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.
    (3) Items that warrant control for export or reexport but currently 
are not permanently classified on the CCL. Items subject to temporary 
CCL controls are classified under the ECCN 0Y521 series (i.e., 0A521, 
0B521, 0C521, 0D521, and 0E521) pursuant toSec. 742.6(a)(7) of the EAR 
while a determination is made as to whether classification under a 
revised or new ECCN, or an EAR99 designation, is appropriate.
    (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.

[61 FR 12756, Mar. 25, 1996, as amended at 77 FR 22198, Apr. 13, 2012]



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

[[Page 250]]

within which subparagraph(s) your items are identified.
    (d) Entries--(1) Composition of an entry. Within each group, 
individual items are identified by an Export Control Classification 
Number (ECCN). Each number consists of a set of digits and a letter. The 
first digit identifies the general category within which the entry falls 
(e.g., 3A001). The letter immediately following this first digit 
identifies under which of the five groups the item is listed (e.g., 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 Wassenaar 
Arrangement 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
UN United Nations Embargo
SI Significant Items
SL Surreptitious Listening

    (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

[[Page 251]]

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 by the scope of Yes) appears next to each available 
ECCN-driven License Exception. Some ECCNs have License Exception STA 
exclusion paragraphs. These paragraphs identify items for which the 
License Exception STA provisions inSec. 740.20(c)(2) of the EAR may 
not be used, but do not otherwise affect License Exception STA 
availability. 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; 70 FR 54628, Sept. 16, 2005; 71 FR 20883, Apr. 24, 2006; 71 FR 
67035, Nov. 20, 2006; 72 FR 43531, Aug. 6, 2007; 76 FR 35286, June 16, 
2011]



Sec.  738.3  Commerce Country Chart structure.

    (a) Scope. The Commerce Country Chart allows you to determine the 
Commerce Control List (CCL) export and reexport license requirements for 
most items listed on the CCL. Such license requirements are based on the 
Reasons for Control listed in the Export Control Classification Number 
(ECCN) that applies to the item. Some ECCNs, however, impose license 
requirements either without reference to a reason for control code that 
is listed on the Commerce Country Chart, or in addition to such a 
reference. Those ECCNs may state their license requirements in full in 
their ``Reasons for Control'' sections or they may refer the reader to 
another provision of the EAR for license requirement information. In 
addition, some ECCNs do not impose license requirements, but refer the 
reader to the regulations of another government agency that may impose 
license requirements on the items described in that ECCN.
    (1) ECCNs 0A983, 5A001.i, 5A980, 5D001 (for 5A001.i, or for 5E001.a 
(for 5A001.i or for 5D001.a (for 5A001.i))), 5D980, 5E001.a (for 
5A001.i, or for 5D001.a (for 5A001.i)) and 5E980. A license is required 
for all destinations for items controlled under these entries. For items 
controlled by

[[Page 252]]

0A983, 5E001.a (for 5A001.i, or for 5D001.a (for 5A001.i)) and 5E980, no 
license exceptions apply. For items controlled by 5A001.i, 5A980, 5D001 
(for 5A001.i or for 5E001.a (for 5A001.i, or for 5D001.a (for 5A001.i))) 
and 5D980, License Exception GOV may apply if your item is consigned to 
and for the official use of an agency of the U.S. Government (seeSec. 
740.2(a)(3)). If your item is controlled by 0A983, 5A001.i, 5A980, 5D001 
(for 5A001.i or for 5E001.a (for 5A001.i, or for 5D001.a (for 
5A001.i))), 5D980, 5E001.a (for 5A001.i, or for 5D001.a (for 5A001.i)) 
or 5E980 you should proceed directly to Part 748 of the EAR for license 
application instructions and Sec.Sec. 742.11 or 742.13 of the EAR for 
information on the licensing policy relevant to these types of 
applications.
    (2) [Reserved]
    (b) Countries. The first column of the Country Chart lists countries 
in alphabetical order. There are a number of destinations that are not 
listed in 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, dependency 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, dependency or department. For example, if your destination 
is the Cayman Islands, a dependent territory of the United Kingdom, 
refer to the United Kingdom on the Country Chart for licensing 
requirements. In addition, if your destination is Liechtenstein, which 
serves as one territory with Switzerland for purposes of the EAR, refer 
to Switzerland 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; 70 FR 8249, Feb. 18, 2005; 71 FR 67035, Nov. 
20, 2006; 76 FR 54930, Sept. 6, 2011; 76 FR 70339, Nov. 14, 2011; 77 FR 
39367, July 2, 2012]



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 classified under 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. Note that not all license requirements set forth 
under the ``License Requirements'' section of an ECCN refer you to the 
Commerce Country Chart, but in some cases this section will contain 
references to a specific section in the EAR for license requirements. In 
such cases, this section would not apply.
    (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

[[Page 253]]

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 the License 
Requirement section does not refer you to any other part of the EAR to 
determine license requirements. For example, any applicable encryption 
registration and classification requirements described inSec. 
742.15(b) of the EAR must be met for certain mass market encryption 
items to effect your shipment using the symbol ``NLR.'' Proceed to parts 
758 and 762 of the EAR for information on export clearance procedures 
and recordkeeping requirements. Note that although you may stop after 
determining a license is required based on the first Reason for Control, 
it is best to work through each applicable Reason for 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 of 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

[[Page 254]]

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; 70 
FR 54628, Sept. 16, 2005; 73 FR 57503, Oct. 3, 2008; 74 FR 52883, Oct. 
15, 2009; 75 FR 36490, June 25, 2010]

[[Page 255]]

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

                                                                                      [Reason for control]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                   Chemical and biological          Nuclear        National security   Missile  Regional stability   Firearms           Crime control           Anti-terrorism
                                           weapons             nonproliferation  --------------------   tech   -------------------- 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 \2 3\.................        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........................        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
Aruba.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Australia \3\.................        X   ........  ........  ........  ........        X   ........        X         X
Austria \3\ \4\...............        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 \3\...................        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 \3\..................        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

[[Page 256]]

 
Congo (Democratic Republic of         X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
 the).........................
Congo (Republic of the) \1\...        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Costa Rica....................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X
Cote d'Ivoire \1\.............        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Croatia \3\...................        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.
Cura[ccedil]ao................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........
Cyprus \2\ \3\ \4\............        X   ........  ........  ........  ........        X         X         X         X         X   ..........        X   ........        X
Czech Republic \3\............        X   ........  ........  ........  ........        X   ........        X         X
Denmark \3\...................        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 \1\...................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Estonia \3\...................        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 \3\ \4\...............        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........        X   ........        X
France \3\....................        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 \3\...................        X   ........  ........  ........  ........        X   ........        X         X
Ghana.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Greece \3\....................        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 \3\...................        X   ........  ........  ........  ........        X   ........        X         X
Iceland \3\...................        X   ........  ........        X   ........        X   ........        X         X
India.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Indonesia.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X

[[Page 257]]

 
Iran \1\......................                       See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.
Iraq \1\......................        X         X         X         X         X         X         X         X         X         X   ..........        X         X
Ireland \3\ \4\...............        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........        X   ........        X
Israel........................        X         X         X         X         X         X         X         X         X         X   ..........        X   ........        X
Italy \3\.....................        X   ........  ........  ........  ........        X   ........        X         X
Jamaica.......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X
Japan \3\.....................        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 \1\..............  See Sections 742.19 and 746.4 of the EAR to determine whether a license is required in order to export or reexport to this destination.
Korea, South \3\ \4\..........        X   ........  ........  ........  ........        X   ........        X         X         X   ..........        X   ........        X
Kosovo........................        X         X   ........        X   ........        X         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 \3\....................        X   ........  ........  ........  ........        X   ........        X         X
Lebanon \1\...................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X
Lesotho.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Liberia \1\...................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Libya \1\.....................        X         X         X         X         X         X         X         X         X         X   ..........        X   ........        X
Liechtenstein \5\.............        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........        X   ........        X   ........
Lithuania \3\.................        X   ........  ........        X   ........        X   ........        X         X
Luxembourg \3\................        X   ........  ........  ........  ........        X   ........        X         X
Macau.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X
Macedonia (The Former Yugoslav        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
 Republic of).................
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 \2\ \3\ \4\.............        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 (Federated State           X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
 of)..........................
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
Montenegro....................        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 \3\...............        X   ........  ........  ........  ........        X   ........        X         X

[[Page 258]]

 
New Zealand \3\...............        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 \3\....................        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
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 \3\....................        X   ........  ........  ........  ........        X   ........        X         X
Portugal \3\..................        X   ........  ........  ........  ........        X   ........        X         X
Qatar.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X
Romania \3\...................        X   ........  ........  ........  ........        X   ........        X         X
Russia........................        X         X         X   ........  ........        X         X         X         X         X   ..........        X         X
Rwanda........................        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
St. Lucia.....................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X
St. Vincent and the Grenadines        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X
Samoa.........................        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
Serbia........................        X         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
Sint Maarten (the Dutch two-          X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
 fifths of the island of Saint
 Martin)......................
Slovakia \3\..................        X   ........  ........  ........  ........        X   ........        X         X
Slovenia \3\..................        X   ........  ........  ........  ........        X   ........        X         X
Solomon Islands...............        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Somalia \1\...................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
South Africa \2\ \3\ \4\......        X         X   ........  ........  ........        X         X         X         X         X   ..........        X   ........        X
South Sudan, Republic of......        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Spain \3\.....................        X   ........  ........  ........  ........        X   ........        X         X

[[Page 259]]

 
Sri Lanka.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X
Sudan \1\.....................        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 \3\ \4\................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........        X   ........        X
Switzerland \3\ \4\...........        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........        X   ........        X
Syria.........................                     SeeSec.  746.9 of the EAR to determine whether a license is required in order to export or reexport to this destination.
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
Timor-Leste...................        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 \3\....................        X   ........  ........  ........  ........        X   ........        X         X
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
United Arab Emirates..........        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X
United Kingdom \3\............        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
Yemen.........................        X         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\ SeeSec.  746.1(b) for United Nations Security Council Sanctions under the EAR. SeeSec.  746.3 for United Nations Security Council-related license requirements for exports and reexports
  to Iraq or transfer within Iraq under the EAR, as well as regional stability licensing requirements not included in the Country Chart.
\2\ SeeSec.  742.4(a) for special provisions that apply to exports and reexports to these countries of certain thermal imaging cameras.
\3\ SeeSec.  742.6(a)(3) for special provisions that apply to military commodities that are subject to ECCN 0A919.
\4\ SeeSec.  742.6(a)(2) and (4)(ii) regarding special provisions for exports and reexports of certain thermal imaging cameras to these countries.
\5\ Refer to Switzerland for licensing requirements for Liechtenstein under the EAR.


[64 FR 17970, Apr. 13, 1999]

    Editorial Note: For Federal Register citations affecting supplement 
no. 1 to part 738, see the List of CFR Sections Affected, which appears 
in the Finding Aids section of the printed volume and at www.fdsys.gov.

[[Page 260]]



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 (APP).
740.8 [Reserved]
740.9 Temporary imports, exports, and reexports (TMP).
740.10 Servicing and replacement of parts and equipment (RPL).
740.11 Governments, international organizations, international 
          inspections under the Chemical Weapons Convention, and the 
          International Space Station (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, software and technology (ENC).
740.18 Agricultural commodities (AGR).
740.19 Consumer Communications Devices (CCD).
740.20 License Exception Strategic Trade Authorization (STA).

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 Favorable Treatment 
          Countries

     Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 7201 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 15, 
2012, 77 FR 49699 (August 16, 2012).



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) Shippers Export Declaration or Automated Export System 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. SeeSec. 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 261]]

on commercial documents in accordance with Destination Control Statement 
requirements ofSec. 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 primarily useful for surreptitious interception of 
wire, oral, or electronic communications, or related software, 
controlled under ECCNs 5A001.i, 5A980, 5D001 (for 5A001.i or for 5E001.a 
(for 5A001.i, or for 5D001.a (for 5A001.i))), or 5D980, unless the item 
is consigned to and for the official use of an agency of the U.S. 
Government (seeSec. 740.11(b)(2)(ii) of this part, Governments (GOV)). 
No license exceptions apply for 5E001.a (for 5A001.i, or for 5D001.a 
(for 5A001.i)) or for 5E980.
    (4) The item being exported or reexported is subject to the license 
requirements described inSec. 742.7 of the EAR and the export or 
reexport is not:
    (i) Being made to Australia, Japan, New Zealand, or a NATO (North 
Atlantic Treaty Organization) member state (see NATO membership listing 
inSec. 772.1 of the EAR);
    (ii) Authorized bySec. 740.11(b)(2)(ii) (official use by personnel 
and agencies of the U.S. government);
    (iii) Authorized bySec. 740.14(e) of the EAR (certain shotguns and 
shotgun shells for personal use); or
    (iv) Authorized bySec. 740.20 of the EAR (License Exception STA).
    (5)(i) 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 underSec. 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), orSec. 
740.15(c) (License Exception AVS for equipment and spare parts for 
permanent use on a vessel or aircraft).
    (ii) MT controlled commodities described in ECCNs 2A001 or 2A101 may 
be exported or reexported underSec. 740.9(a)(2)(ii) (License Exception 
TMP) orSec. 740.10 (License Exception RPL) as one-for-one replacement 
for equipment previously legally exported or reexported.
    (6) The export or reexport is to a sanctioned destination (Cuba, 
Iran, North Korea, and Syria), unless a license exception or portion 
thereof is specifically listed in the license exceptions paragraph 
pertaining to a particular sanctioned country in part 746 of the EAR.
    (7) ``Space qualified'' items. Commodities defined in 3A001.b.8 
(Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 6A002.a.1, 
6A008.j.1, or 6A998.b; ``software'' for commodities defined in 3A001.b.8 
(Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 6A002.a.1, 
6A008.j.1, or 6A998.b and controlled under ECCNs 3D001 (Traveling Wave 
Tube Amplifiers (TWTAs) exceeding 18 GHz), 6D001, 6D002, 6D991; and 
``technology'' for commodities defined in ECCNs 3A001.b.8 (Traveling 
Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 6A002.a.1, 6A008.j.1, or 
6A998.b and controlled under ECCNs 3E001, 6E001, 6E002, 6E101, 6E991.
    (8) The item is controlled under ECCNs 2A983, 2A984, 2D983, 2D984, 
2E983 or 2E984 and the License Exception is other than:
    (i) RPL, under the provisions ofSec. 740.10, includingSec. 
740.10(a)(3)(v), which

[[Page 262]]

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 ofSec. 
740.11(b)(2)(ii); or
    (iii) TSU, under the provisions ofSec. 740.13(a) and (c).
    (9) The item is a QRS11-00100-100/101 Micromachined Angular Rate 
Sensor controlled for RS reasons under ECCN 7A994.
    (10) The commodity being exported or reexported is subject to the 
license requirements ofSec. 742.11 of the EAR.
    (11) The item is a ``military commodity'' subject to ECCN 0A919, 
except that such military commodities may be reexported in accordance 
withSec. 740.11(b)(2)(ii) (official use by personnel and agencies of 
the U.S. Government).
    (12)-(13) [Reserved]
    (14) Items classified under ECCNs 0A521, 0B521, 0C521, 0D521 and 
0E521 may only be authorized by License Exception GOV (Sec.  
740.11(b)(2)(ii)) or an item-specific license exception identified in 
Supplement No. 5 to part 774 for a particular ECCN 0Y521 item.

    Note to paragraph (a)(14): Item-specific license exception 
availability is specific to each ECCN 0Y521 entry in Supplement No. 5 to 
part 774 and may not be used for any other ECCN 0Y521 entries in the 
Supplement. The U.S. Government makes a determination at the time items 
are classified under ECCNs 0A521, 0B521, 0C521, 0D521 and 0E521 
regarding whether any license exceptions will be available, in addition 
to License Exception GOV (Sec.  740.11(b)(2)(ii)).

    (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 may inform an exporter, that before using any License 
Exception, a notice be submitted with BIS concerning the proposed 
export.
    (d) SeeSec. 746.3 for restrictions on certain transfers within 
Iraq of items exported or reexported to Iraq pursuant to a License 
Exception.

[61 FR 12768, Mar. 25, 1996]

    Editorial Note: For Federal Register citations affectingSec. 
740.2, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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 thisSec. 
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

[[Page 263]]

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

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

    (4) Prohibition against evasion of license requirements. Any 
activity involving the use of this License Exception to evade license 
requirements is prohibited. Such devices include, but are not limited 
to, the splitting or structuring of orders to meet applicable LVS dollar 
value limits, as prohibited by paragraphs (d)(1) (ii) and (iii) of this 
section.
    (5) Exports and reexports of encryption components or spare parts. 
For components or spare parts controlled for ``EI'' reasons under ECCN 
5A002, exports and reexports under this License Exception must be 
destined to support a commodity previously authorized for export or 
reexport.
    (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. SeeSec. 743.1 of the EAR for reporting 
requirements for

[[Page 264]]

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; 73 FR 57504, Oct. 3, 2008]



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 where 
the Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) 
indicates a license requirement 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, as amended at 69 FR 5690, Feb. 6, 2004]



Sec.  740.5  Civil end-users (CIV).

    (a) Scope. License Exception CIV authorizes exports and reexports of 
items on the Commerce Control List (CCL) (Supplement No. 1 to part 774 
of the EAR) that have a license requirement to the ultimate destination 
pursuant to the Commerce Country Chart (Supplement No. 1 to part 738 of 
the EAR) for NS reasons only; and identified by ``CIV--Yes'' in the 
License Exception section of the Export Control Classification Number 
(ECCN), provided the items are destined to civil end-users for civil 
end-uses in Country Group D:1, except North Korea (Supplement No. 1 to 
part 740 of this part).
    (b) Restrictions--(1) Restricted end-users and end-uses. You may not 
use CIV if you ``know'' the item will be or is intended to be exported, 
reexported, or transferred (in-country) to military uses or military 
end-users. Such exports, reexports, and transfers (in-country) 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.
    (2) Visa status. Deemed exports under License Exception CIV are not 
authorized to foreign nationals in an expired visa status. It is the 
responsibility of the exporter to ensure that, in the case of deemed 
exports, the foreign national maintains a valid U.S. visa, if required 
to hold a visa from the United States.
    (c) Reporting requirement. SeeSec. 743.1 of the EAR for reporting 
requirements for exports of certain items under this License Exception.
    (d) Foreign National Review (FNR) requirement for deemed exports--
(1) Submission requirement. Prior to disclosing eligible technology to a 
foreign national under this License Exception, you must submit a Foreign 
National Review (FNR) request to BIS, as required underSec. 748.8(s) 
of the EAR. Your FNR request must include information about the foreign 
national required underSec. 748.8(t) of the EAR and set forth in 
Supplement No. 2 of part 748 of the EAR.
    (2) Confirmation of eligibility. You may not use License Exception 
CIV for a deemed export until you have obtained confirmation of 
eligibility by checking the System for Tracking Export License 
Applications (https://snapr.bis.doc.gov/stela) or through the Simplified 
Network Application Procedure (https://snapr.bis.doc.gov).
    (3) Action by BIS. Within nine business days of the registration of 
the FNR request, BIS will refer the FNR request electronically, along 
with all necessary documentation for interagency review, or if necessary 
return the FNR request without action (e.g., if the information provided 
is incomplete). Processing time starts at the point at which the 
notification is registered into BIS's electronic system.
    (4) Review by other departments or agencies. The Departments of 
Defense, State, Energy, and other agencies, as appropriate, may review 
the FNR request. Within 30 calendar days of receipt of the BIS referral, 
the reviewing agency will provide BIS with a recommendation either to 
approve or deny the FNR request. A reviewing agency that fails to 
provide a recommendation within 30 days shall be deemed to have no 
objection to the final decision of BIS.
    (5) Action on the FNR Request. After the interagency review period, 
BIS will promptly notify the applicant regarding the FNR request, i.e., 
whether the FNR request is approved, denied, or

[[Page 265]]

more time is needed to consider the request.

[69 FR 64493, Nov. 5, 2004, as amended at 73 FR 68324, Nov. 18, 2008; 75 
FR 31680, June 4, 2010]



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

    (a) Scope. License Exception TSR permits exports and reexports of 
technology and software where the Commerce Country Chart (Supplement No. 
1 to part 738 of the EAR) indicates a license requirement to the 
ultimate destination for national security reasons only and identified 
by ``TSR--Yes'' in entries on the CCL, provided the software or 
technology is destined to Country Group B. (See Supplement No. 1 to part 
740.) A written assurance is required from the consignee before 
exporting or reexporting under this License Exception.
    (1) Required assurance for export of technology. You may not export 
or reexport technology under this License Exception until you have 
received from the importer a written assurance that, without a 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:1; or
    (ii) Export to Country Groups D:1 or E:1 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:1 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:1; nor
    (ii) Export to Country Groups D:1 or E:1 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. SeeSec. 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; 69 FR 5690, Feb. 6, 2004; 75 FR 44890, July 
30, 2010]



Sec.  740.7  Computers (APP).

    (a) Scope--(1) Commodities. License Exception APP authorizes exports 
and reexports of computers, including ``electronic assemblies'' and 
specially

[[Page 266]]

designed components therefor controlled by ECCN 4A003, except ECCN 
4A003.e (equipment performing analog-to-digital conversions exceeding 
the limits in ECCN 3A001.a.5.a), 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 APP eligibility, use the APP parameter to the exclusion of 
other technical parameters in ECCN 4A003.
    (2) Technology and software. License Exception APP authorizes 
exports of technology and software controlled by ECCNs 4D001 and 4E001 
specially designed or modified for the ``development'', ``production'', 
or ``use'' of computers, including ``electronic assemblies'' and 
specially designed components therefor classified in ECCN 4A003, except 
ECCN 4A003.e (equipment performing analog-to-digital conversions 
exceeding the limits in ECCN 3A001.a.5.a), to Computer Tier countries as 
provided by this section.
    (b) Restrictions. (1) Related equipment controlled under ECCN 
4A003.g may not be exported or reexported under this License Exception 
when exported or reexported separately from eligible computers 
authorized under this License Exception.
    (2) Access and release restrictions. (i)[Reserved]
    (ii) Technology and source code. Technology and source code eligible 
for License Exception APP may not be released to nationals of Cuba, 
Iran, North Korea, Sudan, or Syria.
    (3) Computers and software eligible for License Exception APP may 
not be reexported or transferred (in country) 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 (b)(5) 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 APP beyond the 
eligibility limit allowed to your country of destination.
    (5) License Exception APP does not authorize exports, reexports and 
transfers (in-country) for nuclear, chemical, biological, or missile 
end-users and end-uses subject to license requirements underSec. 
744.2,Sec. 744.3,Sec. 744.4, andSec. 744.5 of the EAR. Such 
exports, reexports and transfers (in-country) will continue to require a 
license and will be considered on a case-by-case basis. Reexports and 
transfers (in-country) to these end-users and end-uses in eligible 
countries are strictly prohibited without prior authorization.
    (6) Foreign nationals in an expired visa status are not eligible to 
receive deemed exports of technology or source code under this License 
Exception. It is the responsibility of the exporter to ensure that, in 
the case of deemed exports, the foreign national maintains a valid U.S. 
visa, if required to hold a visa from the United States.
    (c) Computer Tier 1 destinations--(1) Eligible destinations. The 
destinations that are eligible to receive exports and reexports under 
paragraph (c) of this section include: Albania, Antigua and Barbuda, 
Argentina, Aruba, Australia, Austria, Bahamas (The), Bangladesh, 
Barbados, Belgium, Belize, Benin, Bhutan, Bolivia, Botswana, Brazil, 
Brunei, Bulgaria, Burkina Faso, Burundi, Cameroon, Cape Verde, Central 
African Republic, Chad, Chile, Colombia, Congo (Democratic Republic of 
the), Congo (Republic of the), Costa Rica, Cote d'Ivoire, Croatia, 
Cura[ccedil]ao, Cyprus, Czech Republic, Denmark, Dominica, Dominican 
Republic, Ecuador, El Salvador, Equatorial Guinea, Eritrea, Estonia, 
Ethiopia, Fiji, Finland, France, Gabon, 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), Latvia, Lesotho, 
Liberia, Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Maldives, 
Mali, Malta, Marshall Islands, Mauritius, Mexico, Micronesia (Federated 
States of), Monaco, Mozambique, Namibia,

[[Page 267]]

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 the Grenadines, Sao Tome & Principe, Samoa, San Marino, 
Senegal, Seychelles, Sierra Leone, Singapore, Sint Maarten (the Dutch 
two-fifths of the island of Saint Martin), Slovakia, Slovenia, Solomon 
Islands, Somalia, South Africa, Spain, Sri Lanka, Surinam, Swaziland, 
Sweden, Switzerland, Taiwan, Tanzania, Togo, Tonga, Thailand, Timor-
Leste, Trinidad and Tobago, Turkey, Tuvalu, Uganda, United Kingdom, 
Uruguay, Vatican City, Venezuela, Western Sahara, Zambia, and Zimbabwe.
    (2) Eligible commodities. All computers, including electronic 
assemblies and specially designed components therefore are eligible for 
export or reexport under License Exception APP to Tier 1 destinations, 
subject to the restrictions in paragraph (b) of this section.
    (3) Eligible technology and software. (i) Technology and software 
described in paragraph (a)(2) of this section for computers of unlimited 
APP are eligible for export or reexport under License Exception APP to: 
Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, 
Greece, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, 
Norway, Portugal, Spain, Sweden, Switzerland, Turkey, or the United 
Kingdom; and
    (ii) ``Development'' and ``production'' technology and source code 
described in paragraph (a)(2) of this section for computers with an APP 
less than or equal to 25 Weighted TeraFLOPS (WT) are eligible for deemed 
exports under License Exception APP to foreign nationals of Tier 1 
destinations, other than the destinations that are listed in paragraph 
(c)(3)(i) of this section, subject to the restrictions in paragraph (b) 
of this section.
    (iii) ``Use'' technology and source code described in paragraph 
(a)(2) of this section for computers with an APP less than or equal to 
120 WT are eligible for deemed exports under License Exception APP to 
foreign nationals of Tier 1 destinations, other than the destinations 
that are listed in paragraph (c)(3)(i) of this section, subject to the 
restrictions in paragraph (b) of this section.
    (d) Computer Tier 3 destinations--(1) Eligible destinations. 
Eligible destinations under paragraph (d) of this section are: 
Afghanistan, Algeria, Andorra, Angola, Armenia, Azerbaijan, Bahrain, 
Belarus, Bosnia & Herzegovina, Burma, Cambodia, China (People's Republic 
of), Comoros, Djibouti, Egypt, Georgia, India, Iraq, Israel, Jordan, 
Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Laos, Lebanon, Libya, Macau, 
Macedonia (The Former Yugoslav Republic of), Mauritania, Moldova, 
Mongolia, Montenegro, Morocco, Oman, Pakistan, Qatar, Russia, Saudi 
Arabia, Serbia, Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab 
Emirates, Uzbekistan, Vanuatu, Vietnam, and Yemen.
    (2) Eligible commodities. None.
    (3) Eligible technology and source code. (i) ``Development,'' and 
``production'' technology and source code described in paragraph (a)(2) 
of this section for computers with an APP less than or equal to 12 
Weighted TeraFLOPs (WT) are eligible for deemed exports under License 
Exception APP to foreign nationals of Tier 3 destinations as described 
in paragraph (d)(1) of this section, subject to the restrictions in 
paragraph (b) and the provisions of paragraph (d)(4) of this section.
    (ii) ``Use'' technology and source code described in paragraph 
(a)(2) of this section for computers with an APP less than or equal to 
25 WT are eligible for deemed exports under License Exception APP to 
foreign nationals of Tier 3 destinations as described in paragraph 
(d)(1) of this section, subject to the restrictions in paragraph (b) and 
the provisions of paragraph (d)(4) of this section.
    (4) Foreign National Review (FNR) requirement for deemed exports--
(i) Submission requirement. Prior to disclosing eligible technology or 
source code to a foreign national of a Computer Tier 3 country that is 
not also a country listed in Country Group B in Supplement No. 1 to part 
740 of the EAR under this License Exception, you must submit a Foreign 
National Review (FNR) request to BIS, as required under

[[Page 268]]

Sec.  748.8(s) of the EAR. Your FNR request must include information 
about the foreign national required underSec. 748.8(t) of the EAR and 
set forth in Supplement No. 2 of part 748 of the EAR.
    (ii) Confirmation of eligibility. You may not use License Exception 
APP, until you have obtained confirmation of eligibility via either 
BIS's System for Tracking Export License Applications (STELA) (https://
snapr.bis.doc.gov/stela) from BIS's Simplified Network Application 
Procedure (SNAP). See http://www.bis.doc.gov/SNAP/index.htm for more 
information about SNAP.
    (iii) Action by BIS. Within nine business days of the registration 
of the FNR request, BIS will electronically refer the FNR request for 
interagency review, or if necessary return the FNR request without 
action (e.g., if the information provided is incomplete). Processing 
time starts at the point at which the notification is registered into 
BIS's electronic system.
    (iv) Review by other departments or agencies. The Departments of 
Defense, State, Energy, and other agencies, as appropriate, may review 
the FNR request. Within 30 calendar days of receipt of the BIS referral, 
the reviewing agency will provide BIS with a recommendation either to 
approve or deny the FNR request. A reviewing agency that fails to 
provide a recommendation within 30 days shall be deemed to have no 
objection to the final decision of BIS.
    (v) Action on the FNR Request. After the interagency review period, 
BIS will promptly notify the applicant regarding the FNR request, i.e., 
whether the FNR request is approved, denied, or more time is needed to 
consider the request.
    (e) Reporting requirements. SeeSec. 743.1 of the EAR for reporting 
requirements of certain items under License Exception APP.

[71 FR 20883, Apr. 24, 2006, as amended at 71 FR 51717, Aug. 31, 2006; 
71 FR 68439, Nov. 27, 2006; 72 FR 13441, Mar. 22, 2007; 72 FR 60249, 
Oct. 24, 2007; 73 FR 51218, Sept. 2, 2008; 73 FR 68324, Nov. 18, 2008; 
75 FR 31680, June 4, 2010; 75 FR 36514, June 28, 2010; 76 FR 36988, June 
24, 2011; 76 FR 54930, Sept. 6, 2011; 76 FR 70339, Nov. 14, 2011; 77 FR 
39367, July 2, 2012]



Sec.  740.8  [Reserved]



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 restrictions 
described in paragraphs (a)(2) through (a)(5) of this section. U.S. 
persons, as defined in paragraph (a)(2)(i)(C), may export and reexport 
technology for temporary use abroad under paragraph (a)(2)(i) of this 
section to U.S. persons or their employees traveling or temporarily 
assigned abroad (including use in international waters) subject to the 
conditions and restrictions described in paragraphs (a)(2) through 
(a)(5) of this section. Paragraph (a) does not authorize any new release 
of technology. Persons receiving technology exported or reexported under 
paragraph (a)(2)(i) must already be authorized to receive the same 
technology in accordance with the EAR (e.g., through a license or 
license exception), or, alternatively, not require such authorization on 
account of the technology's NLR status. Technology exports and reexports 
authorized under this paragraph (a) may be made as actual shipments, 
transmissions, or releases. Exports and reexports of encryption items 
controlled under ECCN 5E002 are not permitted pursuant to this paragraph 
(a). Items shipped as temporary exports and reexports under the 
provisions of this paragraph (a) must be returned to the country from 
which they were exported or reexported as soon as practicable but, 
except in circumstances described in this section, no later than one 
year from the date of export or reexport. This requirement does not 
apply if the items 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.

[[Page 269]]

    (i) Additional requirement for return or disposal of technology. 
Technology shipped or transmitted as a temporary export or reexport 
under the provisions of this paragraph (a)(2)(i)(A) that exists in a 
format that could facilitate a subsequent release of the technology must 
be returned or disposed of in accordance with paragraph (a)(4) of this 
section. Examples of technology that exists in a format that could 
facilitate a subsequent release of technology include the following: 
technology in a hard copy format (e.g. blue prints, manuals); technology 
in an electronic format stored on an electronic device (e.g. laptop, 
PDA); or technology stored on removable storage media and devices (e.g. 
CD-ROMS, flash drives, video cassettes).
    (ii) [Reserved]
    (2) Eligible items. The following items are eligible to be shipped 
under this paragraph (a):
    (i) Tools of trade. Usual and reasonable kinds and quantities of 
tools of trade (commodities, software, and technology) for use in a 
lawful enterprise or undertaking of the exporter. For the export or 
reexport of commodities or software, the transaction must meet the 
requirements of paragraph (a)(2)(i)(A) or paragraph (a)(2)(i)(B) of this 
section. For the export or reexport by U.S. persons of technology 
authorized under this paragraph, the transaction must meet the 
requirements of paragraph (a)(2)(i)(A) of this section.Destinations 
other than Country Group E:2, Sudan or Syria. Exports and reexports of 
tools of trade for use by the exporter or employees of the exporter may 
be made only to destinations other than Country Group E:2, Sudan, or 
Syria. The tools of trade must remain under the ``effective control'' 
(seeSec. 772.1 of the EAR) of the exporter or the exporter's employee. 
Eligible tools of trade may include, but are not limited to, equipment 
and software as is necessary to commission or service items, provided 
that the equipment or software is appropriate for this purpose and that 
all items to be commissioned or serviced are of foreign origin, or if 
subject to the EAR, have been lawfully exported or reexported. For 
exports and reexports by U.S. persons to U.S. persons or their employees 
traveling or temporarily assigned abroad, eligible tools of trade may 
also include, but are not limited to, technology as is necessary to 
commission or service items, provided that all items to be commissioned 
or serviced either are of foreign origin and not subject to the EAR, or, 
if subject to the EAR, have been lawfully exported or reexported. 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.
    (B) Sudan. Exports or reexports of tools of trade may be made to 
Sudan as authorized by this paragraph.
    (1) Permissible users of this provision. A non-governmental 
organization or an individual staff member, employee or contractor of 
such organization traveling to Sudan at the direction or with the 
knowledge of such organization may export or reexport under this 
paragraph.
    (2) Authorized purposes. Any tools of trade exported or reexported 
under this paragraph must be used to support activities to implement the 
Darfur Peace Agreement or the Comprehensive Peace Agreement, to provide 
humanitarian or development assistance in Sudan to support activities to 
relieve human suffering in Sudan by an organization registered by the 
Department of the Treasury, Office of Foreign Assets Control (OFAC) 
pursuant to 31 CFR 538.521, to support the actions in Sudan for 
humanitarian or development purposes by an organization authorized by 
OFAC to take such actions that would otherwise would be prohibited by 
the Sudanese Sanctions Regulations (31 CFR part 538), or to support the 
activities to relieve human suffering in Sudan in areas that are exempt 
from the Sudanese Sanctions Regulations by virtue of the Darfur Peace 
and Accountability Act and Executive Order 13412.
    (3) Method of export and maintenance of control. The tools of trade 
must accompany (either hand carried or as checked baggage) a traveler 
who is a permissible user of this provision or be shipped or transmitted 
to an eligible

[[Page 270]]

user of this provision by a method reasonably calculated to assure 
delivery to the permissible user of this provision. The permissible user 
of this provision must maintain ``effective control'' (SeeSec. 772.1 
of the EAR) of the tools of trade while in Sudan.
    (4) The only tools of trade that may be exported to Sudan under this 
paragraph (a)(2)(i)(B) are:
    (i) Commodities controlled under ECCNs 4A994.b (not exceeding an 
adjusted peak performance of 0.008 weighted teraFLOPS), 4A994.d, 4A994.e 
(other than industrial controllers for chemical processing), 4A994.g and 
4A994.h and ``software'' controlled under ECCNs 4D994 or 5D992 to be 
used on such commodities. Software must be loaded onto such commodities 
prior to export or reexport or be exported or reexported solely for 
servicing or in-kind replacement of legally exported or reexported 
software. All such software must remain loaded on such commodities while 
in Sudan;
    (ii) Telecommunications equipment controlled under ECCN 5A991 and 
``software'' controlled under ECCN 5D992 to be used in the operation of 
such equipment. Software must be loaded onto such equipment prior to 
export or be exported or reexported solely for servicing or in-kind 
replacement of legally exported or reexported software. All such 
software must remain loaded on such equipment while in Sudan;
    (iii) Global positioning systems (GPS) or similar satellite 
receivers controlled under ECCN 7A994; and
    (iv) Parts and components that are controlled under ECCN 5A992, that 
are installed with, or contained in, commodities in paragraphs 
(a)(2)(i)(B)(4) (i) and (ii) of this section and that remain installed 
with or contained in such commodities while in Sudan.
    (C) For purposes of this paragraph (a)(2)(i), 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).
    (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

[[Page 271]]

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 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, Sudan, 
or Syria (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 Export Enforcement, 
Room H4616, 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 (in-country) or reexported from such 
subsidiary, affiliate or facility without prior authorization by BIS.

[[Page 272]]

    (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 item 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 item may be exported under this License Exception 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) Items exported under paragraph (a)(2)(i), tools of trade, of 
this section;
    (3) Commodities exported or reexported as kits consisting of 
replacement parts, consistent with the requirements of paragraph 
(a)(2)(ii) of this section; and
    (4) Commodities and software exported or reexported for exhibition 
and demonstration in accordance with the requirements of paragraph 
(a)(2)(iii) 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 items. (A) Items 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 inSec. 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.
    (B) Exports and reexports of encryption items controlled under ECCN 
5E002 are not permitted pursuant to this paragraph (a).
    (iii) Use or disposition. No item may be exported or reexported 
under this paragraph (a) if:
    (A) An order to acquire the item has been received before shipment;
    (B) The exporter has prior knowledge that the item will stay abroad 
beyond the terms of this License Exception; or
    (C) The item is for lease or rental abroad.
    (iv) Restrictions specific to the export or reexport of technology. 
The authorization for the export or reexport of technology under the 
tools of trade provisions of paragraph (a)(2)(i)(A) is subject to the 
restrictions in this paragraph (a)(3)(iv), as described in paragraphs 
(a)(3)(iv)(A), (a)(3)(iv)(B) and (a)(3)(iv)(C).
    (A) The authorization for the export or reexport of technology under 
the tools of trade provisions of paragraph (a)(2)(i)(A) of this section 
may be used only by U.S. persons, as defined in (a)(2)(i)(C), or their 
employees traveling or on temporary assignment abroad. The restrictions 
under this paragraph (a)(3)(iv)(A) include the following three 
additional restrictions:
    (1) Employees who are not U.S. persons, as defined in (a)(2)(i)(C), 
may be authorized to receive exports or reexports of the technology 
eligible for export or reexport under the tools of trade provisions of 
paragraph (a)(2)(i)(A), only if such employees are already eligible to 
receive such technology through a current license or a license exception 
or on account of NLR status;
    (2) A U.S. employer of individuals who are not U.S. persons, as 
defined in (a)(2)(i)(C), must demonstrate and document for recordkeeping 
purposes the reason that the technology to be authorized for export or 
reexport under

[[Page 273]]

the tools of trade provisions of paragraph (a)(2)(i)(A) is needed by 
such employees in their temporary business activities abroad on behalf 
of the U.S. person employer, prior to using the tools of trade 
provisions of paragraph (a)(2)(i)(A) of this section. This documentation 
must be created and maintained in accordance with the recordkeeping 
requirements of part 762 of the EAR; and
    (3) The U.S. person must retain supervision over the technology that 
has been authorized for export or reexport under these or other 
provisions.
    (B) The exporting or reexporting party and the recipient of the 
technology must take security precautions to protect against 
unauthorized release of the technology while the technology is being 
shipped or transmitted and used overseas. Examples of security 
precautions to help prevent unauthorized access include the following:
    (1) Use of secure connections, such as Virtual Private Network 
connections, when accessing IT networks for e-mail and other business 
activities that involve the transmission and use of the technology 
authorized under this license exception;
    (2) Use of password systems on electronic devices that will store 
the technology authorized under this license exception; and
    (3) Use of personal firewalls on electronic devices that will store 
the technology authorized under this license exception.
    (C) Technology authorized under these provisions may not be used for 
foreign production purposes or for technical assistance unless 
authorized by BIS.
    (4) Return or disposal of items. All items 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 or 
reexport, to the United States or other country from which the items 
were so exported or reexported, 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 items abroad, except as 
permitted by this or other applicable provision of the EAR, the exporter 
or reexporter must request authorization by submitting a license 
application to BIS in accordance with Sec.Sec. 748.1, 748.4 and 748.6 
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 items 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 items covered by the provisions of this paragraph (a), 
provided that the outstanding license authorizes direct shipment of the 
same items to the same new ultimate consignee in the new country of 
destination.
    (iii) Authorization to retain item abroad beyond one year. If the 
exporter wishes to retain an item abroad beyond the 12 months authorized 
by paragraph (a) of this section, the exporter must request 
authorization by submitting a license application in accordance with 
Sec.Sec. 748.1, 748.4 and 748.6 of the EAR to BIS 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 items 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 items that have been abroad more than 12 months, 
nor will a second six month extension be authorized. Any request for 
retaining the items 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. (i) Commodities and software lawfully exported from 
the United States may be reexported to a

[[Page 274]]

new country or countries of destination other than Sudan or Country 
Group E:2 under provisions of 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.
    (ii) Technology legally exported from the United States may be 
reexported by a U.S. person to U.S. persons and their employees in a new 
country or countries of destination other than Sudan or Country Group 
E:2 under provisions of this paragraph (a)(2)(i)(A) provided its terms 
and conditions are met and the technology is returned to the country 
from which the reexport occurred.
    (b) Exports of items temporarily in the United States: Scope. The 
provisions of this paragraph (b) describe the conditions for exporting 
foreign-origin items temporarily in the United States. The provisions 
include the export of items moving in transit through the United States, 
imported for display at a U.S. exhibition or trade fair, returned 
because unwanted, or returned because refused entry.

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

    (1) Items moving in transit through the United States. Subject to 
the following conditions, the provisions of paragraph (b)(1) of this 
section authorize export of items moving in transit through the United 
States under a Transportation and Exportation (T.& E.) customs entry or 
an Immediate Exportation (I.E.) customs entry made at a U.S. Customs 
Office.
    (i) Items controlled for national security reasons, nuclear 
nonproliferation reasons, chemical and biological weapons reasons or 
missile technology 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, \1\ 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.
---------------------------------------------------------------------------

    \1\ The complete names of these forms are: Commerce Form 7513, 
``Shipper's Export Declaration for Intransit Goods''; Customs Form 7512, 
``Transportation Entry and Manifest of Goods Subject to Customs 
Inspection and Permit''.
---------------------------------------------------------------------------

    (2) Items imported for display at U.S. exhibitions or trade fairs. 
Subject to the following conditions, the provisions of

[[Page 275]]

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
    (C) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 
to part 740) of items controlled for national security reasons, nuclear 
nonproliferation reasons, chemical and biological weapons reasons or 
missile technology reasons, 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.
    (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
    (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 a country in Country 
Group E:1 under the provisions of this paragraph (c). All other beta 
test software is eligible for export or reexport to all destinations, 
except Cuba, Iran, 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 inSec. 
742.15(b) of the EAR (for mass market encryption commodities and 
software with symmetric key length exceeding 64-bits) orSec. 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 no. 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

[[Page 276]]

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).
    (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 of beta test encryption software. For beta test 
encryption software eligible under this license exception you must, by 
the time of export or reexport, submit the information described in 
paragraphs (a) through (e) of Supplement No. 6 to part 742 of the EAR by 
e-mail to BIS at [email protected] and to the ENC Encryption Request 
Coordinator at [email protected].

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

    Editorial Note: For Federal Register citations affectingSec. 
740.9, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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, consultSec. 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. (For exports or reexports to 
the installed base in Libya seeSec. 764.7 of the EAR). 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.

[[Page 277]]

    (3) Exclusions. (i) No replacement parts may be exported to repair a 
commodity exported under a license if that license included a condition 
that any subsequent replacement parts must be exported only under a 
license.
    (ii) No parts may be exported to be held abroad as spare parts or 
equipment for future use. Replacement parts may be exported to replace 
spare parts that were authorized to accompany the export of equipment, 
as those spare parts are utilized in the repair of the equipment. This 
will allow maintenance of the stock of spares at a consistent level as 
parts are used.
    (iii) No parts may be exported to any destination, except the 
countries listed in supplement no. 3 to part 744 of the EAR (Countries 
Not Subject to Certain Nuclear End-Use Restrictions inSec. 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 inSec. 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 inSec. 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) No replacement parts may be exported to countries in Country 
Group E:1 if the commodity to be repaired is concealed object detection 
equipment controlled under ECCN 2A984 or related software controlled 
under ECCN 2D984.
    (vii) 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 inSec. 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 People's Republic of China (PRC). Commodities and software 
legally exported or reexported to a consignee in Country Group D:1 
(except the People's Republic of China (PRC)) (see Supplement No. 1 to 
part 740) that are sent to the

[[Page 278]]

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).
    (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. SeeSec. 764.7 of the EAR for 
exports or reexports to the installed base in Libya.
    (c) Special recordkeeping requirements: ECCNs 2A983, 2A984, 2D983 
and 2D984. (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, 
2A984, 2D983 and 2D984. The following information must be specially 
maintained for each such export or reexport transaction:

[[Page 279]]

    (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 inSec. 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; 70 FR 14390, Mar. 22, 2005; 72 
FR 3725, Jan. 26, 2007; 75 FR 14339, Mar. 25, 2010]



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

    This License Exception authorizes exports and reexports for 
international nuclear safeguards; U.S. government agencies or personnel, 
and agencies of cooperating governments; international inspections under 
the Chemical Weapons Convention; and the International Space Station.
    (a) International safeguards. (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, 5A001.h, 6A001.a.1.b.1 systems or transmitting and receiving 
arrays, designed for object detection and location, having a sound 
pressure level exceeding 210 dB (reference 1 [micro]Pa at 1 m) and 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.3, 6A001.a.2.a.5, 
6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.e, 6A002.a.1.c, 6B008, 8A001.b, 
8A001.d, 8A002.o.3.b; and
    (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 
inSec. 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

[[Page 280]]

(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 [micro]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.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 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) [Reserved]
    (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 equipment or ``technology'' controlled by 9A011, 
9E003.a.1, or 9E003.a.3.a; and
    (H) Controlled by 9D002, specially designed or modified for the 
``production'' of equipment controlled by 9A011.
    (3) No encryption items controlled for EI reasons under ECCNs 5A002, 
5D002, or 5E002 may be exported under the provisions of this paragraph 
(a).
    (4) Restrictions. 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 
such computers by aggregation of processors so that the APP of the 
aggregation exceeds the APP 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.
    (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. SeeSec. 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

[[Page 281]]

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. SeeSec. 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 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) [Reserved]
    (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 transfer 
of U.S. goods and services.
    (4) Restrictions. 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 
such computers by aggregation of processors so that the APP of the 
aggregation exceeds the APP parameter set forth in ECCN 4A003.b. of the 
Commerce Control List in Supplement No. 1 to part 774 of the

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EAR, without prior authorization from the Bureau of Industry and 
Security.
    (d) International Space Station (ISS)--(1) Scope. This paragraph (d) 
authorizes exports and reexports required on short notice of certain 
commodities subject to the EAR that are classified under ECCN 9A004 to 
launch sites for supply missions to the International Space Station 
(ISS). The ISS is a research facility in a low-Earth orbit approximately 
190 miles (350 km) above the surface of the Earth. The ISS is a joint 
project among the space agencies of the United States, Russia, Japan, 
Canada, Europe and Italy.
    (2) Eligible commodities. Any commodity subject to the EAR that is 
classified under ECCN 9A004 and that is required for use on the ISS on 
short notice.

    Note 1 to paragraph (d)(2): This license exception is not available 
for the export or reexport of parts and components to overseas 
manufacturers for the purpose of incorporation into other items destined 
for the ISS.
    Note 2 to paragraph (d)(2): For purposes of this paragraph (d), 
`short notice' means the exporter is required to have a commodity 
manifested and at the scheduled launch site for hatch-closure (final 
stowage) no more than forty-five (45) days from the time the exporter or 
reexporter received complete documentation. `Complete documentation' 
means the exporter or reexporter received the technical description of 
the commodity and purpose for use of the commodity on the ISS. For 
purposes of this paragraph (d), 'hatch-closure (final stowage)' means 
the final date specified by a launch provider by which items must be at 
a specified location in a launch country in order to be included on a 
mission to the ISS. The exporter or reexporter must receive the 
notification to supply the commodity for use on the ISS in writing. That 
notification must be kept in accordance with paragraph (d)(6) of this 
section and the Recordkeeping requirements in part 762 of the EAR.

    (3) Eligible destinations. Eligible destinations are France, Japan, 
Kazakhstan, and Russia. To be eligible, a destination needs to have a 
launch for a supply mission to the ISS scheduled by a country 
participating in the ISS.
    (i) Authorization to retain commodity at or near launch site for up 
to six months. If there are unexpected delays in a launch schedule for 
reasons such as mechanical failures in a launch vehicle or weather, 
commodities exported or reexported under the provisions of this 
paragraph (d) are authorized to be retained at or near the launch site 
for a period of six (6) months from the time of initial export or 
reexport before the commodities must be destroyed, returned to the 
exporter or reexporter, or be the subject of an individually validated 
license request submitted to BIS to authorize further disposition of the 
commodities.
    (ii) Authorization to retain commodity abroad at launch country 
beyond six months. If, after the commodity is exported or reexported 
under this authorization, a delay occurs in the launch schedule that 
would exceed the 6-month deadline in paragraph (d)(3)(i) of this 
section, the exporter or reexporter or the person in control of the 
commodities in the launch country may request a one-time 6-month 
extension by submitting written notification to BIS requesting a 6-month 
extension and noting the reason for the delay. If the requestor is not 
contacted by BIS within 30 days from the date of the postmark of the 
written notification and if the notification meets the requirements of 
this subparagraph, the request is deemed granted. 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 or reexporter, the name and 
address of the person who has control of the commodity, the date the 
commodities were exported or reexported, a brief product description, 
and the justification for the extension. To retain a commodity abroad 
beyond the time authorized by paragraph (d)(3)(i) of this section, the 
exporter, reexporter or person in control of the commodity must request 
authorization by submitting a license application in accordance with 
Sec.Sec. 748.1, 748.4 and 748.6 of the EAR to BIS 90 days prior to the 
expiration of the 6-month extension period.
    (iii) Items not delivered to the ISS because of a failed launch. If 
the commodities exported or reexported under this paragraph (d) of this 
section are not delivered to the ISS because a failed launch causes the 
destruction of the commodity prior to its being delivered, exporters and 
reexporters must make

[[Page 283]]

note of the destruction of the commodities in accordance with the 
recordkeeping requirements under paragraph (d)(6)(ii) of this section 
and part 762 of the EAR.
    (4) Requirement for commodities to be launched on an eligible space 
launch vehicle (SLV). Only commodities that will be delivered to the ISS 
using United States, Russian, ESA (French), or Japanese space launch 
vehicles (SLVs) are eligible under this authorization. Commodities to be 
delivered to the ISS using SLVs from any other countries are excluded 
from this authorization.
    (5) Eligible recipients. Only persons involved in the launch of 
commodities to the ISS may receive and have access to commodities 
exported or reexported pursuant to this paragraph (d), except that:
    (i) No commodities authorized under paragraph (d) of this section 
may be exported, reexported or transferred (in-country) to any national 
of an E:1 country listed in Supplement No. 1 to part 740 of the EAR, and
    (ii) No person may receive commodities authorized under paragraph 
(d) of this section if they are subject to an end-user or end-use 
control described in part 744 of the EAR, including the entity list in 
Supplement No. 4 to part 744.
    (6) Recordkeeping requirements. Exporters and reexporters must 
maintain records regarding exports or reexports made using the 
authorization in paragraph (d) of this section as well as any other 
applicable recordkeeping requirements under part 762 of the EAR.
    (i) Exporters and reexporters must retain a record of the initial 
written notification they received requesting these commodities be 
supplied on short notice for a supply mission to the ISS, including the 
date the exporter or reexporter received complete documentation (i.e., 
the day on which the 45-day clock begins under paragraph (d) of this 
section). `Complete documentation' means the exporter or reexporter 
received the technical description of the commodity and purpose for use 
of the commodity on the ISS.
    (ii) Exporters and reexporters must maintain records of the date of 
any exports or reexports made using the authorization in paragraph (d) 
of this section and the date on which the commodities were launched into 
space for delivery to the ISS. If the commodities exported or reexported 
under paragraph (d) of this section are not delivered to the ISS because 
of a failed launch whereby the item is destroyed prior to being 
delivered to the ISS, this must be noted for recordkeeping purposes.
    (iii) The return or destruction of defective or worn out parts or 
components exported pursuant to paragraph (d) of License Exception GOV 
is not required under this authorization. However, if defective or worn 
out parts or components originally exported or reexported pursuant to 
this paragraph (d) are returned from the ISS, then those parts and 
components may be either: returned to the original country of export or 
reexport; destroyed; or reexported or transferred (in-country) to a 
destination that has been designated by NASA for conducting a review and 
analysis of the defective or worn part or component. Documentation for 
this activity must be kept for recordkeeping purposes. No commodities 
that are subject to the EAR may be returned to a country listed in 
Country Group E:1 in Supplement No. 1 to part 740 or to any person if 
that person is subject to an end-user or end-use control described in 
part 744 of the EAR under the provisions of this paragraph (d)(6)(iii) 
of this section or any other provision of this paragraph (d) of this 
section. For purposes of paragraph (d) of this section, a `defective or 
worn out' part or component is a part or component that no longer 
performs its intended function.
    (7) Reexports to an alternate launch country. If a mechanical or 
weather related issue causes a change from the scheduled launch country 
to another foreign country after a commodity was exported or reexported 
under this paragraph (d), then that commodity may be subsequently 
reexported to the new scheduled launch country, provided all of the 
terms and conditions of paragraph (d) of this section are met, along 
with any other applicable EAR provisions. In such instances, the 6-month 
time limitation described in paragraph (d)(3)(i) of this section would 
start over

[[Page 284]]

again at the time of the subsequent reexport transaction. Note that if 
the subsequent reexport may be made under the designation No License 
Required (NLR) or some other authorization under the EAR, a reexporter 
does not need to rely on the provisions contained in this paragraph (d).

  Supplement No. 1 toSec. 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, 5A001.h, 6A001.a.1.b.1 
object detection and location systems, having a sound pressure level 
exceeding 210 dB (reference 1 [micro]Pa at 1 m) and 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.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 
6A001.a.2.e, 6A002.a.1.c,6B008, 8A001.b, 8A001.d, 8A002.o.3.b; and
    (i) ``Composite'' structures or laminates controlled by 1A002.a, 
consisting of an organic ``matrix'' and materials controlled by 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) [Reserved]
    (B) Controlled by 5D001.a, specially designed for the 
``development'' or ``production'' of equipment, functions or features 
controlled by 5A001.b.5 and 5A001.h; and
    (C) Controlled by 6D001 for items controlled by 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;
    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of equipment or ``technology'' controlled by 9A011, 
9E003.a.1, or 9E003.a.3.a; and
    (H) Controlled by 9D002,specially designed or modified for the 
``production'' of equipment controlled by 9A011;
    (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) [Reserved]
    (C) Controlled by 5E001.a for the ``development'' or ``production'' 
of digitally controlled radio receivers controlled by 5A001.b.5 and 
radio frequency (RF) transmitting equipment controlled by 5A001.h; or 
5D001.a for ``software'' specially designed for the ``development'' or 
``production'' of digitally controlled radio receivers controlled by 
5A001.b.5 and radio frequency (RF) transmitting equipment controlled by 
5A001.h; 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.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.c, 
6A001.a.2.e, 6A001.a.2.f, 6A002.a.1.c, 6B008, 6D001 (specially designed 
for the ``production'' or ``development'' of equipment in 6B008), or 
6D003.a 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.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.c, 
6A001.a.2.e, 6A001.a.2.f, 6A002.a.1.c, 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 the ``development'' of equipment or 
``software'' in 9A011, 9D001 for the ``development'' of 9A011, or 9D002 
for the ``production'' of 9A011; and
    (H) Controlled by 9E002 for the ``production'' of equipment in 
9A011; and
    (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) 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

[[Page 285]]

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, 5A001.h, 6A001.a.1.b.1 
object detection and location systems having a sound pressure level 
exceeding 210 dB (reference 1 [micro]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.3, 6A001.a.2.a.5, 
6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.e, 6A002.a.1.c, 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) [Reserved]
    (B) Controlled by 5D001.a, specially designed for the 
``development'' or ``production'' of equipment, functions or features 
controlled by 5A001.b.5 and 5A001.h; and
    (C) Controlled by 6D001 for items controlled by 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;
    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of equipment or ``technology'' controlled by 9A011, 
9E003.a.1, or 9E003.a.3.a; and
    (H) Controlled by 9D002, specially designed or modified for the 
``production'' of equipment controlled by 9A011;
    (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) [Reserved]
    (C) Controlled by 5E001.a for the ``development'' or ``production'' 
of digitally controlled radio receivers controlled by 5A001.b.5 and 
radio frequency (RF) transmitting equipment controlled by 5A001.h; or 
5D001.a for ``software'' specially designed for the ``development'' or 
``production'' of digitally controlled radio receivers controlled by 
5A001.b.5 and radio frequency (RF) transmitting equipment controlled by 
5A001.h; 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.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.c, 
6A001.a.2.e, 6A001.a.2.f, 6A002.a.1.c, 6B008, 6D001 (specially designed 
for the ``production'' or ``development'' of equipment in 6B008), or 
6D003.a 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.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.c, 
6A001.a.2.e, 6A001.a.2.f, 6A002.a.1.c, 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) Controlled by 9E002 for the production of 9A011; and
    (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) 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.]

    Editorial Note: For Federal Register citations affectingSec. 
740.11, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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

[[Page 286]]

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.'' \2\
---------------------------------------------------------------------------

    \2\ Many foreign countries permit the entry, duty-free, of gift 
parcels that conform to regulations regarding contents and marking. To 
secure this advantage, the sender should show the words ``U.S.A. Gift 
Parcel'' on the addressee side of the package and on any required 
customs declarations. Information regarding the foreign postal 
regulations is available at local post offices. Senders of gift parcels 
who wish information regarding import duties of a foreign country should 
contact the nearest Commercial Office, Consulate or Embassy of the 
country concerned.

    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 inSec. 736.2(b) of 
the EAR, must be licensed by BIS. (SeeSec. 748.8(d) and Supplement No. 
2 to Part 748 paragraph (d) of the EAR for licensing of multiple gift 
parcels).

    (2) Commodity, value and other limitations--(i) Item limitations--
(A) Prohibited items. (1) For Cuba no items listed on the Commerce 
Control List other than items listed inSec. 740.19(b) of the EAR may 
be included in a gift parcel.
    (2) For all destinations, no items controlled for chemical and 
biological weapons (CB), missile technology (MT), national security 
(NS), nuclear proliferation (NP) or encryption items (EI) reasons on the 
Commerce Control List (Supplement no. 1 to part 774 of the EAR) may be 
included in a gift parcel.
    (3) Items prohibited for destinations in Country Group D:1 or E:2. 
For destinations in Country Group D:1 or E:2, military wearing apparel 
may not be included in a gift parcel regardless of whether all 
distinctive U.S. military insignia, buttons, and other markings are 
removed.
    (4) Gold bullion, gold taels, and gold bars are prohibited as are 
items intended for resale or reexport.
    (B) Eligible items. For all destinations, eligible items are food 
(including vitamins); medicines, medical supplies and devices (including 
hospital supplies and equipment and equipment for the handicapped); 
receive-only radio equipment for reception of commercial/civil AM/FM and 
short wave publicly available frequency bands, and batteries for such 
equipment; clothing; personal hygiene items; seeds; veterinary medicines 
and supplies; fishing equipment and supplies; soap-making equipment; as 
well as all other items of a type normally sent as gifts between 
individuals (including items listed inSec. 740.19(b) of the EAR) 
except for those items prohibited in paragraph (a)(2)(i)(A) of this 
section. Items in gift parcels must be in quantities normally given as 
gifts between individuals.
    Example to paragraph (a)(2)(i)(B) 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 qualify for such 
gift parcels because the quantity would exceed that normally given 
between individuals. Similarly, a sewing machine or bicycle within the 
value limit 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.
    (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. (A) 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.
    (B) There is no frequency limit on gift parcels of food to Cuba.
    (C) Parties seeking authorization to exceed the frequency limit due 
to compelling humanitarian concerns (e.g., for certain gifts of 
medicine) should submit a license application in accordance with 
Sec.Sec. 748.1, 748.4 and 748.6 of the EAR to BIS with complete 
justification.
    (iv) Value. The combined total domestic retail value of all 
commodities and software in a single gift parcel may not exceed $800. 
This limit does not apply to food sent in a gift parcel to Cuba.

[[Page 287]]

    (v) Ineligible recipients. (A) No gift parcel may be sent to any of 
the following officials of the Cuban Government: ministers and vice-
ministers; members of the Council of State; members of the Council of 
Ministers; members and employees of the National Assembly of People's 
Power; members of any provincial assembly; local sector chiefs of the 
Committees for the Defense of the Revolution; Director Generals and sub-
Director Generals and higher of all Cuban ministries and state agencies; 
employees of the Ministry of the Interior (MININT); employees of the 
Ministry of Defense (MINFAR); secretaries and first secretaries of the 
Confederation of Labor of Cuba (CTC) and its component unions; chief 
editors, editors and deputy editors of Cuban state-run media 
organizations and programs, including newspapers, television, and radio; 
or members and employees of the Supreme Court (Tribuno Supremo 
Nacional).
    (B) No gift parcel may be sent to any of the following officials or 
members of the Cuban Communist Party: members of the Politburo; the 
Central Committee; Department Heads of the Central Committee; employees 
of the Central Committee; and the secretaries and first secretaries of 
provincial Party central committees.
    (C) No gift parcel may be sent to organizations administered or 
controlled by the Cuban Government or the Cuban Communist Party.
    (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 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 bySec. 746.2(b)(1) 
of the EAR.

[[Page 288]]

    (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; 69 FR 5690, Feb. 6, 2004; 69 FR 34566, June 
22, 2004; 72 FR 3945, Jan. 29, 2007; 72 FR 43531, Aug. 6, 2007; 73 FR 
35, Jan. 2, 2008; 73 FR 33673, June 13, 2008; 73 FR 49328, Aug. 21, 
2008; 74 FR 45988, Sept. 3, 2009]



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 underSec. 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 commodities or software 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 commodity or software. Individual 
entries in the software and technology subcategories of the CCL may 
further restrict the export or reexport of operation technology.
    (2) Provisions and destinations--(i) Provisions. Operation software 
may be exported or reexported provided that both of the following 
conditions are met:
    (A) The operation software is the minimum necessary to operate 
equipment authorized for export or reexport; and
    (B) The operation software is in object code.
    (ii) Destinations. Operation software and technology may be exported 
or reexported to any destination to which the equipment for which it is 
required has been or is being legally exported or reexported.
    (b) Sales technology--(1) Scope. The provisions of paragraph (b) 
authorize exports and reexports of sales technology. ``Sales 
technology'' is data supporting a prospective or actual quotation, bid, 
or offer to sell, lease, or otherwise supply any item.
    (2) Provisions and destinations--(i) Provisions. Sales technology 
may be exported or reexported provided that:
    (A) The technology is a type customarily transmitted with a 
prospective or actual quotation, bid, or offer in accordance with 
established business practice; and
    (B) Neither the export nor the reexport will disclose the detailed 
design, production, or manufacture technology, or the means of 
reconstruction, of either the quoted item or its product. The purpose of 
this limitation is to prevent disclosure of technology so detailed that 
the consignee could reduce the technology to production.
    (ii) Destinations. Sales technology may be exported or reexported to 
any destination.

    Note: Neither this section nor its use means that the U.S. 
Government intends, or

[[Page 289]]

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). \3\
---------------------------------------------------------------------------

    \3\ 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 toSec. 
742.15(b) of the EAR, it is controlled under ECCN 5D992.c and is thus 
outside the scope of License Exception TSU.) SeeSec. 742.15(b) of the 
EAR for exports and reexports of mass market encryption products 
controlled under ECCN 5D992.c.
    (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) Publicly available encryption source code. (1) Scope and 
eligibility. Subject to the notification requirements of paragraph 
(e)(3) of this section, this paragraph (e) authorizes exports and 
reexports of publicly available encryption source code classified under 
ECCN 5D002 that is subject to the EAR (seeSec. 734.3(b)(3) of the 
EAR). Such source code is eligible for License Exception TSU under this 
paragraph (e) 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.
    (2) Restrictions. This paragraph (e) does not authorize:
    (i) Export or reexport of any encryption software classified under 
ECCN 5D002 that does not meet the requirements of paragraph (e)(1), even 
if the software incorporates or is specially designed to use other 
encryption software that meets the requirements of paragraph (e)(1) of 
this section; or
    (ii) Any knowing export or reexport to a country listed in Country 
Group E:1 in Supplement No. 1 to part 740 of the EAR.
    (3) Notification requirement. You must notify BIS and the ENC 
Encryption Request Coordinator via e-mail of the Internet location 
(e.g., URL or Internet address) of the publicly available encryption 
source code or provide each

[[Page 290]]

of them a copy of the publicly available encryption source code. If you 
update or modify the source code, you must also provide additional 
copies to each of them each time the cryptographic functionality of the 
source code is updated or modified. In addition, if you posted the 
source code on the Internet, you must notify BIS and the ENC Encryption 
Request Coordinator each time the Internet location is changed, but you 
are not required to notify them of updates or modifications made to the 
encryption source code at the previously notified location. In all 
instances, submit the notification or copy to [email protected] and to 
[email protected].

    Note to paragraph (e): Posting encryption source code on the 
Internet (e.g., FTP or World Wide Web site) where it may be downloaded 
by anyone neither establishes ``knowledge'' of a prohibited export or 
reexport for purposes of this paragraph, nor triggers any ``red flags'' 
imposing a duty to inquire under the ``Know Your Customer'' guidance 
provided in Supplement No. 3 to part 732 of the EAR. Publicly available 
encryption object code software classified under ECCN 5D002 is not 
subject to the EAR when the corresponding source code meets the criteria 
specified in this paragraph (e), seeSec. 734.3(b)(3) of the EAR.

    (f) Special recordkeeping requirements: ECCNs 2D983, 2D984, 2E983 
and 2E984. 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, 2D984, 2E983, and 2E984, 
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 inSec. 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, 2D984, 2E983, and 2E984:
    (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. Redesignated at 61 FR 68579, Dec. 30, 1996]

    Editorial Note: For Federal Register citations affectingSec. 
740.13, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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, 
software and technology described in this section.
    (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 who are U.S. persons, as defined in paragraph 
(b)(4)(i), may export or reexport technology as a tool of trade under 
paragraph (b)(4) for their personal use or for the personal use of 
members of their immediate families who are traveling or moving with 
them, provided they are also U.S. persons, as defined in paragraph 
(b)(4)(i), to any destination or series of destinations. Technology 
exports and reexports authorized under paragraph (b)(4) of this section 
may be made as actual shipments, transmissions, or releases. 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

[[Page 291]]

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 and also 
technology for use in the trade, occupation, employment, vocation, or 
hobby of the traveler or members of the household who are traveling or 
moving. For special provisions regarding encryption commodities and 
software subject to EI controls, see paragraph (f) of this section. For 
a special provision that specifies restrictions regarding the export or 
reexport of technology under this paragraph, see paragraph (g).
    (i) For purposes of this paragraph (b), 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).
    (ii) [Reserved]
    (c) Limits on eligibility. The export of any item is limited or 
prohibited, if the kind or quantity is in excess of the limits described 
in this section. In addition, the items 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 be exported permanently under 
this License Exception. All shotguns and unused shotgun shells must be 
returned

[[Page 292]]

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 the Department of Justice Regulations (27 CFR 478.115(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.
    (g) Special provision: restrictions for Export or Reexport of 
Technology. This authorization for the export or reexport of technology 
under the tools of trade provisions of paragraph (b)(4) of this section 
may be used only if:
    (1) The technology is to be used overseas solely by individuals or 
members of their immediate families traveling with them provided they 
are U.S. persons as defined in paragraph (b)(4)(i).
    (2) The exporting or reexporting party and the recipient take 
adequate security precautions to protect against unauthorized access to 
the technology while the technology is being transmitted and used 
overseas. Examples of security precautions to help prevent unauthorized 
access include the following:
    (i) Use of secure connections, such as Virtual Private Network 
connections when accessing IT networks for e-mail and other business 
activities that involve the transmission and use of the technology 
authorized under this license exception;
    (ii) Use of password systems on electronic devices that will store 
the technology authorized under this license exception; and
    (iii) Use of personal firewalls on electronic devices that will 
store the technology authorized under this license exception.
    (3) The technology authorized under these provisions may not be used 
for foreign production purposes or for technical assistance unless 
authorized by BIS;
    (4) Any encryption item controlled under ECCN 5E002 is not exported 
or reexported to any destination listed 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; 69 FR 34567, June 22, 2004; 71 FR 30284, May 
26, 2006; 72 FR 3945, Jan. 29, 2007; 72 FR 70512, Dec. 12, 2007; 74 FR 
45989, Sept. 8, 2009]



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

[[Page 293]]

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 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.

[[Page 294]]

    (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, 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 (seeSec. 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), (see Supplement No. 1 to part 740) 
provided that such commodities are all of the following: \4\
---------------------------------------------------------------------------

    \4\ Where a license is required, see Sec.Sec. 748.1, 748.4 and 
748.6 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 \5\ 
installation or agent in any foreign destination except Cuba or Country 
Group D:1 (excluding the PRC), (see Supplement No. 1 to part 740) 
provided such commodities are all of the following:
---------------------------------------------------------------------------

    \5\ 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;

[[Page 295]]

    (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 (seeSec. 754.2(h) of the EAR);

    (i) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements;
    (ii) Medical and surgical supplies;
    (iii) Food stores;
    (iv) Slop chest articles;
    (v) Saloon stores or supplies; and
    (vi) Equipment and spare parts.
    (d) Vessels on temporary sojourn. (1) Foreign flagged vessels. A 
foreign flagged vessel in the United States 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 vessel 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 vessel 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) The vessel 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.
    (2) U.S. flagged vessels. A U.S. flagged vessel may depart from the 
United States under its own power for any destination, provided that:
    (i) The vessel does not depart for the purpose of sale, lease, or 
transfer of operational control of the vessel, or its equipment, parts, 
accessories, or components, to a foreign country or any national 
thereof;
    (ii) The vessel's U.S. flag will not be changed while abroad;
    (iii) The vessel will not be used in any foreign military activity 
while abroad;
    (iv) The vessel will not carry from the United States any item for 
which a license is required and has not been granted by the U.S. 
Government;
    (v) Spares for the vessel are not located in a destination in 
Country Group E:1 (see Supplement No. 1 to this part);
    (vi) Technology is not 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 servicing required 
to depart and enter a port safely; and
    (vii) The vessel 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).
    (3) Criteria for temporary sojourn of vessels. The following 
criteria must be met if a voyage is to be considered a temporary sojourn 
under this paragraph (d). To be considered a temporary sojourn, the 
voyage must not be for the purpose of sale or transfer of operational 
control. A transfer of operational control occurs unless the exporter or 
reexporter retains each of the following indicia of control:
    (i) Hiring of crew. Right to hire and fire the crew.
    (ii) Dispatch of vessel. Right to dispatch the vessel.
    (iii) Selection of routes. Right to determine the vessel's routes 
(except for contractual commitments entered into

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by the exporter for specifically designated routes).
    (iv) Place of maintenance. Right to perform or obtain the principal 
maintenance on the vessel, 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).
    (4) Reexports. Vessels subject to the EAR may be reexported under 
this section on temporary sojourn, provided that:
    (i) The vessel does not depart for the purpose of sale, lease, or 
transfer of operational control of the vessel, or its equipment, parts, 
accessories, or components, to a foreign country or any national 
thereof;
    (ii) The vessel's flag will not be changed while abroad;
    (iii) The vessel will not be used in any foreign military activity 
while abroad;
    (iv) The vessel will not carry any item for which a license is 
required and has not been granted by the U.S. Government;
    (v) Spares for the vessel are not located in a destination in 
Country Group E:1 (see Supplement No. 1 to this part);
    (vi) Technology is not 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 servicing required 
to depart and enter a port safely; and
    (vii) The vessel 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).
    (5) No vessels may be exported or reexported under this License 
Exception to a country in Country Group E:1.

[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, and 
amended at 65 FR 38150, June 19, 2000; 66 FR 42110, Aug. 10, 2001; 68 FR 
50472, Aug. 21, 2003; 69 FR 23628, Apr. 29, 2004; 70 FR 14390, Mar. 22, 
2005; 70 FR 67348, Nov. 7, 2005; 71 FR 51717, Aug. 31, 2006; 73 FR 35, 
Jan. 2, 2008; 73 FR 49328, Aug. 21, 2008]



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 are not military commodities described in ECCN 
0A919 or cameras described in ECCN 6A003.b.3 (having the characteristics 
listed in 6A002.a.2.a or a.2.b), 6A003.b.4.b, 6A003.b.4.c, or components 
described in 6A002.a.2.a, a.2.b, a.2.c, a.3.b.2.b, or a.3.g; 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; 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 North Korea and the commodity 
being reexported is controlled for national security reasons.
    (b) Reexports to and among specified countries. (1) Commodities that 
are not controlled for nuclear nonproliferation or missile technology 
reasons and that are not listed in paragraph (b)(2) or (b)(3) of this 
section may be reexported 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.
    (2) Except as provided in paragraph (b)(3) of this section, cameras 
described in ECCN 6A003.b.3 (having the characteristics listed in 
6A002.a.2.a or a.2.b), 6A003.b.4.b, 6A003.b.4.c, or components described 
in 6A002.a.2.a, a.2.b, a.2.c, a.3.b.2.b, or a.3.g, and ``military 
commodities'' described in ECCN 0A919

[[Page 297]]

may not be exported under this paragraph (b).
    (3) Cameras described in ECCN 6A003.b.3 (having the characteristics 
listed in 6A002.a.2.a or a.2.b), 6A003.b.4.b, or 6A003.b.4.c may be 
exported or reexported to and among: Albania, Australia, Austria, 
Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, 
Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, 
Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, New 
Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South 
Africa, South Korea, Spain, Sweden, Switzerland, Turkey, and the United 
Kingdom if:
    (i) Such cameras are fully packaged for use as consumer ready civil 
products; or,
    (ii) Such cameras with not more than 111,000 elements are to be 
embedded in civil products.
    (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) [Reserved]
    (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 inSec. 734.4 of the EAR.
    (i) Reexports to Sudan of items controlled by 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 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 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; 72 FR 43531, Aug. 6, 
2007; 74 FR 23945, May 22, 2009; 74 FR 68145, Dec. 23, 2009; 76 FR 
70339, Nov. 14, 2011; 77 FR 39367, July 2, 2012]



Sec.  740.17  Encryption commodities, software and technology (ENC).

    License Exception ENC authorizes export and reexport of systems, 
equipment, commodities and components therefor that are classified under 
ECCNs 5A002.a.1, .a.2, .a.5, .a.6, .a.9, or .b, systems, equipment and 
components therefor classified under ECCN 5B002, and equivalent or 
related software and technology classified under ECCNs 5D002 or 5E002. 
This License Exception ENC does not authorize export or reexport to, or 
provision of any service in any country listed in Country Group E:1 in 
Supplement No. 1 to part 740 of the EAR, or release of source code or

[[Page 298]]

technology to any national of a country listed in Country Group E:1. 
Reexports and transfers under License Exception ENC are subject to the 
criteria set forth in paragraph (c) of this section. Paragraphs (b) and 
(d) of this section set forth information about encryption registrations 
and classifications required by this section. Paragraph (e) sets forth 
reporting required by this section. For items exported under paragraphs 
(b)(1), (b)(3)(i), (b)(3)(ii) or (b)(3)(iv) of this section and 
therefore excluded from paragraph (e) reporting requirements, exporters 
are reminded of the recordkeeping requirements in part 762 of the EAR 
and that they may be required to make such records available upon 
request. All classification requests, registrations, and reports 
submitted to BIS pursuant to this section for encryption items will be 
reviewed by the ENC Encryption Request Coordinator, Ft. Meade, MD.
    (a) No classification request, registration or reporting required.
    (1) Internal ``development'' or ``production'' of new products. 
License Exception ENC authorizes exports and reexports of items 
described in paragraph (a)(1)(i) of this section, to end-users described 
in paragraph (a)(1)(ii) of this section, for the intended end-use 
described in paragraph (a)(1)(iii) of this section without submission of 
encryption registration, classification request, self-classification 
report or sales report to BIS.
    (i) Eligible items. Eligible items are those classified under ECCNs 
5A002.a.1, .a.2, .a.5, .a.6, .a.9, or .b, ECCN 5B002, and equivalent or 
related software and technology classified under ECCNs 5D002 or 5E002.
    (ii) Eligible End-users. Eligible end-users are ``private sector 
end-users'' wherever located that are headquartered in a country listed 
in Supplement No. 3 of this part.

    Note to paragraph (a)(1)(ii): A ``private sector end-user'' is:
    (1) An individual who is not acting on behalf of any foreign 
government; or
    (2) A commercial firm (including its subsidiary and parent firms, 
and other subsidiaries of the same parent) that is not wholly owned by, 
or otherwise controlled by or acting on behalf of, any foreign 
government.
    (iii) Eligible End-use. The eligible end-use is internal 
``development'' or ``production'' of new products by those end-users.
    Note to paragraph (a)(1)(iii): All items produced or developed with 
items exported or reexported under this paragraph (a)(1) are subject to 
the EAR. These items may require the submission of a classification 
request or encryption registration before sale, reexport or transfer, 
unless otherwise authorized by license or license exception.

    (2) Exports and reexports to ``U.S. Subsidiaries.'' License 
Exception ENC authorizes export and reexport of systems, equipment, 
commodities and components therefor classified under ECCNs 5A002.a.1, 
.a.2, .a.5, .a.6, .a.9, or .b, systems, equipment, and components 
therefor classified under ECCN 5B002, and equivalent or related software 
and technology classified under ECCNs 5D002 or 5E002, to any ``U.S. 
subsidiary,'' wherever located without submission of an encryption 
registration, classification request, self-classification report or 
sales report to BIS. License Exception ENC also authorizes export or 
reexport of such items by a U.S. company and its subsidiaries to foreign 
nationals who are employees, contractors or interns of a U.S. company or 
its subsidiaries if the items are for internal company use, including 
the ``development'' or ``production'' of new products, without prior 
review by the U.S. Government.

    Note to paragraph (a)(2): All items produced or developed with items 
exported or reexported under this paragraph (a)(2) are subject to the 
EAR. These items may require the submission of a classification request 
or encryption registration before sale, reexport or transfer to non-
``U.S. subsidiaries,'' unless otherwise authorized by license or license 
exception.

    (b) Encryption registration required, with classification request or 
self-classification report. Exports and reexports authorized under 
paragraphs (b)(1), (b)(2) and (b)(3) of License Exception ENC require 
submission of an encryption registration in accordance with paragraph 
(d) of this section and the specific instructions of paragraph (r)(1) of 
Supplement No. 2 to part 748 of the EAR. For items self-classified under 
paragraph (b)(1) of this section from June 25, 2010 through August 24, 
2010, and for requests for classification

[[Page 299]]

under paragraphs (b)(2) and (b)(3) of this section submitted from June 
25, 2010 through August 24, 2010, exporters have until August 24, 2010 
to submit their encryption registrations. In addition: for paragraph 
(b)(1) of this section a self-classification report in accordance with 
Sec.  742.15(c) of the EAR is also required from specified exporters and 
reexporters; for paragraphs (b)(2) and (b)(3) of this section, a thirty-
day (30-day) classification request is required in accordance with 
paragraph (d) of this section. See paragraph (f) of this section for 
grandfathering provisions applicable to certain encryption items 
reviewed and classified by BIS under this license exception prior to 
June 25, 2010. Only License Exception ENC authorizations under this 
paragraph (b) to a company that has fulfilled the requirements of 
encryption registration (such as the producer of the item) authorize the 
export and reexport of the company's encryption items by all persons, 
wherever located, under this license exception. When an exporter or 
reexporter relies on the producer's self-classification (pursuant to the 
producer's encryption registration) or CCATS for an encryption item 
eligible for export or reexport under License Exception ENC under 
paragraph (b)(1), (b)(2), or (b)(3) of this section, it is not required 
to submit an encryption registration, classification request or self-
classification report. Exporters are still required to comply with semi-
annual sales reporting requirements under paragraph (e) of this section, 
even if relying on a CCATS issued to a producer for specified encryption 
items described in paragraphs (b)(2) and (b)(3)(iii) of this section.
    (1) Immediate authorization. Once an encryption registration is 
submitted to BIS in accordance with paragraph (d) of this section and an 
Encryption Registration Number (ERN) has been issued, this paragraph 
(b)(1) authorizes the exports or reexports of the associated commodities 
classified under ECCNs 5A002.a.1, .a.2, .a.5, .a.6, .a.9, or .b, or ECCN 
5B002, and equivalent or related software classified under ECCN 5D002, 
except any such commodities, software or components described in (b)(2) 
or (b)(3) of this section, subject to submission of a self-
classification report in accordance withSec. 742.15(c) of the EAR.
    (2) Classification request required. Thirty (30) days after the 
submission of a classification request with BIS in accordance with 
paragraph (d) of this section and subject to the reporting requirements 
in paragraph (e) of this section, this paragraph under License Exception 
ENC authorizes certain exports or reexports of the items submitted for 
classification, as further described in paragraphs (b)(2)(i), (b)(2)(ii) 
and (b)(2)(iv)(B) of this section.

    Note to introductory text of paragraph (b)(2): Immediately after the 
classification request is submitted to BIS in accordance with paragraph 
(d) of this section and subject to the reporting requirements in 
paragraph (e) of this section, this paragraph also authorizes exports or 
reexports of:
    1. All submitted encryption items described in this paragraph 
(b)(2), except ``cryptanalytic items,'' to any end-user located or 
headquartered in a country listed in Supplement No. 3 to this part;
    2. Encryption source code as described in paragraph (b)(2)(i)(B) to 
non-``government end-users'' in any country;
    3. ``Cryptanalytic items'' to non-``government end-users'', only, 
located or headquartered in a country listed in Supplement No. 3 to this 
part; and
    4. Items described in paragraphs (b)(2)(iii) and (b)(2)(iv)(A) of 
this section, to specified destinations and end-users.

    (i) Cryptographic commodities, software and components. The 
following items to non-``government end-users'' located or headquartered 
in a country not listed in Supplement No. 3 to this part:
    (A) Network infrastructure software and commodities and components 
thereof (including commodities and software necessary to activate or 
enable cryptographic functionality in network infrastructure products) 
providing secure Wide Area Network (WAN), Metropolitan Area Network 
(MAN), Virtual Private Network (VPN), satellite, digital packet 
telephony/media (voice, video, data) over Internet protocol, cellular or 
trunked communications meeting any of the following with key lengths 
exceeding 80-bits for symmetric algorithms:
    (1) Aggregate encrypted WAN, MAN, VPN or backhaul throughput 
(including communications through wireless network elements such as 
gateways,

[[Page 300]]

mobile switches, and controllers) greater than 90 Mbps;
    (2) Wire (line), cable or fiber-optic WAN, MAN or VPN single-channel 
input data rate exceeding 154 Mbps;
    (3) Transmission over satellite at data rates exceeding 10 Mbps;
    (4) Media (voice/video/data) encryption or centralized key 
management supporting more than 250 concurrent encrypted data channels, 
or encrypted signaling to more than 1,000 endpoints, for digital packet 
telephony/media (voice/video/data) over Internet protocol 
communications; or
    (5) Air-interface coverage (e.g., through base stations, access 
points to mesh networks, and bridges) exceeding 1,000 meters, where any 
of the following applies:
    (i) Maximum transmission data rates exceeding 10 Mbps (at operating 
ranges beyond 1,000 meters);
    (ii) Maximum number of concurrent full-duplex voice channels 
exceeding 30; or
    (iii) Substantial support is required for installation or use;
    (B) Encryption source code that would not be eligible for export or 
reexport under License Exception TSU because it is not publicly 
available as that term is used inSec. 740.13(e)(1) of the EAR;
    (C) Encryption software, commodities and components therefor, that 
have any of the following:
    (1) Been designed, modified, adapted or customized for ``government 
end-user(s)'';
    (2) Cryptographic functionality that has been modified or customized 
to customer specification; or
    (3) Cryptographic functionality or ``encryption component'' (except 
encryption software that would be considered publicly available, as that 
term is used inSec. 740.13(e)(1) of the EAR) that is user-accessible 
and can be easily changed by the user;
    (D) Encryption commodities and software that provide functions 
necessary for quantum cryptography, as defined in ECCN 5A002 of the 
Commerce Control List;
    (E) Encryption commodities and software that have been modified or 
customized for computers classified under ECCN 4A003;
    (F) Encryption commodities and software that provide penetration 
capabilities that are capable of attacking, denying, disrupting or 
otherwise impairing the use of cyber infrastructure or networks;
    (G) Public safety/first responder radio (e.g., implementing 
Terrestrial Trunked Radio (TETRA) and/or Association of Public-Safety 
Communications Officials International (APCO) Project 25 (P25) 
standards);
    (ii) Cryptanalytic commodities and software. Commodities and 
software classified as ``cryptanalytic items'' to non-``government end-
users'' located or headquartered in countries not listed in Supplement 
No. 3 to this part;
    (iii) ``Open cryptographic interface'' items. Items that provide an 
``open cryptographic interface'', to any end-user located or 
headquartered in a country listed in Supplement No. 3 to this part.
    (iv) Specific encryption technology. Specific encryption technology 
as follows:
    (A) Technology for ``non-standard cryptography.'' Encryption 
technology classified under ECCN 5E002 for ``non-standard 
cryptography,'' to any end-user located or headquartered in a country 
listed in Supplement No. 3 to this part;
    (B) Other technology. Encryption technology classified under ECCN 
5E002 except technology for ``cryptanalytic items,'' ``non-standard 
cryptography'' or any ``open cryptographic interface,'' to any non-
``government end-user'' located in a country not listed in Country Group 
D:1 or E:1 of Supplement No. 1 to part 740 of the EAR.

    Note to paragraph (b)(2): 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.

    (3) Classification request required for specified commodities, 
software and components. Thirty (30) days after a classification request 
is submitted to BIS in accordance with paragraph (d) of this section and 
subject to the reporting requirements in paragraph (e) of this section, 
this paragraph authorizes exports or reexports of the items submitted 
for

[[Page 301]]

classification, as further described in this paragraph (b)(3), to any 
end-user, provided the item does not perform the functions, or otherwise 
meet the specifications, of any item described in paragraph (b)(2) of 
this section.

    Note to introductory text of paragraph (b)(3): Immediately after the 
classification request is submitted to BIS in accordance with paragraph 
(d) of this section and subject to the reporting requirements in 
paragraph (e) of this section, this paragraph also authorizes exports or 
reexports of the items described in this paragraph (b)(3) to any end-
user located or headquartered in a country listed in Supplement No. 3 to 
this part.

    (i) Specified components classified under ECCN 5A002.a.1, .a.5 or 
.a.6 and equivalent or related software classified under ECCN 5D002 not 
described by paragraph (b)(2) of this section, as follows:
    (A) Chips, chipsets, electronic assemblies and field programmable 
logic devices;
    (B) Cryptographic libraries, modules, development kits and toolkits, 
including for operating systems and cryptographic service providers 
(CSPs);
    (C) Application-specific hardware or software development kits 
implementing cryptography.
    (ii) Encryption commodities, software and components not described 
by paragraph (b)(2) of this section, that provide or perform ``non-
standard cryptography'' as defined in part 772 of the EAR.
    (iii) Encryption commodities and software not described by paragraph 
(b)(2) of this section, that provide or perform vulnerability analysis, 
network forensics, or computer forensics functions characterized by any 
of the following:
    (A) Automated network analysis, visualization, or packet inspection 
for profiling network flow, network user or client behavior, or network 
structure/topology and adapting in real-time to the operating 
environment; or
    (B) Investigation of data leakage, network breaches, and other 
malicious intrusion activities through triage of captured digital 
forensic data for law enforcement purposes or in a similarly rigorous 
evidentiary manner.
    (iv) Cryptographic enabling commodities and software. Commodities 
and software and components that activate or enable cryptographic 
functionality in encryption products which would otherwise remain 
disabled, where the product or cryptographic functionality is not 
otherwise described in paragraphs (b)(2) or (b)(3)(i) of this section.
    (4) Exclusions from classification request, encryption registration 
and self-classification reporting requirements. License Exception ENC 
authorizes the export and reexport of the commodities and software 
described in this paragraph (b)(4) without the submission of a 
classification request, encryption registration or self-classification 
report to BIS, except that paragraph (b)(4)(ii) of this section does not 
authorize exports from the United States of foreign products developed 
with or incorporating U.S.-origin encryption source code, components, or 
toolkits.
    (i) Short-range wireless encryption functions. Commodities and 
software that are not otherwise controlled in Category 5, but are 
nonetheless classified under ECCN 5A002, 5B002 or 5D002 only because 
they incorporate components or software that provide short-range 
wireless encryption functions (e.g., with a nominal operating range not 
exceeding 100 meters according to the manufacturer's specifications, 
designed to comply with the Institute of Electrical and Electronic 
Engineers (IEEE) 802.11 wireless LAN standard or the IEEE 802.15.1 
standard).

    Note to paragraph (b)(4)(i): An example of what this paragraph 
authorizes for export without classification, registration or self-
classification reporting is a laptop computer that without encryption 
would be classified under ECCN 4A994, and the Category 5, Part 2-
controlled components of the laptop only implement short-range wireless 
encryption functionality. On the other hand, this paragraph (b)(4)(i) 
does not apply to any commodities or software that would still be 
classified under an ECCN in Category 5 even if the short-range wireless 
encryption functionality were removed. For example, certain access 
points, gateways and bridges are classified under ECCN 5A991 without 
encryption functionality, and components for mobile communication 
equipment are classified under ECCN 5A991.g without encryption 
functionality. Such items, when implementing cryptographic functionality

[[Page 302]]

controlled by Category 5, Part 2 are not excluded from encryption 
classification, registration or self-classification reporting by this 
paragraph.

    (ii) Foreign products developed with or incorporating U.S.-origin 
encryption source code, components, or toolkits. Foreign products 
developed with or incorporating U.S.-origin encryption source code, 
components or toolkits that are subject to the EAR, provided that the 
U.S.-origin encryption items have previously been classified or 
registered and authorized by BIS and the cryptographic functionality has 
not been changed. Such products include foreign-developed products that 
are designed to operate with U.S. products through a cryptographic 
interface.
    (c) Reexport and transfer. 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 the export or reexport meets the applicable terms and 
conditions of this section. Transfers of encryption items listed in 
paragraph (b)(2) 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.
    (d) Encryption registration and classification request procedures--
(1) Submission requirements and instructions. To submit an encryption 
registration or classification request to BIS, you must submit an 
application to BIS in accordance with the procedures described in 
Sec.Sec. 748.1 and 748.3 of the EAR and the instructions in paragraph 
(r) of Supplement No. 2 to part 748 ``Unique Application and Submission 
Requirements,'' along with other required information as follows:
    (i) Encryption registrations in support of encryption classification 
requests and self-classification reports. You must submit the applicable 
information as described in Supplement No. 5 to part 742 of the EAR and 
follow the specific instructions of paragraph (r)(1) of Supplement No. 2 
to part 748 of the EAR, if any of the following apply:
    (A) This is your first time submitting an encryption classification 
request under paragraphs (b)(2) or (b)(3) of this section since August 
24, 2010;
    (B) You are making an encryption item eligible for export and 
reexport (including as defined for encryption software inSec. 
734.2(b)(9) of the EAR) under paragraph (b)(1) of this section for the 
first time since August 24, 2010; or
    (C) If you have not otherwise provided BIS the information described 
in Supplement No. 5 to part 742 during the current calendar year and 
your answers to the questions in Supplement No. 5 to part 742 have 
changed since the last time you provided answers to the questions.
    (ii) Technical information submission requirements. In addition to 
the encryption registration requirements of paragraph (d)(1)(i) of this 
section, for all submissions of encryption classification requests for 
items described under paragraph (b)(2) or (b)(3) of this section, you 
must also provide BIS the applicable information described in paragraphs 
(a) through (d) of Supplement No. 6 to part 742 of the EAR (Technical 
Questionnaire for Encryption Items). For items authorized after 
submission of an encryption registration under paragraph (b)(1) of this 
section, you may be required to provide BIS this Supplement No. 6 to 
part 742 information on an as-needed basis, upon request by BIS.
    (iii) Changes in encryption functionality following a previous 
classification. A new product encryption classification request (under 
paragraphs (b)(2) or (b)(3) of this section) or self-classification 
report (under paragraph (b)(1) of this section) is required if a change 
is made to the cryptographic functionality (e.g., algorithms) or other 
technical characteristics affecting License Exception ENC eligibility 
(e.g., encrypted throughput) of the originally classified product. 
However, a new product classification request or self-classification 
report is not required when a change involves: The subsequent bundling, 
patches, upgrades or releases of a product; name changes; or changes to 
a previously reviewed encryption product where the change is limited to 
updates of encryption software components where the product is otherwise 
unchanged.

[[Page 303]]

    (2) Action by BIS.
    (i) Encryption registrations for paragraph (b) of this section. Upon 
submission to BIS of an encryption registration in accordance with 
paragraph (d)(1) of this section and acceptance of the application by 
SNAP-R, BIS will issue the Encryption Registration Number (ERN) via 
SNAP-R, which will constitute authorization for exports and reexports of 
eligible items under paragraph (b)(1) of this license exception.
    (ii) For items requiring classification by BIS under paragraphs 
(b)(2) and (b)(3) of this section.
    (A) For classifications that require a thirty (30) day waiting 
period, if BIS has not, within thirty-days (30-days) from registration 
in SNAP-R of your complete classification request, informed you that 
your item is not authorized for License Exception ENC, you may export or 
reexport under the applicable provisions of License Exception ENC.
    (B) Upon completion of its classification, BIS will issue a 
Commodity Classification Automated Tracking System (CCATS) to you.
    (C) Hold Without Action (HWA) for classification requests. BIS may 
hold your classification request without action if necessary to obtain 
additional information or for any other reason necessary to ensure an 
accurate classification. Time on such ``hold without action'' status 
shall not be counted towards fulfilling the thirty-day (30-day) 
processing period specified in this paragraph.
    (iii) BIS may require you to supply additional relevant technical 
information about your encryption item(s) or information that pertains 
to their eligibility for License Exception ENC at any time, before or 
after the expiration of the thirty-day (30-day) processing period 
specified in this paragraph and in paragraphs (b)(2) and (b)(3) of this 
section, or after any registrations as required in paragraph (b)(1) of 
this section. If you do not supply such information within 14 days after 
receiving a request for it from BIS, BIS may return your classification 
request(s) without action or otherwise suspend or revoke your 
eligibility to use License Exception ENC for that item(s). At your 
request, BIS may grant you up to an additional 14 days to provide the 
requested information. Any request for such an additional number of days 
must be made prior to the date by which the information was otherwise 
due to be provided to BIS, and may be approved if BIS concludes that 
additional time is necessary.
    (e) Reporting requirements--(1) Semi-annual reporting requirement. 
Semi-annual reporting is required for exports to all destinations other 
than Canada, and for reexports from Canada for items described under 
paragraphs (b)(2) and (b)(3)(iii) of this section. Certain encryption 
items and transactions are excluded from this reporting requirement, see 
paragraph (e)(1)(iii) of this section. For information about what must 
be included in the report and submission requirements, see paragraphs 
(e)(1)(i) and (e)(1)(ii) of this section respectively.
    (i) Information required. Exporters must include for each item, the 
Commodity Classification Automated Tracking System (CCATS) number and 
the name of the item(s) exported (or reexported from Canada), and the 
following information in their reports:
    (A) Distributors or resellers. For items exported (or reexported 
from Canada) 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 or reexported and, if collected by the 
exporter as part of the distribution process, the end-user's name and 
address;
    (B) Direct Sales. For items exported (or reexported from Canada) 
through direct sale, the name and address of the recipient, the item, 
and the quantity exported; or
    (C) Foreign manufacturers and products that use encryption items. 
For exports (i.e., from the United States) or direct transfers (e.g., by 
a ``U.S. subsidiary'' located outside the United States) of encryption 
components, source code, general purpose toolkits, equipment controlled 
under ECCN 5B002, technology, or items that provide an ``open 
cryptographic interface,'' to a foreign developer or manufacturer 
headquartered in a country not listed in Supplement No. 3 to this part 
when

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intended for use in foreign products developed for commercial sale, the 
names and addresses of the manufacturers using these encryption items 
and, if known, 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).
    (ii) Submission requirements. 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. 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] and to the ENC Encryption Request Coordinator at 
[email protected], or disks and CDs containing the reports may be sent to the 
following addresses:
    (A) Department of Commerce, Bureau of Industry and Security, Office 
of National Security and Technology Transfer Controls, 14th Street and 
Pennsylvania Ave., NW., Room 2705, Washington, DC 20230, Attn: 
Encryption Reports, and
    (B) Attn: ENC Encryption Request Coordinator, 9800 Savage Road, 
Suite 6940, Ft. Meade, MD 20755-6000.
    (iii) Exclusions from reporting requirement. Reporting is not 
required for the following items and transactions:
    (A) [Reserved]
    (B) Encryption commodities or software with a symmetric key length 
not exceeding 64 bits;
    (C) Encryption items exported (or reexported from Canada) via free 
and anonymous download;
    (D) Encryption items from or to a U.S. bank, financial institution 
or its subsidiaries, affiliates, customers or contractors for banking or 
financial operations;
    (E) Items listed in paragraph (b)(4) of this section, unless it is a 
foreign item described in paragraph (b)(4)(ii) of this section that has 
entered the United States;
    (F) Foreign products developed by bundling or compiling of source 
code;
    (2) Key length increases. Reporting is required for commodities and 
software that, after having been classified and authorized for License 
Exception ENC in accordance with paragraphs (b)(2) or (b)(3) of this 
section, are modified only to upgrade the key length used for 
confidentiality or key exchange algorithms. Such items may be exported 
or reexported under the previously authorized provision of License 
Exception ENC without a classification resubmission.
    (i) Information required.
    (A) A certification that no change to the encryption functionality 
has been made other than to upgrade the key length for confidentiality 
or key exchange algorithms.
    (B) The original Commodity Classification Automated Tracking System 
(CCATS) authorization number issued by BIS and the date of issuance.
    (C) The new key length.
    (ii) Submission requirements.
    (A) The report must be received by BIS and the ENC Encryption 
Request Coordinator before the export or reexport of the upgraded 
product; and
    (B) The report must be e-mailed to [email protected] and 
[email protected].
    (f) Grandfathering. The following provisions apply to encryption 
items reviewed and classified by BIS under this license exception prior 
to June 25, 2010:
    (1) Items described in paragraphs (b)(1) or (b)(3) of this section. 
For encryption commodities, software and components described in (or 
otherwise meeting the specifications of) paragraphs (b)(1) or (b)(3) of 
this section effective June 25, 2010, such items reviewed and classified 
by BIS prior to June 25, 2010 are authorized for export and reexport to 
eligible end-users and destinations under the applicable paragraph 
(b)(1) or (b)(3) of this license exception using the CCATS previously 
issued by BIS, without any encryption registration (i.e.,

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the information described in Supplement No. 5 to part 742 of the EAR), 
new classification by BIS, self-classification reporting (i.e., the 
information described in Supplement No. 8 to part 742 of the EAR), or 
semi-annual sales reporting required under section 740.17(e) provided 
the cryptographic functionality of the item has not changed. See 
paragraph (d)(1)(iii) of this section regarding changes in encryption 
functionality following a previous classification.
    (2) Items described in paragraph (b)(2) of this section.
    (i) Commodities, software and components described in paragraph 
(b)(2)(i) of this section. For encryption commodities, software and 
components described in (or otherwise meeting the specifications of) 
paragraph (b)(2)(i) of this section effective June 25, 2010, such items 
reviewed and classified by BIS prior to June 25, 2010 are authorized for 
export and reexport to eligible end-users and destinations under 
paragraph (b)(2) of this license exception using the CCATS previously 
issued by BIS, without any encryption registration (i.e., the 
information described in Supplement No. 5 to part 742 of the EAR) and 
new classification by BIS, provided the previous CCATS established 
License Exception ENCSec. 740.17(b)(2) treatment for the item and the 
cryptographic functionality of the item has not changed. See paragraph 
(d)(1)(iii) of this section regarding changes in encryption 
functionality following a previous classification. An encryption 
registration and updated classification must be submitted to BIS for 
items described in paragraph (b)(2)(i) of this section effective June 
25, 2010 if the items were not previously classified underSec. 
740.17(b)(2), even if the cryptographic functionality has not changed.
    (ii) Cryptoanalytic items, open cryptographic interface items, and 
encryption technology. For items described in (or otherwise meeting the 
specifications of) paragraphs (b)(2)(ii), (b)(2)(iii) or (b)(2)(iv) of 
this section effective June 25, 2010, such items reviewed and classified 
by BIS prior to June 25, 2010 are authorized for export and reexport to 
eligible end-users and destinations under paragraph (b)(2) of this 
license exception using the CCATS previously issued by BIS, without any 
encryption registration (i.e., the information described in Supplement 
No. 5 to part 742 of the EAR), new classification by BIS, or self-
classification reporting (i.e., the information described in Supplement 
No. 8 to part 742 of the EAR), provided the cryptographic functionality 
of the item has not changed. See paragraph (d)(1)(iii) of this section 
regarding changes in encryption functionality following a previous 
classification.

[75 FR 36490, June 25, 2010, as amended at 75 FR 43820, July 27, 2010; 
76 FR 29619, May 20, 2011]



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. SeeSec. 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

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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 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 
application in accordance withSec. 748.1 of the EAR. The following 
blocks must be completed, as appropriate: 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 the application 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 inSec. 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) (https://
snapr.bis.doc.gov/stela) for status of your pending AGR notification or 
verify the status in BIS's Simplified Network Applications Processing 
Redesign (SNAP-R) System. STELA will

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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 either STELA or SNAP-R that no 
objection has been raised. If an objection is raised, STELA and SNAP-R 
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 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. 
SeeSec. 740.12 for eligibility requirements of gift parcels and 
humanitarian donations under License Exception GFT.

[66 FR 36681, July 12, 2001, as amended at 73 FR 49329, Aug. 21, 2008; 
75 FR 17054, Apr. 5, 2010; 75 FR 31681, June 4, 2010]



Sec.  740.19  Consumer Communications Devices (CCD).

    (a) Authorization. This License Exception authorizes the export or 
reexport of commodities and software described in paragraph (b) to Cuba 
subject to the conditions in paragraphs (c) and (d) of this section. 
This section does not authorize U.S.-owned or -controlled entities in 
third countries to engage in reexports of foreign produced commodities 
to Cuba for which no license would be issued by the Treasury Department 
pursuant to 31 CFR 515.559. Cuba is the only eligible destination under 
this License Exception.
    (b) Eligible Commodities and Software. Commodities and software 
eligible for export or reexport under this section are:
    (1) Computers designated EAR99 or classified under Export Control 
Classification Number (ECCN) 4A994.b that do not exceed an adjusted peak 
performance of 0.02 weighted teraflops;
    (2) Disk drives and solid state storage equipment classified under 
ECCN 5A992 or designated EAR99;
    (3) Input/output control units (other than industrial controllers 
designed for chemical processing) designated EAR99;
    (4) Graphics accelerators and graphics coprocessors designated 
EAR99;
    (5) Monitors classified under ECCN 5A992 or designated EAR99;
    (6) Printers classified under ECCN 5A992 or designated EAR99;
    (7) Modems classified under ECCNs 5A991.b.2, or 5A992 or designated 
EAR99;
    (8) Network access controllers and communications channel 
controllers classified under ECCN 5A991.b.4 or designated EAR99;
    (9) Keyboards, mice and similar devices designated EAR99;
    (10) Mobile phones, including cellular and satellite telephones, 
personal digital assistants, and subscriber information module (SIM) 
cards and similar devices classified under ECCNs 5A992 or 5A991 or 
designated EAR99;
    (11) Memory devices classified under ECCN 5A992 or designated EAR99;
    (12) ``Information security'' equipment, ``software'' (except 
``encryption source code'') and peripherals classified under ECCNs 5A992 
or 5D992 or designated EAR99;
    (13) Digital cameras and memory cards classified under ECCN 5A992 or 
designated EAR99;
    (14) Television and radio receivers classified under ECCN 5A992 or 
designated EAR99;
    (15) Recording devices classified under ECCN 5A992 or designated 
EAR99;
    (16) Batteries, chargers, carrying cases and accessories for the 
equipment described in this paragraph that are designated EAR99; and
    (17) ``Software'' (except ``encryption source code'') classified 
under ECCNs 4D994, 5D991 or 5D992 or designated EAR99 to be used for 
equipment described in this paragraph (b).
    (c) Donation requirement. This License Exception authorizes the 
export or reexport of eligible commodities and software that will be 
donated by the

[[Page 308]]

exporter or reexporter to an eligible end-user or to eligible end-users 
free of charge. The payment by an end-user of any handling charges 
arising within the importing country or any charges levied by the 
government of the importing country shall not be considered a charge for 
purposes of this paragraph.
    (d) Eligible end-users--(1) Organizations. This License Exception 
may be used to export or reexport eligible commodities and software to 
and for the use of independent non-governmental organizations. The Cuban 
Government or the Cuban Communist Party and organizations they 
administer or control are not eligible end-users.
    (2) Individuals. This License Exception may be used to export 
eligible commodities and software to and for the use of individuals 
other than the following officials of the Cuban Government and Cuban 
Communist Party:
    (i) Ineligible Cuban Government Officials. Ministers and vice-
ministers; members of the Council of State; members of the Council of 
Ministers; members and employees of the National Assembly of People's 
Power; members of any provincial assembly; local sector chiefs of the 
Committees for the Defense of the Revolution; Director Generals and sub-
Director Generals and higher of all Cuban ministries and state agencies; 
employees of the Ministry of the Interior (MININT); employees of the 
Ministry of Defense (MINFAR); secretaries and first secretaries of the 
Confederation of Labor of Cuba (CTC) and its component unions; chief 
editors, editors and deputy editors of Cuban state-run media 
organizations and programs, including newspapers, television, and radio; 
or members and employees of the Supreme Court (Tribuno Supremo 
Nacional).
    (ii) Ineligible Cuban Communist Party Officials. Members of the 
Politburo; the Central Committee; Department Heads of the Central 
Committee; employees of the Central Committee; and the secretaries and 
first secretaries of provincial Party central committees.

[74 FR 45989, Sept. 8, 2009]



Sec.  740.20  License Exception Strategic Trade Authorization (STA).

    (a) Introduction. This section authorizes exports, reexports and in 
country transfers, including releases within a single country of 
software source code and technology to foreign nationals in lieu of a 
license that would otherwise be required pursuant to part 742 of the 
EAR.
    (b) Requirements and Limitations--(1) Requirements for Using License 
Exception STA. (i) All of the reasons for control that impose a part 742 
license requirement on the export, reexport or in country transfer must 
be addressed in at least one authorizing paragraph of this section.
    (ii) The party using License Exception STA must comply with all of 
the requirements in paragraph (d) of this section.
    (2) Limitations on Use of License Exception STA. The prohibitions 
and limits of this paragraph (b)(2) apply notwithstanding the 
authorizations in paragraph (c) of this section.
    (i) License Exception STA may not be used in lieu of any license 
requirement imposed by ``Part 744--Control Policy: End User and End Use 
Based'' or by ``Part 746--Embargoes and Other Special Controls'' of the 
EAR.
    (ii) License Exception STA may not be used for any item controlled 
under ECCNs 0A981, 0A982, 0A983, 0A985 or 0E982.
    (iii) License Exception STA may not be used for any item that is 
controlled for reason of encryption items (EI), short supply (SS), 
surreptitious listening (SL), missile technology (MT) or chemical 
weapons (CW).
    (iv) License Exception STA may not be used for any item identified 
on the CCL as being subject to the exclusive export control jurisdiction 
of another agency, such as the Department of State, the Department of 
Energy, or the Nuclear Regulatory Commission.
    (v) License Exception STA may not be used for any item controlled by 
ECCN 1C351.a, .b, .c, d.11, .d.12 or .e, ECCNs 1C352, 1C353, 1C354, 
1C360, 1E001 (i.e., for technology, as specified in ECCN 1E001, for 
items controlled by ECCN 1C351.a, .b, .c, .d.11, .d.12 or .e or ECCNs 
1C352, 1C353, 1C354 or 1C360) or ECCN 1E351.
    (vi) Toxins controlled by ECCN 1C351.d.1 through 1C351.d.10 and 
1C351.d.13 through 1C351.d.19 are authorized under License Exception STA

[[Page 309]]

to destinations indicated in paragraph (c)(1) of this section, subject 
to the following limits. For purposes of this paragraph, all such toxins 
that are sent from one exporter, reexporter or transferor to a single 
end-user, on the same day, constitute one shipment.
    (A) The maximum amount of any one toxin in any one shipment may not 
exceed 100 milligrams.
    (B) No exporter, reexporter or transferor may send more than six 
shipments of any one toxin to any one end user in a single calendar 
year.
    (vii) Commerce Control List Category 9 limitations on use of License 
Exception STA.
    (A) License Exception STA may not be used for 9D001 or 9D002 
``software'' that is specially designed or modified for the 
``development'' or ``production'' of:
    (1) Components of engines controlled by ECCN 9A001 if such 
components incorporate any of the ``technologies'' controlled by 
9E003.a.1, 9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.i 
(other than technology for fan or power turbines), 9E003.h; or
    (2) Equipment controlled by 9B001.
    (B) License Exception STA may not be used for 9D001 ``software'' 
that is specially designed or modified for the ``development'' of 
``technology'' controlled by 9E003.a.1, 9E003.a.2, 9E003.a.3, 9E003.a.4, 
9E003.a.5, 9E003.c, 9E003.i (other than technology for fan or power 
turbines) or 9E003.h.
    (C) License Exception STA may not be used for 9D004.f or 9D004.g 
``software''.
    (D) License Exception STA may not be used for 9E001 ``technology'' 
according to the General Technology Note for the ``development'' of 
9A001.b engines or components of engines controlled by 9A001.b if such 
components incorporate:
    (1) Any of the ``technologies'' controlled by 9E003.a.1, 9E003.a.2, 
9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.i (other than technology 
for fan or power turbines) or 9E003.h;
    (2) Any of the 9D001 or 9D002 software in paragraphs (b)(2)(viii)(A) 
or (B) of this section.
    (E) License Exception STA may not be used for 9E002 ``technology'' 
according to the General Technology Note for the ``production'' of 
components of engines controlled by 9A001.b if such components 
incorporate any of the ``technologies'' controlled by 9E003.a.1, 
9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.i (other than 
technology for fan or power turbines) 9E003.h.
    (F) License Exception STA may not be used for ``technology'' in 
9E003.a.1, 9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.i 
(other than technology for fan or power turbines) 9E003.h.
    (viii) License Exception STA may not be used to export, reexport or 
transfer any packaged microwave ``monolithic integrated circuits'' 
(MMIC) power amplifiers classified under ECCN 3A982.b.
    (ix) License Exception STA may not be used for any commodity 
controlled by ECCNs 6A002.a.2, a.3.a, a.3.b, a.3.g or .c, or any related 
``technology'' controlled by 6E001 or 6E002.
    (c) Authorizing paragraphs--(1) Multiple reasons for control. 
Exports, reexports, and in country transfers in which the only 
applicable reason(s) for control is (are) national security (NS); 
chemical or biological weapons (CB); nuclear nonproliferation (NP); 
regional stability (RS); crime control (CC), and/or significant items 
(SI) are authorized for destinations in or nationals of Argentina, 
Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, 
Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, 
Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, New 
Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South 
Korea, Spain, Sweden, Switzerland, Turkey, or the United Kingdom.
    (2) Controls of lesser sensitivity. Exports, reexports and in 
country transfers in which the only applicable reason for control is 
national security (NS) and the item being exported, reexported or 
transferred (in country) is not designated in the STA paragraph in the 
License Exception section of the ECCN that lists the item are authorized 
for destinations in or nationals of Albania, Hong Kong, India, Israel, 
Malta, Singapore, South Africa, or Taiwan.
    (d) Conditions--(1) Requirement to furnish Export Control 
Classification Number. (i) The exporter must furnish to the consignee 
the ECCN of each item to

[[Page 310]]

be shipped pursuant to this section. Once furnished to a particular 
consignee, the ECCN that applies to any item need not be refurnished to 
that consignee at the time the same exporter makes an additional 
shipment of the same item, if the information remains accurate at the 
time of the additional shipment.
    (ii) A reexporter or transferor must furnish to subsequent 
consignees the ECCN, provided by the exporter or a prior reexporter or 
transferor, of each item to be shipped pursuant to this section. Once 
furnished to a particular consignee, the ECCN that applies to any item 
need not be refurnished to that consignee at the time the same 
reexporter or transferor makes an additional shipment of the same item, 
if the information remains accurate at the time of the additional 
shipment.
    (iii) For purposes of determining reexport or transfer eligibility 
under this section, the consignee may rely on the ECCN provided to it by 
the party required to furnish the ECCN under paragraph (d)(1)(i) or (ii) 
of this section unless the consignee knows that the ECCN is incorrect or 
has changed. The word ``knows'' has the same meaning as the term 
``knowledge'' inSec. 772.1 of the EAR.
    (2) Prior Consignee Statement. The exporter, reexporter and 
transferor must obtain the following statement in writing from its 
consignee prior to shipping the item and must retain the statement in 
accordance with part 762 of the EAR. One statement may be used for 
multiple shipments of the same items between the same parties so long as 
the party names, the description(s) of the item(s) and the ECCNs are 
correct. The exporter, reexporter, and transferor must maintain a log or 
other record that identifies each shipment made pursuant to this section 
and the specific consignee statement that is associated with each 
shipment.


[INSERT NAME OF CONSIGNEE]:

    (i) Is aware that [INSERT DESCRIPTION AND APPLICABLE ECCNS OF ITEMS 
TO BE SHIPPED] will be shipped pursuant to License Exception Strategic 
Trade Authorization (STA) inSec. 740.20 of the United States Export 
Administration Regulations (15 CFR 740.20);
    (ii) Has been informed of the ECCNs noted above by [INSERT NAME OF 
EXPORTER, REEXPORTER OR TRANSFEROR];
    (iii) Understands that items shipped pursuant to License Exception 
STA may not subsequently be reexported pursuant to paragraphs (a) or (b) 
of License Exception APR (15 CFR 740.16(a) or (b));
    (iv) Agrees not to export, reexport or transfer these items to any 
destination, use or user prohibited by the United States Export 
Administration Regulations; and
    (v) Agrees to provide copies of this document and all other export, 
reexport or transfer records (i.e., the documents described in 15 CFR 
part 762) relevant to the items referenced in this statement to the U.S. 
Government as set forth in 15 CFR 762.7.
    (3) Notification to consignee of STA shipment. With each shipment 
under License Exception STA, the exporter (or reexporter or transferor 
as applicable), must notify the consignee in writing that the shipment 
is made pursuant to License Exception STA. The notice must either 
specify which items are subject to License Exception STA or state that 
the entire shipment is made pursuant to License Exception STA. The 
notice must clearly identify the shipment to which it applies. The 
written notice may be conveyed by paper documents or by electronic 
methods such as facsimile or email.
    (4) Requirements for releases of software source code or technology 
within a single country. Instead of the requirement of paragraphs (d)(1) 
through (d)(3) of this section, the party releasing software source code 
or technology to a national of a country listed in paragraph (c)(1) or 
(c)(2) of this section must notify the recipient of the software source 
code or technology of the restrictions upon further release of the 
software source code or technology. The notification must either 
expressly inform the recipient that the EAR impose limits on further 
disclosure or must be in the form of an agreement in which the recipient 
agrees to limits on further disclosure. Any such agreement must impose 
limits that are equivalent to or more restrictive than all limits on 
further disclosure that are imposed by the EAR.

[[Page 311]]

The notification must be in writing and a copy of it must be retained by 
the party making the release and the recipient of the release. The 
notification may be in a separate document or included in a document 
such as a contract or a nondisclosure agreement. If the document has an 
expiration date, it must provide that the restrictions on disclosure do 
not expire.
    (e) Limitation on subsequent exports, reexports or in country 
transfers. If a commodity has been exported, reexported or transferred 
in-country pursuant to this section, it may not be subsequently 
exported, reexported or transferred in-country pursuant to paragraphs 
(a) or (b) of License Exception APR (Sec.  740.16(a) or (b) of the EAR). 
Paragraphs (a) and (b) of License Exception APR do not authorize exports 
of software or technology.
    (f) Applicability of Wassenaar Arrangement reporting requirements. 
SeeSec. 743.1 of the EAR for special reporting requirements that apply 
to some exports made pursuant to this section.

[76 FR 35287, June 16, 2011, as amended at 76 FR 56101, Sept. 12, 2011; 
77 FR 1018, Jan. 9, 2012; 77 FR 39368, July 2, 2012]



            Sec. Supplement No. 1 to Part 740--Country Groups

                                                 Country Group A
----------------------------------------------------------------------------------------------------------------
                                                                                   [A:2]
                                                                                  Missile     [A:3]      [A:4]
                              Country                                  [A:1]    technology  Australia   Nuclear
                                                                                  control     group    suppliers
                                                                                  regime                 group
----------------------------------------------------------------------------------------------------------------
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          X
Canada.............................................................         X           X          X          X
Croatia............................................................  .........  ..........         X
Cyprus.............................................................  .........  ..........         X          X
Czech Republic.....................................................  .........          X          X          X
Denmark............................................................         X           X          X          X
Estonia............................................................  .........  ..........         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
India..............................................................  .........          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          X
Lithuania..........................................................  .........  ..........         X
Luxembourg.........................................................         X           X          X          X
Malta..............................................................  .........  ..........         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          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          X
United Kingdom.....................................................         X           X          X          X
United States......................................................         X           X          X          X
----------------------------------------------------------------------------------------------------------------
\1\ Cooperating Countries.

                       Country Group B--Countries

Afghanistan
Albania
Algeria
Andorra
Angola
Antigua and Barbuda
Argentina
Aruba
Australia
Austria
The Bahamas
Bahrain
Bangladesh
Barbados
Belgium
Belize
Benin
Bhutan
Bolivia
Bosnia & Herzegovina
Botswana
Brazil
Brunei
Bulgaria
Burkina Faso
Burundi
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
Colombia
Comoros
Congo (Democratic Republic of the)
Congo (Republic of the)
Costa Rica
Cote d'lvoire
Croatia
Cura[ccedil]ao
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Fiji
Finland
France
Gabon
Gambia, The
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana

[[Page 312]]


Haiti
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kenya
Kiribati
Korea, South
Kosovo
Kuwait
Latvia
Lebanon
Lesotho
Liberia
Lithuania
Luxembourg
Macedonia, The Former
 Yugoslav Republic of
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Mauritania
Mauritius
Mexico
Micronesia, Federated
 States of
Monaco
Montenegro
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
Rwanda
Saint Kitts & Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
San Marino
Sao Tome & Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Sint Maarten (the Dutch two-fifths of the island of Saint Martin)
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
South Sudan, Republic of
Spain
Sri Lanka
Surinam
Swaziland
Sweden
Switzerland
Taiwan
Tanzania
Thailand
Timor-Leste
Togo
Tonga
Trlnidad & Tobago
Tunisia
Turkey
Tuvalu
Uganda
United Arab Emirates
United Kingdom
United States
Uruguay
Vanuatu
Vatican City
Venezuela
Western Sahara
Yemen
Zambia
Zimbabwe

                       Country Group C [Reserved]

                             Country Group D
------------------------------------------------------------------------
                               [D: 1]               [D: 3]      [D: 4]
           Country            National   [D: 2]   Chemical &    Missile
                              Security  Nuclear   Biological  Technology
------------------------------------------------------------------------
Afghanistan.................  ........  ........         X
Armenia.....................        X   ........         X
Azerbaijan..................        X   ........         X
Bahrain.....................  ........  ........         X           X
Belarus.....................        X   ........         X
Burma.......................        X                    X
Cambodia....................        X
China (PRC).................        X   ........         X           X
Cuba........................  ........        X          X
Egypt.......................  ........  ........         X           X
Georgia.....................        X   ........         X
Iran........................  ........        X          X           X
Iraq........................        X         X          X           X
Israel......................  ........        X          X           X
Jordan......................  ........  ........         X           X
Kazakhstan..................        X   ........         X
Korea, North................        X         X          X           X
Kuwait......................  ........  ........         X           X
Kyrgyzstan..................        X   ........         X
Laos........................        X
Lebanon.....................  ........  ........         X           X
Libya.......................        X         X          X           X
Macau.......................        X   ........         X           X
Moldova.....................        X   ........         X
Mongolia....................        X   ........         X
Oman........................  ........  ........         X           X
Pakistan....................  ........        X          X           X
Qatar.......................  ........  ........         X           X
Russia......................        X   ........         X
Saudi Arabia................  ........  ........         X           X
Syria.......................  ........  ........         X           X
Taiwan......................  ........  ........         X
Tajikstan...................        X   ........         X
Turkmenistan................        X   ........         X
Ukraine.....................        X
United Arab Emirates........  ........  ........         X           X
Uzbekistan..................        X   ........         X
Vietnam.....................        X   ........         X
Yemen.......................  ........  ........         X           X
------------------------------------------------------------------------


                           Country Group E \1\
------------------------------------------------------------------------
                                        [E:1] Terrorist       [E:2]
                Country                    supporting       Unilateral
                                         countries \2\       embargo
------------------------------------------------------------------------
Cuba..................................               X                X
Iran..................................               X
Korea, North..........................               X
Sudan.................................               X
Syria.................................               X
------------------------------------------------------------------------
\1\ In addition to the controls maintained by the Bureau of Industry and
  Security pursuant to the EAR, note that the Department of the Treasury
  administers:
(a) A comprehensive embargo against Cuba, Iran, and Sudan; and
(b) An embargo against certain persons, e.g., Specially Designated
  Terrorists (SDT), Foreign Terrorist Organizations (FTO), Specially
  Designated Global Terrorists (SDGT), and Specially Designated
  Narcotics Traffickers (SDNT). Please see part 744 of the EAR for
  controls maintained by the Bureau of Industry and Security on these
  and other persons.
\2\ The President made inapplicable with respect to Iraq provisions of
  law that apply to countries that have supported terrorism.


[61 FR 12768, Mar. 25, 1996]

[[Page 313]]


    Editorial Note: For Federal Register citations affecting Supplement 
No. 1 to Part 740, see the List of CFR Sections Affected, which appears 
in the Finding Aids section of the printed volume and at www.fdsys.gov.



  Sec. 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



   Sec. Supplement No. 3 to Part 740--License Exception ENC Favorable 
                           Treatment Countries

Austria
Australia
Belgium
Bulgaria
Canada
Cyprus
Czech Republic
Estonia
Denmark
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Latvia
Lithuania
Luxembourg
Malta
Netherlands
New Zealand
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom

[69 FR 71363, Dec. 9, 2004, as amended at 73 FR 57507, Oct. 3, 2008]



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 and detection.
742.8 Anti-terrorism: Iran.
742.9 Anti-terrorism: Syria.
742.10 Anti-terrorism: Sudan.
742.11 Specially designed implements of torture, including thumbscrews, 
          thumbcuffs, fingercuffs, spiked batons, and parts and 
          accessories, n.e.s.
742.12 [Reserved]
742.13 Communications intercepting devices; software and technology for 
          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,

[[Page 314]]

          Syria and Sudan Contract Sanctity Dates and Related Policies
Supplement Nos. 3-4 to Part 742 [Reserved]
Supplement No. 5 to Part 742--Encryption Registration
Supplement No. 6 to Part 742--Technical Questionnaire for Encryption 
          Items
Supplement No. 7 to Part 742--Description of Major Weapons Systems
Supplement No. 8 to Part 742--Self-Classification Report for Encryption 
          Items

    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; 22 U.S.C. 7201 et seq.; 22 U.S.C. 
7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; 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; Presidential Determination 2003-23 of May 7, 2003, 
68 FR 26459, May 16, 2003; Notice of November 9, 2011, 76 FR 70319 
(November 10, 2011); Notice of August 15, 2012, 77 FR 49699 (August 16, 
2012).

    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 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 and Iran. This part does 
not cover license requirements and licensing policies that apply to 
exports and reexports to embargoed destinations (Cuba and Iran). 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, Iran, North Korea, Sudan and 
Syria. Commerce maintains anti-terrorism controls on Cuba, Iran, North 
Korea, Syria and Sudan under section 6(a) of the Export Administration 
Act. Items controlled under section 6(a) to Iran, Syria, Sudan, and 
North Korea are described in Sec.Sec. 742.8, 742.9, 742.10, and 
742.19, respectively, and in Supplement No. 2 to part 742. Commerce also 
maintains controls under section 6(j) of the

[[Page 315]]

EAA to Cuba, Iran, North Korea, Sudan and Syria. Items controlled to 
these 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, North Korea, 
Iran, Sudan or Syria. If you are exporting or reexporting to Cuba, Iran, 
North Korea, or Syria, 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; and certain exports to and for the 
use of certain foreign vessels and 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 (seeSec. 742.5(b)(3) of this part), nuclear 
nonproliferation (seeSec. 742.3(b)(2) of this part), or chemical and 
biological weapons (seeSec. 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; 69 FR 23629, Apr. 29, 2004; 69 FR 46075, July 
30, 2004; 71 FR 51717, Aug. 31, 2006; 72 FR 3725, Jan. 26, 2007; 76 FR 
77117, Dec. 12, 2011]



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 alsoSec. 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, 1C354 and 1C360; 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 license requirement includes chemical mixtures identified 
in ECCN 1C350.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

[[Page 316]]

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 (ECCN 1E001) for the development or production of 
chemical detection systems and dedicated detectors therefore, controlled 
by ECCN 1A004.c, that also have the technical characteristics described 
in ECCN 2B351.a.
    (iv) 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.
    (v) Technology (ECCNs 1E001 and 1E351) for the production and/or 
disposal of chemical precursors described in ECCN 1C350;
    (vi) Equipment and materials identified in ECCN 2B350 or 2B351 on 
the CCL, chemical detection systems controlled by 1A004.c for detecting 
chemical warfare agents and having the characteristics of toxic gas 
monitoring systems described in 2B351.a, 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.
    (vii) Equipment and materials identified in ECCN 2B352, which can be 
used in the production of biological agents.
    (viii) Dedicated software identified in ECCN 2D351 for the ``use'' 
of toxic gas monitoring systems and their dedicated detecting components 
controlled by ECCN 2B351.
    (ix) Technology identified in ECCN 2E001 for the ``development'' of 
software controlled by ECCN 2D351.
    (x) 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.
    (xi) 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.
    (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 medical products identified in ECCN 1C991.d.
    (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

[[Page 317]]

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 extent and effectiveness of the export control system in 
the importing country and in any intermediary country through which the 
items being exported or reexported will transit or be transshipped en 
route to the importing country;
    (v) 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;
    (vi) 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;
    (vii) 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;
    (viii) 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;
    (ix) 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
    (x) 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.
    (4) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China, will be 
reviewed in accordance with the licensing policies in both paragraph (b) 
of this section andSec. 742.4(b)(7).
    (c) Contract sanctity. Contract sanctity dates are set forth in 
Supplement No. 1 to part 742. Applicants who wish that a preexisting 
contract be considered in reviewing their license applications must 
submit documentation sufficient to establish the existence of such a 
contract.
    (d) Australia Group. The Australia Group, a multilateral body that 
works to halt the spread of chemical and biological weapons, has 
developed common control lists of items specifically related to chemical 
and biological weapons. Australia Group members are listed in Country 
Group A:3 (see Supplement No. 1 to part 740 of the EAR). Controls on 
items listed in paragraph (a) of this section are consistent with lists 
agreed to in the Australia Group.
    (e) License application requirements and instructions. (1) 
Supplement No. 1 to part 748 of the EAR provides general instructions 
for completing license applications. When preparing applications for 
items controlled for chemical and biological reasons, pay particular 
attention to the instructions contained

[[Page 318]]

in paragraphs (e) and (f) of the Supplement that apply to entering 
``Quantity'' and ``Units,'' respectively, on license applications. 
Paragraphs (e) and (f) require that, if an item is licensed in terms of 
``$ value'' (refer to the ``Unit'' paragraph within the appropriate 
ECCN), the unit of quantity commonly used in the trade must also be 
shown on the license application. In such cases, Section 750.7 of the 
EAR provides that the quantity of commodities authorized is limited by 
the total dollar value as shown on the approved license and not by the 
quantity specified thereon. Although the EAR do not place a specific 
limitation on quantity in such cases, the total quantity that may be 
exported or reexported is limited, to a significant degree, by the fact 
that the EAR do not provide a shipping tolerance for items licensed by 
``dollar value'' (see Section 750.11(b)(1) of the EAR) and require that 
the ``unit price'' indicated on the license application reflect the fair 
market value of the items listed on the application (see paragraph (g) 
of Supplement No. 1 to part 748 of the EAR).
    (2) Unique application and submission requirements for chemicals, 
medicinals, and pharmaceuticals are described in paragraph (a) of 
Supplement No. 2 to part 748 of the EAR.

[61 FR 12786, Mar. 25, 1996]

    Editorial Note: For Federal Register citations affectingSec. 
742.2, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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 inSec. 744.2(a) of the EAR; and

[[Page 319]]

    (viii) The nonproliferation credentials of the importing country, 
based on consideration of the following factors:
    (A) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco) or to a similar 
international legally-binding nuclear nonproliferation agreement;
    (B) Whether the importing country has all of its nuclear activities, 
facilities, or installations that are operational, being designed, or 
under construction under International Atomic Energy Agency (IAEA) 
safeguards or equivalent full scope safeguards;
    (C) Whether there is an agreement for cooperation in the civil uses 
of atomic energy between the U.S. and the importing country;
    (D) Whether the actions, statements, and policies of the government 
of the importing country are in support of nuclear nonproliferation and 
whether that government is in compliance with its international 
obligations in the field of non-proliferation;
    (E) The degree to which the government of the importing country 
cooperates in non-proliferation policy generally (e.g., willingness to 
consult on international nonproliferation issues); and
    (F) Information on the importing country's nuclear intentions and 
activities.
    (2) In addition, 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.
    (4) License applications for items described in paragraph (a) of 
this section, when destined to the People's Republic of China, will be 
reviewed in accordance with the licensing policies in both paragraph (b) 
of this section andSec. 742.4(b)(7).
    (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.

[61 FR 12786, Mar. 25, 1996, as amended at 70 FR 51252, Aug. 30, 2005; 
72 FR 33656, June 19, 2007; 76 FR 4231, Jan. 25, 2011]



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), Bulgaria, Croatia, Czech Republic, 
Estonia, Hungary, Iceland, Latvia, Lithuania, Poland, Romania, Slovakia, 
and Slovenia for all items in ECCNs on the CCL that include NS column 2 
in the Commerce Country Chart column of the ``License Requirements''

[[Page 320]]

section except those cameras in ECCN 6A003.b.4.b that have a focal plane 
array with 111,000 or fewer elements and a frame rate of 60 Hz or less. 
A license is required to all destinations except Albania, Australia, 
Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, 
Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, 
Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, the 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, 
Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Turkey, 
and the United Kingdom for those cameras in ECCN 6A003.b.4.b that have a 
focal plane array with 111,000 or fewer elements and a frame rate of 60 
Hz or less and for cameras being exported or reexported pursuant to an 
authorization described inSec. 742.6(a)(2)(iii) or (v) of the EAR. 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 (seeSec. 740.4 
and Supplement No. 1 to part 740 of the EAR).
    (b) Licensing policy. (1) The policy for national security 
controlled items exported or reexported to any country except a country 
in Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is to 
approve applications unless there is a significant risk that the items 
will be diverted to a country in Country Group D:1.
    (2) Except for those countries described in paragraphs (b)(5) 
through (b)(7) of this section, the general policy for exports and 
reexports of items to Country Group D:1 (see Supplement No. 1 to part 
740 of the EAR) is to approve applications when 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, Kazakhstan, 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 (PRC), there is a general 
policy of approval for license applications to export, reexport, or 
transfer items to civil end-uses. There is a presumption of denial for 
license applications to export, reexport, or transfer items that would 
make a direct and significant contribution to the PRC's military 
capabilities such as, but not limited to, the major weapons systems 
described in Supplement No. 7 to Part 742 of the EAR.
    (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; 70 
FR 67348, Nov. 7, 2005; 72 FR 33656, June 19, 2007; 74 FR 23946, May 22, 
2009; 74 FR 68145, December 23, 2009]

[[Page 321]]



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 a least 300 kilometers (km). 
SeeSec. 746.3 of the EAR for definition of a ``ballistic missile'' to 
be exported or reexported to Iraq.
    (b) Licensing policy. (1) Applications to export and reexport items 
identified in ECCNs on the CCL as MT Column No. 1 in the Country Chart 
column of the ``License Requirements'' section will be considered on a 
case-by-case basis to determine whether the export or reexport would 
make a material contribution to the proliferation of missiles. 
Applications for exports and reexports of such items contained in 
Category 7A or described by ECCN 9A101 on the CCL will be considered 
more favorably if such exports or reexports are determined to be 
destined to a manned aircraft, satellite, land vehicle, or marine 
vessel, in quantities appropriate for replacement parts for such 
applications. When an export or reexport is deemed to make a material 
contribution to the proliferation of missiles, the license will be 
denied.
    (2) The following factors are among those that will be considered in 
reviewing individual applications.
    (i) The specific nature of the end-use;
    (ii) The significance of the export and reexport in terms of its 
contribution to the design, development, production, or use of missiles;
    (iii) The capabilities and objectives of the missile and space 
programs of the recipient country;
    (iv) The nonproliferation credentials of the importing country;
    (v) The types of assurances or guarantees against design, 
development, production, or use of missiles that are given in a 
particular case; and
    (vi) The existence of a preexisting contract.
    (3) Controls on other items. 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.
    (4) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China, will be 
reviewed in accordance with the licensing policies in both paragraph (b) 
of this section andSec. 742.4(b)(7).
    (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, and India as an MTCR adherent, 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

[[Page 322]]

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; 69 
FR 46075, July 30, 2004; 72 FR 33656, June 19, 2007; 76 FR 4231, Jan. 
25, 2011]



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) RS Column 1 License Requirements in General. As indicated in the 
CCL and in RS column 1 of the Commerce 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 3A982; 3D982; 
3E982; 6A002.a.1, a.2, a.3, or .c; 6A003.b.3, b.4.a, and b.4.c; 
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); 6D003.c; 
6D991 (only ``software'' for the ``development,'' ``production,'' or 
``use'' of equipment controlled by 6A002.a.1.d or 6A998.b); 6E001 (only 
``technology'' for ``development'' of items in 6A002.a.1, a.2, a.3 
(except 6A002.a.3.d.2.a and 6A002.a.3.e for lead selenide focal plane 
arrays), and .c, 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, or 
.c, 6A003.b.3 or b.4, or 6A008.j.1); 6E991 (only ``technology'' for the 
``development,'' ``production,'' or ``use'' of equipment controlled by 
6A998.b); 7A994 (only QRS11 00100 100/101 and QRS11 0050 443/569 
Micromachined Angular Rate Sensors); 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) Special RS Column 1 license requirements applicable to certain 
thermal imaging cameras.
    (i) As indicated in the CCL and in RS Column 1 of the Commerce 
Country Chart, cameras described in 6A003 b.4.b require a license to all 
destinations other than Canada if such cameras have a frame rate greater 
than 60 Hz.
    (ii) Except as noted in paragraph (a)(2)(iii) of this section, as 
indicated in the CCL and in RS Column 1 of the Commerce Country Chart, 
cameras described in 6A003 b.4.b require a license to all destinations 
other than Canada if such cameras incorporate a focal plane array with 
more than 111,000 elements and a frame rate of 60 Hz or less, or cameras 
described in 6A003 b.4.b that are being exported or reexported to be 
embedded in a civil product.
    (iii) BIS may issue licenses for cameras subject to the license 
requirement of paragraph (a)(2)(ii) of this section that are fully-
packaged for use as consumer-ready civil products that, in addition to 
the specific transactions authorized by such license, authorize exports 
and reexports of such cameras without a license to any civil end-user to 
whom such exports or reexport are not otherwise prohibited by U.S. law 
in Albania, Australia, Austria, Belgium, Bulgaria, Croatia, Cyprus, 
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, 
Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, 
Malta, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, 
Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, 
Switzerland, Turkey, and the United Kingdom. The license requirements of 
this paragraph (a)(2) shall not apply to exports or reexports so 
authorized. In this paragraph, the term ``civil end-user'' means any 
entity that is not a national armed service (army, navy, marine, air 
force, or coast guard), national guard, national police, government 
intelligence organization or government reconnaissance organization, or 
any person or entity whose actions or functions are intended to support 
``military end-uses'' as defined in 744.17(d).

[[Page 323]]

    (iv) Except as noted in paragraph (a)(2)(v) of this section, as 
indicated in the CCL and in RS Column 1 of the Commerce Country Chart, 
cameras described in 6A003 b.4.b require a license to all destinations 
other than Canada if such cameras incorporate a focal plane array with 
111,000 elements or less and a frame rate of 60 Hz or less and are being 
exported or reexported to be embedded in a civil product.
    (v) BIS may also issue licenses for the cameras described in 
paragraph (a)(2)(iv) that, in addition to the specific transactions 
authorized by such license, authorize exports and reexports to 
authorized companies described in the license for the purpose of 
embedding such cameras into a completed product that will be distributed 
only in Albania, Australia, Austria, Belgium, Bulgaria, Croatia, Cyprus, 
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, 
Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, 
Malta, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, 
Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, 
Switzerland, Turkey, and the United Kingdom. The license requirements of 
this paragraph (a)(2) shall not apply to exports or reexports so 
authorized. In this paragraph, the term ``authorized companies'' means 
companies that have been previously licensed for export, are not the 
subject of relevant negative intelligence or open source information, 
have not been the subject of a Department of Commerce or Department of 
State enforcement action within the past two years, have demonstrable 
production capacity, and do not pose an unacceptable risk of diversion.
    (3) Special RS Column 1 license requirement applicable to military 
commodities. A license is required for reexports to all destinations 
except Canada for items classified under ECCN 0A919 except when such 
items are being reexported as part of a military deployment by a unit of 
the government of Albania, Australia, Austria, Belgium, Bulgaria, 
Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, 
France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, 
Latvia, Lithuania, Luxembourg, Malta, the Netherlands, New Zealand, 
Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, 
South Korea, Spain, Sweden, Switzerland, Turkey, the United Kingdom or 
the United States.
    (4) RS Column 2 license requirements--(i) License Requirements 
Applicable to Most RS Column 2 Items. As indicated in the CCL and in RS 
Column 2 of the Commerce Country Chart (see Supplement No. 1 to part 738 
of the EAR), a license is required to any destination except Australia, 
Japan, New Zealand, and countries in the North Atlantic Treaty 
Organization (NATO) for items described on the CCL under ECCNs 0A918, 
0E918, 1A004.d, 1D003 (software to enable equipment to perform the 
functions of equipment controlled by 1A004.d), 1E001 (technology for the 
development, production, or use of 1A004.d), 2A983, 2A984, 2D983, 2D984, 
2E983, 2E984, 8A918, 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, 9A018.a and .b, 9D018 (only 
software for the ``use'' of commodities in ECCN 9A018.a and .b), and 
9E018 (only technology for the ``development'', ``production'', or 
``use'' of commodities in 9A018.a and .b).
    (ii) Special RS Column 2 license requirements applicable only to 
certain cameras. As indicated by the CCL, and RS column 2 and footnote 
number 4 to the Commerce Country Chart, a license is required to any 
destination except Albania, Australia, Austria, Belgium, Bulgaria, 
Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, 
France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, 
Latvia, Lithuania, Luxembourg, Malta, the Netherlands, New Zealand, 
Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, 
South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom 
for fully-packaged thermal imaging cameras for use as consumer-ready 
civil products controlled by 6A003.b.4.b when incorporating ``focal 
plane arrays'' that have not more than 111,000 elements and a frame rate 
of 60Hz or less and that are not being exported or

[[Page 324]]

reexported to be embedded in a civil product.
    (5) RS requirements that apply to Iraq. As indicated on the CCL, a 
license is required for the export or reexport to Iraq or transfer 
within Iraq of the following items controlled for RS reasons on the CCL: 
0B999, 0D999, 1B999, 1C992, 1C995, 1C997, 1C999 and 6A992. The Commerce 
Country Chart is not designed to determine RS licensing requirements for 
these ECCNs.
    (6) RS requirement that applies to Hong Kong. A license is required 
to export or reexport to Hong Kong any item controlled in ECCN 
6A003.b.4.b
    (7) RS Column 1 license requirements and related policies for ECCN 
0Y521 items.
    (i) Scope. This paragraph (a)(7) supplements the information in the 
0Y521 ECCNs and in Supplement No. 5 to part 774 (Items Classified Under 
ECCNs 0A521, 0B521, 0C521, 0D521 and 0E521). This paragraph alerts 
exporters, reexporters and transferors to the procedures that apply to 
items classified under the 0Y521 ECCNs.
    (ii) 0Y521 Items. Items subject to the EAR that are not listed 
elsewhere in the CCL, but which the Department of Commerce, with the 
concurrence of the Departments of Defense and State, has determined 
should be controlled for export because the items provide at least a 
significant military or intelligence advantage to the United States or 
for foreign policy reasons are classified under ECCNs 0A521, 0B521, 
0C521, 0D521 and 0E521. These items are typically emerging technologies 
(including emerging commodities, software and technology) that are not 
yet included in the CCL, so such items are listed on the CCL in 0Y521 
ECCNs while the U.S. Government determines whether classification under 
a revised or new ECCN, or an EAR 99 designation, is appropriate. The 
list of items classified under a 0Y521 ECCN is limited to those listed 
in Supplement No. 5 to part 774.
    (iii) Requirement to be classified under another ECCN within one 
calendar year of classification under ECCN 0Y521. Items classified under 
an ECCN 0Y521 entry must be re-classified under another ECCN within one 
calendar year from the date they are listed in Supplement No. 5 to part 
774 of the EAR. If such re-classification does not occur within that 
period, classification under an ECCN 0Y521 entry expires, and such items 
are designated as EAR99 items unless either the CCL is amended to impose 
a control on such items under another ECCN or the ECCN 0Y521 
classification is extended. BIS may extend an item's ECCN 0Y521 
classification for two one-year periods, provided that the U.S. 
Government has submitted a proposal to the relevant multilateral 
regime(s) to obtain multilateral controls over the item. Further 
extension beyond three years may occur only if the Under Secretary for 
Industry and Security makes a determination that such extension is in 
the national security or foreign policy interests of the United States. 
Any extension or re-extension of control of an ECCN 0Y521 item, 
including the determination by the Under Secretary, shall be published 
in the Federal Register.
    (b) Licensing policy. (1) Applications for exports and reexports 
described in paragraph (a)(1), (a)(2), (a)(6) or (a)(7) 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. Applications for reexports of items described in 
paragraph (a)(3) of this section will be reviewed applying the policies 
for similar commodities that are subject to the International Traffic in 
Arms Regulations (22 CFR Parts 120-130).
    (2) Licensing policy for RS Column 2 items. (i) Except as described 
in paragraph (b)(2)(ii), applications to export and reexport commodities 
described in paragraph (a)(4) 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.
    (ii) Applications to export and reexport items controlled under 
ECCNs 2A984, 2D984 and 2E984 will be reviewed under a presumption of 
approval when exported or reexported to Austria, Cyprus, Finland, 
Ireland, Israel, Malta, Mexico, Singapore or Sweden, provided

[[Page 325]]

the items to be exported or reexported are being made to a government 
end-user or to a person designated by the government end-user pursuant 
to contract. License applications to export to a designated person must 
include a statement from the government end-user that the person is so 
designated. See Supplement No. 2 to part 748, paragraph (k)(2).
    (3) For terrorist-designated countries, the applicable licensing 
policies are found in parts 742 and 746 of the EAR.
    (4) SeeSec. 746.3(b) of the EAR for the applicable licensing 
policies for items controlled for RS reasons to Iraq.
    (c)(1)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.
    (2) Contract sanctity date: March 19, 2010. This contract sanctity 
date applies only to items controlled under ECCNs 2A984, 2D984 and 2E984 
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; 69 FR 16480, Mar. 30, 2004; 69 FR 36010, June 28, 2004; 71 FR 
51718, Aug. 31, 2006; 73 FR 6604, Feb. 5, 2008; 74 FR 23946, May 22, 
2009; 74 FR 66010, Dec. 11, 2009; 74 FR 68145, Dec. 23, 2009; 75 FR 
14339, Mar. 25, 2010; 77 FR 1018, Jan. 9, 2012; 77 FR 22198, Apr. 13, 
2012; 77 FR 39368, July 2, 2012]



Sec.  742.7  Crime control and detection.

    (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) Items designed for the execution of human beings as identified 
in ECCN 0A981 require a license to all destinations including Canada.
    (6) SeeSec. 742.11 of the EAR for further information on items 
controlled under ECCN 0A983, which require a license to all 
destinations, including Canada.

[[Page 326]]

    (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 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. In maintaining its controls on crime control and 
detection items, the United States considers international norms 
regarding human rights and the practices of other countries that control 
exports to promote the observance of human rights. However, these 
controls are not based on the decisions of any multinational export 
control regime and may differ from controls imposed by other countries.

[65 FR 55178, Sept. 13, 2000, as amended at 75 FR 41082, July 15, 2010]



Sec.  742.8  Anti-terrorism: Iran.

    (a) License Requirements. (1) A license is required for anti-
terrorism purposes to export or reexport to Iran any item for which AT 
column 1 or AT column 2 is indicated in the Country Chart column of the 
applicable ECCN or any item described in ECCNs 1C350, 1C355, 1C395, 
2A994, 2D994 and 2E994. See paragraph (a)(5) of this section for 
controls maintained by the Department of the Treasury. SeeSec. 746.7 
of the EAR for additional EAR license requirements that apply to Iran.
    (2) [Reserved]
    (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 applicable to terrorism-
supporting countries, the EAR imposes anti-terrorism license 
requirements on exports and reexports to Iran pursuant to sections 6(j) 
and 6(a) of the Export Administration Act.
    (i) Section 6(j) anti-terrorism controls. Section 6(j) requirements 
apply to all exports and reexports destined to the police, military or 
other sensitive end-users of items listed on the Commerce Control List 
(Supp. No. 1 to part 774 of the EAR) for which any listed reason for 
control in the applicable ECCN is NS (national security), CB (chemical 
or biological weapons proliferation), MT (missile proliferation), NP 
(nuclear weapons proliferation) or an Export Control Classification 
Number ending in ``18'' (military related items). BIS may not issue a 
license for a transaction subject to section 6(j) controls until 30 days 
after the notification described in Section 6(j)(2) of the Export 
Administration Act is delivered to the committees of Congress specified 
in that section. License applications for all other items controlled 
under section 6(a) are also reviewed to determine whether section 6(j) 
applies.
    (ii) Section 6(a) anti-terrorism controls. Section 6(a) requirements 
apply to all exports and reexports regardless of the end user of items 
described in paragraph (a)(1) of this section.
    (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 327]]

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. Section 6(f) of the Export Administration Act 
requires that a report be delivered to Congress before foreign policy 
based export controls are imposed, expanded or extended. Consistent with 
section 6(p) of the Export Administration Act, certain exports or 
reexports in fulfillment of contracts entered into before such delivery 
of the report applicable to a particular license requirement or 
licensing policy may be subject to the license requirements and 
licensing policy that were in force before the report was delivered. 
License applicants who wish to have their application considered under 
such pre-existing requirements or policy must include evidence of the 
pre-existing contract with their license applications.
    (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; 74 FR 2356, Jan. 15, 2009]



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

[[Page 328]]

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 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.
    (xii) Concealed object detection equipment controlled under ECCN 
2A984.
    (xiii) ``Software'' (ECCN 2D984) ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984.
    (xiv) ``Technology'' (ECCN 2E984) ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984, or the ``development'' of ``software'' 
controlled by 2D984.
    (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

[[Page 329]]

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.
    (e) Section 746.9 (Syria) of the EAR sets forth the export and 
reexport controls for Syria. Section 746.9 supersedes the provisions of 
paragraphs (a) through (d) of this section.

[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; 71 FR 9442, Feb. 24, 2006; 75 FR 14340, Mar. 25, 
2010; 76 FR 77117, Dec. 12, 2011]



Sec.  742.10  Anti-terrorism: Sudan.

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

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

    (2) If AT column 1 or AT column 2 of the 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.

[[Page 330]]

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.
    (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.
    (xii) Concealed object detection equipment controlled under ECCN 
2A984.
    (xiii) ``Software'' (ECCN 2D984) ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984.
    (xiv) ``Technology'' (ECCN 2E984) ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984, or the ``development'' of ``software'' 
controlled by 2D984.
    (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.

[[Page 331]]

    (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; 75 FR 14340, Mar. 25, 2010]



Sec.  742.11  Specially designed implements of torture, including
thumbscrews, thumbcuffs, fingercuffs, spiked batons, and parts
and accessories, n.e.s.

    (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 any commodity controlled by ECCN 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. In maintaining its controls on specially designed 
instruments of torture the United States considers international norms 
regarding human rights and the practices of other countries that control 
exports to promote the observance of human rights. However, these 
controls are not based on the decisions of any multinational export 
control regime and may differ from controls imposed by other countries.

[61 FR 12786, Mar. 25, 1996, as amended at 72 FR 9849, Mar. 6, 2007; 75 
FR 41082, July 15, 2010]



Sec.  742.12  [Reserved]



Sec.  742.13  Communications intercepting devices; software and
technology for communications intercepting devices.

    (a) License requirement. (1) In support of U.S. foreign policy to 
prohibit the export of items that may be used for the surreptitious 
interception of wire, oral, or electronic communications, a license is 
required for all destinations, including Canada, for ECCNs having an 
``SL'' under the ``Reason for Control'' paragraph. These items include 
any electronic, mechanical, or other device primarily useful for the 
surreptitious interception of wire, oral, or electronic communications 
(ECCNs 5A001.i and 5A980); and for related ``software'' primarily useful 
for the surreptitious interception of wire, oral, or electronic 
communications (ECCN 5D001.c and 5D980.a); and ``software'' primarily 
useful for the ``development'', ``production'', or ``use'' of devices 
controlled under ECCNs 5A001.i and 5A980 (ECCNs 5D001.a and 5D980.b); 
and for ``technology'' primarily useful for the ``development'', 
``production'', or ``use'' of items controlled by ECCNs 5A001.i, 5D001.a 
(for 5A001.i), 5A980 and 5D980 (ECCNs 5E001.a and 5E980); and for 
``software'' primarily useful to support such ECCN 5E001.a 
``development'', ``production'', or ``use'' ``technology'' for 5A001.i 
equipment and certain 5D001.a ``software'' (ECCN 5D001.b). These 
licensing requirements do not supersede the requirements contained in 
the Omnibus Crime Control and Safe Streets Act of 1968, as amended (18 
U.S.C. 2512). This license requirement is not reflected on the Commerce 
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, 
oral, or electronic 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.

[[Page 332]]

    (b) Licensing policy. (1) License applications, except for those 
applications for which a license is required for both SL and AT reasons, 
will generally be approved for exports or reexports requiring a license 
for SL reasons when the exporter or reexporter is:
    (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; or
    (ii) An officer, agent, or employee of, or a 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.

    Note to Paragraph (b)(1): For SL reasons, license applications will 
generally be denied to countries that are subject to controls for AT 
reasons.
    Note to Paragraph (b)(1)(i): The normal course of the business of 
providing a wire or electronic communications service includes any 
activity which is a necessary incident to the rendition of the service 
or to the protection of the rights and property of the provider of that 
service.

    (2) Other license applications will generally be denied for exports 
or reexports requiring a license for SL reasons.
    (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 items classified under ECCNs 5A980, 
5D980, and 5E980 are maintained by the United States government for 
foreign policy purposes.

[61 FR 12786, Mar. 25, 1996, as amended at 71 FR 67036, Nov. 20, 2006; 
77 FR 39368, July 2, 2012]



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.8, .h,.i and .j, and related 
controls.
    (b) Licensing policy. Pursuant to section 6 of the Export 
Administration Act of 1979, as amended, foreign policy controls apply to 
technology required for the development, production or overhaul of 
commercial aircraft engines controlled by ECCN 9E003a.1 through a.8, 
.h,.i, and .j, 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 thisSec. 742.14.
    (d) [Reserved]

[64 FR 13339, Mar. 18, 1999, as amended at 75 FR 36515, June 28, 2010; 
75 FR 54276, Sept. 7, 2010; 76 FR 29619, May 20, 2011]



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

[[Page 333]]

and reexports of encryption software, like exports and reexports of 
encryption hardware, are controlled because of this functional capacity 
to encrypt information, 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) Licensing requirements. A 
license is required to export or reexport encryption items (``EI'') 
classified under 5A002.a.1, .a.2, .a.5, .a.6, .a.9, and .b; 5D002.a, 
.c.1 or .d for equipment and ``software'' controlled for EI reasons in 
ECCNs 5A002 or 5D002; or 5E002 for ``technology'' for the 
``development,'' ``production,'' or ``use'' of commodities or 
``software'' controlled for EI reasons in ECCNs 5A002 or 5D002 to all 
destinations, except Canada. Refer to part 740 of the EAR for license 
exceptions that apply to certain encryption items, and toSec. 772.1 of 
the EAR for definitions of encryption items and terms. Most encryption 
items may be exported under the provisions of License Exception ENC set 
forth inSec. 740.17 of the EAR. Before submitting a license 
application, please review License Exception ENC to determine whether 
this license exception is available for your item or transaction. For 
exports and reexports of encryption items that are not eligible for a 
license exception, exporters must submit an application to obtain 
authorization under a license or an Encryption Licensing Arrangement.
    (2) 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. Encryption Licensing Arrangements (ELAs) 
may be authorized for exports and reexports of unlimited quantities of 
encryption commodities and software to national or federal government 
bureaucratic agencies for civil use, and to state, provincial or local 
governments, in all destinations, except countries listed in Country 
Group E:1 of Supplement No. 1 to part 740. ELAs are valid for four years 
and may require post-export reporting or pre-shipment notification. 
Applicants seeking authorization for Encryption Licensing Arrangements 
must specify the sales territory and class of end-user on their license 
applications.

    Note to paragraph (a): Pursuant to Note 3 to Category 5 Part 2 of 
the Commerce Control List in Supplement No. 1 to Part 774, mass market 
encryption commodities and software may be released from ``EI'' and 
``NS'' controls by submitting an encryption registration in accord with 
Sec.  742.15(b) of the EAR. Once an encryption registration has been 
submitted to BIS and accepted in SNAP-R as indicated by the issuance of 
an Encryption Registration Number (ERN), then the commodities and 
software are classified under ECCNs 5A992 and 5D992 respectively and are 
no longer subject to ``EI'' and ``NS'' controls.

    (b) Encryption registration required, with classification request or 
self-classification report, for mass market encryption commodities, 
software and components with encryption exceeding 64 bits. To be 
eligible for export and reexport under this paragraph (b), encryption 
commodities, software and components must 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), and employ a key length 
greater than 64 bits for the symmetric algorithm (or, for commodities 
and software not implementing any symmetric algorithms, employing a key 
length greater than 768 bits for asymmetric algorithms or greater than 
128 bits for elliptic curve algorithms). Encryption items that are 
described in Sec.Sec. 740.17(b)(2) or (b)(3)(iii) of the EAR do not 
qualify for mass market treatment. This paragraph (b) does not authorize 
export or reexport to, or provision of any service in any country listed 
in Country Group E:1 in Supplement No. 1 to part 740 of the EAR. Exports 
and reexports authorized under paragraphs (b)(1) and (b)(3) of this 
section (including of mass market encryption software that would be 
considered publicly available underSec. 734.3(b)(3) of the EAR) must 
be supported by an encryption

[[Page 334]]

registration in accordance with paragraph (b)(7) of this section and the 
specific instructions of paragraph (r)(1) of Supplement No. 2 to part 
748 of the EAR. For items self-classified under paragraph (b)(1) of this 
section from June 25, 2010 through August 24, 2010, and for requests for 
classification under paragraph (b)(3) of this section submitted from 
June 25, 2010 through August 24, 2010, exporters have until August 24, 
2010 to submit their encryption registrations.In addition, paragraphs 
(b)(1) and (b)(3) of this section set forth requirements pertaining to 
the classification of mass market encryption commodities and software. 
See paragraph (d) of this section for grandfathering provisions 
applicable to certain encryption items reviewed and classified by BIS 
under this section prior to June 25, 2010. All classification requests, 
registrations, and reports submitted to BIS pursuant to this section for 
encryption items will be reviewed by the ENC Encryption Request 
Coordinator, Ft. Meade, MD. Only mass market encryption authorizations 
under this paragraph (b) to a company that has fulfilled the 
requirements of encryption registration (such as the producer of the 
item) authorize the export and reexport of the company's encryption 
items by all persons, wherever located, under this section. When an 
exporter or reexporter relies on the producer's self-classification 
(pursuant to the producer's encryption registration) or CCATS for a mass 
market encryption item, it is not required to submit an encryption 
registration, classification request or self-classification report.

    Note to introductory text of paragraph (b): Mass market encryption 
software that would be considered publicly available underSec. 
734.3(b)(3) of the EAR, and is authorized for export and reexport under 
this paragraph (b), remains subject to the EAR until the encryption 
registration and all applicable classification or self-classification 
requirements set forth in this section are fulfilled.

    (1) Immediate mass market authorization. Once an encryption 
registration is submitted to BIS in accordance with paragraph (b)(7) of 
this section and an Encryption Registration Number (ERN) has been 
issued, this paragraph (b)(1) authorizes the exports or reexports of the 
associated mass market encryption commodities and software classified 
under ECCNs 5A992 or 5D992 using the symbol ``NLR'', except any such 
commodities, software or components described in (b)(3) of this section, 
subject to submission a self-classification report in accordance with 
paragraph (c) of this section.
    (2) [Reserved]
    (3) Classification request required for specified mass market 
commodities, software and components. Thirty-days (30-days) after the 
submission of a classification request to BIS in accordance with 
paragraph (b)(7) of this section, this paragraph (b)(3) authorizes 
exports and reexports of the mass market items submitted for 
classification, using the symbol ``NLR'', provided the items qualify for 
mass market treatment as described in paragraph (b) of this section and 
are classified by BIS under ECCNs 5A992 or 5D992:

    Note to introductory text of paragraph (b)(3): Once a mass market 
classification request is accepted in SNAP-R, you may export and 
reexport the encryption commodity or software under License Exception 
ENC as ECCN 5A002 or 5D002, whichever is applicable, to any end-user 
located or headquartered in a country listed in supplement No. 3 to part 
740 as authorized bySec. 740.17(b) of the EAR, while the mass market 
classification request is pending review with BIS.

    (i) Specified mass market encryption components as follows:
    (A) Chips, chipsets, electronic assemblies and field programmable 
logic devices;
    (B) Cryptographic libraries, modules, development kits and toolkits, 
including for operating systems and cryptographic service providers 
(CSPs);
    (C) Application-specific hardware or software development kits 
implementing cryptography.
    (ii) Mass market encryption commodities, software and components 
that provide or perform ``non-standard cryptography'' as defined in part 
772 of the EAR.
    (iii) [Reserved]
    (iv) Mass market cryptographic enabling commodities and software. 
Commodities and software and components that themselves qualify for mass 
market treatment, and activate or enable cryptographic functionality in 
mass

[[Page 335]]

market encryption products which would otherwise remain disabled, where 
the product or cryptographic functionality is not otherwise described in 
paragraph (b)(3)(i) of this section.
    (4) Exclusions from mass market classification request, encryption 
registration and self-classification reporting requirements. The 
following commodities and software do not require a submission of an 
encryption registration, classification request or self-classification 
report to BIS for export or reexport as mass market products:
    (i) Short-range wireless encryption functions. Commodities and 
software that are not otherwise controlled in Category 5, but are 
nonetheless classified under ECCN 5A992 or 5D992 only because they 
incorporate components or software that provide short-range wireless 
encryption functions (e.g., with a nominal operating range not exceeding 
100 meters according to the manufacturer's specifications, designed to 
comply with the Institute of Electrical and Electronic Engineers (IEEE) 
802.11 wireless LAN standard or the IEEE 802.15.1 standard).

    Note to paragraph (b)(4)(i): An example of what this paragraph 
authorizes for export without classification, registration or self-
classification reporting is a laptop computer that without encryption 
would be classified under ECCN 4A994, and the Category 5, Part 2-
controlled components of the laptop only implement short-range wireless 
encryption functionality. On the other hand, this paragraph (b)(4)(i) 
does not apply to any commodities or software that would still be 
classified under an ECCN in Category 5 even if the short-range wireless 
encryption functionality were removed. For example, certain access 
points, gateways and bridges are classified under ECCN 5A991 without 
encryption functionality, and components for mobile communication 
equipment are classified under ECCN 5A991.g without encryption 
functionality. Such items, when implementing cryptographic functionality 
controlled by Category 5, Part 2 are not excluded from encryption 
classification, registration or self-classification reporting by this 
paragraph.

    (ii) Foreign products developed with or incorporating U.S.-origin 
encryption source code, components, or toolkits. Foreign products 
developed with or incorporating U.S.-origin encryption source code, 
components or toolkits that are subject to the EAR, provided that the 
U.S.-origin encryption items have previously been classified or 
registered and authorized by BIS and the cryptographic functionality has 
not been changed. Such products include foreign-developed products that 
are designed to operate with U.S. products through a cryptographic 
interface.
    (5) [Reserved]
    (6) 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 use with computers 
classified as ECCN 4A994 or designated as EAR99, 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); and portable or mobile civil 
telecommunications commodities and software (e.g., personal data 
assistants (PDAs), radios, or cellular products).
    (7) Mass market encryption registration and classification request 
procedures.
    (i) Submission requirements and instructions. To submit an 
encryption registration or classification request to BIS for certain 
mass market encryption items under this paragraph (b), you must submit 
an application to BIS in accordance with the procedures described in 
Sec.Sec. 748.1 and 748.3 of the EAR and the instructions in paragraph 
(r) of Supplement No. 2 to part 748 ``Unique Application and Submission 
Requirements'', along with other required information as follows:
    (A) Encryption registration in support of mass market encryption 
classification requests and self-classification reports. You must submit 
the applicable information as described in Supplement No. 5 to this part 
and follow the specific instructions of paragraph (r)(1) of Supplement 
No. 2 to part 748 of the EAR, if any of the following apply:

[[Page 336]]

    (1) This is your first time submitting an encryption classification 
request under paragraph (b)(3) of this section since August 24, 2010;
    (2) You are making a mass market encryption product eligible for 
export and reexport (including as defined for encryption software in 
Sec.  734.2(b)(9) of the EAR) under paragraph (b)(1) of this section for 
the first time since August 24, 2010; or
    (3) If you have not otherwise provided BIS the information described 
in Supplement No. 5 to this part during the current calendar year and 
your answers to the questions in Supplement No. 5 to this part have 
changed since the last time you provided answers to the questions.
    (B) Technical information submission requirements. In addition to 
the registration requirements of paragraph (b)(7)(i)(A) of this section, 
for all submissions of encryption classification requests for mass 
market products described under paragraph (b)(3) of this section, you 
must also provide BIS the applicable information described in paragraphs 
(a) through (d) of Supplement No. 6 to this part (Technical 
Questionnaire for Encryption Items). For mass market products authorized 
after the submission of an encryption registration under paragraph 
(b)(1) of this section, you may be required to provide BIS this 
information described in Supplement No. 6 to this part on an as-needed 
basis, upon request by BIS.
    (C) Changes in encryption functionality following a previous 
classification. A new mass market encryption classification request 
(under paragraph (b)(3) of this section) or self-classification (under 
paragraph (b)(1) of this section) is required if a change is made to the 
cryptographic functionality (e.g., algorithms) or other technical 
characteristics affecting mass market eligibility (e.g., performance 
enhancements to provide network infrastructure services, or 
customizations to end-user specifications) of the originally classified 
product. However, a new product classification request or self-
classification is not required when a change involves: the subsequent 
bundling, patches, upgrades or releases of a product; name changes; or 
changes to a previously reviewed encryption product where the change is 
limited to updates of encryption software components where the product 
is otherwise unchanged.
    (ii) Action by BIS.
    (A) Encryption registrations for mass market encryption items. Upon 
submission to BIS of an encryption registration in accordance with 
paragraph (b)(7)(i) of this section and acceptance of the application by 
SNAP-R, BIS will issue the Encryption Registration Number (ERN) via 
SNAP-R, which will constitute authorization under this paragraph (b). 
Immediately upon receiving your ERN from BIS, you may export and 
reexport mass market encryption products described in paragraph (b)(1) 
of this section using the symbol ``NLR''.
    (B) For mass market items requiring classification by BIS under 
paragraph (b)(3) of this section.
    (1) For mass market encryption classifications that require a thirty 
(30)-day waiting period, if BIS has not, within thirty (30) days from 
acceptance in SNAP-R of your complete classification request, informed 
you that your item is not authorized as a mass market item, you may 
export and reexport under the applicable provisions of this paragraph 
(b). 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 classified under ECCN 5A002, 5B002, 5D002 or 5E002, BIS 
will notify you and will review your items for eligibility under License 
Exception ENC (seeSec. 740.17 of the EAR for review and reporting 
requirements for encryption items under License Exception ENC).
    (2) Upon completion of its review, BIS will issue a Commodity 
Classification Automated Tracking System (CCATS) to you.
    (3) Hold Without Action (HWA) for mass market classification 
requests. BIS may hold your mass market classification request without 
action if necessary to obtain additional information or for any other 
reason necessary to ensure an accurate classification. Time on such 
``hold without action'' status shall not be counted towards fulfilling 
the thirty-day (30-day) processing period specified in this paragraph.

[[Page 337]]

    (C) BIS may require you to supply additional relevant technical 
information about your encryption item(s) or information that pertains 
to their eligibility as mass market products at any time, before or 
after the expiration of the thirty-day (30-day) processing period 
specified in this paragraph and in paragraph (b)(3) of this section, or 
after any registrations as required in paragraph (b)(1) of this section. 
If you do not supply such information within 14 days after receiving a 
request from BIS, BIS may return your classification request without 
action or otherwise suspend or revoke your eligibility to use mass 
market authorization for that item. At your request, BIS may grant you 
up to an additional 14 days to provide the requested information. Any 
request for such an additional number of days must be made prior to the 
date by which the information was otherwise due to be provided to BIS 
and may be approved if BIS concludes that additional time is necessary.
    (c) Self-classification reporting for certain encryption 
commodities, software and components. This paragraph (c) sets forth 
requirements for self-classification reporting to BIS and the ENC 
Encryption Request Coordinator (Ft. Meade, MD) of encryption 
commodities, software and components exported or reexported pursuant to 
encryption registration under Sec.Sec. 740.17(b)(1) or 742.15(b)(1) of 
the EAR. Reporting is required, effective June 25, 2010.
    (1) When to report. Your self-classification report for applicable 
encryption commodities, software and components exported or reexported 
during a calendar year (January 1 through December 31) must be received 
by BIS and the ENC Encryption Request Coordinator no later than February 
1 the following year.
    (2) How to report. Encryption self-classification reports must be 
sent to BIS and the ENC Encryption Request Coordinator via e-mail or 
regular mail. In your submission, specify the export timeframe that your 
report spans and identify points of contact to whom questions or other 
inquiries pertaining to the report should be directed. Follow these 
instructions for your submissions:
    (i) Submissions via e-mail. Submit your encryption self-
classification report electronically to BIS at [email protected] 
and to the ENC Encryption Request Coordinator at [email protected], as an 
attachment to an e-mail. Identify your e-mail with subject ``Self-
classification report for ERN 
R'', using your 
most recent ERN in the subject line (so as to correspond your encryption 
self-classification report to your most recent encryption registration 
ERN).
    (ii) Submissions on disks and CDs. The self-classification report 
may be sent to the following addresses, in lieu of e-mail:
    (A) Department of Commerce, Bureau of Industry and Security, Office 
of National Security and Technology Transfer Controls, 14th Street and 
Pennsylvania Ave., NW., Room 2705, Washington, DC 20230, Attn: 
Encryption Reports, and
    (B) Attn: ENC Encryption Request Coordinator, 9800 Savage Road, 
Suite 6940, Ft. Meade, MD 20755-6000.
    (3) Information to report. Your encryption self-classification 
report must include the information described in paragraph (a) of 
Supplement No. 8 to this part for each applicable encryption commodity, 
software and component exported or reexported pursuant to an encryption 
registration under Sec.Sec. 740.17(b)(1) or 742.15(b)(1) of the EAR. 
If no information has changed since the previously submitted report, you 
must either send an e-mail stating that nothing has changed since the 
previous report or submit a copy of the previously submitted report.
    (4) File format requirements. The information described in paragraph 
(a) of Supplement No. 8 to this part must be provided to BIS and the ENC 
Encryption Request Coordinator in tabular or spreadsheet form, as an 
electronic file in comma separated values format (.csv) adhering to the 
specifications set forth in paragraph (b) of Supplement No. 8 to this 
part.
    (d) Grandfathering. For mass market encryption commodities, software 
and components described in (or otherwise meeting the specifications of) 
paragraph (b) of this section effective June 25, 2010, such items 
reviewed and classified by BIS as mass market products

[[Page 338]]

prior to June 25, 2010 are authorized for export and reexport under 
paragraph (b) of this section using the CCATS previously issued by BIS, 
without any encryption registration (i.e., the information described in 
Supplement No. 5 to this part), new classification by BIS, or self-
classification reporting (i.e., the information described in Supplement 
No. 8 to this part), provided the cryptographic functionality of the 
item has not changed. See paragraph (b)(7)(i)(C) of this section 
regarding changes in encryption functionality following a previous 
classification.

[73 FR 57507, Oct. 3, 2008, as amended at 75 FR 36494, June 25, 2010; 75 
FR 43821, July 27, 2010; 76 FR 1063, Jan. 7, 2011; 76 FR 29619, May 20, 
2011]



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 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 thisSec. 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 (seeSec. 748.14(f) of the EAR).

[64 FR 17973, Apr. 13, 1999]

[[Page 339]]



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 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 inSec. 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 1C351. A license is required for CW reasons to 
export or reexport Schedule 1 chemicals controlled under ECCN 1C351.d.11 
or d.12 to all destinations including Canada. CW applies to 1C351.d.11 
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.12 for saxitoxin identified by C.A.S. 
35523-89-8. (Note that the advance notification procedures and 
annual reporting requirements described inSec. 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 inSec. 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

[[Page 340]]

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 to export Schedule 1 
Chemicals controlled under ECCN 1C351.d.11 or .d.12 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 controlled under ECCN 1C351.d.11 or .d.12 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 
controlled under ECCN 1C351.d.11 or .d.12 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, as amended at 69 FR 42865, July 19, 2004; 76 
FR 56101, Sept. 12, 2011]

[[Page 341]]



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 EAR99) that are controlled 
for anti-terrorism reasons require a license for export or reexport to 
North Korea. This includes all items 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, 0A988, 0A999, 0B986, 0B999, 0D999, 
1A999, 1B999, 1C995, 1C999, 1D999, 2A994, 2A999, 2B999, 2D994, 2E994, 
3A999, and 6A999. See also part 746 of the EAR.
    (2) The Secretary of State has designated North Korea as a country 
whose Government has repeatedly provided support for acts of 
international terrorism.
    (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. 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. (See Supplement No. 2 to part 742 for more 
information on items controlled under sections 6(a) and 6(j) of the EAA 
andSec. 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. (Not 
including parts and components for safety-of-flight, which will be 
reviewed on a case-by-case basis in accordance with paragraph (b)(2) of 
this section).
    (vii) Cryptographic, cryptoanalytic, and crypto-logic items 
controlled any destination. These are items that contain an NS Column 1, 
NS Column 2, AT

[[Page 342]]

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 an Adjusted Peak Performance (APP) 
exceeding 0.0004 Weighted TeraFLOPS (WT).
    (xix) Microprocessors with a processing speed of 0.5 GFLOPS or above 
.
    (xx) Ammonium nitrate, including certain fertilizers containing 
ammonium nitrate, controlled under ECCN 1C997.
    (xxi) Technology for the production of Chemical Weapons Convention 
(CWC) Schedule 2 and 3 Chemicals controlled under ECCN 1E355.
    (xxii) Concealed object detection equipment controlled under ECCN 
2A984.
    (xxiii) ``Software'' (ECCN 2D984) ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984.
    (xxiv) ``Technology'' (ECCN 2E984) ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984, or the ``development'' of ``software'' 
controlled by 2D984.
    (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. Applications to export or 
reexport humanitarian items intended for the benefit of the North Korean 
people; items in support of United Nations humanitarian efforts; and 
agricultural commodities and medical devices will generally be approved.
    (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; 70 FR 54628, Sept. 16, 2005; 71 FR 20885, 
Apr. 24, 2006; 72 FR 3725, Jan. 26, 2007; 72 FR 62532, Nov. 5, 2007; 75 
FR 14340, Mar. 25, 2010]



  Sec. 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

[[Page 343]]

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, 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, phosphorus oxychloride, and thiodiglycol is February 
22, 1989.
    (5) The contract sanctity date for exports to Iran 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 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 or 
Syria, paragraph (5) of this Supplement applies.
    (8) The contract sanctity date for exports to all destinations 
(except Iran 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), phosphorus oxychloride, phosphorous trichloride, 
thiodiglycol, thionyl chloride triethanolamine, and trimethyl phosphite. 
(See also paragraphs (6) and (7) of this Supplement.) For exports to 
Iran 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 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; 69 
FR 42865, July 19, 2004; 71 FR 51718, Aug. 31, 2006]



Sec. Supplement No. 2 to Part 742--Anti-Terrorism Controls: 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, North Korea, Sudan and Syria as countries whose

[[Page 344]]

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, 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 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 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; and 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 Syria, Sudan, and North Korea 
are generally described in Sec.Sec. 742.9, 742.10, and 742.19 of this 
part, respectively. This Supplement provides guidance on licensing 
policies for North Korea, Syria, and Sudan and related contract sanctity 
dates that may be available for transactions benefiting from pre-
existing contracts involving Syria, and Sudan.
    (1) All items subject to national security controls.
    (i) [Reserved]
    (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 North Korea, 
Syria, or Sudan of these items will generally be denied. See Supplement 
No. 1 to part 742 for contract sanctity dates for 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 North Korea, Syria, or Sudan will 
generally be denied. Contract sanctity provisions for 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) [Reserved]
    (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.

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    (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) [Reserved]
    (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) [Reserved]
    (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) [Reserved].
    (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) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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).

[[Page 346]]

    (iv) North Korea. Applications for all end-users in North Korea of 
any such equipment will generally be denied.
    (11) Navigation, direction finding, and radar equipment.
    (i) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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.
    (14) Acoustic underwater detection equipment.
    (i) [Reserved]
    (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)

[[Page 347]]

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 generator.
    (i) [Reserved]
    (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) [Reserved]
    (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 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) [Reserved]
    (ii) Syria. A license is required for all marine and submarine 
engines subject to national security controls to all end-users. 
Applications for military end-users or for military end-uses in Syria of 
these items will generally be denied. Applications for non-military end-
users or for non-military end-uses in Syria will be considered on a 
case-by-case basis. Contract sanctity date for marine and submarine 
engines that were subject to national security controls on August 28, 
1991: see paragraph (c)(1)(ii) of this Supplement.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (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) [Reserved]
    (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) [Reserved]
    (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

[[Page 348]]

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) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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 an APP of .00001 WT 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) [Reserved]
    (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 an APP exceeding 0.0004 WT: 
Applications for all end-users will generally be denied.
    (B) Computers with an APP equal to or less than 0.0004 WT: 
Applications for military end-users or for military end-uses, or

[[Page 349]]

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; (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) [Reserved]
    (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) [Reserved]
    (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 processing speed of 0.5 GFLOPS 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 Syria, Sudan, or 
North Korea, a license is required for all such equipment described in 
ECCNs 3B001 and 3B991.
    (i) [Reserved]
    (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).
    (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 and 
manufacture of integrated circuits.
    (i) [Reserved]
    (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.

[[Page 350]]

    (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) [Reserved]
    (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) [Reserved]
    (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 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) [Reserved]
    (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) [Reserved]
    (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.

[[Page 351]]

    (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) [Reserved]
    (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.
    (34) High strength organic and inorganic fibers (kevlar) described 
in ECCN 1C210.
    (i) [Reserved]
    (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) [Reserved]
    (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) [Reserved]

[[Page 352]]

    (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.
    (37) Manual dimensional inspection machines described in ECCN 2B996.
    (i) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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 April 3, 2003 under ECCN 2A993.
    (A) [Reserved]
    (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.

[[Page 353]]

    (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) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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) [Reserved]
    (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]
    (46) Concealed object detection equipment described in ECCN 2A984.
    (i) Syria. Applications for all end-users in Syria of these 
commodities will generally be denied. Contract sanctity date: March 19, 
2010.
    (ii) Sudan. Applications for all end-users in Sudan of these 
commodities will generally be denied. Contract sanctity date: March 19, 
2010.
    (iii) North Korea. Applications for all end-users in North Korea of 
these commodities will generally be denied. Contract sanctity date: 
March 19, 2010.
    (47) ``Software'' described in ECCN 2D984 ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984.
    (i) Syria. Applications for all end-users in Syria of these software 
will generally be denied. Contract sanctity date: March 19, 2010.
    (ii) Sudan. Applications for all end-users in Sudan of these 
software will generally be denied. Contract sanctity date: March 19, 
2010.
    (iii) North Korea. Applications for all end-users in North Korea of 
these software will generally be denied. Contract sanctity date: March 
19, 2010.
    (48) ``Technology'' described in ECCN 2E984 ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment controlled by 2A984, or the ``development'' of ``software'' 
controlled by 2D984.
    (i) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: March 19, 2010.
    (ii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date: March 19, 2010.

[[Page 354]]

    (iii) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied. Contract sanctity date: March 19, 
2010.

[69 FR 23630, Apr. 29, 2004, as amended at 69 FR 46076, July 30, 2004; 
70 FR 14391, Mar. 22, 2005; 71 FR 20885, Apr. 24, 2006; 71 FR 51718, 
Aug. 31, 2006; 72 FR 20223, Apr. 24, 2007; 72 FR 62532, Nov. 5, 2007; 74 
FR 2357, Jan. 15, 2009; 75 FR 14340, Mar. 25, 2010]



             Sec. Supplement Nos. 3-4 to Part 742 [Reserved]



       Sec. Supplement No. 5 to Part 742--Encryption Registration

    Certain classification requests and self-classification reports for 
encryption items must be supported by an encryption registration, i.e., 
the information as described in this Supplement, submitted as a support 
documentation attachment to an application in accordance with the 
procedures described in Sec.Sec. 740.17(b), 740.17(d), 742.15(b), 
748.1, 748.3 and Supplement No. 2 to part 748 of the EAR.
    (1) Point of Contact Information
    (a) Contact Person
    (b) Telephone Number
    (c) Fax Number
    (d) E-mail address
    (e) Mailing Address
    (2) Company Overview (approximately 100 words).
    (3) Identify which of the following categories apply to your 
company's technology/families of products:
    (a) Wireless
    (i) 3G cellular
    (ii) 4G cellular/WiMax/LTE
    (iii) Short-range wireless/WLAN
    (iv) Satellite
    (v) Radios
    (vi) Mobile communications, n.e.s.
    (b) Mobile applications
    (c) Computing platforms
    (d) Multimedia over IP
    (e) Trusted computing
    (f) Network infrastructure
    (g) Link layer encryption
    (h) Smartcards or other identity management
    (i) Computer or network forensics
    (j) Software
    (i) Operating systems
    (ii) Applications
    (k) Toolkits/ASICs/components
    (l) Information security including secure storage
    (m) Gaming
    (n) Cryptanalytic tools
    (o) ``Open cryptographic interface'' (or other support for user-
supplied or non-standard cryptography)
    (p) Other (identify any not listed above)
    (q) Not Applicable (Not a producer of encryption or information 
technology items)
    (4) Describe whether the products incorporate or use proprietary, 
unpublished or non-standard cryptographic functionality, including 
encryption algorithms or protocols that have not been adopted or 
approved by a duly recognized international standards body. (If unsure, 
please explain.)
    (5) Will your company be exporting ``encryption source code''?
    (6) Do the products incorporate encryption components produced or 
furnished by non-U.S. sources or vendors? (If unsure, please explain.)
    (7) With respect to your company's encryption products, are any of 
them manufactured outside the United States? If yes, provide 
manufacturing locations. (Insert ``not applicable'', if you are not the 
principal producer of encryption products.)

[75 FR 36497, June 25, 2010]



     Sec. Supplement No. 6 to Part 742--Technical Questionnaire for 
                            Encryption Items

    (a) For all encryption items:
    (1) State the name(s) of each product being submitted for 
classification or other consideration (as a result of a request by BIS) 
and provide a brief non-technical description of the type of product 
(e.g., routers, disk drives, cell phones, and chips) being submitted, 
and provide brochures, data sheets, technical specifications or other 
information that describes the item(s).
    (2) Indicate whether there have been any prior classifications or 
registrations of the product(s), if they are applicable to the current 
submission. For products with minor changes in encryption functionality, 
you must include a cover sheet with complete reference to the previous 
review (Commodity Classification Automated Tracking System (CCATS) 
number, Encryption Registration Number (ERN), Export Control 
Classification Number (ECCN), authorization paragraph) along with a 
clear description of the changes.
    (3) Describe how encryption is used in the product and the 
categories of encrypted data (e.g., stored data, communications, 
management data, and internal data).
    (4) For `mass market' encryption products, describe specifically to 
whom and how the product is being marketed and state how this method of 
marketing and other relevant information (e.g., cost of product and 
volume of sales) are described by the Cryptography Note (Note 3 to 
Category 5, Part 2).
    (5) Is any ``encryption source code'' being provided (shipped or 
bundled) as part of this offering? If yes, is this source code publicly 
available source code, unchanged from the code obtained from an open 
source Web site, or is it proprietary ``encryption source code?''

[[Page 355]]

    (b) For classification requests and other submissions for an 
encryption 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, including 
relevant parameters, inputs and settings. 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 all communication protocols (e.g., X.25, Telnet, TCP, IEEE 
802.11, IEEE 802.16, SIP * * *) and cryptographic protocols and methods 
(e.g., SSL, TLS, SSH, IPSEC, IKE, SRTP, ECC, MD5, SHA, X.509, PKCS 
standards * * *) that are supported and describe how they are used.
    (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 the cryptographic functionality that is provided by 
third-party hardware or software encryption components (if any). 
Identify the manufacturers of the hardware or software components, 
including specific part numbers and version information as needed to 
describe the product. Describe whether the encryption software 
components (if any) are statically or dynamically linked.
    (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) Describe whether the product meets any of theSec. 
740.17(b)(2) criteria. Provide specific data for each of the parameters 
listed, as applicable (e.g., maximum aggregate encrypted user data 
throughput, maximum number of concurrent encrypted channels, and 
operating range for wireless products).
    (12) For products which incorporate an ``open cryptographic 
interface'' as defined in part 772 of the EAR, describe the 
cryptographic interface.
    (c) For classification requests for hardware or software 
``encryption components'' other than source code (i.e., chips, toolkits, 
executable or linkable modules intended for use in or production of 
another encryption item) 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.
    (d) For classification requests for ``encryption source code'' 
provide the following information:
    (1) If applicable, reference the executable (object code) product 
that was previously classified by BIS or included in an encryption 
registration to BIS;
    (2) Include whether the source code has been modified, and the 
technical details on how the source code was modified; and
    (3) Upon request, include a copy of the sections of the source code 
that contain the encryption algorithm, key management routines and their 
related calls.

[75 FR 36497, June 25, 2010]



 Sec. Supplement No. 7 to Part 742--Description of Major Weapons Systems

    (1) Battle Tanks: Tracked or wheeled self-propelled armored fighting 
vehicles with high cross-country mobility and a high-level of self 
protection, weighing at least 16.5 metric tons unladen weight, with a 
high muzzle velocity direct fire main gun of at least 75 millimeters 
caliber.
    (2) Armored Combat Vehicles: Tracked, semi-tracked, or wheeled self-
propelled vehicles, with armored protection and cross-country 
capability, either designed and equipped to transport a squad of four or 
more infantrymen, or armed with an integral or organic weapon of a least 
12.5 millimeters caliber or a missile launcher.
    (3) Large-Caliber Artillery Systems: Guns, howitzers, artillery 
pieces combining the characteristics of a gun or a howitzer, mortars or 
multiple-launch rocket systems, capable of engaging surface targets by 
delivering primarily indirect fire, with a caliber of 75 millimeters and 
above.
    (4) Combat Aircraft: Fixed-wing or variable-geometry wing aircraft 
designed, equipped, or modified to engage targets by employing guided 
missiles, unguided rockets, bombs, guns, cannons, or other weapons of 
destruction, including versions of these aircraft which perform 
specialized electronic

[[Page 356]]

warfare, suppression of air defense or reconnaissance missions. The term 
``combat aircraft'' does not include primary trainer aircraft, unless 
designed, equipped, or modified as described above.
    (5) Attack Helicopters: Rotary-wing aircraft designed, equipped or 
modified to engage targets by employing guided or unguided anti-armor, 
air-to-surface, air-to-subsurface, or air-to-air weapons and equipped 
with an integrated fire control and aiming system for these weapons, 
including versions of these aircraft that perform specialized 
reconnaissance or electronic warfare missions.
    (6) Warships: Vessels or submarines armed and equipped for military 
use with a standard displacement of 750 metric tons or above, and those 
with a standard displacement of less than 750 metric tons that are 
equipped for launching missiles with a range of at least 25 kilometers 
or torpedoes with a similar range.
    (7) Missiles and Missile Launchers:
    (a) Guided or unguided rockets, or ballistic, or cruise missiles 
capable of delivering a warhead or weapon of destruction to a range of 
at least 25 kilometers, and those items that are designed or modified 
specifically for launching such missiles or rockets, if not covered by 
systems identified in paragraphs (1) through (6) of this Supplement. For 
purposes of this rule, systems in this paragraph include remotely 
piloted vehicles with the characteristics for missiles as defined in 
this paragraph but do not include ground-to-air missiles;
    (b) Man-Portable Air-Defense Systems (MANPADS); or
    (c) Unmanned Aerial Vehicles (UAVs) of any type, including sensors 
for guidance and control of these systems, except model airplanes.
    (8) Offensive Space Weapons: Systems or capabilities that can deny 
freedom of action in space for the United States and its allies or 
hinder the United States and its allies from denying an adversary the 
ability to take action in space. This includes systems such as anti-
satellite missiles, or other systems designed to defeat or destroy 
assets in space.
    (9) Command, Control, Communications, Computer, Intelligence, 
Surveillance, and Reconnaissance (C4ISR): Systems that support military 
commanders in the exercise of authority and direction over assigned 
forces across the range of military operations; collect, process, 
integrate, analyze, evaluate, or interpret information concerning 
foreign countries or areas; systematically observe aerospace, surface or 
subsurface areas, places, persons, or things by visual, aural, 
electronic, photographic, or other means; and obtain, by visual 
observation or other detection methods, information about the activities 
and resources of an enemy or potential enemy, or secure data concerning 
the meteorological, hydrographic, or geographic characteristics of a 
particular area, including Undersea communications. Also includes sensor 
technologies.
    (10) Precision Guided Munitions (PGMs), including ``smart bombs'': 
Weapons used in precision bombing missions such as specially designed 
weapons, or bombs fitted with kits to allow them to be guided to their 
target.
    (11) Night vision equipment: Any electro-optical device that is used 
to detect visible and infrared energy and to provide an image. This 
includes night vision goggles, forward-looking infrared systems, thermal 
sights, and low-light level systems that are night vision devices, as 
well as infrared focal plane array detectors and cameras specifically 
designed, developed, modified, or configured for military use; image 
intensification and other night sighting equipment or systems 
specifically designed, modified or configured for military use; second 
generation and above military image intensification tubes specifically 
designed, developed, modified, or configured for military use, and 
infrared, visible and ultraviolet devices specifically designed, 
developed, modified, or configured for military application.

[72 FR 33656, June 19, 2007, as amended at 73 FR 58037, Oct. 6, 2008]



   Sec. Supplement No. 8 to Part 742--Self-Classification Report for 
                            Encryption Items

    This supplement provides certain instructions and requirements for 
self-classification reporting to BIS and the ENC Encryption Request 
Coordinator (Ft. Meade, MD) of encryption commodities, software and 
components exported or reexported pursuant to encryption registration 
under License Exception ENC (Sec.  740.17(b)(1) only) or ``mass market'' 
(Sec.  742.15(b)(1) only) provisions of the EAR. SeeSec. 742.15(c) of 
the EAR for additional instructions and requirements pertaining to this 
supplement, including when to report and how to report.
    (a) Information to report. The following information is required in 
the file format as described in paragraph (b) of this supplement, for 
each encryption item subject to the requirements of this supplement and 
Sec.Sec. 740.17(b)(1) and 742.15(b)(1) of the EAR:
    (1) Name of product (50 characters or less).
    (2) Model/series/part number (50 characters or less.) If necessary, 
enter `NONE' or `N/A'.
    (3) Primary manufacturer (50 characters or less). Enter `SELF' if 
you are the primary manufacturer of the item. If there are multiple 
manufacturers for the item but none is clearly primary, either enter the 
name of one of the manufacturers or else enter `MULTIPLE'. If necessary, 
enter `NONE' or `N/A'.

[[Page 357]]

    (4) Export Control Classification Number (ECCN), selected from one 
of the following:
    (i) 5A002
    (ii) 5B002
    (iii) 5D002
    (iv) 5A992
    (v) 5D992
    (5) Encryption authorization type identifier, selected from one of 
the following, which denote eligibility under License Exception ENC 
(Sec.  740.17(b)(1), only) or as `mass market' (Sec.  742.15(b)(1), 
only):
    (i) ENC
    (ii) MMKT
    (6) Item type descriptor, selected from one of the following:
    (i) Access point
    (ii) Cellular
    (iii) Computer
    (iv) Computer forensics
    (v) Cryptographic accelerator
    (vi) Data backup and recovery
    (vii) Database
    (viii) Disk/drive encryption
    (ix) Distributed computing
    (x) E-mail communications
    (xi) Fax communications
    (xii) File encryption
    (xiii) Firewall
    (xiv) Gateway
    (xv) Intrusion detection
    (xvi) Key exchange
    (xvii) Key management
    (xviii) Key storage
    (xix) Link encryption
    (xx) Local area networking (LAN)
    (xxi) Metropolitan area networking (MAN)
    (xxii) Modem
    (xxiii) Network convergence or infrastructure n.e.s.
    (xxiv) Network forensics
    (xxv) Network intelligence
    (xxvi) Network or systems management (OAM/OAM&P)
    (xxvii) Network security monitoring
    (xxviii) Network vulnerability and penetration testing
    (xxix) Operating system
    (xxx) Optical networking
    (xxxi) Radio communications
    (xxxii) Router
    (xxxiii) Satellite communications
    (xxxiv) Short-range wireless n.e.s.
    (xxxv) Storage area networking (SAN)
    (xxxvi) 3G/4G/LTE/WiMAX
    (xxxvii) Trusted computing
    (xxxviii) Videoconferencing
    (xxxix) Virtual private networking (VPN)
    (xl) Voice communications n.e.s.
    (xli) Voice over Internet protocol (VoIP)
    (xlii) Wide area networking (WAN)
    (xliii) Wireless local area networking (WLAN)
    (xliv) Wireless personal area networking (WPAN)
    (xlv) Commodities n.e.s.
    (xlvi) Components n.e.s.
    (xlvii) Software n.e.s.
    (xlviii) Test equipment n.e.s.
    (xlix) OTHER
    (b) File format requirements. (1) The information described in 
paragraph (a) of this supplement must be provided in tabular or 
spreadsheet form, as an electronic file in comma separated values format 
(.csv), only. No file formats other than .csv will be accepted, as your 
encryption self-classification report must be directly convertible to 
tabular or spreadsheet format, where each row (and all entries within a 
row) properly correspond to the appropriate encryption item.

    Note to paragraph (b)(1): An encryption self-classification report 
data table created and stored in spreadsheet format (e.g., file 
extension .xls, .numbers, .qpw, .wb*, .wrk, and .wks) can be converted 
and saved into a comma delimited file format directly from the 
spreadsheet program. This .csv file is then ready for submission.

    (2) Each line of your encryption self-classification report (.csv 
file) must consist of six entries as further described in this 
supplement.
    (3) The first line of the .csv file must consist of the following 
six entries (i.e., match the following) without alteration or variation: 
PRODUCT NAME, MODEL NUMBER, MANUFACTURER, ECCN, AUTHORIZATION TYPE, ITEM 
TYPE.

    Note to paragraph (b)(3): These first six entries (i.e., first line) 
of a encryption self-classification report in .csv format correspond to 
the six column headers (i.e., first row) of a spreadsheet data file.

    (4) Each subsequent line of the .csv file must correspond to a 
single encryption item (or a distinguished series of products) as 
described in paragraph (c) of this supplement.
    (5) Each line must consist of six entries as described in paragraph 
(a)(1), (a)(2), (a)(3), (a)(4), (a)(5), and (a)(6) of this supplement. 
No entries may be left blank. Each entry must be separated by a comma 
(,). Certain additional instructions are as follows:
    (i) Line entries (a)(1) (`PRODUCT NAME') and (a)(4) (`ECCN') must be 
completed with relevant information.
    (ii) For entries (a)(2) (`MODEL NUMBER') and (a)(3) 
(`MANUFACTURER'), if these entries do not apply to your item or 
situation you may enter `NONE' or `N/A'.
    (iii) For entries (a)(5) (`AUTHORIZATION TYPE'), if none of the 
provided choices apply to your situation, you may enter `OTHER'.
    (6) Because of .csv file format requirements, the only permitted use 
of a comma is as the necessary separator between line entries. You may 
not use a comma for any other reason in your encryption self-
classification report.
    (c) Other instructions. (1) The information provided in accordance 
with this supplement

[[Page 358]]

and Sec.Sec. 740.17(b)(1), 742.15(b)(1) and 742.15(c) of the EAR must 
identify product offerings as they are typically distinguished in 
inventory, catalogs, marketing brochures and other promotional 
materials.
    (2) For families of products where all the information described in 
paragraph (a) of this supplement is identical except for the model/
series/part number (entry (a)(2)), you may list and describe these 
products with a single line in your .csv file using an appropriate 
model/series/part number identifier (e.g., `300' or `3xx') for entry 
(a)(2), provided each line in your .csv file corresponds to a single 
product series (or product type) within an overall product family.
    (3) For example, if Company A produces, markets and sells both a 
`100' (`1xx') and a `300' (`3xx') series of product, in its encryption 
self-classification report (.csv file) Company A must list the `100' 
product series in one line (with entry (a)(2) completed as `100' or 
`1xx') and the `300' product series in another line (with entry (a)(2) 
completed as `300' or `3xx'), even if the other required information is 
common to all products in the `100' and `300' series.

[75 FR 36498, June 25, 2010]



PART 743_SPECIAL REPORTING--Table of Contents



Sec.
743.1 Wassenaar Arrangement.
743.2 High performance computers: Post shipment verification reporting.
743.3 Thermal imaging camera reporting.

Supplement No. 1 to Part 743--Wassenaar Arrangement Participating States

    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 15, 
2012, 77 FR 49699 (August 16, 2012).



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 (seeSec. 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, 
APP, 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).
    (3) Exports authorized under the Validated End-User authorization 
(seeSec. 748.15 of the EAR).
    (4) Exports authorized under License Exception STA (SeeSec. 740.20 
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, are for 
``software'', other than that controlled by 2D002, specially designed 
for the ``development'' or ``production'' of equipment as follows:
    a. Equipment controlled by 2B001.a or .b (changing 6[micro]m to 
5.1[micro]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[micro]m along any linear axis'' to the existing text for 
2B001.b.2)(See Technical Notes 5 and 6 to Product Group B in Category 2 
of the Commerce Control List for acceptable positioning accuracy 
measurements.);
    b. Deep-hole-drilling machines controlled by 2B001.f.; or
    c. ``Numerically controlled'' or manual machine tools controlled by 
2B003.


[[Page 359]]


    Reports for 2E001, are for ``technology'' according to the General 
Technology Note for the ``development'' of ``software'' as described in 
this paragraph for 2D001, or for equipment as follows:
    a. Equipment controlled by 2B001.a, .b (changing 6[micro]m to 
5.1[micro]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[micro]m along any linear axis'' to the existing text for 
2B001.b.2) (See Technical Notes 5 and 6 to Product Group B in Category 2 
of the Commerce Control List for acceptable positioning accuracy 
measurements.);
    b. Deep-hole-drilling machines controlled by 2B001.f.; or
    c. ``Numerically controlled'' or manual machine tools controlled by 
2B003.
    Reports for 2E002, are for ``technology'' according to the General 
Technology Note for the ``production'' of equipment as follows:
    a. Equipment controlled by 2B001.a or .b (changing 6[micro]m to 
5.1[micro]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[micro]m along any linear axis'' to the existing text for 
2B001.b.2)(See Technical Notes 5 and 6 to Product Group B in Category 2 
of the Commerce Control List for acceptable positioning accuracy 
measurements.);
    b. Deep-hole-drilling machines controlled by 2B001.f.; or
    c. ``Numerically controlled'' or manual machine tools controlled by 
2B003.

    (iii) Category 3: 3A002.g.1, 3D001 for ``development'' or 
``production'' of 3A002.g.1, and 3E001 for ``development'' or 
``production'' of 3A002.g.1;
    (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; 5B001.a (items specially designed for 
5A001.b.3, b.5 or .h); 5D001.a (specially designed for the 
``development'' or ``production'' of equipment, function, or features in 
5A001.b.3, b.5 or .h) and 5D001.b (specially designed or modified to 
support ``technology'' under 5E001.a as described in this paragraph); 
and 5E001.a (for the ``development'' or ``production'' of equipment, 
functions or features specified by 5A001.b.3, b.5 or .h or ``software'' 
in 5D001.a or 5D001.b as described in this paragraph);
    (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 
[micro]Pa at 1 m) for equipment with an operating frequency in the band 
from 5 kHz to 10 kHz inclusive'' to the existing text in 6A001.a.1.b.1), 
and 6A001.a.2.d; 6A002.a.1.a, 6A002.a.1.b, 6A002.a.1.c, 6A002.a.1.d, 
6A002.a.2.a (changing 350 [micro]A/lm to 700 [micro]A/lm in 
6A002.a.2.a.3.a), 6A002.a.2.b, 6A002.a.3, 6A002.b, 6A002.c 
(incorporating image intensifier tubes listed in 6A002.a.2.a (having 
characteristics described in this paragraph) or 6A002.a.2.b, ``focal 
plane arrays'' listed in 6A002.a.3 (having characteristics described in 
Note 1 to this paragraph) or solid-state detectors having the 
characteristics listed in 6A002.a.1); 6A003.b.3 (incorporating 
6A002.a.2.a (having characteristics described in this paragraph) or 
6A002.a.2.b), 6A003.b.4 (incorporating ``focal plane arrays'' listed in 
6A002.a.3 to 6A002.a.3.e, 6A002.a.3.f, or 6A002.a.3.g, having 
characteristics described in this paragraph), 6A003.b.5; 6A004.c and d; 
6A006.a.1, 6A006.a.2 (having a 'sensitivity' lower (better) than 2pT rms 
per square root Hz), 6A006.c.1, 6A006.d (certain items only; see Note to 
this paragraph), 6A006.e (incorporating magnetometers specified in 
6A006.a.1 or 6A006.a.2, as described by this paragraph); 6A008.d, .h, 
and .k; 6B008, 6D001 (for 6A004.c and .d, 6A008.d, .h, and .k, and 
6B008); 6D003.a; 6E001 (for equipment and software listed in this 
paragraph); and 6E002 (for equipment specified by 6A or 6B in this 
paragraph);

    Notes to paragraph (c)(1)(vi):
    Note 1: Reports for 6A002.a.3 exclude the following ``focal plane 
arrays'':
    a. Platinum Silicide (PiSi) ``focal plane arrays'' having less than 
10,000 elements;
    b. Iridium Silicide (IrSi) ``focal plane arrays'';
    c. Indium Antimonide (InSb) or Lead Selenide (PbSe) ``focal plane 
arrays'' having less than 256 elements;
    d. Indium Arsenide (InAs) ``focal plane arrays'';
    e. Lead Sulphide (PbS) ``focal plane arrays'';
    f. Indium Gallium Arsenide (InGaAs) ``focal plane arrays'';
    g. Mercury Cadmium Telluride (HgCdTe) ``focal plane arrays'', as 
follows:
    1. 'Scanning Arrays' having any of the following:
    a. 30 elements or less; or
    b. Incorporating time delay-and-integration within the element and 
having 2 elements or less;
    2. 'Staring Arrays' less than 256 elements;
    Technical Notes: 'Scanning Arrays' are defined as ``focal plane 
arrays'' designed for use with a scanning optical system that images a

[[Page 360]]

scene in a sequential manner to produce an image.
    'Staring Arrays' are defined as ``focal plane arrays'' designed for 
use with a non-scanning optical system that images a scene.
    h. Gallium Arsenide (GaAs)or Gallium Aluminum Arsenide (GaAlAs) 
quantum well ``focal plane arrays'' having less than 256 elements; and
    i. Microbolometer ``focal plane arrays'' having less than 8,000 
elements.
    Note 2: Reports for 6A002.a.3.g do not apply to:
    a. The linear (1-dimensional) ``focal plane arrays'' specially 
designed or modified to achieve 'charge multiplication' having 4,096 
elements or less; or
    b. The non-linear (2-dimensional) ``focal plane arrays'' specially 
designed or modified to achieve 'charge multiplication' having a maximum 
linear dimension of 4,096 elements and a total of 250,000 elements or 
less.
    Note 3: Reports for 6A006.d, are for ``compensation systems'' for 
the following:
    a. Magnetic sensors controlled in 6A006.a.2 using optically pumped 
or nuclear precession (proton/Overhauser) ``technology'' that will 
permit these sensors to realize a 'sensitivity' lower (better) than 2 pT 
rms per square root Hz.
    b. Underwater electric field sensors controlled in 6A006.b.
    c. Magnetic gradiometers controlled in 6A006.c that will permit 
these sensors to realize a 'sensitivity' lower (better) than 3 pT/m rms 
per square root Hz.
    (vii) [Reserved]
    (viii) Category 8: 8A001.c; 8A002.b (for 8A001.b, .c, .d), .h, .j, 
.o.3, and .p; 8D001 (for commodities listed in this paragraph, as well 
as 8A001.b, c, and d); 8D002; 8E001 (for commodities listed in this 
paragraph, as well as 8A001.b, c and d); and 8E002.a; and
    (ix) Category 9: 9B001.b, 9D001 (for 9B001.b and as described in 
this paragraph), 9D002 (for 9B001.b), 9D004.a, 9D004.c, 9E001 for 
technology controlled for NS reasons, 9E002, 9E003a.1 to a.5, a.8, and 
h.
    (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 an ``Adjusted Peak Performance'' 
(``APP'') exceeding 0.5 Weighted TeraFLOPS (WT). For the calculation of 
``APP'', see the Technical Note at the end of Category 4 in the Commerce 
Control List (Supplement No. 1 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 underSec. 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

[[Page 361]]

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 via courier to: 
Bureau of Industry and Security, U.S. Department of Commerce, Attn: 
``Wassenaar Reports'', Room 2705, 14th Street and Pennsylvania Ave., 
NW., Washington, DC 20230. BIS will not accept reports sent C.O.D.
    (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]

    Editorial Note: For Federal Register citations affectingSec. 
743.1, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec.  743.2  High performance computers: Post shipment verification
reporting.

    (a) Scope. This section outlines special post-shipment reporting 
requirements for exports of certain computers to destinations in 
Computer Tier 3, seeSec. 740.7(d) for a list of these destinations. 
Post-shipment reports must be submitted in accordance with the 
provisions of this section, and all relevant records of such exports 
must be kept in accordance with part 762 of the EAR.
    (b) Requirement. Exporters must file post-shipment reports and keep 
records in accordance with recordkeeping requirements in part 762 of the 
EAR for high performance computer exports to destinations in Computer 
Tier 3, as well as, exports of commodities used to enhance computers 
previously exported or reexported to Computer Tier 3 destinations, where 
the ``Adjusted Peak Performance'' (``APP'') is greater than 3.0 Weighted 
TeraFLOPS (WT).
    (c) 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 (d) 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 APP level in WT; 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 (c) of this section: Exporters are required to 
provide the PRC End-User Certificate Number to BIS as part of their 
post-shipment report. 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.

    (d) Address. A copy of the post-shipment report(s) required under 
paragraph (b) of this section shall be delivered, via courier, to: U.S. 
Department of Commerce, Office of Enforcement Analysis, HPC Team, 14th 
Street and Constitution Ave., NW., Room 4065, Washington, DC 20230. Note 
that BIS will not accept reports sent C.O.D.

[71 FR 20886, Apr. 24, 2006, as amended at 73 FR 35, Jan. 2, 2008; 76 FR 
36988, June 24, 2011; 77 FR 39369, July 2, 2012]



Sec.  743.3  Thermal imaging camera reporting.

    (a) General requirement. Exports of thermal imaging cameras must be 
reported to BIS as provided in this section.
    (b) Transactions to be reported. Exports that are not authorized by 
an individually validated license of thermal imaging cameras controlled 
by ECCN 6A003.b.4.b to Albania, Australia, Austria, Belgium, Bulgaria, 
Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, 
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, 
Lithuania, Luxembourg,

[[Page 362]]

Malta, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, 
Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, 
Switzerland, Turkey, or the United Kingdom must be reported to BIS.
    (c) Party responsible for reporting. The exporter as defined in 
Sec.  772.1 of the EAR must ensure the reports required by this section 
are submitted to BIS.
    (d) Information to be included in the reports. For each export 
described in paragraph (b) of this section, the report must identify: 
the name, address, and telephone number of the exporter; the date of 
each export; the name, address and telephone number of the consignee or 
end user; the model number(s) of each camera exported; the serial number 
of each exported camera that has a serial number; and the quantity of 
each model number of camera exported. (Note: Technical specifications 
may be requested on an as needed basis and must be provided to BIS after 
any such request.)
    (e) Where to submit reports. Submit the reports via e-mail to 
[email protected].
    (f) Reporting periods and due dates. This reporting requirement 
applies to exports made on or after May 22, 2009. Exports must be 
reported within one month of the reporting period in which the export 
takes place. The first reporting period begins on May 22, 2009 and runs 
through June 30, 2009. Subsequent reporting periods shall begin on 
January 1 and July 1 of each year, and shall run through June 30, and 
December 31 respectively. Exports in each reporting period must be 
reported to BIS no later than the last day of the month following the 
month in which the reporting period ends.

[74 FR 23947, May 22, 2009, as amended at 74 FR 68146, Dec. 23, 2009; 76 
FR 58397, Sept. 21, 2011]



 Sec. Supplement No. 1 to Part 743--Wassenaar Arrangement Participating 
                                 States

Argentina
Australia
Austria
Belgium
Bulgaria
Canada
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Japan
Latvia
Lithuania
Luxembourg
Malta
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
South Africa
South Korea
Spain
Sweden
Switzerland
Turkey
Ukraine
United Kingdom
United States

[63 FR 55020, Oct. 14, 1998, as amended at 70 FR 41102, July 15, 2005; 
71 FR 52964; Sept. 7, 2006; 77 FR 39369, July 2, 2012]



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 Rocket Systems (including ballistic 
          missile systems and space launch vehicles and sounding 
          rockets) and Unmanned Air Vehicles (including cruise missile 
          systems, target drones and reconnaissance drones) 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 exports and reexports to persons designated 
          pursuant to Executive Order 13382--Blocking Property of 
          Weapons of Mass Destruction Proliferators and Their 
          Supporters.
744.9 Restrictions on certain exports and reexports of cameras 
          controlled by ECCNs 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c.
744.10 Restrictions on certain entities in Russia.
744.11 License requirements that apply to entities acting contrary to 
          the national security or foreign policy interests of the 
          United States.
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).

[[Page 363]]

744.14 Restrictions on exports and reexports to designated Foreign 
          Terrorist Organizations (FTOs).
744.15 [Reserved]
744.16 Procedure for requesting removal or modification of an Entity 
          List entity.
744.17 Restrictions on certain exports and reexports of general purpose 
          microprocessors for ``military end-uses'' and to ``military 
          end-users.''
744.18 Restrictions on exports, reexports, and transfers to persons 
          designated in or pursuant to Executive Order 13315.
744.19 Licensing policy regarding persons sanctioned pursuant to 
          specified statutes.
744.20 License requirements that apply to certain sanctioned entities.
744.21 Restrictions on certain military end-uses in the People's 
          Republic of China (PRC).
744.22 Restrictions on exports, reexports and transfers to persons whose 
          property and interests in property are blocked pursuant to 
          Executive Orders 13310, 13448 or 13464.

Supplement No. 1 to Part 744--Military End-Use Examples forSec. 744.17
Supplement No. 2 to Part 744--List of Items Subject to the Military End-
          Use License Requirement ofSec. 744.21
Supplement No. 3 to Part 744--Countries Not Subject to Certain Nuclear 
          End-Use Restrictions inSec. 744.2(a)
Supplement No. 4 to Part 744--Entity List
Supplement No. 5 to Part 744--Procedures for End-User Review Committee 
          Entity List Decisions

    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; 22 U.S.C. 7201 et seq.; 22 U.S.C. 
7210; 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 January 19, 2012, 77 FR 3067 (January 20, 2012) Notice of 
August 15, 2012, 77 FR 49699 (August 16, 2012); Notice of September 11, 
2012, 77 FR 56519 (September, 12, 2012); Notice of November 1, 2012, 77 
FR 66513 (November 5, 2012).

    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 prohibit exports, 
reexports and transfers (in-country) of items subject to the EAR to 
defined nuclear, missile, and chemical and biological proliferation 
activities. Section 744.5 prohibits exports, reexports and transfers 
(in-country) of items subject to the EAR to defined 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. 
Section 744.7 prohibits exports and reexports of certain items for 
certain aircraft and vessels. Section 744.8 prohibits exports and 
reexports without authorization to certain parties who have been 
designated as proliferators of weapons of mass destruction or as 
supporters of such proliferators pursuant to Executive Order 13382. 
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. 
Section 744.11 imposes license requirements, to the extent specified in 
Supplement No. 4 to this part on entities listed in Supplement No. 4 to 
this part for activities contrary to the national security or foreign 
policy interests of the United States. 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 744.16 sets forth the right of a party listed in Supplement No. 
4 to this part to request that its listing be removed or modified. 
Section 744.19 sets forth BIS's licensing policy for applications for 
exports or reexports when a party to the transaction is an entity that 
has been sanctioned pursuant to any of three specified statutes that 
require certain license applications to be denied. Section 744.20 
requires a license, to the extent specified in Supplement No. 4 to this 
part, for exports and reexports of items subject to the EAR destined to 
certain sanctioned entities listed in Supplement No. 4 to this part. In 
addition, these

[[Page 364]]

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 
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, transfer (in-country) or other 
activity. See Supplement No. 1 to part 732 for guidance. For exports, 
reexports or transfers (in-country) that are in transit at the time you 
are informed by BIS that a license is required in accordance with 
Sec.Sec. 744.2(b), 744.3(b), 744.4(b) or 744.6(b) of the EAR, you may 
not proceed any further with the transaction unless you first obtain a 
license from BIS (see part 748 of the EAR for instructions on how to 
apply for a license). The provisions ofSec. 748.4(d)(2) shall not 
apply to license applications submitted pursuant to a notification from 
BIS that occurs while an export, reexport, or transfer (in-country) is 
in transit.
    (c) A list of entities is included in Supplement No. 4 to this part 
744 of the EAR (Entity List). The public is 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 and reexports to listed entities of 
specified items, except License Exceptions for items listed inSec. 
740.2(a)(5) of the EAR destined to listed Indian or Pakistani entities 
to ensure the safety of civil aviation and safe operation of commercial 
passenger aircraft, and in the case of entities added to the Entity List 
pursuant toSec. 744.20, to the extent specified on the Entity List.

[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; 69 FR 56694, Sept. 22, 2004; 69 FR 65369, Nov. 12, 2004; 70 FR 
10867, Mar. 7, 2005; 73 FR 49321, Aug. 21, 2008; 73 FR 68325, Nov. 18, 
2008; 74 FR 2357, Jan. 15, 2009; 74 FR 52884, Oct. 15, 2009; 74 FR 
57062, Nov. 4, 2009; 75 FR 31681, June 4, 2010]



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, reexport, or transfer 
(in-country) to any destination, other than countries in Supplement No. 
3 to this part, an item subject to the EAR without a license if, at the 
time of export, reexport, or transfer (in-country) you know \1\ that 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 Directorate 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.

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

[[Page 365]]

    (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 toSec. 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 persons informed by BIS. BIS may 
inform persons, either individually by specific notice or through 
amendment to the EAR, that a license is required for a specific export, 
reexport, or transfer (in-country), or for the export, reexport, or 
transfer (in-country) of specified items to a certain end-user, because 
there is an unacceptable risk of use in, or diversion to, the activities 
specified 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. However, the 
absence of any such notification does not excuse persons 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 (seeSec. 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 inSec. 744.2(a)). Notwithstanding the provisions of Part 
740 of the EAR, the provisions ofSec. 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;

[[Page 366]]

    (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 inSec. 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; 73 FR 68326, Nov. 18, 
2008]



Sec.  744.3  Restrictions on Certain Rocket Systems (including 
ballistic missile systems and space launch vehicles and sounding
rockets) and Unmanned Air Vehicles (including cruise missile systems,
target drones and reconnaissance drones) End-Uses.

    (a) General prohibition. In addition to the license requirements for 
items specified on the CCL, you may not export, reexport, or transfer 
(in-country) an item subject to the EAR without a license if, at the 
time of export, reexport or transfer (in-country) you know that the 
item:
    (1) Will be used in the design, development, production or use of 
rocket systems or unmanned air vehicles capable of a range of at least 
300 kilometers in or by a country listed in Country Group D:4 of 
Supplement No. 1 to part 740 of the EAR.
    (2) Will be used, anywhere in the world except by governmental 
programs for nuclear weapons delivery of NPT Nuclear Weapons States that 
are also member of NATO, in the design, development, production or use 
of rocket systems or unmanned air vehicles, regardless of range 
capabilities, for the delivery of chemical, biological, or nuclear 
weapons; or
    (3) Will be used in the design, development, production or use of 
any rocket systems or unmanned air vehicles in or by a country listed in 
Country Group D:4, but you are unable to determine:
    (i) The characteristics (i.e., range capabilities) of the rocket 
systems or unmanned air vehicles, or
    (ii) Whether the rocket systems or unmanned air vehicles, regardless 
of range capabilities, will be used in a manner prohibited under 
paragraph (a)(2) of this section.

    Note to paragraph (a) of this section: For the purposes of this 
section, ``Rocket Systems'' include, but are not limited to, ballistic 
missile systems, space launch vehicles, and sounding rockets. Also, for 
the purposes of this section, ``unmanned air vehicles'' include, but are 
not limited to, cruise missile systems, target drones and reconnaissance 
drones.

    (b) Additional prohibition on persons informed by BIS. BIS may 
inform persons, either individually by specific notice or through 
amendment to the

[[Page 367]]

EAR, that a license is required for a specific export, reexport or 
transfer (in-country) or for the export, reexport, or transfer (in-
country) of specified items to a certain end-user, because there is an 
unacceptable risk of use in, or diversion to, the activities specified 
in paragraphs (a)(1) or (a)(2) 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. However, the 
absence of any such notification does not excuse persons from compliance 
with the license requirements of paragraphs (a)(1), (a)(2), or (a)(3) of 
this section.
    (c) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraph (a) and (b) of this section.
    (d) License review standards. (1) Applications to export, reexport 
or transfer (in-country) the items subject to this section will be 
considered on a case-by-case basis to determine whether the export, 
reexport or transfer (in-country) would make a material contribution to 
the proliferation of certain rocket systems, or unmanned air vehicles. 
When an export, reexport or transfer (in-country) 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, reexport or transfer in terms 
of its contribution to the design, development, production or use of 
certain rocket systems or unmanned air vehicles;
    (iii) The capabilities and objectives of the rocket systems or 
unmanned air vehicles 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 for certain rocket system or unmanned 
air vehicle 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; 69 
FR 64659, Nov. 8, 2004; 70 FR 11861, Mar. 10, 2005; 73 FR 68326, Nov. 
18, 2008]



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, reexport, or transfer 
(in-country) an item subject to the EAR without a license if, at the 
time of export, reexport, or transfer (in-country) you know that the 
item will be used in the design, development, production, stockpiling, 
or use of chemical or biological weapons in or by any country or 
destination, worldwide.
    (b) Additional prohibition on persons informed by BIS. BIS may 
inform persons, either individually by specific notice or through 
amendment to the EAR, that a license is required for a specific export, 
reexport, or transfer (in-country), or for the export, reexport, or 
transfer (in-country) of specified items to a certain end-user, because 
there is an unacceptable risk of use in or diversion to the activities 
specified 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 persons from compliance with the license requirements of 
paragraph (a) of this section.
    (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, reexport, 
or transfer (in-country) items subject to this section will be 
considered on a case-by-case basis to determine whether the export, 
reexport, or transfer (in-country) would make a material contribution to 
the design, development, production,

[[Page 368]]

stockpiling, or use of chemical or biological weapons. When an export, 
reexport, or transfer (in-country) 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, reexport, or transfer in terms 
of its contribution to the design, development, production, stockpiling, 
or use of chemical or biological weapons;
    (iii) The nonproliferation credentials of the importing country or 
the country in which the transfer would take place;
    (iv) 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; and
    (v) The existence of a pre-existing contract. 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; 70 
FR 16111, Mar. 30, 2005; 70 FR 19691, Apr. 14, 2005; 73 FR 68326, Nov. 
18, 2008]



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, reexport, or transfer 
(in-country) certain technology subject to the EAR without a license if 
at the time of the export, reexport or transfer (in-country) 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 withSec. 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; 73 
FR 68326, Nov. 18, 2008]



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 (in-country) an item 
where that person knows that such item:
    (A) Will be used in the design, development, production, or use of 
nuclear explosive devices in or by a country listed in Country Group D:2 
(see supplement no. 1 to part 740 of the EAR).
    (B) Will be used in the design, development, production, or use of 
missiles in or by a country listed in Country Group D:4 (see supplement 
no. 1 to part 740 of the EAR); or
    (C) Will be used in the design, development, production, 
stockpiling, or use of chemical or biological weapons in or by any 
country or destination, worldwide.
    (ii) No U.S. person shall, without a license from BIS, knowingly 
support an export, reexport, or transfer (in-country) that does not have 
a license as required by this section. Support means any action, 
including financing, transportation, and freight forwarding, by which a 
person facilitates an export, reexport, or transfer (in-country).
    (2) Other activities unrelated to exports. No U.S. person shall, 
without a license from BIS:

[[Page 369]]

    (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 will directly assist in the design, development, 
production, stockpiling, or use of chemical or biological weapons in or 
by any country or destination, worldwide.
    (3) Whole plant requirement. No U.S. person shall, without a license 
from BIS, participate in the design, construction, export, reexport, or 
transfer (in-country) 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 by specific notice 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. 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 U.S. person 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; 70 
FR 19691, Apr. 14, 2005; 73 FR 68326, Nov. 18, 2008]



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), (see supplement no. 1 to part 740) provided 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;

[[Page 370]]

    (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), (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. ThisSec. 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; 70 FR 67348, Nov. 7, 2005]



Sec.  744.8  Restrictions on exports and reexports to persons
designated pursuant to Executive Order 13382--Blocking Property
of Weapons of Mass Destruction Proliferators and Their Supporters.

    BIS maintains restrictions on exports and reexports to persons 
designated in or pursuant to Executive Order 13382 of June 28, 2005 
(Weapons of Mass Destruction Proliferators and their Supporters). 
Executive Order 13382 blocks the property and interests in property of 
persons named in or designated pursuant to Executive Order 13382 in the 
United States or that comes within the United States or within the 
possession or control of United States persons. The parties whose 
property or interests in property are blocked pursuant to Executive 
Order 13382 are identified by the Department of the Treasury, Office of 
Foreign Assets Control (OFAC) in Appendix A to 31 CFR Chapter V with the 
bracketed suffix [NPWMD]. This section imposes export and reexport 
license requirements for items subject to

[[Page 371]]

the EAR on those same parties to further the objectives of Executive 
Order 13382.
    (a) License requirement(s) and authorization--(1) EAR license 
requirement. A license is required for the export or reexport of any 
item subject to the EAR to any party listed in Appendix A to 31 CFR 
Chapter V with the bracketed suffix [NPWMD].
    (2) BIS authorization. (i) To avoid duplication, U.S. persons are 
not required to seek separate authorization from BIS for an export or 
reexport to a party listed in Appendix A to 31 CFR Chapter V with the 
bracketed suffix [NPWMD] of an item subject to the EAR. If OFAC 
authorizes an export from the United States or an export or reexport by 
a U.S. person to a party listed in Appendix A to 31 CFR Chapter V with 
the bracketed suffix [NPWMD], such authorization constitutes 
authorization for purposes of the EAR as well.
    (ii) U.S. persons must seek authorization from BIS for the export or 
reexport to a party listed in Appendix A to 31 CFR Chapter V with the 
bracketed suffix [NPWMD] of any item subject to the EAR that is not 
subject to OFAC's regulatory authority pursuant to Executive Order 
13382.
    (iii) Non-U.S. persons must seek authorization from BIS for any 
export from abroad or reexport to a party listed in Appendix A to 31 CFR 
Chapter V with the bracketed suffix [NPWMD] of any item subject to the 
EAR.
    (iv) Any export or reexport to a party listed in Appendix A to 31 
CFR Chapter V with the bracketed suffix [NPWMD] of any item subject to 
the EAR and not authorized by OFAC is a violation of the EAR.
    (v) Any export or reexport by a U.S. person to a party listed in 
Appendix A to 31 CFR Chapter V with the bracketed suffix [NPWMD] 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 a party listed in Appendix A to 31 
CFR Chapter V with the bracketed suffix [NPWMD] of any item subject to 
the EAR and not authorized by BIS is a violation of the EAR.
    (3) Relation to other EAR license requirements. The license 
requirements in this section supplement any other requirements set forth 
elsewhere in the EAR.
    (b) License exceptions. No license exceptions are available for the 
EAR license requirements imposed in this section.
    (c) Licensing policy. Applications for EAR licenses required by this 
section 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.

[74 FR 2357, Jan. 15, 2009]



Sec.  744.9  Restrictions on certain exports and reexports of cameras
controlled by ECCNs 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c.

    (a) General prohibitions. In addition to the applicable license 
requirements for national security, regional stability, anti-terrorism 
and United Nations embargo reasons in Sec.Sec. 742.4, 742.6, 742.8, 
746.3 and 746.8 of the EAR, a license is required to export or reexport 
to any destination other than Canada cameras described in ECCNs 
6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c if at the time of export or 
reexport, the exporter or reexporter knows or is informed that the item 
will be or is intended to be:
    (1) Used by a ``military end-user,'' as defined in paragraph (d) of 
this section; or
    (2) Incorporated into a ``military commodity'' controlled by ECCN 
0A919.
    (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 the export or reexport of items described in ECCNs 
6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c to specified end-users, because 
BIS has determined that there is an unacceptable risk of diversion to 
the users or unauthorized incorporation into the ``military 
commodities'' 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

[[Page 372]]

will be followed by a written notice within two working days signed by 
the Deputy Assistant Secretary for Export Administration.
    (c) License review standard. Applications for licenses required by 
this section will be reviewed by applying the policies that would be 
applied under the International Traffic in Arms Regulations (22 CFR 
Parts 120-130).
    (d) 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 inSec. 744.17(d).
    (e) Exception. Shipments subject to the prohibitions in paragraphs 
(a) and (b) of this section that are consigned to and for the official 
use of the U.S. Government authorized pursuant toSec. 740.11(b)(2)(ii) 
of the EAR may be made under License Exception GOV. No other license 
exceptions apply to the prohibitions described in paragraphs (a) and (b) 
of this section.

[74 FR 23948, May 22, 2009; 77 FR 39369, July 2, 2012]



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 alsoSec. 
744.1(c) of the EAR.) A license is required, to the extent specified on 
the Entity List, to export, reexport, or transfer (in-country) any item 
subject to the EAR to such entities.
    (b) Exceptions. No License Exceptions apply to the prohibition 
described in paragraph (a) of this section.
    (c) License review standard. Applications to export, reexport, or 
transfer (in-country) items subject to the EAR to these entities will be 
reviewed with a presumption of denial.

[64 FR 14605, Mar. 26, 1999, as amended at 74 FR 45992, Sept. 8, 2009]



Sec.  744.11  License requirements that apply to entities acting 
contrary to the national security or foreign policy interests of 
the United States.

    BIS may impose foreign policy export, reexport, and transfer (in-
country) license requirements, limitations on availability of license 
exceptions, and set license application review policy based on the 
criteria in this section. Such requirements, limitations and policy are 
in addition to those set forth elsewhere in the EAR. License 
requirements, limitations on use of license exceptions and license 
application review policy will be imposed under this section by adding 
an entity to the Entity List (Supp. No. 4 to this part) with a reference 
to this section and by stating on the Entity List the license 
requirements and license application review policy that apply to that 
entity. BIS may remove an entity from the Entity List if it is no longer 
engaged in the activities described in paragraph (b) of this section and 
is unlikely to engage in such activities in the future. BIS may modify 
the license exception limitations and license application review policy 
that applies to a particular entity to implement the policies of this 
section. BIS will implement the provisions of this section in accordance 
with the decisions of the End-User Review Committee or, if appropriate 
in a particular case, in accordance with the decisions of the body to 
which the End-User Review Committee decision is escalated. The End-User 
Review Committee will follow the procedures set forth in Supplement No. 
5 to this part.
    (a) License requirement, availability of license exceptions, and 
license application review policy. A license is required, to the extent 
specified on the Entity List, to export, reexport, or transfer (in-
country) any item subject to the EAR to an entity that is listed on the 
Entity List in an entry that contains a reference to this section. 
License exceptions may not be used unless authorized in that entry. 
Applications for licenses required by this section will be evaluated as 
stated in that entry in addition to any other applicable review policy 
stated elsewhere in the EAR.
    (b) Criteria for revising the Entity List. Entities for which there 
is reasonable

[[Page 373]]

cause to believe, based on specific and articulable facts, that the 
entity has been involved, is involved, or poses a significant risk of 
being or becoming involved in activities that are contrary to the 
national security or foreign policy interests of the United States and 
those acting on behalf of such entities may be added to the Entity List 
pursuant to this section. This section may not be used to place on the 
Entity List any party to which exports or reexports require a license 
pursuant toSec. 744.12,Sec. 744.13,Sec. 744.14 orSec. 744.18 of 
this part. This section may not be used to place on the Entity List any 
party if exports or reexports to that party of items that are subject to 
the EAR are prohibited by or require a license from another U.S. 
government agency. This section may not be used to place any U.S. 
person, as defined inSec. 772.1 of the EAR, on the Entity List. 
Examples (1) through (5) of this paragraph provide an illustrative list 
of activities that could be contrary to the national security or foreign 
policy interests of the United States.
    (1) Supporting persons engaged in acts of terror.
    (2) Actions that could enhance the military capability of, or the 
ability to support terrorism of governments that have been designated by 
the Secretary of State as having repeatedly provided support for acts of 
international terrorism.
    (3) Transferring, developing, servicing, repairing or producing 
conventional weapons in a manner that is contrary to United States 
national security or foreign policy interests or enabling such transfer, 
service, repair, development, or production by supplying parts, 
components, technology, or financing for such activity.
    (4) Preventing accomplishment of an end use check conducted by or on 
behalf of BIS or the Directorate of Defense Trade Controls of the 
Department of State by: precluding access to; refusing to provide 
information about; or providing false or misleading information about 
parties to the transaction or the item to be checked. The conduct in 
this example includes: expressly refusing to permit a check, providing 
false or misleading information, or engaging in dilatory or evasive 
conduct that effectively prevents the check from occurring or makes the 
check inaccurate or useless. A nexus between the conduct of the party to 
be listed and the failure to produce a complete, accurate and useful 
check is required, even though an express refusal by the party to be 
listed is not required.
    (5) Engaging in conduct that poses a risk of violating the EAR when 
such conduct raises sufficient concern that the End-User Review 
committee believes that prior review of exports, reexports, or transfers 
(in-country) involving the party and the possible imposition of license 
conditions or license denial enhances BIS's ability to prevent 
violations of the EAR.

[73 FR 49321, Aug. 21, 2008, as amended at 74 FR 45992, Sept. 8, 2009]



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 
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

[[Page 374]]

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 toSec. 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 Terrorism Sanctions Regulations in 31 CFR part 595.
    (4) Non-U.S. persons must seek authorization from BIS for the export

[[Page 375]]

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 toSec. 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 this section will generally 
be denied, to the extent they constitute material

[[Page 376]]

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 inSec. 744.13, or an SDGT, as described 
inSec. 744.12, the license requirements and licensing policy set forth 
inSec. 744.13 orSec. 744.12 will apply.

    Note toSec. 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  [Reserved]



Sec.  744.16  Procedure for requesting removal or modification of an
Entity List entity.

    Any entity listed on the Entity List may request that its listing be 
removed or modified.
    (a) All such requests, including reasons therefor, must be in 
writing and sent to: Chair, End-User Review Committee, Bureau of 
Industry and Security, U.S. Department of Commerce, 14th Street and 
Pennsylvania Avenue, NW., Room 3886, Washington, DC 20230.
    (b) The End-User Review Committee will review such requests in 
accordance with the procedures set forth in supplement no. 5 to this 
part.
    (c) The Deputy Assistant Secretary for Export Administration will 
convey the decision on the request to the requester in writing. That 
decision will be the final agency action on the request.

[73 FR 49322, Aug. 21, 2008]



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 processing speed of 5 GFLOPS 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. SeeSec. 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

[[Page 377]]

(USML) (22 CFR part 121, International Traffic in Arms Regulations) or 
the Wassenaar Arrangement Munitions List (as set out on the Wassenaar 
Arrangement Web site 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 Wassenaar Arrangement 
Munitions List, or commodities listed under ECCNs 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, as amended at 72 FR 43531, Aug. 6, 2007; 72 
FR 62533, Nov. 5, 2007; 73 FR 6605, Feb. 5, 2008]



Sec.  744.18  Restrictions on exports, reexports, and transfers to
persons designated in or pursuant to Executive Order 13315.

    Consistent with Executive Order (E.O.) 13315 of August 28, 2003 
(``Blocking Property of the Former Iraqi Regime, Its Senior Officials 
and Their Family Members, and Taking Certain Other Actions''), BIS 
maintains restrictions on exports, reexports, and transfers to persons 
designated in or pursuant to E.O. 13315. These persons include 
individuals and entities listed in the Annex to Executive Order 13315, 
as well as persons subsequently designated pursuant to criteria set 
forth in the order. OFAC includes the names of persons designated 
pursuant to E.O. 13315 in Appendix A to 31 CFR Chapter V, which lists 
persons subject to various sanctions programs administered by OFAC. All 
persons designated in or pursuant to E.O. 13315 are identified in 
Appendix A by the bracketed initials [IRAQ2].
    (a) License Requirements. (1) A license requirement applies to the 
export, reexport, or transfer of any item subject to the EAR to--
    (i) Persons listed in the Annex to E.O. 13315 of August 28, 2003; or
    (ii) Persons determined to be subject to E.O. 13315.
    (2) To avoid duplication, U.S. persons are not required to seek 
separate BIS authorization for an export, reexport, or transfer to a 
person identified in paragraph (a) of this section of any item subject 
to both the EAR and regulations maintained by OFAC. Therefore, if OFAC 
authorizes an export from the United States or an export, reexport, or 
transfer by a U.S. person to a person identified in paragraph (a) of 
this section, no separate authorization from BIS is necessary.
    (3) U.S. persons must seek authorization from BIS for the export, 
reexport, or transfer to a person identified in paragraph (a) of this 
section of any item subject to the EAR but not subject to regulations 
maintained by OFAC.
    (4) Non-U.S. persons must seek authorization from BIS for the export 
from abroad, reexport, or transfer to a person identified in paragraph 
(a) of this section of any item subject to the EAR.
    (5) Any export, reexport, or transfer to a person identified in 
paragraph (a) of this section by a U.S. person of any item subject both 
to the EAR and regulations maintained by OFAC and not authorized by OFAC 
is a violation of the EAR.
    (6) Any export, reexport, or transfer by a U.S. person to a person 
identified in paragraph (a) of this section of any item subject to the 
EAR that is not subject to regulations maintained by OFAC and not 
authorized by BIS is a violation of the EAR. Any export from abroad, 
reexport, or transfer by a non-U.S. person to a person identified in 
paragraph (a) of this section of any item subject to the EAR and not 
authorized by BIS is a violation of the EAR.

[[Page 378]]

    (7) These licensing requirements supplement any other requirements 
set forth elsewhere in the EAR.
    (b) Exceptions. No License Exceptions or other BIS authorizations 
are available for export, reexport, or transfer to a person identified 
in paragraph (a) of this section of any item subject to the EAR.
    (c) Licensing policy. Applications for licenses for the export, 
reexport, or transfer to a person identified in paragraph (a) of this 
section of any item subject to the EAR will generally 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.

[69 FR 46076, July 30, 2004]



Sec.  744.19  Licensing policy regarding persons sanctioned pursuant
to specified statutes.

    Notwithstanding any other licensing policy elsewhere in the EAR, BIS 
will deny any export or reexport license application if any person who 
is a party to the transaction (i.e., the applicant, other party 
authorized to receive a license, purchaser, intermediate consignee, 
ultimate consignee, or end-user) is subject to one or more of the 
sanctions described in paragraphs (a), (b), (c), and (e) of this section 
and will deny any export or reexport license application for an item 
listed on the Commerce Control List with a reason for control of MT if a 
person who is a party to the transaction is subject to a sanction 
described in paragraph (d) of this section.
    (a) A sanction issued pursuant to the Iran-Iraq Arms 
Nonproliferation Act of 1992 (50 U.S.C. 1701 note) that prohibits the 
issuance of any license to or by the sanctioned person.
    (b) A sanction issued pursuant to the Iran, North Korea, and Syria 
Nonproliferation Act (50 U.S.C. 1701 note) that prohibits the granting 
of a license and requires the suspension of an existing license for the 
transfer to foreign persons of items, the export of which is controlled 
under the Export Administration Act of 1979, as amended (50 U.S.C. app. 
2401-2420), or the Export Administration Regulations.
    (c) A sanction issued pursuant to section 11B(b)(1)(B)(ii) of the 
Export Administration Act of 1979, as amended (50 U.S.C. app. 2401-
2420), that prohibits the issuance of new licenses for exports to the 
sanctioned person of items controlled pursuant to the Export 
Administration Act of 1979, as amended.
    (d) A sanction issued pursuant to section 11B(b)(1)(B)(i) of the 
Export Administration Act of 1979, as amended (50 U.S.C. app. 2401-
2420), that prohibits the issuance of new licenses for exports to the 
sanctioned person of MTCR Annex equipment or technology controlled 
pursuant to the Export Administration Act of 1979, as amended.
    (e) A sanction issued pursuant to the Iran Sanctions Act of 1996 (50 
U.S.C. 1701 note) that prohibits the issuance of a specific license or 
grant of any other specific permission or authority to export any goods 
or technology to a sanctioned person under the Export Administration Act 
of 1979, as amended (50 U.S.C. app. 2401-2420).

[77 FR 5388, Feb. 3, 2012]



Sec.  744.20  License requirements that apply to certain sanctioned
entities.

    BIS may impose, as foreign policy controls, export, reexport, and 
transfer (in-country) license requirements and set licensing policy with 
respect to certain entities that have been sanctioned by the State 
Department. Such license requirements and policy are in addition to 
those imposed elsewhere in the EAR. License requirements and licensing 
policy may be imposed pursuant to this section even when the sanction 
and the legal authority under which the State Department imposed the 
sanction do not require or authorize the imposition of any license 
requirement or licensing policy. License requirements and licensing 
policy will be imposed pursuant to this section by adding an entity to 
the Entity List in accordance with paragraphs (a), (b), and (c) of this 
section.
    (a) General requirement. Certain entities that have been sanctioned 
by the State Department are listed in Supplement No. 4 to this part (the 
Entity List) with a reference to this section. A

[[Page 379]]

license is required, to the extent specified on the Entity List, to 
export, reexport, or transfer (in-country) any item to such entities.
    (b) License Exceptions. No license exception may be used to export, 
reexport, or transfer (in-country) to such entities unless specifically 
authorized on the Entity List.
    (c) Licensing policy. Applications to export, reexport, or transfer 
(in-country) to such entities will be reviewed according to the 
licensing policy set forth on the Entity List.

[70 FR 10867, Mar. 7, 2005, as amended at 74 FR 45992, Sept. 8, 2009]



Sec.  744.21  Restrictions on certain military end-uses in the 
People's Republic of China (PRC).

    (a) General prohibition. In addition to the license requirements for 
items specified on the Commerce Control List (CCL), you may not export, 
reexport, or transfer any item subject to the EAR listed in Supplement 
No. 2 to Part 744 to the PRC without a license if, at the time of the 
export, reexport, or transfer, you know, meaning either:
    (1) You have knowledge, as defined inSec. 772.1 of the EAR, that 
the item is intended, entirely or in part, for a ``military end-use,'' 
as defined in paragraph (f) of this section, in the PRC; or
    (2) You have been informed by BIS, as described in paragraph (b) of 
this section, that the item is or may be intended, entirely or in part, 
for a ``military end-use'' in the PRC.
    (b) Additional prohibition on those informed by BIS. BIS may inform 
you either individually by specific notice, through amendment to the EAR 
published in the Federal Register, or through a separate notice 
published in the Federal Register, that a license is required for 
specific exports, reexports, or transfers of any item because there is 
an unacceptable risk of use in or diversion to ``military end-use'' 
activities in the PRC. Specific notice will 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 written 
notice within two working days signed by the Deputy Assistant Secretary 
for Export Administration or the Deputy Assistant Secretary's designee. 
The absence of BIS notification does not excuse the exporter from 
compliance with the license requirements of paragraph (a) of this 
section.
    (c) License exception. Despite the prohibitions described in 
paragraphs (a) and (b) of this section, you may export items subject to 
the EAR under the provisions of License Exception GOV set forth in 
Sec.Sec. 740.11(b)(2)(i) and (ii) of the EAR.
    (d) License application procedure. When submitting a license 
application pursuant to this section, you must state in the ``additional 
information'' block of the application that ``this application is 
submitted because of the license requirement inSec. 744.21 of the EAR 
(Restrictions on Certain Military End-uses in the People's Republic of 
China).'' In addition, either in the additional information block or in 
an attachment to the application, you must include all known information 
concerning the military end-use of the item(s). If you submit an 
attachment with your license application, you must reference the 
attachment in the ``additional information'' block of the application.
    (e) License review standards. (1) Applications to export, reexport, 
or transfer items described in paragraph (a) of this section will be 
reviewed on a case-by-case basis to determine whether the export, 
reexport, or transfer would make a material contribution to the military 
capabilities of the PRC and would result in advancing the country's 
military activities contrary to the national security interests of the 
United States. When it is determined that an export, reexport, or 
transfer would make such a contribution, the license will be denied.
    (2) Applications may be reviewed under chemical and biological 
weapons, nuclear nonproliferation, or missile technology review 
policies, as set forth in Sec.Sec. 742.2(b)(4), 742.3(b)(4) and 
742.5(b)(4) of the EAR, if the end-use may involve certain proliferation 
activities.
    (3) Applications for items requiring a license for other reasons 
that are destined to the PRC for a military end-use also will be subject 
to the review policy stated in paragraph (e)(1) of this section.

[[Page 380]]

    (f) In this section, ``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); incorporation into a 
military item described on the Wassenaar Arrangement Munitions List (as 
set out on the Wassenaar Arrangement Web site at http://
www.wassenaar.org); incorporation into items listed under ECCNs ending 
in ``A018'' on the CCL in Supplement No. 1 to part 774 of the EAR; or 
for the ``use'', ``development'', or ``production'' of military items 
described on the USML or the IML, or items listed under ECCNs ending in 
``A018'' on the CCL. ``Military end-use'' also means ``deployment'' of 
items classified under ECCN 9A991 as set forth in Supplement No. 2 to 
Part 744.

    Note to paragraph (f) of this section: As defined in Part 772 of the 
EAR, ``use'' means operation, installation (including on-site 
installation), maintenance (checking), repair, overhaul and 
refurbishing; ``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; and ``production'' 
means all production stages, such as: product engineering, 
manufacturing, integration, assembly (mounting), inspection, testing, 
quality assurance.
    For purposes of this section, operation means to cause to function 
as intended; installation means to make ready for use, and includes 
connecting, integrating, incorporating, loading software, and testing; 
maintenance means performing work to bring an item to its original or 
designed capacity and efficiency for its intended purpose, and includes 
testing, measuring, adjusting, inspecting, replacing parts, restoring, 
calibrating, overhauling; and deployment means placing in battle 
formation or appropriate strategic position.

[72 FR 33657, June 19, 2007, as amended by 72 FR 43531, Aug. 6, 2007; 73 
FR 49329, Aug. 21, 2008; 73 FR 58037, Oct. 6, 2008]



Sec.  744.22  Restrictions on exports, reexports and transfers 
to persons whose property and interests in property are blocked
pursuant to Executive Orders 13310, 13448 or 13464.

    Consistent with Executive Order 13310 of July 28, 2003, Executive 
Order 13448 of October 18, 2007 and Executive Order 13464 of April 30, 
2008, BIS maintains restrictions on exports, reexports, and transfers to 
persons whose property and interests in property are blocked pursuant to 
Executive Orders 13310, 13448 or 13464. These persons include 
individuals and entities listed in the Annexes to Executive Orders 
13310, 13448 and 13464, as well as other persons whose property and 
interests in property are blocked pursuant to those orders.
    (a) License Requirements. (1) A license requirement applies to the 
export, reexport, or transfer of any item subject to the EAR (except for 
agricultural commodities, medicine, or medical devices, classified as 
EAR99 and destined for entities whose property and interests in property 
are blocked pursuant to Executive Orders 13310, 13448 or 13464) to--
    (i) Persons listed in the Annexes to Executive Order 13310 of July 
28, 2003, Executive Order 13448 of October 18, 2007 or Executive Order 
13464 of April 30, 2008; or
    (ii) Persons designated pursuant to Executive Order 13310, Executive 
Order 13448 or Executive Order 13464.

    Note to paragraph (a)(1): All persons listed in or designated 
pursuant to Executive Orders 13310, 13448, or 13464 are identified with 
the reference [BURMA] on OFAC's list of Specially Designated Nationals 
and Blocked Persons set forth in Appendix A to 31 CFR Chapter V and on 
OFAC's Web site at http://www.treas.gov/OFAC. Consistent with guidance 
issued by OFAC on February 14, 2008, a person whose property and 
interests in property are blocked pursuant to an Executive Order or 
regulations administered by OFAC is considered to have an interest in 
all property and interests in property of an entity in which it owns, 
directly or indirectly, a 50% or greater interest. The property and 
interests in property of such an entity are blocked, regardless of 
whether the entity itself is listed in the annex to an Executive order 
or otherwise designated pursuant to such order. The OFAC guidance on 
this topic is available at http://www.treas.gov/offices/enforcement/
ofac/programs/common/licensing--guidance.pdf.

    (2) To avoid duplication, U.S. persons are not required to seek 
separate BIS authorization for an export, reexport, or transfer to a 
person identified in paragraph (a) of this section of any

[[Page 381]]

item subject to both the EAR and regulations maintained by OFAC. 
Therefore, if OFAC authorizes an export from the United States or an 
export, reexport, or transfer by a U.S. person to a person identified in 
paragraph (a) of this section, no separate authorization from BIS is 
necessary.
    (3) U.S. persons must seek authorization from BIS for the export, 
reexport, or transfer to a person identified in paragraph (a) of this 
section of any item subject to the EAR (except for agricultural 
commodities, medicine, or medical devices, classified as EAR99 and 
destined for entities whose property and interests in property are 
blocked pursuant to Executive Orders 13310, 13448 or 13464) but not 
subject to regulations maintained by OFAC.
    (4) Non-U.S. persons must seek authorization from BIS for the export 
from abroad, reexport, or transfer to a person identified in paragraph 
(a) of this section of any item subject to the EAR (except for 
agricultural commodities, medicine, or medical devices, classified as 
EAR99 and destined for entities whose property and interests in property 
are blocked pursuant to Executive Orders 13310, 13448 or 13464).
    (5) Any export, reexport, or transfer to a person identified in 
paragraph (a) of this section by a U.S. person of any item subject both 
to the EAR and regulations maintained by OFAC and not authorized by OFAC 
is a violation of the EAR.
    (6) Any export, reexport, or transfer by a U.S. person to a person 
identified in paragraph (a) of this section of any item subject to the 
EAR (except for agricultural commodities, medicine, or medical devices, 
classified as EAR99 and destined for entities whose property and 
interests in property are blocked pursuant to Executive Orders 13310, 
13448 or 13464) that is not subject to regulations maintained by OFAC 
and not authorized by BIS is a violation of the EAR. Any export from 
abroad, reexport, or transfer by a non-U.S. person to a person 
identified in paragraph (a) of this section of any item subject to the 
EAR (except for agricultural commodities, medicine, or medical devices, 
classified as EAR99 and destined for entities whose property and 
interests in property are blocked pursuant to Executive Orders 13310, 
13448 or 13464) 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 authorizations 
are available for export, reexport, or transfer to a person identified 
in paragraph (a) of this section of any item subject to the EAR (except 
for agricultural commodities, medicine, or medical devices, classified 
as EAR99 and destined for entities whose property and interests in 
property are blocked pursuant to Executive Orders 13310, 13448 or 
13464).
    (c) Licensing policy. Applications for licenses for the export, 
reexport, or transfer to a person identified in paragraph (a) of this 
section of any item subject to the EAR (except for agricultural 
commodities, medicine, or medical devices, classified as EAR99 and 
destined for entities whose property and interests in property are 
blocked pursuant to Executive Orders 13310, 13448 or 13464) will 
generally 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, except 
as available under 31 CFR 537.210(c).

[74 FR 771, Jan. 8, 2009]



 Sec. Supplement No. 1 to Part 744--Military End-Use Examples forSec. 
                                 744.17

    (a) Examples of military end-uses (as described inSec. 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

[[Page 382]]

    (8) Intelligence, reconnaissance, or surveillance systems suitable 
for supporting military operations.
    (b) [Reserved]

[68 FR 1797, Jan. 14, 2003]



Sec. Supplement No. 2 to Part 744--List of Items Subject to the Military 
               End-Use License Requirement ofSec. 744.21

    The following items, as described, are subject to the military end-
use license requirement inSec. 744.21.

    (1) Category 1--Materials, Chemicals, Microorganisms, and Toxins

    (i) 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.
    (ii) 1C990 Limited to fibrous and filamentary materials other than 
glass, aramid or polyethylene not controlled by 1C010 or 1C210, for use 
in ``composite'' structures and with a specific modulus of 3.18 x 10\6\m 
or greater and a specific tensile strength of 7.62 x 10\4\m or greater.
    (iii) 1C996 Hydraulic fluids containing synthetic hydrocarbon oils, 
having all the characteristics in the List of Items Controlled.
    (iv) 1D993 ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of equipment or materials controlled by 
1C210.b, or 1C990.
    (v) 1D999 Limited to specific software controlled by 1D999.b for 
equipment controlled by 1B999.e that is specially designed for the 
production of prepregs controlled in Category 1, n.e.s.
    (vi) 1E994 Limited to ``technology'' for the ``development'', 
``production'', or ``use'' of fibrous and filamentary materials other 
than glass, aramid or polyethylene controlled by 1C990.

                  (2) Category 2--Materials Processing

    (i) 2A991 Limited to bearings and bearing systems not controlled by 
2A001 and with operating temperatures above 573K (300 [deg]C).
    (ii) 2B991 Limited to ``numerically-controlled'' machine tools 
having ``positioning accuracies'', with all compensations available, 
less (better) than 9[micro] along any linear axis; and machine tools 
controlled under 2B991.d.1.a.
    (iii) 2B992 Non-``numerically controlled'' machine tools for 
generating optical quality surfaces, and specially designed components 
therefor.
    (iv) 2B996 Limited to dimensional inspection or measuring systems or 
equipment not controlled by 2B006 with measurement uncertainty equal to 
or less (better) than (1.7 + L/1000) micrometers in any axes (L measured 
Length in mm).

     (3) Category 3--Electronics Design, Development and Production

    (i) 3A292.d Limited to digital oscilloscopes and transient 
recorders, using analog-to-digital conversion techniques, capable of 
storing transients by sequentially sampling single-shot inputs at 
greater than 2.5 giga-samples per second.
    (iii) 3A999.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.
    (ii) 3E292 Limited to ``technology'' according to the General 
Technology Note for the ``development'', ``production'', or ``use'' of 
digital oscilloscopes and transient recorders with sampling rates 
greater than 2.5 giga-samples per second, which are controlled by 
3A292.d.

                        (4) Category 4--Computers

    (i) 4A994 Limited to computers not controlled by 4A001 or 4A003, 
with an Adjusted Peak Performance (``APP'') exceeding 0.5 Weighted 
TeraFLOPS (WT).
    (ii) 4D993 ``Program'' proof and validation ``software'', 
``software'' allowing the automatic generation of ``source codes'', and 
operating system ``software'' that are specially designed for real time 
processing equipment.
    (iii) 4D994 Limited to ``software'' specially designed or modified 
for the ``development'', ``production'', or ``use'' of equipment 
controlled by 4A101.

               (5) Category 5--(Part 1) Telecommunications

    (i) 5A991 Limited to telecommunications equipment designed to 
operate outside the temperature range from 219K (-54 [deg]C) to 397K 
(124 [deg]C), which is controlled by 5A991.a., radio equipment using 
Quadrature-amplitude-modulation (QAM) techniques, which is controlled by 
5A991.b.7., and phased array antennae, operating above 10.5 Ghz, except 
landing systems meeting ICAO standards (MLS), which are controlled by 
5A991.f.
    (ii) 5D991 Limited to ``software'' specially designed or modified 
for the ``development'', ``production'', or ``use'' of equipment 
controlled by 5A991.a., 5A991.b.7., and 5A991.f., or of ``software'' 
specially designed or modified for the ``development'', ``production'', 
or ``use'' of equipment controlled by 5A991.a., 5A991.b.7., and 5A991.f.
    (iii) 5E991 Limited to ``technology'' for the ``development'', 
``production'' or ``use'' of equipment controlled by 5A991.a.,

[[Page 383]]

5A991.b.7., or 5A991.f., or of ``software'' specially designed or 
modified for the ``development'', ``production'', or ``use'' of 
equipment controlled by 5A991.a., 5A991.b.7., and 5A991.f.

                   (6) Category 6--Sensors and Lasers

    (i) 6A995 ``Lasers'', not controlled by 6A005 or 6A205.
    (ii) 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.''
    (iii) 6A993 Cameras, not controlled by 6A003 or 6A203 as follows 
(see List of Items Controlled).

                 (7) Category 7--Navigation and Avionics

    (i) 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.
    (ii) 7B994 Other equipment for the test, inspection, or 
``production'' of navigation and avionics equipment.
    (iii) 7D994 ``Software'', n.e.s., for the ``development'', 
``production'', or ``use'' of navigation, airborne communication and 
other avionics.
    (iv) 7E994 ``Technology'', n.e.s., for the ``development'', 
``production'', or ``use'' of navigation, airborne communication, and 
other avionics equipment.

                         (8) Category 8--Marine

    (i) 8A992 Limited to underwater systems or equipment, not controlled 
by 8A001, 8A002, or 8A018, and specially designed parts therefor.
    (ii) 8D992 ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled by 
8A992.
    (iii) 8E992 ``Technology'' for the ``development'', ``production'' 
or ``use'' of equipment controlled by 8A992.

(9) Category 9--Propulsion Systems, Space Vehicles and Related Equipment

    (i) 9A991 Limited to ``aircraft'', n.e.s., and gas turbine engines 
not controlled by 9A001 or 9A101.
    (ii) 9D991 ``Software'', for the ``development'' or ``production'' 
of equipment controlled by 9A991 or 9B991.
    (iii) 9E991 ``Technology'', for the ``development'', ``production'' 
or ``use'' of equipment controlled by 9A991 or 9B991.

[72 FR 33658, June 19, 2007, as amended at 73 FR 36, Jan. 2, 2008; 74 FR 
23948, May 22, 2009; 75 FR 54277, Sept. 7, 2010]



  Sec. Supplement No. 3 to Part 744--Countries Not Subject to Certain 
             Nuclear End-Use Restrictions inSec. 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]

                Supplement No. 4 to Part 744--Entity List

----------------------------------------------------------------------------------------------------------------
                                                                                                     Federal
           Country                         Entity                  License       License review      Register
                                                                 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 include exports, reexports, and transfers (in-country)
 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.
----------------------------------------------------------------------------------------------------------------
AFGHANISTAN..................  Abdul Satar Ghoura, 501, 5th   For all items     Presumption of   76 FR 71869,11/
                                Floor, Amanullah Sancharaki    subject to the    denial.          21/11.
                                Market Opp Chaman E Huzuri,    EAR. (See Sec.
                                Kabul, Afghanistan; and Flat    744.11 of the
                                No. 41 Block No. 24 Macroyan   EAR)..
                                3, Kabul, Afghanistan. (See
                                alternate addresses under
                                Pakistan).
                               Afghan-German Construction     For all items     Presumption of   77 FR 25057, 4/
                                Company, Golaye Park, Shari    subject to the    denial           27/12.
                                Naw, Kabul, Afghanistan, and   EAR. (See Sec.
                                Dasht Qala, Takhar Province,    744.11 of the
                                Afghanistan.                   EAR)..

[[Page 384]]

 
                               Assadullah Majed, 42S WD       For all items     Presumption of   76 FR 71869,11/
                                18476 22167 Kabul,             subject to the    denial.          21/11
                                Afghanistan; and               EAR. (See Sec.
                               A2 Ground Floor, City            744.11 of the
                                Computer Plaza, Shar-e-Naw,    EAR)..
                                Kabul, Afghanistan
                               Fazal Rahim Farid, a.k.a.,     For all items     Presumption of   76 FR 71869,11/
                                the following three aliases:   subject to the    denial.          21/11.
                               --Fazel Rahim Farid;            EAR. (See Sec.
                               --Farid; and                     744.11 of the
                               --Engineer Idris.               EAR)..
                               .............................
                               Microrayan 3rd Apt. 45, block
                                21, Kabul,
                                Afghanistan; and A2 Ground
                                Floor, City Computer Plaza,
                                Shar-e-Naw, Kabul,
                                Afghanistan. (See alternate
                                addresses under Pakistan).
                               Haji Khalil Construction       For all items     Presumption of   77 FR 25057, 4/
                                Company, Wazir Akbar Khan,     subject to the    denial           27/12.
                                Road Number 10, In front of    EAR. (See Sec.
                                National Bank, District 10,     744.11 of the
                                Kabul, Afghanistan.            EAR)..
                               Hanif Computer Zone (HCZ),     For all items     Presumption of   76 FR 71869,11/
                                Ghazni City, Afghanistan.      subject to the    denial.          21/11.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR)..
                               Habib ur Rahman, a.k.a., the   For all items     Presumption of   76 FR 71869,11/
                                following two aliases:         subject to the    denial.          21/11.
                               --Hanif; and                    EAR. (See Sec.
                               --Habib Rahman.                  744.11 of the
                               Ghazni City, Afghanistan.       EAR)..
                               Heim German Afghan Khalil      For all items     Presumption of   77 FR 25057, 4/
                                Company, Wazir Akbar Khan,     subject to the    denial           27/12.
                                District 10, Kabul,            EAR. (See Sec.
                                Afghanistan; and Shahr-e-       744.11 of the
                                Now, Kabul, Afghanistan, and   EAR)..
                                Paktiyakoot, Jalalabad Road,
                                District 9, Kabul,
                                Afghanistan.
                               Ibrahim Haqqani, a.k.a., the   For all items     Presumption of   77 FR 25057, 4/
                                following two aliases:         subject to the    denial           27/12.
                               --Hajji Sahib; and              EAR. (See Sec.
                               --Maulawi Haji Ibrahim           744.11 of the
                                Haqqani.                       EAR)..
                               Iqra Computer Products,        For all items     Presumption of   76 FR 71869,11/
                                a.k.a., the following two      subject to the    denial.          21/11
                                aliases:                       EAR. (See Sec.
                               --Iqra IT solutions; and         744.11 of the
                               --Iqra Computer Store.          EAR)..
                               A2 Ground Floor, City
                                Computer Plaza, Shar-e-Naw,
                                Kabul, Afghanistan.
                               Khalil Zadran, a.k.a., the     For all items     Presumption of   77 FR 25057, 4/
                                following eight aliases:       subject to the    denial           27/12.
                               --Samar Gul Khalil;             EAR. (See Sec.
                               --Khalil Samar Gul;              744.11 of the
                               --Samer Khalil;                 EAR).
                               --Samer Gul Khalil;
                               --Khlil Khalil;
                               --Kalil Khalil;
                               --Khalil Khualil; and
                               --Haji Khalil.
                               .............................
                               Shahreno, Kabul, Afghanistan.
                                (See alternate address in
                                Pakistan).
                               Khalil Zadran Company,         For all items     Presumption of   77 FR 25057, 4/
                                a.k.a., the following alias:   subject to the    denial           27/12.
                               --Khalil Construction.          EAR. (See Sec.
                               Afghanistan (See alternate       744.11 of the
                                address in Pakistan).          EAR)..

[[Page 385]]

 
                               Kurshid Ghoura, a.k.a., the    For all items     Presumption of   76 FR 71869,11/
                                following two aliases:         subject to the    denial.          21/11.
                               --Kurshed Ghoura; and           EAR. (See Sec.
                               --Kursheed Ghoura.               744.11 of the
                               501, 5th Floor, Amanullah       EAR)..
                                Sancharaki Market Opp Chaman
                                E Huzuri, Kabul,
                                Afghanistan; and Flat No. 41
                                Block No. 24 Macroyan 3,
                                Kabul, Afghanistan. (See
                                alternate addresses under
                                Pakistan).
                               Lapcom Computer Stores, A2     For all items     Presumption of   76 FR 71869',
                                Ground Floor, City Computer    subject to the    denial.          11/21/11.
                                Plaza, Shar-e-Naw, Kabul,      EAR. (See Sec.
                                Afghanistan. (See alternate     744.11 of the
                                address under Pakistan).       EAR)..
                               Muhammad Halim Ghoura, 501,    For all items     Presumption of   76 FR 71869',
                                5th Floor, Amanullah           subject to the    denial.          11/21/11.
                                Sancharaki Market Opp Chaman   EAR. (See Sec.
                                E Huzuri, Kabul,                744.11 of the
                                Afghanistan; and Flat No. 41   EAR)..
                                Block No. 24 Macroyan 3,
                                Kabul, Afghanistan. (See
                                alternate addresses under
                                Pakistan).
                               Ologh Beg International        For all items     Presumption of   76 FR 71869',
                                Forwarders Ltd., 501, 5th      subject to the    denial.          11/21/11.
                                Floor, Amanullah Sancharaki    EAR. (See Sec.
                                Market Opp Chaman E Huzuri,     744.11 of the
                                Kabul, Afghanistan. (See       EAR)..
                                alternate address under
                                Pakistan).
                               Onyx Construction Company,     For all items     Presumption of   77 FR 25057, 4/
                                Shahr-e-Now, Charahi Haji      subject to the    denial           27/12.
                                Yaqoub, In front of the AIB    EAR. (See Sec.
                                Bank, District 10, Kabul,       744.11 of the
                                Afghanistan; and Char Rahi     EAR)..
                                Ansari, Toaward Kolola
                                Poshta, Shar-Naw Kabul,
                                Afghanistan 11496.
                               Qazi Abdallah, a.k.a., the     For all items     Presumption of   76 FR 71869',
                                following four aliases:        subject to the    denial.          11/21/11.
                               --Khan Dilawar;                 EAR. (See Sec.
                               --Ibrahim Valid Javaid;          744.11 of the
                               --Jawid, Sa'id Jan 'Abd-al-     EAR)..
                                Salam; and
                               --Ibrahim Walid
                               Microrayan 3rd Apt. 45, Block
                                No. 21, Kabul, Afghanistan.
                               Triangle Technologies,         For all items     Presumption of   77 FR 25057, 4/
                                Afghanistan.                   subject to the    denial           27/12.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR)..
                               Zurmat Construction Company    For all items     Presumption of   77 FR 25057, 4/
                                offices, House No. 319, 10th   subject to the    denial           27/12.
                                Street Wazeer Akbar Khan,      EAR. (See Sec.
                                Kabul, Afghanistan; and         744.11 of the
                                Wazir Akbar Khan, District     EAR)..
                                10, Apartment 319, Kabul,
                                Afghanistan; and Tarin Cot
                                City, Afghanistan; and
                                Behind UNAMA Office, Pir
                                Bagh Office, Gardez,
                                Afghanistan; and House No.
                                01, Street No. 01, Muhaqeq
                                Road (Behind Pakistan and
                                Turkish Embassies), Mazar-e-
                                Sharif, Afghanistan; and
                                Hazratan Street (Behind
                                Jalalalabad Teaching
                                Hospital), Jalalalabad,
                                Afghanistan, and Aino Mena,
                                Street No. 22 (Blue Color
                                House Left Side of Road),
                                Kandahar, Afghanistan.
                               Zurmat Foundation, House No.   For all items     Presumption of   77 FR 25057, 4/
                                319, 10th Street Wazeer        subject to the    denial           27/12.
                                Akbar Khan, Kabul,             EAR. (See Sec.
                                Afghanistan; and Wazir          744.11 of the
                                Muhammad--Akbar Khan, Kabul,   EAR)..
                                Afghanistan; and Wazir Akbar
                                Khan, District 10, Apartment
                                319, Kabul, Afghanistan.

[[Page 386]]

 
                               Zurmat Group of Companies,     For all items     Presumption of   77 FR 25057, 4/
                                House No. 319, 10th Street     subject to the    denial           27/12.
                                Wazeer Akbar Khan, Kabul,      EAR. (See Sec.
                                Afghanistan.                    744.11 of the
                                                               EAR)..
                               Zurmat Material Testing        For all items     Presumption of   77 FR 25057, 4/
                                Laboratory, House 01, Street   subject to the    denial           27/12.
                                01, Kart-e-3 (opposite of      EAR. (See Sec.
                                Habibia High School), Dar-ul-   744.11 of the
                                Aman Road, Kabul,              EAR)..
                                Afghanistan; and House No.
                                02, Street No. 01, Kart-e-
                                Malemin, Khandahar,
                                Afghanistan.
ARMENIA......................  Bold Bridge International,     For all items     Presumption of   75 FR 1701, 1/
                                LLC, a.k.a. the following      subject to the    denial.          13/10.
                                alias:                         EAR. (SeeSec.                   77 FR 24590, 4/
                               --BB Bold Bridge                 744.11 of the                     25/2012.
                                International.                 EAR.).
                               Room 463, H. Hakobyan 3,
                                Yerevan, Armenia.
BELARUS......................  Belmicrosystems Research and   For all items     Presumption of   75 FR 36516, 6/
                                Design Center, Office 313,     subject to the    denial.          28/10.
                                12 Korzhenevsky Street,        EAR. (SeeSec.                   77 FR 58006, 9/
                                20108 Minsk, Republic of        744.11 of the                     19/12.
                                Belarus; and Korjenevsky       EAR)..
                                Str., 12, Minsk, 220108,
                                Republic of Belarus; and 12,
                                Korzhenevskogo Str., Minsk,
                                220108, Republic of Belarus.
                               SOE Semiconductor Devices      For all items     Presumption of   75 FR 36516, 6/
                                Factory, Office 313, 12        subject to the    denial.          28/10.
                                Korzhenevsky Street, 20108     EAR. (SeeSec.                   77 FR 58006, 9/
                                Minsk, Republic of Belarus;     744.11 of the                     19/12.
                                and Korjenevsky Str., 12,      EAR)..
                                Minsk, 220108, Republic of
                                Belarus; and 12,
                                Korzhenevskogo Str., Minsk,
                                220108, Republic of Belarus.
                               Vasili Kuntsevich, Office      For all items     Presumption of   75 FR 36516, 6/
                                313, 12 Korzhenevsky Street,   subject to the    denial.          28/10.
                                20108 Minsk, Republic of       EAR. (SeeSec.                   77 FR 58006, 9/
                                Belarus; and Korjenevsky        744.11 of the                     19/12.
                                Str., 12, Minsk, 220108,       EAR)..
                                Republic of Belarus; and 12,
                                Korzhenevskogo Str., Minsk,
                                220108, Republic of Belarus.
BELIZE.......................  Experian Holdings, Inc., N     For all items     Presumption of   77 FR 61256, 10/
                                Eyre Str, Blake Bldg, Suite    subject to the    denial.          9/2012.
                                302, Belize City, Belize       EAR. (See Sec.
                                99008; and Corner Hutson        744.11 of the
                                Eyre Str, Blake Bldg, Suite    EAR.).
                                302, Belize City, Belize
                                99008.
CANADA.......................  Abou El-Khir Al Joundi,        For all items     Presumption of   77 FR 23116
                                a.k.a., the following six      subject to the    denial.         4/18/12.
                                aliases:                       EAR. (See Sec.
                               --Abou El Kheir Joundi;          744.11 of the
                               --Abou Elkhir Al Joundi;        EAR).
                               --Abou Joundi Et Kheir;
                               --Al Joundi;
                               --Al Jundi; and
                               --Elkheir Aljoundi Abou.
                               .............................
                               2706 Carre Denise Pelletier,
                                Montreal, Quebec, H4R 2T5
                                Canada.
                               Alex Woolf, 2021 Atwater       For all items     Presumption of   77 FR 61256, 10/
                                Street, Suite 216, Montreal,   subject to the    denial.          9/2012.
                                Quebec, Canada H3H2P2.         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Alexandre Ivjenko, a.k.a.,     For all items     Presumption of   77 FR 61256, 10/
                                the following one alias:       subject to the    denial.          9/2012.
                               --Alexander Ivjenko, 7150 Rue   EAR. (See Sec.
                                Chouinard, Montreal, QC, H8N    744.11 of the
                                2Z6 Canada.                    EAR.).
                               Ali Bakhshien, 909-4005        For all items     Presumption of   73 FR 54504, 9/
                                Bayview Ave., Toronto,         subject to the    denial.          22/08. 76 FR
                                Canada M2M 3Z9; and HSBC       EAR. (SeeSec.                    71869, 11/21/
                                Tower, Suite 502, 3601          744.11 of the                     11.
                                Highway 7 East, Markham,       EAR)..
                                Ontario, L3R 0M3, Canada.
                               Anastasiya Ivjenko, 7150 Rue   For all items     Presumption of   77 FR 61256, 10/
                                Chouinard, Montreal, QC, H8N   subject to the    denial.          9/2012.
                                2Z6, Canada.                   EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).

[[Page 387]]

 
                               Anastassia Voronkevitch, 7320  For all items     Presumption of   77 FR 61256, 10/
                                St. Jacques St. W. Montreal    subject to the    denial.          9/2012.
                                QC, H4B1W1, Canada.            EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Atlas Electronic Systems       For all items     Presumption of   77 FR 61256, 10/
                                (AES), 7320 St. Jacques St.    subject to the    denial.          9/2012.
                                W. Montreal, QC, H4B1W1,       EAR. (See Sec.
                                Canada.                         744.11 of the
                                                               EAR.).
                               Canada Lab Instruments,        For all items     Presumption of   77 FR 23116
                                a.k.a., the following alias:   subject to the    denial.         4/18/12.
                                SCO North America              EAR. (See Sec.
                               .............................    744.11 of the
                               5995 Gouin Ouest, 212, Montreal, Quebec, H4J
                                2P8 Canada.
                               EKT 2, Inc., 371 Renforth      For all items     Presumption of   77 FR 24590, 4/
                                Drive, Etobicoke M9C 2L8,      subject to the    denial.          25/2012.
                                Toronto, Ontario, Canada       EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Enterprise Chips Hunter        For all items     Presumption of   77 FR 61256, 10/
                                (ECH), 2021 Atwater Street,    subject to the    denial.          9/2012.
                                Suite 216, Montreal, Quebec,   EAR. (See Sec.
                                Canada H3H2P2.                  744.11 of the
                                                               EAR.).
                               Kitro Corporation, 909-4005    For all items     Presumption of   73 FR 54504, 9/
                                Bayview Ave., Toronto,         subject to the    denial.          22/08. 76 FR
                                Canada M2M 3Z9; and HSBC       EAR. (SeeSec.                    71869, 11/21/
                                Tower, Suite 502, 3601          744.11 of the                     11.
                                Highway 7 East, Markham,       EAR)..
                                Ontario, L3R 0M3, Canada.
                               Liubov ``Luba'' Skvortsova,    For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Lubov Skvortsova, 7150 Rue     744.11 of the
                                Chouinard, Montreal, QC, H8N   EAR.).
                                2Z6 Canada.
                               Magtech, a.k.a., the           For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --M.A.G. Tech, 5762             EAR. (See Sec.
                                Royalmount Ave, Montreal,       744.11 of the
                                QC, H4P 1K5, Canada; and       EAR.).
                                5440 Queen Mart St, Office
                                103, Montreal, Canada.
                               Maria Pashovkina, 7150 Rue     For all items     Presumption of   77 FR 61256, 10/
                                Chouinard, Montreal, QC, H8N   subject to the    denial.          9/2012.
                                2Z6, Canada.                   EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Mercury Electronic Solutions,  For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Mercury Group                  744.11 of the
                                International, 380 Vansickle   EAR.).
                                Rd Unit 660, St. Catharines,
                                ON L2126P7, Canada; and 127
                                Rue Wilson, Dollard-des-
                                Ormeaux, Quebec H9A1W7,
                                Canada.
                               Natalie Sobolev, 5762          For all items     Presumption of   77 FR 61256, 10/
                                Royalmount Ave, Montreal, QC   subject to the    denial.          9/2012.
                                H4P 1K5, Canada; and 5440      EAR. (See Sec.
                                Queen Mart St., Office 103,     744.11 of the
                                Montreal, Canada.              EAR.).
                               Sputnik E, 7150 Rue            For all items     Presumption of   77 FR 61256, 10/
                                Chouinard, Montreal, QC H8N    subject to the    denial.          9/2012.
                                2Z6 Canada.                    EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Zurab Kartvelishvili, a.k.a.,  For all items     Presumption of   77 FR 61256, 10/
                                the following one alias:       subject to the    denial.          9/2012.
                               --George Kartveli, 7380         EAR. (See Sec.
                                Vansickle Rd. Unit 660, St.     744.11 of the
                                Catharines, ON L2126P7,        EAR.).
                                Canada; and 320 St. Jacques
                                St., W. Montreal QC, H4B1W1,
                                Canada; and 7380 Vansickle
                                Rd, Unit 660, St.
                                Catharines, ON L2126P7,
                                Canada; and 127 Rue Wilson,
                                Dollard-des-Ormeaux, Quebec
                                H9A1W7, Canada.

[[Page 388]]

 
CHINA, PEOPLE'S REPUBLIC OF..  13 Institute, China Academy    For all items     SeeSec.        66 FR 24265, 5/
                                of Launch Vehicle Technology   subject to the    744.3(d) of      14/01.
                                (CALT), a.k.a., the            EAR.              this part.      75 FR 78877, 12/
                                following six aliases:                                            17/10.
                               --13th Institute China
                                Aerospace Times Electronics
                                Corp (CATEC);
                               --713 Institute of Beijing;
                               --Institute of Control
                                Devices (BICD);
                               --Beijing Institute of
                                Aerospace Control Devices
                                (BIACD);
                               --Beijing Aerospace Control
                                Instruments Institute; and
                               --Design and Manufacture
                                Center of Navigation and
                                Control Device
                               33 Institute, a.k.a., the      For all items     SeeSec.        66 FR 24266, 5/
                                following three aliases:       subject to the    744.3(d) of      14/01.
                               --Beijing Automation Control    EAR having a      this part.      75 FR 78883,
                                Equipment Institute (BACEI);   classification                    12/17/10.
                               --Beijing Institute of          other than                        77 FR 58006, 9/
                                Automatic Control Equipment,   EAR99 or a                         19/12.
                                China Haiying                  classification
                                Electromechanical Technology   where the third
                                Academy; and                   through fifth
                               --No. 33 Research Institute     digits of the
                                of the Third Academy of        ECCN are
                                China. Aerospace Science and   ``999'', e.g.,
                                Industry Corp (CASIC).         XX999..
                               .............................
                               Yungang, Fengtai District,
                                Beijing.
                               35 Institute, a.k.a., the      For all items     SeeSec.        66 FR 24266, 5/
                                following four aliases:        subject to the    744.3(d) of      14/01.
                               --Beijing Hangxing Machine      EAR having a      this part.      75 FR 78883,
                                Building Corporation;          classification                    12/17/10.
                               --Beijing Huahang Radio         other than                        77 FR 58006, 9/
                                Measurements Research          EAR99 or a                         19/12.
                                Institute, China Haiying       classification
                                Electronic Mechanical          where the third
                                Technical Research Academy;    through fifth
                               --Huahang Institute of Radio    digits of the
                                Measurement; and               ECCN are
                               .............................   ``999'', e.g.,
                               --No. 35 Research Institute     XX999..
                                of the Third Academy of
                                China Aerospace Science and
                                Industry Corp (CASIC).
                               54th Research Institute of     For all items     SeeSec.        66 FR 24266, 5/
                                China, a.k.a., the following   subject to the    744.3(d) of      14/01.
                                three aliases:                 EAR having a      this part.      75 FR 78883,
                               --China Electronics             classification                    12/17/10.
                                Technology Group Corp.         other than                        77 FR 58006, 9/
                                (CETC) 54th Research           EAR99 or a                         19/12.
                                Institute;                     classification
                               --Communication, Telemetry      where the third
                                and Telecontrol Research       through fifth
                                Institute (CTI); and           digits of the
                               --Shijiazhuang Communication    ECCN are
                                Observation and Control        ``999'', e.g.,
                                Technology Institute.          XX999..
                               A.C. International, Room       For all items     Presumption of   73 FR 54503, 9/
                                1104, North Tower Yueziu       subject to the    denial.          22/08.
                                City Plaza, No. 445 Dong       EAR. (See Sec.
                                Feng Zhong Rd., Guangzhou,      744.11 of the
                                China                          EAR).
                               Asia International Trading     For all items     Presumption of   73 FR 54503, 9/
                                Company, Room 1104, North      subject to the    denial.          22/08.
                                Tower Yueziu City Plaza, No.   EAR. (See Sec.
                                445 Dong Feng Zhong Rd.,        744.11 of the
                                Guangzhou, China               EAR).

[[Page 389]]

 
                               Baotou Guanghua Chemical       For all items     SeeSec.        66 FR 24266, 5/
                                Industrial Corporation         subject to the    744.2(d) of      14/01.
                                (Parent Organization: China    EAR having a      this part.      75 FR 78883, 12/
                                National Nuclear Group         classification                     17/10.
                                Corporation (CNNC)), a.k.a.,   other than
                                the following five aliases:    EAR99.
                               --202 Plant, Baotou Nuclear
                                Energy Facility;
                               --Baotou Guanghua Chemical
                                Industrial Corporation;
                               --Baotou Guanghua Chemical
                                Industry Company;
                               --Baotou Nuclear Fuel Element
                                Plant; and
                               --China Nuclear Baotou
                                Guanghua Chemical Industry
                                Company
                               .............................
                               202 Factory Baotou, Inner
                                Mongolia.
                               Beijing Aerospace Automatic    For all items     SeeSec.        64 FR 28909,
                                Control Institute (BICD),      subject to the    744.3 of this   5/28/99.
                                a.k.a., the following four     EAR having a      part.           75 FR 78883,
                                aliases:                       classification                    12/17/10.
                               --12th Research Institute       other than                        77 FR 58006, 9/
                                China Academy of Launch        EAR99..                            19/12.
                                Vehicle Technology (CALT);
                               --Beijing Institute of Space
                                Automatic Control;
                               --Beijing Spaceflight
                                Autocontrol Research
                                Institute; and
                               --China Aerospace Science and
                                Technology Corp First
                                Academy 12th Research
                                Institute.
                               .............................
                               51 Yong Ding Road, Beijing;
                                and No. 50 Yongding Road,
                                Haidian District, Beijing,
                                China, 100854.
                               Beijing Institute of           For all items     SeeSec.        64 FR 28909, 5/
                                Structure and Environmental    subject to the    744.3 of this    28/99.
                                Engineering (BISE), a.k.a.,    EAR having a      part.           75 FR 78877, 12/
                                the following two aliases:     classification                     17/10.
                               --702nd Research Institute,     other than
                                China Academy of Launch        EAR99.
                                Vehicle Technology (CALT);
                                and
                               --Beijing Institute of
                                Strength and Environmental
                                Engineering
                               No. 30 Wanyuan Road, Beijing.
                               Beijing Power Machinery        For all items     SeeSec.        66 FR 24266, 5/
                                Institute, a.k.a., the         subject to the    744.3(d) of      14/01.
                                following three aliases:       EAR.              this part.      75 FR 78877, 12/
                               --31st Research Institute of                                       17/10.
                                China Aerospace Science and
                                Industry Corp (CASIC) or
                                China Haiying
                                Electromechanical Technology
                                Academy (a.k.a., China
                                Haiying Science & Technology
                                Corporation);
                               --Beijing Power Generating
                                Machinery Institute; and
                               --Beijing Power Machinery
                                Research Laboratory
                               Beijing University of          For all items     SeeSec.        66 FR 24266, 5/
                                Aeronautics and Astronautics   subject to the    744.3(d) of      14/01.
                                (BUAA), a.k.a., the            EAR.              this part.      70 FR 54629, 9/
                                following alias:                                                  16/05.
                               --Beihang University.                                             75 FR 78877, 12/
                               --37 Xueyuan Road, Haidan                                          17/10.
                                District, Beijing

[[Page 390]]

 
                               Chinese Academy of             For all items     Case-by-case     62 FR 35334,
                                Engineering Physics, a.k.a.,   subject to the    basis.          6/30/97.
                                the following seventeen        EAR..                             66 FR 24266, 5/
                                aliases:                                                          14/01.
                               --Ninth Academy;                                                  75 FR 78883,
                               --Southwest Computing Center;                                     12/17/10.
                               --Southwest Institute of                                          76 FR 21628, 4/
                                Applied Electronics;                                              18/11.
                               --Southwest Institute of                                          76 FR 50407, 8/
                                Chemical Materials;                                               15/11.
                               --Southwest Institute of                                          77 FR 58006, 9/
                                Electronic Engineering;                                           19/12.
                               --Southwest Institute of
                                Environmental Testing;
                               --Southwest Institute of
                                Explosives and Chemical
                                Engineering;
                               --Southwest Institute of
                                Fluid Physics;
                               --Southwest Institute of
                                General Designing and
                                Assembly;
                               --Southwest Institute of
                                Machining Technology;
                               --Southwest Institute of
                                Materials;
                               --Southwest Institute of
                                Nuclear Physics and
                                Chemistry (a.k.a., China
                                Academy of Engineering
                                Physics (CAEP)'s 902
                                Institute);
                               --Southwest Institute of
                                Research and Applications of
                                Special Materials Factory;
                               --Southwest Institute of
                                Structural Mechanics;
                               (all of preceding located in
                                or near Mianyang, Sichuan
                                Province)
                               --The High Power Laser
                                Laboratory, Shanghai;
                               --The Institute of Applied
                                Physics and Computational
                                Mathematics, Beijing; and
                               --901 Institute (P.O. Box 523
                                Chengdu, 6100003).
                               China Aerodynamics Research    For all items     SeeSec.        64 FR 28910, 5/
                                and Development Center         subject to the    744.3 of this    28/99.
                                (CARDC) Sichuan Province       EAR having a      part.
                                                               classification
                                                               other than
                                                               EAR99.
                               Chitron Electronics Company    For all items     Presumption of   75 FR 1701, 1/
                                Ltd, a.k.a., Chi-Chuang        subject to the    denial..         13/10.
                                Electronics Company Ltd        EAR. (See Sec.
                               (Chitron Shenzhen), 2127         744.11 of the
                                Sungang Rd, Huatong Bldg, 19/  EAR).
                                F Louhu Dist, Shenzhen,
                                China 518001; and 169
                                Fucheng Rd, Fenggu Bldg, 7/
                                F, Mianyang, China 621000;
                                and Zhi Chun Rd, No 2 Bldg
                                of Hoajing jiayuan, Suite
                                804, Haidian Dist,
                                Beijing, China 100086; and
                                40 North Chang'an Rd, Xi'an
                                Electronics Plaza Suite
                                516, Xi'an, China
                                710061; and 9 Huapu Rd,
                                Chengbei Electronics &
                                Apparatus Mall, 1/F Suite
                                39, Chengdu, China
                                610081; and 2 North Linping
                                Rd, Bldg 1, Suite 1706, Hongkou Dist,
                                Shanghai, China 200086 (See
                                alternate address under Hong
                                Kong)

[[Page 391]]

 
                               Corezing International,        For all items     Presumption of   76 FR 67062, 10/
                                (a.k.a., CoreZing              subject to the    denial           31/2011.
                                Electronics, Corezing          EAR. (See Sec.
                                International Group Company,    744.11 of the
                                Corezing International Pte     EAR)
                                Ltd, Corezing Technology Pte
                                Ltd and Core Zing), Room
                                1007, Block C2, Galaxy
                                Century Bldg., CaiTian Rd.,
                                FuTian District, Shenzhen,
                                China; and Room 1702, Tower
                                B, Honesty Building, Humen,
                                Dongguan, Guangdong, China
                                (See alternate addresses
                                under Hong Kong and
                                Singapore)
                               Fang Yu, 16 Gaoxin 4th Road,   For all items     Presumption of   75 FR 36519, 6/
                                Xian High Tech Industrial      subject to the    denial.          28/10.
                                Development Zone, Xian,        EAR. (See
                                China                          744.11 of the
                                                               EAR).
                               First Department, Chinese      For all items     SeeSec.        66 FR 24266, 5/
                                Academy of Launch Vehicle      subject to the    744.3(d) of      14/01.
                                Technology (CALT), a.k.a.,     EAR..             this part.      75 FR 78883,
                                the following three aliases:                                     12/17/10.
                               --1st General Design                                              77 FR 58006, 9/
                                Department (a.k.a., Planning                                      19/12.
                                Department No 1) of the
                                China Aerospace Science &
                                Technology Corporation's
                                First Academy (CALT);
                               --Beijing Institute of
                                Astronautic Systems
                                Engineering; and
                               --Beijing Institute of Space
                                System Engineering.
                               .............................
                               1 South Dahongmen Road,
                                Fengtai District, Beijing
                                100076.
                               Lim Yong Nam, (a.k.a. Lin      For all items     Presumption of   76 FR 67062, 10/
                                Rongnan, Steven Lim and Yong   subject to the    denial.          31/2011.
                                Nam Lim), YuJingHuaCheng       EAR. (See Sec.
                                Huaqiang South Road Futian,     744.11 of the
                                Shenzhen, China 518033; and    EAR).
                                Room 2613, NanGuangJieJia
                                Building ShenNan Road,
                                FuTian, Shenzhen, China
                                518033 (See alternate
                                addresses under Singapore)
                               Luo Jie, (a.k.a. Cherry, Ivy   For all items     Presumption of   76 FR 67062, 10/
                                Luo and Jie Luo), Room 1007,   subject to the    denial.          31/2011.
                                Block C2, Galaxy Century       EAR. (See Sec.
                                Bldg., CaiTian Rd., FuTian      744.11 of the
                                District, Shenzhen, China;     EAR).
                                and Room 1702, Tower B,
                                Honesty Building, Humen,
                                Dongguan, Guangdong, China
                                (See alternate addresses
                                under Hong Kong)
                               NEL Electronics, (a.k.a., NEL  For all items     Presumption of   76 FR 67062, 10/
                                Electronics Pte Ltd), 14K      subject to the    denial.          31/2011.
                                Block 2 YuJingHuaCheng         EAR. (See Sec.
                                Huaqiang South Road FuTian,     744.11 of the
                                Shenzhen, China 518033; and    EAR).
                                Room 2613, NanGuangJieJia
                                Building ShenNan Road,
                                FuTian, Shenzhen, China
                                518033 (See alternate
                                address under Singapore)
                               Northwest Institute of         For all items     SeeSec.        64 FR 28909,
                                Nuclear Technology in the      subject to the    744.2 of this   5/28/99.
                                Science Research (NINTF),      EAR..             part.           75 FR 78883,
                                Xi'an, Shanxi; and P.O. Box                                      12/17/10.
                                69-12, Xi'an, Shaanxi                                            77 FR 58006, 9/
                                Province 710024.                                                  19/12.

[[Page 392]]

 
                               Northwestern Polytechnical     For all items     SeeSec.        66 FR 24266, 5/
                                University, a.k.a., the        subject to the    744.3(d) of      14/01.
                                following three aliases:       EAR having a      this part.      75 FR 78883,
                               --Northwestern Polytechnic      classification                    12/17/10.
                                University;                    other than                        77 FR 58006, 9/
                               --Northwest Polytechnic         EAR99 or a                         19/12.
                                University; and                classification
                               --Northwest Polytechnical       where the third
                                University.                    through fifth
                               127 Yonyi Xilu, Xi'an 71002     digits of the
                                Shaanxi, China; and Youyi Xi   ECCN are
                                Lu, Xi'an, Shaanxi, China;     ``999'', e.g.,
                                and No. 1 Bianjia Cun,         XX999..
                                Xi'an; and West Friendship
                                Rd. 59, Xi'an; and 3 10 W
                                Apt 3, Xi'an.
                               Shanghai Academy of            For all items     SeeSec.        64 FR 28909, 5/
                                Spaceflight Technology         subject to the    744.3 of this    28/99.
                                SAST), a.k.a., the following   EAR having a      part.           75 FR 78877, 12/
                                four aliases:                  classification                     17/10.
                               --8th Research Academy of       other than
                                China Aerospace;               EAR99.
                               --Shanghai Astronautics
                                Industry Bureau;
                               --Shanghai Bureau of
                                Astronautics (SHBOA); and
                               --Shanghai Bureau of Space
                               .............................
                               Shanghai, Spaceflight Tower,
                                222 Cao Xi Road, Shanghai,
                                200233.
                               Shanghai Institute of Space    For all items     SeeSec.        64 FR 28909,
                                Power Sources, a.k.a., the     subject to the    744.3 of this   5/28/99.
                                following three aliases:       EAR having a      part.           75 FR 78883,
                               --811th Research Institute,     classification                    12/17/10.
                                8th Academy, China Aerospace   other than                        77 FR 58006, 9/
                                Science and Technology Corp.   EAR99..                            19/12.
                                (CASC);
                               --Shanghai Space Energy
                                Research Institute; and
                               --Shanghai Space Power Supply
                                Research Institute.
                               .............................
                               388 Cang Wu Road, Shanghai;
                                and Dongchuan Rd., 2965
                                Shanghai.
                               Sichuan University, No. 24     For all items     Case-by-case     77 FR 58006, 9/
                                South Section 1, Yihuan        subject to the    basis..          19/12.
                                Road, Chengdu, China,          EAR..
                                610065; and No. 29
                                Jiuyanqiao Wangjiang Road,
                                Chengdu, China, 610064; and
                                People's South Road,
                                Chengdu, China, 610041; and
                                Shuangliu County, Chuanda
                                Road, Chengdu, China,
                                610207.
                               Southwest Research Institute   For all items     SeeSec.        66 FR 24267, 5/
                                of Electronics Technology,     subject to the    744.3(d) of      14/01.
                                a.k.a., the following three    EAR having a      this part.      75 FR 78883,
                                aliases:                       classification                    12/17/10.
                               --10th Research Institute of    other than                        77 FR 58006, 9/
                                China Electronic Technology    EAR99 or a                         19/12.
                                Group Corp (CETC);             classification
                               --CETC 10th Research            where the third
                                Institute; and                 through fifth
                               --Southwest Institute of        digits of the
                                Electronic Technology          ECCN are
                                (SWIET);                       ``999'', e.g.,
                               .............................   XX999..
                                No. 6 Yong Xin Street,
                                Chengdu; and No. 90 Babao
                                Street, Chengdu; and 48
                                Chadianzi Street East,
                                Jinniu District, Chengdu,
                                610036.
                               Toptics, Inc., Chuangye        For all items     Presumption of   75 FR 36519, 6/
                                Building 7/1F, 1197 Bin'An     subject to the    denial.          28/10.
                                Road, Binjiang, Hangzhou,      EAR. (See
                                Zhejiang 310052, China         744.11 of the
                                                               EAR).
                               University of Electronic       For all items     Case-by-case     77 FR 58006, 9/
                                Science and Technology of      subject to the    basis..          19/12.
                                China, No. 4, 2nd Section,     EAR..
                                North Jianshe Road, Chengdu,
                                610054.

[[Page 393]]

 
                               Wong Yung Fai, a.k.a., Tonny   For all items     Presumption of   75 FR 1701, 1/
                                Wong, Unit 12B, Block 11,      subject to the    denial..         13/10.
                                East Pacific Garden, Xiang     EAR. (See Sec.
                                Lin Road, Futian District,      744.11 of the
                                Shenzhen, China                EAR).
                               Xi'an Xiangyu Aviation         For all items     Presumption of   75 FR 36519, 6/
                                Technology Group, a.k.a.,      subject to the    denial.          28/10.
                                Xi'an Xiangyu Aviation         EAR. (See
                                Technology Company, 16         744.11 of the
                                Gaoxin 4th Road, Xian High     EAR).
                                Tech Industrial Development
                                Zone, Xian, China
                               Xi'an Research Institute of    For all items     SeeSec.        66 FR 24267, 5/
                                Navigation Technology,         subject to the    744.3(d) of      14/01.
                                a.k.a., the following two      EAR having a      this part.      66 FR 24267, 5/
                                aliases:                       classification                     14/01.
                               --20th Research Institute of    other than                        75 FR 78883,
                                China Electronic Technology    EAR99..                           12/17/10.
                                Group Corp (CETC); and                                           77 FR 58006, 9/
                               --CETC 20th Research                                               19/12.
                                Institute.
                               Baisha Rd., Xi'an, Shaanxi.
                               Xian Semi Electronic Co.,      For all items     Presumption of   76 FR 71869, 11/
                                Ltd., a.k.a., the following    subject to the    denial.          21/11.
                                three aliases:                 EAR. (See Sec.
                               --Semi Electronics Co.;          744.11 of the
                               --Semi Electronics              EAR)..
                                International Co. Limited;
                                and
                               --Exodus Microelectronics
                                Co., Ltd.
                               Room 24F, Duhui 100 Building
                                Block B, ZhongHang Road,
                                Futian District, Shenzhen
                                City GuangDong Province,
                                China; Room 1810 Lang Chen
                                Building, No. 13 Gaoxin
                                Road, High Technology
                                Development Zone, Xian,
                                China; Room 24F-27E Duhui B,
                                Zhonghang Road, Futian
                                District, Shenzhen City,
                                China; and Room 1802 Xigema
                                Building No. 25, Gaoxin
                                Road, High-Tech Development
                                Zone, Xian, China. (See
                                alternate address under Hong
                                Kong).
                               Xiangdong Machinery Factory,   For all items     SeeSec.        66 FR 24267, 5/
                                within the China Aerospace     subject to the    744.3(d) of      14/01.
                                Science and Industry Corp's    EAR..             this part.      75 FR 78883,
                                (CASIC) Third Academy,                                           12/17/10.
                                a.k.a., the following two                                        77 FR 58006, 9/
                                aliases:                                                          19/12.
                               --China Haiying
                                Electromechanical Technology
                                Academy; and
                               --China Haiying Science &
                                Technology Corporation
                                (a.k.a., the following four
                                aliases: 239 Factory;
                                Beijing Xinghang
                                Electromechanical Equipment
                                Factory; Beijing Hangxing
                                Machinery Manufacturing
                                Corporation; and Hangxing
                                Machine Building Company).
                               Zhou Zhenyong, (a.k.a., Benny  For all items     Presumption of   76 FR 67062, 10/
                                Zhou and Zhenyong Zhou),       subject to the    denial.          31/2011.
                                Room 1007, Block C2, Galaxy    EAR. (See Sec.
                                Century Bldg., CaiTian Rd.,     744.11 of the
                                FuTian District, Shenzhen,     EAR).
                                China; and Room 1702, Tower
                                B, Honesty Building, Humen,
                                Dongguan, Guangdong, China
                                (See alternate addresses
                                under Hong Kong)
CYPRUS.......................  Didessar Limited, Archbishop   For all items     Presumption of   77 FR 61256, 10/
                                Makarios III Ave, Nicosia,     subject to the    denial.          9/2012.
                                Cyprus.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Leondica Holding Ltd, 25       For all items     Presumption of   77 FR 61256, 10/
                                Kolonakiou Str, Za Vos         subject to the    denial.          9/2012.
                                Kolonakioy Center, Limassol,   EAR. (See Sec.
                                Cyprus.                         744.11 of the
                                                               EAR.).

[[Page 394]]

 
                               Niki Panteli Kyriakou, 91,     For all items     Presumption of   76 FR 50410, 8/
                                Evgeniou Voulgareous,          subject to the    denial.          15/11.
                                Limassol 4153, Cyprus (See     EAR. (See Sec.
                                alternate address under         744.11 of the
                                United Kingdom)                EAR).
EGYPT........................  AL-AMIR ELECTRONICS, 46        For all items     Presumption of   77 FR 24590, 4/
                                Falaki St. BabLouk Area,       subject to the    denial.          25/2012.
                                Cairo, Egypt                   EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
ESTONIA......................  Yaxart OU, Kalevipoja 12A,     For all items     Presumption of   77 FR 61256, 10/
                                13625 Tallinn, Estonia.        subject to the    denial.          9/2012.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
FINLAND......................  Aleksei Kolominen, 20          For all items     Presumption of   77 FR 61256, 10/
                                Nuolitie, Vantaa, Finland      subject to the    denial.          9/2012.
                                01740.                         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Andrey Kirievski,              For all items     Presumption of   77 FR 61256, 10/
                                Lastaajanvayla 22,             subject to the    denial.          9/2012.
                                Lappeenranta, Finland 53420.   EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Eliron Logistics Oy, Vanha     For all items     Presumption of   77 FR 61256, 10/
                                Porvoontie 229, Vantaa,        subject to the    denial.          9/2012.
                                Finland 01380.                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Irina Pavlova, Lastaajanvayla  For all items     Presumption of   77 FR 61256, 10/
                                22, Lappeenranta, Finland      subject to the    denial.          9/2012.
                                53420.                         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Kuusiaaren Sarnetex & Ter Oy,  For all items     Presumption of   77 FR 61256, 10/
                                Kaasuntintie 8A, Helsinski,    subject to the    denial.          9/2012.
                                Finland 00770.                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Lemon LLC Oy,                  For all items     Presumption of   77 FR 61256, 10/
                                Peltoinlahdentie 19, FI-       subject to the    denial.          9/2012.
                                54800 Savitaipale.             EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Olkerboy Oy/Nurminen Oy, 231B  For all items     Presumption of   77 FR 61256, 10/
                                Vanha Porvoontie, Vantaa,      subject to the    denial.          9/2012.
                                Finland 01380.                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Russian Cargo Oy, 22           For all items     Presumption of   77 FR 61256, 10/
                                Lastaajanvayla,                subject to the    denial.          9/2012.
                                Lappeenranta, Finland 53420.   EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               SM Way Oy, Lastaajanvayla 22,  For all items     Presumption of   77 FR 61256, 10/
                                Lappeenranta, Finland 53420.   subject to the    denial.          9/2012.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Transsphere Oy, a.k.a., the    For all items     Presumption of   77 FR 61256, 10/
                                following two aliases:         subject to the    denial.          9/2012.
                               --Transsphere Limited Oy; and   EAR. (See Sec.
                               --Transsphere Oy Ltd., 20        744.11 of the
                                Nuolitie, Vantaa, Finland      EAR.).
                                01740.
                               Vitaliy Dankov, Vanha          For all items     Presumption of   77 FR 61256, 10/
                                Porvoontie 231B, Vantaa,       subject to the    denial.          9/2012.
                                Finland 01380.                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
FRANCE.......................  Aerotechnic France SAS, 8 Rue  For all items     Presumption of   76 FR 37633,
                                de la Bruyere, 31120           subject to the    denial.          June 28, 2011.
                                Pinsaguel, France              EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               IKCO France, 147 Avenue        For all items     Presumption of   77 FR 24590, 4/
                                Charles de Gaulle, 92200,      subject to the    denial.          25/2012.
                                Neuilly-Sur-Seine, France      EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Laurence Mattiucci, 8 Rue de   For all items     Presumption of   77 FR 24590, 4/
                                la Bruyere, 31120 Pinsaguel,   subject to the    denial.          25/2012.
                                Toulouse, France               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Luc Teuly, 8 Rue de la         For all items     Presumption of   76 FR 37633,
                                Bruyere, 31120 Pinsaguel,      subject to the    denial.          June 28, 2011.
                                France                         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).

[[Page 395]]

 
                               Philippe Sanchez, 8 Rue de la  For all items     Presumption of   76 FR 37633,
                                Bruyere, 31120 Pinsaguel,      subject to the    denial.          June 28, 2011.
                                France                         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Toulouse Air Spares SAS, 8     For all items     Presumption of   77 FR 24590, 4/
                                Rue de la Bruyere, 31120       subject to the    denial.          25/2012.
                                Pinsaguel, Toulouse, France    EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
GERMANY......................  Albrecht Import-Export,        For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Elena Albrecht Import-         744.11 of the
                                Export, Gmunder Str. 25,       EAR.).
                                Heubach, Germany 73540.
                               Alexander Brovarenko,          For all items     Presumption of   77 FR 61256.
                                Fasanenweg 9L, Kelsterbach,    subject to the    denial.
                                Germany D-65451; and           EAR. (See Sec.
                                Fasanenweg 9, Gate 23,          744.11 of the
                                Kelsterbach, Germany 65451;    EAR.).
                                and Fasanenweg 7,
                                Kelsterbach, Germany D-
                                65451; and IM Taubengrund 35
                                Gate 1-2, Kelsterbach,
                                Germany 65451.
                               Christof Schneider,            For all items     Presumption of   74 FR 35799, 7/
                                Margaretenweg 10,     subject to the    denial.          21/09.
                                42929 Wermelskirchen,          EAR. (See Sec.
                                Germany                         744.11 of the
                                                               EAR).
                               Djamshid Nezhad, a.k.a. the    Presumption of    For all items    73 FR 54504,
                                following alias:               denial.           subject to the  9/22/08.
                               --Nezhad Djamshid.                                EAR. (SeeSec. 77 FR 24590, 4/
                               .............................                       744.11 of      25/2012.
                                Poppentrade 25, D-24148                          the EAR).
                                Kiel, Germany; and Moesemann
                                2, 24144, Hamburg, Germany.
                               Elena Albrecht, a.k.a., the    For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Elena Grinenko, Gmunder       EAR. (See Sec.
                                Str. 25, Heubach, Germany       744.11 of the
                                73540.                         EAR.).
                               Hans Werner Schneider, Bertha  For all items     Presumption of   74 FR 35799, 7/
                                von Suttner Weg 1,    subject to the    denial.          21/09.
                                42929 Wermelskirchen,          EAR. (See Sec.
                                Germany                         744.11 of the
                                                               EAR).
                               IKCO Trading GmbH,             For all items     Presumption of   73 FR 54504, 9/
                                Schadowplatz 5, 40212          subject to the    denial.          22/08.
                                Dusseldorf, Germany; and       EAR. (SeeSec.                   77 FR 24590, 4/
                                Kaiserswerther Str. 117,        744.11 of the                     25/2012.
                                40474, D[uuml]sseldorf,        EAR).
                                Germany
                               Nezhad Enterprise Company,     For all items     Presumption of   73 FR 54504, 9/
                                a.k.a. the following three     subject to the    denial.          22/08.
                                aliases:                       EAR. (SeeSec.                   77 FR 24590, 4/
                               --Nezhad Co.;                    744.11 of the                     25/2012.
                               --Nezhad Enterprise; and        EAR).
                               --Nezhad Trading
                               .............................
                               Poppentrade 25, D-24148 Kiel,
                                Germany; and Moesemann 2,
                                24144, Hamburg, Germany.
                               Russ Cargo Service GMBH,       For all items     Presumption of   77 FR 61256, 10/
                                Fasanenweg 9L, Kelsterbach,    subject to the    denial.          9/2012.
                                Germany D-65451; and           EAR. (See Sec.
                                Fasanenweg 9, Gate 23,          744.11 of the
                                Kelsterbach, Germany 65451;    EAR.).
                                and Fasanenweg 7,
                                Kelsterbach, Germany D-
                                65451; and IM Taubengrund 35
                                Gate 1-2, Kelsterbach,
                                Germany 65451.
                               Schneider GMBH, Thomas Mann    For all items     Presumption of   74 FR 35799, 7/
                                Str. 35-37, 42929              subject to the    denial.          21/09.
                                Wermelskirchen, Germany; and   EAR. (See Sec.
                                P.O. Box 1523,                  744.11 of the
                                Wermelskirchen, 42908 DE;      EAR).
                                and Thomas Mann Str., 35-37,
                                P.O. Box 1523,
                                Wermelskirchen, 42908 DE
GREECE.......................  Sergei (Sergi) Ivanovich       For all items     Presumption of   76 FR 50410, 8/
                                Tomchani, a.k.a., Sergey       subject to the    denial.          15/11.
                                Ivanovich Tomchani, 58,        EAR. (See Sec.
                                Vouliagmenis Ave Voula,         744.11 of the
                                16673, Athens, Greece (See     EAR).
                                alternate addresses under
                                Ukraine and United Kingdom)

[[Page 396]]

 
                               Sergey Grinenko, a.k.a., the   For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Sergey Albrecht, Gmunder      EAR. (See Sec.
                                Str. 25, Heubach, Germany       744.11 of the
                                73540.                         EAR.).
                               Sky Wings Airlines SA, 58,     For all items     Presumption of   76 FR 50410, 8/
                                Vouliagmenis Ave Voula,        subject to the    denial.          15/11.
                                16673, Athens, Greece          EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Socrates Vasilakis, 58,        For all items     Presumption of   76 FR 50410, 8/
                                Vouliagmenis Ave Voula,        subject to the    denial.          15/11.
                                16673, Athens, Greece          EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Top Electronics Components     For all items     Presumption of   77 FR 61256, 10/
                                S.A., 66 Alkminis &            subject to the    denial.          9/2012.
                                Aristovoulov Str, Kato         EAR. (See Sec.
                                Petralona, Athens, Greece       744.11 of the
                                11853.                         EAR.).
HONG KONG....................  Able City Development          For all items     Presumption of   74 FR 35799, 7/
                                Limited, Unit C, 9/F Neich     subject to the    denial.          21/09.
                                Tower, 128 Gloucester Road,    EAR. (See Sec.
                                Wanchai, Hong Kong; and Unit    744.11 of the
                                401, Harbour Ctr., Tower 2,    EAR).
                                8 Hok Cheung Street, Hung
                                Hom, Kowloon, Hong Kong
                               ACTeam Logistics Ltd., Unit    For all items     Presumption of   75 FR 7359, 2/
                                B1-B3, 21/F, Block B, Kong     subject to the    denial.          19/10.
                                Nam Industrial Building, 603-  EAR. (See Sec.
                                609 Castle Peak Road, Tsuen     744.11 of the
                                Wan, N.T., Hong Kong           EAR).
                               Action Global, (a.k.a.,        For all items     Presumption of   76 FR 67062, 10/
                                Action Global Co., Limited),   subject to the    denial.          31/2011.
                                C/O Win Sino Flat 12, 9/F,     EAR. (See Sec.
                                PO Hong Centre, 2 Wang Tung     744.11 of the
                                Street, Kowloon Bay, KLN,      EAR).
                                Hong Kong; and Flat/RM
                                1510A, 15/F Ho King COMM
                                Ctr, 2-16 Fa Yuen Street,
                                Mongkok KL, Hong Kong (See
                                alternate address under
                                Singapore)
                               Amaze International, Flat/Rm   For all items     Presumption of   76 FR 67062, 10/
                                D, 11/F 8 Hart Avenue 8-10     subject to the    denial.          31/2011.
                                Hart Avenue, Tsim Sha Tsui     EAR. (See Sec.
                                KL, Hong Kong (See alternate    744.11 of the
                                address under Singapore)       EAR).
                               Antony Emmanuel, No: 3 & 4;    For all items     Presumption of   73 FR 54505, 9/
                                12F Commercial VIP Building,   subject to the    denial.          22/08, 74 FR
                                112-116 Canton Rd., Tsim Sha   EAR. (SeeSec.                    11474, 3/18/
                                Tsui, Hong Kong                 744.11 of the                     09.
                                                               EAR).
                               Biznest, LTD, Room 927 9/F     For all items     Presumption of   76 FR 44261, 7/
                                Far East Consortium            subject to the    denial.          25/11.
                                Building, 121 Des Voeux Road   EAR. (See Sec.
                                C, Central District, Hong       744.11 of the
                                Kong                           EAR).
                               Bruce Lam, 11/F Excelsior      For all items     Presumption of   73 FR 54503, 9/
                                Bldg., 68-76 Sha Tsui Rd.,     subject to the    denial.          22/08.
                                Tsuen Wan, New Territories,    EAR. (See Sec.
                                Hong Kong                       744.11 of the
                                                               EAR).
                               Centre Bright Electronics      For all items     Presumption of   75 FR 1701, 1/
                                Company Limited, Unit 7A,      subject to the    denial..         13/10.
                                Nathan Commercial Building     EAR. (See Sec.
                                430-436 Nathan Road,            744.11 of the
                                Kowloon, Hong Kong; and Room   EAR).
                                D, Block 1, 6/F
                                International Industrial
                                Centre, 2-8 Kwei Tei Street,
                                Shatin New Territories, Hong
                                Kong
                               Chitron Electronics Company    For all items     Presumption of   75 FR 1701, 1/
                                Ltd, a.k.a., Chi-Chuang        subject to the    denial..         13/10
                                Electronics Company Ltd        EAR. (See Sec.
                                (Chitron-Shenzhen), 6 Shing     744.11 of the
                                Yip St. Prosperity Plaza 26/   EAR).
                                F, Suite 06, Kwun
                                Tong, Kowloon, Hong Kong
                                (See alternate address under
                                China)
                               Creative Electronics, Room     For all items     Presumption of   73 FR 54503, 9/
                                2202c, 22/F, Nan Fung          subject to the    denial.          22/08.
                                Centre, 264-298 Castle Peak    EAR. (See Sec.
                                Road, Hong Kong and G/F 1--J    744.11 of the
                                Wong Chuk Street Shamshuipo,   EAR).
                                Kowloon, Hong Kong

[[Page 397]]

 
                               Cho-Man Wong Room 2608,        For all items     Presumption of   76 FR 63186 10/
                                Technology Plaza 29-35 Sha     subject to the    denial.          12/11.
                                Tsui Road Tsuen Wan, Hong      EAR. (See Sec.
                                Kong                            744.11 of the
                                                               EAR).
                               Corezing International,        For all items     Presumption of   76 FR 67062, 10/
                                (a.k.a., CoreZing              subject to the    denial.          31/2011.
                                Electronics, Corezing          EAR. (See Sec.
                                International Group Company,    744.11 of the
                                Corezing International Pte     EAR).
                                Ltd, Corezing Technology Pte
                                Ltd and Core Zing), G/F, No.
                                89, Fuyan Street, Kwun Tong,
                                Hong Kong; and Flat 12, 9F
                                Po Hong Kong, 2 Wang Tung
                                Street, Kowloon Bay, Hong
                                Kong; and Flat/RM B 8/F,
                                Chong Ming Bldg., 72 Cheung
                                Sha Wan Road KL, Hong Kong;
                                and FlatiRM 2309, 23/F, Ho
                                King COMM Center, 2-16 Fa
                                Yuen Street, Mongkok KLN,
                                Hong Kong (See alternate
                                addresses under China and
                                Singapore)
                               Dick Kuo, Room 9-11, 5/F,      For all items     Presumption of   75 FR 7359, 2/
                                Block B, Hoplite Industrial    subject to the    denial.          19/10.
                                Centre, 3-5 Wang Tai Road,     EAR. (See Sec.
                                Kowloon, Hong Kong              744.11 of the
                                                               EAR).
                               Dick Leung, GF Seapower        For all items     Presumption of   75 FR 7359, 2/
                                Industrial Building 177, Hoi   subject to the    denial.          19/10.
                                Bun Road, Kowloon, Hong Kong   EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Exodus Microelectronics        For all items     Presumption of   75 FR 1701, 1/
                                Company Limited, Unit 9B,      subject to the    denial..         13/10
                                Nathan Commercial Building     EAR. (See Sec.
                                430-436 Nathan Road,            744.11 of the
                                Kowloon, Hong Kong; and        EAR).
                                Exodus Microelectronics
                                Company Limited, Unit 6B,
                                Block 1, International
                                Centre 2-8 Kwei Tei Street,
                                Shatin, New Territories,
                                Hong Kong; and Exodus
                                Microelectronics Company
                                Limited, Unit 6B, Block 1,
                                International Industrial
                                Centre, 2-8 Kwei Tei Street,
                                Shatin, Hong Kong
                               Hang Tat Electronics           For all items     Presumption of   76 FR 63186, 10/
                                Enterprises Co. Room 2608,     subject to the    denial.          12/01.
                                Technology Plaza 29-35 Sha     EAR. (See Sec.
                                Tsui Road Tsuen Wan, Hong       744.11 of the
                                Kong                           EAR).
                               Hong Chun Tai, Unit 27B,       For all items     Presumption of   75 FR 1701, 1/
                                Block 8, Monte Vista, 9 Sha    subject to the    denial..         13/10.
                                On Street, Ma On Shan New      EAR. (See Sec.
                                Territories, Hong Kong; and     744.11 of the
                                Unit 7A, Nathan Commercial     EAR).
                                Building, 430-436 Nathan
                                Road Kowloon, Hong Kong; and
                                Room D, Block 1, 6/F
                                International Industrial
                                Centre, 2-8 Kwei Tei Street,
                                Shatin, New Territories,
                                Hong Kong; and Unit 9B,
                                Nathan Commercial Building,
                                430-436 Nathan Road Kowloon,
                                Hong Kong
                               Joe Shih, Room 9-11, 5/F,      For all items     Presumption of   75 FR 7359, 2/
                                Block B, Hoplite Industrial    subject to the    denial.          19/10.
                                Centre, 3-5 Wang Tai Road,     EAR. (See Sec.
                                Kowloon, Hong Kong              744.11 of the
                                                               EAR).
                               Kong Fat Electronic Trading    For all items     Presumption of   73 FR 54503, 9/
                                Limited, Unit 5, 1/F, Block    subject to the    denial.          22/08.
                                A, Hoplite Industrial          EAR. (See Sec.
                                Centre, 3-5 Wang Tai Rd.,       744.11 of the
                                Kowloon Bay, Kowloon, Hong     EAR).
                                Kong

[[Page 398]]

 
                               Lim Kow Seng, (a.k.a., Alvin   For all items     Presumption of   76 FR 67062, 10/
                                Stanley, Eric Lim, James       subject to the    denial.          31/2011.
                                Wong, Mike Knight and Seng     EAR. (See Sec.
                                Lim Kow), Flat/Rm 3208 32/F,    744.11 of the
                                Central Plaza, 18 Harbour      EAR).
                                Road, Wanchai, Hong Kong;
                                and Flat/RM 2309, 23/F, Ho
                                King COMM Center, 2-16 Fa
                                Yuen Street, Mongkok KLN,
                                Hong Kong (See alternate
                                addresses under Singapore)
                               Luo Jie, (a.k.a., Cherry, Ivy  For all items     Presumption of   76 FR 67062, 10/
                                Luo and Jie Luo), Flat/RM      subject to the    denial.          31/2011.
                                1510A, 15/F Ho King COMM       EAR. (See Sec.
                                Ctr, 2-16 Fa Yuen Street,       744.11 of the
                                Mongkok KL, Hong Kong; and C/  EAR).
                                O Win Sino Flat 12, 9/F, PO
                                Hong Centre, 2 Wang Tung
                                Street, Kowloon Bay, KLN,
                                Hong Kong; and Flat/Rm D, 11/
                                F 8 Hart Avenue, 8-10 Hart
                                Avenue, Tsim Sha Tsui KL,
                                Hong Kong; and G/F, No. 89,
                                Fuyan Street, Kwun Tong,
                                Hong Kong; and Flat 12, 9F
                                Po Hong Kong, 2 Wang Tung
                                Street, Kowloon Bay, Hong
                                Kong; and Flat/RM B 8/F,
                                Chong Ming Bldg., 72 Cheung
                                Sha Wan Road, KL, Hong Kong;
                                and Flat/Rm 3208 32/F
                                Central Plaza, 18 Harbour
                                Road, Wanchai, Hong Kong
                                (See alternate addresses
                                under China)
                               OEM Hub Co Ltd, Rm 3208 32/F   For all items     Presumption of   76 FR 67062, 10/
                                Central Plaza, 18 Harbour      subject to the    denial.          31/2011.
                                Road, Wanchai, Hong Kong;      EAR. (See Sec.
                                and Flat/RM 2309, 23/F, Ho      744.11 of the
                                King COMM Center, 2-16 Fa      EAR).
                                Yuen Street, Mongkok KLN,
                                Hong Kong
                               OnTime Electronics Technology  For all items     Presumption of   75 FR 36519, 6/
                                Company, Room 609-610 6/F      subject to the    denial.          28/10.
                                Boss Commercial Center, 28     EAR. (See
                                Ferry Street, Jordon,          744.11 of the
                                Kowloon, Hong Kong             EAR).
                               Sergey Koynov, a.k.a., the     For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Sergey V. Coyne, Room 704 7/  EAR. (See Sec.
                                F, Landwide Commercial          744.11 of the
                                Building, 118-120 Austin Rd,   EAR.).
                                Tsim Sha Tsui, Hong Kong
                                (See alternate address in
                                Russia).
                               Serko Limited, Room 704 7/F,   For all items     Presumption of   77 FR 61256, 10/
                                Landwide Commercial            subject to the    denial.          9/2012.
                                Building, 118-120 Austin Rd,   EAR. (See Sec.
                                Tsim Sha Tsui, Hong Kong.       744.11 of the
                                                               EAR.).
                               Signet Express Co., Ltd.,      For all items     Presumption of   75 FR 7359, 2/
                                Room 9-11, 5/F, Block B,       subject to the    denial.          19/10.
                                Hoplite Industrial Centre, 3-  EAR. (See Sec.
                                5 Wang Tai Road, Kowloon,       744.11 of the
                                Hong Kong                      EAR).
                               Sik Yin Ngai, a.k.a. Spencer   For all items     Presumption of   74 FR 35799, 7/
                                Ngai, Unit 401, Harbour        subject to the    denial.          21/09.
                                Ctr., Tower 2, 8 Hok Cheung    EAR. (See Sec.
                                Street, Hung Hom, Kowloon,      744.11 of the
                                Hong Kong                      EAR).
                               Siu Ching Ngai, a.k.a. Terry   For all items     Presumption of   74 FR 35799, 7/
                                Ngai, Unit C, 9/F Neich        subject to the    denial.          21/09.
                                Tower, 128 Gloucester Road,    EAR. (See Sec.
                                Wanchai, Hong Kong              744.11 of the
                                                               EAR).
                               Sysdynamic Limited, Unit       For all items     Presumption of   74 FR 35799, 7/
                                716A, 7/F Enterprise Place     subject to the    denial.          21/09.
                                (Building 9), No. 5 Science    EAR. (See Sec.
                                Park West Avenue, Hong Kong     744.11 of the
                                Science Park, Shatin, New      EAR).
                                Territories, Hong Kong; and
                                Unit 401, Harbour Ctr.,
                                Tower 2, 8 Hok Cheung
                                Street, Hung Hom, Kowloon,
                                Hong Kong
                               Tam Shue Ngai, Unit C, 9/F     For all items     Presumption of   74 FR 35799, 7/
                                Neich Tower, 128 Gloucester    subject to the    denial.          21/09.
                                Road, Wanchai, Hong Kong       EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).

[[Page 399]]

 
                               Tam Wai Tak, a.k.a., Thomsom   For all items     Presumption of   75 FR 36519, 6/
                                Tam, Room 609-610 6/F, Boss    subject to the    denial.          28/10.
                                Commercial Center, 28 Ferry    EAR. (See
                                Street, Jordon, Kowloon,       744.11 of the
                                Hong Kong                      EAR).
                               Tex-Co Logistics Ltd., GF      For all items     Presumption of   75 FR 7359, 2/
                                Seapower Industrial Building   subject to the    denial.          19/10.
                                177, Hoi Bun Road, Kowloon,    EAR. (See Sec.
                                Hong Kong, and Room 2202,       744.11 of the
                                22F, Causeway Bay Plaza 1,     EAR).
                                489 Hennessey Road, Causeway
                                Bay, Hong Kong, and Room
                                B03, 6/F, Cheong Wah Factory
                                Building, 39-41 Sheung Heung
                                Road, Tokwawan, Kowloon,
                                Hong Kong
                               United Sources Industrial      For all items     Presumption of   73 FR 54503, 9/
                                Enterprises, 11/F, Excelsior   subject to the    denial.          22/08.
                                Building, 68-76 Sha Tsui       EAR. (See Sec.
                                Road, Hong Kong                 744.11 of the
                                                               EAR).
                               Victory Wave Holdings          For all items     Presumption of   75 FR 1701, 1/
                                Limited, Unit 2401 A, Park-    subject to the    denial..         13/10
                                In Commercial Centre, 56       EAR. (See Sec.
                                Dundas Street, Hong Kong;       744.11 of the
                                and Unit 2401A, 24/F Park-In   EAR).
                                Commercial Centre, 56 Dundas
                                Street, Mongkok, Kowloon,
                                Hong Kong
                               Wong Wai Chung, a.k.a., David  For all items     Presumption of   75 FR 1701, 1/
                                Wong, Unit 27B, Block 8,       subject to the    denial..         13/10.
                                Monte Vista, 9 Sha On          EAR. (See Sec.
                                Street, Ma On Shan, New         744.11 of the
                                Territories, Hong Kong; and    EAR).
                                Unit 7A, Nathan Commercial
                                Building 430-436 Nathan
                                Road, Kowloon, Hong Kong;
                                and Room D, Block 1, 6/F
                                International Industrial
                                Centre, 2-8 Kwei Tei Street,
                                Shatin, New Territories,
                                Hong Kong
                               Wong Yung Fai, a.k.a., Tonny   For all items     Presumption of   75 FR 1701, 1/
                                Wong, Unit 27B, Block 8,       subject to the    denial..         13/10
                                Monte Vista, 9 Sha On          EAR. (See Sec.
                                Street, Ma On Shan, New         744.11 of the
                                Territories, Hong Kong; and    EAR).
                                Unit 1006, 10/F Carnarvon
                                Plaza, 20 Carnarvon Road,
                                TST, Kowloon, Hong Kong; and
                                Unit 7A, Nathan Commercial
                                Building, 430-436 Nathan
                                Road, Kowloon, Hong Kong;
                                and Room D, Block 1, 6/F
                                International Industrial
                                Centre, 2-8 Kwei Tei Street,
                                Shatin, New Territories,
                                Hong Kong; and Unit 9B,
                                Nathan Commercial Building
                                430-436 Nathan Road,
                                Kowloon, Hong Kong; and Unit
                                2401A, 24/F Park-In
                                Commercial Centre, 56 Dundas
                                Street, Mongkok, Kowloon,
                                Hong Kong
                               Y-Sing Components Limited,     For all items     Presumption of   73 FR 54503, 9/
                                Unit 401, Harbour Ctr.,        subject to the    denial.          22/08.
                                Tower 2, 8 Hok Cheung          EAR. (See Sec.
                                Street, Hung Hom, Kowloon,      744.11 of the
                                Hong Kong                      EAR).
                               Xian Semi Electronic Co.,      For all items     Presumption of   76 FR 71869, 11/
                                Ltd., a.k.a., the following    subject to the    denial.          21/11.
                                three aliases:                 EAR. (See Sec.
                               --Semi Electronics Co.;          744.11 of the
                               --Semi Electronics              EAR)..
                                International Co. Limited;
                                and
                               --Exodus Microelectronics
                                Co., Ltd.
                               CAMDY, F1, 6/F BR3 Lanzhou
                                Ind., No. 20-30 Jiangyuan,
                                Yantian, Hong Kong; and Room
                                611 6/F Ricky CTR 36 Chong
                                Yip St., Kwun Tong Kowloon,
                                Hong Kong (See alternate
                                address under China).

[[Page 400]]

 
                               Yeraz, LTD, Room 927 9/F Far   For all items     Presumption of   76 FR 44261, 7/
                                East Consortium Building,      subject to the    denial.          25/11.
                                121 Des Voeux Road C,          EAR. (See Sec.
                                Central District, Hong Kong     744.11 of the
                                                               EAR).
                               Zhou Zhenyong, (a.k.a., Benny  For all items     Presumption of   76 FR 67062, 10/
                                Zhou and Zhenyong Zhou), G/    subject to the    denial.          31/2011.
                                F, No. 89, Fuyan Street,       EAR. (See Sec.
                                Kwun Tong, Hong Kong; and       744.11 of the
                                Flat 12, 9F Po Hong Kong 2     EAR).
                                Wang Tung Street, Kowloon
                                Bay, Hong Kong; and Flat/RM
                                B 8/F, Chong Ming Bldg., 72
                                Cheung Sha Wan Road, KL,
                                Hong Kong; and Flat/RM 2309,
                                23/F, Ho King COMM Center, 2-
                                16 Fa Yuen Street, Mongkok
                                KLN, Hong Kong (See
                                alternate addresses under
                                China)
INDIA........................  The following Department of    For all items     Case-by-case     63 FR 64322, 11/
                                Atomic Energy entities:        subject to the    for all items    19/98
                               --Bhabha Atomic Research        EAR.              listed on the   65 FR 14444, 03/
                                Center (BARC);                                   CCL.             17/00
                               --Indira Gandhi Atomic                            Presumption of  66 FR 50090, 10/
                                Research Center (IGCAR);                         approval for     01/01
                               --Indian Rare Earths;                             EAR99 items.    69 FR 56694, 09/
                               --Nuclear reactors (including                                      22/04.
                                power plants) not under
                                International Atomic Energy
                                Agency (IAEA) safeguards,
                                (excluding Kundankulam 1 and
                                2) fuel reprocessing and
                                enrichment facilities, heavy
                                water production facilities
                                and their collocated ammonia
                                plants
IRAN.........................  Aflak Micro Electronics,       For all items     Presumption of   73 FR 54503, 9/
                                Tehranno 14, Golkade St.,      subject to the    denial.          22/08.
                                Arash Mehr Ave., Tehran,       EAR. (See Sec.
                                Iran                            744.11 of the
                                                               EAR).
                               Ahmad Rahzad, a.k.a., Saeb     For all items     Presumption of   73 FR 54503, 9/
                                Karim, 29, 1st Floor, Amjad    subject to the    denial.          22/08.
                                Bldg., Jomhoori Ave.,          EAR. (See Sec.
                                Tehran, Iran (See alternate     744.11 of the
                                address under Malaysia)        EAR).
                               Ali Reza Seif, 34 Mansour      For all items     Presumption of   73 FR 54503, 9/
                                Street, Tehran, Iran           subject to the    denial.          22/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Amir Hosein Atabaki, 5 Yaas    For all items     Presumption of   73 FR 74001, 12/
                                St, Unit 4, Tehran, Iran       subject to the    denial.          5/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Arash Dadgar, No. 10, 64th     For all items     Presumption of   73 FR 54506, 9/
                                St., Yousafabad, Tehran,       subject to the    denial..         22/08
                                Iran, 14638, and Unit 11,      EAR. (SeeSec.                   75 FR 1701, 1/
                                No. 35 South Iranshahr St.,     744.11 of the                     13/10.
                                Tehran, Iran                   EAR).
                               Atomic Energy Organization of  For all items     Presumption of   72 FR 38008, 07/
                                Iran (AEOI), a.k.a. the        subject to the    denial.          12/07.
                                following two aliases:         EAR. (SeeSec.                   77 FR 24590, 4/
                               --Sazeman-e Energy Atomi; and    744.11 of the                     25/2012.
                               --Sazeman-e Enerji-e Atomi.     EAR).
                               .............................
                               P.O. Box 14144-1339, End of
                                North Karegar Avenue,
                                Tehran; and P.O. Box 14155-
                                4494, Tehran, Iran; and all
                                locations in Iran.
                               Bahman Ghandi, a.k.a., Brian   For all items     Presumption of   73 FR 54503, 9/
                                Ghandi, No. 14, Golkadeh       subject to the    denial.          22/08.
                                St., Arashmehr St., Tehran,    EAR. (See Sec.
                                Iran                            744.11 of the
                                                               EAR).
                               Elecomponents, Iran            For all items     Presumption of   73 FR 54503, 9/
                                                               subject to the    denial.          22/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).

[[Page 401]]

 
                               Fadjr Marine Industries,       For all items     Presumption of   75 FR 36519, 6/
                                a.k.a., SADAF, 169 Malekloo    subject to the    denial.          28/10.
                                Ave., Farjam Ave., Tehran      EAR. (See Sec.
                                Pars, Tehran, Iran              744.11 of the
                                                               EAR).
                               Faradis Production, No. 33,    For all items     Presumption of   73 FR 54503, 9/
                                Second Floor, Amjad            subject to the    denial.          22/08.
                                Electronic Center, Jomhouri    EAR. (See Sec.
                                Ave., Tehran, Iran              744.11 of the
                                                               EAR).
                               Farhad Maani, 67, 1st Floor,   For all items     Presumption of   73 FR 54503, 9/
                                No. 3, Ebn-E Sina St., Mr.     subject to the    denial.          22/08.
                                ValiAsr Ave., W. of            EAR. (See Sec.
                                Beheshti, Tehran, Iran          744.11 of the
                                                               EAR).
                               GBNTT, No. 34 Mansour Street,  For all items     Presumption of   73 FR 54503, 9/
                                Tehran, Iran                   subject to the    denial.          22/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Golza Engineering Company,     For all items     Presumption of   73 FR 54503, 9/
                                No. 80/1, Fourth Floor,        subject to the    denial.          22/08.
                                North Sindokht St., Dr.        EAR. (See Sec.
                                Fatemi Ave., Tehran, 14118,     744.11 of the
                                Iran                           EAR).
                               H. Farahani, Ground Floor--    For all items     Presumption of   73 FR 74001, 12/
                                No. 31, Alborz Alley,          subject to the    denial.          5/08.
                                EnghelabSt, Tehran, Iran       EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Hamid Reza Ansarian, P.O. Box  For all items     Presumption of   73 FR 54503, 9/
                                19575-354, Tehran, Iran        subject to the    denial.          22/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Hamid Reza Simchi, P.O. Box    For all items     Presumption of   75 FR 36519, 6/
                                19575-354, Tehran, Iran        subject to the    denial.          28/10.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Hassan Seifi, Unit 23, Eighth Floor, No. 193    subject to the    denial.          June 28, 2011.
                                West Sarve Boulevard Kaj       EAR. (See Sec.
                                Square, Saadat Abad, 19987-     744.11 of the
                                14434, Tehran, Iran            EAR).
                               Hossein Ahmad Larijani, No 3   For all items     Presumption of   76 FR 67062, 10/
                                Mirza Kochak Ave., Jomhori     subject to the    denial.          31/2011.
                                Street, Tehran, Iran; and      EAR. (See Sec.
                                No. 5 Mirzakuchanhan Street,    744.11 of the
                                Jomhori Ave., Tehran, Iran;    EAR).
                                and No. 5 Mirza Kochak Ave.,
                                Jomhori Street, Tehran,
                                Iran; and No. 5, Near to
                                Flower Shop Mirza Koochak-
                                Khan Jangali St, 30-Tir
                                Junction, Jomhori St,
                                Tehran, Iran; and Unit 6,
                                No. 37, Goharshad Alley
                                After 30 Tir Jomhori Street,
                                Tehran, Iran; and Forghani
                                Passage, Before 30 Tir,
                                After Havez, Jomhori Ave.,
                                Tehran, Iran (See alternate
                                addresses under Singapore)
                               Iraj Najmi, No. 80/1, Fourth   For all items     Presumption of   73 FR 54503, 9/
                                Floor, North Sindokht St.,     subject to the    denial.          22/08.
                                Dr. Fatemi Ave., Tehran,       EAR. (See Sec.
                                14118, Iran                     744.11 of the
                                                               EAR).
                               Kalaye Electric Company,       For all items     Presumption of   72 FR 38008, 07/
                                a.k.a. the following four      subject to the    denial.          12/07.
                                aliases:                       EAR. (SeeSec.                   77 FR 24590, 4/
                               --Kala Electric Company;         744.11 of the                     25/2012.
                               --Kalia;                        EAR).
                               --Kala Electric; and
                               --Kola Electric Company.
                               .............................
                               33 Fifteenth (15th) Street,
                                Seyed-Jamal-Eddin-Assad
                                Abadi Avenue, Tehran, Iran.
                               Kish Airlines, Headquarters,   For all items     Presumption of   76 FR 50410, 8/
                                No. 21 Ekbatan Main Blvd.,     subject to the    denial.          15/11.
                                P.O. Box 19395/4639, Tehran,   EAR. (See Sec.
                                13938, Iran                     744.11 of the
                                                               EAR).

[[Page 402]]

 
                               Mahdi Electronics, a.k.a. the  For all items     Presumption of   73 FR 74001, 12/
                                following alias:               subject to the    denial.          5/08.
                               --Mahdi Electronic Trading      EAR. (SeeSec.                   77 FR 24590, 4/
                                Co. Ltd.                        744.11 of the                     25/2012.
                               .............................   EAR).
                               Ground Floor--No. 31 Alborz
                                Alley, Enghelab St., Tehran,
                                Iran.
                               Maryan Jahanshahi, 34 Mansour  For all items     Presumption of   73 FR 54503, 9/
                                St., Motahari-ValiAsr Street   subject to the    denial.          22/08.
                                Junction, Tehran, Iran         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Mesbah Energy Company (a.k.a.  For all items     Presumption of   72 FR 38010, 07/
                                ``MEC''), 77 Armaghan Gharbi   subject to the    denial.          12/07.
                                Street, Valiasr Blve,Tehran,   EAR. (See Sec.
                                Iran                            744.2 of the
                                                               EAR).
                               Mohammed Narjespour, 34        For all items     Presumption of   73 FR 54503, 9/
                                Mansour St., ValiAsr-          subject to the    denial.          22/08.
                                Motahari Crossing, Tehran,     EAR. (See Sec.
                                Iran                            744.11 of the
                                                               EAR).
                               Moslem Nasiri, 34 Mansour      For all items     Presumption of   73 FR 54503, 9/
                                St., ValiAsr-Motahari          subject to the    denial.          22/08.
                                Crossing, Tehran, Iran         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               M.R. Ahmadi, P.O. Box 19575/   For all items     Presumption of   73 FR 54503, 9/
                                199, Tehran, Iran              subject to the    denial.          22/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Naser Golshekan, Ground        For all items     Presumption of   73 FR 74001, 12/
                                Floor--No. 31, Alborz Alley,   subject to the    denial.          5/08.
                                EnghelabSt, Tehran, Iran       EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               NBC Navegan Bar Co. Ltd.,      For all items     Presumption of   73 FR 54507, 9/
                                a.k.a. the following alias:    subject to the    denial.          22/08.
                               --NBC Navegan Bar               EAR. (SeeSec.                   76 FR 21628, 4/
                                International Transport Co.     744.11 of the                     18/11.
                                Ltd.                           EAR).                             77 FR 24590, 4/
                               .............................                                      25/2012.
                               135 Khorramshahr
                                Ave., Tehran 1533864163; and
                                101, Kohrramshahr Ave.,
                                Tehran 1533864163.
                               Neda Industrial Group, No. 10  For all items     Presumption of   73 FR 54503, 9/
                                and 12, 64th St. Jamalodin     subject to the    denial.          22/08.
                                Asadabadi Avenue, Tehran,      EAR. (See Sec.
                                Iran                            744.11 of the
                                                               EAR).
                               Nedayeh Micron Electronics,    For all items     Presumption of   73 FR 54503, 9/
                                No. 34 Mansour St., Tehran,    subject to the    denial.          22/08.
                                Iran                           EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Niasan Century Industry, Unit  For all items     Presumption of   73 FR 54503, 9/
                                2, GF, No.:1, Marzban Name     subject to the    denial.          22/08.
                                Alley, Mofateh St., Motahari   EAR. (See Sec.
                                Ave., 1588875333, Tehran,       744.11 of the
                                Iran                           EAR).
                               Pakgostar Company, Appt 501 &  For all items     Presumption of   73 FR 74001, 12/
                                502, Borje Sefid Bldg,         subject to the    denial.          5/08.
                                Pasadaran Avenue, Tehran       EAR. (See Sec.
                                1946963651, Iran                744.11 of the
                                                               EAR).
                               Parto System Tehran, (a.k.a.,  For all items     Presumption of   76 FR 67062, 10/
                                Rayan Parto System Tehran      subject to the    denial.          31/2011.
                                and Rayane Parto System        EAR. (See Sec.
                                Tehran), Unit 7, Floor 4 No.    744.11 of the
                                51 around Golestan Alley End   EAR).
                                of Shahaneghi Ave., Sheikh
                                Bahaee Str., Molasadra,
                                Tehran, Iran; and No. 83
                                Around of Shanr Tash Ave.
                                After Cross of ABAS ABAD
                                North Sohrevadi Str.,
                                Tehran, Iran

[[Page 403]]

 
                               Paya Electronics Complex,      For all items     Presumption of   76 FR 67062, 10/
                                (a.k.a., Paya Complex), No 3   subject to the    denial.          31/2011.
                                Mirza Kochak Ave. Jomhori      EAR. (See Sec.
                                Street, Tehran, Iran; and       744.11 of the
                                No. 5 Mirzakuchanhan Street    EAR).
                                Jomhori Ave., Tehran, Iran;
                                and No. 5 Mirza Kochak Ave.
                                Jomhori Street, Tehran,
                                Iran; and No. 5, Near to
                                Flower Shop Mirza Koochak-
                                Khan Jangali St, 30-Tir
                                Junction, Jomhori St.,
                                Tehran, Iran; and Unit 6,
                                No. 37 Goharshad Alley After
                                30 Tir Jomhori Street,
                                Tehran, Iran; and Forghani
                                Passage, Before 30 Tir,
                                After Havez, Jomhori Ave.,
                                Tehran, Iran
                               Rad Tavan Afza Company, 3rd    For all items     Presumption of   73 FR 54507, 9/
                                Floor, No. 210, W. Fatemi,     subject to the    denial.          22/08.
                                Tehran, Iran, P.O. Box 14185-  EAR. (SeeSec.                   77 FR 24590, 4/
                                387; and 1st Pars Bldg.,        744.11 of the                     25/2012.
                                Beg. Pars Alley, Betw Khosh    EAR).
                                & Behboudi St., Azadi Ave.,
                                Tehran, Iran
                               Raht Aseman Co. Ltd., No.      For all items     Presumption of   73 FR 74001, 12/
                                1.2, Mosque Alley, Mohammadi   subject to the    denial.          5/08.
                                St., North Bahar Ave.,         EAR. (SeeSec.                   77 FR 24590, 4/
                                Tehran, Iran                    744.11 of the                     25/2012.
                                                               EAR).
                               Reza Seifi, Unit 23,  For all items     Presumption of   76 FR 37633,
                                Eighth Floor, No. 193 West     subject to the    denial.          June 28, 2011.
                                Sarve Boulevard Kaj Square,    EAR. (See Sec.
                                Saadat Abad, 19987-14434,       744.11 of the
                                Tehran, Iran                   EAR).
                               Reza Zahedi Pour, 5 Yaas St.,  For all items     Presumption of   73 FR 74001, 12/
                                Unit 4, Tehran, Iran           subject to the    denial.          5/08.
                                                               EAR. (SeeSec.                   77 FR 24590, 4/
                                                                744.11 of the                     25/2012.
                                                               EAR).
                               Sabanican Company (a.k.a.,     For all items     Presumption of   76 FR 37633,
                                Sabanican Pad Co.), Unit       subject to the    denial.          June 28, 2011.
                                23, Eighth Floor,     EAR. (See Sec.
                                No. 193 West Sarve Boulevard    744.11 of the
                                Kaj Square, Saadat Abad,       EAR).
                                19987-14434, Tehran, Iran
                               Safir Electronics, Ground      For all items     Presumption of   73 FR 74001, 12/
                                floor No. 31 Alborz Alley,     subject to the    denial.          5/08.
                                EnghelabSt. Tehran, Iran       EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Sahab Phase, 5 Yaas St, Unit   For all items     Presumption of   73 FR 74001, 12/
                                4 Tehran, Iran                 subject to the    denial.          5/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Sahand Airlines, Sahand        For all items     Presumption of   76 FR 50410, 8/
                                Airport, Bonab/Sahand, Iran    subject to the    denial.          15/11.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Sanaye Electronic Arman        For all items     Presumption of   73 FR 54503, 9/
                                Ertebat Nemad Company (SAEN    subject to the    denial.          22/08.
                                CO.), 67, 1st Floor, No. 3,    EAR. (See Sec.
                                Ebn-E Sina St., Mr. ValiAsr     744.11 of the
                                Ave., W. of Beheshti,          EAR).
                                Tehran, Iran
                               Seyed Mahdi Mousavi, BLK 6,    For all items     Presumption of   77 FR 58006, 9/
                                No. 12 Beside Gilan Street,    subject to the    denial.          19/12.
                                Rodstar Street, Under Hafez    EAR. (See Sec.
                                Bridge, Tehran, Iran; and       744.11 of the
                                No. 10-6th Floor Iranian       EAR)..
                                Trade Center, Valiasr
                                Square, Tehran, Iran (See
                                alternate addresses under
                                U.A.E.).
                               Seyed Mousavi Trading,         For all items     Presumption of   77 FR 58006, 9/
                                a.k.a., the following two      subject to the    denial.          19/12.
                                aliases:                       EAR. (See Sec.
                               --Hitech Computer                744.11 of the
                                Peripherals; and               EAR)..
                               --Hitech Corporation.
                               BLK 6, No. 12 Beside Gilan
                                Street, Rodstar Street,
                                Under Hafez Bridge, Tehran,
                                Iran; and No. 10-6th Floor
                                Iranian Trade Center,
                                Valiasr Square, Tehran, Iran
                                (See alternate addresses
                                under U.A.E.).

[[Page 404]]

 
                               Shahid Bakeri Industrial       For all items     Presumption of   72 FR 38008, 07/
                                Group, a.k.a. the following    subject to the    denial.          12/07.
                                nine aliases:                  EAR. (SeeSec.                   77 FR 24590, 4/
                               --SBIG;                          744.11 of the                     25/2012.
                               --Shahid Baheri Industries      EAR).
                                Group;
                               --Shahid Bagheri Industries
                                Group;
                               --Shahid Bagheri Industrial
                                Group;
                               --MEHR Trading Company;
                               --Department 140/14;
                               --Mahtab Technical
                                Engineering Company;
                               --Composite Propellant
                                Missile Industry; and
                               --Sanaye Sokhte Morakab
                                (SSM).
                               .............................
                                Pasdaran Ave., Tehran, Iran.
                               Shahid Hemmat Industrial       For all items     Presumption of   72 FR 38008, 07/
                                Group, a.k.a. the following    subject to the    denial.          12/07.
                                six aliases:                   EAR. (SeeSec.                   77 FR 24590, 4/
                               --SHIG;                          744.11 of the                     25/2012.
                               --Shahid Hemat Industrial       EAR).
                                Group;
                               --Chahid Hemmat Industrial
                                Group;
                               --Shahid Hemmat Industrial
                                Complex (SHIC);
                               --Shahid Hemmat Industrial
                                Factories (SHIF); and
                               --Hemmat Missile Industries
                                Factory.
                               .............................
                               Damavand Tehran Highway,
                                Tehran, Iran; Damavand
                                Tehran Highway, Tehran,
                                Iran; and Damavand Road 2,
                                Abali Road, Tehran, Iran.
                               Simin Neda Industrial and      For all items     Presumption of   72 FR 38008, 07/
                                Electrical Parts, a.k.a. the   subject to the    denial.          12/07.
                                following alias:               EAR. (SeeSec.                   77 FR 24590, 4/
                               --TTSN.                          744.11 of the                     25/2012.
                               No. 22, Second Floor, Amjad     EAR).
                                Bldg., Jomhoori Ave.,
                                Tehran, Iran.
                               Tadbir Sanaat Sharif           For all items     Presumption of   75 FR 36519, 6/
                                Technology Development         subject to the    denial.          28/10
                                Center (TSS), First Floor,     EAR. (See Sec.
                                No. 25 Shahid Siadat            744.11 of the
                                Boulevard, North Zanjan        EAR).
                                Street, Yadegar Emam
                                Highway, Tehran, Iran
                               Toos Electronics, 29, 1st      For all items     Presumption of   73 FR 54503, 9/
                                Floor, Amjad Bldg., Jomhoori   subject to the    denial.          22/08.
                                Ave., Tehran, Iran             EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Ukraine Mediterranean          For all items     Presumption of   76 FR 50410, 8/
                                Airlines, a.k.a., UM           subject to the    denial.          15/11.
                                Airlines, UM Air, Building     EAR. (See Sec.
                                Negin Sai app. 105, Valiasr     744.11 of the
                                Str., Tehran, Iran (See        EAR).
                                alternate addresses under
                                Ukraine and Syria)
                               Vizneh Trading Company, 34     For all items     Presumption of   73 FR 54503, 9/
                                Mansour St., Motahari and      subject to the    denial.          22/08.
                                ValiAsr Junction, Tehran,      EAR. (See Sec.
                                Iran, 1595747764                744.11 of the
                                                               EAR).
                               Zagros Airlines, Abadan        For all items     Presumption of   76 FR 50410, 8/
                                Airport, Abadan, Iran          subject to the    denial.          15/11.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
IRELAND......................  Mac Aviation Group, a.k.a.     For all items     Presumption of   74 FR 35799, 7/
                                Mac Aviation Limited,          subject to the    denial.          21/09.
                                Cloonmull House, Drumcliffe,   EAR. (See Sec.
                                County Sligo, Ireland           744.11 of the
                                                               EAR).
                               Mac Aviation Nigeria,          For all items     Presumption of   74 FR 35799, 7/
                                Cloonmull House, Drumcliffe,   subject to the    denial.          21/09.
                                County Sligo, Ireland          EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Sean Byrne, Cloonmull House,   For all items     Presumption of   74 FR 35799, 7/
                                Drumcliffe, County Sligo,      subject to the    denial.          21/09.
                                Ireland                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).

[[Page 405]]

 
                               Sean McGuinn, Cloonmull        For all items     Presumption of   74 FR 35799, 7/
                                House, Drumcliffe, County      subject to the    denial.          21/09.
                                Sligo, Ireland                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Thomas McGuinn a.k.a. Tom      For all items     Presumption of   74 FR 35799, 7/
                                McGuinn, Cloonmull House,      subject to the    denial.          21/09.
                                Drumcliffe, County Sligo,      EAR. (See Sec.
                                Ireland                         744.11 of the
                                                               EAR).
ISRAEL.......................  Ben Gurion University, Israel  For computers     Case-by-case     62 FR 4910, 2/3/
                                                               above the Tier    basis.           97 65 FR
                                                               3 level                            12919, 03/10/
                                                               described in                       00. 75 FR
                                                               Section                            29885, 5/28/10
                                                               740.7(d) (i.e.,
                                                               Tier 3 under
                                                               APP)..
                               Nuclear Research Center at     For all items     Case-by-case     62 FR 35334, 6/
                                Negev Dimona, Israel           subject to the    basis.           30/97.
                                                               EAR.
JORDAN.......................  Masoud Est. for Medical and    For all items     Presumption of   77 FR 23114, 4/
                                Scientific Supplies, 74        subject to the    denial.          18/12.
                                First Floor, Tla'a Al Ali      EAR. (See Sec.
                                Khali Al Salim Street,          744.11 of the
                                Amman, Jordan 11118.           EAR)..
KAZAKHSTAN...................  APEX Kazakhstan, 126 Jarokova  For all items     Presumption of   77 FR 61256, 10/
                                Str, Almaty, Kazakhstan.       subject to the    denial.          9/2012.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
LEBANON......................  EKT Electronics, a.k.a. the    For all items     Presumption of   73 FR 54507,
                                following four aliases:        subject to the    denial.         9/22/08.
                               --Katrangi Electronics;         EAR. (SeeSec.                   77 FR 24590, 4/
                               --Katrangi Trading;              744.11 of the                     25/2012.
                               --Katranji Labs; and            EAR).
                               --Electronics Systems.
                               .............................
                               1st floor, Hujij Building,
                                Korniche Street, P.O. Box
                                817 No. 3, Beirut, Lebanon;
                                P.O. Box: 8173, Beirut,
                                Lebanon; and 1 fl.,
                                Grand Hills Bldg., Said
                                Khansa St., Jnah (BHV),
                                Beirut, Lebanon. (See
                                alternate addresses under
                                Syria.)
                               Micro Power Engineering        For all items     Presumption of   76 FR 44261, 7/
                                Group, a.k.a., MPEG, Anwar     subject to the    denial.          25/11.
                                Street, Abou Karam Building,   EAR. (See Sec.
                                1st Floor, Jdeidet El Metn,     744.11 of the
                                Beirut, Lebanon                EAR).
                               Mohammed Katranji, 1st floor,  For all items     Presumption of   73 FR 54503, 9/
                                Hujij Building, Korniche       subject to the    denial.          22/08.
                                Street, P.O. Box 817 No. 3,    EAR. (See Sec.
                                Beirut, Lebanon (See            744.11 of the
                                alternate address under        EAR).
                                Syria)
                               Narinco Micro Sarl, Dedeyan    For all items     Presumption of   76 FR 44261, 7/
                                Center, Dora Boulevard         subject to the    denial.          25/11.
                                Street, Bauchrieh Metn.        EAR. (See Sec.
                                Lebanon                         744.11 of the
                                                               EAR).
                               Serop Elmayan and Sons         For all items     Presumption of   76 FR 44261, 7/
                                Lebanon, Ground Floor,         subject to the    denial.          25/11.
                                Aramouni Building, Property    EAR. (See Sec.
                                Number 1731, Fleuve Street,     744.11 of the
                                Mar Mekhael Sector, Beirut,    EAR).
                                Lebanon
                               Serpico Offshore Sarl, Ground  For all items     Presumption of   76 FR 44261, 7/
                                Floor, Aramouni Building,      subject to the    denial.          25/11.
                                Property Number 1731 Fleuve    EAR. (See Sec.
                                Street, Mar Mekhael Sector,     744.11 of the
                                Beirut, Lebanon                EAR).
MALAYSIA.....................  Ace Hub System, No. 15, Jalan  For all items     Presumption of   73 FR 54503, 9/
                                PJS 11/16, Taman Bandar        subject to the    denial.          22/08.
                                Sunway, 46150 Petaling Jaya,   EAR. (See Sec.
                                Selangor, Malaysia              744.11 of the
                                                               EAR).
                               Ahmad Rahzad, a.k.a., Saeb     For all items     Presumption of   73 FR 54503, 9/
                                Karim, 27-06, Amcorp Bldg.,    subject to the    denial.          22/08.
                                Jalan 18, Persiaran Barat,     EAR. (See Sec.
                                Petaling Jaya, 46050            744.11 of the
                                Selangor, Malaysia (See        EAR).
                                alternate address under
                                Iran)
                               Alex Ramzi, Suite 33-01,       For all items     Presumption of   75 FR 1701, 1/
                                Menara Keck Seng, 203 Jalan    subject to the    denial..         13/10.
                                Bukit Bintang, Kuala Lumpur,   EAR. (See Sec.
                                Malaysia 55100                  744.11 of the
                                                               EAR).

[[Page 406]]

 
                               Amir Ghasemi, Suite 33-01,     For all items     Presumption of   75 FR 1701, 1/
                                Menara Keck Seng, 203 Jalan    subject to the    denial..         13/10.
                                Bukit Bintang, Kuala Lumpur,   EAR. (See Sec.
                                Malaysia 55100                  744.11 of the
                                                               EAR).
                               Analytical Solutions, GB (Ground Floor), Pearl     subject to the    denial.          22/08
                                Tower, O.G. Heights, Jalan     EAR. (SeeSec.                   73 FR 74001, 12/
                                Awan Cina, 58200 Kuala          744.11 of the                     5/08.
                                Lumpur, Malaysia               EAR).
                               Ann Teck Tong, 97C, Jalan      For all items     Presumption of   73 FR 54503, 9/
                                Kenari 23, Puchong Jaya,       subject to the    denial.          22/08.
                                Puchong, Selangor, Malaysia    EAR. (See Sec.
                                Suite D23, Tkt. 2, Plaza        744.11 of the
                                Pekeliling, Jalan Tun Razak,   EAR).
                                Kuala Lumpur, Wilayah,
                                Peresekkutuan, Malaysia
                               Antcorp System, 5-02 Wisma     For all items     Presumption of   73 FR 54508. 9/
                                Pantai, Jalan Wisma Pantai     subject to the    denial.          22/08.
                                12200 Butterworth, Penang,     EAR. (SeeSec.                   74 FR 8184. 2/
                                Malaysia; 27-G Lorong           744.11 of the                     24/2009.
                                Kelasah 2, Tamen Kelasah       EAR).
                                13700 Seberang Jaya, Penang,
                                Malaysia; and No. 9 Jalan 3/
                                4C Desa Melawati 53100 Kuala
                                Lumpur, Malaysia
                               Austral Aero-Marine Corp. Sdn  For all items     Presumption of   75 FR 75 FR
                                Bhd, 10A Jalan 2/137B,         subject to the    denial.          36519, 6/28/
                                Resource Industrial Centre     EAR. (SeeSec.                    10.
                                Off Jalan Kelang Lama 58000,    744.11 of the
                                Kuala Lumpur, Malaysia         EAR).
                               Austral Aviation Corp., 10A    For all items     Presumption of   75 FR 36519, 6/
                                Jalan 2/137B, Resource         subject to the    denial.          28/10.
                                Industrial Centre Off Jalan    EAR. (See Sec.
                                Kelang Lama 58000, Kuala        744.11 of the
                                Lumpur, Malaysia               EAR).
                               Brian Kaam, a.k.a., Kaam Chee  For all items     Presumption of   73 FR 54503, 9/
                                Mun, No. 15, Jalan PJS 11/     subject to the    denial.          22/08.
                                16, Taman Bandar Sunway,       EAR. (See Sec.
                                46150 Petaling Jaya,            744.11 of the
                                Selangor, Malaysia             EAR).
                               East Tech, Malaysia            For all items     Presumption of   73 FR 54503, 9/
                                                               subject to the    denial.          22/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Eco Biochem Sdn Bhd, No. 15,   For all items     Presumption of   73 FR 54508,
                                Jalan PJS 11/16, Taman         subject to the    denial.         9/22/08.
                                Bandar Sunway, 46150           EAR. (SeeSec.                   77 FR 58006, 9/
                                Petaling Jaya, Selangor         744.11 of the                     19/12.
                                D.E., Malaysia.                EAR)..
                               Evertop Services Sdn Bhd,      For all items     Presumption of   75 FR 1701, 1/
                                Suite 33-01, Menara Keck       subject to the    denial..         13/10.
                                Seng, 203 Jalan Bukit          EAR. (See Sec.
                                Bintang, Kuala Lumpur,          744.11 of the
                                Malaysia 55100                 EAR).
                               Festsco Marketing Sdn Bhd,     For all items     Presumption of   73 FR 54508,
                                97C, Jalan Kenari 23,          subject to the    denial.         9/22/08.
                                Puchong Jaya, Puchong,         EAR. (SeeSec.                   77 FR 58006, 9/
                                Selangor, Malaysia; and         744.11 of the                     19/12.
                                Suite D23, Tkt. 2, Plaza       EAR)..
                                Pekeliling, Jalan Tun Razak,
                                Kuala Lumpur, Wilayah
                                Persekkutuan, Malaysia.
                               Jimmy Tok, 10A Jalan 2/137B,   For all items     Presumption of   75 FR 36519, 6/
                                Resource Industrial Centre     subject to the    denial.          28/10.
                                Off Jalan Kelang Lama 58000,   EAR. (See Sec.
                                Kuala Lumpur, Malaysia          744.11 of the
                                                               EAR).
                               Majid Kakavand, Suite 33-01,   For all items     Presumption of   75 FR 1701, 1/
                                Menara Keck Seng, 203 Jalan    subject to the    denial..         13/10.
                                Bukit Bintang, Kuala Lumpur,   EAR. (See Sec.
                                Malaysia 55100                  744.11 of the
                                                               EAR).
                               Majid Seif, a.k.a., Mark Ong   For all items     Presumption of   73 FR 54503, 9/
                                and Matti Chong, 27-06         subject to the    denial.          22/08.
                                Amcorp Building, Jalan 18,     EAR. (See Sec.
                                Persiaran Barat 46050           744.11 of the
                                Petaling Jaya, Selangor,       EAR).
                                Malaysia
                               Mohd Ansari, 5-02 Wisma        For all items     Presumption of   73 FR 54508 9/
                                Pantai, Jalan Wisma Pantai     subject to the    denial.          22/08.
                                12200 Butterworth, Penang,     EAR. (SeeSec.                   73 FR 74001 12/
                                Malaysia; 27-G Lorong           744.11 of the                     5/08.
                                Kelasah 2, Tamen Kelasah       EAR).                             74 FR 8184. 2/
                                13700 Seberang Jaya, Penang                                       24/2009.
                                Malaysia; and No. 9 Jalan 3/
                                4C Desa Melawati 53100 Kuala
                                Lumpur Malaysia

[[Page 407]]

 
                               Mok Chin Fan, a.k.a., Chong    For all items     Presumption of   75 FR 36519, 6/
                                Chen Fah, 10A Jalan 2/137B,    subject to the    denial.          28/10.
                                Resource Industrial Centre     EAR. (See Sec.
                                Off Jalan Kelang Lama 58000,    744.11 of the
                                Kuala Lumpur, Malaysia         EAR).
                               Nexus Empire, a.k.a., Vast     For all items     Presumption of   73 FR 54503, 9/
                                Solution 2706, Amcorp Bldg.,   subject to the    denial.          22/08.
                                Jalan Persiaran Barat,         EAR. (See Sec.
                                Petaling Jaya, Selangor,        744.11 of the
                                Malaysia                       EAR).
                               Vast Solution Sdn Bhd., 27-06  For all items     Presumption of   73 FR 54503, 9/
                                Amcorp Building, Jalan 18,     subject to the    denial.          22/08.
                                Persiaran Barat, 46050         EAR. (See Sec.
                                Petaling Jaya, Selangor,        744.11 of the
                                Malaysia                       EAR).
                               VTE Industrial Automation Sdn  For all items     Presumption of   73 FR 54508,
                                Bhd, 97C, Jalan Kenari 23,     subject to the    denial.         9/22/08.
                                Puchong Jaya, Puchong,         EAR. (SeeSec.                   76 FR 78146,
                                Selangor, Malaysia; and 45-     744.11 of the                    12/16/11.
                                02, Jalan Kenari 19A,          EAR)..                            77 FR 58006, 9/
                                Puchong Jaya, Puchong,                                            19/12.
                                Selangor, 47100 Malaysia.
NORWAY.......................  Gunther Migeotte, Titangata    For all items     Presumption of   75 FR 36519, 6/
                                1, N-1630 Gamle,               subject to the    denial.          28/10.
                                Fredrikstad, Norway; and H.    EAR. (See Sec.
                                Evjes vei 8A, Gressvik,         744.11 of the
                                Norway; and Holsneset 19,      EAR).
                                6030 Langevag, Norway; and
                                Titangata 1, 1630
                                Fredrikstad, Norway. (See
                                alternate address under
                                South Africa)
                               Icarus Design AS, Titangata 1  For all items     Presumption of   75 FR 36519, 6/
                                N-1630 Gamle, Fredrikstad,     subject to the    denial.          28/10.
                                Norway                         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
PAKISTAN.....................  Abdul Qader Khan Research      For all items     Case-by-case     63 FR 64322, 11/
                                Laboratories (AQKRL),          subject to the    for all items    19/98.
                                a.k.a., the following seven    EAR..             listed on the   65 FR 14444, 03/
                                aliases:                                         CCL.             17/00.
                               --Abdul Qadeer Khan Research                      Presumption of  66 FR 50090, 10/
                                Laboratories;                                    approval for     01/01.
                               --Dr. A.Q. Khan Research                          EAR99 items.    77 FR 58006, 9/
                                Laboratories;                                                     19/12.
                               --Engineering Research
                                Laboratories (ERL);--
                                Institute of Industrial
                                Control Systems (IICS);
                               --Kahuta Nuclear Facility;
                               --Kahuta Research Facility;
                                and
                               --Khan Research Laboratories
                                (KRL).
                               .............................
                               Dhoke Nusah, Dakhli Gangal,
                                Near Chatri Chowk, P.O. Box
                                1398, Rawalpindi 46000,
                                Pakistan; and P.O. Box 852,
                                Rawalpindi, Pakistan; and
                                P.O. Box 502, Kahuta,
                                Pakistan; and 24 Mauve Area
                                G 9/1, GPO Box 2891,
                                Islamabad.
                               Abdul Satar Ghoura, 127-128,   For all items     Presumption of   76 FR 71869, 11/
                                Times Center, Saddar Road,     subject to the    denial.          21/11.
                                Peshawar, Pakistan; and        EAR. (See Sec.
                                House Number 32, F-2, Khusal    744.11 of the
                                Khan Khattak Road,             EAR)..
                                University Town, Peshawar,
                                Pakistan. (See alternate
                                addresses under
                                Afghanistan).
                               Al Technique Corporation of    For all items     Case-by-case     63 FR 64322, 11/
                                Pakistan, Ltd. (ATCOP),        subject to the    for all items    19/98.
                               4th Floor, Dodhy Plaza, 52      EAR..             listed on the   65 FR 14444, 03/
                                Jinnah Avenue, P.O. Box                          CCL.             17/00.
                                1878, Islamabad, Pakistan.                       Presumption of  66 FR 50090, 10/
                                                                                 approval for     01/01.
                                                                                 EAR99 items.    77 FR 58006, 9/
                                                                                                  19/12.

[[Page 408]]

 
                               Allied Trading Co., a.k.a.,    For all items     Case-by-case     63 FR 64322, 11/
                                the following alias:           subject to the    for all items    19/98.
                               --UCB Arcade.                   EAR..             listed on the   65 FR 14444, 03/
                               2, Wazir Mansion, main Aiwan-                     CCL.             17/00.
                                e-tijarat Road, Boulton                          Presumption of  66 FR 50090 10/
                                Market, Karachi-74000,                           approval for     01/01.
                                Karachi, Pakistan (See                           EAR99 items.    77 FR 58006, 9/
                                alternate address under UCB                                       19/12.
                                Arcade in Uganda).
                               Allied Trading Co              For all items     Case-by-case     63 FR 64322, 11/
                                                               subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 03/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50092, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               ANZ Importers and Exporters,   For all items     Case-by-case     63 FR 64322, 11/
                                Islamabad                      subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 03/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50092, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               Azam Electronics, a.k.a., the  For all items     Presumption of   77 FR 71098
                                following two aliases:         subject to the    denial..         11/29/12.
                               --Mohammad Azam Electronics,    EAR. (See Sec.
                                and                             744.11 of the
                               --Akram Dish TV Satellite       EAR).
                                Center,
                               Chaman, Killa, Abdullah
                                District, Baluchistan
                                Province, Pakistan
                               Defense Science and            For all items     Case-by-case     63 FR 64322, 11/
                                Technology Organization        subject to the    for all items    19/98.
                                (DESTO), a.k.a., the           EAR..             listed on the   65 FR 14444, 03/
                                following two aliases:                           CCL.             17/00.
                               --Defense Science and                             Presumption of  66 FR 50090, 10/
                                Technology Center; and                           approval for     01/01.
                               --Chaklala Defense Science                        EAR99 items.    77 FR 58006, 9/
                                and Technology Organization.                                      19/12.
                               182 Sir Syed Road, Chaklala
                                Cantt, Rawalpindi 46200,
                                Pakistan; and Headquarters,
                                Chakklala Cantt, Rawalpindi,
                                46200, Pakistan.
                               Farzad Fazil Karim, a.k.a.,    For all items     Presumption of   76 FR 71869, 11/
                                the following one alias:       subject to the    denial.          21/11.
                               --Ahmad Farzad.                 EAR. (See Sec.
                               E3 Gul market Street 8,          744.11 of the
                                Hayatabad, Pakistan; and       EAR)..
                                122, First floor, Gul Haji
                                Plaza, Peshawar, Pakistan;
                               Fazal Rahim Farid, a.k.a.,     For all items     Presumption of   76 FR 71869, 11/
                                the following three aliases:   subject to the    denial.          21/11.
                               --Fazel Rahim Farid;            EAR. (See Sec.
                               --Farid; and                     744.11 of the
                               --Engineer Idris.               EAR)..
                               122, First Floor, Gul Haji
                                Plaza, Peshawar, Pakistan;
                                and House Number 32, F-2,
                                Khusal Khan Khattak Road,
                                University Town, Peshawar,
                                Pakistan. (See alternate
                                addresses under
                                Afghanistan).
                               High Technologies, Ltd.        For all items     Case-by-case     63 FR 64322, 11/
                                (HTL), a.k.a., the following   subject to the    for all items    19/98.
                                alias:                         EAR..             listed on the   65 FR 14444, 03/
                               --High Technology, Ltd.                           CCL.             17/00.
                               Islamabad.                                        Presumption of  66 FR 50090, 10/
                                                                                 approval for     01/01.
                                                                                 EAR99 items.    77 FR 58006, 9/
                                                                                                  19/12.

[[Page 409]]

 
                               Jalaluddin Haqqani, a.k.a.,    For all items     Presumption of   77 FR 25055,
                                the following seven aliases:   subject to the    denial.         4/27/12.
                               --General Jalaluddin;           EAR. (See Sec.
                                                                744.11 of the
                                                               EAR)..
                                                              --Haqqani Sahib;
                                                              --Maulama
                                                               Jalaluddin;.
                                                              --Maulawi
                                                               Haqqani;.
                                                              --Molvi Sahib;..
                                                              --Mulawi
                                                               Jalaluddin; and.
                                                              --Mullah
                                                               Jalaluddin..
                                                              Miram Shah,
                                                               Pakistan..
                               Khalil Zadran, a.k.a., the     For all items     Presumption of   77 FR 25057, 4/
                                following eight aliases:       subject to the    denial           27/12.
                               --Samar Gul Khalil;             EAR. (See Sec.
                               --Khalil Samar Gul;              744.11 of the
                               --Samer Khalil;                 EAR)..
                               --Samer Gul Khalil;
                               --Khlil Khalil;
                               --Kalil Khalil;
                               --Khalil Khualil; and
                               --Haji Khalil.
                               .............................
                                House 14, Street 13, Sector
                                F-7/2, Islamabad, Pakistan;
                                and House 20-B, Main College
                                Road, Sector F-7/2,
                                Islamabad, Pakistan (See
                                alternate address in
                                Afghanistan).
                               Khalil Zadran Company,         For all items     Presumption of   77 FR 25057, 4/
                                a.k.a., the following alias:   subject to the    denial           27/12.
                               --Khalil Construction.          EAR. (See Sec.
                               Pakistan (See alternate          744.11 of the
                                address in Afghanistan).       EAR)..
                               Kurshid Ghoura, a.k.a., the    For all items     Presumption of   76 FR 71869, 11/
                                following two aliases:         subject to the    denial.          21/11.
                               --Kurshed Ghoura; and           EAR. (See Sec.
                               --Kursheed Ghoura.               744.11 of the
                               127-128, Times Center, Saddar   EAR)..
                                Road, Peshawar, Pakistan;
                                and House Number 32, F-2,
                                Khusal Khan Khattak Road,
                                University Town, Peshawar,
                                Pakistan. (See alternate
                                addresses under
                                Afghanistan).
                               Lapcom Computer Stores, 122,   For all items     Presumption of   76 FR 71869, 11/
                                First Floor, Gul Haji Plaza,   subject to the    denial.          21/11.
                                Peshawar, Pakistan. (See       EAR. (See Sec.
                                alternate address under         744.11 of the
                                Afghanistan).                  EAR)..
                               Lastech Associates, Islamabad  For all items     Case-by-case     63 FR 64322, 11/
                                                               subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 3/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50092, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               Machinery Master Enterprises   For all items     Case-by-case     63 FR 64322, 11/
                                Ltd. (MME), Islamabad.         subject to the    for all items    19/98.
                                                               EAR..             listed on the   65 FR 14444, 03/
                                                                                 CCL.             17/00.
                                                                                 Presumption of  66 FR 50090, 10/
                                                                                 approval for     01/01.
                                                                                 EAR99 items.    77 FR 58006, 9/
                                                                                                  19/12.
                               Maple Engineering Pvt. Ltd.    For all items     Case-by-case     63 FR 64322, 11/
                                Consultants, Importers and     subject to the    for all items    19/98.
                                Exporters, Islamabad.          EAR..             listed on the   65 FR 14444, 03/
                                                                                 CCL.             17/00.
                                                                                 Presumption of  66 FR 50090, 10/
                                                                                 approval for     01/01.
                                                                                 EAR99 items.    77 FR 58006, 9/
                                                                                                  19/12.

[[Page 410]]

 
                               Mohammad Azam, a.k.a,          For all items     Presumption of   77 FR 71098
                               --Mohammad Akram,               subject to the    denial..         11/29/12.
                               Chaman, Killa, Abdullah         EAR. (See Sec.
                                District, Baluchistan           744.11 of the
                                Province, Pakistan             EAR).
                               Muhammad Halim Ghoura, 127-    For all items     Presumption of   76 FR 71869, 11/
                                128, Times Center, Saddar      subject to the    denial.          21/11.
                                Road, Peshawar, Pakistan,      EAR. (See Sec.
                                and House Number 32, F-2,       744.11 of the
                                Khusal Khan Khattak Road,      EAR)..
                                University Town, Peshawar,
                                Pakistan. (See alternate
                                addresses under
                                Afghanistan).
                               Ologh Beg International        For all items     Presumption of   76 FR 71869, 11/
                                Forwarders Ltd., 127-128,      subject to the    denial.          21/11.
                                Times Center, Saddar Road,     EAR. (See Sec.
                                Peshawar, Pakistan; and         744.11 of the
                                House Number 32, F-2, Khusal   EAR)..
                                Khan Khattak Road,
                                University Town, Peshawar,
                                Pakistan. (See alternate
                                address under Afghanistan).
                               Orient Importers and           For all items     Case-by-case     63 FR 64322, 11/
                                Exporters, Islamabad           subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 3/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50092, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               Pakistan Atomic Energy         For all items     Case-by-case     63 FR 64322, 11/
                                Commission (PAEC), a.k.a.,     subject to the    for all items    19/98.
                                the following alias:           EAR..             listed on the   65 FR 14444, 03/
                               --Power Plant Workshops,                          CCL.             17/00.
                               P.O. Box 1114, Islamabad;                         Presumption of  66 FR 50090, 10/
                               and the following three                           approval for     01/01.
                                subordinate entities:                            EAR99 items.    77 FR 58006, 9/
                               --National Development                                             19/12.
                                Complex (NDC), a.k.a., the
                                following two aliases:
                               --National Development
                                Centre; and
                               --National Defense Complex,
                               .............................
                               Fateh Jang, Punjab,
                                Rawalpindi, Pakistan; and
                                P.O. Box 2216, Islamabad,
                                Pakistan;
                               --Pakistan Institute for
                                Nuclear Science and
                                Technology (PINSTECH),
                               Nilore, Islamabad;
                               --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.
                               People's Steel Mills, Javedan  For all items     Case-by-case     63 FR 64322, 11/
                                Nagar, Manghopir Road,         subject to the    for all items    19/98.
                                Karachi 75890, Pakistan.       EAR..             listed on the   65 FR 14444, 03/
                                                                                 CCL.             17/00.
                                                                                 Presumption of  66 FR 50090, 10/
                                                                                 approval for     01/01.
                                                                                 EAR99 items.    77 FR 58006, 9/
                                                                                                  19/12.
                               People's Steel Mills, Karachi  For all items     Case-by-case     63 FR 64322, 11/
                                                               subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 3/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50093, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               Prime International            For all items     Case-by-case     63 FR 64322, 11/
                                                               subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 3/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50093, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.

[[Page 411]]

 
                               Space and Upper Atmosphere     For all items     Case-by-case     63 FR 64322,
                                Research Commission            subject to the    for all items   11/19/98.
                                (SUPARCO), a.k.a., the         EAR..             listed on the   65 FR 14444,
                                following alias:                                 CCL.            03/17/00.
                               --Space and Upper Atmospheric                     Presumption of  66 FR 50090,
                                Research Commission,                             approval for    10/01/01.
                               Sector 28, Gulzar-e-Hijiri,                       EAR99 items.    77 FR 58006, 9/
                                Off University Road, P.O.                                         19/12.
                                Box 8402, Karachi 75270.
                               Technical Services, Islamabad  For all items     Case-by-case     63 FR 64322, 11/
                                                               subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 3/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50093, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               The Tempest Trading Company,   For all items     Case-by-case     63 FR 64322, 11/
                                Islamabad                      subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 3/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50093, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               Unique Technical Promoters     For all items     Case-by-case     63 FR 64322, 11/
                                                               subject to the    for all items    19/98
                                                               EAR.              listed on the   65 FR 14444, 3/
                                                                                 CCL.             17/00
                                                                                 Presumption of  66 FR 50093, 10/
                                                                                 approval for     1/01.
                                                                                 EAR99 items.
                               Wah Chemical Product Plant,    For all items     Case-by-case     63 FR 64322, 11/
                                a.k.a., the following alias:   subject to the    for all items    19/98.
                               --Wah Nobel Chemicals           EAR.              listed on the   66 FR 50090, 10/
                                Limited,                                         CCL.             01/01.
                               Wah Cantonment, Rawalpindi,                       Presumption of  77 FR 58006, 9/
                                Pakistan.                                        approval for     19/12.
                                                                                 EAR99 items.
                               Wah Munitions Plant, Wah       For all items     Case-by-case     63 FR 64322, 11/
                                Cantonment, Rawalpindi,        subject to the    for all items    19/98.
                                Pakistan.                      EAR..             listed on the   65 FR 14444, 03/
                                                                                 CCL.             17/00.
                                                                                 Presumption of  66 FR 50090, 10/
                                                                                 approval for     01/01.
                                                                                 EAR99 items.    77 FR 58006, 9/
                                                                                                  19/12.
RUSSIA.......................  Abris, 6 Aptekarskiy           For all items     Presumption of   77 FR 61256, 10/
                                Prospeckt, Office 710, St.     subject to the    denial.          9/2012.
                                Petersburg, Russia 197376;     EAR. (See Sec.
                                and 30 16th Parkovaya St,       744.11 of the
                                Office 319, Moscow, Russia     EAR.).
                                105484.
                               Abris-KEY, 6 Aptekarskiy       For all items     Presumption of   77 FR 61256, 10/
                                Prospeckt, Office 710, St.     subject to the    denial.          9/2012.
                                Petersburg, Russia 197376;     EAR. (See Sec.
                                and 30 16th Parkovaya St,       744.11 of the
                                Office 319, Moscow, Russia     EAR.).
                                105484.
                               Abris-Technology, 6            For all items     Presumption of   77 FR 61256, 10/
                                Aptekarskiy Prospeckt,         subject to the    denial.          9/2012.
                                Office 710, St. Petersburg,    EAR. (See Sec.
                                Russia 197376; and 30 16th      744.11 of the
                                Parkovaya St, Office 319,      EAR.).
                                Moscow, Russia 105484.
                               Aleksander Cheremshin, Ulitsa  For all items     Presumption of   77 FR 61256, 10/
                                Mitinskaya 36/1, Moscow,       subject to the    denial.          9/2012.
                                Russia 125430; and             EAR. (See Sec.
                                Ordzhonikidze 10, Moscow,       744.11 of the
                                Russia 119071; and 10          EAR.).
                                Ordjonikidze Street, Moscow,
                                Russia 119071; and Ulitsa
                                Polyany 9/6, Moscow, Russia
                                117042; and Poljani str., 9-
                                6, 117042, Moscow, Russia;
                                and 9 Polyany Street, Suite
                                6, Moscow, Russia 117042;
                                and 33 Ulitsa Marshala
                                Tukhachevskogo, Suite 231,
                                Moscow, Russia 123154; and
                                Bolshaya Semenovskaya, 40/
                                505, Moscow, Russia 107023;
                                and Ulitsa Metallurgov, 29,
                                Str. 1, Komnata Pravleni,
                                Moscow, Russia 111401.

[[Page 412]]

 
                               Aleksander Kuznetsov, a.k.a.,  For all items     Presumption of   77 FR 61256, 10/
                                the following one alias:       subject to the    denial.          9/2012.
                               --Alexander Kuznetsov,          EAR. (See Sec.
                                Ordzhonikidze 10, Moscow,       744.11 of the
                                Russia 119071; and 10          EAR.).
                                Ordjonikidze Street, Moscow,
                                Russia 119071; and Ulitsa
                                Polyany \9/6\, Moscow,
                                Russia 117042; and Poljani
                                str., 9-6, 117042, Moscow,
                                Russia; and 9 Polyany
                                Street, Suite 6, Moscow,
                                Russia 117042; and 33 Ulitsa
                                Marshala Tukhachevskogo,
                                Suite 231, Moscow, Russia
                                123154; and Bolshaya
                                Semenovskaya, 40/505,
                                Moscow, Russia 107023; and
                                Ulitsa Metallurgov, 29, Str.
                                1, Komnata Pravleni, Moscow,
                                Russia 111401.
                               Aleksey Markov, 5A North       For all items     Presumption of   77 FR 61256, 10/
                                Street, Saransk, Republic of   subject to the    denial.          9/2012.
                                Mordovia, Russia 43006; and    EAR. (See Sec.
                                53 Sherbakovskaya Street,       744.11 of the
                                Building 3, Office 509,        EAR.).
                                105318 Moscow, Russia; and
                                26 General Belov St Office
                                415, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 415, Moscow,
                                Russia 115583; and 60
                                Bolshevistskaya St., Office
                                905, Saransk, Republic of
                                Mordovia, Russia; and 60
                                Bolshevistskaya St., Office
                                910, Saransk, Republic of
                                Mordovia, Russia; and 5a
                                Severnaya Street, Saransk,
                                Republic of Mordovia,
                                Russia.
                               Alex Pikhtin, a.k.a., the      For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Alexander Pikhtin, Pr.        EAR. (See Sec.
                                Yuria Gagarina 2, St.           744.11 of the
                                Petersburg, Russia 196105.     EAR.).
                               Alexander Georgievich          For all items     Presumption of   77 FR 61256, 10/
                                Mallabiu, 25 Red Cadets        subject to the    denial.          9/2012.
                                Street Letter H, Office        EAR. (See Sec.
                                Block 2, St. Petersburg,        744.11 of the
                                Russia 99034; and 130-17       EAR.).
                                Nevskiy Ave., Saint
                                Petersburg, Russia 191036;
                                and 16 Linia V.O., 7 Office
                                43, St. Petersburg, Russia
                                99034; and Krestovski River
                                Quay 3, Suite 42, St.
                                Petersburg, Russia 197376.
                               Alexander Kuznetsov, Ulitsa    For all items     Presumption of   77 FR 61256, 10/
                                Artyukhina 6B, 106, Moscow,    subject to the    denial.          9/2012.
                                Russia.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Alexander V. Brindyuk,         For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Aleksander Brendyuk, Pr.       744.11 of the
                                Yuria Gagarina 2, Office       EAR.).
                                801, St. Petersburg, Russia
                                196105.

[[Page 413]]

 
                               Alexander Vedyashkin, 5A       For all items     Presumption of   77 FR 61256, 10/
                                North Street, Saransk,         subject to the    denial.          9/2012.
                                Republic of Mordovia, Russia   EAR. (See Sec.
                                43006; and 53 Sherbakovskaya    744.11 of the
                                Street, Building 3, Office     EAR.).
                                509, 105318 Moscow, Russia;
                                and 26 General Belov St
                                Office 415, Moscow, Russia
                                115583; and 26 Generala
                                Belova Street, Office 415,
                                Moscow, Russia 115583; and
                                60 Bolshevistskaya St.,
                                Office 905, Saransk,
                                Republic of Mordovia,
                                Russia; and 60
                                Bolshevistskaya St., Office
                                910, Saransk, Republic of
                                Mordovia, Russia; and 5a
                                Severnaya Street, Saransk,
                                Republic of Mordovia,
                                Russia.
                               Alexey Ivanov Zhuravlev,       For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Alexy Ivanov, Pr. Yuria        744.11 of the
                                Gagarina 2, Office 801, St.    EAR.).
                                Petersburg, Russia 196105;
                                and Pr. Yuria Gagarina 1,
                                Office 230, St. Petersburg,
                                Russia 196105; and Pr. Yuri
                                Gagarin 1, Office 230, St.
                                Petersburg, Russia 196105.
                               Alexey Kulakov, Naberezhnaya   For all items     Presumption of   77 FR 61256, 10/
                                Chernoi Rechki 61-1, St.       subject to the    denial.          9/2012.
                                Petersburg, Russia 197342;     EAR. (See Sec.
                                and Naberegnaja Chernoj         744.11 of the
                                Rechki 61-1, 197342, Saint     EAR.).
                                Petersburg, Russia.
                               Alexey Polynkov, 471-4-98      For all items     Presumption of   77 FR 61256, 10/
                                Shosse Entuziastov, Moscow,    subject to the    denial.          9/2012.
                                Russia.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               All-Russian Scientific         For all items     Case-by-case     62 FR 35334, 6/
                                Research Institute of          subject to the    basis.           30/97
                                Technical Physics (VNIITF),    EAR.                              66 FR 24267, 5/
                                a.k.a., the following eight                                       14/01
                                aliases:                                                         75 FR 78883, 12/
                               --Vserossiyskiy Nauchno-                                           17/10
                                Issledovatelskiy Institut                                        76 FR 30000, 5/
                                Tekhnicheskoy Fiziki;                                             24/11.
                               --Russian Federal Nuclear
                                Center-VNIITF (RFNC-VNIITF);
                               --Kasli Nuclear Weapons
                                Development Center;
                               --Institute of Technical
                                Physics;
                               --Zababakhin Institute;
                               --ARITP (All Russian
                                Institute for Technical
                                Physics);
                               .............................
                               --Federal State Unitary
                                Enterprise Russian Federal
                                Nuclear Center--Academician
                                E.I. Zababkhin All-Russian
                                Scientific Research
                                Institute of Technical
                                Physics (FGUPRFYaTs-VNIITF)
                               --Chelyabinsk-70, (Address:
                                P.O. Box 245, 456770,
                                Snezhinsk, Chelyabinsk
                                Region Russia); and any
                                nuclear-related entities,
                                institutes, or centers
                                located in Snezhinsk.

[[Page 414]]

 
                               All-Russian Scientific         For all items     Case-by-case     62 FR 35334, 6/
                                Research Institute of          subject to the    basis.           30/97 66 FR
                                Experimental Physics           EAR..                              24267, 5/14/01
                                (VNIIEF), a.k.a., the                                             75 FR 78883,
                                following nine aliases:                                           12/17/10 76 FR
                               --Vserossiyskiy Nauchno-                                           30000, 5/24/
                                Issledovatelskiy Institut                                         11.
                                Eksperimentalnoy Fiziki;
                               --Russian Federal Nuclear
                                Center-VNIIEF (RFNC-VNIIEF);
                               --Institute of Experimental
                                Physics;
                               --ARIEP (All Russian
                                Institute for Experimental
                                Physics);
                               --Khariton Institute;
                               --Sarov Nuclear Weapons
                                Plant;
                               --Avangard Electromechanical
                                Plant;
                               --Federal State Unitary
                                Enterprise Russian Federal
                                Nuclear Center--All Russian
                                Scientific Research
                                Institute of Experimental
                                Physics (FGUPRFNCs VNIIEF)
                               --Arzamas-16, (Address: 37
                                Mira Ave. Sarov, Nizhny
                                Novgorod Region, 607188
                                Russia); and any nuclear-
                                related entities, institutes
                                or centers located in Sarov
                                (Kremlev).
                               Anastasya Arkhipova, a.k.a.,   For all items     Presumption of   77 FR 61256, 10/
                                the following one alias:       subject to the    denial.          9/2012.
                               --Anatasiya Arkhipova, 26       EAR. (See Sec.
                                General Belov St, Office        744.11 of the
                                415, Moscow, Russia 115583;    EAR.).
                                and 26 Generala Belova
                                Street, Office 415, Moscow,
                                Russia 115583; and 53
                                Sherbakovskaya Street,
                                Building 3, Office 509,
                                105318 Moscow, Russia.
                               Andrey Gruzdew, 25 Red Cadets  For all items     Presumption of   77 FR 61256, 10/
                                Street Letter H, Office        subject to the    denial.          9/2012.
                                Block 2, St. Petersburg,       EAR. (See Sec.
                                Russia 99034; and 130-17        744.11 of the
                                Nevskiy Ave., Saint            EAR.).
                                Petersburg, Russia 191036;
                                and 16 Linia V.O., 7 Office
                                43, St. Petersburg, Russia
                                99034; and Krestovski River
                                Quay 3, Suite 42, St.
                                Petersburg, Russia 197376.
                               Andrey V Gromadskih, 32        For all items     Presumption of   77 FR 61256, 10/
                                Korablestroiteley St.,         subject to the    denial.          9/2012.
                                building 1, Apt       EAR. (See Sec.
                                119, St.               744.11 of the
                                Petersburg, Russia 199397;     EAR.).
                                and Zastavskaya St. 32A, St.
                                Petersburg, Russia 196084;
                                and Zastavskaya St. 15-B,
                                St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Andrey Vladimirovich           For all items     Presumption of   77 FR 61256, 10/
                                Saponchik, 6 Aptekarskiy       subject to the    denial.          9/2012.
                                Prospekt, Office 710, St.      EAR. (See Sec.
                                Petersburg, Russia 197376;      744.11 of the
                                and Naberezhnaya Chernoi       EAR.).
                                Rechki 61-1, St. Petersburg,
                                Russia 197342; and 7
                                Belovodskiy Ln, St.
                                Petersburg, Russia 194044;
                                and Belovodskyi Per, 7, St.
                                Petersburg, Russia 194044;
                                and Naberegnaja Chernoj
                                Rechki 61-1, 197342, Saint
                                Petersburg, Russia; and 16
                                Parkovaya 30, Office 319,
                                Moscow, Russia 105484.

[[Page 415]]

 
                               Anna V Libets, Zastavskaya     For all items     Presumption of   77 FR 61256, 10/
                                St. 32A, St. Petersburg,       subject to the    denial.          9/2012.
                                Russia 196084; and             EAR. (See Sec.
                                Zastavskaya St. 15-B, St.       744.11 of the
                                Petersburg, Russia 196084;     EAR.).
                                and Raketnyy Bul'var 15,
                                Moscow, Russia 129164; and
                                16 Raketnyy Bul'var, Moscow,
                                Russia 129164.
                               Anton Khramov, 86 N Prospect   For all items     Presumption of   77 FR 61256, 10/
                                Obukhovskoy Oborony, St.       subject to the    denial.          9/2012.
                                Petersburg, Russia 190000.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Anton Lebedev, Pr. Yuria       For all items     Presumption of   77 FR 61256, 10/
                                Gagarina 2, Office 801, St.    subject to the    denial.          9/2012.
                                Petersburg, Russia 196105;     EAR. (See Sec.
                                and Pr. Yuria Gagarina 1,       744.11 of the
                                Office 230, St. Petersburg,    EAR.).
                                Russia 196105; and Pr. Yuri
                                Gagarin 1, Office 230, St.
                                Petersburg, Russia 196105.
                               Anton Yurevich Alekseyev,      For all items     Presumption of   77 FR 61256, 10/
                                Ulitsa Mitinskaya 30/4,        subject to the    denial.          9/2012.
                                Moscow, Russia 123430.         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               APEX, a.k.a., the following    For all items     Presumption of   77 FR 61256, 10/
                                four aliases:                  subject to the    denial.          9/2012.
                               --APEKS;                        EAR. (See Sec.
                               --APEX Systems;                  744.11 of the
                               OOO APEX; and                   EAR.).
                               --APEX Ltd., 26 General Belov
                                St Office 415, Moscow,
                                Russia 115583; and 26
                                Generala Belova Street,
                                Office 415, Moscow, Russia
                                115583; and 53
                                Sherbakovskaya Street,
                                Building 3, Office 509,
                                Moscow, Russia 105318.
                               APEX St. Petersburg, 140       For all items     Presumption of   77 FR 61256, 10/
                                Leninsky Prospekt, Office      subject to the    denial.          9/2012.
                                57, St. Petersburg, Russia.    EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               APEX Yekaterinburg, 106        For all items     Presumption of   77 FR 61256, 10/
                                Kuybyshev Str, Office 68,      subject to the    denial.          9/2012.
                                Yekaterinburg, Russia; and     EAR. (See Sec.
                                Ulitsa 9 March, D. 120B,        744.11 of the
                                Office 312 620100,             EAR.).
                                Yekaterinburg, Russia; and
                                106 K 68 ul Kuibysheva,
                                620100, Yekaterinburg,
                                Russia.
                               Arsenal, 26 General Belov St,  For all items     Presumption of   77 FR 61256, 10/
                                Office 19, Moscow, Russia      subject to the    denial.          9/2012.
                                115583; and 26 Generala        EAR. (See Sec.
                                Belova Street, Office 19,       744.11 of the
                                Moscow, Russia 115583.         EAR.).
                               Atrilor, Ltd, a.k.a., the      For all items     Presumption of   77 FR 61256, 10/
                                following two aliases:         subject to the    denial.          9/2012.
                               --Atrilor LLC; and              EAR. (See Sec.
                               --OOO Atrilor,                   744.11 of the
                               .............................   EAR.).
                               36 Mitinskaya St, Building 1,
                                Office 406, Moscow, Russia
                                125430; and
                               53 Shcherbakovskaya Street,
                                Moscow 105187.

[[Page 416]]

 
                               Aviton, a.k.a., the following  For all items     Presumption of   77 FR 61256, 10/
                                three aliases:                 subject to the    denial.          9/2012.
                               --Aviton company;               EAR. (See Sec.
                               --For Salmi; and                 744.11 of the
                               --Salmi LLC,                    EAR.).
                               .............................
                                Naberezhnaya Chernoi Rechki
                                61-1, St. Petersburg, Russia
                                197342; and 6 Aptekarskiy
                                Prospect, Office 710, St.
                                Petersburg, Russia 197376;
                                and 7 Belovodskiy Ln, St.
                                Petersburg, Russia 194044;
                                and Belovodskiy Per, 7, St.
                                Petersburg, Russia 194044;
                                and Naberegnaja Chernoj
                                Rechki 61-1, 197342, Saint
                                Petersburg, Russia; and 16
                                Parkovaya 30, Office 319,
                                Moscow, Russia 105484.
                               Best Komp Group, P.O. Box      For all items     Presumption of   77 FR 61256, 10/
                                242, St. Petersburg, Russia    subject to the    denial.          9/2012.
                                196240.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Bitreit, a.k.a., the           For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --OOO Betreit,                  EAR. (See Sec.
                               Neglinnaya Str., 18/1, emb.1     744.11 of the
                                ``A'', Moscow, Russia.         EAR.).
                               Bolshaya Semenovskaya, 40/     For all items     Presumption of   77 FR 61256, 10/
                                505, Moscow, Russia 107023;    subject to the    denial.          9/2012.
                                and Ulitsa Metallurgov, 29,    EAR. (See Sec.
                                Str. 1, Komnata Pravleni,       744.11 of the
                                Moscow, Russia 111401.         EAR.).
                               Denis A Kizha, Pulkovskoe      For all items     Presumption of   77 FR 61256, 10/
                                Shosse, 20-4 159,     subject to the    denial.          9/2012.
                                St. Petersburg, Russia         EAR. (See Sec.
                                196158; and Zastavskaya St.     744.11 of the
                                32A, St. Petersburg, Russia    EAR.).
                                196084; and Zastavskaya St.
                                15-B, St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               DM Link, P.O. Box 242, St.     For all items     Presumption of   77 FR 61256, 10/
                                Petersburg, Russia 196240.     subject to the    denial.          9/2012.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Dmitri Ezhov, 53               For all items     Presumption of   77 FR 61256, 10/
                                Sherbakovskaya Street,         subject to the    denial.          9/2012.
                                Building 3, Office 509,        EAR. (See Sec.
                                105318 Moscow, Russia; and      744.11 of the
                                26 General Belov Str, Office   EAR.).
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583; and 26
                                General Belov St Office 415,
                                Moscow, Russia 115583; and
                                26 Generala Belova Street,
                                Office 415, Moscow, Russia
                                115583.
                               Dmitriy Averichev,             For all items     Presumption of   77 FR 61256, 10/
                                Naberezhnaya Chernoi Rechki    subject to the    denial.          9/2012.
                                61-1, St. Petersburg, Russia   EAR. (See Sec.
                                197342; and Naberegnaja         744.11 of the
                                Chernoj Rechki 61-1, 197342,   EAR.).
                                Saint Petersburg, Russia.
                               Dmitriy Moroz, Pr. Yuria       For all items     Presumption of   77 FR 61256, 10/
                                Gagarina 2, Office 801, St.    subject to the    denial.          9/2012.
                                Petersburg, Russia 196105.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Dmitriy Rakhimov, 26 General   For all items     Presumption of   77 FR 61256, 10/
                                Belov Str Office 1010,         subject to the    denial.          9/2012.
                                Moscow, Russia 115583; and     EAR. (See Sec.
                                26 Generala Belova Street,      744.11 of the
                                Office 1010, Moscow, Russia    EAR.).
                                115583.

[[Page 417]]

 
                               Dmitriy V Lukhanin, 25 Red     For all items     Presumption of   77 FR 61256, 10/
                                Cadets Street Letter H,        subject to the    denial.          9/2012.
                                Office Block 2, St.            EAR. (See Sec.
                                Petersburg, Russia 99034;       744.11 of the
                                and 130-17 Nevskiy Ave.,       EAR.).
                                Saint Petersburg, Russia
                                191036; and 16 Linia V.O., 7
                                Office 43, St. Petersburg,
                                Russia 99034; and Krestovski
                                River Quay 3, Suite 42, St.
                                Petersburg, Russia 197376.
                               Dmitry Andreev, 4              For all items     Presumption of   77 FR 61256, 10/
                                Savelkinskiy Dr., Suite 511-   subject to the    denial.          9/2012.
                                512, Zelenograd, Russia        EAR. (See Sec.
                                124482.                         744.11 of the
                                                               EAR.).
                               Dmitry Kochanov, 4 Pokhodnyy   For all items     Presumption of   77 FR 61256, 10/
                                Dr, Bldg 1, 4th Floor, Room    subject to the    denial.          9/2012.
                                417, Moscow, Russia 125373.    EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Dmitry M Rodov, Zastavskaya    For all items     Presumption of   77 FR 61256, 10/
                                St. 32A, St. Petersburg,       subject to the    denial.          9/2012.
                                Russia 196084; and             EAR. (See Sec.
                                Zastavskaya St. 15-B, St.       744.11 of the
                                Petersburg, Russia 196084;     EAR.).
                                and Raketnyy Bul'var 15,
                                Moscow, Russia 129164; and
                                16 Raketnyy Bul'var, Moscow,
                                Russia 129164.
                               Dmitry Shegurov, a.k.a., the   For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Dmitriy Shegurov, 53          EAR. (See Sec.
                                Sherbakovskaya Street,          744.11 of the
                                Building 3, Office 509,        EAR.).
                                105318 Moscow, Russia; and
                                26 General Belov Str, Office
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583; and 26
                                General Belov St Office 415,
                                Moscow, Russia 115583; and
                                26 Generala Belova Street,
                                Office 415, Moscow, Russia
                                115583; and 26 General Belov
                                Str, Office 19, Moscow,
                                Russia 115583; and 26
                                Generala Belova Street,
                                Office 19, Moscow, Russia
                                115583.
                               ECO-MED-SM Ltd, Petrovsko-     For all items     Presumption of   77 FR 61256, 10/
                                Razumovsky proyezd 29,         subject to the    denial.          9/2012.
                                bed.2, Moscow, Russia          EAR. (See Sec.
                                127287.                         744.11 of the
                                                               EAR.).
                               Electrotekhnika LLC, 4         For all items     Presumption of   77 FR 61256, 10/
                                Savelkinskiy Dr., Suite 511-   subject to the    denial.          9/2012.
                                512, Zelenograd, Russia        EAR. (See Sec.
                                124482; and 4 Yunost Square,    744.11 of the
                                NPZ, Suite 1-7, Zelenograd,    EAR.).
                                Russia 124482; and 4 Yunost
                                Square, NPZ, Apt. 1-7,
                                Zelenograd, Russia 124482.
                               Elena Kuznetsova, a.k.a., the  For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Yelena Vladimirovna           EAR. (See Sec.
                                Kuznetsova,                     744.11 of the
                               .............................   EAR.).
                               9 Lipovaya alleya, St.
                                Petersburg, Russia 197183;
                                and Zastavskaya St. 32A, St.
                                Petersburg, Russia 196084;
                                and Zastavskaya St. 15-B,
                                St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.

[[Page 418]]

 
                               Elizaveta Krapivina, a.k.a.,   For all items     Presumption of   77 FR 61256, 10/
                                the following one alias:       subject to the    denial.          9/2012.
                               --Yelizaveta Krapivina,         EAR. (See Sec.
                               .............................    744.11 of the
                                Pr. Yuria Gagarina 2, Office   EAR.).
                                801, St. Petersburg, Russia
                                196105.
                               Evgeni Viktorovich Egorov, 4   For all items     Presumption of   77 FR 61256, 10/
                                Savelkinskiy Dr., Suite 511-   subject to the    denial.          9/2012.
                                512, Zelenograd, Russia        EAR. (See Sec.
                                124482.                         744.11 of the
                                                               EAR.).
                               Forward Electronics, LLC, 86   For all items     Presumption of   77 FR 61256, 10/
                                N Prospect Obukhovskoy         subject to the    denial.          9/2012.
                                Oborony, St. Petersburg,       EAR. (See Sec.
                                Russia 190000; and              744.11 of the
                                Kolomyazhsky Prospect 18,      EAR.).
                                Office 4085 BC ``North
                                House,'' St. Petersburg,
                                Russia 197348.
                               Hermann Derkach, Pr. Yuria     For all items     Presumption of   77 FR 61256, 10/
                                Gagarina 2, Office 801, St.    subject to the    denial.          9/2012.
                                Petersburg, Russia 196105.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Igor Samusev, Ulitsa           For all items     Presumption of   77 FR 61256, 10/
                                Artyukhina 6B, 106, Moscow,    subject to the    denial.          9/2012.
                                Russia.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Incorporated Electronics       For all items     Presumption of   77 FR 61256, 10/
                                Systems, 9 Lipovaya alleya,    subject to the    denial.          9/2012.
                                St. Petersburg, Russia         EAR. (See Sec.
                                197183; and 9A Lipovaya         744.11 of the
                                alleya, St. Petersburg,        EAR.).
                                Russia 197183.
                               Ivan Komarov, Pr. Yuria        For all items     Presumption of   77 FR 61256, 10/
                                Gagarina 2, Office 801, St.    subject to the    denial.          9/2012.
                                Petersburg, Russia 196105.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Ivan Zubarev, 4 Savelkinskiy   For all items     Presumption of   77 FR 61256, 10/
                                Dr., Suite 511-512,            subject to the    denial.          9/2012.
                                Zelenograd, Russia 124482.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Kirill A Stekhovskiy,          For all items     Presumption of   77 FR 61256, 10/
                                Zastavskaya St. 32A, St.       subject to the    denial.          9/2012.
                                Petersburg, Russia 196084;     EAR. (See Sec.
                                and Zastavaskaya St. 15-B,      744.11 of the
                                St. Petersburg, Russia         EAR.).
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Kirill Drozdov, 86 N Prospect  For all items     Presumption of   77 FR 61256, 10/
                                Obukhovskoy Oborony, St.       subject to the    denial.          9/2012.
                                Petersburg, Russia 190000.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Kirill Pechorin Starodvorsky,  For all items     Presumption of   77 FR 61256, 10/
                                25 Red Cadets Street Letter    subject to the    denial.          9/2012.
                                H, Office Block 2, St.         EAR. (See Sec.
                                Petersburg, Russia 99034;       744.11 of the
                                and 130-17 Nevskiy Ave.,       EAR.).
                                Saint Petersburg, Russia
                                191036; and 16 Linia V.O., 7
                                Office 43, St. Petersburg,
                                Russia 99034; and Krestovski
                                River Quay 3, Suite 42, St.
                                Petersburg, Russia 197376.
                               Lyudmila V Talyanova,          For all items     Presumption of   77 FR 61256, 10/
                                Zastavskaya St. 32A, St.       subject to the    denial.          9/2012.
                                Petersburg, Russia 196084;     EAR. (See Sec.
                                and Zastavskaya St. 15-B,       744.11 of the
                                St. Petersburg, Russia; and    EAR.).
                                Raketnyy Bul'var 15, Moscow,
                                Russia 129164; and
                                Krestovski River Quay 3,
                                Suite 42, St. Petersburg,
                                Russia 197376.
                               Magnetar, Pr. Yuria Gagarina   For all items     Presumption of   77 FR 61256, 10/
                                2, Office 801, St.             subject to the    denial.          9/2012.
                                Petersburg, Russia 196105.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Mariya Lomova, 9 Lipovaya      For all items     Presumption of   77 FR 61256, 10/
                                alleya, St. Petersburg,        subject to the    denial.          9/2012.
                                Russia 197183.                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).

[[Page 419]]

 
                               Mark Gofman, P.O. Box 242,     For all items     Presumption of   77 FR 61256, 10/
                                St. Petersburg, Russia         subject to the    denial.          9/2012.
                                196240.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Maxim Yevgenevich Ivakin, 106  For all items     Presumption of   77 FR 61256, 10/
                                Kuybyshev Str, Office 68,      subject to the    denial.          9/2012.
                                Yekaterinburg, Russia.         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               MaxiTechGroup, a.k.a., the     For all items     Presumption of   77 FR 61256, 10/
                                following two aliases:         subject to the    denial.          9/2012.
                               --MaksiTekhGrup; and            EAR. (See Sec.
                               --JSC MaksiTekhGrup,             744.11 of the
                               .............................   EAR.).
                               4 Pokhodnyy Dr, Bldg 1, 4th
                                floor, Room 417, Moscow,
                                Russia 125373; and 46
                                Chkalova St., Zhukovskiy,
                                Moscow Region, 140180.
                               Megel, 26 General Belov St,    For all items     Presumption of   77 FR 61256, 10/
                                Office 1010, Moscow, Russia    subject to the    denial.          9/2012.
                                115583; and 26 Generala        EAR. (See Sec.
                                Belova Street, Office 1010,     744.11 of the
                                Moscow, Russia 115583.         EAR.).
                               Mekom, a.k.a., the following   For all items     Presumption of   77 FR 61256, 10/
                                one alias:                     subject to the    denial.          9/2012.
                               --Mecom,                        EAR. (See Sec.
                               Ulitsa Mitinskaya 36/1,          744.11 of the
                                Moscow, Russia 125430.         EAR.).
                               Melkom, a.k.a., the following  For all items     Presumption of   77 FR 61256, 10/
                                two aliases:                   subject to the    denial.          9/2012.
                               --Melcom; and                   EAR. (See Sec.
                               --Melkom JSC,                    744.11 of the
                               .............................   EAR.).
                               Ulitsa Ordzhonikidze 10,
                                Moscow, Russia 119071; and
                                10 Ordjonikidze Street,
                                Moscow, Russia 119071; and
                                Ultisa Polyany 9/6, Moscow,
                                Russia 117042; and Polijani
                                str., 9-6, 117042, Moscow,
                                Russia; and 33 Ulitsa
                                Marshala Tukhachevskogo,
                                Suite 231, Moscow, Russia
                                123154; and Bolshaya
                                Semenovskaya, 40/505,
                                Moscow, Russia 107023; and
                                Ulitsa Metallurgov, 29, Str.
                                1, Komnata Pravleni, Moscow,
                                Russia 111401.
                               MicroComponent LLC, 2/1, 4th   For all items     Presumption of   77 FR 61256, 10/
                                Zapadny proezd, Zelenograd,    subject to the    denial.          9/2012.
                                Russia 124460; and 4 Yunost    EAR. (See Sec.
                                Square, NPZ, Suite 1-7,         744.11 of the
                                Zelenograd, Russia 124482;     EAR.).
                                and 4th West Passage Dr.,
                                Building 2, 124460,
                                Zelenograd, Russia.
                               MIG Engineering, a.k.a., the   For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --MIG Electronics,              EAR. (See Sec.
                               .............................    744.11 of the
                               26 General Belov Str, Office    EAR.).
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583; and
                               53 Scherbakovskaya St, Bldg
                                3, Moscow, Russia 105187.
                               Mikhail Davidovich, a.k.a.,    For all items     Presumption of   77 FR 61256, 10/
                                the following one alias:       subject to the    denial.          9/2012.
                               --Mike Davidovich, P.O. Box     EAR. (See Sec.
                                242, St. Petersburg, Russia     744.11 of the
                                196240.                        EAR.).

[[Page 420]]

 
                               Mikhail Karpushin, 5A North    For all items     Presumption of   77 FR 61256, 10/
                                Street, Saransk, Republic of   subject to the    denial.          9/2012.
                                Mordovia, Russia 43006; and    EAR. (See Sec.
                                53 Sherbakovskaya Street,       744.11 of the
                                Building 3, Office 509,        EAR.).
                                105318 Moscow, Russia; and
                                26 General Belov St Office
                                415, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 415, Moscow,
                                Russia 115583; and 60
                                Bolshevistskaya St., Office
                                905, Saransk, Republic of
                                Mordovia, Russia; and 60
                                Bolshevistskaya St., Office
                                910, Saransk, Republic of
                                Mordovia, Russia; and 5a
                                Severnaya Street, Saransk,
                                Republic of Mordovia,
                                Russia.
                               Mikhail Vinogradov, 4          For all items     Presumption of   77 FR 61256, 10/
                                Pokhodnyy Dr, Bldg 1, 4th      subject to the    denial.          9/2012.
                                Floor, Room 417, Moscow,       EAR. (See Sec.
                                Russia 125373.                  744.11 of the
                                                               EAR.).
                               Neva Electronica, a.k.a., the  For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Neva Elektronika,             EAR. (See Sec.
                               .............................    744.11 of the
                               Pr. Yuria Gagarina 2, Office    EAR.).
                                801, St. Petersburg, Russia
                                196105; and 5 Professora
                                Popova St., Saint
                                Petersburg, 197022.
                               Nikolai Bragin, 2A             For all items     Presumption of   77 FR 61256, 10/
                                Chernyshevskogo St., St.       subject to the    denial.          9/2012.
                                Petersburg, Russia 191123;     EAR. (See Sec.
                                and Zastavkaya St. 32A, St.     744.11 of the
                                Petersburg, Russia 196084;     EAR.).
                                and Zastavskaya st. 15-B,
                                St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Nova Technologies, a.k.a.,     For all items     Presumption of   77 FR 61256, 10/
                                the following five aliases:    subject to the    denial.          9/2012.
                               --Novie Technologies; and       EAR. (See Sec.
                               --Nova SPB; and                  744.11 of the
                               --New Technology; and           EAR.).
                               --Nova Technologies Co.,
                                Ltd.; and
                               --Novyye Tekhnologii, LLC,
                               .............................
                               25 Red Cadets Street Letter
                                H, Office Block 2, St.
                                Petersburg, Russia 99034;
                                and 130-17 Nevskiy Ave.,
                                Saint Petersburg, Russia
                                191036; and 16 Linia V.O., 7
                                Office 43, St. Petersburg,
                                Russia 99034; and Krestovski
                                River Quay 3, Suite 42, St.
                                Petersburg, Russia 197376.
                               Oksana Timohina, 6             For all items     Presumption of   77 FR 61256, 10/
                                Aptekarskiy Prospekt, Office   subject to the    denial.          9/2012.
                                710, St. Petersburg, Russia    EAR. (See Sec.
                                197376; and Naberezhnaya        744.11 of the
                                Chernoi Rechki 61-1, St.       EAR.).
                                Petersburg, Russia 197342;
                                and 7 Belovodskiy Ln, St.
                                Petersburg, Russia 194044;
                                and Belovodskyi Per, 7, St.
                                Petersburg, Russia 194044;
                                and Naberegnaja Chernoj
                                Rechki 61-1, 197342, Saint
                                Petersburg, Russia; and 16
                                Parkovaya 30, Office 319,
                                Moscow, Russia 105484.

[[Page 421]]

 
                               Oleg Koshkin, 26 General       For all items     Presumption of   77 FR 61256, 10/
                                Belov St Office 415, Moscow,   subject to the    denial.          9/2012.
                                Russia 115583; and 26          EAR. (See Sec.
                                Generala Belova St Office       744.11 of the
                                415, Moscow, Russia 115583;    EAR.).
                                and 53 Sherbakovskaya
                                Street, Building 3, Office
                                509, 105318 Moscow, Russia.
                               Oleg Kunilov, 4 Savelkinskiy   For all items     Presumption of   77 FR 61256, 10/
                                Dr., Suite 511-512,            subject to the    denial.          9/2012.
                                Zelenograd, Russia 124482.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Olga Naumova, 53               For all items     Presumption of   77 FR 61256, 10/
                                Sherbakovskaya St, Bldg 3,     subject to the    denial.          9/2012.
                                Moscow, Russia 105187; and     EAR. (See Sec.
                                26 General Belov Str, Office    744.11 of the
                                1010, Moscow, Russia 115583;   EAR.).
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583.
                               Olga Pakhmutova, 53            For all items     Presumption of   77 FR 61256, 10/
                                Sherbakovskaya Street,         subject to the    denial.          9/2012.
                                Building 3, Office 509,        EAR. (See Sec.
                                105318 Moscow, Russia; and      744.11 of the
                                26 General Belov Str, Office   EAR.).
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583; and 26
                                General Belov St Office 415,
                                Moscow, Russia 115583; and
                                26 Generala Belova Street,
                                Office 415, Moscow, Russia
                                115583.
                               Olga Petrovna Kuznetsova, 33   For all items     Presumption of   77 FR 61256, 10/
                                Ulitsa Marshala                subject to the    denial.          9/2012.
                                Tukhachevskogo, Suite 231      EAR. (See Sec.
                                Moscow, Russia 123154; and      744.11 of the
                                Ordzhonikidze 10, Moscow,      EAR.).
                                Russia 119071; and 10
                                Ordjonikidze Street, Moscow,
                                Russia 119071; and Ulitsa
                                Polyany 9/6, Moscow, Russia
                                117042; and Poljani str., 9-
                                6, 117042 Moscow, Russia;
                                and 9 Polyany Street, Suite
                                6, Moscow, Russia 117042;
                                and Bolshaya Semenovskaya,
                                40/505, Moscow, Russia
                                107023; and Ulitsa
                                Metallurgov, 29, Str. 1,
                                Komnata Pravleni, Moscow,
                                Russia 111401.
                               Olga Ruzmanova, 53             For all items     Presumption of   77 FR 61256, 10/
                                Sherbakovskaya Street,         subject to the    denial.          9/2012.
                                Building 3, Office 509,        EAR. (See Sec.
                                105318 Moscow, Russia; and      744.11 of the
                                26 General Belov St Office     EAR.).
                                415, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 415, Moscow,
                                Russia 115583; and 26
                                General Belov Str, Office
                                19, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 19, Moscow,
                                Russia 115583.
                               Olga V Bobrikova, 8            For all items     Presumption of   77 FR 61256, 10/
                                Pushkinskaya St., Apt.         subject to the    denial.          9/2012.
                                47, St. Petersburg,   EAR. (See Sec.
                                Russia 196607; and              744.11 of the
                                Zastavskaya St 32A, St.        EAR.).
                                Petersburg, Russia 196084;
                                and Zastavskaya St. 15-B,
                                St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Pavel Grishanovich, 9          For all items     Presumption of   77 FR 61256, 10/
                                Lipovaya alleya, St.           subject to the    denial.          9/2012.
                                Petersburg, Russia 197183.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).

[[Page 422]]

 
                               Petersburg Electronic Company  For all items     Presumption of   77 FR 61256, 10/
                                (PEC), LLC, a.k.a., the        subject to the    denial.          9/2012.
                                following one alias:           EAR. (See Sec.
                               --Petersburg Electron-           744.11 of the
                                Komplekt Ltd.,                 EAR.).
                               Zastavskaya St 32A, St.
                                Petersburg, Russia 196084;
                                and Zastavskaya St. 15-B,
                                St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Petersburg Electronic Company  For all items     Presumption of   77 FR 61256, 10/
                                Warehouse, Zastavskaya St.     subject to the    denial.          9/2012.
                                15-B, St. Petersburg, Russia   EAR. (See Sec.
                                196084.                         744.11 of the
                                                               EAR.).
                               ProExCom, Ulitsa Artyukhina    For all items     Presumption of   77 FR 61256, 10/
                                6B, 106, Moscow, Russia.       subject to the    denial.          9/2012.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Radel Ltd., a.k.a., the        For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Firm Radel Ltd.,              EAR. (See Sec.
                               20 Novaya Basmannaya St.,        744.11 of the
                                Moscow, Russia.                EAR.).
                               Ramil Yarullovich Magzhanov,   For all items     Presumption of   77 FR 61256, 10/
                                Zastavskaya St 32A, St.        subject to the    denial.          9/2012.
                                Petersburg, Russia 196084;     EAR. (See Sec.
                                and Zastavskaya St. 15-B,       744.11 of the
                                St. Petersburg, Russia         EAR.).
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Ravil Mukminovich              For all items     Presumption of   77 FR 61256, 10/
                                Bagautdinov, 53                subject to the    denial.          9/2012.
                                Sherbakovskaya Street,         EAR. (See Sec.
                                Building 3, Office 509,         744.11 of the
                                105318 Moscow, Russia; and     EAR.).
                                26 General Belov Str, Office
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583; and 26
                                General Belov St Office 415,
                                Moscow, Russia 115583; and
                                26 Generala Belova Street,
                                Office 415, Moscow, Russia
                                115583.
                               RCM Group, 6 Aptekarskiy       For all items     Presumption of   77 FR 61256, 10/
                                Prospekt, Office 700, St.      subject to the    denial.          9/2012.
                                Petersburg, Russia 197376;     EAR. (See Sec.
                                and 30 16th Parkovaya St,       744.11 of the
                                Office 319, Moscow, Russia     EAR.).
                                105484; and 16-aya Parkovaya
                                Str., 30, Office 319,
                                Moscow, Russia 105484.
                               Roman Eliseev, a.k.a., the     For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Roman Yeliseyev,              EAR. (See Sec.
                               .............................    744.11 of the
                               26 General Belov Str Office     EAR.).
                                19, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 19, Moscow,
                                Russia 115583; and 53
                                Sherbakovskaya Street,
                                Building 3, Office 509,
                                105318 Moscow, Russia; and
                                26 General Belov Str, Office
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583; and 26
                                General Belov St Office 415,
                                Moscow, Russia 115583; and
                                26 Generala Belova Street,
                                Office 415, Moscow, Russia
                                115583.

[[Page 423]]

 
                               Saransk Electronic Company,    For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --APEX Saransk,                  744.11 of the
                               5A North Street, Saransk,       EAR.).
                                Republic of Mordovia, Russia
                                43006; and 60
                                Bolshevistskaya St., Office
                                905, Saransk, Republic of
                                Mordovia, Russia; and 60
                                Bolshevistskaya St., Office
                                910, Saransk, Republic of
                                Mordovia, Russia; and 5a
                                Severnaya Street, Saransk,
                                Republic of Mordovia,
                                Russia.
                               SCTB Engineering, Pr. Yuria    For all items     Presumption of   77 FR 61256, 10/
                                Gagarina 1, Office 230, St.    subject to the    denial.          9/2012.
                                Petersburg, Russia 196105;     EAR. (See Sec.
                                and Pr. Yuri Gagarin 1,         744.11 of the
                                Office 230, St. Petersburg,    EAR.).
                                Russia 196105.
                               Sergei Evgenevich Klinov,      For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Sergey Yevgenyevich Klinov,    744.11 of the
                                26 General Belov St Office     EAR.).
                                415, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 415, Moscow,
                                Russia 115583; and 53
                                Sherbakovskaya Street,
                                Building 3, Office 509,
                                105318 Moscow, Russia; and
                                26 General Belov St Office
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova St
                                Office 1010, Moscow, Russia
                                115583.
                               Sergei G Yuropov, Zastavskaya  For all items     Presumption of   77 FR 61256, 10/
                                St 32A, St. Petersburg,        subject to the    denial.          9/2012.
                                Russia 196084; and             EAR. (See Sec.
                                Zastavskaya St. 15-B, St.       744.11 of the
                                Petersburg, Russia 196084;     EAR.).
                                and Raketnyy Bul'var 15,
                                Moscow, Russia 129164; and
                                16 Raketnyy Bul'var, Moscow,
                                Russia 129164.
                               Sergey Koynov, a.k.a., the     For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Sergey V. Coyne, 106          EAR. (See Sec.
                                Kuybyshev Str, Office 68,       744.11 of the
                                Yekaterinburg, Russia (see     EAR.).
                                alternate address in Hong
                                Kong).
                               Sergey Nikolayevich Sanaev,    For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Sergei Nikoleivich Sanev,      744.11 of the
                                5A North Street, Saransk,      EAR.).
                                Republic of Mordovia, Russia
                                43006; and 53 Sherbakovskaya
                                Street, Building 3, Office
                                509, 105318 Moscow, Russia;
                                and 26 General Belov St
                                Office 415, Moscow, Russia
                                115583; and 26 Generala
                                Belova Street, Office 415,
                                Moscow, Russia 115583; and
                                60 Bolshevistskaya St.,
                                Office 905, Saransk,
                                Republic of Mordovia,
                                Russia; and 60
                                Bolshevistskaya St., Office
                                910, Saransk, Republic of
                                Mordovia, Russia; and 5a
                                Severnaya Street, Saransk,
                                Republic of Mordovia,
                                Russia.
                               Specelkom, a.k.a., the         For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Special Electronic            EAR. (See Sec.
                                Components,                     744.11 of the
                               Ulitsa Mitinskaya 30/4,         EAR.).
                                Moscow, Russia 123430.

[[Page 424]]

 
                               SpekElectronGroup, 72          For all items     Presumption of   77 FR 61256, 10/
                                Lenigradsky Avenue, Bldg 4,    subject to the    denial.          9/2012.
                                Moscow, Russia 125315.         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Stanislav Berezovets, Ulitsa   For all items     Presumption of   77 FR 61256, 10/
                                Polyany 9/6, Moscow, Russia    subject to the    denial.          9/2012.
                                117042.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Stanislav Bolt, 9 Lipovaya     For all items     Presumption of   77 FR 61256, 10/
                                alleya, St. Petersburg,        subject to the    denial.          9/2012.
                                Russia 197183.                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Stanislav Orelsky, 6           For all items     Presumption of   77 FR 61256, 10/
                                Aptekarskiy Prospekt, Office   subject to the    denial.          9/2012.
                                710, St. Petersburg, Russia    EAR. (See Sec.
                                197376; and Naberezhnaya        744.11 of the
                                Chernoi Rechki 61-1, St.       EAR.).
                                Petersburg, Russia 197342;
                                and 7 Belovodskiy Ln, St.
                                Petersburg, Russia 194044;
                                and Belovodskyi Per, 7, St.
                                Petersburg, Russia 194044;
                                and Naberegnaja Chernoj
                                Rechki 61-1, 197342, Saint
                                Petersburg, Russia; and 16
                                Parkovaya 30, Office 319,
                                Moscow, Russia 105484.
                               Systema VP, a.k.a., the        For all items     Presumption of   77 FR 61256, 10/
                                following one alias:           subject to the    denial.          9/2012.
                               --Sistema VP,                   EAR. (See Sec.
                               4 Savelkinskiy Dr., Suite 511-   744.11 of the
                                512, Zelenograd, Russia        EAR.).
                                124482; and Savelkinsky Pr
                                4, Office 512, Zelenograd,
                                Russia 124482; and
                                Savelkinskiy Proyedz 4,
                                Office 512, Zelenograd,
                                Russia 124482; and 4 Yunost
                                Square, NPZ, Suite 1-7,
                                Zelenograd, Russia 124482;
                                and Ofis 511, Prospeckt
                                Savelinksi, Moscow, Russia
                                124482; and 4 Yunost Plaza
                                NPZ, rooms 1-7, Zelenograd,
                                Moscow 124482.
                               Timur Nikoleavich Edigeev,     For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Timur Yedigeyev, 53            744.11 of the
                                Sherbakovskaya Street,         EAR.).
                                Building 3, Office 509,
                                105318 Moscow, Russia; and
                                26 General Belov Str, Office
                                1010, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 1010, Moscow,
                                Russia 115583; and 26
                                General Belov St Office 415,
                                Moscow, Russia 115583; and
                                26 Generala Belova Street,
                                Office 415, Moscow, Russia
                                115583.
                               Vadim Shuletskiy, 6            For all items     Presumption of   77 FR 61256, 10/
                                Aptekarskiy Prospekt, Office   subject to the    denial.          9/2012.
                                710, St. Petersburg, Russia    EAR. (See Sec.
                                197376; and 7 Belovodskiy       744.11 of the
                                Ln, St. Petersburg, Russia     EAR.).
                                194044; and Belovodskyi Per,
                                7, St. Petersburg, Russia
                                194044, and Naberegnaja
                                Chernoj Rechki 61-1, 197342,
                                Saint Petersburg, Russia;
                                and 16 Parkovaya 30, Office
                                319, Moscow, Russia 105484.

[[Page 425]]

 
                               Valentina Mazalova, 6          For all items     Presumption of   77 FR 61256, 10/
                                Aptekarskiy Prospekt, Office   subject to the    denial.          9/2012.
                                710, St. Petersburg, Russia    EAR. (See Sec.
                                197376; and Naberezhnaya        744.11 of the
                                Chernoi Rechki 61-1, St.       EAR.).
                                Petersburg, Russia 197342;
                                and 7 Belovodskiy Ln, St.
                                Petersburg, Russia 194044;
                                and Belovodskyi Per, 7, St.
                                Petersburg, Russia 194044;
                                and Naberegnaja Chernoj
                                Rechki 61-1, 197342, Saint
                                Petersburg, Russia; and 16
                                Parkovaya 30, Office 319,
                                Moscow, Russia 105484.
                               Video Logic, 4 Yunost Square,  For all items     Presumption of   77 FR 61256, 10/
                                NPZ, Suite 1-7, Zelenograd,    subject to the    denial.          9/2012.
                                Russia 124482.                 EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Viktor Bokovoi, Ulitsa         For all items     Presumption of   77 FR 61256, 10/
                                Polyany 9/6, Moscow, Russia    subject to the    denial.          9/2012.
                                117042.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Vitaliy Nagorniy, Ulitsa       For all items     Presumption of   77 FR 61256, 10/
                                Polyany 9/6, Moscow, Russia    subject to the    denial.          9/2012.
                                117042.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Vladimir Davidenko, 20 Novaya  For all items     Presumption of   77 FR 61256, 10/
                                Basmannaya St., Moscow,        subject to the    denial.          9/2012.
                                Russia.                        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Vladimir Safraonov, 25 Red     For all items     Presumption of   77 FR 61256, 10/
                                Cadets Street Letter H,        subject to the    denial.          9/2012.
                                Office Block 2, St.            EAR. (See Sec.
                                Petersburg, Russia 99034;       744.11 of the
                                and 130-17 Nevskiy Ave.,       EAR.).
                                Saint Petersburg, Russia
                                191036; and 16 Linia V.O., 7
                                Office 43, St. Petersburg,
                                Russia 99034; and Krestovski
                                River Quay 3, Suite 42, St.
                                Petersburg, Russia 197376.
                               Vladimir Viktorovich Lavrov,   For all items     Presumption of   77 FR 61256, 10/
                                Vavilovykh Street 4-2 267, St. Petersburg,         EAR. (See Sec.
                                Russia 195257; and              744.11 of the
                                Zastavskaya St. 32A, St.       EAR.).
                                Petersburg, Russia 196084;
                                and Zastavskaya St. 15-B,
                                St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Vladislav A. Sokolov, 6        For all items     Presumption of   77 FR 61256, 10/
                                Aptekarskiy Prospekt, Office   subject to the    denial.          9/2012.
                                710, St. Petersburg, Russia    EAR. (See Sec.
                                197376; and Naberezhnaya        744.11 of the
                                Chernoi Rechki 61-1, St.       EAR.).
                                Petersburg, Russia 197342;
                                and 7 Belovodskiy Ln, St.
                                Petersburg, Russia 194044;
                                and Belovodskyi Per, 7, St.
                                Petersburg, Russia 194044;
                                and Naberegnaja Chernoj
                                Rechki 61-1, 197342, Saint
                                Petersburg, Russia; and 16
                                Parkovaya 30, Office 319,
                                Moscow, Russia 105484.
                               Vyacheslav Y Shillin,          For all items     Presumption of   77 FR 61256, 10/
                                Zastavskaya St. 32A, St.       subject to the    denial.          9/2012.
                                Petersburg, Russia 196084;     EAR. (See Sec.
                                and Zastavskaya St. 15-B,       744.11 of the
                                St. Petersburg, Russia         EAR.).
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Yekaterina Parfenova, 4        For all items     Presumption of   77 FR 61256, 10/
                                Savelkinskiy Dr., Suite 511-   subject to the    denial.          9/2012.
                                512, Zelenograd, Russia        EAR. (See Sec.
                                124482.                         744.11 of the
                                                               EAR.).
                               Yevgeniy L Biryukov, Pr.       For all items     Presumption of   77 FR 61256, 10/
                                Yuria Gagarina 2, Office       subject to the    denial.          9/2012.
                                801, St. Petersburg, Russia    EAR. (See Sec.
                                196105.                         744.11 of the
                                                               EAR.).

[[Page 426]]

 
                               Yuliya L. Molkova-Poluh,       For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following three    subject to the    denial.          9/2012.
                                aliases:                       EAR. (See Sec.
                               --Yuliya Molkova-Polukh; and     744.11 of the
                               --Yuliya Leonidovna; Molkova-   EAR.).
                                Polyukh; and
                               --Yuliya Molkova-Polah,
                                Zastavskaya St. 32A, St.
                                Petersburg, Russia 196084;
                                and Zastavskaya St. 15-B,
                                St. Petersburg, Russia
                                196084; and Raketnyy Bul'var
                                15, Moscow, Russia 129164;
                                and 16 Raketnyy Bul'var,
                                Moscow, Russia 129164.
                               Yuri A. Krasheninnikov, 9      For all items     Presumption of   77 FR 61256, 10/
                                Lipovaya alleya, St.           subject to the    denial.          9/2012.
                                Petersburg, Russia 197183.     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Yuri Savin, 39                 For all items     Presumption of   77 FR 61256, 10/
                                Dnepropetrovskaya Str.,        subject to the    denial.          9/2012.
                                Build 1, Apt. 287, Moscow,     EAR. (See Sec.
                                Russia; and 36 Mitinskaya       744.11 of the
                                St, Building 1, Office 406,    EAR.).
                                Moscow, Russia 125430; and
                               53 Shcherbakovskaya Street,
                                Moscow 105187; and 72
                                Lenigradsky Avenue, Bldg 4,
                                Moscow, Russia 125315.
                               Yuriy Vasilyevich Kuzminov,    For all items     Presumption of   77 FR 61256, 10/
                                a.k.a., the following one      subject to the    denial.          9/2012.
                                alias:                         EAR. (See Sec.
                               --Yuri Kuzminov, 53              744.11 of the
                                Sherbakovskaya Street,         EAR.).
                                Building 3, Office 509,
                                105318 Moscow, Russia; and
                                26 General Belov Str, Office
                                19, Moscow, Russia 115583;
                                and 26 Generala Belova
                                Street, Office 19, Moscow,
                                Russia 115583.
SINGAPORE....................  Action Global, (a.k.a.,        For all items     Presumption of   76 FR 67062, 10/
                                Action Global Co.), Limited,   subject to the    denial.          31/2011.
                                520 Sims Avenue, 02-  EAR. (See Sec.
                                04, Singapore 387580 (See       744.11 of the
                                alternate addresses under      EAR).
                                Hong Kong)
                               Amaze International, Block     For all items     Presumption of   76 FR 67062, 10/
                                1057 Eunos Avenue 3, 02-85, Singapore 409848      EAR. (See Sec.
                                (See alternate address under    744.11 of the
                                Hong Kong)                     EAR).
                               Brian Douglas Woodford, 1      For all items     Presumption of   73 FR 74001, 12/
                                Scotts Road, Suite 25-06       subject to the    denial.          5/08.
                                Shaw Centre, Singapore         EAR. (See Sec.
                                228208 (See alternate           744.11 of the
                                address under the United       EAR).
                                Kingdom)
                               Corezing International,        For all items     Presumption of   76 FR 67062, 10/
                                (a.k.a., CoreZing              subject to the    denial.          31/2011.
                                Electronics, Corezing          EAR. (See Sec.
                                International Group Company,    744.11 of the
                                Corezing International Pte     EAR).
                                Ltd, Corezing Technology Pte
                                Ltd and Core Zing), 2021
                                Bukit Batok Street 23,
                                02-212, Singapore
                                659626; and 111 North Bridge
                                Road, 27-01
                                Peninsula Plaza, Singapore
                                179098; and 50 East Coast
                                Road, 2-70 Roxy
                                Square, Singapore 428769;
                                and Block 1057 Eunos Avenue
                                3, 2-85, Singapore
                                409848 (See alternate
                                addresses under China, and
                                Hong Kong)
                               Cyberinn PTE LTD, a.k.a., the  For all items     Presumption of   73 FR 54508, 9/
                                following alias:               subject to the    denial.          22/08.
                               --Index Consultancy &           EAR. (SeeSec.                   77 FR 58006, 9/
                                Services PTE LTD.,              744.11 of the                     19/12.
                               1 Rochor Canal Road, 06-07 Sim Lim Square,
                                188504, Singapore.

[[Page 427]]

 
                               Gryphon Aerospace, 36 Lorong   For all items     Presumption of   73 FR 74001, 12/
                                N Telok Kurau Unit 03-03, Singapore 425160      EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Hia Soo Gan Benson, (a.k.a.,   For all items     Presumption of   76 FR 67062, 10/
                                Benson, Soo Gan Benson Hia     subject to the    denial.          31/2011.
                                and Thomas Yan), Blk 8         EAR. (See Sec.
                                Empress Road, 0705,    744.11 of the
                                Singapore 260008; and 2021     EAR).
                                Bukit Batok Street 23,
                                02-212, Singapore
                                659626; and 111 North Bridge
                                Road, 27-01
                                Peninsula Plaza, Singapore
                                179098; and 50 East Coast
                                Road, 2-70 Roxy
                                Square, Singapore 428769;
                                and Block 1057 Eunos Avenue
                                3, 02-85, Singapore
                                409848
                               Hossein Ahmad Larijani, 24     For all items     Presumption of   76 FR 67062, 10/
                                Semei Street 1, 06-   subject to the    denial.          31/2011.
                                08, Singapore 52996; and 10    EAR. (See Sec.
                                Jalan Besar, 11-08     744.11 of the
                                Sim Lim Tower, Singapore       EAR).
                                208787 (See alternate
                                addresses under Iran)
                               Lim Kow Seng, (a.k.a., Alvin   For all items     Presumption of   76 FR 67062, 10/
                                Stanley, Eric Lim, James       subject to the    denial.          31/2011.
                                Wong, Mike Knight and Seng     EAR. (See Sec.
                                Lim Kow), Blk 751 Woodlands     744.11 of the
                                Circle, 10-592,       EAR).
                                Singapore 730751; and 520
                                Sims Avenue, 02-04,
                                Singapore 387580; and 2021
                                Bukit Batok Street 23,
                                02-212 Singapore
                                659626; and 111 North Bridge
                                Road, 27-01
                                Peninsula Plaza, Singapore
                                179098; and 50 East Coast
                                Road, 2-70 Roxy
                                Square, Singapore 428769;
                                and Block 1057 Eunos Avenue
                                3, 02-85, Singapore
                                409848 (See alternate
                                addresses under Hong Kong)
                               Lim Yong Nam, (a.k.a., Lin     For all items     Presumption of   76 FR 67062, 10/
                                Rongnan, Steven Lim and Yong   subject to the    denial.          31/2011.
                                Nam Lim),170 Bukit Batok,      EAR. (See Sec.
                                West Avenue 8, 13-     744.11 of the
                                369, Singapore 650170; and     EAR).
                                158 Kallang Way, 02-
                                505 Kallang Basin, Singapore
                                349245; and 158 Kallang Way
                                03-511, Singapore
                                349245; and Blk 1001 Tai
                                Seng Ave. 01-2522,
                                Singapore 534411 (See
                                alternate addresses under
                                China)
                               Microsun Electronics Pte.      For all items     Presumption of   75 FR 1701, 1/
                                Ltd, Sim Lim Tower, 10 Jalan   subject to the    denial..         13/10.
                                Besar, Singapore 208787        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Monarch Aviation, 1 Scotts     For all items     Presumption of   73 FR 74001, 12/
                                Road, Suite 25-06 Shaw         subject to the    denial.          5/08.
                                Centre, Singapore 228208       EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               NEL Electronics, (a.k.a., NEL  For all items     Presumption of   76 FR 67062, 10/
                                Electronics Pte Ltd),158       subject to the    denial.          31/2011.
                                Kallang Way, 02-505   EAR. (See Sec.
                                Kallang Basin, Singapore        744.11 of the
                                349245; and 158 Kallang Way,   EAR).
                                03-511, Singapore
                                349245; and Blk 1001 Tai
                                Seng Ave. 01-2522,
                                Singapore 534411(See
                                alternate addresses under
                                China)
                               Opto Electronics Pte. Ltd,     For all items     Presumption of   75 FR 1701, 1/
                                Suite 11-08, Sim Lim Tower,    subject to the    denial..         13/10.
                                10 Jalan Besar, Singapore      EAR. (See Sec.
                                208787                          744.11 of the
                                                               EAR).
                               Surftech Electronics, Block    For all items     Presumption of   76 FR 67062, 10/
                                1057 Eunos Avenue 3, 02-85 Singapore 409848       EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).

[[Page 428]]

 
                               Wong Yuh Lan, (a.k.a., Huang   For all items     Presumption of   76 FR 67062, 10/
                                Yulan, Jancy Wong and Yuh      subject to the    denial.          31/2011.
                                Lan Wong), Blk 109B Edgedale   EAR. (See Sec.
                                Plains, 14115,         744.11 of the
                                Singapore 822109; and 10       EAR).
                                Jalan Besar, 11-08
                                Sim Lim Tower, Singapore
                                208787
                               Yip Kum Kuan, 36 Lorong N      For all items     Presumption of   73 FR 74001, 12/
                                Telok Kurau, Unit 03-03, Singapore 425160      EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
SOUTH AFRICA.................  Gunther Migeotte, 1 River      For all items     Presumption of   75 FR 36516, 6/
                                Street, Rosebank, Cape Town,   subject to the    denial.          28/10.
                                7700, South Africa; and P.O.   EAR. (SeeSec.                   77 FR 58006, 9/
                                Box 36623, Menlo Park, 0102,    744.11 of the                     19/12.
                                South Africa; and 16 Manu      EAR)..
                                Rua, 262 Sprite Avenue,
                                Faerie Glen, 0081, South
                                Africa; and Suite 17-106,
                                The Waverley Business Park,
                                Wyecroft Rd., Mowbray, Cape
                                Town, 7925, South Africa
                                (See alternate address under
                                Norway).
                               Icarus Marine (Pty) Ltd., 1    For all items     Presumption of   75 FR 36516, 6/
                                River Street, Rosebank, Cape   subject to the    denial.          28/10.
                                Town, South Africa; and        EAR. (SeeSec.                   77 FR 58006, 9/
                                Suite 17-106, The Waverley      744.11 of the                     19/12.
                                Business Park, Wyecroft Rd.,   EAR)..
                                Mowbray, Cape Town, 7925,
                                South Africa.
                               Ralph Brucher, P.O. Box 9523,  For all items     Presumption of   75 FR 36516, 6/
                                Centurion 0046, South          subject to the    denial.          28/10.
                                Africa; and Unit 4, Techni     EAR. (SeeSec.                   77 FR 58006, 9/
                                Park East, Alwyn Street,        744.11 of the                     19/12.
                                Meyerspark Silverton,          EAR)..
                                Pretoria, Gauteng, South
                                Africa; and Batter St,
                                Techniec Park East,
                                Silverton, Pretoria, 0184,
                                South Africa; and 26
                                Jakaranda St, Centurion,
                                Gauteng 0157, South Africa;
                                and Jacaranda St,
                                Hennopspark Ext 7,
                                Centurion, South Africa.
                               Scavenger Manufacturing (Pty)  For all items     Presumption of   75 FR 36516, 6/
                                Ltd., P.O. Box 288,            subject to the    denial.          28/10.
                                Silverton, Pretoria 0127,      EAR. (SeeSec.                   77 FR 58006, 9/
                                South Africa; and Unit 4,       744.11 of the                     19/12.
                                Techni Park East, Alwyn        EAR)..
                                Street, Meyerspark
                                Silverton, Pretoria,
                                Gauteng, South Africa; and
                                Batter St, Techniec Park
                                East, Silverton, Pretoria,
                                0184, South Africa; and 26
                                Jakaranda St, Centurion,
                                Gauteng 0157, South Africa;
                                and Jacaranda St,
                                Hennopspark Ext 7,
                                Centurion, South Africa; and
                                P.O. Box 9523, Centurion
                                0046, South Africa.
                               Shawn Hugo De Villiers, 1      For all items     Presumption of   75 FR 36516, 6/
                                River Street, Rosebank, Cape   subject to the    denial.          28/10.
                                Town 7700, South Africa; and   EAR. (SeeSec.                   77 FR 58006, 9/
                                Myburgii Street, Somerset       744.11 of the                     19/12.
                                West, Cape Town, South         EAR)..
                                Africa; and Suite 17-106,
                                The Waverley Business Park,
                                Wyecroft Rd., Mowbray, Cape
                                Town, 7925, South Africa.
SWEDEN.......................  Andrey Shevlyakov, Grev        For all items     Presumption of   77 FR 61256, 10/
                                Turegatan 14, 11446            subject to the    denial.          9/2012.
                                Stockholm, Sweden.             EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Catomi Consulting AB, Grev     For all items     Presumption of   77 FR 61256, 10/
                                Turegatan 14, 11446            subject to the    denial.          9/2012.
                                Stockholm, Sweden.             EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
SYRIA........................  Cham Wings Airlines, Al-       For all items     Presumption of   76 FR 50410, 8/
                                Fardous Street, Damascus,      subject to the    denial.          15/11.
                                Syria                          EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).

[[Page 429]]

 
                               EKT Electronics, a.k.a. the    For all items     Presumption of   73 FR 54509,
                                following four aliases:        subject to the    denial.         9/22/08.
                               --Katrangi Electronics;         EAR. (SeeSec.                   76 FR 50407, 8/
                               --Katrangi Trading;              744.11 of the                     15/11.
                               --Katranji Labs; and            EAR).                             77 FR 24590, 4/
                               --Electronics Systems.                                             25/2012.
                               .............................
                               1 floor, 11/A,
                                Abbasieh Building, Hijaz
                                Street, P.O. Box 10112,
                                Damascus, Syria; and 1 floor, 02/A, Fares
                                Building, Rami Street,
                                Margeh, Damascus, Syria (See
                                alternate addresses under
                                Lebanon).
                               Encyclopedia Electronics       For all items     Presumption of   73 FR 54503, 9/
                                Center, a.k.a., Hassan Matni   subject to the    denial.          22/08
                                Import Export Co., Nazir       EAR. (SeeSec.                   76 FR 50410, 8/
                                Matni Electronics, Mosalam      744.11 of the                     15/11.
                                Baroudi Street, P.O. Box       EAR).
                                12071, Halbouni, Damascus,
                                Syria
                               Higher Institute of Applied    For all items     Presumption of   70 FR 11861, 3/
                                Science and Technology         subject to the    denial.          10/05
                                (HIAST), a.k.a., Institut      EAR. (SeeSec.                   76 FR 50410, 8/
                                Superieur des Sciences          744.11 of the                     15/11.
                                Appliqu[eacute]es et de        EAR).
                                Technologie (ISSAT),
                                Institut des Sciences
                                Appliqu[eacute]es et de
                                Technologie (ISAT), P.O. Box
                                31983, Barzeh, Damascus,
                                Syria
                               Industrial Establishment of    For all items     Presumption of   70 FR 11861, 3/
                                Defense (IED), a.k.a.,         subject to the    denial.          10/05
                                Industrial Establishment of    EAR. (SeeSec.                   76 FR 50410, 8/
                                Defence (IED),                  744.11 of the                     15/11.
                                [Eacute]tablissements          EAR).
                                Industriels de la
                                D[eacute]fense (EID),
                                Etablissement Industrial de
                                la Defence (ETINDE), Al
                                Thawraa Street, P.O. Box
                                2330, Damascus, Syria
                               Mohammed Katranji, 1  For all items     Presumption of   73 FR 54503, 9/
                                floor, 11/A, Abbasieh          subject to the    denial.          22/08
                                Building, Hijaz Street, P.O.   EAR. (SeeSec.                   76 FR 50410, 8/
                                Box 10112, Damascus, Syria;     744.11 of the                     15/11.
                                and 1 floor, 02/A,    EAR).
                                Fares Building, Rami Street,
                                Margeh, Damascus, Syria (See
                                alternate address under
                                Lebanon)
                               National Standards and         For all items     Presumption of   70 FR 11861, 3/
                                Calibration Laboratory         subject to the    denial.          10/05
                                (NSCL), a.k.a., Scientific     EAR. (SeeSec.                   76 FR 50410, 8/
                                Studies and Research Center     744.11 of the                     15/11.
                                (SSRC)-NSCL, Institut          EAR).
                                National Calibration Centre,
                                P.O. Box 4470, Damascus,
                                Syria
                               Scientific Studies and         For all items     Presumption of   70 FR 11861, 3/
                                Research Center (SSRC),        subject to the    denial.          10/05
                                a.k.a., Center for             EAR. (SeeSec.                   76 FR 50410, 8/
                                Scientific Studies and          744.11 of the                     15/11.
                                Research (SSRC), Scientific    EAR).
                                Studies Research Centre
                                (SSRC), Centre d'Etudes et
                                de Recherches Scientifiques
                                (CERS), Center for Study and
                                Research (CERS), Scientific
                                Studies and Research
                                Council, Syrian Scientific
                                Research Council, Scientific
                                Research Council (SRC), P.O.
                                Box 4470, Damascus, Syria
                               Ukraine Mediterranean          For all items     Presumption of   76 FR 50410, 8/
                                Airlines, a.k.a., UM           subject to the    denial.          15/11.
                                Airlines, UM Air, 29 Ayar      EAR. (See Sec.
                                Str., Julia Dumna building,     744.11 of the
                                Damascus, Syria (See           EAR).
                                alternate addresses under
                                Iran and Ukraine)
TAIWAN.......................  Landstar Tech Company Ltd.,    For all items     Presumption of   75 FR 7359, 2/
                                13/F, Number 181, Sec 1,       subject to the    denial.          19/10.
                                Datong Rd., Sijhih City,       EAR. (See Sec.
                                Taipei, Taiwan                  744.11 of the
                                                               EAR).

[[Page 430]]

 
                               Yi-Lan Chen, a.k.a., Kevin     For all items     Presumption of   75 FR 7359, 2/
                                Chen, 13/F, Number 181,Sec.  subject to the    denial.          19/10.
                                1, Datong Rd., Sijhih City,    EAR. (See Sec.
                                Taipei, Taiwan, and 7th         744.11 of the
                                Floor, Number 17, Zhonghua     EAR).
                                Rd., Sec 2, Xinzhuang City,
                                Taipei, Taiwan
UGANDA.......................  UCB Arcade, a.k.a., the        For all items     Presumption of   77 FR 58006, 9/
                                following alias:               subject to the    denial.          19/12.
                               --Allied Trading Co.            EAR. (See Sec.
                               P.O. Box 5999, Kampala,          744.11 of the
                                Uganda (See alternate          EAR)..
                                address under Allied Trading
                                Co. in Pakistan).
UKRAINE......................  Khors Air Company, 34, Lesi    For all items     Presumption of   76 FR 50410, 8/
                                Ukrainki Boulevard, Kiev,      subject to the    denial.          15/11.
                                01133, Ukraine; and 10,        EAR. (See Sec.
                                Mekhanizatoriv Street, Kiev,    744.11 of the
                                03035, Ukraine                 EAR).
                               Natalya Totskaya, 34, Lesi     For all items     Presumption of   76 FR 50410, 8/
                                Ukrainki Boulevard, Kiev,      subject to the    denial.          15/11.
                                01133, Ukraine; and 10,        EAR. (See Sec.
                                Mekhanizatoriv Street, Kiev,    744.11 of the
                                03035, Ukraine                 EAR).
                               Roman Unytskyi, 34, Lesi       For all items     Presumption of   76 FR 50410, 8/
                                Ukrainki Boulevard, Kiev,      subject to the    denial.          15/11.
                                01133, Ukraine; and 10,        EAR. (See Sec.
                                Mekhanizatoriv Street, Kiev,    744.11 of the
                                03035, Ukraine                 EAR).
                               Sergei (Sergi) Ivanovich       For all items     Presumption of   76 FR 50410, 8/
                                Tomchani, a.k.a., Sergey       subject to the    denial.          15/11.
                                Ivanovich Tomchani, 34, Lesi   EAR. (See Sec.
                                Ukrainki Boulevard, Kiev,       744.11 of the
                                01133, Ukraine; and 10,        EAR).
                                Mekhanizatoriv Street, Kiev,
                                03035, Ukraine (See
                                alternate addresses under
                                Greece and United Kingdom)
                               Ukraine Mediterranean          For all items     Presumption of   76 FR 50410, 8/
                                Airlines, a.k.a., UM           subject to the    denial.          15/11.
                                Airlines, UM Air, 7,           EAR. (See Sec.
                                Shulyavskaya Str., Kiev,        744.11 of the
                                Ukraine (See alternate         EAR).
                                addresses under Iran and
                                Syria)
UNITED ARAB EMIRATES.........  A.H. Shamnad, P.O. Box 42340,  For all items     Presumption of   73 FR 54503, 9/
                                Dubai, U.A.E.; and No. 3-4     subject to the    denial.          22/08.
                                Sharafia Ahmed Ali Building,   EAR. (See Sec.
                                Al Nakheel, Deira, Dubai        744.11 of the
                                396, U.A.E                     EAR).
                               Abubakr Abuelazm, Dubai,       For all items     Presumption of   73 FR 54509, 9/
                                U.A.E., 500100                 subject to the    denial.          22/08. 76 FR
                                                               EAR. (SeeSec.                    21631, 4/18/
                                                                744.11 of the                     11.
                                                               EAR).
                               Advanced Technology General    For all items     Presumption of   73 FR 54509, 9/
                                Trading Company, a.k.a,        subject to the    denial.          22/08. 73 FR
                                Advanced Technologies          EAR (SeeSec.                     74001, 12/5/
                                Emirates FZ-LLC, Office        744.11 of the                      08. 74 FR
                                124 1st Floor,        EAR).                              35797,
                                Building 3, Dell                                        7/21/09. 76 FR
                                Building, Sheikh Zayed Road,                                      21631, 4/18/
                                Dubai Internet City, Dubai,                                       11.
                                U.A.E.
                               Al-Faris, RAK Free Zone, P.O.  For all items     Presumption of   73 FR 54503, 9/
                                Box 10559, Ras Al Khaimah,     subject to the    denial.          22/08.
                                U.A.E                          EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Aletra General Trading         For all items     Presumption of   76 FR 37633,
                                (a.k.a., Erman & Sultan        subject to the    denial.          June 28, 2011.
                                Trading Co.), Sabkha Street,   EAR. (See Sec.
                                Shop No. 8, Dubai, U.A.E        744.11 of the
                                                               EAR).
                               Alex Nouri Zadeh, a.k.a. the   For all items     Presumption of   77 FR 58006, 9/
                                following three aliases:       subject to the    denial.          19/12.
                               --Alex Banai;                   EAR. (See Sec.
                               --Alex Norry; and                744.11 of the
                               --Nouri Zadeh,                  EAR)..
                               No. 102 and 106, 1st Floor,
                                K5 Entrance, Alshami Rest.
                                Bldg., Al Muraqqabat Rd.,
                                Deira, Dubai, 184609 U.A.E.;
                                and P.O. Box 184607, Dubai,
                                U.A.E.
                               Ali Akbar Yahya, 505 Siraj     For all items     Presumption of   73 FR 54503, 9/
                                Building 17B Street,           subject to the    denial.          22/08.
                                Mankhool, Dubai, U.A.E         EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).

[[Page 431]]

 
                               Ali Reza Divanizadeh, Al Ras   For all items     Presumption of   73 FR 54503, 9/
                                Center Building, Behind Al     subject to the    denial.          22/08.
                                Ras Hotel, Shop No. B-05,      EAR. (See Sec.
                                P.O. Box 5680, Dubai, U.A.E     744.11 of the
                                                               EAR).
                               Al Maskah Used Car and Spare   For all items     Presumption of   77 FR 25055, 4/
                                Parts, Maliha Road,            subject to the    denial.          27/12.
                                Industrial Area 6, Sharjah,    EAR. (See Sec.
                                U.A.E.                          744.11 of the
                                                               EAR)..
                               Amir Mohammad Zahedi, RAK      For all items     Presumption of   73 FR 54503, 9/
                                Free Zone, P.O. Box 10559,     subject to the    denial.          22/08.
                                Ras Al Khaimah, U.A.E          EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Atlinx Electronics, Flat 401-  For all items     Presumption of   73 FR 54503, 9/
                                Bin Yas Center Al Maktum       subject to the    denial.          22/08.
                                Road, P.O. Box 42340, Dubai,   EAR. (See Sec.
                                U.A.E.; and Shops 3-4,          744.11 of the
                                Sharafia Ahmed Ali Building,   EAR).
                                al-Nakheel, Deira, Dubai,
                                U.A.E
                               Danoush Trading Company, No.   For all items     Presumption of   73 FR 54503, 9/
                                104, Beside Kheibar Hotel,     subject to the    denial.          22/08.
                                Morshed Market St., Dubai,     EAR. (See Sec.
                                U.A.E                           744.11 of the
                                                               EAR).
                               Divanizadeh General Trading    For all items     Presumption of   73 FR 54503, 9/
                                Company, Al Ras Center         subject to the    denial.          22/08.
                                Building, Behind Al Ras        EAR. (See Sec.
                                Hotel, Shop No. B-05, P.O.      744.11 of the
                                Box 5680, Dubai, U.A.E         EAR).
                               Fajr Almadeena Electronics,    For all items     Presumption of   77 FR 58006, 9/
                                No. 102 and 106, 1st Floor,    subject to the    denial.          19/12.
                                K5 Entrance, Alshami Rest.     EAR. (See Sec.
                                Bldg., Al Muraqqabat Rd.,       744.11 of the
                                Deira, Dubai, 184609 U.A.E.;   EAR)..
                                and P.O. Box 184607, Dubai,
                                U.A.E.
                               Farrokh Nia Yaghmaei, a.k.a,   For all items     Presumption of   73 FR 54510, 9/
                                Farokh Nia Yaghmaei, Flat      subject to the    denial.          22/08. 76 FR
                                401--Bin Yas Center--Al        EAR. (SeeSec.                    21631, 4/18/
                                Maktum Road, P.O. Box 42340,    744.11 of the                     11.
                                Dubai, U.A.E.; and Shops 3-    EAR).
                                4, Sharafia Ahmed Ali
                                Building, al-Nakheel, Deira,
                                Dubai, U.A.E.
                               Feroz Khan, a.k.a., the        For all items     Presumption of   77 FR 25055, 4/
                                following three aliases:       subject to the    denial.          27/12.
                               --Haaje Khan;                   EAR. (See Sec.
                               --Haaji Khan; and                744.11 of the
                               --Firoz.                        EAR)..
                               .............................
                               Maliha Road, Industrial Area
                                6, Sharjah, U.A.E.
                               H. Ghasir, Flat 401-Bin Yas    For all items     Presumption of   73 FR 54503, 9/
                                Center--Al Maktum Road, P.O.   subject to the    denial.          22/08.
                                Box 42340, Dubai, U.A.E.;      EAR. (See Sec.
                                and Shops 3-4, Sharafia         744.11 of the
                                Ahmed Ali Building, al-        EAR).
                                Nakheel, Deira, Dubai, U.A.E
                               Hamed Al Fahid Trading         For all items     Presumption of   73 FR 54503, 9/
                                Company, Shop No. 3-4, Ahmed   subject to the    denial.          22/08.
                                Ali Bldg., Al Jalel, Deira,    EAR. (See Sec.
                                Dubai, U.A.E                    744.11 of the
                                                               EAR).
                               Hamed Athari, No. 3-4          For all items     Presumption of   73 FR 54503, 9/
                                Sharafia Ahmed Ali Building,   subject to the    denial.          22/08.
                                Al Nakheel, Deira, Dubai       EAR. (See Sec.
                                396, U.A.E                      744.11 of the
                                                               EAR).
                               Infotec, a.k.a., the           For all items     Presumption of   76 FR 78146, 12/
                                following two aliases:         subject to the    denial..         16/11.
                               --Info Tech, and                EAR. (SeeSec.                   77 FR 71098, 11/
                               --I. Tec Trading FZE,            744.11 of the                     29/12
                               P.O. Box 10559, Ras Al          EAR).
                                Khaimah, U.A.E.; and Ras Al
                                Khaimah Free Trade Zone
                                (RAKFTZ), U.A.E.
                               Jamal Hasan, a.k.a. the        For all items     Presumption of   77 FR 58006, 9/
                                following alias:               subject to the    denial.          19/12.
                               --Jamal Haji,                   EAR. (See Sec.
                               No. 102 and 106, 1st Floor,      744.11 of the
                                K5 Entrance, Alshami Rest.     EAR)..
                                Bldg., Al Muraqqabat Rd.,
                                Deira, Dubai, 184609 U.A.E.;
                                and P.O. Box 184607, Dubai,
                                U.A.E.

[[Page 432]]

 
                               Majidco Micro Electronics,     For all items     Presumption of   73 FR 54503, 9/
                                Flat 401-Bin Yas Center--Al    subject to the    denial.          22/08.
                                Maktum Road, P.O. Box 42340,   EAR. (See Sec.
                                Dubai, U.A.E.; and Shops 3-     744.11 of the
                                4, Sharafia Ahmed Ali          EAR).
                                Building, al-Nakheel, Deira,
                                Dubai, U.A.E
                               Mayrow General Trading, Flat   For all items     Presumption of   73 FR 54503, 9/
                                401-Bin Yas Center--Al         subject to the    denial.          22/08.
                                Maktum Road, P.O. Box 42340,   EAR. (See Sec.
                                Dubai, U.A.E.; Shops 3-4,       744.11 of the
                                Sharafia Ahmed Ali Building,   EAR).
                                al-Nakheel, Deira, Dubai,
                                U.A.E.; P.O. Box 42340,
                                Deira, Dubayy, U.A.E. and
                                P.O. Box 171978, Deira,
                                Dubayy, U.A.E
                               Mayrow Technics Co., No. 3-4   For all items     Presumption of   73 FR 54503, 9/
                                Sharafia Ahmed Ali Building,   subject to the    denial.          22/08.
                                Al Nakheel, Deira, Dubai       EAR. (See Sec.
                                396, U.A.E                      744.11 of the
                                                               EAR).
                               Mehdi Rafie, Shop No. 3 & 4,   For all items     Presumption of   73 FR 54503, 9/
                                Sharafia Ahmed Ali Bldg., Al   subject to the    denial.          22/08.
                                Nakheel St., Deira, P.O. Box   EAR. (See Sec.
                                171978, Dubai, U.A.E.           744.11 of the
                                                               EAR).
                               Mehran Kamalinia, a.k.a.       For all items     Presumption of   73 FR 54503, 9/
                                Ronald Simon, Shop No. 3 &     subject to the    denial.          22/08.
                                4, Sharafia Ahmed Ali Bldg.,   EAR. (See Sec.
                                Al Nakheel St., Deira, P.O.     744.11 of the
                                Box 171978, Dubai, U.A.E       EAR).
                               Micatic General Trading, Flat  For all items     Presumption of   73 FR 54503, 9/
                                401-Bin Yas Center--Al         subject to the    denial.          22/08.
                                Maktum Road, P.O. Box 42340,   EAR. (See Sec.
                                Dubai, U.A.E.; and Shops 3-     744.11 of the
                                4, Sharafia Ahmed Ali          EAR).
                                Building, al-Nakheel, Deira,
                                Dubai, U.A.E
                               Micro Middle East              For all items     Presumption of   73 FR 54503, 9/
                                Electronics, Flat 401-Bin      subject to the    denial.          22/08.
                                Yas Center--Al Maktum Road,    EAR. (See Sec.
                                P.O. Box 42340, Dubai,          744.11 of the
                                U.A.E.; and Shops 3-4,         EAR).
                                Sharafia Ahmed Ali Building,
                                al-Nakheel, Deira, Dubai,
                                U.A.E
                               Mohammad Nayeb, No. 102 and    For all items     Presumption of   77 FR 58006, 9/
                                106, 1st Floor, K5 Entrance,   subject to the    denial.          19/12.
                                Alshami Rest. Bldg., Al        EAR. (See Sec.
                                Muraqqabat Rd., Deira,          744.11 of the
                                Dubai, 184609 U.A.E.; and      EAR)..
                                P.O. Box 184607, Dubai,
                                U.A.E.
                               Mohsen Saghafi, Shop No. 3 &   For all items     Presumption of   73 FR 54503, 9/
                                4, Sharafia Ahmed Ali Bldg.,   subject to the    denial.          22/08.
                                Al Nakheel St., Deira, P.O.    EAR. (See Sec.
                                Box 171978, Dubai, U.A.E        744.11 of the
                                                               EAR).
                               Mostafa Salehi, No. 308, 3rd   For all items     Presumption of   73 FR 54503, 9/
                                Floor, Rafi Center, Al         subject to the    denial.          22/08.
                                Nakheel, Deira, Dubai, U.A.E   EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Narinco, Flat 401-Bin Yas      For all items     Presumption of   73 FR 54503, 9/
                                Center--Al Maktum Road, P.O.   subject to the    denial.          22/08.
                                Box 42340, Dubai, U.A.E.;      EAR. (See Sec.
                                and Shops 3-4, Sharafia         744.11 of the
                                Ahmed Ali Building, al-        EAR).
                                Nakheel, Deira, Dubai, U.A.E
                               Neda Overseas Electronics      For all items     Presumption of   73 FR 54503, 9/
                                L.L.C., No. 308, 3rd Floor,    subject to the    denial.          22/08.
                                Rafi Center, Al Nakheel,       EAR. (See Sec.
                                Deira, Dubai, U.A.E             744.11 of the
                                                               EAR).
                               Pyramid Technologies, P.O.     For all items     Presumption of   73 FR 54503, 9/
                                Box 42340, Dubai, U.A.E.;      subject to the    denial.          22/08.
                                and No. 3-4, Sharafia Ahmed    EAR. (See Sec.
                                Ali Building, Al Nakheel,       744.11 of the
                                Deira, Dubai 396, U.A.E        EAR).
                               Seyed Mahdi Mousavi, P.O. Box  For all items     Presumption of   77 FR 58006, 9/
                                49465, Dubai, UAE; and P.O.    subject to the    denial.          19/12.
                                Box 7941, Dubai, U.A.E. (See   EAR. (See Sec.
                                alternate addresses under       744.11 of the
                                Iran).                         EAR)..

[[Page 433]]

 
                               Seyed Mousavi Trading,         For all items     Presumption of   77 FR 58006, 9/
                                a.k.a., the following two      subject to the    denial.          19/12.
                                aliases:                       EAR. (See Sec.
                               --Hitech Computer                744.11 of the
                                Peripherals; and               EAR)..
                               --Hitech Corporation.
                               P.O. Box 49465, Dubai, UAE;
                                and P.O. Box 7941, Dubai,
                                U.A.E. (See alternate
                                addresses under Iran).
                               Shaji Muhammed Basheer,        For all items     Presumption of   77 FR 24590, 4/
                                a.k.a. the following alias:    subject to the    denial.          25/2012.
                               --S. Basheer.                   EAR. (See Sec.
                               .............................    744.11 of the
                                Shop No. 3 & 4, Sharafia       EAR.).
                                Ahmed Ali Bldg., Al Nakheel
                                St., Deira, P.O. Box 171978,
                                Dubai, U.A.E
                               Syed Amir Ahmed Najfi, Sabkha  For all items     Presumption of   76 FR 37633,
                                Street, Shop No. 8, Dubai,     subject to the    denial.          June 28, 2011.
                                U.A.E                          EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Waseem Jawad, Ras Al Khaimah   For all items     Presumption of   76 FR 78148, 12/
                                Free Trade Zone (RAKFTZ),      subject to the    denial           16/11.
                                U.A.E.; and P.O. Box: 25123,   EAR. (See Sec.
                                Dubai U.A.E                     744.11 of the
                                                               EAR)
                               Zurmat General Trading,        For all items     Presumption of   77 FR 25055, 4/
                               Office No. 205, Platinum        subject to the    denial.          27/12.
                                Business Center, Baghdad       EAR. (See Sec.
                                Street, Al-Nahda 2, Al-         744.11 of the
                                Qusais, Dubai, U.A.E.; and     EAR)..
                                P.O. Box No. 171452, Dubai,
                                U.A.E.; and 1st Street,
                                Industrial Area 4th,
                                Sharjah, U.A.E. (Behind the
                                Toyota Showroom), and P.O.
                                Box 35470, Sharjah, U.A.E.
                               Zurmat General Trading,        For all items     Presumption of   77 FR 25057, 4/
                                Office No. 205, Platinum       subject to the    denial           27/12.
                                Business Center, Baghdad       EAR. (See Sec.
                                Street, Al-Nahda 2, Al-         744.11 of the
                                Qusais, Dubai, U.A.E.; and     EAR)..
                                P.O. Box No. 171452, Dubai,
                                U.A.E.; and 1st Street,
                                Industrial Area 4th,
                                Sharajah, U.A.E. (Behind the
                                Toyota Showroom), and P.O.
                                Box 35470, Sharajah, U.A.E.
UNITED KINGDOM...............  A.P. Finance Limited, 38,      For all items     Presumption of   76 FR 50410, 8/
                                Princes Court--88 Brompton     subject to the    denial.          15/11.
                                Road, Knightsbridge, London,   EAR. (See Sec.
                                SW3 1ES, United Kingdom; and    744.11 of the
                                Enterprise House, 113/115      EAR).
                                George Lane, London, E18
                                1AB, United Kingdom
                               Anatolii Pysarenko, 38,        For all items     Presumption of   76 FR 50410, 8/
                                Princes Court--88 Brompton     subject to the    denial.          15/11.
                                Road Knightsbridge, London,    EAR. (See Sec.
                                SW3 1ES, United Kingdom; and    744.11 of the
                                Enterprise House,113/115       EAR).
                                George Lane, London, E18
                                1AB, United Kingdom
                               Brian Douglas Woodford (See    For all items     Presumption of   73 FR 74001, 12/
                                alternate address under        subject to the    denial.          5/08.
                                Singapore)                     EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Flamar Shipping Ltd, P.O. Box  For all items     Presumption of   77 FR 61256, 10/
                                3321, Road Town, Tortola,      subject to the    denial.          9/2012.
                                British Virgin Islands.        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Farshid Gillardian, a.k.a.,    For all items     Presumption of   73 FR 74001, 12/
                                Isaac Gill, Isaac              subject to the    denial.          5/08.
                                Gillardian, London, United     EAR. (See Sec.
                                Kingdom                         744.11 of the
                                                               EAR).
                               IKCO Finance 6 Lothbury,       For all items     Presumption of   77 FR 24590, 4/
                                London, England, EC2R 7HH      subject to the    denial.          25/2012.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Latebrook Trading Ltd, Drake   For all items     Presumption of   77 FR 61256, 10/
                                Chambers, Road Town,           subject to the    denial.          9/2012.
                                Tortola, British Virgin        EAR. (See Sec.
                                Islands.                        744.11 of the
                                                               EAR.).

[[Page 434]]

 
                               MCES, London, United Kingdom   For all items     Presumption of   73 FR 74001, 12/
                                                               subject to the    denial.          5/08.
                                                               EAR. (See Sec.
                                                                744.11 of the
                                                               EAR).
                               Myra Gkizi, 38, Princes        For all items     Presumption of   76 FR 50410, 8/
                                Court--88 Brompton Road,       subject to the    denial.          15/11.
                                Knightsbridge, London, SW3     EAR. (See Sec.
                                1ES, United Kingdom             744.11 of the
                                                               EAR).
                               Nelford United Corp, P.O. Box  For all items     Presumption of   77 FR 61256, 10/
                                3321, Road Town, Tortola,      subject to the    denial.          9/2012.
                                British Virgin Islands.        EAR. (See Sec.
                                                                744.11 of the
                                                               EAR.).
                               Niki Panteli Kyriakou, 38,     For all items     Presumption of   76 FR 50410, 8/
                                Princes Court--88 Brompton     subject to the    denial.          15/11.
                                Road, Knightsbridge, London,   EAR. (See Sec.
                                SW3 1ES, United Kingdom (See    744.11 of the
                                alternate address under        EAR).
                                Cyprus)
                               Oystercredit Ltd Ogb, OMC      For all items     Presumption of   77 FR 61256, 10/
                                Chambers, Wickhams Cay 1,      subject to the    denial.          9/2012.
                                Road Town, Tortola, British    EAR. (See Sec.
                                Virgin Islands.                 744.11 of the
                                                               EAR.).
                               Profin Estates, Inc., Palm     For all items     Presumption of   77 FR 61256, 10/
                                Chambers 5, Suite 120, The     subject to the    denial.          9/2012.
                                Lake Building, Wickhams Cay    EAR. (See Sec.
                                1, P.O. Box 3175, Road Town,    744.11 of the
                                Tortola, British Virgin        EAR.).
                                Islands
                               Sergei (Sergi) Ivanovich       For all items     Presumption of   76 FR 50410, 8/
                                Tomchani, a.k.a., Sergey       subject to the    denial.          15/11.
                                Ivanovich Tomchani, 38,        EAR. (See Sec.
                                Princes Court--88 Brompton      744.11 of the
                                Road, Knightsbridge, London,   EAR).
                                SW3 1ES, United Kingdom; and
                                Enterprise House 113/115
                                George Lane, London, E18
                                1AB, United Kingdom (See
                                alternate addresses under
                                Greece and Ukraine)
                               Unimont S.A., Drake Chambers,  For all items     Presumption of   77 FR 61256, 10/
                                P.O. Box 3321, Road Town,      subject to the    denial.          9/2012.
                                Tortola, British Virgin        EAR. (See Sec.
                                Islands.                        744.11 of the
                                                               EAR.).
                               Voltero Alliance LLP, 45-51    For all items     Presumption of   77 FR 61256, 10/
                                Newhall Street 330,            subject to the    denial.          9/2012.
                                Birmingham, West Midlands,     EAR. (See Sec.
                                B3 3RB, United Kingdom.         744.11 of the
                                                               EAR.).
----------------------------------------------------------------------------------------------------------------


[63 FR 64325, Nov. 19, 1998]

    Editorial Note: For Federal Register citations affecting supplement 
no. 4 to part 744, see the List of CFR Sections Affected, which appears 
in the Finding Aids section of the printed volume and at www.fdsys.gov.



   Sec. Supplement No. 5 to Part 744--Procedures for End-User Review 
                     Committee Entity List Decisions

    The End-User Review Committee (ERC), composed of representatives of 
the Departments of Commerce, State, Defense, Energy and, where 
appropriate, the Treasury, will make all decisions to make additions to, 
removals from or changes to the Entity List. The ERC will be chaired by 
the Department of Commerce and will make all decisions to add an entry 
to the Entity List by majority vote and all decisions to remove or 
modify an entry by unanimous vote.
    When determining to add an entity to the Entity List or to modify an 
existing entry, the ERC will also specify the section or sections of the 
EAR that provide the basis for that determination. In addition, if the 
section or sections that form the basis for an addition or modification 
do not specify the license requirements, the license application review 
policy or the availability of license exceptions, the ERC will specify 
the license requirements, the license application review policy and 
which license exceptions (if any) will be available for shipments to 
that entity.
    Any agency that participates in the ERC may make a proposal for an 
addition to, modification of or removal of an entry from the Entity List 
by submitting that proposal to the chairman.

[[Page 435]]

    The ERC will vote on each proposal no later than 30 days after the 
chairman first circulates it to all member agencies unless the ERC 
unanimously agrees to postpone the vote. If a member agency is not 
satisfied with the outcome of the vote of the ERC that agency may 
escalate the matter to the Advisory Committee on Export Policy (ACEP). A 
member agency that is not satisfied with the decision of the ACEP may 
escalate the matter to the Export Administration Review Board (EARB). An 
agency that is not satisfied with the decision of the EARB may escalate 
the matter to the President.
    The composition of the ACEP and EARB as well as the procedures and 
time frames shall be the same as those specified in Executive Order 
12981 as amended by Executive Orders 13020, 13026 and 13117 for license 
applications. If at any stage, a decision by majority vote is not 
obtained by the prescribed deadline the matter shall be raised to the 
next level.
    A final decision by the ERC (or the ACEP or EARB or the President, 
as may be applicable in a particular case) to make an addition to, 
modification of, or removal of an entry from the Entity List shall 
operate as clearance by all member agencies to publish the addition, 
modification or removal as an amendment to the Entity List even if, in 
the case of a decision by the ERC to add an entry or any decision by the 
ACEP or EARB, such decision is not unanimous. Such amendments will not 
be further reviewed through the regular Export Administration 
Regulations interagency review process.
    A proposal by the ERC to make any change to the EAR other than an 
addition to, modification of, or removal of an entry from the Entity 
List shall operate as a recommendation and shall not be treated as 
interagency clearance of an EAR amendment. The chairman of the ERC will 
be responsible for circulating to all member agencies proposals 
submitted to him by any member agency. The chairman will be responsible 
for serving as secretary to the ACEP and EARB for all review of ERC 
matters. The chairman will communicate all final decisions that require 
Entity List amendments or individual ``is informed'' letters, to the 
Bureau of Industry and Security which shall be responsible for drafting 
the necessary changes to the Entity List. If the ERC decides in a 
particular case that a party should be informed individually instead of 
by EAR amendment the chairman will be responsible for preparing the ``is 
informed'' letter for the signature of the Deputy Assistant Secretary 
for Export Administration.
    A listed entity may present a request to remove or modify its Entity 
List entry along with supporting information to the chairman at Room 
3886, U.S. Department of Commerce, 14th Street and Pennsylvania Avenue, 
NW., Washington, DC 20230. The chairman shall refer all such requests 
and supporting information to all member agencies. The member agencies 
will review and vote on all such requests. The time frames, procedures 
and right of escalation by a member agency that is dissatisfied with the 
results that apply to proposals made by a member agency shall apply to 
these requests. The decision of the ERC (or the ACEP or EARB or the 
President, as may be applicable in a particular case) shall be the final 
agency decision on the request and shall not be appealable under part 
756 of the EAR. The chairman will prepare the response to the party who 
made the request. The response will state the decision on the request 
and the fact that the response is the final agency decision on the 
request. The response will be signed by the Deputy Assistant Secretary 
for Export Administration.
    The End-User Review Committee will conduct a review of the entire 
Entity List at least once per year for the purpose of determining 
whether any listed entities should be removed or modified. The review 
will include analysis of whether the criteria for listing the entity are 
still applicable and research to determine whether the name(s) and 
address(es) of each entity are accurate and complete and whether any 
affiliates of each listed entity should be added or removed.

[73 FR 49322, Aug. 21, 2008]



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 toSec. 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, 2011, 76 FR 70319 (November 
10, 2011).

    Source: 64 FR 27143, May 18, 1999, unless otherwise noted.

[[Page 436]]



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
    (x) Company identification number, once assigned by BIS.
    (2) Send the notification either by fax to (202) 482-1731 or by mail 
or courier delivery to the following address: Information Technology 
Team, Treaty Compliance Division, Bureau of Industry and Security, U.S. 
Department of Commerce, Room 4515, 14th Street and Pennsylvania Avenue, 
NW., Washington, DC 20230. 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

[[Page 437]]

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 either by fax to (202) 482-1731 or by mail or 
courier delivery to the following address: Information Technology Team, 
Treaty Compliance Division, Bureau of Industry and Security, U.S. 
Department of Commerce, Room 4515, 14th Street and Pennsylvania Avenue, 
NW., Washington, DC 20230. 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; 73 FR 38910, July 8, 2008]



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 inSec. 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, no later than 7 days 
after the date of export, either by fax to (202) 482-1731 or by mail or 
courier delivery to the following address: Information Technology Team, 
Treaty Compliance Division, Bureau of Industry and Security, U.S. 
Department of Commerce, Room 4515, 14th Street and Pennsylvania Avenue, 
NW., Washington, DC 20230. 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; 73 FR 38910, July 8, 2008]



        Sec. Supplement No. 1 to Part 745--Schedules of Chemicals

------------------------------------------------------------------------
                                                         C.A.S. Registry
                                                               No.
------------------------------------------------------------------------
                               Schedule 1
------------------------------------------------------------------------
A. Toxic chemicals:

[[Page 438]]

 
    (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................
    (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
------------------------------------------------------------------------


[[Page 439]]



 Sec. 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 May 21, 2009

Afghanistan
Albania
Algeria
Andorra
Antigua and Barbuda
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belize
Belgium
Benin
Bhutan
Bolivia
Bosnia-Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
China*
Colombia
Comoros
Congo (Democratic Republic of the)
Congo (Republic of the)
Cook Islands
Costa Rica
Cote d'Ivoire (Ivory Coast)
Croatia
Cuba
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Dominican Republic
Ecuador
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Fiji
Finland
France
Gabon
Gambia
Georgia
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Holy See
Honduras
Hungary
Iceland
India
Indonesia
Iran
Iraq
Ireland
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kiribati
Kenya
Korea (Republic of)
Kuwait
Kyrgyzstan
Laos (P.D.R.)
Latvia
Lebanon
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Luxembourg
Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Mauritius
Mauritania
Mexico
Micronesia
Moldova (Republic of)
Monaco
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nauru
Nepal
Netherlands (Kingdom of the) * * *
New Zealand
Nicaragua
Niger
Nigeria
Niue
Norway
Oman
Pakistan
Palau
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Rwanda
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
San Marino
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovak Republic
Slovenia
Solomon Islands
South Africa
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Tajikistan
Tanzania
Thailand
The United Arab Emirates
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu
Uganda
Ukraine
United Kingdom
United States
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Yemen
Zambia
Zimbabwe
      
---------------------------------------------------------------------------

    *** For CWC purposes only, the Netherlands (Kingdom of) includes: 
Aruba, Cura[ccedil]ao, and Sint Maarten (the Dutch two-fifths of the 
island of Saint Martin).
    * For CWC purposes only, China includes Hong Kong and Macau.

[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; 69 FR 12790, Mar. 18, 2004; 69 FR 77894, Dec. 29, 2004; 
70 FR 45280, Aug. 5, 2005; 71 FR 33619, June 12, 2006; 71 FR 67788, Nov. 
24, 2006; 72 FR 12729, Mar. 19, 2007; 72 FR 52002, Sept. 12, 2007; 73 FR 
38910, July 8, 2008; 74 FR 31852, July 6, 2009; 76 FR 54931, Sept. 6, 
2011]

[[Page 440]]



     Sec. Supplement No. 3 to Part 745--Foreign Authorized Agencies 
  Responsible for Issuing End-Use Certificates Pursuant toSec. 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 North Korea.
746.5-746.6 [Reserved]
746.7 Iran.
746.8 [Reserved]
746.9 Syria.

Supplement No. 1 to Part 746--Examples of Luxury Goods
Supplement Nos. 2-3 to Part 746 [Reserved]

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 6004; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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; E.O. 13338, 69 FR 26751, 3 CFR, 
2004 Comp., p 168; Presidential Determination 2003-23 of May 7, 2003, 68 
FR 26459, May 16, 2003; Presidential Determination 2007-7 of December 7, 
2006, 72 FR 1899 (January 16, 2007); Notice of May 9, 2012, 77 FR 27559 
(May 10, 2012); Notice of August 15, 2012, 77 FR 49699 (August 16, 
2012).

    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 or comprehensive sanctions, 
currently Cuba, Iran, and Syria. This part is the focal point for all 
the EAR requirements for transactions involving these countries.
    (1) Cuba. All the items on the Commerce Control List (CCL) require a 
license to Cuba. 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. 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. BIS maintains license requirements and other restrictions 
on exports and reexports to Iran. A comprehensive embargo on 
transactions involving this country is administered by the Department of 
The Treasury's Office of Foreign Assets Control (OFAC).
    (3) Syria. Pursuant to Sections 5(a)(1) and 5(a)(2)(A) of the Syria 
Accountability and Lebanese Sovereignty Restoration Act of 2003 (Pub. L. 
108-175, codified as a note to 22 U.S.C. 2151) (the SAA), since May 14, 
2004 BIS has maintained a prohibition on the export to Syria of all 
items on the Commerce Control List (in 15 CFR part 774) (CCL) and a 
prohibition on the export to Syria of products of the United States, 
other than food and medicine. The President also exercised national 
security waiver authority pursuant to Section 5(b) of the SAA for 
certain transactions. Section 746.9 of this part sets forth the specific 
license requirements, licensing policy and license exceptions applicable 
to Syria as a sanctioned

[[Page 441]]

country under the EAR. These provisions were issued consistent with 
Executive Order 13338 of May 11, 2004 which implemented the SAA.
    (b) Sanctions on selected categories of items to specific 
destinations. (1) BIS controls the export and reexport of selected 
categories of items to countries under United Nations Security Council 
arms embargoes. See the Commerce Control List in Supplement No. 1 to 
Part 774. See also Sec.Sec. 746.3 (Iraq) and 746.4 (North Korea).
    (2) The countries subject to United Nations Security Council arms 
embargoes are: Cote d'Ivoire (Ivory Coast), Democratic Republic of the 
Congo, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, 
Somalia, and Sudan.
    (3) A license is required to export or reexport items identified in 
Part 774 as having a ``UN'' reason for control to countries identified 
in paragraph (b)(2) of this section. To the extent consistent with 
United States national security and foreign policy interests, BIS will 
not approve applications for such licenses if the authorization would be 
contrary to the relevant United Nations Security Council Resolution.
    (4) You may not use any License Exception to export items subject to 
UN arms embargo controls to countries listed in 746.1(b)(2), except 
License Exception GOVSec. 740.11(b)(2)(i) and (ii).
    (c) This part also contains descriptions of controls maintained by 
the Office of Foreign Assets Control in the Treasury Department and by 
the Directorate 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.

[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; 69 FR 3005, Jan. 
22, 2004; 69 FR 23638, Apr. 29, 2004; 69 FR 46076, July 30, 2004; 72 FR 
3725, Jan. 26, 2007; 73 FR 36, Jan. 2, 2008; 76 FR 77117, Dec.12, 2011; 
77 FR 42975, July 23, 2012]



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 or software (seeSec. 740.13(a) of the EAR).
    (iii) Sales technology (TSU) (seeSec. 740.13(b) of the EAR).
    (iv) Software updates (TSU) for legally exported software (seeSec. 
740.13(c) of the EAR).
    (v) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (seeSec. 740.10(a) of the EAR).
    (vi) Baggage (BAG) (seeSec. 740.14 of the EAR).
    (vii) Governments and international organizations (GOV) (seeSec. 
740.11 of the EAR).
    (viii) Gift parcels and humanitarian donations (GFT) (seeSec. 
740.12 of the EAR).

[[Page 442]]

    (ix) Items in transit (TMP) from Canada through the U.S. (seeSec. 
740.9(b)(1)(iv) of the EAR).
    (x) Aircraft and vessels (AVS) for certain aircraft on temporary 
sojourn (seeSec. 740.15(a) of the EAR).
    (xi) Permissive reexports of certain spare parts in foreign-made 
equipment (seeSec. 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 (seeSec. 740.18 of the EAR).
    (xiii) Commodities and software authorized under License Exception 
Consumer Communications Devices (CCD) (seeSec. 740.19 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) Items may be authorized for export or reexport to Cuba on a 
case-by-case basis, provided the items are necessary to provide 
efficient and adequate telecommunications links between the United 
States and Cuba, including links established through third countries, 
and including the provision of satellite radio or satellite television 
services to 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 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).

[[Page 443]]

    (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, 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.
    (5) Applications for exports of aircraft or vessels on temporary 
sojourn to Cuba either to deliver humanitarian goods or services, or 
consistent with the foreign policy interests of the United States, will 
be considered 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 inSec. 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; 69 FR 5690, Feb. 6, 2004; 69 FR 34567, 
June 22, 2004; 74 FR 45990, Sept. 8, 2009]



Sec.  746.3  Iraq.

    Pursuant to United Nations Security Council (UNSC) Resolutions 1483 
and 1546 and other relevant resolutions, the United Nations maintains an 
embargo on the sale or supply to Iraq of arms and related materiel and 
their means of production, except items required by the Interim 
Government of Iraq or the Multinational Force in Iraq to serve the 
purposes of Resolution 1546. UNSC Resolutions 707 and 687 require that 
Iraq eliminate its nuclear weapons program and restrict its nuclear 
activities to the use of isotopes for medical, industrial or 
agricultural purposes. Such resolutions further mandate that Iraq 
eliminate its chemical and biological weapons programs as well as its 
ballistic missile program. In support of the applicable UNSC 
resolutions, certain Iraq specific license requirements and licensing 
policies are detailed in this section. In addition, this section

[[Page 444]]

details restrictions on transfers of items subject to the EAR within 
Iraq. Exporters should be aware that other provisions of the EAR, 
including parts 742 and 744, will continue to apply with respect to 
exports and reexports to Iraq and transfers within Iraq.
    (a) License requirements. (1) A license is required for the export 
or reexport to Iraq or transfer within Iraq of any item controlled on 
the Commerce Control List for NS, MT, NP, CW, CB, RS, CC, EI, SI, or SL 
reasons. See part 742 of the EAR.
    (2) A license is required for the export or reexport to Iraq or 
transfer within Iraq of any item controlled on the Commerce Control List 
for UN reasons.
    (3) A license is required for the export or reexport to Iraq or 
transfer within Iraq of items on the Commerce Control List controlled 
for RS reasons under the following ECCNs: 0B999, 0D999, 1B999, 1C992, 
1C995, 1C997, 1C999 and 6A992.
    (4) A license is required for the export or reexport to Iraq or 
transfer within Iraq of any item subject to the EAR if, at the time of 
the export, reexport or transfer, 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'' or by a ``military end-user'', as defined in this 
section. This license requirement does not apply to exports, reexports 
or transfers of items for the official use by personnel and agencies of 
the U.S. Government or exports, reexports or transfers to the Interim 
Government of Iraq or the Multinational Force in Iraq. SeeSec. 
740.11(b)(3) of the EAR for the definition of ``agency of the U.S. 
Government.'' BIS may inform an exporter, reexporter, or other person, 
either individually by specific notice or through amendment to the EAR, 
that a license is required for export, reexport or transfer of items 
subject to the EAR to specified end-users, because BIS has determined 
that there is an unacceptable risk of diversion to the uses or users 
described in this paragraph. 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, reexporter or other person 
from compliance with the license requirements of this paragraph.
    (i) 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 Wassenaar Arrangement Munitions List (WAML) (as set 
out on the Wassenaar Arrangement website at http://www.wassenaar.org); 
or use, development, or deployment of military items described on the 
USML or the WAML.
    (ii) Military end-user. In this section, the term ``military end-
user'' means any ``person'' whose actions or functions are intended to 
support ``military end-uses'' as defined in paragraph (a)(4)(i) of this 
section and who is not recognized as a legitimate military organization 
by the U.S. Government.
    (5) Definitions. For purposes of exports or reexports to Iraq or 
transfers within Iraq, ``ballistic missile'' is defined as any missile 
capable of a range greater than 150 kilometers.
    (b) Licensing policy. (1) License applications for the export or 
reexport to Iraq or transfer within Iraq of items listed in paragraph 
(a)(1), (a)(2), or (a)(3) of this section for Iraqi civil nuclear or 
military nuclear activity, except for use of isotopes for medical, 
industrial or agricultural purposes, will be subject to a policy of 
denial.
    (2) License applications for the export or reexport to Iraq or 
transfer within Iraq of machine tools controlled for national security 
(NS) or nuclear non-proliferation (NP) reasons, as well as for any items 
controlled for crime control (CC) or united nations (UN) reasons 
(including items controlled under ECCN 0A986) or ECCNs that end in the 
number ``018'', that would make a material contribution to the 
production, research, design, development, support, maintenance or 
manufacture of Iraqi weapons of mass destruction, ballistic missiles or 
arms and related materiel will be subject to a general policy of denial.

[[Page 445]]

    (3) License applications for the export or reexport to Iraq or 
transfer within Iraq of items listed in paragraph (a)(3) of this section 
will be reviewed on a case-by-case basis to determine if they would 
contribute to the building of Iraqi civil infrastructure. Applications 
determined not to contribute to the building of Iraqi civil 
infrastructure will be subject to a general policy of denial.
    (4) License applications for the export or reexport to Iraq or 
transfer within Iraq of items listed in paragraph (a)(4) of this section 
will be subject to a policy of denial.
    (c) License exceptions. You may export or reexport without a license 
if your transaction meets all the requirements of any of the following 
License Exceptions: CIV, APP, TMP, RPL, GOV, GFT, TSU, BAG, AVS, or ENC. 
For specific requirements of each of these License Exceptions, refer to 
part 740 of the EAR.
    (d) Related State Department controls. The Department of State, 
Directorate of Defense Trade Controls, maintains controls on arms and 
military equipment to Iraq under the International Traffic in Arms 
Regulations (22 CFR parts 120 through 130).
    (e) Transition for licenses issued by the Department of the 
Treasury's Office of Foreign Assets Control. Prior to July 30, 2004, the 
Department of the Treasury's Office of Foreign Assets Control (OFAC) 
exercised primary licensing jurisdiction for transactions with Iraq, as 
provided in 31 CFR part 575. This section establishes a validity period 
for licenses issued by OFAC for exports or reexports to Iraq.
    (1) Validity period. Licenses issued by OFAC for the export or 
reexport of items that require a license to Iraq under the Export 
Administration Regulations (EAR) shall continue to be valid under the 
EAR. For those licenses with specified expiration dates, such dates will 
continue to apply. Licenses without specified expiration dates will be 
valid through July 30, 2005. The recordkeeping requirements applicable 
to exports and reexports of items pursuant to licenses issued by OFAC 
are described in paragraph (e)(3) of this section.

    Note to paragraph (e)(1). Persons that have been authorized by OFAC 
to export or reexport items that are subject to the export control 
jurisdiction of other agencies must consult with OFAC and the other 
relevant agencies with regard to the expiration date of the 
authorization granted by OFAC.

    (2) Reexports or transfers. Items subject to a license requirement 
under the EAR for export or reexport to Iraq as of July 30, 2004, that 
were previously exported or reexported to Iraq under a specific license 
granted by OFAC:
    (i) May not be transferred within Iraq to a new end-user without a 
license from BIS,
    (ii) May be reexported to the United States without a license,
    (iii) May be reexported to third countries subject to the license 
requirements for the destination, end-use or end-user set forth 
elsewhere in the EAR.
    (3) Recordkeeping requirement. Persons in receipt of a specific 
license granted by OFAC described in paragraph (e)(1) of this section 
must maintain a record of those items exported or reexported to Iraq 
pursuant to such specific license and record when the items are consumed 
or destroyed in the normal course of their use in Iraq, reexported to a 
third country not requiring further authorization from BIS, or returned 
to the United States. This requirement applies only to items subject to 
a license requirement under the EAR for export to Iraq as of July 30, 
2004. These records must be maintained in accordance with recordkeeping 
requirements set forth in part 762 of the EAR and must include the 
following information:
    (i) Date of export or reexport and related details (including means 
of transport);
    (ii) Description of items (including ECCN) and value of items in 
U.S. Dollars;
    (iii) Description of proposed end-use and locations in Iraq where 
items are intended to be used;
    (iv) Parties other than specific OFAC licensee who may be given 
temporary access to the items; and
    (v) Date of consumption or destruction, if the items are consumed or 
destroyed in the normal course of their use in Iraq, or the date of 
reexport to a

[[Page 446]]

third country not requiring further authorization from BIS, or return to 
the United States.
    (f) License Requirements for certain transfers within Iraq of items 
subject to the EAR--(1) Licensed items. A license is required for the 
transfer within Iraq of any item subject to the EAR exported or 
reexported pursuant to a specific license issued by the Department of 
the Treasury or a Department of Commerce specific license or License 
Exception.
    (2) Other items. (i) A license is required for the transfer within 
Iraq of any item subject to the EAR, if, at the time of the transfer, 
you know, have reason to know, or are informed by BIS that the item will 
be used in the design, development, production or use of weapons of mass 
destruction or the means of their delivery, as set forth in part 744 of 
the EAR.
    (ii) A license is required for the transfer within Iraq to 
designated terrorists or terrorist organizations, as set forth in 
Sec.Sec. 744.12, 744.13, or 744.14 of the EAR.

[69 FR 46077, July 30, 2004, as amended at 71 FR 20886, Apr. 24, 2006; 
71 FR 51718, Aug. 31, 2006; 71 FR 67036, Nov. 20, 2006; 73 FR 57509, 
Oct. 3, 2008]



Sec.  746.4  North Korea.

    (a) Licensing Requirements. As authorized by section 6 of the Export 
Administration Act of 1979, as amended, and consistent with United 
Nations Security Council Resolution 1718, a license is required to 
export or reexport any item subject to the EAR (see part 734 of the EAR) 
to the Democratic People's Republic of Korea (North Korea), except food 
and medicines classified as EAR99 (definitions in part 772 of the EAR). 
Portions of certain license exceptions, set forth in paragraph (c) of 
this section, may be available. Exporters should be aware that other 
provisions of the EAR, including parts 742 and 744, also apply to 
exports and reexports to North Korea.
    (b) Licensing Policy. Items requiring a license are subject to case-
by-case review, except as follows:
    (1) Luxury Goods. Applications to export or reexport luxury goods, 
e.g., luxury automobiles; yachts; gems; jewelry; other fashion 
accessories; cosmetics; perfumes; furs; designer clothing; luxury 
watches; rugs and tapestries; electronic entertainment software and 
equipment; recreational sports equipment; tobacco; wine and other 
alcoholic beverages; musical instruments; art; and antiques and 
collectible items, including but not limited to rare coins and stamps 
are subject to a general policy of denial. For further information on 
luxury goods, see Supplement No. 1 to part 746.
    (2) Applications to export or reexport arms and related materiel are 
subject to a general policy of denial. In addition, applications to 
export or reexport items specified by UN documents S/2006/814, S/2006/
815 and S/2006/853 and other items that the UN Security Council or the 
Sanctions Committee established pursuant to UN Security Council 
Resolution 1718 has determined could contribute to North Korea's 
nuclear-related, ballistic missile-related or other weapons of mass 
destruction-related programs are also subject to a general policy of 
denial.
    (3) Applications to export or reexport items controlled for NP and 
MT reasons (except ECCN 7A103 items) are subject to a general policy of 
denial.
    (4) Applications to export or reexport humanitarian items (e.g., 
blankets, basic footwear, heating oil, and other items meeting 
subsistence needs) intended for the benefit of the North Korean people; 
items in support of United Nations humanitarian efforts; and 
agricultural commodities or medical devices items that are determined by 
BIS, in consultation with the interagency license review community, not 
to be luxury goods are subject to a general policy of approval.
    (5) Other items on the CCL. See Section 742.19(b) of the EAR.
    (c) License Exceptions. You may export or reexport without a license 
if your transaction meets all the applicable terms and conditions of any 
of the license exception subsections specified in this paragraph. To 
determine scope and eligibility requirements, you will need to refer to 
the sections or specific paragraphs of part 740 (License Exceptions). 
Read each license exception carefully, as the provisions available for 
countries subject to sanctions are generally narrow.

[[Page 447]]

    (1) TMP for items for use by the news media as set forth inSec. 
740.9(a)(2)(viii) of the EAR.
    (2) GOV for items for personal or official use by personnel and 
agencies of the U.S. Government, the International Atomic Energy Agency 
(IAEA), or the European Atomic Energy Community (Euratom) as set forth 
inSec. 740.11(a), (b)(2)(i), and (b)(2)(ii) of the EAR.
    (3) GFT, except that GFT is not available to export or reexport 
luxury goods as described in this section to North Korea.
    (4) TSU for operation technology and software for lawfully exported 
commodities as set forth inSec. 740.13(a) and sales technology as set 
forth inSec. 740.13 (b) of the EAR.
    (5) BAG for exports of items by individuals leaving the United 
States as personal baggage as set forth inSec. 740.14(a) through (d) 
of the EAR.
    (6) AVS for civil aircraft as set forth inSec. 740.15(a)(4) of the 
EAR.
    (d) The Secretary of State has designated North Korea as a country 
the government of which has repeatedly provided support for acts of 
international terrorism. For anti-terrorism controls, see Section 742.19 
of the EAR.
    (e) OFAC maintains controls on certain transactions involving 
persons subject to U.S. jurisdiction and North Korean entities or any 
specially designated North Korean national.

[72 FR 3725, Jan. 26, 2007, as amended at 72 FR 20223, Apr. 24, 2007]



Sec.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. 
This embargo includes prohibitions on exports and certain reexport 
transactions involving Iran, including transactions dealing with items 
subject to the EAR. These prohibitions are set forth in OFAC's Iranian 
Transactions Regulations (31 CFR part 560). In addition, BIS maintains 
licensing requirements on exports and reexports to Iran under the EAR as 
described in paragraph (a)(1) of this section or elsewhere in the EAR 
(See, e.g.,Sec. 742.8--Anti-terrorism: Iran).
    (a) License Requirements--(1) EAR license requirements. A license is 
required under the EAR to export or reexport 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 0A980, 0A982, 0A983, 0A985, 0E982, 1C355, 
1C395, 1C980, 1C981, 1C982, 1C983, 1C984, 2A994, 2D994, 2E994, 5A001.i, 
5A980, 5D001 (for 5A001.i or for 5E001.a (for 5A001.i, or for 5D001.a 
(for 5A001.i))), 5D980, 5E001.a (for 5A001.i, or for 5D001.a (for 
5A001.i)) or 5E980.
    (2) 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, such authorization is considered authorization for purposes of 
the EAR as well. Transactions that are not subject to OFAC regulatory 
authority may require BIS authorization.
    (b) Licensing Policy. Applications for licenses for transactions for 
humanitarian reasons or for the safety of civil aviation and safe 
operation of U.S-origin aircraft will be considered on a case-by-case 
basis. Licenses for other purposes generally will be denied.
    (c) License Exceptions. No license exceptions may be used for 
exports or reexports to Iran.
    (d) EAR Anti-terrorism controls. The Secretary of State has 
designated Iran as a country that has repeatedly provided support for 
acts of international terrorism. Anti-terrorism license requirements and 
licensing policy regarding Iran are set forth inSec. 742.8 of the EAR.
    (e) Prohibition on exporting or reexporting EAR items without 
required OFAC authorization. No person may export or reexport any item 
that is subject to the EAR if such transaction is prohibited by the 
Iranian Transactions Regulations (31 CFR part 560) and not authorized by 
OFAC. The prohibition of this paragraph (e) applies whether or

[[Page 448]]

not the EAR requires a license for the export or reexport.

[74 FR 2358, Jan. 15, 2009, as amended at 77 FR 39369, July 2, 2012]



Sec.  746.8  [Reserved]



Sec.  746.9  Syria.

    Sections 5(a)(1) and 5(a)(2)(A) of the Syria Accountability and 
Lebanese Sovereignty Restoration Act of 2003 (Pub. L. 108-175, codified 
as a note to 22 U.S.C. 2151) (the SAA) require a prohibition on the 
export to Syria of all items on the Commerce Control List (in 15 CFR 
part 774) (CCL) and a prohibition on the export to Syria of products of 
the United States, other than food and medicine. The President also 
exercised national security waiver authority pursuant to Section 5(b) of 
the SAA for certain transactions. The provisions in this section were 
issued consistent with Executive Order 13338 of May 11, 2004 which 
implemented the SAA.
    (a) License requirements. A license is required for the export or 
reexport to Syria of all items subject to the EAR, except food and 
medicine classified as EAR99 (food and medicine are defined in part 772 
of the EAR). A license is required for the ``deemed export'' and 
``deemed reexport,'' as described inSec. 734.2(b) of the EAR, of any 
technology or source code on the Commerce Control List (CCL) to a Syrian 
foreign national. ``Deemed exports'' and ``deemed reexports'' to Syrian 
foreign nationals involving technology or source code subject to the EAR 
but not listed on the CCL do not require a license.
    (b) License Exceptions. No License Exceptions to the license 
requirements set forth in paragraph (a) of this section are available 
for exports or reexports to Syria, except the following:
    (1) TMP for items for use by the news media as set forth inSec. 
740.9(a)(2)(viii) of the EAR,
    (2) GOV for items for personal or official use by personnel and 
agencies of the U.S. Government as set forth inSec. 740.11(b)(2)(i) 
and (ii) of the EAR,
    (3) TSU for operation technology and software, sales technology, and 
software updates pursuant to the terms ofSec. 740.13(a), (b), or (c) 
of the EAR,
    (4) BAG for exports of personally-owned items by individuals leaving 
the United States as personal baggage pursuant to the terms ofSec. 
740.14(a) through (d), only, of the EAR, and
    (5) AVS for the temporary sojourn of civil aircraft reexported to 
Syria pursuant to the terms ofSec. 740.15(a)(4) of the EAR.
    (c) Licensing policy. (1) Except as described in this paragraph (c), 
all license applications for export or reexport to Syria are subject to 
a general policy of denial. License applications for ``deemed exports'' 
and ``deemed reexports'' of technology and source code will be reviewed 
on a case-by-case basis. BIS may consider, on a case-by-case basis, 
license applications for exports and reexports of items necessary to 
carry out the President's constitutional authority to conduct U.S. 
foreign affairs and as Commander-in-Chief, including exports and 
reexports of items necessary for the performance of official functions 
by the United States Government personnel abroad.
    (2) BIS may also consider the following license applications on a 
case-by-case basis: items in support of activities, diplomatic or 
otherwise, of the United States Government (to the extent that 
regulation of such exportation or reexportation would not fall within 
the President's constitutional authority to conduct the nation's foreign 
affairs); medicine (on the CCL) and medical devices (both as defined in 
part 772 of the EAR); parts and components intended to ensure the safety 
of civil aviation and the safe operation of commercial passenger 
aircraft; aircraft chartered by the Syrian Government for the transport 
of Syrian Government officials on official Syrian Government business; 
telecommunications equipment and associated computers, software and 
technology; and items in support of United Nations operations in Syria. 
The total dollar value of each approved license for aircraft parts for 
flight safety normally will be limited to no more than $2 million over 
the 24-month standard license term, except in the case of complete 
overhauls.
    (3) In addition, consistent with part 734 of the EAR, the following 
are not subject to the EAR and therefore not

[[Page 449]]

subject to this General Order: informational materials in the form of 
books and other media; publicly available software and technology; and 
technology exported in the form of a patent application or an amendment, 
modification, or supplement thereto or a division thereof (see 15 CFR 
734.3(b)(1)(v), (b)(2) and (b)(3)).
    Note toSec. 746.9: For administrative reasons, BIS continues to 
maintain provisions in General Order No. 2, Supplement No. 1 to part 736 
of the EAR relating to the President's waiver of certain prohibitions. 
This section contains all of the substantive controls against Syria, 
including the waiver-related provisions maintained in General Order No. 
2.

[ 76 FR 77117, Dec. 12, 2011]



       Sec. Supplement No. 1 to Part 746--Examples of Luxury Goods

    The following further amplifies the illustrative list of luxury 
goods set forth inSec. 746.4(b)(1):
    (a) Tobacco and tobacco products
    (b) Luxury watches: Wrist, pocket, and others with a case of 
precious metal or of metal clad with precious metal
    (c) Apparel and fashion items, as follows:
    (1) Leather articles
    (2) Silk articles
    (3) Fur skins and artificial furs
    (4) Fashion accessories: Leather travel goods, vanity cases, 
binocular and camera cases, handbags, wallets, designer fountain pens, 
silk scarves
    (5) Cosmetics, including beauty and make-up
    (6) Perfumes and toilet waters
    (7) Designer clothing: Leather apparel and clothing accessories
    (d) Decorative items, as follows:
    (1) Rugs and tapestries
    (2) Tableware of porcelain or bone china
    (3) Items of lead crystal
    (4) Works of art (including paintings, original sculptures and 
statuary), antiques (more than 100 years old), and collectible items, 
including rare coins and stamps
    (e) Jewelry: Jewelry with pearls, gems, precious and semi-precious 
stones (including diamonds, sapphires, rubies, and emeralds), jewelry of 
precious metal or of metal clad with precious metal
    (f) Electronic items, as follows:
    (1) Flat-screen, plasma, or LCD panel televisions or other video 
monitors or receivers (including high-definition televisions), and any 
television larger than 29 inches; DVD players
    (2) Personal digital assistants (PDAs)
    (3) Personal digital music players
    (4) Computer laptops
    (g) Transportation items, as follows:
    (1) Yachts and other aquatic recreational vehicles (such as personal 
watercraft)
    (2) Luxury automobiles (and motor vehicles): Automobiles and other 
motor vehicles to transport people (other than public transport), 
including station wagons
    (3) Racing cars, snowmobiles, and motorcycles
    (4) Personal transportation devices (stand-up motorized scooters)
    (h) Recreational items, as follows:
    (1) Musical instruments
    (2) Recreational sports equipment
    (i) Alcoholic beverages: wine, beer, ales, and liquor

[72 FR 3726, Jan. 26, 2007, as amended at 72 FR 20223, Apr. 24, 2007]



             Sec. Supplement Nos.2-3 to Part 746 [Reserved]



PART 747_SPECIAL IRAQ RECONSTRUCTION LICENSE--Table of Contents



Sec.
747.1 Scope.
747.2 Eligibility requirements.
747.3 Eligible items.
747.4 Steps you must follow to apply for a SIRL.
747.5 SIRL application review process.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; Sec 
1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Notice 
of August 15, 2012, 77 FR 49699 (August 16, 2012).

    Source: 69 FR 46078, July 30, 2004, unless otherwise noted.



Sec.  747.1  Scope.

    A Special Iraq Reconstruction License (SIRL) authorizes exports and 
reexports to Iraq and transfers within Iraq of items in furtherance of 
civil reconstruction and other related projects.



Sec.  747.2  Eligibility requirements.

    (a) A SIRL authorizes exports and reexports to Iraq and transfers 
within Iraq of items in furtherance of civil reconstruction and other 
projects funded by:
    (1) The United States Government;
    (2) The United Nations, the World Bank, and the International 
Monetary Fund, their affiliated entities (i.e., International Bank for 
Reconstruction

[[Page 450]]

and Development, International Finance Corporation, and United Nations 
Development Programme); and
    (3) Any other entities that the U.S. Government may designate.
    (b) To be eligible for a SIRL, exports, reexports or transfers must 
be made pursuant to and within the scope of contractual or similar 
arrangements in furtherance of civil reconstruction or other projects in 
Iraq funded by any of the entities described above.



Sec.  747.3  Eligible items.

    All items subject to the EAR, other than items controlled for 
missile technology (MT), nuclear nonproliferation (NP) or chemical and 
biological weapons (CB) reasons, are eligible for export, reexport or 
transfer under a SIRL.



Sec.  747.4  Steps you must follow to apply for a SIRL.

    (a) Step One: Prepare your documentation. (1) Form BIS-748P, 
Multipurpose Application, and Form BIS-748P-A, Item Appendix. You must 
complete the Multipurpose Application Form (BIS-748P) to apply for a 
SIRL. Applications must specifically describe, on Form BIS-748P-A, Item 
Appendix, all items subject to the EAR to be exported or reexported to 
Iraq, or transferred within Iraq, for which BIS approval is sought. 
Export control classification numbers (ECCNs) must be identified for all 
such items. Applicants should provide BIS commodity classifications, 
where available, as this will assist BIS to rule upon the application 
quickly.
    (2) Form BIS-748P-B, End-User Appendix. All end-users must be 
identified on Form BIS-748P-B, End-User Appendix.
    (b) Step Two: Narrative statement to support application--In support 
of an application for a SIRL, exporters must submit with the application 
a narrative statement that includes the following information:
    (1) Identity of all parties to the proposed transaction;
    (2) Detailed description of the project, funding entity, the 
contract or work order which formed the basis of the transaction, and 
any identification number or project code for that contract or work 
order;
    (3) Explanation of how the project will contribute to the 
reconstruction of Iraq and any potential security issues associated with 
the items to be exported, reexported or transferred;
    (4) Written statement from one or more funding agencies referred to 
inSec. 747.2 addressing whether the transaction is likely to pose 
security issues;
    (5) Certification that items will not be used in any of the 
prohibited proliferation activities described in part 744 of the EAR;
    (6) For items that will remain in the control of the exporter, a 
commitment to return all items to the United States when the authorized 
project or activity is complete, excluding those items that are consumed 
in Iraq, absent specific permission from BIS; and
    (7) Certification that parties to the transaction will obtain a 
license from BIS prior to transferring within Iraq or reexporting items 
to end-users not authorized under the SIRL, unless they would not 
require a BIS license to the new country of destination. (Please see the 
guidance inSec. 747.5(d) regarding the transfer of items to persons 
within Iraq not included on the End-User Appendix.)



Sec.  747.5  SIRL application review process.

    (a) Application processing time frames. Upon receiving a complete 
application with all requisite supporting documentation, BIS may review 
the application for up to ten days before referring the application to 
the other appropriate agencies. Agencies have 30 days from the date of 
referral to process the application. The U.S. Government will review the 
application as expeditiously as possible.
    (b) Review policy. (1) BIS will review SIRL applications on a case-
by-case basis. To approve a SIRL, BIS must be satisfied that the parties 
to the 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 SIRL application, BIS may retain

[[Page 451]]

the right to limit the items that are eligible or to prohibit the 
export, reexport, or transfer of items under the reconstruction license 
to specific firms or individuals.
    (2) BIS will thoroughly analyze all parties, items and activities 
associated with the applicant's proposed transaction(s). If BIS cannot 
verify that all parties, items and activities are appropriate, or 
establish the reliability of the proposed parties to the application, it 
may deny the application, or modify it by eliminating certain 
consignees, items, activities or other elements.
    (3) The licensing decision will focus on the following factors:
    (i) The proposed end-use(s);
    (ii) If the proposed transaction will contribute to the 
reconstruction of Iraq;
    (iii) If the proposed transaction could contribute to the design, 
development, production, stockpiling, or use of nuclear or chemical or 
biological weapons, or missiles of greater than 150 kilometer range and 
the types of assurances available against these activities;
    (iv) The potential impact of the proposed transaction on the 
security situation in Iraq; and
    (v) The reliability of all parties to the proposed transaction.
    (4) If the U.S. Government determines that the proposed transaction 
does not satisfy all the criteria of part 747, BIS will inform the 
applicant that the agency will review the application under standard 
license procedures for individual items rather than as a SIRL. The 
applicant may elect to have the application Returned Without Action. 
Applicants are not required to use the SIRL procedure and may seek 
authorization under standard license procedures.
    (c) Validity period. SIRLs will be valid until the completion or 
discontinuation of the associated project detailed in the application or 
until otherwise determined by BIS. Applicants are required to submit a 
report to BIS verifying completion of the project or indicating that the 
project has been discontinued. These reports should be submitted to the 
following address: U.S. Department of Commerce, Office of Exporter 
Services, ATTN: Reports, 14th St. & Pennsylvania Ave., NW., Washington, 
DC, 20230. The report should include the following information:
    (1) The SIRL reference number;
    (2) The date the project is completed or discontinued;
    (3) Verification that items exported under the authority of the SIRL 
were, as applicable, consumed during use, returned to the United States, 
reexported to a third country, or transferred to a party within Iraq for 
whom the applicant has received a license from BIS; and
    (4) The reference numbers of the licenses received for the reexport 
or transfer within Iraq, if required.
    (d) Post-shipment information. For any items exported or reexported 
pursuant to a SIRL that are not consumed in Iraq, the applicant must 
either:
    (1) Return the items to the United States,
    (2) Reexport the items to a third country, and obtain prior BIS 
approval where required; or
    (3) Seek a license from BIS prior to transferring the items within 
Iraq to an end-user not identified on the End-User Appendix.
    (e) Changes to a SIRL. Changes to a SIRL require BIS prior approval 
if they involve:
    (1) Change to consignee name or address;
    (2) Addition of new consignee;
    (3) Addition of new item;
    (4) Changes to end user information or additional end users added; 
and/or
    (5) Change to license holder ownership or control. Applicants must 
submit a written request for a change to the Office of Exporter 
Services. BIS will respond to these requests in written form. Changes 
involving the following must be reported to BIS within 30 days of their 
occurrence but do not require prior BIS approval:
    (i) License holder address, contact information, or license value; 
or
    (ii) Removing consignee(s), items or end users from the SIRL.
    (f) Administrative actions. If BIS believes any party to a SIRL is 
not complying with all conditions of the SIRL, BIS may take measures 
including revoking or suspending parts of the SIRL, or may restrict what 
items may

[[Page 452]]

be shipped under the SIRL. Whenever necessary to protect the national 
interest of the United States, BIS may take any licensing action it 
deems appropriate, without regard to contracts or agreements entered 
into before such administrative action.



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 Registering for electronic submission of license applications and 
          related documents.
748.8 Unique application and submission requirements.
748.9 Support documents for license applications.
748.10 Import Certificates and End-User Statements.
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.
748.15 Authorization Validated End-User (VEU).

Supplement No. 1 to Part 748--BIS-748P, BIS-748P-A; Item Appendix, and 
          BIS XA-748P-B; End-User Appendix; Multipurpose Application 
          Instructions
Supplement No. 2 to Part 748--Unique Application and Submission 
          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-User 
          Statement 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]
Supplement No. 7 to Part 748--Authorization Validated End-User (VEU): 
          List of Validated End-Users, Respective Items Eligible for 
          Export, Reexport and Transfer, and Eligible Destinations
Supplement No. 8 to Part 748--Information Required in Requests for 
          Validated End-User (Veu) Authorization
Supplement No. 9 to Part 748--End-User Review Committee Procedures

    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 15, 2012, 77 FR 49699 
(August 16, 2012).

    Source: 61 FR 12812, Mar. 25, 1996, unless otherwise noted.



Sec.  748.1  General provisions.

    (a) Scope. In this part, references to the Export Administration 
Regulations or EAR are references to 15 CFR chapter VII, subchapter C. 
The provisions of this part involve requests for classifications and 
advisory opinions, export license applications, encryption registration, 
reexport license applications, and certain license exception notices 
subject to the EAR. All terms, conditions, provisions, and instructions, 
including the applicant and consignee certifications, contained in 
electronic or paper form(s) are incorporated as part of the EAR. For the 
purposes of this part, the term ``application'' refers to both 
electronic applications and the Form BIS-748P: Multipurpose Application.
    (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 purpose 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 or of the Under Secretary for Industry and Security.
    (d) Electronic Filing Required. All export and reexport license 
applications (other than Special Comprehensive License or Special Iraq 
Reconstruction

[[Page 453]]

License applications), encryption registrations, license exception AGR 
notifications, and classification requests and their accompanying 
documents must be filed via BIS's Simplified Network Application 
Processing system (SNAP-R), unless BIS authorizes submission via the 
paper forms BIS 748-P (Multipurpose Application Form), BIS-748P-A (Item 
Appendix) and BIS-748P-B, (End-User Appendix). Only original paper forms 
may be used. Facsimiles or reproductions are not acceptable.
    (1) Reasons for authorizing paper submissions. BIS will process 
paper applications notices or requests if the submitting party meets one 
or more of the following criteria:
    (i) BIS has received no more than one submission (i.e. the total 
number of export license applications, reexport license applications, 
license exception AGR notifications, and classification requests) from 
that party in the twelve months immediately preceding its receipt of the 
current submission;
    (ii) The party does not have access to the Internet;
    (iii) BIS has rejected the party's electronic filing registration or 
revoked its eligibility to file electronically;
    (iv) BIS has requested that the party submit a paper copy for a 
particular transaction; or
    (v) BIS has determined that urgency, a need to implement U.S. 
government policy or a circumstance outside the submitting party's 
control justify allowing paper submissions in a particular instance.
    (2) Procedure for requesting authorization to file paper 
applications, notifications, or requests. The applicant must state in 
Block 24 or as an attachment to the paper application (Form BIS 748-P) 
which of the criteria in paragraph (d)(1) of this section it meets and 
the facts that support such statement. Submit the completed application, 
notification or request to Bureau of Industry and Security, U.S. 
Department of Commerce, 14th Street and Pennsylvania, NW., Room H2705, 
Washington DC 20230.
    (3) BIS decision. If BIS authorizes or requires paper filing 
pursuant to this section, it will process the application, notification 
or request in accordance with Part 750 of the EAR. If BIS rejects a 
request to file using paper, it will return the Form BIS-748P and all 
attachments to the submitting party without action and will state the 
reason for its decision.

[61 FR 12812, Mar. 25, 1996, as amended at 70 FR 8249, Feb. 18, 2005; 73 
FR 49329, Aug. 21, 2008; 75 FR 36499, June 25, 2010]



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:
    (1) Outreach and Educational Services Division, U.S. Department of 
Commerce, 14th Street and Pennsylvania Ave., NW., Room H1099D, 
Washington, DC 20230, Tel: (202) 482-4811, Fax: (202) 482-2927, or
    (2) Western Regional Office, Northern California Branch, U.S. 
Department of Commerce, 2302 Martin St., Suite 330, Irvine, CA 92612, 
Tel: (949) 660-0144, Fax: (949) 660-9347, or
    (3) Bureau of Industry and Security, 160 W. Santa Clara Street, 
Suite 725, San Jose, CA 95113, Tel: (408) 998-8805 or (408) 998-8806, 
Fax: (408) 998-8677.
    (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.

[61 FR 12812, Mar. 25, 1996, as amended at 69 FR 5690, Feb. 6, 2004; 70 
FR 22249, Apr. 29, 2005; 72 FR 3945, Jan. 29, 2007; 73 FR 36, Jan. 2, 
2008; 73 FR 49330, Aug. 21, 2008; 76 FR 40604, July 11, 2011]



Sec.  748.3  Classification requests, advisory opinions, and encryption
registrations.

    (a) Introduction. You may ask BIS to provide you with the correct 
Export Control Classification Number (ECCN) down to the paragraph (or 
subparagraph) level, if appropriate. BIS will issue you a determination 
that each item identified in your classification request is either 
described by an ECCN in the Commerce Control List (CCL) in Supplement 
No. 1 to Part 774 of the EAR or not described by an ECCN and, therefore, 
an ``EAR99'' item. These classification determinations issued by

[[Page 454]]

BIS are not U.S. Government determinations that the items described 
therein are ``subject to the EAR,'' as this term is defined inSec. 
734.3 of the EAR. Those who request commodity classifications and 
advisory opinions should have determined that the items at issue are not 
subject to the exclusive export control jurisdiction of one of the other 
U.S. Government agencies listed inSec. 734.3(b) of the EAR. 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, is 
commonly referred to as an ``Advisory Opinion.'' The encryption 
provisions in the EAR require the submission of an encryption 
registration or classification request in accordance withSec. 
740.17(d) of the EAR in order for certain items to be eligible for 
export and reexport under License Exception ENC (seeSec. 740.17 of the 
EAR) or to be released from ``EI'' controls (see Sec.Sec. 742.15(b)(1) 
and 742.15(b)(3) of the EAR).
    (b) Classification requests. Submit classification requests in 
accordance with the procedures inSec. 748.1.
    (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 submitted as PDF files attached 
to the SNAP-R submission unless a paper submission is authorized 
pursuant toSec. 748.1 of the EAR.
    (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 the 
application. 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.
    (3) BIS assigns each of its commodity classifications a Commodity 
Classification Automated Tracking System (CCATS) number. Neither the BIS 
classification nor the CCATS number may be relied upon or cited as 
evidence that the U.S. Government has determined that the items 
described in the commodity classification determination are subject to 
the EAR (See 15 CFR 734.3).
    (c) Advisory Opinions. Advisory opinion requests must be in writing 
and be submitted to the address listed inSec. 748.1(d)(2). 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.
    (3) Requests for Validated End-User authorization should be 
submitted in accordance with the provisions set forth inSec. 748.15 
and Supplement Nos. 8 and 9 to this part.

[[Page 455]]

    (4) Advisory opinions are limited in scope to BIS's interpretation 
of EAR provisions. Advisory opinions differ from commodity 
classifications in that advisory opinions are not limited to the 
interpretation of provisions contained in the Commerce Control List. 
Advisory opinions may not be relied upon or cited as evidence that the 
U.S. Government has determined that the items described in the advisory 
opinion are not subject to the export control jurisdiction of another 
agency of the U.S. Government (See 15 CFR 734.3).
    (d) Classification requests and encryption registration for 
encryption items. A classification request or encryption registration 
associated with 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 information that must be included in the 
encryption registration, which must be submitted in support of certain 
encryption classification requests and self-classification reports. 
Refer to Supplement No. 6 to part 742 of the EAR for a complete list of 
technical information that is required for encryption classification 
requests. Refer toSec. 742.15(c) and Supplement No. 8 to part 742 of 
the EAR for information that is required to be submitted in a self-
classification report. Refer toSec. 742.15(b) of the EAR for 
instructions regarding mass market encryption commodities and software, 
including encryption registration, self-classifications and 
classification requests. Refer toSec. 740.17 of the EAR for the 
provisions of License Exception ENC, including encryption registration, 
self-classifications, classification requests and sales reporting. All 
classification requests, registrations, and reports submitted to BIS 
pursuant to Sec.Sec. 740.17 and 742.15(b) of the EAR for encryption 
items will be reviewed by the ENC Encryption Request Coordinator, Ft. 
Meade, MD.

[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; 70 FR 8249, Feb. 18, 2005; 72 FR 
33659, June 19, 2007; 73 FR 49330, Aug. 21, 2008; 75 FR 36499, June 25, 
2010; 75 FR 45054, Aug. 2, 2010]



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) (seeSec. 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. SeeSec. 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

[[Page 456]]

the applicant is the U.S. agent of the 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 of the 
application. 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'' inSec. 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. Block 7 of the application (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. 
SeeSec. 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. SeeSec. 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 457]]

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. Applicants may request emergency 
processing of license applications by contacting the Outreach and 
Educational Services Division of the Office of Exporter Services by 
telephone on (202) 482-4811 or by facsimile on (202) 482-2927. Refer to 
the Application Control Number when making emergency processing 
requests. BIS will expedite its evaluation, and attempt to expedite the 
evaluations of other government agencies, of a license application when, 
in its sole judgement, the circumstances justify emergency processing. 
Emergency processing is not available for Special Comprehensive License 
applications. SeeSec. 750.7(h) of the EAR for the limit on the 
validity period of emergency licenses.

[61 FR 12812, Mar. 25, 1996, as amended at 65 FR 42569, July 10, 2000; 
70 FR 8249, Feb. 18, 2005; 70 FR 22249, Apr. 29, 2005; 73 FR 49330, Aug. 
21, 2008]



Sec.  748.5  Parties to the transaction.

    The following parties may be entered on the application. 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. SeeSec. 
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 application, 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.
    (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, as amended at 73 FR 49330, Aug. 21, 2008]



Sec.  748.6  General instructions for license applications.

    (a) Instructions. General instructions for filling out license 
applications are in Supp. No. 1 to this part. Special instructions for 
applications involving certain transactions are listed inSec. 748.8 
and described fully in Supp. No. 2 to this part.
    (b) Application Control Number. Each application has an 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

[[Page 458]]

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) Attachments to applications. Documents required to be submitted 
with applications filed via SNAP-R must be submitted as PDF files using 
the procedures described in SNAP-R. Documents required to be submitted 
with paper applications must bear the application control number to 
which they relate and, if applicable, be stapled to the paper form. 
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 inSec. 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 extended validity period. 
To request an extended validity period, include justification for your 
request in Block 24 on the application.

[61 FR 12812, Mar. 25, 1996, as amended at 73 FR 49330, Aug. 21, 2008]



Sec.  748.7  Registering for electronic submission of license
applications and related documents.

    (a) Scope. This section describes the procedures for registering to 
submit electronic documents to BIS. The procedures in this section apply 
to submission of export and reexport license applications (other than 
Special Comprehensive Licenses and Special Iraq Reconstruction 
Licenses), classification requests, encryption registrations, License 
Exception AGR notifications and foreign national review requests under 
License Exceptions APP or CIV.
    (b) Registration and use of BIS's Simplified Network Applications 
System--Redesign (SNAP-R). Parties wishing to submit electronically must 
log on to https://snapr.bis.doc.gov/registration to register. Upon 
initial registration, the party (the filing entity) will have to supply 
the name of the entity that will be submitting documents electronically 
and its address and the name, telephone number, facsimile number and e-
mail address of the person who will act as account administrator. The 
person will be required to certify that the information so supplied is 
correct and complete, that the person has authority to register the 
entity that will be making electronic submissions and that the person 
has authority to act as an account administrator for that entity.
    (c) Role of account administrator. The account administrator is able 
to add and remove individual users to and from the account of the filing 
entity for which it is the account administrator. The account 
administrator can also make individual users account administrators and 
can terminate an individual user's administrator status. The account 
administrator can deactivate the account of an individual user and 
reactivate the account of a previously deactivated individual user. The 
account administrator can update the filing entity's identifying 
information such as name and address and any individual user's 
identifying information such as name, telephone number, facsimile number 
and e-mail address. The account administrator can reset individual 
users' passwords.
    (d) Role of individual users. An individual user may submit to BIS 
export

[[Page 459]]

and reexport license applications (other than Special Comprehensive 
Licenses and Special Iraq Reconstruction Licenses), classification 
requests, encryption registrations, License Exception AGR notifications 
and foreign national review requests under License Exceptions APP or 
CIV.
    (e) Effect of submission to BIS. BIS may refuse to accept an 
electronic submission if it has reason to believe that the individual 
user making the submission lacks authority to do so. However, BIS is not 
obligated to conduct any checks to determine whether an individual user 
has the necessary authority and will generally treat users as acting 
within their authority. Acting through their account administrators, 
parties have the ability to remove an individual user when that 
individual user is no longer authorized to make submissions on behalf of 
that party to BIS and should do so promptly.
    (f) Requirement to keep identifying information accurate and 
current.
    (1) Filing entities. Filing entities must, through their account 
administrators, update their identifying information such as name, 
address and telephone number in their SNAP-R account as necessary to 
keep that information accurate and current.
    (2) Individual users. Individual users must, through their account 
administrators, update their identifying information such as name, 
telephone number, facsimile number and e-mail address in their SNAP-R 
accounts as necessary to keep that information accurate and current.

[76 FR 7105, Feb. 9, 2011]



Sec.  748.8  Unique application and submission 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.
    (r) Encryption classification requests and encryption registrations.
    (s) Foreign National Review Request.
    (t) Foreign National Support Statement for deemed exports.
    (u) Aircraft and vessels on temporary sojourn.
    (v) In-country transfers.

[61 FR 12812, Mar. 25, 1996, as amended at 64 FR 27146, May 18, 1999; 69 
FR 64489, Nov. 5, 2004; 70 FR 8249, Feb. 18, 2005; 70 FR 54629, Sept. 
16, 2005; 75 FR 36500, June 25, 2010]



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

[[Page 460]]

member country, proceed toSec. 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
Leeward Antilles
Mexico
Miquelon and St. Pierre Islands
Nicaragua
Panama
Paraguay
Peru
Surinam
Trinidad and Tobago
Uruguay
Venezuela

    (2) The ultimate consignee or purchaser is a foreign government(s) 
or foreign government agency(ies), other than the government of the 
People's Republic of China. 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.
    (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? Does your transaction involve items destined for the 
People's Republic of China (PRC)?
    (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 toSec. 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.) If 
your item is destined for the PRC, does your transaction involve items 
that require a license to the PRC for any reason?

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
Luxembourg
Netherlands
New Zealand
Norway
Pakistan
Poland
Portugal
Romania
Singapore
Slovakia
Spain

[[Page 461]]


Sweden
Switzerland
Taiwan
Turkey
United Kingdom

    (i) If yes, your transaction may require an Import Certificate or 
End-User Statement. If your transaction involves items destined for the 
PRC that are controlled to the PRC for any reason, your transaction may 
require a PRC End-User Statement. Note that if the destination is the 
PRC, a Statement of Ultimate Consignee and Purchaser may be substituted 
for a PRC End-User Statement when 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.
    (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 toSec. 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 Certificate or End-User Statement 
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 Certificate or End User Statement, you must also 
identify the originating country and number of the Certificate or 
Statement 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 Certificate or End-
User Statement. You may submit your license application upon receipt of 
a facsimile or other legible copy of the Import Certificate or End-User 
Statement, provided that no shipment is made against any license issued 
based upon the Import Certificate or End-User Statement prior to receipt 
and retention of the original statement by the applicant.
    (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

[[Page 462]]

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. 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 inSec. 748.1(d)(2) 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 inSec. 748.2(c). BIS 
will notify you in writing

[[Page 463]]

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 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; 70 FR 72074, Dec. 1, 2005; 72 FR 33659, June 19, 2007; 75 FR 
31681, June 4, 2010; 76 FR 54931, Sept. 6, 2011; 76 FR 70339, Nov. 14, 
2011]



Sec.  748.10  Import Certificates and End-User Statements.

    (a) Scope. There are a variety of Import Certificates and End-User 
Statements currently in use by various governments. The control 
exercised by the government issuing the Import Certificate or End-User 
Statement 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 Certificate or End-User Statement. This section describes 
exceptions and relationships for both Import Certificates and End-User 
Statements, and generally applies only to transactions exceeding 
$50,000. In the case of countries identified inSec. 748.9(b)(2) of 
this part (excluding the People's Republic of China (PRC)), Import 
Certificates are required for national security controlled items in 
transactions exceeding $50,000. In the case of the PRC, End-User 
Statements are required for transactions exceeding $50,000 involving all 
items that require a license to the PRC for any reason. However, this 
$50,000 threshold is lower for certain exports to the PRC (see paragraph 
(b)(3) of this section).
    (b) Import Certificate or End-User Statement. Unless your 
transaction meets one of the exemptions stated inSec. 748.9(a) of this 
part, an Import Certificate or End-User Statement must be obtained, if:
    (1) Any commodities on your license application are controlled for 
national security (NS) reasons (except for items controlled under ECCNs 
5A002 or 5B002), or any commodities to the PRC on your license 
application are controlled for any reason;
    (2) The ultimate destination is a country listed inSec. 
748.9(b)(2) of this part; and
    (3) Your license application involves the export of commodities 
classified in a single entry on the CCL, and your ultimate consignee is 
in any destination listed inSec. 748.9(b)(2), and the total value of 
your transaction exceeds $50,000. Note that the $50,000 transaction 
threshold does not apply to certain exports to the PRC. If your 
transaction involves an export to the PRC of a computer that requires a 
license for any reason, an End-User Statement is required regardless of 
dollar value. Also, if your transaction involves an export to the PRC of 
an item classified under ECCN 6A003 that requires a license for any 
reason, an End-User Statement is required for transactions exceeding 
$5000.
    (i) Your license application may list several separate CCL entries. 
If any individual entry including an item that is controlled for 
national security reasons exceeds $50,000, then an Import Certificate 
must be obtained covering all items controlled for national security 
reasons on your license application. If the total value of entries on a 
license application that require a license to the PRC for any reason 
listed on the CCL exceeds $50,000, then a PRC End-User Statement 
covering all such controlled items that require a license

[[Page 464]]

to the PRC on your license application must be obtained;
    (ii) If your license application involves a lesser transaction that 
is part of a larger order for items controlled for national security 
reasons (or, for the PRC, for any reason) in a single ECCN exceeding 
$50,000, an Import Certificate, or a PRC End-User Statement, as 
appropriate, must be obtained.
    (iii) You may be specifically requested by BIS to obtain an Import 
Certificate for a transaction valued under $50,000. You also may be 
specifically requested by BIS to obtain an End-User Statement for a 
transaction valued under $50,000 or for a transaction that requires a 
license to the PRC for reasons in the EAR other than those listed in the 
CCL.
    (c) How to obtain an Import Certificate or End-User Statement. (1) 
Applicants must request that the importer (e.g., ultimate consignee or 
purchaser) obtain the Import Certificate and that it be issued covering 
only those items that are controlled for national security reasons. 
Exporters should not request that importers obtain Import Certificates 
for items that are controlled for reasons other than national security. 
Note that in the case of the PRC, applicants must request that the 
importer obtain an End-User Statement for all items on a license 
application that require a license to the PRC for any reason listed on 
the CCL. Applicants must obtain original Import Certificate or End-User 
Statements from importers.
    (2) The applicant's name must appear on the Import Certificate or 
End-User Statement 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.
    (3) If your transaction requires the support of a PRC End-User 
Statement, you must ensure that the following information is included on 
the PRC End-User Statement signed by an official of the Department of 
Mechanic, Electronic and High Technology Industries, Export Control 
Division I, of the PRC Ministry of Commerce (MOFCOM), with MOFCOM'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.

    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 Statement. It is also advisable to 
furnish a manufacturer's catalog, brochure, or technical specifications 
if the item is new.

    (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:


[[Page 465]]


    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 Certificates and End-User Statements. 
Certificates and Statements must be retained on file by the applicant in 
accordance with the recordkeeping provisions of part 762 of the EAR, and 
should not be submitted with the license application. For more 
information on what Import Certificate and End-User Statement 
information must be included in license applications, refer toSec. 
748.9(c) of the EAR. In addition, as set forth inSec. 748.12(e), to 
assist in license reviews, BIS will require applicants, on a random 
basis, to submit specific original Import Certificate and End-User 
Statements.
    (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 toSec. 
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; 72 FR 33659, June 19, 
2007; 73 FR 36, Jan. 2, 2008]



Sec.  748.11  Statement by Ultimate Consignee and Purchaser.

    (a) Exceptions to completing a Statement by Ultimate Consignee and 
Purchaser. A Statement by the Ultimate Consignee and/or Purchaser 
involved in a transaction must be completed unless:
    (1) An International Import Certificate, a People's Republic of 
China End-User Certificate, an Indian Import Certificate, or a 
Bulgarian, Czech, Hungarian, Polish, Romanian or Slovak Import 
Certificate is required in support of the license application;
    (2) The applicant is the same person as the ultimate consignee, 
provided the required statements are contained in Block 24 on the 
license application. This exemption does not apply where the applicant 
and consignee are separate entities, such as parent and subsidiary, or 
affiliated or associated firms;
    (3) The application is valued at $5000 or less, and is not part of a 
larger transaction; or
    (4) The transaction meets one of the exemptions stated inSec. 
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

[[Page 466]]

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 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.

[[Page 467]]

    (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:
    (A) To any country not approved for export as brought to our 
attention by the exporter; or
    (B) To any person if there is reason to believe that it will result 
directly or indirectly in disposition of the items contrary to the 
representations made in this statement or contrary to the U.S. Export 
Administration Regulations.
    (iii) We understand that acceptance of this statement as a support 
document cannot be construed as an authorization by 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; 70 FR 8249, Feb. 18, 2005]



Sec.  748.12  Special provisions for support documents.

    (a) Grace periods. Whenever the requirement for an Import 
Certificate or End-User Statement 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:

[[Page 468]]

    (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 Certificate or End-User 
Statement 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 inSec. 748.11 of this part. Likewise, any item 
newly controlled for national security purposes requires support of an 
Import Certificate or End-User Statement as described inSec. 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 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 inSec. 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;

[[Page 469]]

    (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; 72 
FR 33660, June 19, 2007; 72 FR 43531, Aug. 6, 2007]



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 does not apply if the item is no longer 
controlled for national security reasons following the issuance of a 
license.
    (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

[[Page 470]]

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 Office of 
Exporter Services, Export Management and Compliance Division, Room 2705, 
U.S. Department of Commerce, 14th Street and Pennsylvania Avenue, NW., 
Washington, DC 20230.
    (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; 75 
FR 31681, June 4, 2010]



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 bySec. 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 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 part 762 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

[[Page 471]]

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.
    (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

[[Page 472]]

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 toSec. 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, as amended at 70 FR 8250, Feb. 18, 2005]



Sec.  748.15  Authorization Validated End-User (VEU).

    Authorization Validated End-User (VEU) permits the export, reexport, 
and transfer to validated end-users of any eligible items that will be 
used in a specific eligible destination. Validated end-users are those 
who have been approved in advance pursuant to the requirements of this 
section. To be eligible for authorization VEU, exporters, reexporters, 
and potential validated end-users must adhere to the conditions and 
restrictions set forth in paragraphs (a) through (f) of this section. If 
a request for VEU authorization for a particular end-user is not 
granted, no new license requirement is triggered. In addition, such a 
result does not render the end-user ineligible for license approvals 
from BIS.
    (a) Eligible end-users. The only end-users to whom eligible items 
may be exported, reexported, or transferred under VEU are those 
validated end-users identified in Supplement No. 7 to Part 748, 
according to the provisions in this section and those set forth in 
Supplement Nos. 8 and 9 to this part that have been granted VEU status 
by the End-User Review Committee (ERC) according to the process set 
forth in Supplement No. 9 to this part.
    (1) Requests for authorization must be submitted in the form of an 
advisory opinion request, as described inSec. 748.3(c)(2), and should 
include a list of items (items for purposes of authorization VEU include 
commodities, software and technology, except as excluded by paragraph 
(c) of this section), identified by ECCN, that exporters or reexporters 
intend to export, reexport or transfer to an eligible end-user, once 
approved. To ensure a thorough review, requests for VEU authorization 
must include the information described in Supplement No. 8 to this part. 
Requests for authorization will be accepted from exporters, reexporters 
or end-users. Submit the request to: The Office of Exporter Services, 
Bureau of Industry and Security, U.S. Department of Commerce, 14th 
Street and Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230. 
Mark the package ``Request for Authorization Validated End-User.''
    (2) In evaluating an end-user for eligibility under authorization 
VEU, the ERC will consider a range of information, including such 
factors as: the entity's record of exclusive engagement in civil end-use 
activities; the entity's

[[Page 473]]

compliance with U.S. export controls; the need for an on-site review 
prior to approval; the entity's capability of complying with the 
requirements of authorization VEU; the entity's agreement to on-site 
reviews to ensure adherence to the conditions of the VEU authorization 
by representatives of the U.S. Government; and the entity's 
relationships with U.S. and foreign companies. In addition, when 
evaluating the eligibility of an end-user, the ERC will consider the 
status of export controls and the support and adherence to multilateral 
export control regimes of the government of the eligible destination.
    (3) The VEU authorization is subject to revision, suspension or 
revocation entirely or in part.
    (4) Information submitted in a VEU request is deemed to constitute 
continuing representations of existing facts or circumstances. Any 
material or substantive change relating to the authorization must be 
promptly reported to BIS, whether VEU authorization has been granted or 
is still under consideration.
    (b) Eligible destinations. Authorization VEU may be used for the 
following destinations:
    (1) The People's Republic of China.
    (2) India.
    (c) Item restrictions. Items controlled under the EAR for missile 
technology (MT) and crime control (CC) reasons may not be exported or 
reexported under this authorization.
    (d) End-use restrictions. Items obtained under authorization VEU may 
be used only for civil end-uses and may not be used for any activities 
described in part 744 of the EAR. Exports, reexports, or transfers made 
under authorization VEU may only be made to an end-user listed in 
Supplement No. 7 to this part if the items will be consigned to and for 
use by the validated end-user. Eligible end-users who obtain items under 
VEU may only:
    (1) Use such items at the end-user's own facility located in an 
eligible destination or at a facility located in an eligible destination 
over which the end-user demonstrates effective control;
    (2) Consume such items during use; or
    (3) Transfer or reexport such items only as authorized by BIS.

    Note to paragraph (d): Authorizations set forth in Supplement No. 7 
to this part are country-specific. Authorization as a validated end-user 
for one country specified in paragraph (b) of this section does not 
constitute authorization as a validated end-user for any other country 
specified in that paragraph.

    (e) Certification and recordkeeping. Prior to an initial export or 
reexport to a validated end-user under authorization VEU, exporters or 
reexporters must obtain certifications from the validated end-user 
regarding end-use and compliance with VEU requirements. Such 
certifications must include the contents set forth in Supplement No. 8 
to this part. Certifications and all records relating to VEU must be 
retained by exporters or reexporters in accordance with the 
recordkeeping requirements set forth in part 762 of the EAR.
    (f) Reporting and review requirements--(1)(i) Reports. Reexporters 
who make use of authorization VEU are required to submit annual reports 
to BIS. These reports must include, for each validated end-user to whom 
the exporter or reexporter exported or reexported eligible items:
    (A) The name and address of each validated end-user to whom eligible 
items were reexported;
    (B) The eligible destination to which the items were reexported;
    (C) The quantity of such items;
    (D) The value of such items; and
    (E) The ECCN(s) of such items.
    (ii) Reports are due by February 15 of each year, and must cover the 
period of January 1 through December 31 of the prior year. Reports must 
be sent to: Office of Exporter Services, Bureau of Industry and 
Security, U.S. Department of Commerce, 14th Street and Constitution 
Avenue, NW., Room 2705, Washington, DC 20230. Mark the package 
``Authorization Validated End-User Reports''.
    (2) Reviews. Records related to activities covered by authorization 
VEU that are maintained by exporters, reexporters, and validated end-
users who make use of authorization VEU will be reviewed on a periodic 
basis. Upon request by BIS, exporters, reexporters,

[[Page 474]]

and validated end-users must allow review of records, including on-site 
reviews covering the information set forth in paragraphs (e) and (f)(1) 
of this section.

[72 FR 33660, June 19, 2007, as amended at 72 FR 56011, Oct. 2, 2007; 73 
FR 37, Jan. 2, 2008]

    Effective Date Note: At 77 FR 75013, Dec. 19, 2012,Sec. 748.15 was 
amended by adding paragraphs (g), (h) and (i), effective Jan. 18, 2013. 
For the convenience of the user, the added text is set forth as follows:



Sec.  748.15  Authorization Validated End-User (VEU).

                                * * * * *

    (g) Notification requirement. Exporters and reexporters shipping 
under Authorization VEU and persons transferring (in-country) under 
Authorization VEU are required to provide the VEUs to which they are 
shipping or transferring notice of the shipment or transfer. Such 
notification must be conveyed to the VEU in writing and must include a 
list of the VEU-authorized contents of the shipment or transfer and a 
list of the ECCNs under which the VEU-authorized items in the shipment 
or transfer are classified, as well as a statement that the items are 
being, will be, or were shipped or transferred pursuant to Authorization 
VEU. Notification of the export, reexport or transfer (in-country) to 
the VEU must be made within a timeframe agreed to in writing by the VEU 
and the person exporting, reexporting or transferring (in-country). The 
VEU and the person exporting, reexporting or transferring (in-country) 
must agree to the notification timeframe prior to the initial shipment 
or transfer under Authorization VEU. Depending on the agreement between 
the VEU and the person exporting, reeexporting or transferring (in-
country), a notification may be for individual shipments or for multiple 
shipments. Exporters, reexporters and VEUs are required to maintain the 
notifications they send or receive in accordance with their 
recordkeeping requirements.
    (h) Termination of Conditions on VEU Authorizations. VEUs that are 
subject to item-specific conditions and have received items subject to 
such conditions under Authorization VEU are no longer bound by the 
conditions associated with the items if the items no longer require a 
license for export or reexport to the PRC or India, as applicable, or 
become eligible for shipment under a license exception to the 
destination. Items that become eligible for a License Exception are 
subject to the terms and conditions of the applicable License Exception 
and the restrictions inSec. 740.2 of the EAR. Items that become 
eligible for export without a license and that remain subject to the EAR 
may only be exported, reexported, transferred (in-country) or disposed 
of in accordance with the requirements of the EAR. Termination of VEU 
conditions does not relieve a validated end-user of its responsibility 
for violations that occurred prior to the availability of a license 
exception or prior to the removal of license requirements.
    (i) Records. Records of items that were shipped under Authorization 
VEU prior to the removal of a license requirement or the availability of 
a license exception remain subject to the review requirements of 
paragraph (f)(2) of this section on and after the date that the license 
requirement was removed or the license exception became applicable.



Sec. 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 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 Registration. If you 
are requesting encryption registration under License Exception ENC 
(Sec.  740.17 of the EAR) or ``mass market'' encryption provisions 
(Sec.  742.15(b) of the EAR), mark the Box labeled

[[Page 475]]

``Encryption Registration'' 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.
    If you are not making a foreign availability assertion under part 
768 of the EAR, you may still mark the box ``Foreign Availability'' with 
an (X), if you are submitting an assertion of foreign availability with 
your license application. Foreign availability assertions covered under 
part 768 are limited to items controlled for national security reasons. 
However, if an applicant intends to include foreign availability support 
material for items not controlled for national security reasons, 
applicants are permitted to do this as part of the license application 
by marking the box ``Foreign Availability'' with an (X) and including 
the foreign availability information, along with the support material 
for the license application. Applicants must clearly label this support 
material as ``Foreign availability information--outside the scope of 
part 768''. Although this information is outside the scope of part 768, 
applicants should still use Supplement No. 1 to part 768 for general 
guidance regarding what types of information may be suitable for 
demonstrating foreign availability. The purpose of submitting this type 
of foreign availability information will be to make the U.S. Government 
more aware of the foreign availability of items not controlled for 
national security reasons.
    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 inSec. 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 toSec. 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 toSec. 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,

[[Page 476]]

street address, city, country, postal code, and telephone or facsimile 
number. Provide a complete street address, P.O. Boxes are not 
acceptable. Refer toSec. 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, 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 toSec. 
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 enter the ``Adjusted Peak Performance'' (``APP'') 
in this Block if your application includes a digital computer or 
equipment containing a computer as described in Supplement No. 2 to this 
part. Instructions on calculating the APP 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.

[[Page 477]]

    (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 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; 71 FR 20886, Apr. 24, 2006; 73 FR 21036, Apr. 
18, 2008; 75 FR 36500, June 25, 2010]



  Sec. Supplement No. 2 to Part 748--Unique Application and Submission 
                              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 underSec. 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) Computers, telecommunications, information security items, and 
related equipment. If your license application includes items controlled 
by both Category 4 and Category 5, your license application must be 
submitted under Category 5 of the Commerce Control List (Sec.  774.1 of 
the EAR)--see Category 5 Part 1 Notes 1 and 2 and Part 2 Note 1. License 
applications including computers controlled by Category 4 must identify 
an ``Adjusted Peak Performance'' (``APP'') in Block 22(b). If the 
principal function is telecommunications, an APP 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 Part 1, 
while information security commodities, software and technology will be 
evaluated against the information security performance characteristics 
of Category 5 Part 2.

[[Page 478]]

    (1) Requirements for license applications that include computers. If 
you are submitting a license application to export or reexport computers 
or equipment containing computers to destinations in Country Group D:1 
(See Supplement No. 1 to part 740 of the EAR), or to upgrade existing 
computer installations in those countries, you must also include 
technical specifications and product brochures to corroborate the data 
supplied in your license application, in addition to the APP in Block 
22(b).
    (2) Security Safeguard Plan requirement. The United States requires 
security safeguards for exports, reexports, and transfers (in-country) 
of High Performance Computers (HPCs) to ensure that they are used for 
peaceful purposes. If you are submitting a license application for an 
export, reexport, or in-country transfer of a high performance computer 
to or within a destination in Computer Tier 3 (seeSec. 740.7(c)(1) of 
the EAR) or to Cuba, Iran, North Korea, Sudan, or Syria you must include 
with your license application a security safeguard plan signed by the 
end-user, who may also be the ultimate consignee. This requirement also 
applies to exports, reexports, and transfers (in-country) of components 
or electronic assemblies to upgrade existing ``computer'' installations 
in those countries. A sample security safeguard plan is posted on BIS's 
Web page at http://www.bis.doc.gov/hpcs/SecuritySafeguardPlans.html.
    (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 (seeSec. 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 (seeSec. 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 bySec. 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 Eight stated inSec. 
736.2(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 inSec. 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 inSec. 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 inSec. 744.2(a)(3) of 
the EAR; and

[[Page 479]]

    (v) In Block 24, if your license application is being submitted 
because you know that your transaction involves a nuclear end-use 
described inSec. 744.2 of the EAR, you must fully explain the basis 
for your knowledge that the items are intended for the purpose(s) 
describedSec. 744.2 of the EAR. Indicate, if possible, the specific 
end-use(s) the items will have in designing, developing, fabricating, or 
testing nuclear weapons or nuclear explosive devices or in designing, 
constructing, fabricating, or operating the facilities described in 
Sec.  744.2(a)(3) of the EAR.
    (h) Numerical control devices, motion control boards, numerically 
controlled machine tools, dimensional inspection machines, direct 
numerical control systems, specially designed assemblies and specially 
designed software. (1) If you are submitting a license application to 
export, reexport, or request 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 inSec. 732.4(b) of the EAR and 
to General Prohibition Two stated inSec. 736.2(b)(2) of the EAR. Such 
requests will not be approved for countries listed in Country Group E:2 
(See Supplement No. 1 to part 740 of the EAR), and may be approved only 
in limited circumstances for countries listed in Country Group D:1.
    (1) License applications for the export of parts and components. If 
you are submitting a license application for the export of parts, 
components, or materials to be incorporated abroad into products that 
will then be sent to designated third countries, you must enter in Block 
21, a description of end-use including a general description of the 
commodities to be manufactured, their typical end-use, and the countries 
where those commodities will be marketed. The countries may be listed 
specifically or may be identified by Country Groups, geographic areas, 
etc.
    (2) License applications for the reexport of incorporated parts and 
components. If you are submitting a license application for the reexport 
of parts, components, or materials incorporated abroad into products 
that will be sent to designated third countries you must include the 
following information in your license application:
    (i) In Block 9, enter the phrase ``Parts and Components'';
    (ii) In Block 18, enter the name, street address, city and country 
of the foreign party

[[Page 480]]

who will be receiving the foreign-made product. If you are requesting 
approval for multiple countries or consignees enter ``Various'' in Block 
18, and list the specific countries, Country Groups, or geographic areas 
in Block 24;
    (iii) In Block 20, enter the name, street address, city, and country 
of the foreign party who will be exporting the foreign-made product 
incorporating U.S. origin parts, components or materials;
    (iv) In Block 21, describe the activity of the ultimate consignee 
identified in Block 18 and the end-use of the foreign-made product. 
Indicate the final configuration if the product is intended to be 
incorporated in a larger system. If the end-use is unknown, state 
``unknown'' and describe the general activities of the end-user;
    (v) In Block 22(e), specify the quantity for each foreign-made 
product. If this information is unknown, enter ``Unknown'' in Block 
22(e);
    (vi) In Block 22(h), enter the digit ``0'' for each foreign-made 
product;
    (vii) In Block 22(j), describe the foreign-made product that will be 
exported, specifying type and model or part number. Attach brochures or 
specifications, if available. Show as part of the description the unit 
value, in U.S. dollars, of the foreign-made product (if more than one 
foreign-made product is listed on the license application, specify the 
unit value for each type/model/part number). Also include a description 
of the U.S. content (including the applicable Export Control 
Classification Number(s)) and its value in U.S. dollars. If more than 
one foreign-made product is identified on the license application, 
describe the U.S. content and specify the U.S. content value for each 
foreign-made product. Also, provide sufficient supporting information to 
explain the basis for the stated values. To the extent possible, explain 
how much of the value of the foreign-made product represents foreign 
origin parts, components, or materials, as opposed to labor, overhead, 
etc. When the U.S. content varies and cannot be specified in advance, 
provide a range of percentage and value that would indicate the minimum 
and maximum U.S. content;
    (viii) Include separately in Block 22(j) a description of any U.S. 
origin spare parts to be reexported with the foreign-made product, if 
they exceed the amount allowed bySec. 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:1 (see Supplement No. 1 to part 
740 of the EAR) describe in Block 24 the type of technology and how it 
will be used.
    (j) Ship stores, plane stores, supplies, and equipment--(1) Vessels 
under construction. If you are submitting a license application for the 
export or reexport of items, including ship stores, supplies, and 
equipment, to a vessel under construction you must include the following 
information in your license application:
    (i) In Block 18, enter the name, street address, city, and country 
of the shipyard where vessel is being constructed;
    (ii) In Block 22(j), state the length of the vessel for a vessel 
under 12 m (40 ft) in length. For a vessel 12 m (40 ft) in length or 
over, provide the following information (if this information is unknown, 
enter ``Unknown'' in this Block):
    (A) Hull number and name of vessel;
    (B) Type of vessel;
    (C) Name and business address of prospective owner, and the 
prospective owner's nationality; and
    (D) Country of registry or intended country of registry.
    (2) Aircraft under construction. If you are submitting a license 
application for the export or reexport of items, including plane stores, 
supplies, and equipment, to an aircraft under construction you must 
include the following information in your license application:
    (i) In Block 18, enter the name and address of the plant where the 
aircraft is being constructed;
    (ii) In Block 22(j), enter the following information (if this 
information is unknown, enter ``Unknown'' in this Block):
    (A) Type of aircraft and model number;
    (B) Name and business address of prospective owner and his 
nationality; and
    (C) Country of registry or intended country of registry.
    (3) Operating vessels and aircraft. If you are submitting a license 
application for the export or reexport of items, including ship or plane 
stores, supplies, and equipment to an operating vessel or aircraft, 
whether in operation or being repaired, you must include the following 
information in your license application:
    (i) In Block 18, enter the name of the owner, the name of the 
vessel, if applicable, and port or point where the items will be taken 
aboard;
    (ii) In Block 18, enter the following statement if, at the time of 
filing the license application, it is uncertain where the vessel or 
aircraft will take on the items, but it is known that the items will not 
be shipped to a country listed in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of the EAR):

[[Page 481]]

    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. (1) If you are submitting a 
license application for the export or reexport of items controlled for 
regional stability reasons and subject to licensing under RS Column 1 on 
the Country Chart, your license application must be accompanied by full 
technical specifications.
    (2) If you are submitting a license application for the export or 
reexport to Austria, Cyprus, Finland, Ireland, Israel, Malta, Mexico, 
Singapore or Sweden of items controlled by ECCNs 2A984, 2D984 or 2E984 
to a person designated by a government end-user, pursuant to contract, 
your license application to export to such designated person must 
include a statement from the government end-user to be eligible for the 
licensing policy underSec. 742.6(b)(2)(ii). A responsible official 
representing the designated end-user 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 
designated end-user for whom they sign, and who has the power and 
authority to control the use and disposition of the licensed items. 
Statements from government end-users that the person is so designated 
(i.e., support documents submitted in accordance with this paragraph 
(k)(2)) must address the following three criteria for a license 
application to be reviewed in accordance with the license review policy 
inSec. 742.6(b)(2)(ii):
    (i) U.S. Department of Homeland Security (DHS) Customer Contract 
Number or agreement reference number, End-user name (company), complete 
address (including street address, city, state, country and postal 
code), end-user point of contact (POC);
    (ii) Brief contract description, including DHS Project information 
and projected outcome; and
    (iii) The statement shall include a certification stating ``We 
certify that all of the representations in this statement are true and 
correct to the best of our knowledge and we do not know of any 
additional representations which are inconsistent with the above 
statement.''
    (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;

[[Page 482]]

    (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:1 (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:1 (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 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 (seeSec. 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 to non-States Parties 
(destinations not listed in Supplement No. 2 to part 745 of the EAR). 
SeeSec. 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 registrations and classification requests. Failure to 
follow the instructions in this paragraph may delay consideration of 
your encryption classification request or encryption registration.
    (1) Encryption registration. Fill out blocks 1-4, 14, 15, 24, and 25 
pursuant to the instructions in Supplement No. 1 to this Part. Leave 
blocks 6, 7, 8, 9-13, and 16-23 blank. In Block 5 (Type of Application), 
place an ``X''

[[Page 483]]

in the box marked ``Encryption Registration''.
    (2) Classification Requests. Fill out blocks 1-4, 14, 15, 22, and 25 
pursuant to the instructions in Supplement No. 1 to this Part. Leave 
blocks 6, 7, 8, 10-13, 18-21, and 23 blank. Follow the directions 
specified for the blocks indicated below.
    (i) In Block 5 (Type of Application), place an ``X'' in the box 
marked ``classification'' or ``commodity classification'' if submitting 
electronically for classification requests.
    (ii) In Block 9 (Special Purpose).
    (A) If submitting via SNAP-R, check the box ``check here if you are 
submitting information about encryption required by 740.17 or 742.15 of 
the EAR.''
    (B) From the drop down menu in SNAP-R, choose:
    (1) ``License Exception ENC'' if you are submitting an encryption 
classification request for specified License Exception ENC provisions 
(Sec.Sec. 740.17(b)(2) or (b)(3) of the EAR);
    (2) ``Mass Market Encryption'' if you are submitting an encryption 
classification request for certain mass market encryption items (Sec.  
742.15(b)(3) of the EAR).
    (3) ``Encryption--other'' if you are submitting an encryption 
classification, for another reason.
    (iii) In Block 24 (Additional Information), insert your most recent 
Encryption Registration Number (ERN).
    (s) Foreign National Review Request--(1) BIS-748P ``Multipurpose 
Application'' form. If you are submitting a Foreign National Review 
(FNR) request for the deemed export of technology or source code, you 
must include the following information on the BIS-748P ``Multipurpose 
Application'' form:
    (i) In Block 1 through 3, insert name, telephone, and facsimile of 
the person that is most knowledgeable about the foreign national;
    (ii) In Block 4 (Date of Application), enter the date;
    (iii) In Block 5 (Type of Application), place an ``X'' in the box 
marked ``Other'';
    (iv) In Block 6 (Documents Submitted with Application), place an 
``X'' in ``Other'' to signify that you are submitting the Foreign 
National Review Support Statement(s) with the BIS-748P, and place an 
``X'' in ``BIS-748P-B'' if you are submitting this FNR for multiple 
foreign nationals;
    (v) In Block 9 (Special Purpose), insert the phrase ``Foreign 
National Review (FNR)'';
    (vi) In Block 14 (Applicant), insert the name of the applicant;
    (vii) In Block 18 (Ultimate Consignee), insert the name and address 
of the Foreign National;
    (viii) In Block 21 (Specific End-Use), insert any information which 
may be of interest regarding the export of the technology or source 
code;
    (ix) In Block 24 (Additional Information), insert contact email 
information;
    (x) In Block 25 (Signature), sign the BIS-748P, and insert the name 
and title of the signer; and
    (xi) All other Blocks on the application may be left blank.
    (2) Multiple Foreign Nationals. If you are submitting a Foreign 
National Review Request for more than one individual, you may add other 
foreign nationals by completing and attaching form BIS-748P-B ``End-User 
Appendix.''
    (t) Foreign National Review Support Statement. To request review of 
your FNR, you must submit to BIS a FNR support statement as set forth 
below on company letterhead, along with Form BIS-748P (Multipurpose 
Application), or its electronic equivalent. For FNRs that include 
multiple foreign nationals, an FNR support statement must be submitted 
for each foreign national.
    (1) Case number (Z number): Zxxxxxx;
    (2) Name, and all other names ever used;
    (3) Date of birth: dd/mm/yyyy;
    (4) Place of birth: city, state/province, and country;
    (5) U.S. Address: street address, city, state, zip;
    (6) Overseas Address: street address, city, province, country;
    (7) Visa type (with expiration date and place issued, if available): 
type, dd/mm/yyyy, city, country;
    (8) I-94 No. xxxxxxx, dd/mm/yyyy;
    (9) Passport and Country of Issue: xxxxxxxx, country;
    (10) U.S. Education (schools, degrees, and dates received) (if any): 
degree, subject, university, city, state, country, month/year-month/
year;
    (11) Foreign Education: degree, subject, university, city, state, 
country, month/year-month/year;
    (12) Employer (applicant) and address: company, street address, 
city, state, zip;
    (13) Detailed explanation of position requirements and individual's 
qualifications related to the position; and
    (14) Prior Employment Record, (including overseas employment) 
addresses and dates; explain any periods of unemployment.
    (u) Aircraft and vessels on temporary sojourn. If the application is 
for an aircraft or a vessel traveling on a temporary sojourn, state the 
value of the aircraft or vessel as $0 in box 22(g) (unit price) and 
22(h) (total price). In box 23 (Total Application Dollar Value), insert 
the total value of items other than the aircraft or vessel that are 
included in the same application. If the application is only for the 
aircraft or vessel on temporary sojourn, insert $0.
    (v) In-country transfers. To request an in-country transfer, you 
must specify ``in-country transfer'' in Block 9 (Special Purpose) and 
mark ``Reexport'' in Block 5 (Type of

[[Page 484]]

Application) of the BIS-748P ``Multipurpose Application'' form. The 
application also must specify the same foreign country for both the 
original ultimate consignee and the new ultimate consignee.

[61 FR 12812, Mar. 25, 1996]

    Editorial Note: For Federal Register citations affecting supplement 
no. 2 to part 748, see the List of CFR Sections Affected, which appears 
in the Finding Aids section of the printed volume and at www.fdsys.gov.



   Sec. 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.)
    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, seeSec. 
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-User Statement 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.......  Ministry of Commerce; Department of Mechanic,            PRC, End-User
                                     Electronic and High Technology Industries; Export        Statement
                                     Control Division I; Chang An Jie No. 2; Beijing 100731
                                     China; Phone: (86)(10) 6519 7366 or 6519 7390; Fax:
                                     (86)(10) 6519 7543; http://cys.mofcom.gov.cn/ag/
                                     ag.html
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

[[Page 485]]

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


[[Page 486]]


[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25463, May 9, 1997; 64 
FR 47105, Aug. 30, 1999; 72 FR 33661, June 19, 2007; 73 FR 37, Jan. 2, 
2008; 76 FR 70339, Nov. 14, 2011]



Sec. 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 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, Directorate 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 courier to the Bureau of Industry and Security, Room 2705, 
14th Street and Pennsylvania Ave., NW., Washington, DC 20230, 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

[[Page 487]]


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 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

[[Page 488]]

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.
    (C) The responsibility of the certificate holder for obtaining a DV 
also applies to those cases where the items are resold to a U.S. 
purchaser (See paragraph (b)(1) of this supplement.
    (vii) Reexport or transshipment of items after delivery to U.S. 
Items imported into the U.S. under the provisions of a U.S. 
International Import Certificate may not be reexported to any 
destination under the intransit provisions of License Exception TMP (see 
Sec.  740.9(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

[[Page 489]]

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.
    (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 toSec. 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; 73 FR 37, Jan. 2, 2008]



     Sec. 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]

[[Page 490]]

 Supplement No. 7 to Part 748--Authorization Validated End-User (VEU): 
   List of Validated End-Users, Respective Items Eligible for Export, 
            Reexport and Transfer, and Eligible Destinations

----------------------------------------------------------------------------------------------------------------
                                                       Eligible items (by       Eligible        Federal Register
            Country               Validated end-user         ECCN)             destination          citation
----------------------------------------------------------------------------------------------------------------
China (People's Republic of)...  Advanced Micro       3D002, 3D003, 3E001  AMD Technologies    75 FR 25763, 5/10/
                                  Devices China, Inc.  (limited to          (China) Co.,        10. 76 FR 2802,
                                                       ``technology'' for   Ltd., No. 88, Su   1/18/11.
                                                       items classified     Tong Road,
                                                       under 3C002 and      Suzhou, China
                                                       3C004 and            215021.
                                                       ``technology'' for  Advanced Micro
                                                       use during the       Devices
                                                       International        (Shanghai) Co.,
                                                       Technology Roadmap   Ltd., Buildings
                                                       for Semiconductors   46, 47, 48 & 49,
                                                       (ITRS) process for   River Front
                                                       items classified     Harbor,
                                                       under ECCNs 3B001    Zhangjiang Hi-
                                                       and 3B002), 3E002    Tech Park, 1387
                                                       (limited to          Zhangdong Rd.,
                                                       ``technology'' for   Pudong, Shanghai,
                                                       use during the       201203.
                                                       ITRS process for    AMD Technology
                                                       items classified     Development
                                                       under ECCNs 3B001    (Beijing) Co.,
                                                       and 3B002),          Ltd., 18F, North
                                                       3E003.e (limited     Building, Raycom
                                                       to the               Infotech, Park
                                                       ``development''      Tower C, No. 2
                                                       and ``production''   Science Institute
                                                       of integrated        South Rd., Zhong
                                                       circuits for         Guan Cun, Haidian
                                                       commercial           District,
                                                       applications),       Beijing, China
                                                       4D001, 4D002,        100190.
                                                       4D003 and 4E001
                                                       (limited to the
                                                       ``development'' of
                                                       products under
                                                       ECCN 4A003).
                                 Applied Materials    2B006.b, 2B230,      Applied Materials   72 FR 59164, 10/
                                  (China), Inc.        2B350.g.3,           South East Asia     19/07.
                                                       2B350.i, 3B001.a,    Pte. Ltd.--        74 FR 19382, 4/29/
                                                       3B001.b, 3B001.c,    Shanghai Depot, c/  09.
                                                       3B001.e, 3B001.f,    o Shanghai         75 FR 27185, 5/14/
                                                       3C001, 3C002,        Applied             10.
                                                       3D002 (limited to    Materials,         77 FR 10955, 2/24/
                                                       ``software''         Technical Service   12.
                                                       specially designed   Center, No. 2667
                                                       for the ``use'' of   Zuchongzhi Road,
                                                       stored program       Shanghai, China
                                                       controlled items     201203.
                                                       classified under    Applied Materials
                                                       ECCN 3B001).         South East Asia
                                                                            Pte. Ltd.--
                                                                            Beijing Depot, c/
                                                                            o Beijing Applied
                                                                            Materials,
                                                                            Technical Service
                                                                            Center, No. 1
                                                                            North Di Sheng
                                                                            Street, BDA,
                                                                            Beijing, China
                                                                            100176.
                                                                           Applied Materials
                                                                            South East Asia
                                                                            Pte. Ltd.--Wuxi
                                                                            Depot, c/o
                                                                            Sinotrans Jiangsu
                                                                            Fuchang,
                                                                            Logistics Co.,
                                                                            Ltd., 1 Xi Qin
                                                                            Road, Wuxi Export
                                                                            Processing Zone,
                                                                            Wuxi, Jiangsu,
                                                                            China 214028.
                                                                           Applied Materials
                                                                            South East Asia
                                                                            Pte. Ltd.--Wuhan
                                                                            Depot, c/o Wuhan
                                                                            Optics Valley
                                                                            Import & Export
                                                                            Co., Ltd., No.
                                                                            101 Guanggu Road,
                                                                            East Lake High-
                                                                            Tec Development
                                                                            Zone, Wuhan,
                                                                            Hubei, China
                                                                            430074.
                                                                           Applied Materials
                                                                            (China), Inc.--
                                                                            Shanghai Depot,
                                                                            No. 2667,
                                                                            Zuchongzhi Road,
                                                                            Shanghai, China
                                                                            201203.

[[Page 491]]

 
                                                                           Applied Materials
                                                                            (China), Inc.--
                                                                            Beijing Depot,
                                                                            No. 1 North Di
                                                                            Sheng Street,
                                                                            BDA, Beijing,
                                                                            China 100176.
                                                      2B006.b, 2B230,      Applied Materials
                                                       2B350.g.3,           (Xi'an) Ltd., No.
                                                       2B350.i, 3B001.a,    28 Xin Xi Ave.,
                                                       3B001.b, 3B001.c,    Xi'an High Tech
                                                       3B001.e, 3B001.f,    Park Export
                                                       3C001, 3C002,        Processing Zone,
                                                       3D002 (limited to    Xi'an, Shaanxi,
                                                       ``software''         China 710075.
                                                       specially designed
                                                       for the ``use'' of
                                                       stored program
                                                       controlled items
                                                       classified under
                                                       ECCN 3B001), and
                                                       3E001 (limited to
                                                       ``technology''
                                                       according to the
                                                       General Technology
                                                       Note for the
                                                       ``development'' or
                                                       ``production'' of
                                                       items controlled
                                                       by ECCN 3B001).
                                 Boeing Tianjin       1B001.f, 1D001       Boeing Tianjin      72 FR 59164, 10/
                                  Composites Co. Ltd.  (limited to          Composites Co.      19/07.
                                                       ``software''         Ltd., No. 4-388    74 FR 19381, 4/29/
                                                       specially designed   Hebei Road,         09.
                                                       or modified for      Tanggu Tianjin,    77 FR 10953, 2/24/
                                                       the ``use'' of       China.              12.
                                                       equipment                               77 FR 40260, 7/9/
                                                       controlled by                            12.
                                                       1B001.f),
                                                       2B001.b.2 (limited
                                                       to machine tools
                                                       with accuracies no
                                                       better than (i.e.,
                                                       not less than) 13
                                                       microns), 2D001
                                                       (limited to
                                                       ``software,''
                                                       other than that
                                                       controlled by
                                                       2D002, specially
                                                       designed or
                                                       modified for the
                                                       ``use'' of
                                                       equipment
                                                       controlled by
                                                       2B001.b.2), and
                                                       2D002 (limited to
                                                       ``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''
                                                       controlled by
                                                       2B001.b.2).
                                 CSMC Technologies    1C350.c.3,           CSMC Technologies   76 FR 2802, 1/18/
                                  Corporation.         1C350.c.11,          Fab 1 Co., Ltd.,    11.
                                                       2B230.a, 2B230.b,    14 Liangxi Road,   76 FR 37634, 6/28/
                                                       2B350.f, 2B350.g,    Wuxi, Jiangsu       11.
                                                       2B350.h,             214061, China.     77 FR 10955, 2/24/
                                                       3B001.c.1.a,        CSMC Technologies    12.
                                                       3B001.c.2.a,         Fab 2 Co., Ltd.,
                                                       3B001.e, 3B001.h     8 Xinzhou Rd.,
                                                       (except for          Wuxi National New
                                                       multilayer masks     Hi-Tech
                                                       with a phase shift   Industrial
                                                       layer designed to    Development Zone,
                                                       produce ``space      Wuxi, Jiangsu
                                                       qualified''          214061, China.
                                                       semiconductor
                                                       devices), 3C002.a,
                                                       and 3C004.
                                 ...................  ...................  Wuxi CR
                                                                            Semiconductor
                                                                            Wafers and Chips
                                                                            Co., Ltd., 14
                                                                            Liangxi Road,
                                                                            Wuxi, Jiangsu
                                                                            214061, China.

[[Page 492]]

 
                                 Grace Semiconductor  1C350.c.3,           1399 Zuchongzhi     75 FR 2435, 1/15/
                                  Manufacturing        1C350.d.7, 2B230,    Road Zhangjiang     10.
                                  Corporation.         2B350.d.2,           Hi-Tech Park
                                                       2B350.g.3,           Shanghai, PR
                                                       2B350.i.4,           China 201203.
                                                       3B001.a.1,
                                                       3B001.b, 3B001.c,
                                                       3B001.e, 3B001.f,
                                                       3B001.h, 3C002,
                                                       3C004, 5B002, and
                                                       5E002 (limited to
                                                       production
                                                       technology for
                                                       integrated
                                                       circuits
                                                       controlled by
                                                       ECCNs 5A002 or
                                                       5A992 that have
                                                       been successfully
                                                       reviewed under the
                                                       encryption review
                                                       process specified
                                                       in sections
                                                       740.17(b)(2) or
                                                       740.17(b)(3) and
                                                       742.15 of the EAR;
                                                       Note also the
                                                       guidance on
                                                       cryptographic
                                                       interfaces (OCI)
                                                       in section
                                                       740.17(b) of the
                                                       EAR).
                                 Lam Research         2B230, 2B350.c,      Lam Research        75 FR 62462, 10/
                                  Corporation.         2B350.d, 2B350.g,    (Shanghai)          12/10.
                                                       2B350.h, 2B350.i,    Service Co., 1st   77 FR 10955, 2/24/
                                                       3B001.c and          Floor, Area C,      12.
                                                       3B001.e (items       Hua Hong Science
                                                       classified under     & Technology
                                                       ECCNs 3B001.c and    Park, 177 Bi Bo
                                                       3B001.e are          Road, Zhangjiang
                                                       limited to parts     Hi-Tech Park,
                                                       and components),     Pudong, Shanghai,
                                                       3D001 and 3D002      China 201203.
                                                       (items classified   Lam Research
                                                       under ECCNs 3D001    Shanghai Co.,
                                                       and 3D002 are        Ltd., No. 1
                                                       limited to           Jilong Rd., Room
                                                       ``software''         424-2, Waigaoqiao
                                                       specially designed   Free Trade Zone,
                                                       for the ``use'' of   Shanghai, China
                                                       stored program       200131.
                                                       controlled items    Lam Research
                                                       classified under     International
                                                       ECCN 3B001), and     Sarl (Lam
                                                       3E001 (limited to    Shanghai
                                                       ``technology''       Warehouse), c/o
                                                       according to the     HMG Supply Chain
                                                       General Technology   (Shanghai) Co.,
                                                       Note for the         Ltd., No. 3869,
                                                       ``development'' of   Longdong Avenue,
                                                       equipment            Pudong New
                                                       controlled by ECCN   District,
                                                       3B001).              Shanghai, China
                                                                            201203.
                                                                           Lam Research
                                                                            International
                                                                            Sarl (Lam
                                                                            Shanghai
                                                                            Warehouse; WGQ
                                                                            Bonded
                                                                            Warehouse), c/o
                                                                            HMG Supply Chain
                                                                            (Shanghai) Co.,
                                                                            Ltd., No. 55, Fei
                                                                            la Road,
                                                                            Waigaoqiao Free
                                                                            Trade Zone,
                                                                            Pudong New Area,
                                                                            Shanghai, China
                                                                            200131.
                                                                           Lam Research
                                                                            Service Co., Ltd.
                                                                            (Beijing Branch),
                                                                            Rm 1010, Zhaolin
                                                                            Building No. 15,
                                                                            Rong Hua Zhong
                                                                            Road, BDA,
                                                                            Beijing, China
                                                                            100176.
                                                                           Lam Research
                                                                            International
                                                                            Sarl (Lam Beijing
                                                                            Warehouse),
                                                                            Beijing Lam
                                                                            Electronics Tech
                                                                            Center, No. 8
                                                                            Building, No. 1,
                                                                            Disheng North
                                                                            Street, BDA,
                                                                            Beijing, China
                                                                            100176.

[[Page 493]]

 
                                                                           Lam Research
                                                                            Service Co.,
                                                                            Ltd., Wuxi
                                                                            Representative
                                                                            Office, Singapore
                                                                            International
                                                                            Park, 6 302, No. 89
                                                                            Xing Chuang, 4
                                                                            Road, New
                                                                            District, Wuxi,
                                                                            Jiangsu, China
                                                                            214028.
                                                                           Lam Research
                                                                            International
                                                                            Sarl (Wuxi EPZ
                                                                            Bonded
                                                                            Warehouse), c/o
                                                                            HMG WHL Logistic
                                                                            (Wuxi) Co., Ltd.,
                                                                            F1, Area 4, No.
                                                                            1, Plot J3 No. 5,
                                                                            Gaolang East
                                                                            Road, Export
                                                                            Processing Zone,
                                                                            Wuxi, China
                                                                            214028.
                                                                           Lam Research
                                                                            Service Co.,
                                                                            Ltd., Wuhan
                                                                            Representative
                                                                            Office, No. 1
                                                                            Guanshan Road,
                                                                            Donghu
                                                                            Development Zone,
                                                                            Room E4-302,
                                                                            Optical Valley
                                                                            Software Park,
                                                                            Wuhan, Hubei,
                                                                            China 430074.
                                                                           Lam Research
                                                                            Semiconductor
                                                                            (Suzhou) Co.,
                                                                            Ltd. (Suzhou), A
                                                                            Division of Lam
                                                                            Research
                                                                            International
                                                                            Sarl, A-2
                                                                            Building, Export
                                                                            Processing Zone,
                                                                            Suzhou New
                                                                            District, Jiangsu
                                                                            Province, China
                                                                            215151.
                                                                           Lam Research
                                                                            International
                                                                            Sarl (Lam Beijing
                                                                            Warehouse),
                                                                            Building 3, No. 9
                                                                            Ke Chuang Er
                                                                            Street, Beijing
                                                                            Economic
                                                                            Technology
                                                                            Development Zone,
                                                                            Beijing, China
                                                                            100176.
                                                                           Lam Research
                                                                            International
                                                                            Sarl (Wuhan TSS),
                                                                            c/o HMG Wuhan
                                                                            Logistic Co.,
                                                                            Ltd., 1st-2nd
                                                                            Floor, No. 5
                                                                            Building, Hua Shi
                                                                            Yuan Er Road,
                                                                            Optical Valley
                                                                            Industry Park,
                                                                            East-lake Hi-Tech
                                                                            Development Zone,
                                                                            Wuhan City, Hubei
                                                                            Province, China
                                                                            430223.

[[Page 494]]

 
                                 Semiconductor        Items controlled     Semiconductor       72 FR 59164, 10/
                                  Manufacturing        under ECCNs          Manufacturing       19/07.
                                  International        1C350.c.3,           International      75 FR 67029, 11/1/
                                  Corporation.         1C350.d.7,           (Shanghai)          10.
                                                       2B006.b.1, 2B230,    Corporation, 18    76 FR 69609, 11/9/
                                                       2B350.d.2,           Zhang Jiang Rd.,    11.
                                                       2B350.g.3,           Pudong New Area,   77 FR 10955, 2/24/
                                                       2B350.i.3,           Shanghai, China     12.
                                                       3B001.a, 3B001.b,    201203.
                                                       3B001.c, 3B001.e,   Semiconductor
                                                       3B001.f, 3C001,      Manufacturing
                                                       3C002, 3C004,        International
                                                       5B002 and 5E002      (Tianjin)
                                                       (limited to          Corporation, 19
                                                       ``technology''       Xing Hua Avenue,
                                                       according to the     Xi Qing Economic
                                                       General Technology   Development Area,
                                                       Note for the         Tianjin, China
                                                       ``production'' of    300385.
                                                       integrated          Semiconductor
                                                       circuits             Manufacturing
                                                       controlled by ECCN   International
                                                       5A002 that have      (Beijing)
                                                       been classified by   Corporation, No.
                                                       BIS as eligible      18 Wen Chang
                                                       for License          Road, Beijing
                                                       Exception ENC        Economic-
                                                       under paragraph      Technological
                                                       (b)(2) or (b)(3)     Development Area,
                                                       of section 740.17    Beijing, China
                                                       of the EAR, or       100176.
                                                       classified by BIS
                                                       as a mass market
                                                       item under
                                                       paragraph (b)(3)
                                                       of section 742.15
                                                       of the EAR).
                                 Shanghai Hua Hong    1C350.c.3;           Headquarters and
                                  NEC Electronics      1C350.d.7; 2B230;    Fab. 1 of HHNEC,
                                  Company, Ltd.        2B350.d.2;           No. 1188 Chuan
                                                       2B350.g.3;           Qiao Rd., Pu
                                                       2B350.i.4;           Dong, Shanghai,
                                                       3B001.c.2; 3C002;    China 201206.
                                                       3C004.              Fab. 2 of HHNEC,
                                                                            No. 668 Guo Shou
                                                                            Jing Rd., Zhang
                                                                            Jiang High Tech
                                                                            Park, Pu Dong,
                                                                            Shanghai, China
                                                                            201203.
                                 SK hynix             3B001.a, 3B001.b,    SK hynix            75 FR 62462, 10/
                                  Semiconductor        3B001.c, 3B001.d,    Semiconductor       12/10.
                                  (China) Ltd.         3B001.e, and         (China) Ltd., Lot  77 FR 40260, 7/9/
                                                       3B001.f.             K7/K7-1, Export     12.
                                                                            Processing Zone,
                                                                            Wuxi, Jiangsu,
                                                                            China.
                                 SK hynix             3B001.a, 3B001.b,    SK hynix            75 FR 62462, 10/
                                  Semiconductor        3B001.c, 3B001.d,    Semiconductor       12/10.
                                  (Wuxi) Ltd.          3B001.e, and         (Wuxi) Ltd., Lot   77 FR 40260, 7/9/
                                                       3B001.f.             K7/K7-1, Export     12.
                                                                            Processing Zone,
                                                                            Wuxi, Jiangsu,
                                                                            China.
----------------------------------------------------------------------------------------------------------------
India..........................  GE India Industrial  1C002.a.1,           GE India            74 FR 31620, 7/2/
                                  Pvt Ltd.             1C002.a.2,           Technology Centre   09.
                                                       1C002.b.1.a,         Private Limited    74 FR 68147, 12/
                                                       1C002.b.1.b,         (GEITC), No. 122,   23/09.
                                                       1E001, 2E003.f,      EPIP, Phase II,    77 FR 10958, 2/24/
                                                       9E003.a.1,           Hoodi Village,      12.
                                                       9E003.a.2,           Whitefield Road,
                                                       9E003.a.4,           Bangalore 560066,
                                                       9E003.a.5,           Karnataka, India.
                                                       9E003.a.6,          Bangalore
                                                       9E003.a.8, and       Engineering
                                                       9E003.c.             Center (BEC), c/o
                                                                            GE India
                                                                            Technology Centre
                                                                            Private Limited
                                                                            (GEITC), No. 122,
                                                                            EPIP, Phase II
                                                                            Hoodi Village,
                                                                            Whitefield Road,
                                                                            Bangalore 560066,
                                                                            Karnataka, India.
----------------------------------------------------------------------------------------------------------------


[76 FR 40805, July 12, 2011, as amended at 76 FR 69612, Nov. 9, 2011, 77 
FR 10955, Feb. 24, 2012; 77 FR 40260, July 9, 2012]

[[Page 495]]



Sec. Supplement No. 8 to Part 748--Information Required in Requests for 
                 Validated End-User (Veu) Authorization

    VEU authorization applicants must provide to BIS certain information 
about the prospective validated end-user. This information must be 
included in requests for authorization submitted by prospective 
validated end-users, or exporters or reexporters who seek to have 
certain entities approved as validated end-users. BIS may, in the course 
of its evaluation, request additional information.

   Required Information for Validated End-User Authorization Requests

    (1) Name of proposed VEU candidates, including all names under which 
the candidate conducts business; complete company physical address 
(simply listing a post office box is insufficient); telephone number; 
fax number; e-mail address; company Web site (if available); and name of 
individual who should be contacted if BIS has any questions. If the 
entity submitting the application is different from the prospective 
validated end-user identified in the application, this information must 
be submitted for both entities. If the candidate has multiple locations, 
all physical addresses located in the eligible destination must be 
listed.
    (2) Provide an overview of the structure, ownership and business of 
the prospective validated end-user. Include a description of the entity, 
including type of business activity, ownership, subsidiaries, and joint-
venture projects, as well as an overview of any business activity or 
corporate relationship that the entity has with either government or 
military organizations.
    (3) List the items proposed for VEU authorization approval and their 
intended end-uses. Include a description of the items; the ECCN for all 
items, classified to the subparagraph level, as appropriate; technical 
parameters for the items including performance specifications; and end-
use description for the items. If BIS has previously classified the 
item, the Commodity Classification Automated Tracking System (CCATS) 
number may be provided in lieu of the information listed in the 
foregoing provisions of this paragraph.
    (4) Provide the physical address(es) of the location(s) where the 
item(s) will be used, if this address is different from the address of 
the prospective validated end-user provided in paragraph (1) of this 
supplement.
    (5) If the prospective validated end-user plans to reexport or 
transfer the item, specify the destination to which the items will be 
reexported or transferred.
    (6) Specify how the prospective validated end-user's record keeping 
system will allow compliance with the recordkeeping requirements set 
forth inSec. 748.15(e) of the EAR. Describe the system that is in 
place to ensure compliance with VEU requirements.
    (7) Include an original statement on letterhead of the prospective 
validated end-user, signed and dated by a person who has authority to 
legally bind the prospective validated end-user, certifying that the 
end-user will comply with all VEU requirements. This statement must 
include acknowledgement that the prospective end-user:
    (i) Has been informed of and understands that the item(s) it may 
receive as a validated end-user will have been exported in accordance 
with the EAR and that use or diversion of such items contrary to the EAR 
is prohibited;
    (ii) Understands and will abide by all authorization VEU end-use 
restrictions, including the requirement that items received under 
authorization VEU will only be used for civil end-uses and may not be 
used for any activities described in part 744 of the EAR;
    (iii) Will comply with VEU recordkeeping requirements; and
    (iv) Agrees to allow on-site reviews by U.S. Government officials to 
verify the end-user's compliance with the conditions of the VEU 
authorization.

[72 FR 33661, June 19, 2007]



 Sec. Supplement No. 9 to Part 748--End-User Review Committee Procedures

    (1) The End-User Review Committee (ERC), composed of representatives 
of the Departments of State, Defense, Energy, and Commerce, and other 
agencies, as appropriate, is responsible for determining whether to add 
to, to remove from, or otherwise amend the list of validated end-users 
and associated eligible items set forth in Supplement No. 7 to this 
part. The Department of Commerce chairs the ERC.
    (2) Unanimous vote of the Committee is required to authorize VEU 
status for a candidate or to add any eligible items to a pre-existing 
authorization. Majority vote of the Committee is required to remove VEU 
authorization or to remove eligible items from a pre-existing 
authorization.
    (3) In addition to requests submitted pursuant toSec. 748.15, the 
ERC will also consider candidates for VEU authorization that are 
identified by the U.S. Government. When the U.S. Government identifies a 
candidate for VEU authorization, relevant parties (i.e., end-users and 
exporters or reexporters, when they can be identified) will be notified, 
before the ERC determines whether VEU authorization is appropriate, as 
to which end-users have been identified as potential VEU authorization 
candidates. End-users are not

[[Page 496]]

obligated to accept the Government's nomination.
    (4) The ERC will make determinations whether to grant VEU 
authorization to each VEU candidate no later than 30 calendar days after 
the candidate's complete application is circulated to all ERC agencies. 
The Committee may request additional information from an applicant or 
potential validated end-user related to a particular VEU candidate's 
application. The period during which the ERC is waiting for additional 
information from an applicant or potential validated end-user is not 
included in calculating the 30 calendar day deadline for the ERC's 
determination.
    (5) If an ERC agency is not satisfied with the decision of the ERC, 
that agency may escalate the matter to the Advisory Committee on Export 
Policy (ACEP). The procedures and time frame for escalating any such 
matters are the same as those specified for license applications in 
Executive Order 12981, as amended by Executive Orders 13020, 13026 and 
13117 and referenced inSec. 750.4 of the EAR.
    (6) A final determination at the appropriate decision-making level 
to amend the VEU authorization list set forth in Supplement No. 7 to 
this part operates as clearance by all member agencies to publish the 
amendment in the Federal Register.
    (7) The Deputy Assistant Secretary of Commerce for Export 
Administration will communicate the determination on each VEU request to 
the requesting party and the end-user.

[72 FR 33662, June 19, 2007]



PART 750_APPLICATION PROCESSING, ISSUANCE, 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 [Reserved]
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.; Sec 
1503, Pub. L. 108-11, 117 Stat. 559; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; 
Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459 (May 16, 
2003); Notice of August 15, 2012, 77 FR 49699 (August 16, 2012).

    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 inSec. 748.3 (a) and (b) of 
the EAR will be answered within 14 calendar days after receipt. All 
responses will inform the person of the proper classification (e.g., 
whether or not the item is subject to the Export Administration 
Regulations (EAR) and, if applicable, the appropriate Export Control 
Classification Number [ECCN]).
    (b) Advisory Opinion requests. All advisory opinions submitted in 
accordance with procedures described inSec. 748.3(a) and (c) of the 
EAR will be answered within 30 calendar days after receipt. Requests to 
obtain Validated End-User authorization will be resolved within 30 
calendar days as described in Supplement No. 9 to Part 748 of the EAR.

[61 FR 12829, Mar. 25, 1996, as amended at 72 FR 33662, June 19, 2007]



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

[[Page 497]]

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 national security, nuclear nonproliferation, missile 
technology, regional stability, anti-terrorism, crime control reasons, 
and sanctions; and
    (iv) The Department of Justice is concerned with controls relating 
to encryption items and items primarily useful for the surreptitious 
interception of wire, oral, or electronic communications.

[61 FR 12829, Mar. 25, 1996, as amended at 61 FR 68585, Dec. 30, 1996; 
63 FR 50525, Sept. 22, 1998; 71 FR 67036, Nov. 20, 2006; 73 FR 57509, 
Oct. 3, 2008]



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 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

[[Page 498]]

(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 inSec. 
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, 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;
    (B) All items controlled for chemical and biological weapons 
proliferation reasons;
    (C) All items controlled for missile technology reasons;
    (D) All items controlled for nuclear nonproliferation reasons; and
    (E) All items controlled by the CCL where the entry heading 
identifies the items controlled as those contained in the Wassenaar 
Arrangement 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

[[Page 499]]

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 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.

[[Page 500]]

    (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; 69 
FR 46079, July 30, 2004; 71 FR 20887, Apr. 24, 2006; 71 FR 51719, Aug. 
31, 2006; 72 FR 43532, Aug. 6, 2007]



Sec.  750.5  [Reserved]



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.

[[Page 501]]

    (b) Issuance of a license. BIS may issue a license electronically 
via its Simplified Network Application Processing (SNAP-R) system or via 
paper or both electronically and via paper. Each license has a license 
number that will be shown on 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 inSec. 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;
    (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, or unit price, where 
necessary only for the purpose of conforming to an official revision in 
the CCL; or wording of the item description. This does not cover an 
actual change in the item to be shipped, or an increase in the total 
price or quantity on the license; or
    (2) [Reserved]
    (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 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 in writing 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

[[Page 502]]

of Commerce, may apply for any license for a period up to 10 years from 
the date of the conviction. SeeSec. 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 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'' (seeSec. 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 inSec. 
748.4(h) of the EAR will not be extended. SeeSec. 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

[[Page 503]]

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.
    (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 inSec. 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 inSec. 
748.1(d)(2) of the EAR.
    (4) Replacement license. If you have been issued a ``replacement 
license'' (for changes to your original license not covered in paragraph 
(c) of this section), you must retain both the original and the 
replacement license.
    (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 inSec. 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; 69 FR 
5691, Feb. 6, 2004; 69 FR 69814, Dec. 1, 2004; 73 FR 49331, Aug. 21, 
2008; 73 FR 57510, Oct. 3, 2008; 75 FR 17054, Apr. 5, 2010]



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. 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 inSec. 
748.1(d)(2) 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

[[Page 504]]

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.

[61 FR 12829, Mar. 25, 1996, as amended at 73 FR 49331, Aug. 21, 2008; 
76 FR 12280, Mar. 7, 2011]



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 inSec. 
748.1(d)(2) 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.

[61 FR 12829, Mar. 25, 1996, as amended at 73 FR 49331, Aug. 21, 2008]



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

[[Page 505]]

covered by the license, or is acting as agent for a principal party in 
interest;
    (ii) That the transferee is subject to the jurisdiction of the 
United States;
    (iii) That the transferee assumes all powers and responsibilities 
under the license for the control of the shipment of the items out of 
the United States;
    (iv) Whether any consideration has been, has not been, or will be 
paid for the transfer;
    (v) The name and address of the foreign principal in instances where 
the transferee will make the export as an agent on behalf of a foreign 
principal; and
    (vi) If the license is to be transferred to a subsidiary or firm, or 
if you transfer to the transferee all, or a substantial portion, of your 
assets or business, the transferee must certify that the legal authority 
changing the exporter imposes on the transferee the responsibility to 
accept and fulfill the obligations of the transferor under the 
transactions covered by the license; and
    (vii) The following certification:

    The undersigned hereby certifies that, if license number(s) --------
---- is (are) transferred in accordance with my (our) request, any and 
all documents evidencing the order covered by 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 `` $ value'' or ``in $ 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

[[Page 506]]

``kilograms'' or ``square meters'' or some other unit of area, weight or 
measure, your shipment may exceed the unshipped balance of the area, 
weight or other measure listed on your license by up to 10% and the 
total dollar value shown on your license by up to 25%, unless;
    (i) Your license stipulates a specific shipping tolerance; or
    (ii) Your item is controlled for short supply reasons and a smaller 
tolerance has been established. (See part 754 of the EAR).
    (c) Examples of shipping tolerances. (1) A license authorizes the 
export of 100,000 kilograms of an item controlled by an ECCN where the 
``Unit'' is stated as ``kilograms'', the total cost of which is 
$1,000,000:
    (i) One shipment. If one shipment is made, the quantity that may be 
exported may not exceed 110,000 kg (10% tolerance on the unshipped Area, 
Weight, or Measure balance), and the total cost of that one shipment may 
not exceed $1,250,000:

  $1,000,000  (the total value shown on the license)
    +250,000  (25% of the total value shown on the license)
-------------
  $1,250,000
 

    (ii) Two shipments. If the first shipment is for 40,000 kg (valued 
at $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).

[[Page 507]]

 
  +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.

[61 FR 12829, Mar. 25, 1996, as amended at 73 FR 37, Jan. 2, 2008]



PART 752_SPECIAL COMPREHENSIVE LICENSE--Table of Contents



Sec.
752.1 Scope.
752.2 Eligible activities.
752.3 Eligible items.
752.4 Eligible countries.
752.5 Steps you must follow to apply for an SCL.
752.6 Reexports.
752.7 Direct shipment to customers.
752.8 SCL application review process.
752.9 Action on SCL applications.
752.10 Changes to the SCL.
752.11 Internal Control Programs.
752.12 Recordkeeping requirements.
752.13 Inspection of records.
752.14 System reviews.
752.15 Export clearance.
752.16 Administrative actions.
752.17 BIS address.

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 15, 2012, 77 FR 49699 
(August 16, 2012).

    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

[[Page 508]]

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 bySec. 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:
    (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, 2B352, 2E001, 2E002, and 2E301 on the CCL controlled for CB 
reasons;
    (3) Items controlled by ECCNs 1C350, 1C995, 1D390, 1E350, 1E351, 
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 inSec. 744.5 of the 
EAR;
    (7) Communications intercepting devices and related software and 
technology controlled by ECCNs 5A001.i, 5A980, 5D001 (for 5A001.i or for 
5E001.a (for 5A001.i, or for 5D001.a (for 5A001.i))), 5D980, 5E001.a 
(for 5A001.i, or for 5D001.a (for 5A001.i)) or 5E980 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; 69 FR 5691, Feb. 6, 2004; 71 FR 
67037, Nov. 20, 2006; 77 FR 39369, July 2, 2012]

[[Page 509]]



Sec.  752.4  Eligible countries.

    (a) General provisions. All countries are eligible under the SCL 
except:
    (1) Cuba, Iran, Iraq, 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.

[61 FR 12835, Mar. 25, 1996, as amended at 71 FR 51719, Aug. 31, 2006]



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 numbers included inSec. 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 inSec. 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

[[Page 510]]

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 inSec. 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 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 inSec. 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 ofSec. 752.14 of this part, and the reexport 
restrictions ofSec. 752.6 of this part; and
    (iii) They will make available for inspection, upon request by BIS, 
all records required bySec. 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 
ordemonstration 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-

[[Page 511]]

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 or end-user 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 transferred, 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 inSec. 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 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; 73 FR 68327, Nov. 18, 2008]



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 736 of the EAR) may reexport them under the 
authority of your SCL, provided that they are reexported in accordance 
with the ICP required bySec. 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; 72 
FR 43532, Aug. 6, 2007]



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.

[[Page 512]]

    (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]



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 (in-country) 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

[[Page 513]]

the procedures described in part 750 of the EAR.

[61 FR 12835, Mar. 25, 1996, as amended at 73 FR 68327, Nov. 18, 2008]



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 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 ofSec. 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 inSec. 
752.11(c)(13)(i) of this part, when required;
    (G) A copy of your procedures for screening transactions to prevent 
violations of orders denying export privileges under the EAR:
    (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 bySec. 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.

[[Page 514]]

    (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 inSec. 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; 70 
FR 8719, Feb. 23, 2005]



Sec.  752.10  Changes to the SCL.

    (a) General information. Certain changed circumstances regarding the 
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

[[Page 515]]

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.
    (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 Form 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 withSec. 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.

[[Page 516]]

    (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.
    (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,

[[Page 517]]

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 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 inSec. 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 regulatory materials necessary to ensure 
compliance with the EAR;
    (4) A system for screening transactions to prevent violations of 
orders denying export privileges under the EAR;
    (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;

[[Page 518]]

    (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 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 inSec. 
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

[[Page 519]]

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; 70 
FR 8719, Feb. 23, 2005]



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 and all 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. Each SCL holder and each consignee must 
maintain a record of its procedures for screening transactions to 
prevent violations of orders denying export privileges.
    (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 inSec. 752.2(a)(3) of this part. Records on 
such sales or reexports must include the following:
    (1) Full name and address of individual or firm to whom sale or 
reexport was made;
    (2) Full description of each item sold or reexported;
    (3) Units of quantity and value of each item sold or reexported; and
    (4) Date of sale or reexport.

[61 FR 12835, Mar. 25, 1996, as amended at 66 FR 461, Jan. 3, 2002; 70 
FR 8719, Feb. 23, 2005]



Sec.  752.13  Inspection of records.

    (a) Availability of records. You and all consignees must make 
available all of the records required bySec. 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) andSec. 758.1 of the EAR.

[[Page 520]]

    (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 ofSec. 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]



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, reexports, or transfers (in-
country) 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.

[61 FR 12835, Mar. 25, 1996, as amended at 73 FR 68327, Nov. 18, 2008]



Sec.  752.17  BIS address.

    You should use the following address when submitting to BIS 
applications, reports, documentation, or other requests required in this 
part 752, via courier: Bureau of Industry and Security, U.S. Department 
of Commerce, 14th and Pennsylvania Ave., NW., Room 2705, Washington, DC 
20230, ``Attn: Special Licensing and Compliance Division''. You may also 
reach the Special Licensing and Compliance Division by phone at (202) 
482-0062 or by fax at (202) 501-6750.

[73 FR 37, Jan. 2, 2008]



Sec. 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.

[[Page 521]]

    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.
    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]



Sec. Supplement No. 2 to Part 752--Instructions for Completing Form BIS-
                         748P-B, ``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 enter the ``Adjusted Peak Performance'' (``APP'') 
in this block if you intend to export or reexport a computer or 
equipment that contains a computer. Instructions on calculating the APP 
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; 71 
FR 20887, Apr. 24, 2006]



 Sec. 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 bySec. 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.

[[Page 522]]

    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 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 transfer 
or resell within the country of import. State the end-use of your 
customers. If you plan to transfer 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; 73 
FR 68327, Nov. 18, 2008]



Sec. 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

[[Page 523]]

country you wish to select. SeeSec. 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]



Sec. 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.
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; 15 U.S.C. 1824a; 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 15, 2012, 77 FR 49699 (August 16, 2012).

    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, seeSec. 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, 
seeSec. 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

[[Page 524]]

    (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, seeSec. 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 (seeSec. 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 
(seeSec. 754.7 of this part).
    (c) Reexports. Reexports of items controlled by this part require a 
license only if such a requirement is specifically set forth in this 
part or is set forth on the license authorizing the export from the 
United States.
    (d) Additional requirements for embargoed destinations. For exports 
involving embargoed destinations, you must satisfy the requirements of 
this part and also of part 746 of the EAR (Embargoes and Other Special 
Controls).



Sec.  754.2  Crude oil.

    (a) License requirement. As indicated by the SS notation in the 
``License Requirements'' section of ECCN 1C981 on the CCL (Supplement 
No. 1 to part 774 of the EAR), a license is required for the export of 
crude oil to all destinations, including Canada. See paragraph (h) of 
this section for a License Exception permitting the export of certain 
oil from the Strategic Petroleum Reserves, paragraph (i) of this section 
for a License Exception for certain shipments of samples, and paragraph 
(j) of this section for a License Exception for exports of oil 
transported by pipeline over right-of-way granted pursuant to 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

[[Page 525]]

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 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

[[Page 526]]

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 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.

[[Page 527]]

    (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 in accordance with 
Sec.Sec. 748.1, 748.4 and 748.6 of the EAR.
    (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;
    (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, 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.

[[Page 528]]

    (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 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

[[Page 529]]

TAPS oil export trade must remain outside of the 200 nautical mile 
Exclusive Economic Zone, as defined in 16 U.S.C. 1802(6). Tankers 
returning from foreign ports to Valdez, Alaska must abide by the same 
restrictions, in reverse, on their return route. This condition shall 
not be construed to limit any statutory, treaty or Common Law rights and 
duties imposed upon and enjoyed by tankers in the TAPS oil export trade, 
including, but not limited to, force majeure and maritime search and 
rescue rules; and
    (iii) The owner or operator of a tanker exporting TAPS oil shall:
    (A) Adopt a mandatory program of deep water ballast exchange (i.e., 
at least 2,000 meters water depth). Exceptions can be made at the 
discretion of the captain only in order to ensure the safety of the 
vessel and crew. Records must be maintained in accordance with paragraph 
(j)(3) of this section.
    (B) Be equipped with satellite-based communications systems that 
will enable the Coast Guard independently to determine the tanker's 
location; and
    (C) Maintain a Critical Area Inspection Plan for each tanker in the 
TAPS oil export trade in accordance with the U.S. Coast Guard's 
Navigation and Inspection Circular No. 15-91 as amended, which shall 
include an annual internal survey of the vessel's cargo block tanks.
    (2) 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; 73 FR 37, Jan. 2, 2008; 73 FR 49331, Aug. 21, 
2008; 76 FR 40605, July 11, 2011]



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

[[Page 530]]

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 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 apply for a license in accordance 
withSec. 748.1, 748.4 and 748.6 of the EAR, submit any other documents 
as may be required by BIS, and submit a 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) In Blocks 16 and 18 of the application, ``Various'' may be 
entered when there is more than one purchaser or ultimate consignee.
    (3) For each application submitted, and for each export shipment 
made

[[Page 531]]

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 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. SeeSec. 
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; 
73 FR 49331, Aug. 21, 2008]



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 application 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.

[61 FR 12844, Mar. 25, 1996, as amended at 73 FR 49331, Aug. 21, 2008]



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

[[Page 532]]

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) Address. Submit applications pursuant to the provisions of 
section 7(g) of the EAA, via courier, to: Bureau of Industry and 
Security, U.S. Department of Commerce, 14th and Pennsylvania Ave., NW., 
Room 2705, Washington, DC 20230.

[61 FR 12844, Mar. 25, 1996, as amended at 62 FR 25467, May 9, 1997; 73 
FR 37, Jan. 2, 2008]



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) Address. Submit petitions pursuant to section 7(c) of the EAA, 
via courier, to: Bureau of Industry and Security, U.S. Department of 
Commerce, 14th and Pennsylvania Ave., NW., Room 2705, Washington, DC 
20230.

[61 FR 12844, Mar. 25, 1996, as amended at 62 FR 25467, May 9, 1997; 73 
FR 38, Jan. 2, 2008]



   Sec. 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).

[[Page 533]]

 
2710.00.1520...........  Jet fuel, naphtha-type.
2710.00.1530...........  Jet fuel, kerosene-type.
2710.00.1550...........  Other motor fuel (including tractor fuel and
                          stationary turbine fuel).
2710.00.2000...........  Kerosene derived from petroleum, shale oil,
                          natural gas, or combinations thereof (except
                          motor fuel).
2710.00.2500...........  Naphthas derived from petroleum, shale oil,
                          natural gas, or combinations thereof (except
                          motor fuel).
2710.00.5030...........  Mineral oil of medicinal grade derived from
                          petroleum, shale oil or both.
3819.00.0000...........  Hydraulic fluids, including automatic
                          transmission fluids.
2710.00.3010...........  Aviation engine lubricating oil, except jet
                          engine lubricating oil.
2710.00.3020...........  Jet engine lubricating oil 475.4520 Automotive,
                          diesel, and marine engine lubricating oil.
2710.00.3030...........  Turbine lubricating oil, including marine.
2710.00.3040...........  Automotive gear oils.
2710.00.3050...........  Steam cylinder oils.
2710.00.5045...........  Insulating or transformer oils.
2710.00.3070...........  Quenching or cutting oils.
2710.00.3080...........  Lubricating oils, n.s.p.f., except white
                          mineral oil.
2710.00.3700...........  Greases.
2710.00................  Carbon black feedstock oil.
2712.10.0000...........  Petroleum jelly and petrolatum, all grades.
2710.00.5040...........  White mineral oil, except medicinal grade.
2710.00.5060...........  Other non-lubricating and non-fuel petroleum
                          oils, n.s.p.f.
2814.10.0000...........  Ammonia, anhydrous.
2712.20.0000...........  Paraffin wax, crystalline, fully refined.
2712.90.0000...........  Paraffin wax, crystalline, except fully
                          refined.
2712.90.0000...........  Paraffin wax, all others (including
                          microcrystalline wax).
2517.30.0000...........  Paving mixtures, bituminous, based on asphalt
                          and petroleum.
2713.12.0000...........  Petroleum coke, calcined.
2714...................  Petroleum asphalt.
2713.11.0000...........  Petroleum coke, except calcined.
------------------------------------------------------------------------
\1\ The commodity descriptions provided in this supplement for the most
  part reflect those found in the U.S. Department of Commerce, Bureau of
  the Census, (1990 Edition) Statistical Classification of Domestic and
  Foreign Commodities Exported from the United States (1990 Ed., as
  revised through Jan. 1994). In some instances the descriptions are
  expanded or modified to ensure proper identification of products
  subject to export restriction. The descriptions in this supplement,
  rather than Schedule B Number, determine the commodity included in the
  definition of ``Petroleum'' under the Naval Petroleum Reserves
  Production Act.
\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.



    Sec. 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\ Report commodities on license applications in the units of quantity
  indicated.


[61 FR 12844, Mar. 25, 1996, as amended at 73 FR 49331, Aug. 21, 2008]



  Sec. 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--

[[Page 534]]

    (A) whether exports of this oil would diminish the total quantity or 
quality of petroleum available to the United States;
    (B) the results of an appropriate environmental review, including 
consideration of appropriate measures to mitigate any potential adverse 
effects of exports of this oil on the environment, which shall be 
completed within four months of the date of the enactment of this 
subsection; and
    (C) whether exports of this oil are likely to cause sustained 
material oil supply shortages or sustained oil prices significantly 
above world market levels that would cause sustained material adverse 
employment effects in the United States or that would cause substantial 
harm to consumers, including noncontiguous States and Pacific 
territories.
    If the President determines that exports of this oil are in the 
national interest, he may impose such terms and conditions (other than a 
volume limitation) as are necessary or appropriate to ensure that such 
exports are consistent with the national interest.
    (2) Except in the case of oil exported to a country with which the 
United States entered into a bilateral international oil supply 
agreement before November 26, 1979, or to a country pursuant to the 
International Emergency Oil Sharing Plan of the International Energy 
Agency, any oil transported by pipeline over right-of-way granted 
pursuant to section 203 of the Trans-Alaska Pipeline Authorization Act 
(43 U.S.C. 1652) shall, when exported, be transported by a vessel 
documented under the laws of the United States and owned by a citizen of 
the United States (as determined in accordance with section 2 of the 
Shipping Act, 1916 (46 U.S.C. App. 802)).
    (3) Nothing in this subsection shall restrict the authority of the 
President under the Constitution, the International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act ( ) 
U.S.C. 1601 et seq.), or Part B of title II of the Energy Policy and 
Conservation Act (42 U.S.C. 6271-76) to prohibit exports.
    (4) The Secretary of Commerce shall issue any rules necessary for 
implementation of the President's national interest determination, 
including any licensing requirements and conditions, within 30 days of 
the date of such determination by the President. The Secretary of 
Commerce shall consult with the Secretary of Energy in administering the 
provisions of this subsection.
    (5) If the Secretary of Commerce finds that exporting oil under 
authority of this subsection has caused sustained material oil supply 
shortage or sustained oil prices significantly above world market levels 
and 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

                            10Sec. 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

[[Page 535]]

increased efficiency of transportation across parts of an adjacent 
foreign state and reenters the United States, shall be subject to all of 
the limitations and licensing requirements of the Export Administration 
Act of 1979 (50 U.S.C. App. 2401 et seq.) and, in addition, before any 
petroleum subject to this section may be exported under the limitations 
and licensing requirement and penalty and enforcement provisions of the 
Export Administration Act of 1979, the President must make and publish 
an express finding that such exports will not diminish the total quality 
or quantity of petroleum available to the United States and that such 
exports are in the national interest and are in accord with the Export 
Administration Act of 1979.

                    OUTER CONTINENTAL SHELF LANDS ACT

                             43 U.S.C. 1354

    (a) Application of Export Administration provisions.
    Except as provided in subsection (d) of this section, any oil or gas 
produced from the outer Continental Shelf shall be subject to the 
requirements and provisions of the Export Administration Act of 1969. 
Note that the Export Administration Act of 1969, referred to in 
paragraphs (a) and (b) of the Supplement, terminated on September 30, 
1979, pursuant to the terms of that Act.
    (b) Condition precedent to exportation; express finding by President 
of no increase in reliance on imported oil or gas.
    Before any oil or gas subject to this section may be exported under 
the requirements and provisions of the Export Administration Act of 
1969, the President shall make and publish an express finding that such 
exports will not increase reliance on imported oil or gas, are in the 
national interest, and are in accord with the provisions of the Export 
Administration Act of 1969.
    (c) Report of findings by President to Congress; joint resolution of 
disagreement with findings of President.
    The President shall submit reports to Congress containing findings 
made under this section, and after the date of receipt of such reports 
Congress shall have a period of sixty calendar days, thirty days of 
which Congress must have been in session, to consider whether export 
under the terms of this section are in the national interest. If the 
Congress within such time period passes a concurrent resolution of 
disapproval stating disagreement with the President's finding concerning 
the national interest, further exports made pursuant to such 
Presidential findings shall cease.
    (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. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 
2012, 77 FR 49699 (August 16, 2012).

    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, any appeal from 
an action taken underSec. 766.25 and any appeal from an action taken 
in accordance withSec. 766.23 to make an action taken underSec. 
766.25 applicable to a related person shall be subject to the appeals 
procedures described in this part 756.
    (3) A decision on a request to remove or modify an Entity List entry 
made pursuant toSec. 744.16 of the EAR.

[[Page 536]]

    (b) Definitions. [Reserved]

[61 FR 12851, Mar. 25, 1996, as amended at 62 FR 25467, May 9, 1997; 65 
FR 14863, Mar. 20, 2000; 71 FR 27605, May 12, 2006; 73 FR 49323, Aug. 
21, 2008]



Sec.  756.2  Appeal from an administrative action.

    (a) Review and appeal officials. The Under Secretary may delegate to 
the Deputy Under Secretary for Industry and Security or to another BIS 
official the authority to review and decide the appeal. In addition, the 
Under Secretary may designate any employee of the Department of Commerce 
to be an appeals coordinator to assist in the review and processing of 
an appeal under this part. If such employee is not an employee of BIS, 
such designation may be made only with the concurrence of the head of 
the operating unit in which that employee is employed. 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 Industry and Security, Bureau of 
Industry and Security, U.S. Department of Commerce, Room 3898, 14th 
Street and Pennsylvania Avenue, NW., Washington, DC 20230 not later than 
45 days after the date appearing on the written notice of administrative 
action.
    (2) Content of appeal. The appeal must include a full written 
statement in support of appellant's position. The appeal must include a 
precise statement of why the appellant believes the administrative 
action has a direct and adverse effect and should be reversed or 
modified. The Under Secretary may request additional information that 
would be helpful in resolving the appeal, and may accept additional 
submissions. The Under Secretary will not ordinarily accept any 
submission filed more than 30 days after the filing of the appeal or of 
any requested submission.
    (3) Request for informal hearing. In addition to the written 
statement submitted in support of an appeal, an appellant may request, 
in writing, at the time an appeal is filed, an opportunity for an 
informal hearing. The Under Secretary may grant or deny a request for an 
informal hearing. Any hearings will be held in the District of Columbia 
unless the Under Secretary determines, based upon good cause shown, that 
another location would be better.
    (4) Informal hearing procedures--(i) Presentations. The Under 
Secretary shall provide an opportunity for the appellant to make an oral 
presentation based on the materials previously submitted by the 
appellant or made available by the Department in connection with the 
administrative action. The Under Secretary may require that any facts in 
controversy be covered by an affidavit or testimony given under oath or 
affirmation.
    (ii) Evidence. The rules of evidence prevailing in courts of law do 
not apply, and all evidentiary material deemed by the Under Secretary to 
be 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. Any person designated by the Under Secretary to conduct 
an informal hearing shall submit a written report containing a summary 
of the hearing and recommend 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

[[Page 537]]

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; 70 FR 8250, Feb. 18, 2005; 71 FR 34009, June 
13, 2006]



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.
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 15, 
2012, 77 FR 49699 (August 16, 2012).

    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 
a country in Country Group E:1 of Supplement No. 1 to part 740 of the 
EAR regardless of value (see 15 CFR 30.55);
    (2) For all exports subject to the EAR that require submission of a 
license application, 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;
    (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); or
    (5) For all items exported under authorization Validated End-User 
(VEU).

    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

[[Page 538]]

(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 inSec. 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 inSec. 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 inSec. 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 inSec. 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 inSec. 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 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 ofSec. 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

[[Page 539]]

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) andSec. 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, underSec. 740.9(b)(3), are 
excepted from this requirement. See alsoSec. 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 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. SeeSec. 734.7 
throughSec. 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; 69 FR 46080, July 30, 2004; 72 FR 33662, 
June 19, 2007; 72 FR 43532, Aug. 6, 2007]



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

[[Page 540]]

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 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 inSec. 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 inSec. 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 
withSec. 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

[[Page 541]]

    (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 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. SeeSec. 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, seeSec. 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. SeeSec. 748.4(b)(2) andSec. 
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,

[[Page 542]]

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 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

[[Page 543]]

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 2705, 14th and 
Pennsylvania Avenue, NW., Washington, DC 20230; phone number 202-482-
0436; facsimile number 202-482-3322; and E-Mail address: 
[email protected].

[65 FR 42573, July 10, 2000, as amended at 72 FR 3946, Jan. 29, 2007]



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.

[[Page 544]]

    (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 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

[[Page 545]]

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.
    (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 
ofSec. 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.

[[Page 546]]



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
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. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 
2012, 77 FR 49699 (August 16, 2012).

    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

[[Page 547]]

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.

                  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 assigned 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 assignment 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

[[Page 548]]

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.
    (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.

[[Page 549]]

    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''.

 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

[[Page 550]]

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
    (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

[[Page 551]]

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 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) SeeSec. 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.

[[Page 552]]

            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.
    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

[[Page 553]]

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.
    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.

[[Page 554]]

    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 underSec. 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.
    (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

[[Page 555]]

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.
    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; 73 
FR 68327, Nov. 18, 2008; 73 FR 74349, Dec. 8, 2008]



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

[[Page 556]]

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 seeSec. 760.4 of this part on ``Evasion.'')
    (6) If, for boycott reasons, a United States general manager chooses 
one supplier over another, or enters into a contract with one supplier 
over another, or advises its client to do so, then the general manager's 
actions constitute a refusal to do business under this section. However, 
it is not a refusal to do business under this section for a United 
States person to provide management, procurement, or other pre-award 
services for another person so long as the provision of such pre-award 
services is customary for that firm (or industry of which the firm is a 
part), without regard to the boycotting or non-boycotting character of 
the countries in which they are performed, and the United States person, 
in providing such services, does not act to exclude a person or country 
from the transaction for boycott reasons, or otherwise take actions that 
are boycott-based. For example, a United States person under contract to 
provide general management services in connection with a construction 
project in a boycotting country may compile lists of qualified bidders 
for the client if that service is a customary one and if persons who are 
qualified are not excluded from that list because they are blacklisted.
    (7) With respect to post-award services, if a client makes a 
boycott-based selection, actions taken by the United States general 
manager or contractor to carry out the client's choice are themselves 
refusals to do business if the United States contractor knows or has 
reason to know that the client's choice was boycott-based. (It is 
irrelevant whether the United States contractor also provided pre-award 
services.) Such actions include entering into a contract with the 
selected supplier, notifying the supplier of the client's choice, 
executing a contract on behalf of the client, arranging for inspection 
and shipment of the supplier's goods, or taking any other action to 
effect the client's choice. (But seeSec. 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

[[Page 557]]

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 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

[[Page 558]]

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 seeSec. 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 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 inSec. 
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 
inSec. 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

[[Page 559]]

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 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,

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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 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.

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    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 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.

[[Page 562]]

    (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 
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;

[[Page 563]]

    (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 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

[[Page 564]]

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 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.

[[Page 565]]

    (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.

    (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.

[[Page 566]]

    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;
    (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.

[[Page 567]]

        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 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

[[Page 568]]

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 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. (SeeSec. 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

[[Page 569]]

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.
    (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-

[[Page 570]]

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. (SeeSec. 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 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.

[[Page 571]]

    (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 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]

[[Page 572]]

    (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 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

[[Page 573]]

himself take any action prohibited by this part.

           Unilateral and Specific Character of the Selection

    (3) In order for this exception to apply, the selection with which a 
United States person wishes to comply must be unilateral and specific.
    (4) A ``specific'' selection is one which is stated in the 
affirmative and which specifies a particular supplier of goods or 
services.
    (5) A ``unilateral'' selection is one in which the discretion in 
making the selection is exercised by the boycotting country buyer. If 
the United States person who receives a unilateral selection has 
provided the buyer with any boycott-based assistance (including 
information for purposes of helping the buyer select someone on a 
boycott basis), then the buyer's selection is not unilateral, and 
compliance with that selection by a United States person does not come 
within this exception.
    (6) The provision of so-called ``pre-selection'' or ``pre-award'' 
services, such as providing lists of qualified suppliers, 
subcontractors, or bidders, does not, in and of itself, destroy the 
unilateral character of a selection, provided such services are not 
boycott-based. Lists of qualified suppliers, for example, must not 
exclude anyone because he is blacklisted. Moreover, such services must 
be of the type customarily provided in similar transactions by the firm 
(or industry of which the firm is a part) as measured by the practice in 
non-boycotting as well as boycotting countries. If such services are not 
customarily provided in similar transactions or such services are 
provided in such a way as to exclude blacklisted persons from 
participating in a transaction or diminish their opportunity for such 
participation, then the services may not be provided without destroying 
the unilateral character of any subsequent selection.

           Selection To Be Made by Boycotting Country Resident

    (7) In order for this exception to be available, the unilateral and 
specific selection must have been made by a boycotting country, or by a 
national or resident of a boycotting country. Such a resident may be a 
United States person. For purposes of this exception, a United States 
person will be considered a resident of a boycotting country only if he 
is a bona fide resident. A United States person may be a bona fide 
resident of a boycotting country even if such person's residency is 
temporary.
    (8) Factors that will be considered in determining whether a United 
States person is a bona fide resident of a boycotting country include:
    (i) Physical presence in the country;
    (ii) Whether residence is needed for legitimate business reasons;
    (iii) Continuity of the residency;
    (iv) Intent to maintain the residency;
    (v) Prior residence in the country;
    (vi) Size and nature of presence in the country;
    (vii) Whether the person is registered to do business or 
incorporated in the country;
    (viii) Whether the person has a valid work visa; and
    (ix) Whether the person has a similar presence in both boycotting 
and non-boycotting foreign countries in connection with similar business 
activities.

    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

[[Page 574]]

to know that the selection is made for boycott reasons, he has a duty to 
inquire of the transmitting person to determine who actually made the 
selection. If he knows or has reason to know that the selection was made 
by other than a boycotting country, or a national or resident of a 
boycotting country, he may not comply. A course or pattern of conduct 
which a United States person recognizes or should recognize as 
consistent with boycott restrictions will create a duty to inquire.
    (12) If the United States person does not know or have reason to 
know that the selection it receives is boycott-based, its compliance 
with such a selection does not offend any prohibition and this exception 
is not needed.

                          Selection of Services

    (13) This exception applies only to compliance with selections of 
certain types of suppliers of services-carriers, insurers, and suppliers 
of services to be performed ``within the boycotting country.'' Services 
to be performed wholly within the United States or wholly within any 
country other than the boycotting country are not covered.
    (14) For purposes of this part, services are to be performed 
``within the boycotting country'' only if they are of a type which would 
customarily be performed by suppliers of those services within the 
country of the recipient of those services, and if the part of the 
services performed within the boycotting country is a necessary and not 
insignificant part of the total services performed.
    (15) What is ``customary and necessary'' for these purposes depends 
on the usual practice of the supplier of the services (or the industry 
of which he is a part) as measured by the practice in non-boycotting as 
well as boycotting countries, except where such practices are instituted 
to accommodate this part.

                           Selection of Goods

    (16) This exception applies only to compliance with selections of 
certain types of goods--goods that, in the normal course of business, 
are identifiable as to their source or origin at the time of their entry 
into the boycotting country. The definition of ``specifically 
identifiable goods'' is the same under this section as it is in 
paragraph (g) of this section on ``Compliance with Local Law.''
    (17) Goods ``specifically identifiable'' in the normal course of 
business are those items which at the time of their entry into a 
boycotting country are identifiable as to source or origin by uniqueness 
of design or appearance; or trademark, trade name, or other 
identification normally on the items themselves, including their 
packaging. Goods are ``specifically identifiable'' in the normal course 
of business if their source or origin is ascertainable by inspection of 
the items themselves, including their packaging, regardless of whether 
inspection takes place. Goods are not considered to be ``specifically 
identifiable'' in the normal course of business if a trademark, trade 
name, or other form of identification not normally present is added to 
the items themselves, including their packaging, to accommodate this 
part.

                                 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

[[Page 575]]

has reason to know that Y's selection of B is boycott-based.
    A may comply with Y's request, or may agree to comply as a condition 
of the contract, because the selection is specific and unilateral.
    (ii) A, a U.S. contractor building an industrial facility in 
boycotting country Y is asked by B, a resident of Y, to use C as the 
supplier of air conditioning equipment to be used in the facility. C is 
not blacklisted by country Y. A knows or has reason to know that B's 
request is boycott-based.
    A may comply with B's request, or may agree to comply as a condition 
of the contract, because the selection of C is specific and unilateral.
    (iii) A, a U.S. manufacturer of automotive equipment, is asked by 
boycotting country Y not to ship its goods to Y on U.S. carriers, B, C, 
or D. Carriers B, C, and D are blacklisted by boycotting country Y. A 
knows or has reason to know that Y's request is boycott-based.
    A may not comply or agree to comply with Y's request, because no 
specific selection of any particular carrier has been made.
    (iv) A, a U.S. exporter shipping goods ordered by boycotting country 
Y, is provided by Y with a list of eligible U.S. insurers from which A 
may choose in insuring the shipment of its goods. A knows or has reason 
to know that the list was compiled on a boycott basis.
    A may not comply or agree to comply with Y's request that A choose 
from among the eligible insurers, because no specific selection of any 
particular insurer has been made.
    (v) A, a U.S. aircraft manufacturer, is negotiating to sell aircraft 
to boycotting country Y. During the negotiations, Y asks A to identify 
the company which normally manufactures the engines for the aircraft. A 
responds that they are normally manufactured by U.S. engine manufacturer 
B. B is blacklisted by Y. In making the purchase, Y specifies that the 
engines for the aircraft should be supplied by U.S. engine manufacturer 
C.
    A may comply or agree to comply with Y's selection of C, because Y's 
selection is unilateral and specific.
    (vi) A, a U.S. construction firm, is retained by an agency of 
boycotting country Y to build a pipeline. Y requests A to suggest 
qualified engineering firms to be used on-site in the construction of 
the pipeline. It is customary for A, regardless of where it conducts its 
operations, to identify qualified engineering firms to its customers so 
that its customers may make their own selection of the firm to be 
engaged. Choice of engineering firm is customarily a prerogative of the 
customer. A provides a list of five engineering firms, B-F, excluding no 
firm because it may be blacklisted, and then confers with and gives its 
recommendations to Y. A recommends C, because C is the best qualified. Y 
then selects B, because C is blacklisted.
    A may comply with Y's selection of B, because the boycott-based 
decision is made by Y and is unilateral and specific. Since A's pre-
award services are of the kind customarily provided in these situations, 
and since they are provided without reference to the boycott, they do 
not destroy the unilateral character of Y's selection.
    (vii) A, a U.S. aircraft manufacturer, has an order to supply a 
certain number of planes to boycotting country Y. In connection with the 
order, Y asks A to supply it with a list of qualified aircraft tire 
manufacturers so that Y can select the tires to be placed on the planes. 
This is a highly unusual request, since, in A's worldwide business 
operations, choice of tires is customarily made by the manufacturer, not 
the customer. Nonetheless, A supplies a list of tire manufacturers, B, 
C, D, and E. Y chooses tire manufacturer B because B is not blacklisted. 
Had A, as is customary, selected the tires, company C would have been 
chosen. C happens to be blacklisted, and A knows that C's blacklist 
status was the reason for Y's selection of B.
    A's provision of a list of tire manufacturers for Y to choose from 
destroys the unilateral character of Y's selection, because such 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

[[Page 576]]

chemicals. As is customary in its business, A compiles a list of 
potential contractors on the basis of its evaluation of the capabilities 
of the respective candidates to perform the job. A has knowledge that 
company B is blacklisted, but provides Y with the names of companies B, 
C, D, and E, listing them in order of their qualifications. Y instructs 
A to negotiate with C.
    A may comply with Y's instruction, because Y's selection is 
unilateral and specific.
    (xii) A, a U.S. exporter, is asked by boycotting country Y not to 
ship goods on carriers B, C, or D, which are owned by nationals of and 
are registered in country P, a country not boycotted by Y.
    A may comply or agree to comply with Y's request even though the 
selection is not specific, because A does not know or have reason to 
know that the request is boycott-based.

    (Note: In example (xii), A has violated no prohibition, because it 
does not know or have reason to know that Y's instruction is boycott-
based. Therefore, A could not act with the requisite intent to comply 
with the boycott.)

    (xiii) A, a U.S. construction company, receives a contract to 
construct a hotel in boycotting country Y. As part of the contract, A is 
required to furnish Y with lists of qualified suppliers of various 
specifically identifiable items. A compiles lists of various qualified 
suppliers wholly without reference to the boycott, and thereafter Y 
instructs A to negotiate with, enter into contracts with, and arrange 
for delivery from each of the suppliers which Y designates. A knows that 
Y's choices are made on a boycott basis.
    A may comply with Y's selections and carry out these post-award 
services for Y, because Y's selections were unilateral and specific and 
A's pre-award services were provided without reference to Y's boycott.

                  Examples of Boycotting Country Buyer

(The factors in determining whether a United States person is a ``bona 
fide resident'' of a boycotting country are the same as in paragraph (g) 
of this section on ``Compliance with Local Law.'' See also the examples 
in that section.)

    (i) A, a U.S. exporter, is asked by B, a U.S. person who is a bona 
fide resident of boycotting country Y, to ship goods on U.S. carrier C. 
C is not blacklisted by Y, and A knows that B has chosen on a boycott 
basis in order to comply with Y's boycott laws.
    A may comply or agree to comply with B's request, because B is a 
bona fide resident of Y.
    (ii) A is a U.S. computer company whose subsidiary, B, is a bona 
fide resident of boycotting country Y. A receives an order from B for 
specific, identifiable products manufactured by company C in connection 
with a computer which B is installing in Y.
    A may comply or agree to comply with B's unilateral and specific 
selection, so long as the discretion was in fact exercised by B, not A.

    (Note: Unilateral selection transactions involving related United 
States persons will be scrutinized carefully to ensure that the 
selection was in fact made by the bona fide resident of the boycotting 
country.)

    (iii) A, a U.S. engineering firm, has chief engineer B as its 
resident engineer on a dam construction site in boycotting country Y. 
B's presence at the site is necessary in order to ensure proper 
supervision of the project. In order to comply with local law, B selects 
equipment supplier C rather than D, who is blacklisted, and directs A to 
purchase certain specific equipment from C for use in the project.
    A may comply with this unilateral selection, because the decision 
was made by a bona fide resident of Y.

(As noted above, unilateral selections involving related United States 
persons will be scrutinized carefully to ensure that the selection was 
in fact made by the bona fide resident of the boycotting country.)

    (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.

[[Page 577]]

    A may comply or agree to comply with Y's request, because compliance 
with the unilateral and specific selection of carriers is expressly 
permitted under this exception.
    (ii) A, a U.S. exporter shipping goods ordered by C, a national of 
boycotting country Y, is asked by C to insure the shipment through U.S. 
insurer B.
    A may comply or agree to comply with C's request, because compliance 
with the unilateral and specific selection of an insurer is expressly 
permitted under this exception.
    (iii) A, a U.S. construction company, is hired by C, an agency of 
the government of boycotting country Y, to build a power plant in Y. C 
specifies that A should subcontract the foundation work to U.S. 
contractor B. Part of the foundation design work will be done by B in 
the United States.
    A may comply or agree to comply with Y's designation, because a 
necessary and not insignificant part of B's services are to be performed 
within the boycotting country, and such services are customarily 
performed on-site.
    (iv) A, a U.S. contractor, is engaged by boycotting country Y to 
build a power plant. Y specifies that U.S. architectural firm B should 
be retained by A to design the plant. In order to design the plant, it 
is essential that B's personnel visit and become familiar with the site, 
although the bulk of the design and drawing work will be done in the 
United States.
    A may comply or agree to comply with Y's unilateral and specific 
selection of architectural firm B, because a necessary and not 
insignificant part of B's services are to be performed within Y, and 
such on-site work is customarily involved in the provision of 
architectural services. The fact that the bulk of the actual work may be 
performed in the United States is irrelevant since the part to be 
performed within Y is necessary to B's effective performance.
    (v) Same as (iv), except that Y specifies that the turbine for the 
power plant should be designed by U.S. engineer C. It is neither 
customary nor necessary for C to visit the site in order to do any of 
his work, but C has informed A that he would probably want to visit the 
site in Y if he were selected for the job.
    A may not comply or agree to comply with Y's request, because, in 
the normal course of business, it is neither customary nor necessary for 
engineer C's services to be performed in Y.
    (vi) A, a U.S. aircraft manufacturer, receives a contract from 
boycotting country Y to manufacture jet engines for Y's use. Y specifies 
that the engines should be designed by U.S. industrial engineering firm 
B.
    A may not comply or agree to comply with Y's request, because, in 
the normal course of business, the services will not be performed in Y.
    (vii) U.S. company A has a contract to supply specially designed 
road graders to boycotting country Y. Y has instructed A that it should 
engage engineering firm B in the design work rather than engineering 
firm C, which A normally uses, because C is blacklisted. When A contacts 
B, B informs A that one of B's personnel customarily visits the location 
in which any equipment B designs is used after it is in use, in order to 
determine how good a design job B has done. Such visits are necessary 
from B's point of view to provide a check on the quality of its work, 
and they are necessary from Y's point of view because they make it 
possible for Y to discuss possible design changes should deficiencies be 
detected.
    A may not comply with Y's selection of B, because the services which 
B would perform in Y are an insignificant part of the total services to 
be performed by B.

               Examples of Specifically Identifiable Goods

(The test of what constitutes ``specifically identifiable goods'' under 
this exception also applies to the term ``specifically identifiable 
goods'' as used in paragraph (g) of this section on ``Compliance with 
Local Law.'')

    (i) A, a U.S. contractor, is constructing an apartment complex, on a 
turnkey basis, for 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.

[[Page 578]]

    (iv) A, a U.S. company, manufactures computer-operated machine 
tools. The computers are mounted on a separate bracket on the side of 
the equipment and are readily identifiable by brand name imprinted on 
the equipment. There are five or six U.S. manufacturers of such 
computers which will function interchangeably to operate the machine 
tools manufactured by A. B, a resident of boycotting country Y, 
contracts to buy the machine tools manufactured by A on the condition 
that A incorporate, as the computer drive, a computer manufactured by 
U.S. company C. B's designation of C is made to avoid boycott problems 
which could be caused if computers manufactured by some other company 
were used.
    A may comply with B's designation of C, because the goods selected 
are identifiable by source or origin in the normal course of business at 
the time of their entry into Y.
    (v) A, a U.S. wholesaler of electronic equipment, receives an order 
from B, a U.S. manufacturer of radio equipment, who is a bona fide 
resident of boycotting country Y. B orders a variety of electrical 
components and specifies that all transistors must be purchased from 
company C, which is not blacklisted by Y. The transistors requested by B 
do not normally bear the name of the manufacturer; however, they are 
typically shipped in cartons, and C's name and logo appear on the 
cartons.
    A may comply with B's selection, because the goods selected by B are 
identifiable as to source or origin in the normal course of business at 
the time of their entry into Y by virtue of the containers or packaging 
used.
    (vi) A, a U.S. computer manufacturer, receives an order for a 
computer from B, a university in boycotting country Y. B specifies that 
certain integrated circuits incorporated in the computer must be 
supplied by U.S. electronics company C. These circuits are incorporated 
into the computer and are not visible without disassembling the 
computer.
    A may not comply or agree to comply with B's specific selection of 
these components, because they are not identifiable as to their source 
or origin in the normal course of business at the time of their entry 
into Y.
    (vii) A, a U.S. clothing manufacturer, receives an order for shirts 
from B, a retailer resident in boycotting country Y. B specifies that 
the shirts are to be manufactured from cotton produced by U.S. farming 
cooperative C. Such shirts will not identify C or the source of the 
cotton.
    A may not comply or agree to comply with B's designation, because 
the cotton is not identifiable as to source or origin in the normal 
course of business at the time of entry into Y.
    (viii) A, a U.S. contractor, is retained by B, a construction firm 
located in and wholly-owned by boycotting country Y, to assist B in 
procuring construction materials. B directs A to purchase a range of 
materials, including hardware, tools, and trucks, all of which bear the 
name of the manufacturer stamped on the item. In addition, B directs A 
to purchase steel beams manufactured by U.S. company C. The name of 
manufacturer C normally does not appear on the steel itself or on its 
export packaging.
    A may comply with B's selection of the hardware, tools, and trucks, 
because they are identifiable as to source or origin in the normal 
course of business at the time of entry into Y. A may not comply with 
B's selection of steel beams, because the goods are not identifiable as 
to source or origin by trade name, trademark, uniqueness or packaging at 
the time of their entry into Y.

 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,

[[Page 579]]

including those located in third countries.
    (3) This exception also permits compliance with restrictions which a 
boycotting country may place on the route of export shipments when the 
restrictions are reasonably related to preventing the export shipments 
from coming into contact with or under the jurisdiction of the boycotted 
country. This exception applies whether a boycotting country or the 
vendor of the shipment:
    (i) Explicitly states that the shipment should not pass through the 
boycotted country enroute to its final destination; or
    (ii) Affirmatively describes a route of shipment that does not 
include the boycotted country.
    (4) A United States person may not, under this exception, refuse on 
an across-the-board basis to do business with a boycotted country or a 
national or resident of a boycotted country.

    Examples of Compliance With a Boycotting Country's Requirements 
             Regarding Shipment or Transshipment of Exports

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with the export requirements of a 
boycotting country is permissible. They are illustrative, not 
comprehensive.
    (i) A, a U.S. petroleum company, exports petroleum products to 20 
countries, including the United States, from boycotting country Y. 
Country Y's export regulations require that products not be exported 
from Y to boycotted country X.
    A may agree to and comply with Y's regulations with respect to the 
export of goods from Y to X.
    (ii) Same as (i), except that Y's export regulations require that 
goods not be exported from boycotting country Y to any business concern 
organized under the laws of boycotted country X.
    A may agree to and comply with Y's regulations with respect to the 
export of goods from Y to a business concern organized under the laws of 
X, even if such concern is located in a country not involved in Y's 
boycott of X.
    (iii) B, the operator of a storage facility in country M, contracts 
with A, a U.S. carrier, for the shipment of certain goods manufactured 
in boycotting country Y. A's contract with B contains a provision 
stating that the goods to be transported may not be shipped or 
transshipped to boycotted country X. B informs A that this provision is 
a requirement of C, the manufacturer of goods who is a resident of 
boycotting country Y. Country M is not boycotted by Y.
    A may agree to and comply with this provision, because such a 
provision is required by the export regulations of boycotting country Y 
in order to prevent shipment of Y-origin goods to a country boycotted by 
Y.
    (iv) A, a U.S. petroleum refiner located in the United States, 
purchases crude oil from boycotting country Y. A has a branch operation 
in boycotted country X. Y requires, as a condition of sale, that A agree 
not to ship or transship the crude oil or products refined in Y to A's 
branch in X.
    A may agree to and comply with these requirements, because they are 
export requirements of Y designed to prevent Y-origin products from 
being shipped to a boycotted country.
    (v) A, a U.S. company, has a petrochemical plant in boycotting 
country Y. As a condition of securing an export license from Y, A must 
agree that it will not ship or permit transshipment of any of its output 
from the plant in Y to any companies which Y lists as being owned by 
nationals of boycotted country X.
    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.

[[Page 580]]

    (ix) Same as (vii), except that Y's export regulations require that 
A not transship the exported products ``in or at'' boycotted country X.
    A may agree to and comply with Y's regulations with respect to the 
transshipment of goods ``in or at'' X, because they are export 
requirements of Y designed to prevent Y-origin products from coming into 
contact with or under the jurisdiction of a boycotted country.

    (f) Immigration, passport, visa, or employment requirements of a 
boycotting country.

Compliance With Immigration, Passport, Visa, or Employment Requirements 
                         of a Boycotting Country

    (1) A United States individual may comply or agree to comply with 
the immigration, passport, visa, or employment requirements of a 
boycotting country, and with requests for information from a boycotting 
country made to ascertain whether such individual meets requirements for 
employment within the boycotting country, provided that he furnishes 
information only about himself or a member of his family, and not about 
any other United States individual, including his employees, employers, 
or co-workers.
    (2) For purposes of this section, a United States individual means a 
person who is a resident or national of the United States. Family means 
immediate family members, including parents, siblings, spouse, children, 
and other dependents living in the individual's home.
    (3) A United States person may not furnish information about its 
employees or executives, but may allow any individual to respond on his 
own to any request for information relating to immigration, passport, 
visa, or employment requirements. A United States person may also 
perform any ministerial acts to expedite processing of applications by 
individuals. These include informing employees of boycotting country 
visa requirements at an appropriate time; typing, translation, messenger 
and similar services; and assisting in or arranging for the expeditious 
processing of applications. All such actions must be undertaken on a 
non-discriminatory basis.
    (4) A United States person may proceed with a project in a 
boycotting country even if certain of its employees or other prospective 
participants in a transaction are denied entry for boycott reasons. But 
no employees or other participants may be selected in advance in a 
manner designed to comply with a boycott.

 Examples of Compliance With Immigration, Passport, Visa, or Employment 
                  Requirements of a Boycotting Country

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with immigration, passport, visa, 
or employment requirements is permissible. They are illustrative, not 
comprehensive.
    (i) A, a U.S. individual employed by B, a U.S. manufacturer of 
sporting goods with a plant in boycotting country Y, wishes to obtain a 
work visa so that he may be assigned 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

[[Page 581]]

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 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

[[Page 582]]

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 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.

[[Page 583]]

    (xv) U.S. company B is a computer manufacturer. B sells computers 
and related programming services tailored to the needs of individual 
clients. Because of the complex nature of the product, B must have sales 
representatives in any country where sales are made. B has a sales 
representative, A, in boycotting country Y. A spends two months of the 
year in Y, and the rest of the year in other countries. B has a 
permanent sales office from which A operates while in Y, and the sales 
office is stocked with brochures and other sales materials.
    A is a bona fide resident of Y, because his presence in Y is 
necessary to carry out B's legitimate business purposes; B maintains a 
permanent office in Y; and B intends to continue doing business in Y in 
the future.
    (xvi) A, a U.S. construction engineering company, is engaged by B, a 
U.S. general contracting company, to provide services in connection with 
B's contract to construct a hospital complex in boycotting country Y. In 
order to perform those services, A's engineers set up a temporary office 
in a trailer on the construction site in Y. A's work is expected to be 
completed within six months.
    A's personnel in Y are bona fide residents of Y, because A's on-site 
office is necessary to the performance of its services for B, and 
because A's personnel are continuously there.
    (xvii) A, a U.S. company, sends one of its representatives to 
boycotting country Y to explore new sales possibilities for its line of 
transistor radios. After spending several weeks in Y, A's representative 
rents a post office box in Y, to which all persons interested in A's 
products are directed to make inquiry.
    A is not a bona fide resident of Y, because rental of a post office 
box is not a sufficient presence in Y to constitute residency.
    (xviii) A, a U.S. computer company, has a patent and trademark 
registered in the United States. In order to obtain registration of its 
patent and trademark in boycotting country Y, A is required to furnish 
certain non-discriminatory boycott information.
    A may not furnish the information, because A is not a bona fide 
resident of Y.

    (h) Activities exclusively within a foreign country. (1) Any United 
States person who is a bona fide resident of a foreign country, 
including a boycotting country, may comply or agree to comply with the 
laws of that country with respect to his activities exclusively within 
that country. These activities include:
    (i) Entering into contracts which provide that local law applies or 
governs, or that the parties will comply with such laws;
    (ii) Employing residents of the host country;
    (iii) Retaining local contractors to perform work within the host 
country;
    (iv) Purchasing or selling goods or services from or to residents of 
the host country; and
    (v) Furnishing information within the host country.
    (2) Activities exclusively within the country do not include 
importing goods or services from outside the host country, and, 
therefore, this part of the exception does not apply to compliance with 
import laws in connection with importing goods or services.

   Examples of Permissible Compliance With Local Law With Respect to 
             Activities Exclusively Within a Foreign Country

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with local law is permissible. 
They are illustrative, not comprehensive.

             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

[[Page 584]]

making any inquiry of B, A compiles and furnishes the information.
    A may comply with that requirement, because in compiling and 
furnishing the information within Y, based on its own knowledge, A is 
engaging in an activity exclusively within Y.
    (v) Same as (iv), except that in making its responses, A asks B to 
compile some of the information.
    A may not comply, because the gathering of the necessary information 
takes place partially outside Y.
    (vi) U.S. company A has applied for a license to establish a 
permanent manufacturing facility in boycotting country Y. Under Y's 
boycott law, A must agree, as a condition of the license, that it will 
not sell any of its output to blacklisted foreign firms.
    A may not comply, because the agreement would govern activities of A 
which are not exclusively within Y.

              Discrimination Against United States Persons

    (i) A, a subsidiary of U.S. company B, is a bona fide resident of 
boycotting country Y. A manufactures air conditioners in its plant in Y. 
Under Y's boycott laws, A must agree not to hire nationals of boycotted 
country X.
    A may agree to the restriction and may abide by it with respect to 
its recruitment of individuals within Y, because the recruitment of such 
individuals is an activity exclusively within Y. However, A cannot abide 
by this restriction with respect to its recruitment of individuals 
outside Y, because this is not an activity exclusively within Y.
    (ii) Same as (i), except that pursuant to Y's boycott laws, A must 
agree not to hire anyone who is of a designated religion.
    A may not agree to this restriction, because the agreement calls for 
discrimination against U.S. persons on the basis of religion. It makes 
no difference whether the recruitment of the U.S. persons occurs within 
or without Y.

    (Note: The exception for compliance with local law does not apply to 
boycott-based refusals to employ U.S. persons on the basis of race, 
religion, sex, or national origin even if the activity is exclusively 
within the boycotting country.)

    (i) Compliance with local import law. (1) Any United States person 
who is a bona fide resident of a foreign country, including a boycotting 
country, may, in importing goods, materials or components into that 
country, comply or agree to comply with the import laws of that country, 
provided that:
    (i) The items are for his own use or for his use in performing 
contractual services within that country; and
    (ii) In the normal course of business, the items are identifiable as 
to their source or origin at the time of their entry into the foreign 
country by:
    (a) Uniqueness of design or appearance; or
    (b) Trademark, trade name, or other identification normally on the 
items themselves, including their packaging.
    (2) The factors that will be considered in determining whether a 
United States person is a bona fide resident of a foreign country are 
those set forth in paragraph (g) of this section. Bona fide residence of 
a United States company's subsidiary, affiliate, or other permanent 
establishment in a foreign country does not confer such residence on 
such United States company. Likewise, bona fide residence of a United 
States company's employee in a foreign country does not confer such 
residence on the entire company.
    (3) A United States person who is a bona fide resident of a foreign 
country 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

[[Page 585]]

the time of importation into a foreign country.
    (6) Goods are for the United States person's own use (including the 
performance of contractual services within the foreign country) if:
    (i) They are to be consumed by the United States person;
    (ii) They are to remain in the United States person's possession and 
to be used by that person;
    (iii) They are to be used by the United States person in performing 
contractual services for another;
    (iv) They are to be further manufactured, incorporated into, refined 
into, or reprocessed into another product to be manufactured for 
another; or
    (v) They are to be incorporated into, or permanently affixed as a 
functional part of, a project to be constructed for another.
    (7) Goods acquired to fill an order for such goods from another are 
not for the United States person's own use. Goods procured for another 
are not for one's own use, even if the furnishing of procurement 
services is the business in which the United States person is 
customarily engaged. Nor are goods obtained for simple resale acquired 
for one's own use, even if the United States person is engaged in the 
retail business. Likewise, goods obtained for inclusion in a turnkey 
project are not for one's own use if they are not customarily 
incorporated into, or do not customarily become permanently affixed as a 
functional part of the project.
    (8) This part of the local law exception does not apply to the 
import of services, even when the United States person importing such 
services is a bona fide resident of a boycotting country and is 
importing them for his own use. In addition, this exception is available 
for a United States person who is a bona fide resident of a foreign 
country only when the individual or entity actually present within that 
country takes action through the exercise of his own discretion.
    (9) Use of this exception will be monitored and continually reviewed 
to determine whether its continued availability is consistent with the 
national interest. Its availability may be limited or withdrawn as 
appropriate. In reviewing the continued availability of this exception, 
the effect that the inability to comply with local import laws would 
have on the economic and other relations of the United States with 
boycotting countries will be considered.
    (10) A United States person who is a bona fide resident of a foreign 
country may comply or agree to comply with the host country's import 
laws even if he knows or has reason to know that particular laws are 
boycott-related. However, no United States person may comply or agree to 
comply with any host country law which would require him to discriminate 
against any United States person on the basis of race, religion, sex, or 
national origin, or to supply information about any United States 
person's race, religion, sex, or national origin.

        Examples of Permissible Compliance With Local Import Law

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with local import law is 
permissible. They are illustrative, not comprehensive.

                   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

[[Page 586]]

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, 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-

[[Page 587]]

blacklisted manufacturers. A likewise orders desks, office chairs, 
typewriters, and office supplies from non-blacklisted manufacturers.
    Because they are customarily incorporated into or permanently 
affixed as a functional part of an office building, the wallboard, 
office partitions, and lighting fixtures are for A's own use, and A may 
select non-blacklisted suppliers of these goods in order to comply with 
Y's import laws. Because they are not customarily incorporated into or 
permanently affixed to the project, the desks, office chairs, 
typewriters, and office supplies are not for A's own use, and A may not 
make boycott-based selections of the suppliers of these goods.
    (vii) A, a U.S. company engaged in the business of selling 
automobiles, is a bona fide resident of boycotting country Y. In 
ordering automobiles from time to time for purposes of stocking its 
inventory, A purchases from U.S. manufacturer B, but not U.S. 
manufacturer C, because C is blacklisted. Retail sales are subsequently 
made from this inventory.
    A's import of automobiles from B is not an import for A's own use, 
because the importation of items for general inventory in a retail sales 
operation is not an importation for one's own use.
    (viii) A, a U.S. company engaged in the manufacture of 
pharmaceutical products, is a bona fide resident of boycotting country 
Y. In importing chemicals for incorporation into the pharmaceutical 
products, A purchases from U.S. supplier B, but not U.S. supplier C, 
because C is blacklisted.
    A may import chemicals from B rather than C, because the importation 
of specifically identifiable items for incorporation into another 
product is an importation for one's own use.
    (ix) A, a U.S. management company which is a bona fide resident of 
boycotting country Y, has a contract with the Ministry of Education in Y 
to purchase supplies for Y's school system. From time to time, A 
purchases goods from abroad for delivery to various schools in Y.
    A's purchase of goods for Y's school system does not constitute an 
importation of goods for A's own use, because A is acting as a 
procurement agent for another. A, therefore, cannot make boycott-based 
selections of suppliers of such school supplies.
    (x) A, a U.S. company which is a bona fide resident of boycotting 
country Y, has a contract to make purchases for Y in connection with a 
construction project in Y. A is not engaged in the construction of, or 
in any other activity in connection with, the project. A's role is 
merely to purchase goods for Y and arrange for their delivery to Y.
    A is not purchasing goods for its own use, because A is acting as a 
procurement agent for Y. A, therefore, cannot make boycott selections of 
suppliers of such goods.
    (xi) A, a U.S. company which is a bona fide resident of boycotting 
country Y, imports specifically identifiable goods into Y for exhibit by 
A at a trade fair in Y. In selecting goods for exhibit, A excludes items 
made by blacklisted firms.
    A's import of goods for its exhibit at a trade fair constitutes an 
import for A's own use. However, A may not sell in Y those goods it 
imported for exhibit.
    (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; 73 
FR 68327, Nov. 18, 2008]



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 inSec. 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.

[[Page 588]]

    (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 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

[[Page 589]]

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 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

[[Page 590]]

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 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 underSec. 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 underSec. 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,

[[Page 591]]

exporters' guidebooks and other similar publications does not constitute 
receipt of a reportable request for purposes of this section. In 
addition, a United States person who receives an unsolicited invitation 
to bid, or similar proposal, containing a boycott request has not 
received a reportable request for purposes of this section where he does 
not respond to the invitation to bid or other proposal.
    (5) Because of the use of certain terms for boycott and non-boycott 
purposes; because of Congressional mandates to provide clear and precise 
guidelines in areas of inherent uncertainty; and because of the 
Department's commitment to minimize paperwork and reduce the cost of 
reporting where it will not impair the Department's ability to continue 
to monitor foreign boycotts, the following specific requests are not 
reportable:
    (i) A request to refrain from shipping goods on a carrier which 
flies the flag of a particular country or which is owned, chartered, 
leased or operated by a particular country or by nationals or residents 
of a particular country, or a request to certify to that effect.
    (ii) A request to ship goods via a prescribed route, or a request to 
refrain from shipping goods via a proscribed route, or a request to 
certify to either effect.
    (iii) A request to supply an affirmative statement or certification 
regarding the country of origin of goods.
    (iv) A request to supply an affirmative statement or certification 
regarding the name of the supplier or manufacturer of the goods shipped 
or the name of the provider of services.
    (v) A request to comply with the laws of another country except 
where the request expressly requires compliance with that country's 
boycott laws.
    (vi) A request to an individual to supply information about himself 
or a member of his family for immigration, passport, visa, or employment 
purposes.
    (vii) A request to supply an affirmative statement or certification 
indicating the destination of exports or confirming or otherwise 
indicating that such cargo will be unloaded or discharged at a 
particular destination.
    (viii) A request to supply a certificate by the owner, master, 
charterer, or any employee thereof, that a vessel, aircraft, truck or 
any other mode of transportation is eligible, otherwise eligible, 
permitted, or allowed to enter, or not restricted from entering, a 
particular port, country, or group of countries pursuant to the laws, 
rules, or regulations of that port, country, or group of countries.
    (ix) A request to supply a certificate from an insurance company 
stating that the insurance company has a duly authorized agent or 
representative within a boycotting country and/or the name and address 
of such agent.
    (x) A request to comply with a term or condition of a transaction 
that provides that the vendor bear the risk of loss and indemnify the 
purchaser if the vendor's goods are denied entry into a country for any 
reason (``risk of loss clause'') if such clause was in use by the 
purchaser prior to January 18, 1978.
    (6) No United States person may engage in any transaction or take 
any other action, either independently or through any other person, with 
intent to evade the provisions of this part.
    (7) From time to time the Department will survey domestic concerns 
for purposes of determining the worldwide scope of boycott requests 
received by their controlled foreign subsidiaries and affiliates with 
respect to their activities outside United States commerce. This 
pertains to requests which would be reportable under this section 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

[[Page 592]]

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 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

[[Page 593]]

and copying, except for certain proprietary information. With respect to 
reports of requests received on or after August 1, 1978, if the person 
making the report certifies that a United States person to whom the 
report relates would be placed at a competitive disadvantage because of 
the disclosure of information regarding the quantity, description, or 
value of any articles, materials, and supplies, including related 
technical data and other information, whether contained in a report or 
in any accompanying document(s), such information will not be publicly 
disclosed except upon failure by the reporting entity to edit the public 
inspection copy of the accompanying document(s) as provided by paragraph 
(c)(2) of this section, unless the Secretary of Commerce determines that 
the disclosure would not place the United States person involved at a 
competitive disadvantage or that it would be contrary to the national 
interest to withhold the information. In the event the Secretary of 
Commerce considers making such a determination concerning competitive 
disadvantage, appropriate notice and an opportunity for comment will be 
given before any such proprietary information is publicly disclosed. In 
no event will requests of reporting persons to withhold any information 
contained in the report other than that specified in this paragraph be 
honored.
    (2) Because a copy of any document(s) accompanying the report will 
be made available for public inspection and copying, one copy must be 
submitted intact and another copy must be edited by the reporting entity 
to delete the same information which it certified in the report would 
place a United States person at a competitive disadvantage if disclosed. 
In addition, the reporting entity may delete from this copy information 
that is considered confidential and that is not required to be contained 
in the report (e.g., information related to foreign consignee). This 
copy should be conspicuously marked with the legend ``Public Inspection 
Copy.'' With respect to documents accompanying reports received by the 
Department on or after July 1, 1979, the public inspection copy will be 
made available as submitted whether or not it has been appropriately 
edited by the reporting entity as provided by this paragraph.
    (3) Reports and accompanying documents which are available to the 
public for inspection and copying are located in the 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

[[Page 594]]

use subcontractor C on the project. A believes that C was chosen 
because, among other things, the other listed subcontractors are 
blacklisted.
    The instruction to A by its customer that C be used on the project 
is reportable, because it is a request to comply with Y's boycott 
requirements.
    (vi) A, a controlled foreign subsidiary of U.S. company B, is 
located in non-boycotting country P. A receives an order for washing 
machines from boycotting country Y. Y instructs A that a negative 
certificate of origin must accompany the shipment. The washing machines 
are made wholly in P, without U.S. components.
    Y's instruction to A regarding the negative certificate of origin is 
not reportable, because the transaction to which it relates is not in 
U.S. commerce.
    (vii) Same as (vi), except that A obtains components from the United 
States for the purpose of filling the order from Y. Y's instruction to A 
regarding the negative certificate of origin is reportable, because the 
transaction to which it relates is in U.S. commerce.
    (viii) A, a U.S. construction company, receives in the mail an 
unsolicited invitation to bid on a construction project in boycotting 
country Y. The invitation to bid requires those who respond to certify 
that they do not have any plants or branch offices in boycotted country 
X. A does not respond.
    A's receipt of the unsolicited invitation to bid is not reportable, 
because the request does not relate to any present or anticipated 
business of A with or in Y.
    (ix) Same as (viii), except that A receives a boycott questionnaire 
from a central boycott office. A does not do business in any of the 
boycotting countries involved, and does not anticipate doing any 
business in those countries. A does not respond.
    A's receipt of the boycott questionnaire is not reportable, because 
it does not relate to any present or anticipated business by A with or 
in a boycotting country.
    (x) A, a U.S. manufacturer, is seeking markets in which to expand 
its exports. A sends a representative to boycotting country Y to explore 
Y's potential as a market for A's products. A's representative discusses 
its products but does not enter into any contracts on that trip. A does, 
however, hope that sales will materialize in the future. Subsequently, A 
receives a boycott questionnaire from Y.
    A's receipt of the boycott questionnaire is reportable, because the 
request relates to A's anticipated business with or in a boycotting 
country. For purposes of determining whether a report is required, it 
makes no difference whether A responds to the questionnaire, and it 
makes no difference that actual sales contracts are not in existence or 
do not materialize.
    (xi) Same as (x), except that A's representative enters into a 
contract to sell A's products to a buyer in boycotting country Y. 
Subsequently, A receives a boycott questionnaire from Y.
    A's receipt of the boycott questionnaire is reportable, because it 
relates to A's present business with or in a boycotting country. For 
purposes of determining whether a report is required, it makes no 
difference whether A responds to the questionnaire.
    (xii) A, a U.S. freight forwarder, purchases an exporter's guidebook 
which includes the import requirements of boycotting country Y. The 
guidebook contains descriptions of actions which U.S. exporters must 
take in order to make delivery of goods to Y.
    A's acquisition of the guidebook is not reportable, because he has 
not received a request from anyone.
    (xiii) A, a U.S. freight forwarder, is arranging for the shipment of 
goods to boycotting country Y at the request of B, a U.S. exporter. B 
asks A to assume responsibility to assure that the documentation 
accompanying the shipment is in compliance with Y's import requirements. 
A examines an exporters' guidebook, determines that Y's import 
regulations require a certification that the insurer of the goods is not 
blacklisted and asks U.S. insurer C for such a certification.
    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

[[Page 595]]

that the certificate is supplied. A supplies a positive certificate of 
origin.
    The consular official's request to A is reportable by A, because A 
was asked to comply with Y's boycott requirements by supplying the 
negative certificate of origin.
    (xvii) A, a U.S. manufacturer, is shipping goods to boycotting 
country Y. Arrangements have been made for freight forwarder B to handle 
the shipment and secure all necessary shipping certifications. B notes 
that the letter of credit requires that the manufacturer supply a 
negative certificate of origin and B asks A to do so. A supplies a 
positive certificate of origin.
    B's request to A is reportable by A, because A is asked to comply 
with Y's boycott requirements by providing the negative certificate.
    (xviii) A, a controlled foreign subsidiary of U.S. company B, is a 
resident of boycotting country Y. A is engaged in oil exploration and 
drilling operations in Y. In placing orders for drilling equipment to be 
shipped from the United States, A, in compliance with Y's laws, selects 
only those suppliers who are not blacklisted.
    A's action in choosing non-blacklisted suppliers is not reportable, 
because A has not received a request to comply with Y's boycott in 
making these selections.
    (xix) A, a controlled foreign subsidiary of U.S. company B, is 
seeking permission to do business in boycotting country Y. Before being 
granted such permission, A is asked to sign an agreement to comply with 
Y's boycott laws.
    The request to A is reportable, because it is a request that 
expressly requires compliance with Y's boycott law and is received in 
connection with A's anticipated business in Y.
    (xx) A, a U.S. bank, is asked by a firm in boycotting country Y to 
confirm a letter of credit in favor of B, a U.S. company. The letter of 
credit calls for a certificate from B that the goods to be supplied are 
not produced by a firm blacklisted by Y. A informs B of the letter of 
credit, including its certification condition, and sends B a copy.
    B must report the certification request contained in the letter of 
credit, and A must report the request to confirm the letter of credit 
containing the boycott condition, because both are being asked to comply 
with Y's boycott.
    (xxi) Same as (xx), except that the letter of credit calls for a 
certificate from the beneficiary that the goods will not be shipped on a 
vessel that will call at a port in boycotted country X before making 
delivery in Y.
    The request is not reportable, because it is a request of a type 
deemed by this section to be in common use for non-boycott purposes.
    (xxii) A, a U.S. company, receives a letter of credit from 
boycotting country Y stating that on no condition may a bank blacklisted 
by Y be permitted to negotiate the credit.
    A's receipt of the letter of credit is reportable, because it 
contains a request to A to comply with Y's boycott requirements.
    (xxiii) A, a U.S. bank, receives a demand draft from B, a U.S. 
company, in connection with B's shipment of goods to boycotting country 
Y. The draft contains a directive that it is valid in all countries 
except boycotted country X.
    A's receipt of the demand draft is reportable, because it contains a 
request to A to comply with Y's boycott requirements.
    (xxiv) A, a U.S. exporter, receives an order from boycotting country 
Y. On the order is a legend that A's goods, invoices, and packaging must 
not bear a six-pointed star or other symbol of boycotted country X.
    A's receipt of the order is reportable, because it contains a 
request to comply with Y's boycott requirements.
    (xxv) Same as (xxiv), except the order contains a statement that 
goods exported must not represent part of war reparations to boycotted 
country X.
    A's receipt of the order is reportable, because it contains a 
request to A to comply with Y's boycott requirements.
    (xxvi) A, a U.S. contractor, is negotiating with boycotting country 
Y to build a school in Y. During the course of the negotiations, 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

[[Page 596]]

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.
    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]



           Sec. 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:

[[Page 597]]

    (i) With or in a boycotted country;
    (ii) With any business concern organized under the laws of a 
boycotted country;
    (iii) With any national or resident of a boycotted country; or
    (iv) With any other person who is known or believed to be restricted 
from having any business relationship with or in a boycotting country.''
    This prohibition, like all others under part 760, applies only with 
respect to a U.S. person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott. (Sec.  760.2(d)(5) of this part.)
    This prohibition does not apply to the furnishing of normal business 
information in a commercial context. (Sec.  760.2(d)(3) of this part). 
Normal business information furnished in a commercial context does not 
cease to be such simply because the party soliciting the information may 
be a boycotting country or a national or resident thereof. If the 
information is of a type which is generally sought for a legitimate 
business purpose (such as determining financial fitness, technical 
competence, or professional experience), the information may be 
furnished even if the information could be used, or without the 
knowledge of the person supplying the information is intended to be 
used, for boycott purposes. (Sec.  760.2(d)(4) of this part).
    The new certification requirements and the Department's 
interpretation of the applicability of part 760 thereto are as follows:
    A. Certificate of origin. A certificate of origin is to be issued by 
the supplier or exporting company and authenticated by the exporting 
country, attesting that the goods exported to the boycotting country are 
of purely indigenous origin, and stating the name of the factory or the 
manufacturing company. To the extent that the goods as described on the 
certificate of origin are not solely and exclusively products of their 
country of origin indicated thereon, a declaration must be appended to 
the certificate of origin giving the name of the supplier/manufacturer 
and declaring:
    ``The undersigned, ------------, does hereby declare on behalf of 
the above-named supplier/manufacturer, that certain parts or components 
of the goods described in the attached certificate of origin are the 
products of such country or countries, other than the country named 
therein as specifically indicated hereunder:

    Country of Origin and Percentage of Value of Parts or Components 
                       Relative to Total Shipment

1.______________________________________________________________________
2.______________________________________________________________________
3.______________________________________________________________________
Dated:__________________________________________________________________
Signature_______________________________________________________________
    Sworn to before me, this -------- day of ------------, 19 ----. 
Notary Seal.''

                             Interpretation

    It is the Department's position that furnishing a positive 
certificate of origin, such as the one set out above, falls within the 
exception contained inSec. 760.3(c) of this part for compliance with 
the import and shipping document requirements of a boycotting country. 
SeeSec. 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 inSec. 760.3(c) for compliance with the import and shipping 
document requirements of a boycotting country. SeeSec. 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. SeeSec. 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. SeeSec. 760.3(c) examples 
(vi), (xi), and (xii). Where a person other than the

[[Page 598]]

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 inSec. 
760.2(d) unless it is clear from all the facts and circumstances that 
the certification is not required for a boycott reason. SeeSec. 
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 inSec. 760.3(c) 
for compliance with the import and shipping document requirements of a 
boycotting country. SeeSec. 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 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. SeeSec. 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. SeeSec. 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 inSec. 760.2(d) unless it 
is clear from all the facts and circumstances that the certification is 
not required for a boycott reason. SeeSec. 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. SeeSec. 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. SeeSec. 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 inSec. 760.3(a)

[[Page 599]]

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. SeeSec. 
760.3(c) and examples (i) and (ii) thereunder, andSec. 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 inSec. 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 inSec. 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 inSec. 760.3(d) of this part must be observed.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34948, June 1, 2000]



            Sec. 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.'' SeeSec. 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 violatingSec. 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. SeeSec. 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 inSec. 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

[[Page 600]]

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]



            Sec. Supplement No. 3 to Part 760--Interpretation

    Pursuant to Article 2, Annex II of the Peace Treaty between Egypt 
and Israel, Egypt's participation in the Arab economic boycott of Israel 
was formally terminated on January 25, 1980. On the basis of this 
action, it is the Department's position that certain requests for 
information, action or agreement which were considered boycott-related 
by implication now cannot be presumed boycott-related and thus would not 
be prohibited or reportable under the Regulations. For example, a 
request that an exporter certify that the vessel on which it is shipping 
its goods is eligible to enter Arab Republic of Egypt ports has been 
considered a boycott-related request that the exporter could not comply 
with because Egypt has a boycott in force against Israel (see 43 FR 
16969, April 21, 1978 or the 15 CFR edition revised as of January 1, 
1979). Such a request after January 25, 1980 would not be presumed 
boycott-related because the underlying boycott requirement/basis for the 
certification has been eliminated. Similarly, a U.S. company would not 
be prohibited from complying with a request received from Egyptian 
government officials to furnish the place of birth of employees the 
company is seeking to take to Egypt, because there is no underlying 
boycott law or policy that would give rise to a presumption that the 
request was boycott-related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to the 
Regulations, irrespective of the country or origin. For example, 
requests containing references to ``blacklisted companies'', ``Israel 
boycott list'', ``non-Israeli goods'' or other phrases or words 
indicating boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations.



            Sec. 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.

[[Page 601]]

    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]



            Sec. Supplement No. 5 to Part 760--Interpretation

                A. Permissible Furnishing of Information

    The information outlined below may be furnished in response to 
boycott-related requests from boycotting countries or others. This 
information is, in the view of the Department, not prohibited by the 
Regulations. Thus, a person does not have to qualify under any of the 
exceptions to be able to make the following statements. Such statements 
can be made, however, only by the person indicated and under the 
circumstances described. These statements should not be used as a point 
of departure or analogy for determining the permissibility of other 
types of statements. The Department's view that these statements are not 
contrary to the prohibitions contained in antiboycott provisions of the 
Regulations is limited to the specific statement in the specific context 
indicated.
    1. A U.S. person may always provide its own name, address, place of 
incorporation (``nationality''), and nature of business.
    2. A U.S. person may state that it is not on a blacklist, or 
restricted from doing business in a boycotting country. A company may 
not make that statement about its subsidiaries or affiliates--only about 
itself. A U.S. person may not say that there is no reason for it to be 
blacklisted. To make that statement would provide directly or by 
implication information that may not be provided. A U.S. person may 
inquire about the reasons it is blacklisted if it learns that it is on a 
blacklist (seeSec. 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.

[[Page 602]]

    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]



            Sec. Supplement No. 6 to Part 760--Interpretation

    The antiboycott regulations prohibit knowing agreements to comply 
with certain prohibited requests and requirements of boycotting 
countries, regardless of how these terms are stated. Similarly, the 
reporting rules require that a boycott related ``solicitation, 
directive, legend or instruction that asks for information or that asks 
that a United States person take or refrain from taking a particular 
action'' be reported. Questions have frequently arisen about how 
particular requirements in the form of directive or instructions are 
viewed under the antiboycott regulations, and we believe that it will 
add clarity to the regulations to provide a written interpretation of 
how three of these terms are treated under the law. The terms in 
question appear frequently in letters of credit, but may also be found 
on purchase orders or other shipping or sale documents. They have been 
brought to the attention of the Department by numerous persons. The 
terms are, or are similar to, the following: (1) Goods of boycotted 
country origin are prohibited; (2) No six-pointed stars may be used on 
the goods, packing or cases; (3) Neither goods nor packing shall bear 
any symbols prohibited in the boycotting country.
    (a) Goods of boycotted country origin prohibited. This term is very 
common in letters of credit from Kuwait and may also appear from time-
to-time in invitations to bid, contracts, or other trade documents. It 
imposes a condition or requirement compliance with which is prohibited, 
but permitted by an exception under the Regulations (seeSec. 760.2(a) 
andSec. 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. SeeSec. 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. SeeSec. 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. SeeSec. 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

[[Page 603]]

with that nation's cultural and religious beliefs. On this basis, we do 
not interpret the term to be boycott related. SeeSec. 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]



            Sec. 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 violatingSec. 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 underSec. 760.2(a) of this part. The 
Department will presume that filling such an order with alternative 
goods is evidence of the person's refusal to deal with the original 
supplier.
    The Department recognizes the limitations this places on future 
transactions with a boycotting country once a shipment of goods has been 
rejected. Because of this, the Department wishes to point out that, when 
faced with a boycotting country's refusal to permit entry of the 
particular goods, a United States person may state its obligation to 
abide by the requirements of United States law and indicate its 
readiness to comply with the unilateral and specific selection of goods 
by the boycotting country in accordance withSec. 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 United States person may also provide certain services in 
advance of the unilateral selection by the boycotting country, such as 
the compilation of lists of qualified suppliers, so long as such 
services are customary to the type of business the United States person 
is engaged in, and the services rendered are completely non-exclusionary 
in character (i.e., the list of qualified suppliers would have to 
include the supplier whose goods had previously been rejected by the 
boycotting country, if they were fully qualified). SeeSec. 760.2(a)(6) 
of this part for a discussion of the requirements for the provision of 
these services.
    The Department wishes to emphasize that the unilateral selection 
exception inSec. 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 bySec. 760.4 of this part, 
unless adopted prior to January 18, 1978. SeeSec. 760.4(d) of this 
part.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34949, June 1, 2000]



            Sec. 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,

[[Page 604]]

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. SeeSec. 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 ofSec. 760.4 of this part.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]



            Sec. Supplement No. 9 to Part 760--Interpretation

     Activities Exclusively Within a Boycotting Country--Furnishing 
                               Information

   Sec. 760.3(h) of this part provides that a United States person who 
is a bona fide resident of a boycotting country may comply with the laws 
of that country with respect to his or her activities exclusively within 
the boycotting country. Among the types of conduct permitted by this 
exception is ``furnishing information within the host country''Sec. 
760.3(h)(1)(v) of this part. For purposes of the discussion which 
follows, the Department is assuming that the person in question is a 
bona fide resident of the boycotting country as defined inSec. 
760.3(g), and that the information to be provided is required by the 
laws or regulations of the boycotting country, as also defined inSec. 
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. SeeSec. 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

[[Page 605]]

exception is somewhat easier, since it is relatively simple to determine 
if the information is to be given to somebody within the country.
    Note that in discussing what constitutes furnishing information 
``exclusively within'' the boycotting country, the Department does not 
address the nature of the transaction or activity that the information 
relates to. It is the Department's position that the nature of the 
transaction, including the inception or completion of the transaction, 
is not material in analyzing the availability of this exception.
    For example, if a shipment of goods imported into a boycotting 
country is held up at the time of entry, and information from the bona 
fide resident within that country is legally required to free those 
goods, the fact that the information may relate to a transaction that 
began outside the boycotting country is not material. The availability 
of the exception will be judged based on the activity of the bona fide 
resident within the country. If the resident provides that information 
of his or her own knowledge, and provides it to appropriate parties 
located exclusively within the country, the exception permits the 
information to be furnished.
    Factual variations may raise questions about the application of this 
exception and the effect of this interpretation. In an effort to 
anticipate some of these, the Department has set forth below a number of 
questions and answers. They are incorporated as a part of this 
interpretation.
    1. Q. Under this exception, can a company which is a U.S. person and 
a bona fide resident of the boycotting country provide information to 
the local boycott office?
    A. Yes, if local law requires the company to provide this 
information to the boycott office and all the other requirements are 
met.
    2. Q. If the company knows that the local boycott office will 
forward the information to the Central Boycott Office, may it still 
provide the information to the local boycott office?
    A. Yes, if it is required by local law to furnish the information to 
the local boycott office and all the other requirements are met. The 
company has no control over what happens to the information after it is 
provided to the proper authorities. (There is obvious potential for 
evasion here, and the Department will examine such occurrences closely.)
    3. Q. Can a U.S. person who is a bona fide resident of Syria furnish 
information to the Central Boycott Office in Damascus?
    A. No, unless the law in Syria specifically requires information to 
be provided to the Central Boycott Office the exception will not apply. 
Syria has a local boycott office responsible for enforcing the boycott 
in that country.
    4. Q. If a company which is a U.S. person and a bona fide resident 
of the boycotting country has an import shipment held up in customs of 
the boycotting country, and is required to provide information about the 
shipment to get it out of customs, may the company do so?
    A. Yes, assuming all other requirements are met. The act of 
furnishing the information is the activity taking place exclusively 
within the boycotting country. The fact that the information is provided 
corollary to a transaction that originates or terminates outside the 
boycotting country is not material.
    5. Q. If the U.S. person and bona fide resident of the boycotting 
country is shipping goods out of the boycotting country, and is required 
to certify to customs officials of the country at the time of export 
that the goods are not of Israeli origin, may he do so even though the 
certification relates to an export transaction?
    A. Yes, assuming all other requirements are met. See number 4 above.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]



           Sec. 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 inSec. 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 
reportableSec. 760.5(a)(5)(iii) of this part.
    (c) Legalization of documents by any Arab consulate except Egyptian 
Consulate permitted.

[[Page 606]]

    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]



           Sec. Supplement No. 11 to Part 760--Interpretation

               Definition of Unsolicited Invitation To Bid

   Sec. 760.5(a)(4) of this part states in part:
    ``In addition, a United States person who receives an unsolicited 
invitation to bid, or similar proposal, containing a boycott request has 
not received a reportable request for purposes of this section where he 
does not respond to the invitation to bid or other proposal.''
    The Regulations do not define ``unsolicited'' in this context. Based 
on review of numerous situations, the Department has developed certain 
criteria that it applies in determining if an invitation to bid or other 
proposal received by a U.S. person is in fact unsolicited.
    The invitation is not unsolicited if, during a commercially 
reasonable period of time preceding the issuance of the invitation, a 
representative of the U.S. person contacted the company or agency 
involved for the purpose of promoting business on behalf of the company.
    The invitation is not unsolicited if the U.S. person has advertised 
the product or line of products that are the subject of the invitation 
in periodicals or publications that ordinarily circulate to the country 
issuing the invitation during a commercially reasonable period of time 
preceding the issuance of the invitation.
    The invitation is not unsolicited if the U.S. person has sold the 
same or similar products to the company or agency issuing the invitation 
within a commercially reasonable period of time before the issuance of 
the current invitation.
    The invitation is not unsolicited if the U.S. person has 
participated in a trade mission to or trade fair in the country issuing 
the invitation within a commercially reasonable period of time before 
the issuance of the invitation.
    UnderSec. 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]



           Sec. Supplement No. 12 to Part 760--Interpretation

    The Department has taken the position that a U.S. person as defined 
bySec. 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 
toSec. 760.2(d) of this part.
    Example (v) underSec. 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:

[[Page 607]]

    ``Declaration: I, the undersigned, hereby declare, in my capacity as 
(blank) that (name and address of foreign principal) is not presently on 
the blacklist of the Office for the Boycott of Israel and that it and 
all its branches, if any, are bound by the decisions issued by the 
Boycott Office and do not (1) participate in the capital of, (2) license 
the manufacture of any products or grant trademarks or tradeware license 
to, (3) give experience or technical advice to, or (4) have any other 
relationship with other companies which are prohibited to be dealt with 
by the Boycott Office. Signed (name of commercial agent/representative/
distributor).''
    It is the Department's view that under the circumstances 
specifically outlined in this interpretation relating to the nature of 
the requirement, a U.S. person will not be held responsible for a 
violation of this part when such statements are provided by its 
commercial agent or representative, even when such statements are made 
with the full knowledge of the U.S. person.
    Nature of the requirement. For a boycott-related commercial 
registration requirement to fall within the coverage of this 
interpretation it must have the following characteristics:
    1. The requirement for information imposed by the boycotting country 
applies to a national or other subject of the boycotting country 
qualified under the local laws of that country to function as a 
commercial representative within that country;
    2. The registration requirement relates to the registration of the 
commercial agent's or representative's authority to sell or distribute 
goods within the boycotting country acquired from the foreign concern;
    3. The requirement is a routine part of the registration process and 
is not applied selectively based on boycott-related criteria;
    4. The requirement applies only to a commercial agent or 
representative in the boycotting country and does not apply to the 
foreign concern itself; and
    5. The requirement is imposed by the agency of the boycotting 
country responsible for regulating commercial agencies.
    The U.S. person whose agent is complying with the registration 
requirement continues to be subject to all the terms of the Regulations, 
and may not provide any prohibited information to the agent for purposes 
of the agent's compliance with the requirement.
    In addition, the authority granted to the commercial agent or 
representative by the U.S. person must be consistent with standard 
commercial practices and not involve any grants of authority beyond 
those incidental to the commercial sales and distributorship 
responsibilities of the agent.
    Because the requirement does not apply to the U.S. person, no 
reporting obligation underSec. 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]



           Sec. 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 inSec. 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. SeeSec. 
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. SeeSec. 
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

[[Page 608]]

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 ofSec. 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 
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 inSec. 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 
outsideSec. 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 ofSec. 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

[[Page 609]]

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 ofSec. 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 
violateSec. 760.2(a) of this part.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]



           Sec. 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, underSec. 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. SeeSec. 
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 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 
bySec. 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 underSec. 
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. (SeeSec. 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

[[Page 610]]

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. UnderSec. 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. SeeSec. 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. SeeSec. 760.1(d)(8) of this part.
    Where the furnishing of information is not itself in U.S. commerce, 
the U.S. commerce requirement may be satisfied by the fact that the 
furnishing is related to an activity in U.S. foreign or domestic 
commerce. For example, if a shipment of goods by a controlled-in-fact 
foreign subsidiary of a U.S. company to a boycotting country gives rise 
to an inquiry from the boycotting country concerning the subsidiary's 
relationship with another firm, the Department regards any responsive 
furnishing of information by the subsidiary as related to the shipment 
giving rise to the inquiry. If the shipment is in U.S. foreign or 
domestic commerce, as defined by the regulations, then the Department 
regards the furnishing to be related to an activity in U.S. commerce and 
subject to the antiboycott regulations, whether or not the furnishing 
itself is in U.S. commerce.
    In some circumstances, the Department may regard a furnishing of 
information as related to a broader category of present and prospective 
transactions. For example, if a controlled-in-fact foreign subsidiary of 
a U.S. company is requested to furnish information about its commercial 
dealings and it appears that failure to respond will result in its 
blacklisting, any responsive furnishing of information will be regarded 
by the Department as relating to all of the subsidiary's present and 
anticipated business activities with the inquiring boycotting country. 
Accordingly, if any of these present or anticipated business activities 
are in U.S. commerce, the Department will regard the furnishing as 
related to an activity in U.S. commerce and subject to the antiboycott 
regulations.
    In deciding whether anticipated business activities will be in U.S. 
commerce, the Department will consider all of the surrounding 
circumstances. Particular attention will be given to the history of the 
U.S. person's business activities with the boycotting country and 
others, the nature of any activities occurring after a furnishing of 
information occurs and any relevant economic or commercial factors which 
may affect these activities.
    For example, if a U.S. person has no activities with the boycotting 
country at present but all of its other international activities are in 
U.S. commerce, as defined by the Regulations, then the Department is 
likely to regard any furnishing of information by that person for the 
purpose of securing entry into the boycotting country's market as 
relating to anticipated activities in U.S. commerce and subject to the 
antiboycott regulations. Similarly, if subsequent to the furnishing of 
information to the boycotting country for the purpose of securing entry 
into its markets, the U.S. person engages in transactions 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]



           Sec. 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,

[[Page 611]]

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 ofSec. 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), andSec. 760.3(f) 
of this part, example (vi)) show that, in certain cases, when furnishing 
certain information is permissible, either because it is not within a 
prohibition or is excepted from a prohibition, transmitting it is also 
permissible. These examples concern information that may be furnished by 
individuals about themselves or their families. The examples show that 
employers may transmit to a boycotting country visa applications or 
forms containing information about an employee's race, religion, sex, or 
national origin if that employee is the source of the information and 
authorizes its transmission. In other words, within the limits of 
ministerial action set forth in these examples, employees' actions in 
transmitting information are protected by the exception available to the 
employee. The distinction between permissible and prohibited behavior 
rests not on the definitional distinction between furnishing and 
transmitting, but on the excepted nature of the information furnished by 
the employee. The information originating from the employee does not 
lose its excepted character because it is transmitted by the employer.
    The Department's position regarding the furnishing and transmission 
of certificates of one's own blacklist status rests on a similar basis 
and does not support the contention that third parties may transmit 
prohibited information authored by another. Such self-certifications do 
not violate any prohibitions in the EAR (see Supplement Nos. 1(I)(B), 2, 
and 5(A)(2);Sec. 760.2(f), example (xiv)). It is the Department's 
position that it is not prohibited for U.S. persons to transmit such 
self-certifications completed by others. Once again, because furnishing 
the self-certification is not prohibited, third parties who transmit the 
self-certifications offend no prohibition. On the other hand, if a third 
party authored information about another's blacklist status, the act of 
transmitting that information would be prohibited.
    A third example in the EAR (Sec.  760.5, example (xiv) of this 
part), which also concerns a permissible transmission of boycott-related 
information, does not support the theory that one may transmit 
prohibited information authored by another. This example deals with the 
reporting requirements inSec. 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

[[Page 612]]

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.



           Sec. Supplement No. 16 to Part 760--Interpretation

    Pursuant to Articles 5, 7, and 26 of the Treaty of Peace between the 
State of Israel and the Hashemite Kingdom of Jordan and implementing 
legislation enacted by Jordan, Jordan's participation in the Arab 
economic boycott of Israel was formally terminated on August 16, 1995.
    On the basis of this action, it is the Department's position that 
certain requests for information, action or agreement from Jordan which 
were considered boycott-related by implication now cannot be presumed 
boycott-related and thus would not be prohibited or reportable under the 
regulations. For example, a request that an exporter certify that the 
vessel on which it is shipping its goods is eligible to enter Hashemite 
Kingdom of Jordan ports has been considered a boycott-related request 
that the exporter could not comply with because Jordan has had a boycott 
in force against Israel. Such a request from Jordan after August 16, 
1995 would not be presumed boycott-related because the underlying 
boycott requirement/basis for the certification has been eliminated. 
Similarly, a U.S. company would not be prohibited from complying with a 
request received from Jordanian government officials to furnish the 
place of birth of employees the company is seeking to take to Jordan 
because there is no underlying boycott law or policy that would give 
rise to a presumption that the request was boycott-related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to the 
regulations, irrespective of the country of origin. For example, 
requests containing references to ``blacklisted companies'', ``Israel 
boycott list'', ``non-Israeli goods'' or other phrases or words 
indicating boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations.



PART 762_RECORDKEEPING--Table of Contents



Sec.
762.1 Scope.
762.2 Records to be retained.
762.3 Records exempt from recordkeeping requirements.
762.4 Original records required.
762.5 Reproduction of original records.
762.6 Period of retention.
762.7 Producing and inspecting records.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 
2012, 77 FR 49699 (August 16, 2012).

    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. 736.2(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

[[Page 613]]

maintain records under any provision of the EAR, shall keep and maintain 
all records described inSec. 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.

[61 FR 12900, Mar. 25, 1996, as amended at 70 FR 22249, Apr. 29, 2005]



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, 
except parties submitting documents electronically to BIS via the SNAP-R 
system are not required to retain copies of documents so submitted;
    (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;
    (10) Notification from BIS of an application being returned without 
action; notification by BIS of an application being denied; notification 
by BIS of the results of a commodity classification or encryption review 
request conducted by BIS; and,
    (11) Other records pertaining to the types of transactions described 
inSec. 762.1(a) of this part, which are made or obtained by a person 
described inSec. 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. 743.2, High Performance Computers;
    (7) Supplement No. 3 to part 742 High Performance Computers, 
Safeguards and Related Information;
    (8) [Reserved]
    (9)Sec. 740.7, Humanitarian donations (NEED);
    (10)Sec. 746.3 Iraq.
    (11) Part 747, Special Iraq Reconstruction License.
    (12)Sec. 748.4(a), Disclosure and substantiation of facts on 
license applications;
    (13)Sec. 748.6, General instructions for license applications;
    (14)Sec. 748.9, Support documents for license applications;
    (15)Sec. 748.10, Import and End-user Certificates;
    (16)Sec. 748.11, Statement by Ultimate Consignee and Purchaser;
    (17)Sec. 748.13, Delivery Verification (DV);
    (18)Sec. 748.2(c), Obtaining forms; mailing addresses;
    (19)Sec. 750.7, Issuance of license and acknowledgment of 
conditions;
    (20)Sec. 750.8, Revocation or suspension of license;
    (21)Sec. 750.9, Duplicate licenses;
    (22)Sec. 750.10, Transfer of licenses for export;
    (23)Sec. 752.7, Direct shipment to customers;
    (24)Sec. 752.9, Action on SCL applications;
    (25)Sec. 752.10, Changes to the SCL;
    (26)Sec. 752.11, Internal Control Programs;
    (27)Sec. 752.12, Recordkeeping requirements;
    (28)Sec. 752.13, Inspection of records;
    (29)Sec. 752.14, System reviews;
    (30)Sec. 752.15, Export clearance;
    (31)Sec. 754.2(j)(3), Recordkeeping requirements for deep water 
ballast exchange.
    (32)Sec. 754.4, Unprocessed western red cedar;
    (33)Sec. 758.1(h), Record and proof of agent's authority;
    (34)Sec. 758.1 andSec. 758.2, Shipper's Export Declaration or 
Automated Export System record;
    (35)Sec. 758.6, Destination control statements;
    (36)Sec. 760.6, Restrictive Trade Practices and Boycotts;
    (37)Sec. 762.2, Records to be retained;
    (38)Sec. 764.2, Violations;
    (39)Sec. 764.5, Voluntary self-disclosure; and

[[Page 614]]

    (40)Sec. 766.10, Subpoenas;
    (41)Sec. 743.1, Wassenaar reports;
    (42)Sec. 748.14, Exports of firearms;
    (43)Sec. 745.1, Annual reports;
    (44)Sec. 745.2, End-use certificates;
    (45)Sec. 758.2(c), Assumption writing; and
    (46)Sec. 734.4(g), de minimis calculation (method).
    (c) Special recordkeeping requirement--(1) Libya. Persons in receipt 
of a specific license granted by the Department of the Treasury's Office 
of Foreign Assets Control (OFAC) for the export to Libya of any item 
subject to the EAR must maintain a record of those items transferred to 
Libya pursuant to such specific license and record when the items are 
consumed or destroyed in the normal course of their use in Libya, 
reexported to a third country not requiring further authorization from 
BIS, or returned to the United States. This requirement applies only to 
items subject to a license requirement under the EAR for export to Libya 
as of April 29, 2004. These records must include the following 
information:
    (i) Date of export or reexport and related details (including means 
of transport);
    (ii) Description of items (including ECCN) and value of items in 
U.S. Dollars;
    (iii) Description of proposed end-use and locations in Libya where 
items are intended to be used;
    (iv) Parties other than specific OFAC licensee who may be given 
temporary access to the items; and
    (v) Date of consumption or destruction, if the items are consumed or 
destroyed in the normal course of their use in Libya, or the date of 
reexport to a third country not requiring further authorization from 
BIS, or return to the United States.
    (2) [Reserved]

[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; 69 FR 
23638, Apr. 29, 2004; 69 FR 46080, July 30, 2004; 71 FR 20887, Apr. 24, 
2006; 73 FR 56970, Oct. 1, 2008; 73 FR 57510, Oct. 3, 2008; 75 FR 17054, 
Apr. 5, 2010]



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 615]]

them unless that person meets all of the conditions ofSec. 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. With respect to documents that 
BIS issues to a party in SNAP-R, either an electronically stored copy in 
a format that makes the document readable with software possessed by 
that party or a paper print out of the complete document is deemed to be 
an original record for purposes of this section.

[61 FR 12900, Mar. 25, 1996, as amended at 75 FR 17055, Apr. 5, 2010]



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 bySec. 762.2 of this 
part, the regulated persons defined inSec. 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;

[[Page 616]]

    (2) Any country(ies) connected with the transaction; or
    (3) A document reference number that was on any original document.
    (d) Requirements applicable to a system based on photographic 
processes. For systems based on photographic, photostatic, or miniature 
photographic processes, the regulated person must maintain a detailed 
index of all records in the system that is arranged in such a manner as 
to allow immediate location of any particular record in the system.



Sec.  762.6  Period of retention.

    (a) Five year retention period. All records required to be kept by 
the EAR must be retained for five years from the latest of the following 
times:
    (1) The export from the United States of the item involved in the 
transaction to which the records pertain or the provision of financing, 
transporting or other service for or on behalf of end-users of 
proliferation concern as described in 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 withSec. 
764.5(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.

[61 FR 12900, Mar. 25, 1996, as amended at 72 FR 3946, Jan. 29, 2007]

    Editorial Note: The following amendment could not be incorporated 
intoSec. 762.6 because of an inaccurate amendatory instruction:

    At 72 FR 43532, Aug. 6, 2007,Sec. 762.6(b) is amended by removing 
the citation ``Sec.  765.5(c)(4)(ii)'' and adding ``Sec.  
764.5(c)(4)(ii)'' in its place.



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]

[[Page 617]]



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.
764.7 Activities involving items that may have been illegally exported 
          or reexported to Libya.
764.8 Voluntary self-disclosures for boycott violations.

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 15, 
2012, 77 FR 49699 (August 16, 2012).

    Source: 61 FR 12902, Mar. 25, 1996, unless otherwise noted.



Sec.  764.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. This part specifies conduct that constitutes a 
violation of the Export Administration Act (EAA) and/or the Export 
Administration Regulations (EAR) and the sanctions that may be imposed 
for such violations. Antiboycott violations are described in part 760 of 
the EAR, and the violations and sanctions specified in part 764 also 
apply to conduct relating to part 760, unless otherwise stated. This 
part describes administrative sanctions that may be imposed by the 
Bureau of 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

[[Page 618]]

    (ii) In connection with the preparation, submission, issuance, use, 
or maintenance of any export control document as defined inSec. 772.1, 
or any report filed or required to be filed pursuant toSec. 760.5 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 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. SeeSec. 
764.3(a)(2) of this part.

[61 FR 12902, Mar. 25, 1996, as amended at 62 FR 25469, May 9, 1997; 70 
FR 8250, Feb. 18, 2005]



Sec.  764.3  Sanctions.

    (a) Administrative. 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 inSec. 764.6 of this part 
are distinct from administrative sanctions.
    (1) Civil penalty. (i) A civil monetary penalty not to exceed the 
amount set forth in the EAA may be imposed for each violation, and in 
the event that any provision of the EAR is continued by IEEPA or any 
other authority, the maximum monetary civil penalty for each violation 
shall be that provided by such other authority.
    (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 inSec. 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

[[Page 619]]

Office of Exporter Services after consultation with the Office of Export 
Enforcement upon a written request by a person named in the denial order 
or by a person seeking permission to deal with a named person. Submit 
such requests to: Bureau of Industry and Security, Office of Exporter 
Services, Room H 2705, U.S. Department of Commerce, 14th Street and 
Pennsylvania Ave., NW., Washington, DC 20230.
    (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.\1\ (1) General. Except as provided in paragraph (b)(2) 
of this section, whoever knowingly violates or 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.
---------------------------------------------------------------------------

    \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 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 inSec. 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

[[Page 620]]

violation, may also be prosecuted under other provisions of law, 
including 18 U.S.C. 371 (conspiracy), 18 U.S.C. 1001 (false statements), 
18 U.S.C. 1341, 1343, and 1346 (mail and wire fraud), and 18 U.S.C. 1956 
and 1957 (money laundering).
    (c) Other sanctions. Conduct that violates the EAA, the EAR, or any 
order, license or authorization issued thereunder, and other conduct 
specified in the EAA may be subject to sanctions or other measures in 
addition to criminal and administrative sanctions under the EAA or EAR. 
These include, but are not limited to, the following:
    (1) Statutory sanctions. Statutorily-mandated sanctions may be 
imposed on account of specified conduct related to weapons 
proliferation. Such statutory sanctions are not civil or criminal 
penalties, but restrict imports and procurement (See section 11A of the 
EAA, Multilateral Export Control Violations, and section 11C of the EAA, 
Chemical and Biological Weapons Proliferation), or restrict export 
licenses (See section 11B of the EAA, Missile Proliferation Violations, 
and the Iran-Iraq Arms Non-Proliferation Act of 1992).
    (2) Other sanctions and measures--(i) Seizure and forfeiture. Items 
that have been, are being, or are intended to be, exported or shipped 
from or taken out of the United States in violation of the EAA, the EAR, 
or any order, license or authorization issued thereunder, are subject to 
being seized and detained as are the vessels, vehicles, and aircraft 
carrying such items. Seized items are subject to forfeiture. (50 U.S.C. 
app. 2411(g); 22 U.S.C. 401.)
    (ii) Cross-debarment. (A) The Department of State may deny licenses 
or approvals for the export or reexport of defense articles and defense 
services controlled under the Arms Export Control Act to persons 
indicted or convicted of specified criminal offenses, including 
violations of the EAA, or to persons denied export privileges by 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; 71 
FR 44190, Aug. 4, 2006; 73 FR 75945, Dec. 15, 2008]



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 ofSec. 764.2(i) of this part.
    (d) Formerly embargoed destinations. Reporting requirements for 
activities within the scope ofSec. 764.2(e) that involve items subject 
to the EAR which may have been illegally exported or reexported to Libya 
prior to the lifting of the comprehensive embargo on Libya are found in 
Sec.  764.7 of the EAR.

[61 FR 12902, Mar. 25, 1996, as amended at 70 FR 14391, Mar. 22, 2005]



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

[[Page 621]]

of violations relating to part 760 of the EAR.
    (2) The provisions of this section apply only when information is 
provided to OEE for its review in determining whether to take 
administrative action under part 766 of the EAR for violations of the 
export control provisions of the EAR.
    (3) The provisions of this section apply only when information is 
received by OEE for review prior to the time that OEE, or any other 
agency of the United States Government, has learned the same or 
substantially similar information from another source and has commenced 
an investigation or inquiry in connection with that information.
    (4) While voluntary self-disclosure is a mitigating factor in 
determining what administrative sanctions, if any, will be sought by 
OEE, it is a factor that is considered together with all other factors 
in a case. The weight given to voluntary self-disclosure is solely 
within the discretion of OEE, and the mitigating effect of voluntary 
self-disclosure may be outweighed by aggravating factors. Voluntary 
self-disclosure does not prevent transactions from being referred to the 
Department of Justice for criminal prosecution. In such a case, OEE 
would notify the Department of Justice of the voluntary self-disclosure, 
but the consideration of that factor is within the discretion of the 
Department of Justice.
    (5) A firm will not be deemed to have made a disclosure under this 
section unless the individual making the disclosure did so with the full 
knowledge and authorization of the firm's senior management.
    (6) The provisions of this section do not, nor should they be relied 
on to, create, confer, or grant any rights, benefits, privileges, or 
protection enforceable at law or in equity by any person, business, or 
entity in any civil, criminal, administrative, or other matter.
    (c) Information to be provided--(1) General. Any person wanting to 
disclose information that constitutes a voluntary self-disclosure 
should, in the manner outlined below, initially notify OEE as soon as 
possible after violations are discovered, and then conduct a thorough 
review of all export-related transactions where violations are 
suspected.
    (2) Initial notification. (i) The initial notification should be in 
writing and be sent to one of the addresses inSec. 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 bySec. 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 ofSec. 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 inSec. 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:

[[Page 622]]

    (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 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: Director, 
Office of Export Enforcement, 1401 Constitution Ave., Room H4514, 
Washington, DC 20230, Tel: (202) 482-5036, Facsimile: (202) 482-5889.
    (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 toSec. 766.18 of the 
EAR and attempt to settle the matter;
    (4) Issue a charging letter pursuant toSec. 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. Supplement No. 1 to part 766 describes how BIS 
typically exercises its discretion regarding whether to pursue an 
administrative enforcement case under part 766 and what administrative 
sanctions to seek in settling such a case.
    (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 violatedSec. 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

[[Page 623]]

the activities described inSec. 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 violateSec. 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; 69 
FR 7870, Feb. 20, 2004; 70 FR 22250, Apr. 29, 2005]



Sec.  764.6  Protective administrative measures.

    (a) License Exception limitation. As provided inSec. 740.2(b) of 
the EAR, all License Exceptions are subject to revision, suspension, or 
revocation.
    (b) Revocation or suspension of licenses. As provided inSec. 750.8 
of the EAR, all licenses are subject to revision, suspension, or 
revocation.
    (c) Temporary denial orders. BIS may, in accordance withSec. 
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 inSec. 11(h) 
of the EAA.



Sec.  764.7  Activities involving items that may have been illegally
exported or reexported to Libya.

    (a) Introduction. As set forth inSec. 764.2(e) of this part, and 
restated in General Prohibition Ten atSec. 736.2(b)(10) of the EAR, no 
person (including a non-U.S. Third Party) may order, buy, remove, 
conceal, store, use, sell, loan, dispose of, transfer, finance, forward, 
or otherwise service, in whole or in part, any item subject to the EAR 
with knowledge that a violation has occurred, or will occur, in 
connection with the item. This section addresses the application of 
Sec.  764.2(e) of this part to activities involving items subject to the 
EAR that may have been illegally exported or reexported to Libya before 
the comprehensive embargo on Libya ended (April 29, 2004) (``installed 
base'' items).
    (b) Libya--(1) Activities involving installed base items in Libya 
for which no license is required. Subject to the reporting requirement 
set forth in paragraph (b)(1)(ii) of this section, activities within the 
scope ofSec. 764.2(e) of this part involving installed base items 
described in paragraph (b)(1)(i) of this section that are located in 
Libya and that were exported or reexported before April 29, 2004 do not 
require a license from BIS.
    (i) Scope. An installed base item is within the scope of paragraph 
(b)(1) of this section if:
    (A) It is not on the Commerce Control List in Supplement No.1 to 
Part 774 of the EAR;
    (B) It is on the Commerce Control List, but is authorized for export 
or reexport pursuant to a License Exception to Libya; or
    (C) It is on the Commerce Control List and controlled only for AT 
reasons or for NS and AT reasons only, and is not listed on the 
Wassenaar Arrangement's Sensitive List (Annex 1) or Very Sensitive List 
(Annex 2) posted on the Wassenaar Arrangement's Web site 
(www.wassenaar.org) at the Control Lists web page.

    Note 1 to paragraph (b)(1)(i): An item being exported or reexported 
to Libya may require a license based on the classification of the item 
to be exported or reexported regardless of whether the item will be used 
in

[[Page 624]]

connection with an installed base item. See paragraph (b)(4) of this 
section.
    Note 2 to paragraph (b)(1)(i): Not all items listed on the Wassenaar 
Arrangement's Annex 1, Sensitive List, and Annex 2, Very Sensitive List, 
fall under the export licensing jurisdiction of the Department of 
Commerce. Please refer to the Commerce Control List for additional 
jurisdictional information related to those items. Also, if you do not 
have access to the internet to review the Wassenaar Arrangement's 
Sensitive List and Very Sensitive List, please contact the Office of 
Exporter Services, Division of Exporter Counseling for assistance at 
telephone number (202) 482-4811.

    (ii) Reporting requirement. Any person engaging in activity 
described in paragraph (b)(1) of this section must submit to BIS's 
Office of Export Enforcement (OEE) a report including all known material 
facts with respect to how the installed base item arrived in Libya. The 
report must be submitted to OEE at the address identified inSec. 
764.4(a) of the EAR within ninety (90) days of the first activity 
relating to the installed base item in Libya. A report may address more 
than one activity and/or more than one installed base item. An 
additional report must be submitted if any new material information 
regarding the export or reexport to Libya of the installed base item is 
discovered.
    (2) Licensing procedure for activities involving installed base 
items in Libya--(i) License requirement. Any person seeking to undertake 
activities within the scope ofSec. 764.2(e) of the EAR with respect to 
any installed base item located in Libya and not described in paragraph 
(b)(1)(i) of this section must obtain a license from BIS prior to 
engaging in any such activities. License applications should be 
submitted in accordance with Sec.Sec. 748.1, 748.4 and 748.6 of the 
EAR, and should fully describe the relevant activity within the scope of 
Sec.  764.2(e) of this part which is the basis of the application. 
License applications should include all known material facts as to how 
the installed base item originally was exported or reexported to Libya. 
This section also applies if you know that an item to be exported or 
reexported to a third party will be used on an installed base item not 
described in paragraph (b)(1)(i) of this section.
    (ii) Licensing policy. BIS will review license applications 
submitted pursuant to paragraph (b)(2)(i) of this section on a case-by-
case basis. Favorable consideration will be given for those applications 
related to civil end-uses in Libya. Applications related to military, 
police, intelligence, or other sensitive end-uses in Libya will be 
subject to a general policy of denial.
    (3) Exclusion. The provisions of this section are not applicable to 
any activities within the scope ofSec. 764.2(e) of the EAR undertaken 
with respect to an installed base item in Libya by a person who was 
party to the original illegal export or reexport of the related 
installed base item to Libya. Such persons should voluntarily self-
disclose violations pursuant to the procedures set forth inSec. 764.5 
of this part, which in some cases may allow activities related to 
unlawfully exported or reexported items to be undertaken based on 
permission from BIS.
    (4) Relationship to other Libya license requirements. 
Notwithstanding this section, a license may be required pursuant to 
another provision of the EAR to engage in activity involving Libya. If a 
license is required pursuant to another section of the EAR, and the 
transaction also involves activity within the scope ofSec. 764.2(e) of 
this part related to an installed base item in Libya, this information 
should be specified on the license application. Such applications must 
also include all known information as to how the installed base item 
originally arrived in Libya. If granted, the license for the proposed 
transaction will also authorize the related activity within the scope of 
Sec.  764.2(e) of this part.

[70 FR 14391, Mar. 22, 2005, as amended at 71 FR 51719, Aug. 31, 2006; 
73 FR 49331, Aug. 21, 2008]



Sec.  764.8  Voluntary self-disclosures for boycott violations.

    This section sets forth procedures for disclosing violations of part 
760 of the EAR--Restrictive Trade Practices or Boycotts and violations 
of part 762--Recordkeeping--with respect to records related to part 760. 
In this section, these provisions are referred to collectively as the 
``antiboycott provisions.'' This section also describes BIS's policy 
regarding such disclosures.

[[Page 625]]

    (a) General policy. BIS strongly encourages disclosure to the Office 
of Antiboycott Compliance (OAC) if you believe that you may have 
violated the antiboycott provisions. Voluntary self-disclosures are a 
mitigating factor with respect to any enforcement action that OAC might 
take.
    (b) Limitations. (1) This section does not apply to disclosures of 
violations relating to provisions of the EAR other than the antiboycott 
provisions. Section 764.5 of this part describes how to prepare 
disclosures of violations of the EAR other than the antiboycott 
provisions.
    (2) The provisions of this section apply only when information is 
provided to OAC for its review in determining whether to take 
administrative action under parts 764 and 766 of the EAR for violations 
of the antiboycott provisions.
    (3) Timing. The provisions of this section apply only if OAC 
receives the voluntary self-disclosure as described in paragraph (c)(2) 
of this section before it commences an investigation or inquiry in 
connection with the same or substantially similar information it 
received from another source.
    (i) Mandatory Reports. For purposes of this section, OAC's receipt 
of a report required to be filed underSec. 760.5 of the EAR that 
discloses that a person took an action prohibited by part 760 of the EAR 
constitutes the receipt of information from another source.
    (ii) Requests for Advice. For purposes of this section, a violation 
that is revealed to OAC by a person who is seeking advice, either by 
telephone or e-mail, about the antiboycott provisions does not 
constitute the receipt of information from another source. Such 
revelation also does not constitute a voluntary self-disclosure or 
initial notification of a voluntary self-disclosure for purposes of this 
section.
    (4) Although a voluntary self-disclosure is a mitigating factor in 
determining what administrative sanctions, if any, will be sought by 
BIS, 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 BIS, 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, BIS 
would notify the Department of Justice of the voluntary self-disclosure, 
but the decision as to how to consider that factor is within the 
discretion of the Department of Justice.
    (5) A firm will not be deemed to have made a disclosure under this 
section unless the individual making the disclosure did so with the full 
knowledge and authorization of the firm's senior management or of a 
person with authority to make such disclosures on behalf of the firm.
    (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 OAC as soon as 
possible after violations are discovered, and then conduct a thorough 
review of all transactions where violations of the antiboycott 
provisions are suspected.
    (2) Initial notification. The initial notification must be in 
writing and be sent to the address inSec. 764.8(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 bySec. 764.8(c)(3) of this part, the 
disclosure will be deemed to have been made on the date of the initial 
notification for purposes ofSec. 764.8(b)(3) of this part.
    (3) Narrative account. After the initial notification, a thorough 
review should be conducted of all business transactions where possible 
antiboycott provision violations are suspected. OAC recommends that the 
review cover a period of five years prior to the date of the initial 
notification. If your review

[[Page 626]]

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 the same mitigation as the 
violations voluntarily self-disclosed 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 
enforced by BIS requires disclosure. Upon completion of the review, OAC 
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, the furnishing of a 
certificate indicating that the goods supplied did not originate in a 
boycotted country;
    (ii) An explanation of when and how the violations occurred, 
including a description of activities surrounding the violations (e.g., 
contract negotiations, sale of goods, implementation of letter of 
credit, bid solicitation);
    (iii) The complete identities and addresses of all individuals and 
organizations, whether foreign or domestic, involved in the activities 
giving rise to the violations; and
    (iv) A description of any mitigating factors.
    (4) Supporting documentation.
    (i) The narrative account should be accompanied by copies of 
documents that explain and support it, including:
    (A) Copies of boycott certifications and declarations relating to 
the violation, or copies of documents containing prohibited language or 
prohibited requests for information;
    (B) Other documents relating to the violation, such as letters, 
facsimiles, telexes and other evidence of written or oral 
communications, negotiations, internal memoranda, purchase orders, 
invoices, bid requests, 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 the latest of 
the following: the documents are supplied to OAC; BIS informs the 
disclosing party that it will take no action; BIS issues a warning 
letter for the violation; BIS issues an order that constitutes the final 
agency action in the matter and all avenues for appeal are exhausted; or 
the documents are no longer required to be kept under 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. OAC 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 should be submitted to: Office 
of Antiboycott Compliance, 14th and Pennsylvania Ave., NW., Room 6098, 
Washington, DC 20230, tel: (202) 482-2381, facsimile: (202) 482-0913.
    (d) Action by the Office of Antiboycott Compliance. After OAC 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, BIS 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;

[[Page 627]]

    (3) Issue a proposed charging letter and attempt to settle the 
matter pursuant toSec. 766.18 of the EAR;
    (4) Issue a charging letter pursuant toSec. 766.3 of the EAR if a 
settlement is not reached or BIS otherwise deems appropriate; and/or
    (5) Refer the matter to the Department of Justice for criminal 
prosecution.
    (e) Criteria. Supplement No. 2 to part 766 of the EAR describes how 
BIS typically exercises its discretion regarding whether to pursue an 
antiboycott administrative enforcement case under part 766 and what 
administrative sanctions to seek in settling such a case.

[72 FR 39004, July 17, 2007]



  Sec. 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) (seeSec. 764.2(k) of this part). BIS provides a list of persons 
currently subject to denial orders on its Web site at http://
www.bis.doc.gov.
    (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, 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

[[Page 628]]

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; 
70 FR 8720, Feb. 23, 2005]



PART 766_ADMINISTRATIVE ENFORCEMENT PROCEEDINGS--Table of Contents



Sec.
766.1 Scope.
766.2 Definitions.
766.3 Institution of administrative enforcement proceedings.
766.4 Representation.
766.5 Filing and service of papers other than charging letter.
766.6 Answer and demand for hearing.
766.7 Default.
766.8 Summary decision.
766.9 Discovery.
766.10 Subpoenas.
766.11 Matter protected against disclosure.
766.12 Prehearing conference.
766.13 Hearings.
766.14 Interlocutory review of rulings.
766.15 Proceeding without a hearing.
766.16 Procedural stipulations; extension of time.
766.17 Decision of the administrative law judge.
766.18 Settlement.
766.19 Reopening.
766.20 Record for decision and availability of documents.
766.21 Appeals.
766.22 Review by Under Secretary.
766.23 Related persons.
766.24 Temporary denials.
766.25 Administrative action denying export privileges.

Supplement No. 1 to Part 766--Guidance on charging and penalty 
          determinations in settlement of administrative enforcement 
          cases
Supplement No. 2 to Part 766--Guidance on Charging and Penalty 
          Determinations in Settlement of Administrative Enforcement 
          Cases Involving Antiboycott Matters

    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 15, 
2012, 77 FR 49699 (August 16, 2012).

    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

[[Page 629]]

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.
    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 of Commerce for 
Industry and Security, 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 EAR, which is subject to review by the Under Secretary of 
Commerce for Industry and Security, 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 Industry and Security, 
United States Department of Commerce.

[61 FR 12907, Mar. 25, 1996, as amended at 67 FR 20631, Apr. 26, 2002; 
70 FR 8250, Feb. 18, 2005]



Sec.  766.3  Institution of administrative enforcement proceedings.

    (a) Charging letters. The Director of the Office of Export 
Enforcement (OEE) or the Director of the Office of Antiboycott 
Compliance (OAC), as appropriate, or such other Department of Commerce 
official as may be designated by the Assistant Secretary of Commerce for 
Export Enforcement, may begin administrative enforcement proceedings 
under this part by issuing a charging letter in the name of BIS. 
Supplements Nos. 1 and 2 to this part describe how BIS typically 
exercises its discretion regarding the issuance of charging letters. 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 inSec. 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.

[[Page 630]]

    (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.

[61 FR 12907, Mar. 25, 1996, as amended at 69 FR 7870, Feb. 20, 2004; 72 
FR 39005, July 17, 2007]



Sec.  766.4  Representation.

    A respondent individual may appear and participate in person, a 
corporation by a duly authorized officer or employee, and a partnership 
by a partner. If a respondent is represented by counsel, counsel shall 
be a member in good standing of the bar of any State, Commonwealth or 
Territory of the United States, or of the District of Columbia, or be 
licensed to practice law in the country in which counsel resides if not 
the United States. A respondent personally, or through counsel or other 
representative, shall file a notice of appearance with the 
administrative law judge. 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. Coast Guard, ALJ Docketing 
Center, 40 S. Gay Street, Baltimore, Maryland, 21202-4022, 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,

[[Page 631]]

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; 
70 FR 8250, Feb. 18, 2005]



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 underSec. 766.16 of this part.
    (b) Contents of answer. The answer must be responsive to the 
charging letter and must fully set forth the nature of the respondent's 
defense or defenses. The answer must admit or deny specifically each 
separate allegation of the charging letter; if the respondent is without 
knowledge, the answer must so state and will operate as a denial. 
Failure to deny or controvert a particular allegation will be deemed an 
admission of that allegation. The answer must also set forth any 
additional or new matter the respondent believes supports a defense or 
claim of mitigation. Any defense or partial defense not specifically set 
forth in the answer shall be deemed waived, and evidence thereon may be 
refused, except for good cause shown.
    (c) Demand for hearing. If the respondent desires a hearing, a 
written demand for one must be submitted with the answer. Any demand by 
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 inSec. 766.21 orSec. 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.

[[Page 632]]



Sec.  766.8  Summary decision.

    At any time after a proceeding has been initiated, a party may move 
for a summary decision disposing of some or all of the issues. The 
administrative law judge may render an initial or recommended decision 
and issue or recommend an order if the entire record shows, as to the 
issue(s) under consideration:
    (a) That there is no genuine issue as to any material fact; and
    (b) That the moving party is entitled to a summary decision as a 
matter of law.



Sec.  766.9  Discovery.

    (a) General. The parties are encouraged to engage in voluntary 
discovery regarding any matter, not privileged, which is relevant to the 
subject matter of the pending proceeding. The provisions of the Federal 
Rules of Civil Procedure relating to discovery apply to the extent 
consistent with this part and except as otherwise provided by the 
administrative law judge or by waiver or agreement of the parties. The 
administrative law judge may make any order which justice requires to 
protect a party or person from annoyance, embarrassment, oppression, or 
undue burden or expense. These orders may include limitations on the 
scope, method, time and place of discovery, and provisions for 
protecting the confidentiality of classified or otherwise sensitive 
information.
    (b) Interrogatories and requests for admission or production of 
documents. A party may serve on any party interrogatories, requests for 
admission, or requests for production of documents for inspection and 
copying, and a party concerned may apply to the administrative law judge 
for such enforcement or protective order as that party deems warranted 
with respect to such discovery. The service of a discovery request shall 
be made at least 20 days before the scheduled date of the hearing unless 
the administrative law judge specifies a shorter time period. Copies of 
interrogatories, requests for admission and requests for production of 
documents and responses thereto shall be served on all parties, and a 
copy of the certificate of service shall be filed with the 
administrative law judge. Matters of fact or law of which admission is 
requested shall be deemed admitted unless, within a period designated in 
the request (at least 10 days after service, or within such additional 
time as the administrative law judge may allow), the party to whom the 
request is directed serves upon the requesting party a sworn statement 
either denying specifically the matters of which admission is requested 
or setting forth in detail the reasons why the party to whom the request 
is directed cannot truthfully either admit or deny such matters.
    (c) Depositions. Upon application of a party and for good cause 
shown, the administrative law judge may order the taking of the 
testimony of any person by deposition and the production of specified 
documents or materials by the person at the deposition. The application 
shall state the purpose of the deposition and set forth the facts sought 
to be established through the deposition.
    (d) Enforcement. The administrative law judge may order a party to 
answer designated questions, to produce specified documents or things or 
to take any other action in response to a proper discovery request. If a 
party does 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

[[Page 633]]

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 inSec. 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 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

[[Page 634]]

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 (seeSec. 766.11 of this part) from improper 
disclosure. The rules of evidence prevailing in courts of law do not 
apply, and all evidentiary material deemed by the administrative law 
judge to be relevant and material to the proceeding and not unduly 
repetitious will be received and given appropriate weight.
    (c) Testimony and record. Witnesses will testify under oath or 
affirmation. A verbatim record of the hearing and of any other oral 
proceedings will be taken by reporter or by electronic recording, 
transcribed and filed with the administrative law judge. A respondent 
may examine the transcript and may obtain a copy by paying any 
applicable costs. Upon such terms as the administrative law judge deems 
just, the judge may direct that the testimony of any person be taken by 
deposition and may admit an affidavit or declaration as evidence, 
provided that any affidavits or declarations have been filed and served 
on the parties sufficiently in advance of the hearing to permit a party 
to file and serve an objection thereto on the grounds that it is 
necessary that the affiant or declarant testify at the hearing and be 
subject to cross-examination.
    (d) Failure to appear. If a party fails to appear in person or by 
counsel at a scheduled hearing, the hearing may nevertheless proceed, 
and that party's failure to appear will not affect the validity of the 
hearing or any proceedings or action taken thereafter.



Sec.  766.14  Interlocutory review of rulings.

    (a) At the request of a party, or on the judge's own initiative, the 
administrative law judge may certify to the Under Secretary for review a 
ruling that does not finally dispose of a proceeding, if the 
administrative law judge determines that immediate review may hasten or 
facilitate the final disposition of the matter.
    (b) Upon certification to the Under Secretary of the interlocutory 
ruling for review, the parties will have 10 days to file and serve 
briefs stating their positions, and five days to file and serve replies, 
following which the Under Secretary will decide the matter promptly.



Sec.  766.15  Proceeding without a hearing.

    If the parties have waived a hearing, the case will be decided on 
the record by the administrative law judge. Proceeding without a hearing 
does not relieve the parties from the necessity of proving the facts 
supporting their charges or defenses. Affidavits or declarations, 
depositions, admissions, answers to interrogatories and stipulations may 
supplement other documentary evidence in the record. The administrative 
law judge will give each party reasonable opportunity to file rebuttal 
evidence.



Sec.  766.16  Procedural stipulations; extension of time.

    (a) Procedural stipulations. Unless otherwise ordered, a written 
stipulation agreed to by all parties and filed with the administrative 
law judge will modify any procedures established by this part.
    (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.

[[Page 635]]

    (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 withSec. 766.21 of this part.
    (2) Recommended decision. For proceedings not involving violations 
relating to part 760 of the EAR, the decision rendered shall be a 
recommended decision. The decision will include recommended findings of 
fact, conclusions of law, and findings as to whether there has been a 
violation of the EAA, the EAR or any order, license or authorization 
issued thereunder. If the administrative law judge finds that the 
evidence of record is insufficient to sustain a recommended finding that 
a violation has occurred with respect to one or more charges, the judge 
shall recommend dismissal of any such charge. If the administrative law 
judge finds that one or more violations have been committed, the judge 
shall recommend an order imposing administrative sanctions, as provided 
in part 764 of the EAR, or such other action as the judge deems 
appropriate. The administrative law judge shall immediately certify the 
record, including the original copy of the recommended decision and 
order, to the Under Secretary for review in accordance withSec. 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 ofSec. 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 ofSec. 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 underSec. 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 toSec. 
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

[[Page 636]]

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 underSec. 
766.21 orSec. 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 withSec. 766.21 orSec. 
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 inSec. 766.17(c) of this 
part.
    (d) Any respondent who agrees to an order imposing any 
administrative sanction does so solely for the purpose of resolving the 
claims in the administrative enforcement proceeding brought under this 
part. This reflects the fact that 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.
    (f) Supplements Nos. 1 and 2 to this part describe how BIS typically 
exercises its discretion regarding the terms under which it is willing 
to settle particular cases.

[61 FR 12907, Mar. 25, 1996, as amended at 69 FR 7870, Feb. 20, 2004; 72 
FR 39006, July 17, 2007]



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 withSec. 766.21 
orSec. 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 underSec. 766.21 of this part or review underSec. 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

[[Page 637]]

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 inSec. 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 toSec. 766.22 
of this part and those final orders providing for denial, suspension or 
revocation of export privileges shall be published in the Federal 
Register.
    (ii) For proceedings started before October 12, 1979, the public 
availability of the record for decision will be governed by the 
applicable regulations in effect when the proceedings were begun.
    (2) Timing--(i) Antiboycott cases. For matters relating to part 760 
of the EAR, documents are available immediately upon filing, except for 
any portion of the record for which a request for segregation is made. 
Parties that seek to restrict access to any portion of the record under 
paragraph (b) of this section must make such a request, together with 
the reasons supporting the claim of confidentiality, simultaneously with 
the submission of material for the record.
    (ii) Other cases. In all other cases, documents will be available 
only after the final administrative disposition of the case. In these 
cases, parties desiring to restrict access to any portion of the record 
under paragraph (b) of this section must assert their claim of 
confidentiality, together with the reasons for supporting the claim, 
before the close of the proceeding.



Sec.  766.21  Appeals.

    (a) Grounds. For proceedings charging violations relating to part 
760 of the EAR, a party may appeal to the Under Secretary from an order 
disposing of a 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, NW., Washington, DC 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

[[Page 638]]

designate another Department of Commerce official to receive and act on 
the appeal.
    (c) Effect of appeal. The filing of an appeal shall not stay the 
operation of any order, unless the order by its express terms so 
provides or unless the Under Secretary, upon application by a party and 
with opportunity for response, grants a stay.
    (d) Appeal procedure. The Under Secretary normally will not hold 
hearings or entertain oral argument on appeals. A full written statement 
in support of the appeal must be filed with the appeal and be 
simultaneously served on all parties, who shall have 30 days from 
service to file a reply. At his/her discretion, the Under Secretary may 
accept new submissions, but will not ordinarily accept those submissions 
filed more than 30 days after the filing of the reply to the appellant's 
first submission.
    (e) Decisions. The decision will be in writing and will be 
accompanied by an order signed by the Under Secretary giving effect to 
the decision. The order may either dispose of the case by affirming, 
modifying or reversing the order of the administrative law judge or may 
refer the case back to the administrative law judge for further 
proceedings.



Sec.  766.22  Review by Under Secretary.

    (a) Recommended decision. For proceedings not involving violations 
relating to part 760 of the EAR, the administrative law judge shall 
immediately refer the recommended decision and order to the Under 
Secretary. Because of the time limits provided under the EAA for review 
by the Under Secretary, service of the recommended decision and order on 
the parties, all papers filed by the parties in response, and the final 
decision of the Under Secretary must be by personal delivery, facsimile, 
express mail or other overnight carrier. If the Under Secretary cannot 
act on a recommended decision and order for any reason, the Under 
Secretary will designate another Department of Commerce official to 
receive and act on the recommendation.
    (b) Submissions by parties. Parties shall have 12 days from the date 
of issuance of the recommended decision and order in which to submit 
simultaneous responses. Parties thereafter shall have eight days from 
receipt of any response(s) in which to submit replies. Any response or 
reply must be received within the time specified by the Under Secretary.
    (c) Final decision. Within 30 days after receipt of the recommended 
decision and order, the Under Secretary shall issue a written order 
affirming, modifying or vacating the recommended decision and order of 
the administrative law judge. If he/she vacates the recommended decision 
and order, the Under Secretary may refer the case back to the 
administrative law judge for further proceedings. Because of the time 
limits, the Under Secretary's review will ordinarily be limited to the 
written record for decision, including the transcript of any hearing, 
and any submissions by the parties concerning the recommended decision.
    (d) Delivery. The final decision and implementing order shall be 
served on the parties and will be publicly available in accordance with 
Sec.  766.20 of this part.

[61 FR 12907, Mar. 25, 1996, as amended at 75 FR 33683, June 15, 2010]



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 underSec. 766.24(a) of this part, give that person notice 
in accordance withSec. 766.5(b) of this part and an opportunity to 
oppose such action. If the official authorized to issue the order

[[Page 639]]

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 appeal that action. 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.
    (1) A person named as related to the respondent in an order issued 
pursuant toSec. 766.25 may file an appeal with the Under Secretary for 
Industry and Security pursuant to part 756 of the EAR.
    (2) A person named as related to the respondent in an order issued 
pursuant to other provisions of this part may file an appeal with the 
administrative law judge.
    (i) If the order made applicable to the related person is for a 
violation related to part 760 of the EAR, the related person may file an 
appeal with the administrative law judge. The related person may appeal 
the initial decision and order of the administrative law judge to the 
Under Secretary in accordance with the procedures set forth inSec. 
766.21.
    (ii) If the order made applicable to the related person is issued 
pursuant toSec. 766.24 of this part to prevent an imminent violation, 
the recommended decision and order of the administrative law judge shall 
be reviewed by the Under Secretary in accordance with the procedures set 
forth inSec. 766.24(e) of this part.
    (iii) If the order made applicable to the related person is for a 
violation of the EAR not related to part 760 of the EAR and not issued 
pursuant toSec. 766.24 of this part, the recommended decision and 
order of the administrative law judge shall be reviewed by the Under 
Secretary in accordance with the procedures set forth inSec. 766.22 of 
this part.

[61 FR 12907, Mar. 25, 1996, as amended at 71 FR 27605, May 12, 2006]



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 inSec. 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 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

[[Page 640]]

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 withSec. 766.5(b) of this 
part upon issuance.
    (c) Related persons. A temporary denial order may be made applicable 
to related persons in accordance withSec. 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 withSec. 
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 inSec. 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 the 
issuance or renewal of the temporary denial order, but may file an 
appeal in accordance withSec. 766.23(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.
    (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 U.S. Coast Guard, ALJ Docketing Center, 40 S. Gay 
Street, Baltimore, Maryland, 21202-4022. Service on BIS shall be as set 
forth inSec. 766.5(b) of this part. The administrative law judge 
normally will not hold hearings or entertain oral argument on appeals.

[[Page 641]]

    (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.
    (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 inSec. 766.5 of this part for filing for papers 
other than a charging letter.

[61 FR 12907, Mar. 25, 1996, as amended at 71 FR 14099, Mar. 21, 2006; 
71 FR 27606, May 12, 2006; 75 FR 33683, June 15, 2010]



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 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) andSec. 764.2(k) of the EAR.
    (f) Publication. The orders denying export privileges under this 
section are

[[Page 642]]

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 withSec. 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]



  Sec. Supplement No. 1 to Part 766--Guidance on Charging and Penalty 
    Determinations in Settlement of Administrative Enforcement Cases

                              Introduction

    This Supplement describes how BIS responds to violations of the 
Export Administration Regulations (EAR) and, specifically, how BIS makes 
penalty determinations in the settlement of civil administrative 
enforcement cases under part 764 of the EAR. This guidance does not 
apply to enforcement cases for antiboycott violations under part 760 of 
the EAR.
    Because many administrative enforcement cases are resolved through 
settlement, the process of settling such cases is integral to the 
enforcement program. BIS carefully considers each settlement offer in 
light of the facts and circumstances of the case, relevant precedent, 
and BIS's objective to achieve in each case an appropriate level of 
penalty and deterrent effect. In settlement negotiations, BIS encourages 
parties to provide, and will give serious consideration to, information 
and evidence that parties believe are relevant to the application of 
this guidance to their cases, to whether a violation has in fact 
occurred, or to whether they have an affirmative defense to potential 
charges.
    This guidance does not confer any right or impose any obligation 
regarding what penalties BIS may seek in litigating a case or what 
posture BIS may take toward settling a case. Parties do not have a right 
to a settlement offer, or particular settlement terms, from BIS, 
regardless of settlement postures BIS has taken in other cases.

                       I. Responding to Violations

    The Office of Export Enforcement (OEE), among other 
responsibilities, investigates possible violations of the Export 
Administration Act of 1979, as amended, the EAR, or any order, license 
or authorization issued thereunder. When it appears that such a 
violation has occurred, OEE investigations may lead to a warning letter 
or a civil enforcement proceeding. A violation may also be referred to 
the Department of Justice for criminal prosecution. The type of 
enforcement action initiated by OEE will depend primarily on the nature 
of the violation.
    A. Issuing a warning letter: Warning letters represent OEE's 
conclusion that an apparent violation has occurred. In the exercise of 
its discretion, OEE may determine in certain instances that issuing a 
warning letter, instead of bringing an administrative enforcement 
proceeding, will achieve the appropriate enforcement result. A warning 
letter will fully explain the apparent violation and urge compliance. 
OEE often issues warning letters for an apparent violation of a 
technical nature, where good faith efforts to comply with the law and 
cooperate with the investigation are present, or where the investigation 
commenced as a result of a voluntary self-disclosure satisfying the 
requirements ofSec. 764.5 of the EAR, provided that no aggravating 
factors exist.
    OEE will not issue a warning letter if it concludes, based on 
available information, that a violation did not occur. A warning letter 
does not constitute a final agency determination that a violation has 
occurred.
    B. Pursuing an administrative enforcement case: The issuance of a 
charging letter underSec. 766.3 of the EAR initiates an administrative 
enforcement proceeding. Charging letters may be issued when there is 
reason to believe that a violation has occurred. Cases may be settled 
before or after the issuance of a charging letter. SeeSec. 766.18 of 
the EAR. BIS prepares a proposed charging letter when a case is settled 
before issuance of an actual charging letter. See section 766.18(a). In 
some cases, BIS also sends a proposed charging letter to a party in the 
absence of a settlement agreement, thereby informing the party of the 
violations that BIS has reason to believe occurred and how BIS expects 
that those violations would be charged.
    C. Referring for criminal prosecution: In appropriate cases, BIS may 
refer a case to the Department of Justice for criminal prosecution, in 
addition to pursuing an administrative enforcement action.

                  II. Types of Administrative Sanctions

    There are three types of administrative sanctions underSec. 
764.3(a) of the EAR: a civil

[[Page 643]]

penalty, a denial of export privileges, and an exclusion from practice 
before BIS. Administrative enforcement cases are generally settled on 
terms that include one or more of these sanctions.
    A. Civil penalty: A monetary penalty may be assessed for each 
violation. The maximum amount of such a penalty per violation is stated 
inSec. 764.3(a)(1), subject to adjustments under the Federal Civil 
Penalties Adjustment Act of 1990 (28 U.S.C. 2461, note (2000)), which 
are codified at 15 CFR 6.4.
    B. Denial of export privileges: An order denying a party's export 
privileges may be issued, as described inSec. 764.3(a)(2) of the EAR. 
Such a denial may extend to all export privileges, as set out in the 
standard terms for denial orders in Supplement No. 1 to part 764, or may 
be narrower in scope (e.g., limited to exports of specified items or to 
specified destinations or customers).
    C. Exclusion from practice: UnderSec. 764.3(a)(3) of the EAR, any 
person acting as an attorney, accountant, consultant, freight forwarder 
or other person who acts in a representative capacity in any matter 
before BIS may be excluded from practicing before BIS.

 III. How BIS Determines What Sanctions Are Appropriate in a Settlement

    A. General Factors: BIS usually looks to the following basic factors 
in determining what administrative sanctions are appropriate in each 
settlement:
    Degree of Willfulness: Many violations involve no more than simple 
negligence or carelessness. In most such cases, BIS typically will seek 
a settlement for payment of a civil penalty (unless the matter is 
resolved with a warning letter). In cases involving gross negligence, 
willful blindness to the requirements of the EAR, or knowing or willful 
violations, BIS is more likely to seek a denial of export privileges or 
an exclusion from practice, and/or a greater monetary penalty than BIS 
would otherwise typically seek. While some violations of the EAR have a 
degree of knowledge or intent as an element of the offense, see, e.g., 
Sec.  764.2(e) of the EAR (acting with knowledge of a violation) and 
Sec.  764.2(f) (possession with intent to export illegally), BIS may 
regard a violation of any provision of the EAR as knowing or willful if 
the facts and circumstances of the case support that conclusion. In 
deciding whether a knowing violation has occurred, BIS will consider, in 
accordance with Supplement No. 3 to part 732 of the EAR, the presence of 
any red flags and the nature and result of any inquiry made by the 
party. A denial or exclusion order may also be considered even in 
matters involving simple negligence or carelessness, particularly if the 
violations(s) involved harm to national security or other essential 
interests protected by the export control system, if the violations are 
of such a nature and extent that a monetary fine alone represents an 
insufficient penalty or if the nature and extent of the violation(s) 
indicate that a denial or exclusion order is necessary to prevent future 
violations of the EAR.
    Destination Involved: BIS is more likely to seek a greater monetary 
penalty and/or denial of export privileges or exclusion from practice in 
cases involving:
    (1) Exports or reexports to countries subject to anti-terrorism 
controls, as described atSec. 742.1(d) of the EAR.
    (2) Exports or reexports to destinations particularly implicated by 
the type of control that applies to the item in question--for example, 
export of items subject to nuclear controls to a country with a poor 
record of nuclear non-proliferation.
    Violations involving exports or reexports to other destinations may 
also warrant consideration of such sanctions, depending on factors such 
as the degree of willfulness involved, the nature and extent of harm to 
national security or other essential interests protected by the export 
control system, and what level of sanctions are determined to be 
necessary to deter or prevent future violations of the EAR.
    Related Violations: Frequently, a single export transaction can give 
rise to multiple violations. For example, an exporter who mis-classifies 
an item on the Commerce Control List may, as a result of that error, 
export the item without the required export license and submit a 
Shipper's Export Declaration (SED) that both misstates the applicable 
Export Control Classification Number (ECCN) and erroneously identifies 
the export as qualifying for the designation ``NLR'' (no license 
required). In so doing, the exporter committed three violations: one 
violation ofSec. 764.2(a) of the EAR for the unauthorized export and 
two violations ofSec. 764.2(g) for the two false statements on the 
SED. It is within the discretion of BIS to charge three separate 
violations and settle the case for a penalty that is less than would be 
appropriate for three unrelated violations under otherwise similar 
circumstances, or to charge fewer than three violations and pursue 
settlement in accordance with that charging decision. In exercising such 
discretion, BIS typically looks to factors such as whether the 
violations resulted from knowing or willful conduct, willful blindness 
to the requirements of the EAR, or gross negligence; whether they 
stemmed from the same underlying error or omission; and whether they 
resulted in distinguishable or separate harm.
    Multiple Unrelated Violations: In cases involving multiple unrelated 
violations, BIS is more likely to seek a denial of export privileges, an 
exclusion from practice, and/or a greater monetary penalty than BIS 
would otherwise typically seek. For example, repeated unauthorized 
exports could warrant a

[[Page 644]]

denial order, even if a single export of the same item to the same 
destination under similar circumstances might warrant just a monetary 
penalty. BIS takes this approach because multiple violations may 
indicate serious compliance problems and a resulting risk of future 
violations. BIS may consider whether a party has taken effective steps 
to address compliance concerns in determining whether multiple 
violations warrant a denial or exclusion order in a particular case.
    Timing of Settlement: UnderSec. 766.18, settlement can occur 
before a charging letter is served, while a case is before an 
administrative law judge, or while a case is before the Under Secretary 
for Industry and Security underSec. 766.22. However, early 
settlement--for example, before a charging letter has been served--has 
the benefit of freeing resources for BIS to deploy in other matters. In 
contrast, for example, the BIS resources saved by settlement on the eve 
of an adversary hearing underSec. 766.13 are fewer, insofar as BIS has 
already expended significant resources on discovery, motions practice, 
and trial preparation. Because the effective implementation of the U.S. 
export control system depends on the efficient use of BIS resources, BIS 
has an interest in encouraging early settlement and may take this 
interest into account in determining settlement terms.
    Related Criminal or Civil Violations: Where an administrative 
enforcement matter under the EAR involves conduct giving rise to related 
criminal or civil charges, BIS may take into account the related 
violations, and their resolution, in determining what administrative 
sanctions are appropriate under part 766. A criminal conviction 
indicates serious, willful misconduct and an accordingly high risk of 
future violations, absent effective administrative sanctions. However, 
entry of a guilty plea can be a sign that a party accepts responsibility 
for complying with the EAR and will take greater care to do so in the 
future. In appropriate cases where a party is receiving substantial 
criminal penalties, BIS may find that sufficient deterrence may be 
achieved by lesser administrative sanctions than would be appropriate in 
the absence of criminal penalties. Conversely, BIS might seek greater 
administrative sanctions in an otherwise similar case where a party is 
not subjected to criminal penalties. The presence of a related criminal 
or civil disposition may distinguish settlements among civil penalty 
cases that appear otherwise to be similar. As a result, the factors set 
forth for consideration in civil penalty settlements will often be 
applied differently in the context of a ``global settlement'' of both 
civil and criminal cases, or multiple civil cases, and may therefore be 
of limited utility as precedent for future cases, particularly those not 
involving a global settlement.
    B. Specific Mitigating and Aggravating Factors: In addition to the 
general factors described in Section III.A. of this Supplement, BIS also 
generally looks to the presence or absence of the following mitigating 
and aggravating factors in determining what sanctions should apply in a 
given settlement. These factors describe circumstances that, in BIS's 
experience, are commonly relevant to penalty determinations in settled 
cases. However, this listing of factors is not exhaustive and, in 
particular cases, BIS may consider other factors that may indicate the 
blameworthiness of a party's conduct, the actual or potential harm 
associated with a violation, the likelihood of future violations, and/or 
other considerations relevant to determining what sanctions are 
appropriate.
    Where a factor admits of degrees, it should accordingly be given 
more or less weight. Thus, for example, one prior violation should be 
given less weight than a history of multiple violations, and a previous 
violation reported in a voluntary self disclosure by an exporter whose 
overall export compliance efforts are of high quality should be given 
less weight than previous violation(s) not involving such mitigating 
factors.
    Some of the mitigating factors listed in this section are designated 
as having ``great weight.'' When present, such a factor should 
ordinarily be given considerably more weight than a factor that is not 
so designated.

                           Mitigating Factors

    1. The party made a voluntary self-disclosure of the violation, 
satisfying the requirements ofSec. 764.5 of the EAR. All voluntary 
self-disclosures meeting the requirements ofSec. 764.5 will be 
afforded ``great weight,'' relative to other mitigating factors not 
designated as having ``great weight.'' Voluntary self-disclosures 
receiving the greatest mitigating effect will typically be those 
concerning violations that no BIS investigation in existence at the time 
of the self-disclosure would have been reasonably likely to discover 
without the self-disclosure. (GREAT WEIGHT)
    2. The party has an effective export compliance program and its 
overall export compliance efforts have been of high quality. In 
determining the presence of this factor, BIS will take account of the 
extent to which a party complies with the principles set forth in BIS's 
Export Management Compliance Program (EMCP) Guidelines. Information 
about the EMCP Guidelines can be accessed through the BIS Web site at 
www.bis.doc.gov. In this context, BIS will also consider whether a 
party's export compliance program uncovered a problem, thereby 
preventing further violations, and whether the party has taken steps to 
address compliance concerns raised by the violation, including steps to 
prevent reoccurrence of the violation, that

[[Page 645]]

are reasonably calculated to be effective. (GREAT WEIGHT)
    3. The violation was an isolated occurrence or the result of a good-
faith misinterpretation.
    4. Based on the facts of a case and under the applicable licensing 
policy, required authorization for the export transaction in question 
would likely have been granted upon request.
    5. Other than with respect to antiboycott matters under part 760 of 
the EAR:
    (a) The party has never been convicted of an export-related criminal 
violation;
    (b) In the past five years, the party has not entered into a 
settlement of an export-related administrative enforcement case with BIS 
or another U.S. Government agency or been found liable in an export-
related administrative enforcement case brought by BIS or another U.S. 
Government agency;
    (c) In the past three years, the party has not received a warning 
letter from BIS; and
    (d) In the past five years, the party has not otherwise violated the 
EAR.
    Where necessary to effective enforcement, the prior involvement in 
export violation(s) of a party's owners, directors, officers, partners, 
or other related persons may be imputed to a party in determining 
whether these criteria are satisfied. When an acquiring firm takes 
reasonable steps to uncover, correct, and disclose to BIS conduct that 
gave rise to violations by an acquired business before the acquisition, 
BIS typically will not take such violations into account in applying 
this factor in settling other violations by the acquiring firm.
    6. The party has cooperated to an exceptional degree with BIS 
efforts to investigate the party's conduct.
    7. The party has provided substantial assistance in BIS 
investigation of another person who may have violated the EAR.
    8. The violation was not likely to involve harm of the nature that 
the applicable provisions of the EAA, EAR or other authority (e.g., a 
license condition) were intended to protect against; for example, a 
false statement on an SED that an export was ``NLR,'' when in fact a 
license requirement was applicable, but a license exception was 
available.
    9. At the time of the violation, the party: (1) Had little or no 
previous export experience; and (2) Was not familiar with export 
practices and requirements. (Note: The presence of only one of these 
elements will not generally be considered a mitigating factor.)

                           Aggravating Factors

    1. The party made a deliberate effort to hide or conceal the 
violation(s). (GREAT WEIGHT)
    2. The party's conduct demonstrated a serious disregard for export 
compliance responsibilities. (GREAT WEIGHT)
    3. The violation was significant in view of the sensitivity of the 
items involved and/or the reason for controlling them to the destination 
in question. This factor would be present where the conduct in question, 
in purpose or effect, substantially implicated national security or 
other essential interests protected by the U.S. export control system, 
in view of such factors as the destination and sensitivity of the items 
involved. Such conduct might include, for example, violations of 
controls based on nuclear, biological, and chemical weapon 
proliferation, missile technology proliferation, and national security 
concerns, and exports proscribed in part 744 of the EAR. (GREAT WEIGHT)
    4. The violation was likely to involve harm of the nature that the 
applicable provisions of the EAA, EAR or other authority (e.g., a 
license condition) are principally intended to protect against, e.g., a 
false statement on an SED that an export was destined for a non-
embargoed country, when in fact it was destined for an embargoed 
country.
    5. The quantity and/or value of the exports was high, such that a 
greater penalty may be necessary to serve as an adequate penalty for the 
violation or deterrence of future violations, or to make the penalty 
proportionate to those for otherwise comparable violations involving 
exports of lower quantity or value.
    6. The presence in the same transaction of concurrent violations of 
laws and regulations, other than those enforced by BIS.
    7. Other than with respect to antiboycott matters under part 760 of 
the EAR:
    (a) The party has been convicted of an export-related criminal 
violation;
    (b) In the past five years, the party has entered into a settlement 
of an export-related administrative enforcement case with BIS or another 
U.S. Government agency or has been found liable in an export-related 
administrative enforcement case brought by BIS or another U.S. 
Government agency;
    (c) In the past three years, the party has received a warning letter 
from BIS; or
    (d) In the past five years, the party otherwise violated the EAR.
    Where necessary to effective enforcement, the prior involvement in 
export violation(s) of a party's owners, directors, officers, partners, 
or other related persons may be imputed to a party in determining 
whether these criteria are satisfied. When an acquiring firm takes 
reasonable steps to uncover, correct, and disclose to BIS conduct that 
gave rise to violations by an acquired business before the acquisition, 
BIS typically will not take such violations into account in applying 
this factor in settling other violations by the acquiring firm.
    8. The party exports as a regular part of the party's business, but 
lacked a systematic export compliance effort.
    In deciding whether and what scope of denial or exclusion order is 
appropriate, the

[[Page 646]]

following factors are particularly relevant: the presence of mitigating 
or aggravating factors of great weight; the degree of willfulness 
involved; in a business context, the extent to which senior management 
participated in or was aware of the conduct in question; the number of 
violations; the existence and seriousness of prior violations; the 
likelihood of future violations (taking into account relevant export 
compliance efforts); and whether a monetary penalty can be expected to 
have a sufficient deterrent effect.

           IV. How BIS Makes Suspension and Deferral Decisions

    A. Civil Penalties: In appropriate cases, payment of a civil 
monetary penalty may be deferred or suspended. SeeSec. 
764.3(a)(1)(iii) of the EAR. In determining whether suspension or 
deferral is appropriate, BIS may consider, for example, whether the 
party has demonstrated a limited ability to pay a penalty that would be 
appropriate for such violations, so that suspended or deferred payment 
can be expected to have sufficient deterrent value, and whether, in 
light of all of the circumstances, such suspension or deferral is 
necessary to make the impact of the penalty consistent with the impact 
of BIS penalties on other parties who committed similar violations.
    B. Denial of Export Privileges and Exclusion from Practice: In 
deciding whether a denial or exclusion order should be suspended, BIS 
may consider, for example, the adverse economic consequences of the 
order on the respondent, its employees, and other parties, as well as on 
the national interest in the competitiveness of U.S. businesses. An 
otherwise appropriate denial or exclusion order will be suspended on the 
basis of adverse economic consequences only if it is found that future 
export control violations are unlikely and if there are adequate 
measures (usually a substantial civil penalty) to achieve the necessary 
deterrent effect.

[69 FR 7870, Feb. 20, 2004, as amended at 75 FR 31681, June 4, 2010]



  Sec. Supplement No. 2 to Part 766--Guidance on Charging and Penalty 
    Determinations in Settlement of Administrative Enforcement Cases 
                      Involving Antiboycott Matters

    (a) Introduction.(1) Scope. This Supplement describes how the Office 
of Antiboycott Compliance (OAC) responds to violations of part 760 of 
the EAR ``Restrictive Trade Practices or Boycotts'' and to violations of 
part 762 ``Recordkeeping'' when the recordkeeping requirement pertains 
to part 760 (together referred to in this supplement as the 
``antiboycott provisions''). It also describes how BIS makes penalty 
determinations in the settlement of administrative enforcement cases 
brought under parts 764 and 766 of the EAR involving violations of the 
antiboycott provisions. This supplement does not apply to enforcement 
cases for violations of other provisions of the EAR.
    (2) Policy Regarding Settlement. Because many administrative 
enforcement cases are resolved through settlement, the process of 
settling such cases is integral to the enforcement program. BIS 
carefully considers each settlement offer in light of the facts and 
circumstances of the case, relevant precedent, and BIS's objective to 
achieve in each case an appropriate level of penalty and deterrent 
effect. In settlement negotiations, BIS encourages parties to provide, 
and will give serious consideration to, information and evidence that 
the parties believe is relevant to the application of this guidance to 
their cases, to whether a violation has in fact occurred, and to whether 
they have a defense to potential charges.
    (3) Limitation. BIS's policy and practice is to treat similarly 
situated cases similarly, taking into consideration that the facts and 
combination of mitigating and aggravating factors are different in each 
case. However, this guidance does not confer any right or impose any 
obligation regarding what posture or penalties BIS may seek in settling 
or litigating a case. Parties do not have a right to a settlement offer 
or particular settlement terms from BIS, regardless of settlement 
postures BIS has taken in other cases.
    (b) Responding to Violations. OAC within BIS investigates possible 
violations of Section 8 of the Export Administration Act of 1979, as 
amended (``Foreign Boycotts''), the antiboycott provisions of EAR, or 
any order or authorization related thereto. When BIS has reason to 
believe that such a violation has occurred, BIS may issue a warning 
letter or initiate an administrative enforcement proceeding. A violation 
may also be referred to the Department of Justice for criminal 
prosecution.
    (1) Issuing a warning letter. Warning letters represent BIS's belief 
that a violation has occurred. In the exercise of its discretion, BIS 
may determine in certain instances that issuing a warning letter, 
instead of bringing an administrative enforcement proceeding, will 
fulfill the appropriate enforcement objective. A warning letter will 
fully explain the violation.
    (i) BIS may issue warning letters where:
    (A) The investigation commenced as a result of a voluntary self-
disclosure satisfying the requirements ofSec. 764.8 of the EAR; or
    (B) The party has not previously committed violations of the 
antiboycott provisions.
    (ii) BIS may also consider the category of violation as discussed in 
paragraph (d)(2) of this supplement in determining whether to

[[Page 647]]

issue a warning letter or initiate an enforcement proceeding. A 
violation covered by Category C (failure to report or late reporting of 
receipt of boycott requests) might warrant a warning letter rather than 
initiation of an enforcement proceeding.
    (iii) BIS will not issue a warning letter if it concludes, based on 
available information, that a violation did not occur.
    (iv) BIS may reopen its investigation of a matter should it receive 
additional evidence or if it appears that information previously 
provided to BIS during the course of its investigation was incorrect.
    (2) Pursuing an administrative enforcement case. The issuance of a 
charging letter underSec. 766.3 of this part initiates an 
administrative proceeding.
    (i) Charging letters may be issued when there is reason to believe 
that a violation has occurred. Cases may be settled before or after the 
issuance of a charging letter. SeeSec. 766.18 of this part.
    (ii) Although not required to do so by law, BIS may send a proposed 
charging letter to a party to inform the party of the violations that 
BIS has reason to believe occurred and how BIS expects that those 
violations would be charged. Issuance of the proposed charging letter 
provides an opportunity for the party and BIS to consider settlement of 
the case prior to the initiation of formal enforcement proceedings.
    (3) Referring for criminal prosecution. In appropriate cases, BIS 
may refer a case to the Department of Justice for criminal prosecution, 
in addition to pursuing an administrative enforcement action.
    (c) Types of administrative sanctions. Administrative enforcement 
cases generally are settled on terms that include one or more of three 
administrative sanctions:
    (1) A monetary penalty may be assessed for each violation as 
provided inSec. 764.3(a)(1) of the EAR;

    Note to paragraph (c)(1): The maximum penalty is subject to 
adjustments under the Federal Civil Penalties Adjustment Act of 1990 (28 
U.S.C. 2461, note (2000)), which are codified at 15 CFR 6.4. For 
violations that occurred before March 9, 2006, the maximum monetary 
penalty per violation is $11,000. For violations occurring on or after 
March 9, 2006, the maximum monetary penalty per violation is $50,000.

    (2) An order denying a party's export privileges under the EAR may 
be issued, underSec. 764.3(a)(2) of the EAR; or
    (3) Exclusion from practice underSec. 764.3(a)(3) of the EAR.
    (d) How BIS determines what sanctions are appropriate in a 
settlement--(1) General Factors. BIS looks to the following general 
factors in determining what administrative sanctions are appropriate in 
each settlement.
    (i) Degree of seriousness. In order to violate the antiboycott 
provisions of the EAR, a U.S. person does not need to have actual 
``knowledge'' or a reason to know, as that term is defined inSec. 
772.1 of the EAR, of relevant U.S. laws and regulations. Typically, in 
cases that do not involve knowing violations, BIS will seek a settlement 
for payment of a civil penalty (unless the matter is resolved with a 
warning letter). However, in cases involving knowing violations, 
conscious disregard of the antiboycott provisions, or other such serious 
violations (e.g., furnishing prohibited information in response to a 
boycott questionnaire with knowledge that such furnishing is in 
violation of the EAR), BIS is more likely to seek a denial of export 
privileges or an exclusion from practice, and/or a greater monetary 
penalty as BIS considers such violations particularly egregious.
    (ii) Category of violations. In connection with its activities 
described in paragraph (a)(1) of this supplement, BIS recognizes three 
categories of violations under the antiboycott provisions of the EAR. 
(SeeSec. 760.2,Sec. 760.4 andSec. 760.5 of the EAR for examples of 
each type of violation other than recordkeeping). These categories 
reflect the relative seriousness of a violation, with Category A 
violations typically warranting the most stringent penalties, including 
up to the maximum monetary penalty, a denial order and/or an exclusion 
order. Through providing these categories in this penalty guidelines 
notice, BIS hopes to give parties a general sense of how it views the 
seriousness of various violations. This guidance, however, does not 
confer any right or impose any obligation as to what penalties BIS may 
impose based on its review of the specific facts of a case.
    (A) The Category A violations and the sections of the EAR that set 
forth their elements are:
    (1) Discriminating against U.S. persons on the basis of race, 
religion, sex, or national origin--Sec.  760.2(b);
    (2) Refusing to do business or agreeing to refuse to do business--
Sec.  760.2(a);
    (3) Furnishing information about race, religion, sex, or national 
origin of U.S. persons including, but not limited to, providing 
information in connection with a boycott questionnaire about the 
religion of employees--Sec.  760.2(c);
    (4) Evading the provisions of part 760--Sec.  760.4;
    (5) Furnishing information about business relationships with 
boycotted countries or blacklisted persons--Sec.  760.2(d); and
    (6) Implementing letters of credit--Sec.  760.2(f).
    (B) The Category B violations and the sections of the EAR that set 
forth their elements are:

[[Page 648]]

    (1) Furnishing information about associations with charitable or 
fraternal organizations which support a boycotted country--Sec.  
760.2(e); and
    (2) Making recordkeeping violations--part 762.
    (C) The Category C violation and the section of the EAR that sets 
forth its elements is: Failing to report timely receipt of boycott 
requests--Sec.  760.5.
    (iii) Violations arising out of related transactions. Frequently, a 
single transaction can give rise to multiple violations. Depending on 
the facts and circumstances, BIS may choose to impose a smaller or 
greater penalty per violation. In exercising its discretion, BIS 
typically looks to factors such as whether the violations resulted from 
conscious disregard of the requirements of the antiboycott provisions; 
whether they stemmed from the same underlying error or omission; and 
whether they resulted in distinguishable or separate harm. The three 
scenarios set forth below are illustrative of how BIS might view 
transactions that lead to multiple violations.
    (A) First scenario. An exporter enters into a sales agreement with a 
company in a boycotting country. In the course of the negotiations, the 
company sends the exporter a request for a signed statement certifying 
that the goods to be supplied do not originate in a boycotted country. 
The exporter provides the signed certification. Subsequently, the 
exporter fails to report the receipt of the request. The exporter has 
committed two violations of the antiboycott provisions, first, a 
violation ofSec. 760.2(d) for furnishing information concerning the 
past or present business relationships with or in a boycotted country, 
and second, a violation ofSec. 760.5 for failure to report the receipt 
of a request to engage in a restrictive trade practice or boycott. 
Although the supplier has committed two violations, BIS may impose a 
smaller mitigated penalty on a per violation basis than if the 
violations had stemmed from two separate transactions.
    (B) Second scenario. An exporter receives a boycott request to 
provide a statement that the goods at issue in a sales transaction do 
not contain raw materials from a boycotted country and to include the 
signed statement along with the invoice. The goods are shipped in ten 
separate shipments. Each shipment includes a copy of the invoice and a 
copy of the signed boycott-related statement. Each signed statement is a 
certification that has been furnished in violation ofSec. 760.2(d)'s 
bar on the furnishing of prohibited business information. Technically, 
the exporter has committed ten separate violations ofSec. 760.2(d) and 
one violation ofSec. 760.5 for failure to report receipt of the 
boycott request. Given that the violations arose from a single boycott 
request, however, BIS may treat the violations as related and impose a 
smaller penalty than it would if the furnishing had stemmed from ten 
separate requests.
    (C) Third scenario. An exporter has an ongoing relationship with a 
company in a boycotting country. The company places three separate 
orders for goods on different dates with the exporter. In connection 
with each order, the company requests the exporter to provide a signed 
statement certifying that the goods to be supplied do not originate in a 
boycotted country. The exporter provides a signed certification with 
each order of goods that it ships to the company. BIS has the discretion 
to penalize the furnishing of each of these three items of information 
as a separate violation ofSec. 760.2(d) of the EAR for furnishing 
information concerning past or present business relationships with or in 
a boycotted country.
    (iv) Multiple violations from unrelated transactions. In cases 
involving multiple unrelated violations, BIS is more likely to seek a 
denial of export privileges, an exclusion from practice, and/or a 
greater monetary penalty than in cases involving isolated incidents. For 
example, the repeated furnishing of prohibited boycott-related 
information about business relationships with or in boycotted countries 
during a long period of time could warrant a denial order, even if a 
single instance of furnishing such information might warrant only a 
monetary penalty. BIS takes this approach because multiple violations 
may indicate serious compliance problems and a resulting risk of future 
violations. BIS may consider whether a party has taken effective steps 
to address compliance concerns in determining whether multiple 
violations warrant a denial or exclusion order in a particular case.
    (v) Timing of settlement. UnderSec. 766.18 of this part, 
settlement can occur before a charging letter is served, while a case is 
before an administrative law judge, or while a case is before the Under 
Secretary for Industry and Security underSec. 766.22 of this part. 
However, early settlement--for example, before a charging letter has 
been filed--has the benefit of freeing resources for BIS to deploy in 
other matters. In contrast, for example, the BIS resources saved by 
settlement on the eve of an adversary hearing underSec. 766.13 of this 
part are fewer, insofar as BIS has already expended significant 
resources on discovery, motions practice, and trial preparation. Given 
the importance of allocating BIS resources to maximize enforcement of 
the EAR, BIS has an interest in encouraging early settlement and will 
take this interest into account in determining settlement terms.
    (vi) Related criminal or civil violations. Where an administrative 
enforcement matter under the antiboycott provisions involves conduct 
giving rise to related criminal

[[Page 649]]

charges, BIS may take into account the related violations and their 
resolution in determining what administrative sanctions are appropriate 
under part 766 of the EAR. A criminal conviction indicates serious, 
willful misconduct and an accordingly high risk of future violations, 
absent effective administrative sanctions. However, entry of a guilty 
plea can be a sign that a party accepts responsibility for complying 
with the antiboycott provisions and will take greater care to do so in 
the future. In appropriate cases where a party is receiving substantial 
criminal penalties, BIS may find that sufficient deterrence may be 
achieved by lesser administrative sanctions than would be appropriate in 
the absence of criminal penalties. Conversely, BIS might seek greater 
administrative sanctions in an otherwise similar case where a party is 
not subjected to criminal penalties. The presence of a related criminal 
or civil disposition may distinguish settlements among civil penalty 
cases that appear to be otherwise similar. As a result, the factors set 
forth for consideration in civil penalty settlements will often be 
applied differently in the context of a ``global settlement'' of both 
civil and criminal cases, or multiple civil cases involving other 
agencies, and may therefore be of limited utility as precedent for 
future cases, particularly those not involving a global settlement.
    (vii) Familiarity with the Antiboycott Provisions. Given the scope 
and detailed nature of the antiboycott provisions, BIS will consider 
whether a party is an experienced participant in the international 
business arena who may possess (or ought to possess) familiarity with 
the antiboycott laws. In this respect, the size of the party's business, 
the presence or absence of a legal division or corporate compliance 
program, and the extent of prior involvement in business with or in 
boycotted or boycotting countries, may be significant.
    (2) Specific mitigating and aggravating factors. In addition to the 
general factors described in paragraph (d)(1) of this supplement, BIS 
also generally looks to the presence or absence of the specific 
mitigating and aggravating factors in this paragraph in determining what 
sanctions should apply in a given settlement. These factors describe 
circumstances that, in BIS's experience, are commonly relevant to 
penalty determinations in settled cases. However, this listing of 
factors is not exhaustive and BIS may consider other factors that may 
further indicate the blameworthiness of a party's conduct, the actual or 
potential harm associated with a violation, the likelihood of future 
violations, and/or other considerations relevant to determining what 
sanctions are appropriate. The assignment of mitigating or aggravating 
factors will depend upon the attendant circumstances of the party's 
conduct. Thus, for example, one prior violation should be given less 
weight than a history of multiple violations, and a previous violation 
reported in a voluntary self-disclosure by a party whose overall 
compliance efforts are of high quality should be given less weight than 
previous violation(s) not involving such mitigating factors. Some of the 
mitigating factors listed in this paragraph are designated as having 
``great weight.'' When present, such a factor should ordinarily be given 
considerably more weight than a factor that is not so designated.
    (i) Specific mitigating factors.
    (A) Voluntary self-disclosure. (GREAT WEIGHT) The party has made a 
voluntary self-disclosure of the violation, satisfying the requirements 
ofSec. 764.8 of the EAR.
    (B) Effective compliance program. (GREAT WEIGHT)
    (1) General policy or program pertaining to Antiboycott Provisions. 
BIS will consider whether a party's compliance efforts uncovered a 
problem, thereby preventing further violations, and whether the party 
has taken steps to address compliance concerns raised by the violation, 
including steps to prevent recurrence of the violation, that are 
reasonably calculated to be effective. The focus is on the party's 
demonstrated compliance with the antiboycott provisions. Whether a party 
has an effective export compliance program covering other provisions of 
the EAR is not relevant as a mitigating factor. In the case of a party 
that has done previous business with or in boycotted countries or 
boycotting countries, BIS will examine whether the party has an 
effective antiboycott compliance program and whether its overall 
antiboycott compliance efforts have been of high quality. BIS may deem 
it appropriate to review the party's internal business documents 
relating to antiboycott compliance (e.g., corporate compliance manuals, 
employee training materials).
    (2) Compliance with reporting and recordkeeping requirements. In the 
case of a party that has received reportable boycott requests in the 
past, BIS may examine whether the party complied with the reporting and 
recordkeeping requirements of the antiboycott provisions.
    (C) Limited business with or in boycotted or boycotting countries. 
The party has had little to no previous experience in conducting 
business with or in boycotted or boycotting countries. Prior to the 
current enforcement proceeding, the party had not engaged in business 
with or in such countries, or had only transacted such business on 
isolated occasions. BIS may examine the volume of business that the 
party has conducted with or in boycotted or boycotting countries as 
demonstrated by the size and dollar amount of transactions or the 
percentage of a party's overall business that such business constitutes.

[[Page 650]]

    (D) History of compliance with the Antiboycott Provisions of the 
EAR.
    (1) BIS will consider it to be a mitigating factor if:
    (i) The party has never been convicted of a criminal violation of 
the antiboycott provisions;
    (ii) In the past 5 years, the party has not entered into a 
settlement or been found liable in a boycott-related administrative 
enforcement case with BIS or another U.S. government agency;
    (iii) In the past 3 years, the party has not received a warning 
letter from BIS relating to the antiboycott provisions; or
    (iv) In the past 5 years, the party has not otherwise violated the 
antiboycott provisions.
    (2) Where necessary to ensure effective enforcement, the prior 
involvement in violations of the antiboycott provisions of a party's 
owners, directors, officers, partners, or other related persons may be 
imputed to a party in determining whether these criteria are satisfied. 
When an acquiring firm takes reasonable steps to uncover, correct, and 
disclose to BIS conduct that gave rise to violations that the acquired 
business committed before the acquisition, BIS typically will not take 
such violations into account in applying this factor in settling other 
violations by the acquiring firm.
    (E) Exceptional cooperation with the investigation. The party has 
provided exceptional cooperation to OAC during the course of the 
investigation.
    (F) Clarity of request to furnish prohibited information or take 
prohibited action. The party responded to a request to furnish 
information or take action that was ambiguously worded or vague.
    (G) Violations arising out of a party's ``passive'' refusal to do 
business in connection with an agreement. The party has acquiesced in or 
abided by terms or conditions that constitute a prohibited refusal to do 
business (e.g., responded to a tender document that contains prohibited 
language by sending a bid). See ``active'' agreements to refuse to do 
business in paragraph (d)(2)(ii)(I) of this supplement.
    (H) Isolated occurrence of violation. The violation was an isolated 
occurrence. (Compare to long duration or high frequency of violations as 
an aggravating factor in paragraph (d)(2)(ii)(F) of this supplement.)
    (ii) Specific Aggravating Factors.
    (A) Concealment or obstruction. The party made a deliberate effort 
to hide or conceal the violation. (GREAT WEIGHT)
    (B) Serious disregard for compliance responsibilities. (GREAT 
WEIGHT] There is evidence that the party's conduct demonstrated a 
serious disregard for responsibilities associated with compliance with 
the antiboycott provisions (e.g.: knowing violation of party's own 
compliance policy or evidence that a party chose to treat potential 
penalties as a cost of doing business rather than develop a compliance 
policy).
    (C) History of compliance with the Antiboycott Provisions.
    (1) BIS will consider it to be an aggravating factor if:
    (i) The party has been convicted of a criminal violation of the 
antiboycott provisions;
    (ii) In the past 5 years, the party has entered into a settlement or 
been found liable in a boycott-related administrative enforcement case 
with BIS or another U.S. government agency;
    (iii) In the past 3 years, the party has received a warning letter 
from BIS relating to the antiboycott provisions; or
    (iv) In the past 5 years, the party has otherwise violated the 
antiboycott provisions.
    (2) Where necessary to ensure effective enforcement, the prior 
involvement in violations of the antiboycott provisions of a party's 
owners, directors, officers, partners, or other related persons may be 
imputed to a party in determining whether these criteria are satisfied.
    (3) When an acquiring firm takes reasonable steps to uncover, 
correct, and disclose to BIS conduct that gave rise to violations that 
the acquired firm committed before being acquired, BIS typically will 
not take such violations into account in applying this factor in 
settling other violations by the acquiring firm.
    (D) Familiarity with the type of transaction at issue in the 
violation. For example, in the case of a violation involving a letter of 
credit or related financial document, the party routinely pays, 
negotiates, confirms, or otherwise implements letters of credit or 
related financial documents in the course of its standard business 
practices.
    (E) Prior history of business with or in boycotted countries or 
boycotting countries. The party has a prior history of conducting 
business with or in boycotted and boycotting countries. BIS may examine 
the volume of business that the party has conducted with or in boycotted 
and boycotting countries as reflected by the size and dollar amount of 
transactions or the percentage of a party's overall business that such 
business constitutes.
    (F) Long duration or high frequency of violations. Violations that 
occur at frequent intervals or repeated violations occurring over an 
extended period of time may be treated more seriously than a single 
violation or related violations that are committed within a brief period 
of time, particularly if the violations are committed by a party with a 
history of business with or in boycotted and boycotting countries. 
(Compare to isolated occurrence of violation in paragraph (d)(2)(i)(H) 
of this supplement.)

[[Page 651]]

    (G) Clarity of request to furnish prohibited information or take 
prohibited action. The request to furnish information or take other 
prohibited action (e.g., enter into agreement to refuse to do business 
with a boycotted country or entity blacklisted by a boycotting country) 
is facially clear as to its intended purpose.
    (H) Violation relating to specific information concerning an 
individual entity or individual. The party has furnished prohibited 
information about business relationships with specific companies or 
individuals.
    (I) Violations relating to ``active'' conduct concerning an 
agreement to refuse to do business. The party has taken action that 
involves altering, editing, or enhancing prohibited terms or language in 
an agreement to refuse to do business, including a letter of credit, or 
drafting a clause or provision including prohibited terms or language in 
the course of negotiating an agreement to refuse to do business, 
including a letter of credit. See ``passive'' agreements to refuse to do 
business in paragraph (d)(2)(i)(G) of this supplement.
    (e) Determination of Scope of Denial or Exclusion Order. In deciding 
whether and what scope of denial or exclusion order is appropriate, the 
following factors are particularly relevant: The presence of mitigating 
or aggravating factors of great weight; the degree of seriousness 
involved; the extent to which senior management participated in or was 
aware of the conduct in question; the number of violations; the 
existence and seriousness of prior violations; the likelihood of future 
violations (taking into account relevant efforts to comply with the 
antiboycott provisions); and whether a civil monetary penalty can be 
expected to have a sufficient deterrent effect.
    (f) How BIS Makes Suspension and Deferral Decisions--(1) Civil 
Penalties. In appropriate cases, payment of a civil monetary penalty may 
be deferred or suspended. SeeSec. 764.3(a)(1)(iii) of the EAR. In 
determining whether suspension or deferral is appropriate, BIS may 
consider, for example, whether the party has demonstrated a limited 
ability to pay a penalty that would be appropriate for such violations, 
so that suspended or deferred payment can be expected to have sufficient 
deterrent value, and whether, in light of all the circumstances, such 
suspension or deferral is necessary to make the impact of the penalty 
consistent with the impact of BIS penalties on other parties who 
committed similar violations.
    (2) Denial of Export Privileges and Exclusion from Practice. In 
deciding whether a denial or exclusion order should be suspended, BIS 
may consider, for example, the adverse economic consequences of the 
order on the party, its employees, and other persons, as well as on the 
national interest in maintaining or promoting the competitiveness of 
U.S. businesses. An otherwise appropriate denial or exclusion order will 
be suspended on the basis of adverse economic consequences only if it is 
found that future violations of the antiboycott provisions are unlikely 
and if there are adequate measures (usually a substantial civil monetary 
penalty) to achieve the necessary deterrent effect.

[72 FR 39006, July 17, 2007]



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. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 
2012, 77 FR 49699 (August 16, 2012).

    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

[[Page 652]]

U.S. Munitions List and that were transferred to the Commerce Control 
List consistent with E.O. 13026 of November 15, 1996 (61 FR 58767) and 
pursuant to the Presidential Memorandum of that date, which shall not be 
subject to any mandatory foreign availability review procedures.
    (c) Types of programs. There are two general programs of foreign 
availability:
    (1) Foreign availability to controlled countries. In this category 
are denied license assessments (see 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 (seeSec. 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. (SeeSec. 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. (SeeSec. 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. (SeeSec. 768.8 of this 
part).

[[Page 653]]

    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 (SeeSec. 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. (SeeSec. 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 (SeeSec. 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. (SeeSec. 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 654]]

    (1) Foreign availability to a controlled country; and
    (2) Foreign availability to a non-controlled country.

    Note to paragraph (b) of this section: SeeSec. 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 (seeSec. 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. SeeSec. 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, Room H-1093, 14th

[[Page 655]]

Street and Pennsylvania Avenue, NW, Washington, DC 20230.

[61 FR 12915, Mar. 25, 1996, as amended at 72 FR 25196, May 4, 2007]



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 inSec. 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 inSec. 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.

[[Page 656]]



Sec.  768.7  Procedures.

    (a) Initiation of an assessment. (1) Once BIS accepts a FAS or TAC 
certification of foreign availability, BIS will notify 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

[[Page 657]]

will provide all interested agencies and departments an opportunity to 
review source material, draft analyses and draft assessments immediately 
upon their receipt or production. For claimant-initiated assessments, 
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

[[Page 658]]

country during the 6 month period to eliminate the availability.
    (2) There are two types of National Security Overrides:
    (i) An NSO of a determination of foreign availability resulting from 
an assessment initiated pursuant to section 5(f) of the EAA (claimant 
and self-initiated assessments); and
    (ii) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(h) of the EAA (TAC-
certification assessments).
    (3) For an NSO resulting from an assessment initiated under section 
5(f) of the EAA, the Secretary of any agency may recommend that the 
President exercise the authority under the EAA to retain the controls or 
deny the license notwithstanding the finding of foreign availability.
    (4) For an NSO resulting from an assessment initiated under section 
5(h) of the EAA, the Secretary of Commerce may recommend that the 
President exercise the authority under the EAA to retain the controls 
notwithstanding the finding of foreign availability.
    (5) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on International Relations of 
the House of Representatives will be notified of the initiation of the 
required negotiations. The notice will include an explanation of the 
national security interest that necessitates the retention of controls.
    (6) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, 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:

[[Page 659]]

    (1) The item must be available-in-fact to the specified
    non-controlled country from a foreign source;
    (2) The item must be of a quality similar to that of the U.S.-
controlled item; and
    (3) The item must be available-in-fact to the specified non-
controlled country without effective restrictions.
    (e) Within 30 days of initiation of the evaluation, the Secretary of 
Commerce will make a determination of foreign availability on the basis 
of the 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, Room H-1093, 14th Street and 
Pennsylvania Avenue, NW., Washington, DC 20230.

[61 FR 12915, Mar. 25, 1996, as amended at 72 FR 25196, May 4, 2007]



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.



   Sec. 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

[[Page 660]]

evidence according to the provisions inSec. 768.7(c) of this part in 
order for it to be used in support of a foreign availability 
determination. This list is illustrative only.
    (1) Available-in-fact:
    (i) Evidence of marketing of an item in a foreign country (e.g., an 
advertisement in the media of the foreign country that the item is for 
sale there);
    (ii) Copies of sales receipts demonstrating sales to foreign 
countries;
    (iii) The terms of a contract under which the item has been or is 
being sold to a foreign country;
    (iv) Information, preferably in writing, from an appropriate foreign 
government official that the government will not deny the sale of an 
item it produces to another country in accordance with its laws and 
regulations;
    (v) Information, preferably in writing, from a named company 
official that the company legally can and would sell an item it produces 
to a foreign country;
    (vi) Evidence of actual shipments of the item to foreign countries 
(e.g., shipping documents, photographs, news reports);
    (vii) An eyewitness report of such an item in operation in a foreign 
country, providing as much information as available, including where 
possible the make and model of the item and its observed operating 
characteristics;
    (viii) Evidence of the presence of sales personnel or technical 
service personnel in a foreign country;
    (ix) Evidence of production within a foreign country;
    (x) Evidence of the item being exhibited at a trade fair in a 
foreign country, particularly for the purpose of inducing sales of the 
item to the foreign country;
    (xi) A copy of the export control laws or regulations of the source 
country, showing that the item is not controlled; or
    (xii) A catalog or brochure indicating the item is for sale in a 
specific country.
    (2) Foreign (non-U.S.) source:
    (i) Names of foreign manufacturers of the item including, if 
possible, addresses and telephone numbers;
    (ii) A report from a reputable source of information on commercial 
relationships that a foreign manufacturer is not linked financially or 
administratively with a U.S. company;
    (iii) A list of the components in the U.S. item and foreign item 
indicating model numbers and their sources;
    (iv) A schematic of the foreign item identifying its components and 
their sources;
    (v) Evidence that the item is a direct product of foreign technology 
(e.g., a patent law suit lost by a U.S. producer, a foreign patent);
    (vi) Evidence of indigenous technology, production facilities, and 
the capabilities at those facilities; or
    (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 provisionSec. 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 661]]



    Sec. 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 15, 
2012, 77 FR 49699 (August 16, 2012).



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 Number (ECCN) 2A001 (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) [Reserved]
    (d) Interpretation 4: Telecommunications equipment and systems. 
Control equipment for paging systems (broadcast radio or selectively 
signalled receiving systems) is defined as circuit switching equipment 
in Category 5 of the CCL.
    (e) Interpretation 5: Numerical control systems--(1) Classification 
of ``Numerical Control'' Units. ``Numerical control'' units for machine 
tools, regardless of their configurations or architectures, are 
controlled by their functional characteristics as described in ECCN 
2B001.a. ``Numerical control'' units include computers with add-on 
``motion control boards''. A computer with add-on ``motion control 
boards'' for machine tools may be controlled under ECCN 2B001.a even 
when the computer alone without ``motion control boards'' is not subject 
to licensing requirements under Category 4 and the ``motion control 
boards'' are not controlled under ECCN 2B001.b.
    (2) Export documentation requirement. (i) When preparing a license 
application for a numerical control system,

[[Page 662]]

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 Directorate 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: Ground vehicles. (1) The U.S. Department of 
Commerce, Bureau of Industry and Security has export licensing 
jurisdiction over ground transport vehicles (including trailers), parts, 
and components therefor specially designed or modified for non-combat 
military use. Vehicles in this category are primarily transport vehicles 
designed or modified for transporting cargo, personnel and/or equipment, 
or to move other vehicles and equipment over land and roads in close 
support of fighting vehicles and troops. The U.S. Department of 
Commerce, Bureau of Industry and Security also has export licensing 
jurisdiction over unarmed all-wheel drive vehicles capable of off-road 
use which have been manufactured or fitted with materials to provide 
ballistic protection, including protection to level III (National 
Institute of Justice Standard 0108.01, September 1985) or better if they 
do not have armor described in 22 CFR part 121, Category XIII. In this 
section, and in ECCN 9A018, the word ``unarmed'' means not having 
weapons installed, not having mountings for weapons installed, and not 
having special reinforcements for mountings for weapons.
    (2) Modification of a ground vehicle for military use entails a 
structural, electrical or mechanical change involving one or more 
specially designed military components. Such components include, but are 
not limited to:

[[Page 663]]

    (i) Pneumatic tire casings of a kind designed to be bullet-proof or 
to run when deflated;
    (ii) Tire inflation pressure control systems, operated from inside a 
moving vehicle;
    (iii) Armored protection of vital parts, (e.g., fuel tanks or 
vehicle cabs); and
    (iv) Special reinforcements for mountings for weapons.
    (3) Scope of ECCN 9A018.b. Ground transport vehicles (including 
trailers) and parts and components therefor specially designed or 
modified for non-combat military use are controlled by ECCN 9A018.b. 
Unarmed all-wheel drive vehicles capable of off-road use that are not 
described in paragraph (h)(4) of this section and which have been 
manufactured or fitted with materials to provide ballistic protection to 
level III (National Institute of Justice Standard 0108.01, September 
1985) or better are controlled by ECCN 9A018.b. ECCN 9A018.b. does not 
cover civil automobiles, or trucks designed or modified for transporting 
money or valuables, having armored or ballistic protection, even if the 
automobiles or trucks incorporate items described in paragraphs (h)(2) 
(i), (ii), or (iii) of this section. In this section, the term ``civil 
automobile'' means a passenger car, limousine, van or sport utility 
vehicle designed for the transportation of passengers and marketed 
through civilian channels in the United States, but does not include any 
all-wheel drive vehicle capable of off-road use which has been 
manufactured or fitted with materials to provide ballistic protection at 
level III (National Institute of Justice Standard 0108.01, September 
1985) or better, nor does it include any vehicle described in paragraph 
(h)(4) of this section. Ground vehicles that are not described in 
paragraph (h)(4) of this section and that are not covered by either ECCN 
9A018.b or 9A990 are EAR99, meaning that they are subject to the EAR, 
but not listed in any specific ECCN.
    (4) Related control. The Department of State, Directorate of Defense 
Trade Controls has export licensing jurisdiction for all military ground 
armed or armored vehicles and parts and components specific thereto as 
described in 22 CFR part 121, Category VII. The Department of State, 
Directorate of Defense Trade Controls also has export licensing 
jurisdiction for all-wheel drive vehicles capable of off-road use that 
have been armed or armored with articles described in 22 CFR part 121 or 
that have been manufactured or fitted with special reinforcements for 
mounting arms or other specialized military equipment described in 22 
CFR part 121.
    (i) Interpretation 9: Civil aircraft and Civil aircraft equipment 
(including parts, accessories, attachments, components, and related 
training equipment). Aircraft and related training equipment, 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, 
parts, accessories and components are subject to the EAR and under the 
export licensing authority of the U.S. Department of Commerce, as 
follows:
    (1) Aircraft and related training equipment. (i) Aircraft not 
specifically designed, modified or equipped for military purposes, and
    (ii) The following aircraft, so long as they have not been 
specifically equipped, re-equipped, or modified for military operations:
    (A) Cargo aircraft bearing ``C'' designations and numbered C-45 
through C-118 inclusive, C-121 through C-125 inclusive, and C-131, using 
reciprocating engines only.
    (B) Trainer aircraft bearing ``T'' designations and using 
reciprocating engines or turboprop engines with less than 600 horsepower 
(s.h.p.).
    (C) Utility aircraft bearing ``U'' designations and using 
reciprocating engines only.
    (D) All liaison aircraft bearing an ``L'' designation.
    (E) All observation aircraft bearing ``O'' designations and using 
reciprocating engines.
    (2) Engines. (i) All reciprocating engines, and
    (ii) All other aircraft engines not specifically designed or 
modified for military aircraft, except those defined in category VIII(f) 
of 22 CFR part 121.
    (3) Components, parts, accessories, attachments, and associated 
equipment.

[[Page 664]]

Any aircraft tires as well as any components, parts, accessories, 
attachments and associated equipment that are not specifically designed 
or modified for aircraft on the Munitions List and all components and 
parts not on the Munitions List by virtue of the criteria set forth in 
the note to Category VIII(h) of 22 CFR part 121.
    (j) Interpretation 10: Civil aircraft inertial navigation equipment. 
(1) The Department of Commerce has licensing jurisdiction over exports 
and reexports to all destinations of inertial navigation systems, 
inertial navigation equipment, and specially designed components 
therefor for ``civil aircraft''.
    (2) The Department of State, retains jurisdiction over all software 
and technology for inertial navigation systems and navigation equipment, 
and specially designed components therefor, for shipborne use, 
underwater use, ground vehicle use, spaceborne use or use other than 
``civil aircraft''.
    (k) Interpretation 11: Precursor chemicals. The following chemicals 
are controlled by ECCN 1C350. The appropriate Chemical Abstract Service 
Registry (C.A.S.) number and synonyms (i.e., alternative names) are 
included to help you determine whether 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

[[Page 665]]

    (12) (C.A.S. 96-80-0) N,N-Diisopropyl-.beta.-aminoethanol
    N,N-Diisopropyl-2-aminoethanol
    2-(Diisopropylamino) ethanol
    (N,N-Diisopropylamino) ethanol
    2-(Diisopropylamino) ethyl alcohol
    N,N-Diisopropylethanolamine
    (13) (C.A.S. 96-79-7) N,N-Diisopropyl-.beta.-aminoethyl 
chloride
    2-Chloro-N,N-diisopropylethanamine
    1-Chloro-N,N-diisopropylaminoethane
    2-Chloro-N,N-diisopropylethylamine
    N-(2-chloroethyl)-N-(1-methylethyl)-2-propanamine
    N-(2-Chloroethyl) diisopropylamine
    N,N-Diisopropyl-2-chloroethylamine
    1-(Diisopropylamino)-2-cholorethane
    2-(Diisopropylamino)ethyl chloride
    Diisopropylaminoethyl chloride
    .beta.-Diisopropylaminoethyl chloride
    (14) (C.A.S. 108-18-9) Diisopropylamine
    N,N-Diisopropylamine
    N-(1-Methylethyl)-2-propanamine
    (15) (C.A.S. 6163-75-3) Dimethyl ethylphosphonate
    Dimethyl ethanephosphonate
    Ethylphosphonic acid dimethyl ester
    (16) (C.A.S. 756-79-6) Dimethyl methylphosphonate
    Dimethoxymethyl phosphine oxide
    Dimethyl methanephosphonate
    Methanephosphonic acid dimethyl ester
    Methylphosphonic acid dimethyl ester
    (17) (C.A.S. 868-85-9) Dimethyl phosphite
    Dimethoxyphosphine oxide
    Dimethyl acid phosphite
    Dimethyl hydrogen phosphite
    Dimethyl phosphonate
    Hydrogen dimethyl phosphite
    Methyl phosphate
    (18) (C.A.S. 124-40-3) Dimethylamine
    N-Methyl methanamine
    (19) (C.A.S. 506-59-2) Dimethylamine hydrochloride
    Dimethylammonium chloride
    N-Methyl methanamine hydrochloride
    (20) [Reserved]
    (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) [Reserved]
    (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)-(31) [Reserved]
    (32) (C.A.S. 10025-87-3) Phosphorus oxychloride
    Phosphonyl trichloride
    Phosphoric chloride
    Phosphoric trichloride
    Phosphoroxychloride
    Phosphoroxytrichloride
    Phosphorus chloride oxide
    Phosphorus monoxide trichloride
    Phosphorus oxide trichloride
    Phosphorus oxytrichloride
    Phosphorus trichloride oxide
    Phosphoryl trichloride
    Trichlorophosphine oxide
    Trichlorophosphorus oxide
    (33) (C.A.S. 10026-13-8) Phosphorus pentachloride
    Pentachlorophosphorane
    Pentachlorophosphorus
    Phosphoric chloride
    Phosphorus(V) chloride
    Phosphorus perchloride
    (34) (C.A.S. 1314-80-3) Phosphorus pentasulfide
    Diphosphorus pentasulfide
    Phosphoric sulfide
    Phosphorus persulfide

[[Page 666]]

    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''-Nitrilotriethanol
    2,2',2''-Nitrilotris(ethanol)
    TEA
    TEA (amino alcohol)
    Tri (2-hydroxyethyl) amine
    Triethanolamin
    Tris (.beta.-hydroxyethyl) amine
    Tris (2-hydroxyethyl) amine
    Trolamine
    (52) (C.A.S. 637-39-8) Triethanolamine hydrochloride
    (53) (C.A.S. 122-52-1) Triethyl phosphite
    Phosphorous acid triethyl ester
    Triethoxyphosphine
    Tris(ethoxy)phosphine
    (54) (C.A.S. 121-45-9) Trimethyl phosphite
    Phosphorus acid trimethyl ester
    Trimethoxyphosphine
    (l) Interpretation 12: Computers.
    (l) Interpretation 12: Computers. (1) Digital computers or computer 
systems classified under ECCN 4A003.b or .c, that qualify for ``No 
License Required'' (NLR) must be evaluated on the basis of Adjusted Peak 
Performance (APP) alone, to the exclusion of all other technical 
parameters. Digital computers or computer systems classified under ECCN 
4A003.b or .c that qualify for License Exception APP must be evaluated 
on the basis of APP, to the

[[Page 667]]

exclusion of all other technical parameters, except for ECCN 4A003.e 
(equipment performing analog-to-digital conversions exceeding the limits 
in ECCN 3A001.a.5.a). Assemblies performing analog-to-digital 
conversions are evaluated under Category 3--Electronics, ECCN 
3A001.a.5.a.
    (2) Related equipment classified under ECCN 4A003.e 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 APP 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.

[61 FR 12920, Mar. 25, 1996]

    Editorial Note: For Federal Register citations affectingSec. 
770.2, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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 inSec. 740.13(a) of the EAR; sales 
technology described inSec. 740.13(b) of the EAR; and software updates 
described inSec. 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 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 inSec. 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 inSec. 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.

[[Page 668]]

    (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 inSec. 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 inSec. 
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 inSec. 
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]



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 15, 
2012, 77 FR 49699 (August 16, 2012).

    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.

[[Page 669]]

    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).
    Adjusted Peak Performance (APP). (Cat 4) An adjusted peak rate at 
which ``digital computers'' perform 64-bit or larger floating point 
additions and multiplications. The formula to calculate APP is contained 
in a technical note at the end of Category 4 of the Commerce Control 
List.
    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 106-387) 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 (seeSec. 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 and Sudan 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

[[Page 670]]

or hire, pursuant to authorization by the U.S. Government or a foreign 
government.
    Airship. (Cat 9) A power-driven airborne vehicle that is kept 
buoyant by a body of gas (usually helium, formerly hydrogen) which is 
lighter than air.
    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 or measuring 
errors for the particular coordinate measuring machine are considered.
    Allocated by the ITU. (Cat 3 and Cat 5 part 1)--The allocation of 
frequency bands according to the current edition of the ITU Radio 
Regulations for primary, permitted and secondary services.

    N.B. Additional and alternative allocations are not included.

    Angle random walk. (Cat 7) The angular error buildup with time that 
is due to white noise in angular rate. (IEEE STD 528-2001)
    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'').
    ``APP'' See ``Adjusted Peak Performance.'' This term may also appear 
without quotation marks.
    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. SeeSec. 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.

    Australia Group. The countries participating in the Australia Group 
have agreed to adopt harmonized controls on certain dual-use chemicals 
(i.e., precursor chemicals), biological agents, related manufacturing 
facilities and equipment, and related technology in order to ensure that 
exports of these items do not contribute to the proliferation of 
chemical or biological weapons. Countries participating in the Australia 
Group as of July 1, 2007, include: Argentina, Australia, Austria, 
Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, 
Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, 
Italy, Japan, Korea (South), Latvia, Lithuania, Luxembourg, Malta, the 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak 
Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, the 
United Kingdom, and the United States. See alsoSec. 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.
    Average Output Power. (Cat 6) The average output power is the total 
``laser'' output energy, in joules, divided by the period over which a 
series of consecutive pulses is emitted, in seconds. For a series of 
uniformly spaced pulses it is equal to the total ``laser'' output energy 
in a single pulse, in joules, multiplied by the pulse frequency of the 
``laser,'' in Hertz.
    Bank. Means any of the following:
    (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

[[Page 671]]

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)--The average over a specified time of 
accelerometer output measured at specified operating conditions, that 
has no correlation with input acceleration or rotation. ``Bias'' is 
expressed in g or in meters per second \2\ (g or m/s \2\) (IEEE Std 528-
2001) (Micro g equals 1x10-6 g).
    ``Bias''. (gyro) (Cat 7) The average over a specified time of gyro 
output measured at specified operating conditions that has no 
correlation with input rotation or acceleration. ``Bias'' is typically 
expressed in degrees per hour (deg/hr). (IEEE Std 528-2001).
    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. SeeSec. 738.2(b) of the EAR.
    Camming. (axial displacement) (Cat 2)--Axial displacement in one 
revolution of the main spindle measured in a plane perpendicular to the 
spindle faceplate, at a point next to the circumference of the spindle 
faceplate (Ref.: ISO 230 Part 1-1986, paragraph 5.63).
    Canadian airline. Any citizen of Canada who is authorized by the 
Canadian

[[Page 672]]

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. SeeSec. 
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.
    `` Circular Error Probable'' (``CEP''). (Cat 7) 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.
    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, 3, 4, 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: Australia, Belgium, Canada, Denmark, 
France, Germany, Greece, Italy, Japan, Luxembourg, Netherlands, Norway, 
Portugal, Spain, Turkey, United Kingdom, and United States.
    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.
    Communications Channel Controller. (Cat 4)--The physical interface 
which 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.
    Commodity. Any article, material, or supply except technology and 
software.
    Compensation systems. (Cat 6) Consist of the primary scalar sensor, 
one or more reference sensors (e.g., vector magnetometers) together with 
software that permit reduction of rigid body rotation noise of the 
platform.
    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 673]]

    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''.
    ``III/V compounds''. (Cat 3 and 6) 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-aluminum arsenide, indium phosphide).
    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. Countries designated controlled for national 
security purposes under authority delegated to the Secretary of Commerce 
by Executive Order 12214 of May 2, 1980 pursuant to section 5(b) of the 
EAA. The controlled countries are: Albania, Armenia, Azerbaijan, 
Belarus, Cambodia, Cuba, the People's Republic of China, Georgia, Iraq, 
Kazakstan, Kyrgyzstan, Laos, Macau, Moldova, Mongolia, North Korea, 
Russia, Tajikstan, Turkmenistan, Ukraine, Uzbekistan, and Vietnam. All 
of the controlled countries except Cuba are listed in Country Group D:1 
of the EAR. Cuba is listed in Country Group E:2. 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 
Sec.  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, 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, 5P1, 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 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.


[[Page 674]]


    ``Cryptographic activation'' (Cat 5P2) Any technique that activates 
or enables cryptographic capability, via a secure mechanism that is 
implemented by the manufacturer of the item and is uniquely bound to the 
item or customer for which the cryptographic capability is being 
activated or enabled (e.g., a serial number-based license key or an 
authentication instrument such as a digitally signed certificate).
    Technical Note to definition of ``Cryptographic activation'': 
``Cryptographic activation'' techniques and mechanisms may be 
implemented as hardware, ``software'' or ``technology''.
    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.
    CW Laser. (Cat 6) A CW (Continuous Wave) laser is defined as a laser 
that produces a nominally constant output energy for greater than 0.25 
seconds.
    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.

    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'')

[[Page 675]]

    Direct-acting hydraulic pressing. (Cat 2)--A deformation process 
that uses a fluid-filled flexible bladder in direct contact with the 
workpiece.
    Directorate of Defense Trade Controls (DDTC). The office at the 
Department of State, formerly known as the Office of Defense Trade 
Controls and before that 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.)
    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 (seeSec. 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 4) 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 and 5 Part 
1)--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

[[Page 676]]

by the Department of State for encryption items.
    Encryption object code. Computer programs containing an encryption 
source code that has been compiled into a form of code that can be 
directly executed by a computer to perform an encryption function.
    Encryption software. Computer programs that provide capability of 
encryption functions or confidentiality of information or information 
systems. Such software includes source code, object code, applications 
software, or system software.
    Encryption source code. A precise set of operating instructions to a 
computer that, when compiled, allows for the 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.
    Energetic materials. (Cat 1) Substances or mixtures that react 
chemically to release energy required for their intended application. 
``Explosives'', ``pyrotechnics'' and ``propellants'' are subclasses of 
energetic materials.
    Equivalent Density. (Cat 6)--The mass of an optic per unit optical 
area projected onto the optical surface.
    Expert systems. (Cat 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).
    Explosives. (Cat 1)--see Annex ``List of Explosives'' located at the 
end of Category 1 of Supplement No. 1 to Part 774 ``Commerce Control 
List''.
    Export. Export means an actual shipment or transmission of items out 
of the United States. (SeeSec. 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--The body authorized by Executive 
Order 12002 as amended by Executive Orders 12755 and 13286. The Export 
Administration Review Board's role in license application review is in 
accordance with Executive Order 12981 as amended by Executive Orders 
13020, 13026 and 13117.
    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. ReferenceSec. 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

[[Page 677]]

Manifest of Goods, Subject to Customs Inspection and Permit, when used 
for Transportation and Exportation (T.& E.) or Immediate Exportation 
(I.E.); and any other document issued by a U.S. Government agency as 
evidence of the existence of a license for the purpose of loading onto 
an exporting carrier or otherwise facilitating or effecting an export 
from the United States or any reexport of any item requiring a license.
    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

[[Page 678]]

insurance or the reinsuring of risks; or 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 and 8)--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.

    Food. Specific to exports and reexports to North Korea and Syria, 
food means items that are consumed by and provide nutrition to humans 
and animals, and seeds, with the exception of castor bean seeds, that 
germinate into items that will be consumed by and provide nutrition to 
humans and animals. (Food does not include alcoholic beverages.)
    Foreign government agency. For the purposes of exemption from 
support documentation (seeSec. 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.

[[Page 679]]

    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 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, 5P1, 5P2)--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 time (i.e., delay), 
taken by a signal, when switched from an initial specified output 
frequency, to arrive at or within  0.05% of a 
final specified output frequency. Items having a specified frequency 
range of less than  0.05% around their centre 
frequency are defined to be incapable of frequency switching.
    ``Frequency synthesizer''. (Cat 3)-- Any kind of frequency source, 
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.
    Fuel cell. (Cat 8) An electrochemical device that converts chemical 
energy directly into Direct Current (DC) electricity by consuming fuel 
from an external source.
    Full Authority Digital Engine Control Systems. (``FADEC Systems'') 
(Cat 7 and 9) A digital electronic control system for a gas turbine 
engine that is able to autonomously control the engine throughout its 
whole operating range from demanded engine start until demanded engine 
shut-down, in both normal and fault conditions.
    Fusible. (Cat 1)--Capable of being cross-linked or polymerized 
further (cured) by the use of heat, radiation, catalysts, etc., or that 
can be melted without pyrolysis (charring).
    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 inSec. 750.4(b) of 
the EAR. Encryption review requests may be placed on hold without action 
status as provided inSec. 740.17(d)(2) andSec. 742.15(b)(2) of the 
EAR.
    Hot isostatic densification. (Cat 2)--A process of pressurizing a 
casting at

[[Page 680]]

temperatures exceeding 375 K (102 [deg]C) in a closed cavity through 
various media (gas, liquid, solid particles, etc.) to create equal force 
in all directions to reduce or eliminate internal voids in the casting.
    Hybrid computer. (Cat 4)--Equipment that can:
    (a) Accept data;
    (b) Process data, in both analog and digital representation; and
    (c) Provide output of data.
    Hybrid integrated circuit. (Cat 3)--Any combination of integrated 
circuit(s), or integrated circuit with ``circuit elements'' or 
``discrete components'' connected together to perform (a) specific 
function(s), and having all of the following criteria:
    (a) Containing at least one unencapsulated device;
    (b) Connected together using typical IC-production methods;
    (c) Replaceable as an entity; and
    (d) Not normally capable of being disassembled.

    Notes: 1. ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode, one transistor, one 
resistor, one capacitor, etc.
    2. ``Discrete component'': a separately packaged ``circuit element'' 
with its own external connections.

    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'', 
``cryptographic activation'', ``cryptanalysis'', protection against 
compromising emanations and computer security.

    Technical Note to definition of ``Information security'': 
``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. SeeSec. 
750.6 of the EAR.
    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

[[Page 681]]

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, 5P1, 6, 7, 8 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''; ``Super High Power Laser''; and ``Transfer laser''.
    Laser duration. (Sec.  772.1 of EAR) The time over which a ``laser'' 
emits ``laser'' radiation, which for ``pulsed lasers'' corresponds to 
the time over which a single pulse or series of consecutive pulses is 
emitted.
    Law or regulation relating to export control. Any statute, 
proclamation, executive order, regulation, rule, license, or order 
applicable to any conduct involving an export transaction shall be 
deemed to be a ``law or regulation relating to export control.''
    Legible or legibility. Legible and legibility mean the quality of a 
letter or numeral that enables the observer to identify it positively 
and quickly to the exclusion of all other letters or numerals.
    License. Authority issued by the Bureau of 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 and 5 Part 1)--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:


[[Page 682]]


``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.
    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 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 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

[[Page 683]]

``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.
    Military commodity. As used inSec. 734.4(a)(5), Supplement No. 1 
to part 738 (footnote No. 3),Sec. 740.2(a)(11),Sec. 740.16(a)(2), 
Sec.  740.16(b)(2),Sec. 742.6(a)(3),Sec. 744.9(a)(2),Sec. 
744.9(b), ECCN 0A919 and ECCN 6A003 (Related Controls), ``military 
commodity'' or ``military commodities'' means an article, material or 
supply except software or technology that is described on the United 
States Munitions List (22 CFR Part 121) or on the Munitions List that is 
published by the Wassenaar Arrangement on Export Controls for 
Conventional Arms and Dual-Use Goods and Technologies, but does not 
include any item listed in any Export Control Classification Number for 
which the last three numerals are 018.
    Missile Technology Control Regime (MTCR). The United States and 
other nations in this multilateral control regime have agreed to 
guidelines for restricting the export and reexport of dual-use items 
that may contribute to the development of missiles. The MTCR Annex lists 
missile-related equipment and technology controlled either by the 
Department of Commerce or by the Department of State's Office of Defense 
Trade Controls (22 CFR parts 120 through 130).
    Missile Technology Export Control Group (MTEC). Chaired by the 
Department of State, the MTEC primarily reviews applications involving 
items controlled for Missile Technology (MT) reasons. The MTEC also 
reviews applications involving items not controlled for MT reasons, but 
destined for a country and/or end-use/end-user of concern.
    ``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. SeeSec. 746.3 for 
definition of a ``ballistic missile'' to be exported or reexported to 
Iraq or transferred within Iraq.
    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

[[Page 684]]

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''.
    NATO (North Atlantic Treaty Organization). A strategic defensive 
organization that consists of the following member nations: Albania, 
Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, 
France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, 
Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, 
Slovakia, Slovenia, Spain, Turkey, the United Kingdom, and the United 
States.
    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.
    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.
    Network Access Controller. (Cat 4)--A physical interface to a 
distributed switching network. It uses a common medium which operates 
throughout at the same ``digital transfer rate'' using arbitration 
(e.g., token or carrier sense) for transmission. Independently from any 
other, it selects data packets or data groups (e.g., IEEE 802) addressed 
to it. It is an assembly that can be integrated into computer or 
telecommunications equipment to provide communications access.
    Neural computer. (Cat 4)--A computational device designed or 
modified to mimic the behavior of a neuron or a collection of neurons 
(i.e., a computational device that is distinguished by its hardware 
capability to modulate the weights and numbers of the interconnections 
of a multiplicity of computational components based on previous data).
    Non-standard cryptography. Means any implementation of 
``cryptography'' involving the incorporation or use of proprietary or 
unpublished cryptographic functionality, including encryption algorithms 
or protocols that have not been adopted or approved by a duly recognized 
international standards body (e.g., IEEE, IETF, ISO, ITU, ETSI, 3GPP, 
TIA, and GSMA) and have not otherwise been published.
    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 alsoSec. 742.3 of the EAR.
    Numerical control. (Cat 2)--The automatic control of a process 
performed by a device that makes use of numeric

[[Page 685]]

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 compiled 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 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

[[Page 686]]

the application, 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 context)--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 construction.
    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;
    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 and 
supporting structures that can be removed without violating the 
structural integrity of the vehicle;
    6. Recovery equipment (e.g., parachutes) that can be removed without 
violating the structural integrity of the vehicle;
    7. Munitions supporting structures and deployment mechanisms that 
can be removed

[[Page 687]]

without violating the structural integrity of the vehicle.

    Peak power. (Cat 6)--The highest power attained in the ``pulse 
duration.''

    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).
    Personal area network (Cat 5 Part 2)--A data communication system 
having all of the following characteristics:
    a. Allows an arbitrary number of independent or interconnected `data 
devices' to communicate directly with each other; and
    b. Is confined to the communication between devices within the 
immediate vicinity of an individual person or device controller (e.g., 
single room, office, or automobile).
    Technical Note: `Data device' means equipment capable of 
transmitting or receiving sequences of digital information.

    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;
    (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.

[[Page 688]]

    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 Facilities. (MTCR Context only). (Cat 7 and 9)--Means 
``production equipment'' and specially designed ``software'' therefor 
integrated into installations for ``development'' or for one or more 
phases of ``production''.
    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 (seeSec. 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 is the time 
between the half-power points on the leading edge and trailing edge of 
an individual pulse.
    Pulsed Laser. (Cat 6)--A pulsed ``laser'' is defined as having a 
``pulse duration'' that is less than or equal to 0.25 seconds.
    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.
    RWA. See Return Without Action.
    Radar frequency agility. (Cat 6)--Any technique that changes, in a 
pseudo-random sequence, the carrier frequency of a pulsed radar 
transmitter between pulses or between groups of pulses by an amount 
equal to or larger than the pulse bandwidth.
    Radar spread spectrum. (Cat 6)--Any modulation technique for 
spreading energy originating from a signal with a relatively narrow 
frequency band, over a much wider band of frequencies, by using random 
or pseudo-random coding.
    ``Radiant sensitivity'' (Cat 6)--Radiant sensitivity (mA/W) = 0.807 
x (wavelength in nm) x `Quantum Efficiency (QE)'
    Technical Note: 'QE' is usually expressed as a percentage; however, 
for the purposes of this formula `QE' is expressed as a decimal number 
less than one, e.g., 78% is 0.78.
    Range. (Cat 8)--Half the maximum distance a submersible vehicle can 
cover.
    Range. (MTCR context)--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''.

[[Page 689]]

    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), Chemical Weapons Convention (CW), 
Crime Control (CC), Encryption Items (EI), Firearms Convention (FC), 
Missile Technology (MT), National Security (NS), Nuclear 
Nonproliferation (NP), Regional Stability (RS), Short Supply (SS), 
Significant Items (SI), Surreptitious Listening (SL) 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. (SeeSec. 734.2(b)of the EAR.) In addition, for 
purposes of satellites controlled by the Department of Commerce, the 
term ``reexport'' also includes the transfer of registration of a 
satellite or operational control over a satellite from a party resident 
in one country to a party resident in another country.
    Repeatability. (Cat 7)--The closeness of agreement among repeated 
measurements of the same variable under the same operating conditions 
when changes in conditions or non-operating periods occur between 
measurements. (Reference: IEEE STD 528-2001 (one sigma standard 
deviation))
    Replacement license. An authorization by the Bureau of Industry and 
Security revising the information, conditions, or riders stated on a 
license issued by BIS. SeeSec. 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

[[Page 690]]

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 programmability'' by means of teach/
playback method or by means of an electronic computer that may be a 
programmable logic controller, i.e., without mechanical intervention.

    Note: This definition does not include the following devices:
    (a) Manipulation mechanisms that are only manually/teleoperator 
controllable;
    (b) 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.
    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

[[Page 691]]

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. SeeSec. 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, 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, 6, and 8)--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 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

[[Page 692]]

((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.

    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 (SeeSec. 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.
    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, 5P1, 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.

[[Page 693]]

    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.
    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).
    ``Tip shroud'' (Cat 9)--A stationary ring component (solid or 
segmented) attached to the inner surface of the engine turbine casing or 
a feature at the outer tip of the turbine blade, which primarily 
provides a gas seal between the stationary and rotating components.
    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.''
    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 shipment, transmission, or release to any person of 
items subject to the EAR either within the United States or outside the 
United States. In-country transfer/transfer (in-country). The shipment, 
transmission, or release of items subject to the EAR from one person to 
another person that occurs outside the United States within a single 
foreign country.

    Note: This definition of transfer does not apply toSec. 750.10 or 
Supplement No. 8 to part 760 of the EAR. The term ``transfer'' may also 
be included on licenses issued by BIS. In that regard, the changes that 
can be made to a BIS license are the non-material changes described in 
Sec.  750.7(c). Any other change to a BIS license without authorization 
is a violation of the EAR. See Sec.Sec. 750.7(c) and 764.2(e).
    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

[[Page 694]]

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.Sec. 740.9, 740.14 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 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.
    Unmanned aerial vehicle (``UAV''). (Cat 9) Any ``aircraft'' capable 
of initiating flight and sustaining controlled flight and navigation 
without any human presence on board. In addition, according to section 
744.3 of the EAR, unmanned air vehicles, which are the same as 
``unmanned aerial vehicles,'' include, but are not limited to, cruise 
missile systems, target drones and reconnaissance drones.
    Usable in'', ``usable for'', ``usable as'' or ``Capable of''. (MTCR 
context)--Equipment, parts, components, materials or ``software'' which 
are suitable for a particular purpose. There is no need for the 
equipment, parts, components, materials 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.

[[Page 695]]

    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]

    Editorial Note: For Federal Register citations affectingSec. 
772.1, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



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
Supplement No. 4 to Part 774 [Reserved]
Supplement No. 5 to Part 774--Items Classified Under ECCNs 0A521, 0B521, 
          0C521, 0D521 and 0E521

    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); 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; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 U.S.C. 7201 
et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 15, 2012, 77 FR 49699 (August 16, 2012).

    Source: 61 FR 12937, Mar. 25, 1996, unless otherwise noted.



Sec.  774.1  Introduction.

    (a) 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 describes items (i.e., 
commodities, software, and technology) subject to the jurisdiction of 
the EAR. 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.'' SeeSec. 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.
    (b) Items that warrant control on the CCL, but for which a 
classification has yet to be determined, are temporarily classified 
under one of the 0Y521 ECCNs (i.e., 0A521, 0B521, 0C521, 0D521 or

[[Page 696]]

0E521), according to their respective product group, pursuant toSec. 
742.6(a)(7) of the EAR, while a determination is made as to whether 
classification under a revised or new ECCN, or an EAR99 designation, is 
appropriate. The technical description and list of such items appear in 
Supplement No. 5 to part 774--Items Classified Under ECCNs 0A521, 0B521, 
0C521, 0D521 and 0E521. Items that the U.S. Government determines are 
more appropriately captured under the United States Munitions List 
(USML) Category XXI (Miscellaneous Articles) or other USML control, as 
part of the 0Y521 review process will be controlled as such.
    (c) 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.

[77 FR 22199, Apr. 13, 2012]



Sec.  774.2  [Reserved]



      Sec. 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, Directorate of Defense Trade 
          Controls. See 22 CFR part 121.)

0A018 Items on the Wassenaar 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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $5,000 for 0A018.a
$3,000 for 0A018.b
$1,500 for 0A018.c and .d
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: 0A018.a, and .b in $ value; 0A018.c and .d in number.
Related Controls: See 0A979, 0A988, and 22 CFR 121.1 Categories I(a), 
III(b-d), and X(a).
Related Definitions: N/A

[[Page 697]]

Items: a. Construction equipment built to military specifications, 
including equipment specially designed for airborne transport; and 
specially designed parts and accessories for such construction 
equipment, including crew protection kits used as protective cabs;
    b. 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, Directorate of Defense Trade Controls). (See 22 CFR 
parts 120 through 130);
    c. Muzzle loading (black powder) firearms with a caliber less than 
20 mm that were manufactured later than 1937 and that are not 
reproductions of firearms manufactured earlier than 1890;

    Note: 0A018.c does not control weapons used for hunting or sporting 
purposes that were not specially designed for military use and are not 
of the fully automatic type, but see ECCN 0A984 concerning shotguns.

    d. Military helmets, except:
    d.1. Conventional steel helmets other than those described by 
0A018.d.2 of this entry.
    d.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.d.1 are controlled by 0A988. 
Helmets described in 0A018.d.2 are controlled by the U.S. Department of 
State, Directorate of Defense Trade Controls (See 22 CFR part 121, 
Category X).

0A521 Any commodity subject to the EAR that is not listed elsewhere in 
          the CCL, but which is controlled for export because it 
          provides at least a significant military or intelligence 
          advantage to the United States or for foreign policy reasons. 
    0A521 commodities are subject to RS1 controls with no license 
exception eligibility other than License Exception GOV for U.S. 
Government personnel and agencies underSec. 740.11(b)(2)(ii) of the 
EAR, or an item-specific license exception identified in Supplement No. 
5 to part 774 particular to an item covered under ECCN 0A521. The list 
of commodities determined to be classified under ECCN 0A521 controls is 
published in Supplement No. 5 to part 774. The license requirements and 
licensing policy relating to ECCN 0A521 are set forth inSec. 
742.6(a)(7) of the EAR.

0A918 Miscellaneous Military Equipment Not on the Wassenaar Munitions 
          List
License Requirements
Reason for Control: RS, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to entire entry.............  RS Column 2.
AT applies to entire entry.............  AT Column 1.
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $5,000 for 0A918.a
$1,500 for 0A918.b
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: 0A918.a in $ value; 0A918.b 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. Bayonets.

0A919 ``Military commodities'' as follows (see list of items 
          controlled).

                          License Requirements

    Reasons for Control: RS, AT, UN.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to entire entry.............  RS Column 1, see Sec.
                                          742.6(a)(3) for license
                                          requirements.
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) Military commodities are subject to the export 
licensing jurisdiction of the Department of State if they incorporate 
items that are subject to the International Traffic in Arms Regulations 
(ITAR) (22 CFR Parts 120-130). (2) Military commodities described in 
this paragraph are subject to the export licensing jurisdiction of the 
Department of State if such commodities are described on the United 
States Munitions List (22 CFR Part 121) and are in the United States. 
(3) The furnishing of assistance (including training) to foreign 
persons, whether in the United States or abroad in the design, 
development, engineering, manufacture, production, assembly, testing, 
repair, maintenance, modification, operation, demilitarization, 
destruction, processing, or use of defense articles that are subject to 
the ITAR; or the furnishing to foreign persons of any technical data 
controlled under 22 CFR 121.1 whether in the United States or abroad are 
under the licensing jurisdiction of the

[[Page 698]]

Department of State. (4) Brokering activities (as defined in 22 CFR 
129.9) of military commodities that are subject to the ITAR are under 
the licensing jurisdiction of the Department of State.
    Related Definitions: N/A.
    Items: ``Military commodities'' with all of the following 
characteristics:
    a. Described on either the United States Munitions List (22 CFR Part 
121) or the Munitions List that is published by the Wassenaar 
Arrangement on Export Controls for Conventional Arms and Dual-Use Goods 
and Technologies (as set out on its Web site at http://
www.wassenaar.org), but not any item listed in any Export Control 
Classification Number for which the last three characters are 018;
    b. Produced outside the United States;
    c. Not subject to the International Traffic in Arms Regulations (22 
CFR Parts 120-130) for a reason other than presence in the United 
States; and
    d. Incorporate one or more cameras controlled under ECCN 6A003.b.3, 
.b.4.b, or .b.4.c.

0A978 Law enforcement striking weapons, including saps, police batons, 
          side handle batons, tonfas, sjamboks, and whips.
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

0A981 Equipment designed for the execution of human beings (See list of 
          items controlled).
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 specific to 
this control does not appear on the Commerce Country Chart. (SeeSec. 
742.7 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. Gallows and guillotines.
    b. Electric chairs for the purpose of executing human beings.
    c. Air tight vaults designed for the execution of human beings by 
the administration of a lethal gas or substance.
    d. Automatic drug injection systems designed for the execution of 
human beings by administration of a lethal substance.

0A982 Law enforcement restraint devices, including leg irons, shackles, 
          and handcuffs; straight jackets; stun cuffs; shock belts; 
          shock sleeves; multipoint restraint devices such as restraint 
          chairs; 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:Thumbcuffs and fingercuffs are classified under ECCN 
0A983, specially

[[Page 699]]

designed implements of torture. Restraint devices that electronically 
monitor or report the location of confined persons for law enforcement 
or penal reasons are controlled under ECCN 3A981.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

    Note to ECCN 0A982. This ECCN applies to restraint devices used in 
law enforcement activities. It does not apply to medical devices that 
are equipped to restrain patient movement during medical procedures. It 
does not apply to devices that confine memory impaired patients to 
appropriate medical facilities. It does not apply to safety equipment 
such as safety belts or child automobile safety seats.

0A983 Specially designed implements of torture, including thumbscrews, 
          thumbcuffs, fingercuffs, spiked batons, 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 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

    Note to ECCN 0A983. In this ECCN, ``torture'' has the meaning set 
forth in Section 2340(1) of Title 18, United States Code.

0A984 Shotguns with barrel length 18 inches (45.72 cm) or over; 
          receivers; barrels of 18 inches (45.72 cm) or longer but not 
          longer than 24 inches (60.96 cm); complete trigger mechanisms; 
          magazines and magazine extension tubes; complete breech 
          mechanisms; buckshot shotgun shells; except equipment used 
          exclusively to treat or tranquilize animals, and except arms 
          designed solely for signal, flare, or saluting use.
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), shotgun parts controlled
 by this entry, and 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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

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, Directorate of Defense Trade Controls.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

0A985 Discharge type arms and devices to administer electric shock, for 
          example, stun guns, shock batons, shock shields, 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)                         Country chart
------------------------------------------------------------------------
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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: Law enforcement restraint devices that administer an 
electric shock

[[Page 700]]

are controlled under ECCN 0A982. Electronic devices that monitor and 
report a person's location to enforce restrictions on movement for law 
enforcement or penal reasons are controlled under ECCN 3A981.
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)
----------------------------------------
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. SeeSec.  742.19 of
 the EAR for additional information.
FC applies to entire entry.............  FC Column 1.
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

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 (See list of items 
          controlled).
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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

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. Telescopic sights.
    b. Holographic sights.
    c. Reflex or ``red dot'' sights.
    d. Reticle sights.
    e. Other sighting devices that contain optical elements.
    f. Laser pointing devices designed for use on firearms.
    g. Lenses, other optical elements and adjustment mechanisms for 
articles in paragraphs a, b, c, d or e.

0A988 Conventional military steel helmets as described by 0A018.d.1
License Requirements
Reason for Control: UN

------------------------------------------------------------------------
               Control(s)
----------------------------------------
UN applies to entire entry.              SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (SeeSec. 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. SeeSec. 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

[[Page 701]]

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 m\3\/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 cm\3\/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;
    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 10\6\ m and a ``specific tensile 
strength'' greater than 76.2 x 10\3\ 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 10\6\ m and a ``specific tensile 
strength'' greater than 76.2 x 10\3\ 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 10\6\ m and a ``specific tensile 
strength'' greater than 76.2 x 10\3\ 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:

[[Page 702]]

    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 10\6\ m and a ``specific tensile 
strength'' greater than 76.2 x 10\3\ 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 m\3\/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;
    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

[[Page 703]]

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 alloys (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, 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;

[[Page 704]]

    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;
    e.1. Vacuum manifolds or vacuum headers having a suction capacity of 
5 m\3\/minute or more; or
    e.2. Vacuum pumps specially designed for use in UF6 
bearing atmospheres;
    f. UF6 mass spectrometers/ion sources specially designed 
or prepared for taking on-line samples of feed, product or tails from 
UF6 gas streams and having all of the following 
characteristics:
    f.1. Unit resolution for mass of more than 320 amu;
    f.2. Ion sources constructed of or lined with nichrome or monel, or 
nickel plated;
    f.3. Electron bombardment ionization sources; and
    f.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

[[Page 705]]

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
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.


[[Page 706]]


    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.

0B521 Any commodity subject to the EAR that is not listed elsewhere in 
          the CCL, but which is controlled for export because it 
          provides at least a significant military or intelligence 
          advantage to the United States or for foreign policy reasons.
    0B521 commodities are subject to RS1 controls with no license 
exception eligibility other than License Exception GOV for U.S. 
Government personnel and agencies underSec. 740.11(b)(2)(ii) of the 
EAR, or an item- specific license exception identified in Supplement No. 
5 to part 774 particular to an item covered under ECCN 0B521. The list 
of commodities determined to be classified under ECCN 0B521 controls is 
published in Supplement No. 5 to part 774. The license requirements and 
licensing policy relating to ECCN 0B521 are set forth inSec. 
742.6(a)(7) of the EAR.

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. SeeSec. 742.19 of the EAR for additional 
information.
    UN applies to entire entry. SeeSec. 746.1(b) for UN controls.
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, RS.

------------------------------------------------------------------------
               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 license
                                          requirements for this entry.
                                          SeeSec.  742.19 of the EAR
                                          for additional information.
RS applies to entire entry.............  A license is required for items
                                          controlled by this entry for
                                          export or reexport to Iraq or
                                          transfer within Iraq for
                                          regional stability reasons.
                                          The Commerce Country Chart is
                                          not designed to determine RS
                                          license requirements for this
                                          entry. SeeSec.Sec.  742.6
                                          and 746.3 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

[[Page 707]]

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, having a purity level of less than 5 parts per million 
          ``boron equivalent'' as measured according to ASTM standard C-
          1233-98 and intended for use in a nuclear reactor.
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: Graphite intended for a use other than in a nuclear 
reactor, and that meets certain density parameters, is classified under 
ECCN 1C107.High-purity graphite with a boron content of less than 5 
parts per million and a density greater than 1.5 grams per cubic 
centimeter, is classified under ECCN 1C298.
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
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.


[[Page 708]]


0C521 Any material subject to the EAR that is not listed elsewhere in 
          the CCL, but which is controlled for export because it 
          provides at least a significant military or intelligence 
          advantage to the United States or for foreign policy reasons.
    0C521 materials are subject to RS1 controls with no license 
exception eligibility other than License Exception GOV for U.S. 
Government personnel and agencies underSec. 740.11(b)(2)(ii) of the 
EAR, or an item-specific license exception identified in Supplement No. 
5 to part 774 particular to an item covered under ECCN 0C521. The list 
of materials determined to be classified under ECCN 0C521 controls is 
published in Supplement No. 5 to part 774. The license requirements and 
licensing policy relating to ECCN 0C521 are set forth inSec. 
742.6(a)(7) of the EAR.

                               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, Directorate 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.

0D521 Any software subject to the EAR that is not listed elsewhere in 
          the CCL, but which is controlled for export because it 
          provides at least a significant military or intelligence 
          advantage to the United States or for foreign policy reasons. 
    0D521 software is subject to RS1 controls with no license exception 
eligibility other than License Exception GOV for U.S. Government 
personnel and agencies underSec. 740.11(b)(2)(ii) of the EAR, or an 
item-specific license exception identified in Supplement No. 5 to part 
774 particular to an item covered under ECCN 0D521. The list of software 
determined to be classified under ECCN 0D521 controls is published in 
Supplement No. 5 to part 774. The license requirements and licensing 
policy relating to ECCN 0D521 are set forth inSec. 742.6(a)(7) of the 
EAR.

0D999 Specific Software, as Follows (See List of Items Controlled).
License Requirements
Reason for Control: AT, RS.

------------------------------------------------------------------------
               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 license
                                          requirements for this entry.
                                          SeeSec.  742.19 of the EAR
                                          for additional information.
RS applies to entire entry.............  A license is required for items
                                          controlled by this entry for
                                          export or reexport to Iraq or
                                          transfer within Iraq for
                                          regional stability reasons.
                                          The Commerce Country Chart is
                                          not designed to determine RS
                                          license requirements for this
                                          entry. SeeSec.Sec.  742.6
                                          and 746.3 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

[[Page 709]]

items described in 0A002 only) is subject to the export licensing 
authority of the U.S. Department of State, Directorate 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.

0E018 ``Technology'' for the ``development'', ``production'', or ``use'' 
          of items controlled by 0A018.
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.............  SeeSec.  746.1(b) for UN
                                          controls.
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

0E521 Any technology subject to the EAR that is not listed elsewhere in 
          the CCL, but which is controlled for export because it 
          provides at least a significant military or intelligence 
          advantage to the United States or for foreign policy reasons. 
    0E521 technology is subject to RS1 controls with no license 
exception eligibility other than License Exception GOV for U.S. 
Government personnel and agencies underSec. 740.11(b)(2)(ii) of the 
EAR, or an item-specific license exception identified in Supplement No. 
5 to part 774 particular to an item covered under ECCN 0E521. The list 
of technologies determined to be classified under ECCN 0E521 controls is 
published in Supplement No. 5 to part 774. The license requirements and 
licensing policy relating to ECCN 0E521 are set forth inSec. 
742.6(a)(7) of the EAR.

0E918 ``Technology'' for the ``Development'', ``Production'', or ``Use'' 
          of Bayonets.
License Requirements
Reason for Control: RS, UN, AT.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to entire entry.............  RS Column 2.
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
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.

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), and for shotgun shells
 controlled by ECCN 0A984..
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: N/A
List of Items Controlled
Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

EAR99 Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

[[Page 710]]

    Category 1--Special Materials and Related Equipment, Chemicals, 
                   ``Microorganisms,'' and ``Toxins''

    Note: The Food and Drug Administration (FDA) and the Drug 
Enforcement Administration (DEA) may control exports of items subject to 
the EAR and on the Commerce Control List. BIS provides cross references 
to these other agency controls for convenience only. Therefore, please 
consult relevant FDA and DEA regulations for guidance related to the 
item you wish to export and do not rely solely on the EAR for 
information about other agency export control requirements. See 
Supplement No. 3 to part 730 (Other U.S. Government Departments and 
Agencies with Export Control Responsibilities) for more information.

                  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: (1) 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, Directorate of 
Defense Trade Controls (see 22 CFR 121.1 Category XXI). (2) See also 
1C009.
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 (CAS 75-38-7) materials, controlled by 1C009.a, having all of 
the following:
    b.1. In sheet or film form; and
    b.2. With a thickness exceeding 200 [micro]m;
    c. Seals, gaskets, valve seats, bladders or diaphragms, having all 
of the following:
    c.1. Made from fluoroelastomers containing at least one vinylether 
group as a constitutional unit; and
    c.2. 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: SeeSec. 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
STA: License Exception STA may not be used to ship any item in this 
entry to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
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. Consisting of an organic ``matrix'' and materials controlled by 
1C010.c 1C010.d, or 1C010.e or
    b. Consisting of a metal or carbon ``matrix'', and any of the 
following:
    b.1. Carbon ``fibrous or filamentary materials'' having all of the 
following:
    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 1: 1A002 does not control composite structures or laminates 
made from epoxy resin impregnated carbon ``fibrous or filamentary 
materials,'' for the repair of ``civil aircraft'' structures or 
laminates, having all of the following:
    a. An area not exceeding 1 m\2\;
    b. A length not exceeding 2.5 m; and

[[Page 711]]

    c. A width exceeding 15 mm.
    Note 2: 1A002 does not control semi-finished items, specially 
designed for purely civilian applications as follows:
    a. Sporting goods;
    b. Automotive industry;
    c. Machine tool industry;
    d. Medical applications.
    Note 3: 1A002.b.1 does not apply to semi-finished items containing a 
maximum of two dimensions of interwoven filaments and specially designed 
for applications as follows:
    a. Metal heat-treatment furnaces for tempering metals;
    b. Silicon boule production equipment.
    Note 4: 1A002 does not apply to finished items specially designed 
for a specific application.

1A003 Manufactures of non-``fusible'' aromatic polyimides in film, 
          sheet, tape or ribbon form having any 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: $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. For ``fusible'' aromatic polyimides in any form, 
see 1C008.a.3.
Related Definitions: N/A
Items: a. 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, as follows (see List of Items 
          Controlled)..
License Requirements
Reason for Control: NS, CB, RS, AT.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
CB applies to chemical detection         CB Column 2.
 systems and.
dedicated detectors therefor, in
 1A004.c, that also have the technical
 characteristics described in 2B351.a.
RS apply to 1A004.d....................  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: $ value
Related Controls: (1) See ECCNs 1A995, 2B351, and 2B352. (2) See ECCN 
1D003 for ``software'' specially designed or modified to enable 
equipment to perform the functions of equipment controlled under section 
1A004.c (Nuclear, biological and chemical (NBC) detection systems). (3) 
See ECCN 1E002.g for control libraries (parametric technical databases) 
specially designed or modified to enable equipment to perform the 
functions of equipment controlled under 1A004.c (Nuclear, biological and 
chemical (NBC) detection systems).(4) Chemical and biological protective 
and detection equipment specifically designed, developed, modified, 
configured, or adapted for military applications is subject to the 
export licensing jurisdiction of the Department of State, Directorate of 
Defense Trade Controls (see 22 CFR part 121, category XIV(f)), as is 
commercial equipment that incorporates components or parts controlled 
under that category unless those components or parts are: (1) Integral 
to the device; (2) inseparable from the device; and (3) incapable of 
replacement without compromising the effectiveness of the device, in 
which case the equipment is subject to the export licensing jurisdiction 
of the Department of Commerce under ECCN 1A004.
Related Definitions: (1) `Adapted for use in war' means: Any 
modification or selection (such as altering purity, shelf life, 
virulence, dissemination characteristics, or resistance to UV radiation) 
designed to increase the effectiveness in producing casualties in humans 
or animals, degrading equipment or damaging crops or the environment. 
(2) `Riot control agents' are substances which, under the expected 
conditions of use for riot control purposes, produce rapidly in humans 
sensory irritation or disabling physical effects which disappear within 
a short time following termination of exposure. (Tear gases are a subset 
of `riot control agents'.)
Items:
a. Gas masks, filter canisters and decontamination equipment therefor, 
designed or modified for defense against any of the following, and 
specially designed components therefor:
    Note: 1A004.a includes Powered Air Purifying Respirators (PAPR) that 
are designed or modified for defense against agents or materials, listed 
in 1A004.a.
    a.1. Biological agents `adapted for use in war';
    a.2. Radioactive materials `adapted for use in war';
    a.3. Chemical warfare (CW) agents; or
    a.4. `Riot control agents', as follows:

[[Page 712]]

    a.4.a. [alpha]-Bromobenzeneacetonitrile, (Bromobenzyl cyanide) (CA) 
(CAS 5798-79-8);
    a.4.b. [(2-chlorophenyl) methylene] propanedinitrile, (o-
Chlorobenzylidenemalononitrile) (CS) (CAS 2698-41-1);
    a.4.c. 2-Chloro-1-phenylethanone, Phenylacyl chloride ([omega]-
chloroacetophenone) (CN) (CAS 532-27-4);
    a.4.d. Dibenz-(b,f)-1,4-oxazephine, (CR) (CAS 257-07-8);
    a.4.e. 10-Chloro-5,10-dihydrophenarsazine, (Phenarsazine chloride), 
(Adamsite), (DM) (CAS 578-94-9);
    a.4.f. N-Nonanoylmorpholine, (MPA) (CAS 5299-64-9);
    b. Protective suits, gloves and shoes, specially designed or 
modified for defense against any of the following:
    b.1. Biological agents `adapted for use in war';
    b.2. Radioactive materials `adapted for use in war'; or
    b.3. Chemical warfare (CW) agents;
    c. Detection systems, specially designed or modified for detection 
or identification of any of the following, and specially designed 
components therefor:
    c.1. Biological agents `adapted for use in war ';
    c.2. Radioactive materials `adapted for use in war '; or
    c.3. Chemical warfare (CW) agents;
    d. Electronic equipment designed for automatically detecting or 
identifying the presence of ``explosives'' (as listed in the annex at 
the end of Category 1) residues and utilizing `trace detection' 
techniques (e.g., surface acoustic wave, ion mobility spectrometry, 
differential mobility spectrometry, mass spectrometry).

    Technical Note: `Trace detection' is defined as the capability to 
detect less than 1 ppm vapor, or 1 mg solid or liquid.
    Note 1: 1A004.d. does not apply to equipment specially designed for 
laboratory use.
    Note 2: 1A004.d. does not apply to non-contact walk-through security 
portals.
    Note: 1A004 does not control:
    a. Personal radiation monitoring dosimeters;
    b. Equipment limited by design or function to protect against 
hazards specific to residential safety or civil industries, including:
    1. Mining;
    2. Quarrying;
    3. Agriculture;
    4. Pharmaceutical;
    5. Medical;
    6. Veterinary;
    7. Environmental;
    8. Waste management;
    9. Food industry.
    Technical Notes: 1. 1A004 includes equipment and components that 
have been identified, successfully tested to national standards or 
otherwise proven effective, for the detection of or defense against 
radioactive materials ``adapted for use in war'', biological agents 
``adapted for use in war'', chemical warfare agents, `simulants' or 
``riot control agents'', even if such equipment or components are used 
in civil industries such as mining, quarrying, agriculture, 
pharmaceuticals, medical, veterinary, environmental, waste management, 
or the food industry.
    2. `Simulant': A substance or material that is used in place of 
toxic agent (chemical or biological) in training, research, testing or 
evaluation.

1A005 Body armor and components therefor, as follows (see List of Items 
          Controlled).
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.............  SeeSec.  746.1(b) for UN
                                          controls.
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, Directorate of Defense Trade 
Controls (see 22 CFR 121.1 Categories X(a) and XIV(f, h)). (2) For 
``fibrous or filamentary materials'' used in the manufacture of body 
armor, see ECCN 1C010.
Related Definitions: NA
Items:

    a. Soft body armor not manufactured to military standards or 
specifications, or to their equivalents, and specially designed 
components therefor;
    b. Hard body armor plates providing ballistic protection equal to or 
less than level IIIA (NIJ 0101.06, July 2008) or national equivalents.
    Notes to ECCN 1A005: 
    1. This entry does not control body armor when accompanying its user 
for the user's own personal protection.
    2. This entry does not control body armor designed to provide 
frontal protection only from both fragment and blast from non-military 
explosive devices.
    3. This entry does not apply to body armor designed to provide 
protection only from knife, spike, needle or blunt trauma.

1A006 Equipment, specially designed or modified for the disposal of 
          improvised

[[Page 713]]

          explosive devices, 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 Note: 1A006 does not apply to equipment when 
accompanying its operator.
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: Equipment specially designed for military use for the 
disposal of improvised explosive devices is subject to the export 
licensing jurisdiction of the Department of State, Directorate of 
Defense Trade Controls (see 22 CFR part 121, Category IV).
Related Definitions: `Disruptors'--Devices specially designed for the 
purpose of preventing the operation of an explosive device by projecting 
a liquid, solid or frangible projectile.
Items:
a. Remotely operated vehicles;
b. `Disruptors'

1A007 Equipment and devices, specially designed to initiate charges and 
          devices containing energetic materials, by electrical means, 
          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 1A007.b, as well as 1A007.a  NP Column 1.
 when the detonator firing set meets or
 exceeds the parameters of 3A229.
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: High explosives and related equipment specially 
designed for military use is subject to the export licensing 
jurisdiction of the Department of State, Directorate of Defense Trade 
Controls (see 22 CFR part 121). This entry does not control detonators 
using only primary explosives, such as lead azide. See also 3A229. See 
1E001 for ``development'' and ``production'' technology controls, and 
1E201 for ``use'' technology controls.
Related Definitions: N/A
Items:
    a. Explosive detonator firing sets designed to drive explosive 
detonators specified by 1A007.b;
    b. Electrically driven explosive detonators as follows:
    b.1. Exploding bridge (EB);
    b.2. Exploding bridge wire (EBW);
    b.3. Slapper;
    b.4. Exploding foil initiators (EFI).
Technical Notes
1. The word initiator or igniter is sometimes used in place of the word 
detonator.
2. For the purpose of 1A007.b the detonators of concern 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 magnetic 
force. The term exploding foil detonator may refer to either an EB or a 
slapper-type detonator.

1A008 Charges, devices and components, as follows (see List of Items 
          Controlled).
License Requirements
Reason for Control: NS, AT, UN.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
AT applies to entire entry.............  AT Column 1.
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
    LVS: $3000 for .a through .c; $6000 for .d.
GBS: N/A.
CIV: N/A.
List of Items Controlled
Unit: $ value.
Related Controls: (1) All of the following are subject to the export 
licensing jurisdiction of the Department of State, Directorate of 
Defense Trade Controls (see 22 CFR part 121):
    a. High explosives and related equipment specially designed for 
military use;
    b. Explosive devices or charges in this entry that utilize USML 
controlled energetic materials (See 22 CFR 121.1 Category V), if they 
have been specifically designed, developed, configured, adapted, or 
modified for a military application;
    c. Shaped charges that have all of the following a uniform shaped 
conical liner with an included angle of 90 degrees or less, more than 
2.0 kg of controlled materials, and a diameter exceeding 4.5 inches;

[[Page 714]]

    d. Detonating cord containing greater than 0.1 kg per meter (470 
grains per foot) of controlled materials;
    e. Cutters and severing tools containing greater than 10 kg of 
controlled materials;
    f. With the exception of cutters and severing tools, devices or 
charges controlled by this entry where the USML controlled materials can 
be easily extracted without destroying the device or charge; and
    g. Individual USML controlled energetic materials in this entry, 
even when compounded with other materials, when not incorporated into 
explosive devices or charges controlled by this entry or 1C992.
    (2) See also ECCNs 1C011, 1C018, 1C111, and 1C239 for additional 
controlled energetic materials. See ECCN1E001 for the ``development'' or 
``production'' ``technology'' for the commodities controlled by ECCN 
1A008, but not for explosives or commodities that are under the 
jurisdiction of U.S. Department of State, Directorate of Defense Trade 
Controls.
Related Definitions: N/A.
Items:
    a. `Shaped charges' having all of the following:
    a.1. Net Explosive Quantity (NEQ) greater than 90 g; and
    a.2. Outer casing diameter equal to or greater than 75 mm;
    b. Linear shaped cutting charges having all of the following, and 
specially designed components therefor:
    b.1. An explosive load greater than 40 g/m; and
    b.2. A width of 10 mm or more;
    c. Detonating cord with explosive core load greater than 64 g/m;
    d. Cutters, other than those specified by 1A008.b, and severing 
tools, having a NEQ greater than 3.5 kg.

    Technical Note: `Shaped charges' are explosive charges shaped to 
focus the effects of the explosive blast.
    Note: The only charges and devices specified in 1A008 are those 
containing ``explosives'' (see list of explosives in the Annex at the 
end of Category 1) and mixtures thereof.

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 
Controls.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1A102 Resaturated pyrolized carbon-carbon components designed for 
          rockets, missiles, or unmanned aerial vehicles capable of 
          achieving a ``range'' equal to or greater than 300km. (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.


[[Page 715]]


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 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, Directorate 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

[[Page 716]]

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; 
          liquid pepper except when packaged in individual containers 
          with a net weight of 3 ounces (85.05 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

------------------------------------------------------------------------
               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.

1A995 Protective and detection equipment and components not specially 
          designed for military use and not controlled by ECCN 1A004 or 
          ECCN 2B351, 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
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related controls: See ECCNs 1A004, 2B351, and 2B352.
Related Definitions: N/A
Items: a. Personal radiation monitoring dosimeters;
    b. Equipment limited by design or function to protect against 
hazards specific to civil industries, such as mining, quarrying, 
agriculture, pharmaceuticals, medical, veterinary, environmental, waste 
management, or to the food industry.

    Note: This entry (1A995) does not control items for protection 
against chemical or biological agents that are consumer goods, packaged 
for retail sale or personal use, or medical products, such as latex exam 
gloves, latex surgical gloves, liquid disinfectant soap, disposable 
surgical drapes, surgical gowns, surgical foot covers, and surgical 
masks. Such items are classified as EAR99.

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. SeeSec. 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 or inspection of ``composite'' 
          structures or laminates controlled by 1A002 or ``fibrous or 
          filamentary materials'' controlled by 1C010, as follows (see 
          List of Items Controlled), and specially designed components 
          and accessories therefor.
License Requirements
Reason for Control: NS, MT, NP, AT

[[Page 717]]



------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
MT applies to entire entry, except       MT Column 1.
 1B001.d.4, e and f.
Note: MT applies to equipment in
 1B001.d that meet or exceed the
 parameters of 1B101.
 
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 `primary servo positioning' axes, specially designed for the 
manufacture of ``composite'' structures or laminates, from ``fibrous or 
filamentary materials'';
    b. Tape-laying machines, of which the motions for positioning and 
laying tape or sheets are coordinated and programmed in five or more 
`primary servo positioning' 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, 
specially designed or modified for weaving, interlacing or braiding 
fibers for ``composite'' structures;
    Technical Note: For the purposes of 1B001.c the technique of 
interlacing includes knitting.

    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 specially designed for 
``composite'' materials, as follows:
    f.1. X-ray tomography systems for three dimensional defect 
inspection;
    f.2. Numerically controlled ultrasonic testing machines of which the 
motions for positioning transmitters or receivers are simultaneously 
coordinated and programmed in four or more axes to follow the three 
dimensional contours of the component under inspection.
    g. Tow-placement machines, of which the motions for positioning and 
laying tows or sheets are coordinated and programmed in two or more 
`primary servo positioning' axes, specially designed for the manufacture 
of ``composite'' airframe or missile structures.
    Technical Note: For the purpose of 1B001, `primary servo 
positioning' axes control, under computer program direction, the 
position of the end effector (i.e., head) in space relative to the work 
piece at the correct orientation and direction to achieve the desired 
process.

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

[[Page 718]]

          bonding'' titanium, aluminum or their alloys, specially 
          designed for the manufacture of any 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: $5000
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Tools in number; dies, molds, or fixtures 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 structures specified by 1B003.a 
or for engines specified by 1B003.b.

1B018 Equipment on the Wassenaar Arrangement 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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $3000 for 1B018.a for countries WITHOUT an ``X'' in RS Column 2 on 
the Country Chart contained in Supplement No. 1 to part 738 of the EAR;
$5000 for 1B018.b.
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Equipment for the ``production'' of military explosives and 
solid propellants.
    a.1. Complete installations;
    a.2. Specialized components (for example, dehydration presses; 
extrusion presses for the extrusion of small arms, cannon and rocket 
propellants; cutting machines for the sizing of extruded propellants; 
sweetie barrels (tumblers) 6 feet and over in diameter and having over 
500 pounds product capacity; and continuous mixers for solid 
propellants); or
    a.3. Nitrators, continuous types; and
    a.4. Specially designed parts and accessories therefor.
    b. Environmental chambers capable of pressures below 
(10-4) Torr, and specially designed components therefor.

1B101 Equipment, other than that controlled by 1B001, for the 
          ``production'' of structural composites, fibers, prepregs or 
          preforms, usable for rockets, missiles, or unmanned aerial 
          vehicles capable of achieving a ``range'' equal to or greater 
          than 300 km and their subsystems, as follows (see List of 
          Items 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 or fiber placement 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

[[Page 719]]

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
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

[[Page 720]]

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; or
    b. A single rotating shaft which oscillates and has kneading teeth/
pins on the shaft as well as inside the casing of 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
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

[[Page 721]]

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
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

[[Page 722]]

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 
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

[[Page 723]]

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
------------------------------------------------------------------------
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: (1) See ECCN 1E001 (``development'' and 
``production'') and ECCN 1E201 (``use'') for technology for items 
described in this entry. (2) Facilities and plants described in 1B233.a 
are subject to the export licensing authority of the Nuclear Regulatory 
Commission (see 10 CFR part 110).
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, RS.

------------------------------------------------------------------------
               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 license
                                          requirements for this entry.
                                          SeeSec.  742.19 of the EAR
                                          for additional information.
RS applies to entire entry.............  A license is required for items
                                          controlled by this entry for
                                          export or reexport to Iraq or
                                          transfer within Iraq for
                                          regional stability reasons.
                                          The Commerce Country Chart is
                                          not designed to determine RS
                                          license requirements for this
                                          entry. SeeSec.Sec.  742.6
                                          and 746.3 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 fluorine 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):

[[Page 724]]

    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
STA: License Exception STA may not be used to ship any item in this 
entry to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
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:
    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 all of the 
following:
    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.

    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

[[Page 725]]

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 and 
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% by weight 
aluminum, a maximum of 38% by weight aluminum and at least one 
additional alloying element;
    a.2. Titanium aluminides containing 10% by weight or more aluminum 
and at least one additional alloying element;
    b. Metal alloys, as follows, made from the powder or particulate 
material controlled by 1C002.c:
    b.1. Nickel alloys having any of the following:
    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 having any of the following:
    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 having any of the following:
    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 having any of the following:
    b.4.a. A tensile strength of 240 MPa or more at 473 K (200 [deg]C); 
or
    b.4.b. A tensile strength of 415 MPa or more at 298 K (25 [deg]C);
    b.5. Magnesium alloys having all the following:
    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:
    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 [micro]m 
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
    c.1.e. Magnesium alloys (Mg-Al-X or Mg-X-Al);
    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''; and
    c.3. Capable of forming materials controlled by 1C002.a or 1C002.b;
    d. Alloyed materials, having all the following:
    d.1. Made from any of the composition systems specified by 
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 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

[[Page 726]]

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 relative permeability must be 
performed on fully annealed materials.
    b. Magnetostrictive alloys having any of the following:
    b.1. A saturation magnetostriction of more than 5x10-4; 
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:
    c.1. A composition having a minimum of 75% by weight 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 2x10-4; 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 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: Kilograms
Related Controls: See also 1C117 and 1C226.
Related Definitions: N/A
Items: a. A density exceeding 17.5 g/cm\3\;
    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. ``Superconductive'' ``composite'' conductors containing one or 
more niobium-titanium `filaments', having all of the following:
    a.1. Embedded in a ``matrix'' other than a copper or copper-based 
mixed ``matrix''; and
    a.2. Having a cross-section area less than 0.28 x 10-4 mm 
\2\ (6 [micro]m in diameter for circular `filaments');
    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); and
    b.2. Remaining in the ``superconductive'' state at a temperature of 
4.2 K (-268.96 [deg]C) when exposed to a magnetic field oriented in any 
direction perpendicular to the longitudinal axis of conductor and 
corresponding to a magnetic induction of 12 T with critical current 
density exceeding 1750 A/mm \2\ on overall cross-section of the 
conductor.
    c. ``Superconductive'' ``composite'' conductors consisting of one or 
more ``superconductive'' `filaments' which remain ``superconductive'' 
above 115 K (-158.16 [deg]C).
    Technical Note: For the purpose of 1C005, `filaments' may be in 
wire, cylinder, film, tape or ribbon form.

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: See also 1C996.
Related Definitions: N/A
Items:
    a. Hydraulic fluids containing, as their principal ingredients, any 
of the following:
    a.1. Synthetic `silahydrocarbon oils', having all of the following:

[[Page 727]]

    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;
    Technical Note: For the purpose of 1C006.a the following 
determinations apply:
    1. `Flash point' is determined using the Cleveland Open Cup Method 
described in ASTM D-92 or national equivalents;
    2. `Pour point' is determined using the method described in ASTM D-
97 or national equivalents;
    3. `Viscosity index' is determined using the method described in 
ASTM D-2270 or national equivalents;
    4. `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:
    a. The loss in weight of each ball is less than 10 mg/mm\2\ of ball 
surface;
    b. The change in original viscosity as determined at 311 K (38 
[deg]C) is less than 25%; and
    c. The total acid or base number is less than 0.40;
    5. `Autogenous ignition temperature' is determined using the method 
described in ASTM E-659 or national equivalents.
    b. Lubricating materials containing, as their principal ingredients, 
any of the following:
    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 mm \2\/s (5,000 centistokes) measured at 298 K (25 [deg]C);
    c. Damping or flotation fluids having all of the following:
    c.1. Purity exceeding 99.8%;
    c.2. Containing less than 25 particles of 200 [micro]m or larger in 
size per 100 ml; and
    c.3. Made from at least 85% of any of the following:
    c.3.a. Dibromotetrafluoroethane (CAS 25497 30-7, 124-73-2, 27336-23- 
8);
    c.3.b. Polychlorotrifluoroethylene (oily and waxy modifications 
only); or
    c.3.c. Polybromotrifluoroethylene;
    d. Fluorocarbon electronic cooling fluids having all of the 
following:
    Note: 1C006.d does not apply to materials specified and packaged as 
medical products.
    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;

1C007 Ceramic base materials, non-``composite'' ceramic materials, 
          ceramic-``matrix'' ``composite'' materials and precursor 
          materials, 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 items in 1C007.d and .f    MT Column 1.
 when the dielectric constant is less
 than 6 at any frequency from 100 MHz
 to 100 GHz for use in ``missile''
 radomes.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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
STA: License Exception STA may not be used to ship any item in 1C007.c 
or d to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
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

[[Page 728]]

impurities, excluding intentional additions, of less than 5,000 ppm, an 
average particle size equal to or less than 5 [micro]m and no more than 
10% of the particles larger than 10 [micro]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 (CAS 1344-28-1); 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: See also 1A003.
Related Definitions: N/A
Items: a. Non-fluorinated polymeric substances, as follows:
    a. Imides as follows:
    a.1. Bismaleimides;
    a.2. Aromatic polyamide-imides (PAI) having a `glass transition 
temperature (Tg)' exceeding 563 K (290 [deg]C);
    a.3. Aromatic polyimides;
    a.4. Aromatic polyetherimides having a 'glass transition temperature 
(Tg)' exceeding 563 K (290 [deg]C);
    Note: 1C008.a controls the substances in liquid or solid ``fusible'' 
form, including resin, powder, pellet, film, sheet, tape, or ribbon.
    N.B.: For non-``fusible'' aromatic polyimides in film, sheet, tape, 
or ribbon form, see ECCN 1A003.
    b. Thermoplastic liquid crystal copolymers having a heat distortion 
temperature exceeding 523 K (250 [deg]C) measured according to ISO 75-2 
(2004), method A, or national equivalents, with a load of 1.80 N/mm\2\ 
and composed of:
    b.1. Any of the following compounds:
    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 (CAS 100-21-0);
    b.2.b. 6-hydroxy-2 naphthoic acid (CAS 16712-64-4); or
    b.2.c. 4-hydroxybenzoic acid (CAS 99-96-7);
    c. [Reserved]
    d. Polyarylene ketones;
    e. Polyarylene sulphides, where the arylene group is biphenylene, 
triphenylene or combinations thereof;
    f. Polybiphenylenethersulphone having a 'glass transition 
temperature (Tg)' exceeding 563 K (290 [deg]C).
    Technical Note: The `glass transition temperature (Tg)' 
for 1C008 materials is determined using the method described in ISO 
11357-2 (1999) or national equivalents. In addition, for 1C008.a.2 
materials,'glass transition temperature (Tg)' is determined 
on a PAI test specimen having initially been cured at a minimum 
temperature of 310 [deg]C for a minimum of 15 minutes.

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

[[Page 729]]

List of Items Controlled
Unit: Kilograms
Related Controls: See also 1A001.
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'' 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: SeeSec. 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
STA: License Exception STA may not be used to ship any item in 1C010.c 
or d to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
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/m\2\ divided by specific weight in N/m\3\, 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/m\2\ divided by 
specific weight in N/m\3\, 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. ``Specific modulus'' exceeding 12.7x10\6\ m; and
    a.2. ``Specific tensile strength'' exceeding 23.5x10\4\ m;
    Note: 1C010.a does not control polyethylene.
    b. Carbon ``fibrous or filamentary materials'', having all of the 
following:
    b.1. ``Specific modulus'' exceeding 14.65x10\6\ m; and
    b.2. ``Specific tensile strength'' exceeding 26.82x10\4\ m;
    Note: 1C010.b does not control:
    a. ``Fibrous or filamentary materials'', for the repair of ``civil 
aircraft'' structures or laminates, having all of the following:
    1. An area not exceeding 1 m\2\;
    2. A length not exceeding 2.5 m; and
    3. A width exceeding 15 mm.
    b. Mechanically chopped, milled or cut carbon ``fibrous or 
filamentary materials'' 25.0 mm or less in length.
    Technical Note: Properties for materials described in 1C010.b should 
be determined using SACMA recommended methods SRM 12 to 17, ISO 10618 
(2004) 10.2.1 Method A or national equivalent tow tests, and based on 
lot average.
    c. Inorganic ``fibrous or filamentary materials'', having all of the 
following:
    c.1. ``Specific modulus'' exceeding 2.54x10\6\ m; and
    c.2. Melting, softening, decomposition or sublimation point 
exceeding 1,922 K (1,649 [deg]C) in an inert environment;
    Note: 1C010.c does not control:
    a. Discontinuous, multiphase, polycrystalline alumina fibers in 
chopped fiber or random mat form, containing 3% by weight or more 
silica, with a ``specific modulus'' of less than 10x10\6\ m;
    b. Molybdenum and molybdenum alloy fibers;
    c. Boron fibers;
    d. 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'', having any of the 
following:
    d.1. Composed of any of the following:
    d.1.a. Polyetherimides controlled by 1C008.a; or
    d.1.b. Materials controlled by 1C008.b 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. Fully or partially resin-impregnated or pitch-impregnated 
``fibrous or filamentary materials'' (prepregs), metal or carbon-coated 
``fibrous or filamentary materials'' (preforms) or ``carbon fiber 
preforms'', having all of the following:
    e.1. Having any of the following:
    e.1.a. Inorganic ``fibrous or filamentary materials'' controlled by 
1C010.c; or
    e.1.b. Organic or carbon ``fibrous or filamentary materials'', 
having all of the following:

[[Page 730]]

    e.1.b.1. ``Specific modulus'' exceeding 10.15x10\6\ m; and
    e.1.b.2 ``Specific tensile strength'' exceeding 17.7x10\4\ m; and
    e.2. Having any of the following:
    e.2.a. Resin or pitch controlled by 1C008 or 1C009.b;
    e.2.b. `Dynamic Mechanical Analysis glass transition temperature 
(DMA Tg)' equal to or exceeding 453 K (180 [deg]C) and having 
a phenolic resin; or
    e.2.c. `Dynamic Mechanical Analysis glass transition temperature 
(DMA Tg)' equal to or exceeding 505 K (232 [deg]C) and having 
a resin or pitch, not specified by 1C008 or 1C009.b, and not being a 
phenolic resin;
    Note 1: Metal or carbon-coated ``fibrous or filamentary materials'' 
(preforms) or ``carbon fiber preforms'', not impregnated with resin or 
pitch, are specified by ``fibrous or filamentary materials'' in 1C010.a, 
1C010.b or 1C010.c.
    Note 2: 1C010.e does not apply to:
    a. Epoxy resin ``matrix'' impregnated carbon ``fibrous or 
filamentary materials'' (prepregs) for the repair of ``civil aircraft'' 
structures or laminates, having all of the following:
    1. An area not exceeding 1 m\2\;
    2. A length not exceeding 2.5 m; and
    3. A width exceeding 15 mm;
    b. Fully or partially resin-impregnated or pitch-impregnated 
mechanically chopped, milled or cut carbon ``fibrous or filamentary 
materials'' 25.0 mm or less in length when using a resin or pitch other 
than those specified by 1C008 or 1C009.b.
    Technical Note: The `Dynamic Mechanical Analysis glass transition 
temperature (DMA Tg)' for materials controlled by 1C010.e is 
determined using the method described in ASTM D 7028-07, or equivalent 
national standard, on a dry test specimen. In the case of thermoset 
materials, degree of cure of a dry test specimen shall be a minimum of 
90% as defined by ASTM E 2160 04 or equivalent national standard.

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...................  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 1C018 and 1C111. (2.) The following are 
subject to the export licensing authority of the U.S. Department of 
State, Directorate of Defense Trade Controls (see 22 CFR 121.1 Category 
V): a) Materials 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; and b) Metal powders mixed with other substances 
to form a mixture formulated for military purposes.
Related Definitions: N/A
Items:
    a. Metals in particle sizes of less than 60 [micro]m whether 
spherical, atomized, spheroidal, flaked or ground, manufactured from 
material consisting of 99% or more of zirconium, magnesium and alloys 
thereof;
    Technical Note: The natural content of hafnium in the zirconium 
(typically 2% to 7%) is counted with the zirconium.
    Note: The metals or alloys specified by 1C011.a also refer to metals 
or alloys encapsulated in aluminum, magnesium, zirconium or beryllium.
    b. Boron or boron alloys, with a particle size of 60 [micro]m or 
less, as follows:
    b.1. Boron with a purity of 85% by weight or more;
    b.2. Boron alloys with a boron content of 85% by weight or more;
    Note: The metals or alloys specified by 1C011.b also refer to metals 
or alloys encapsulated in aluminum, magnesium, zirconium or beryllium.
    c. Guanidine nitrate (CAS 506-93-4);
    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, 
item 9A)).
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
STA: License Exception STA may not be used to ship any item in this 
entry to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
List of Items Controlled
Unit: N/A
Related Controls: See also 0C002.
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:
    a. Shipments with a plutonium content of 1 g or less;
    b. Shipments of 3 ``effective grams'' or less when contained in a 
sensing component in instruments.


[[Page 731]]


    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.

1C018 Commercial Charges and Devices Containing Energetic Materials on 
          the Wassenaar Arrangement Munitions List and Certain Chemicals 
          as Follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, MT, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry, except as    NS Column 1.
 noted in 1C018.m.
MT applies to 1C018.m, except as noted   MT Column 1.
 therein.
AT applies to entire entry.............  AT Column 1.
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $3000
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Number.
Related Controls: (1) Explosive devices or charges in paragraphs .c 
through .k of this entry 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, Directorate 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 if the USML controlled materials utilized in devices and 
charges controlled by paragraphs .c through .k of 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, Directorate 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, Directorate of Defense Trade 
Controls. (4) The individual USML controlled energetic materials in 
paragraphs .c through .k of this entry, 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) The chemicals in 
paragraphs .l and .m of this entry, when incorporated into items listed 
on the United States Munitions List, become subject to the licensing 
jurisdiction of the U.S. Department of State, Directorate of Defense 
Trade Controls. (6) See also ECCNs 1C011, 1C111, and 1C239 for 
additional controlled energetic materials. (7) See ECCN 1C238 for 
additional controls on chlorine trifluoride (ClF3). (8) See 
ECCN 1A008 for shaped charges, detonating cord, and cutters and severing 
tools. (9) See ECCN1E001 for the ``development'' or ``production'' 
``technology'' for the commodities controlled by ECCN 1C018, but not 
explosives or energetic materials that are under the jurisdiction of 
U.S. Department of State, Directorate of Defense Trade Controls.
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 121.1 
Category V) (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. [Reserved]
    b. 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. [Reserved]
    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.c 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.
    l. Propyleneimine (2-methylaziridine) (CAS 75-55-8); or
    m. Any oxidizer or mixture thereof that is a compound composed of 
fluorine and one or more of the following--other halogens, oxygen, or 
nitrogen.


[[Page 732]]


    Note: Nitrogen trifluoride (NF3) in a gaseous state is 
controlled by ECCN 1C992 and not by 1C018.
    Note: National security is not a reason for control for chlorine 
trifluoride.
    Note: If a chemical in paragraphs .1 or .m of 1C018 is incorporated 
into a commercial charge or device described in paragraphs .c through .k 
of ECCN 1C018 or in 1C992, the classification of the commercial charge 
or device applies to the item.

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 rockets, missiles, or unmanned aerial 
          vehicles capable of achieving a ``range'' equal to or greater 
          than 300km, 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: (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 Controls.
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, Which Can be Machined to Any of the Following Products 
          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 0C005, 1C004, and 1C298. (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 Controls.
Related Definitions: N/A
Items: a. Fine grain graphites with a bulk density of 1.72 g/cm\3\ or 
greater, measured at 15 [deg]C, and having a grain 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 is less than 6 
at any frequency from 100 MHz to 100 GHz) for use in radomes useable in 
rockets, missiles, and unmanned aerial vehicles capable of achieving a 
``range'' equal to or greater than 300 km; or
    d. Silicon-Carbide materials, useable in rockets, missiles, and 
unmanned aerial vehicles capable of achieving a ``range'' equal to or 
greater than 300 km, as follows:
    d.1. Bulk machinable silicon-carbide reinforced unfired ceramic, 
usable for nose tips.
    d.2. Reinforced silicon-carbide ceramic composites usable for nose 
tips, re-entry vehicles, nozzle flaps.

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


[[Page 733]]

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Kilograms.
Related Controls: (1) Butacene as defined by 1C111.c.1 is subject to the 
export licensing authority of the U.S. Department of State, Directorate 
of Defense Trade Controls. (See 22 CFR 121.12(b)(6), other ferrocene 
derivatives). (2) See 1C018 for controls on oxidizers that are composed 
of fluorine and one or more of the following--other halogens, oxygen, or 
nitrogen. Solid oxidizer substances are subject to the export licensing 
authority of the U.S. Department of State, Directorate of Defense Trade 
Controls (See 22 CFR 121.1 Category V). (3) See 1C011.b for controls on 
boron and boron alloys.
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 60 x 10-6 m (60 
micrometers), whether spherical, atomized, spheroidal, flaked or ground, 
as follows:
    a.2.a. Consisting of 97% by weight or more of any of the following:
    a.2.a.1. Zirconium;
    a.2.a.2. Beryllium;
    a.2.a.3. Magnesium; or
    a.2.a.4. Alloys of the metals specified by a.2.a.1 to a.2.a.3 above.

    Technical Note: The natural content of hafnium in the zirconium 
(typically 2% to 7%) is counted with the zirconium.

    a.3. Oxidizer substances usable in liquid propellant rocket engines, 
as follows:
    a.3.a. Dinitrogen trioxide;
    a.3.b. Nitrogendioxide/dinitrogen tetroxide;
    a.3.c. Dinitrogen pentoxide;
    a.3.d Mixed oxides of nitrogen (MON); a.3.e Inhibited red fuming 
nitric acid (IRFNA);

    Technical Note: Mixed oxides of nitrogen (MON) are solutions of 
nitric oxide (NO) in dinitrogen tetroxide/nitrogen 
dioxide(N2O4NO2-) 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 (including carboxyl--
terminated polybutadiene) (CTPB);
    b.2. Hydroxy--terminated polybutadiene (including hydroxyl--
terminated polybutadiene) (HTPB);
    b.3. Polybutadiene-acrylic acid (PBAA);
    b.4. Polybutadiene-acrylic acid -acrylonitrile (PBAN);
    b.5 Polytetrahydrofuran polyethylene glycol (TPEG).

    Technical Note: Polytetrahydrofuran polyethylene glycol (TPEG) is a 
block co-polymer of poly 1,4-Butanediol and polyethylene glycol (PEG).

    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 (iron alloys generally characterized by high 
          nickel, very low carbon content and the use of substitutional 
          elements or precipitates to produce strengthening and age-
          hardening of the alloy) having an ultimate tensile strength 
          equal to or greater than 1.5 GPa, 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.


[[Page 734]]


1C117 Materials for the Fabrication of Missile Components for Rockets or 
          Missiles Capable of Achieving a ``Range'' Equal to or Greater 
          Than 300 km, 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: N/A
Related Definitions: N/A
Items:
    a. Tungsten and alloys in particulate form with a tungsten content 
of 97% by weight or more and a particle size of 50 x 10-6 m 
(50 [micro]m) or less;
    b. Molybdenum and alloys in particulate form with a molybdenum 
content of 97% by weight or more and a particle size of 50 x 
10-6 m (50 [micro]m) or less;
    c. Tungsten materials in the solid form having all of the following:
    c.1. Any of the following material compositions:
    c.1.a. Tungsten and alloys containing 97% by weight or more of 
tungsten;
    c.1.b. Copper infiltrated tungsten containing 80% by weight or more 
of tungsten; or
    c.1.c. Silver infiltrated tungsten containing 80% by weight or more 
of tungsten; and
    c.2. Able to be machined to any of the following products:
    c.2.a. Cylinders having a diameter of 120 mm or greater and a length 
of 50 mm or greater;
    c.2.b. 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; or
    c.2.c. Blocks having a size of 120 mm x 120 mm x 50 mm or greater.

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
    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.b.3 or 1C002.b.4 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:

[[Page 735]]

    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 [micro]m in diameter.
    Strand is a bundle of filaments (typically over 200) arranged 
approximately parallel.
    Roving is a bundle (typically 12-120) of approximately parallel 
strands.
    Yarn is a bundle of twisted strands.
    Tow is a bundle of filaments, usually approximately parallel.
    Tape is a material constructed of interlaced or unidirectional 
filaments, strands, rovings, tows, or yarns, etc., usually 
preimpregnated with resin.
    Specific modulus is the Young's modulus in N/m\2\ divided by the 
specific weight in N/m\3\, measured at a temperature of (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/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 percent.
Items: a. Carbon or aramid ``fibrous or filamentary materials'' having a 
``specific modulus'' of 12.7 x 10\6\ m or greater or a ``specific 
tensile strength'' of 235 x 10\3\ 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 10\6\ m or greater and a ``specific tensile 
strength'' of 76.2 x 10\3\ m or greater; or
    c. Thermoset resin impregnated continuous ``yarns'', ``rovings'', 
``tows'' or ``tapes'' with a width no greater than 15 mm (prepregs), 
made from carbon or glass ``fibrous or filamentary materials'' 
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 (\10\B) 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

[[Page 736]]

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: The list of items controlled is contained in the ECCN heading.

    Technical Note: The natural isotopic abundance of boron-10 is 
approximately 18.5 weight percent (20 atom percent).

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.
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

[[Page 737]]



------------------------------------------------------------------------
               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.

1C232 Helium-3 (\3\He), 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

[[Page 738]]

 
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
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 10\3\ 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 (\226\Ra), 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.


[[Page 739]]


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. 
See 1C018 for additional controls on Chlorine trifluoride 
(ClF3).
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/
          cm\3\ and having a detonation velocity greater than 8,000 m/s.
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) See ECCNs 1C018 (commercial charges and devices 
containing energetic materials on the Wassenaar Arrangement Munitions 
List and certain chemicals as follows) and 1C992 (commercial charges and 
devices containing energetic materials, n.e.s and nitrogen trifluoride 
in a gaseous state). (3) High explosives for military use are subject to 
the export licensing authority of the U.S. Department of State, 
Directorate 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: 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) 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 cm\2\ 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.

1C298 Graphite with a boron content of less than 5 parts per million and 
          a density greater than 1.5 grams per cubic centimeter that is 
          intended for use other than in a nuclear reactor.
License Requirements
Reason for Control: NP.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 2
------------------------------------------------------------------------

License Requirement Note: This entry does not control graphite intended 
for use in a nuclear reactor. Such graphite is subject to the export 
licensing authority of the Nuclear Regulatory Commission (see ECCN 0C005 
and 10 CFR part 110).
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: N/A

[[Page 740]]

Related Controls: See also 1C107 and 0C005.
Related Definitions: For the purpose of this entry, graphite with a 
purity level better than 5 parts per million boron equivalent is 
determined according to ASTM standard C1233-98. In applying ASTM 
standard C1233-98, the boron equivalence of the element carbon is not 
included in the boron equivalence calculation, since carbon is not 
considered an impurity.
Items: The list of items controlled is contained in the ECCN heading.

1C350 Chemicals that may be used as precursors for toxic chemical 
          agents.
License Requirements
Reason for Control: CB, CW, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 2.
------------------------------------------------------------------------

    CW applies to 1C350 .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 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. (SeeSec. 742.18 of 
the EAR for license requirements and policies for toxic and precursor 
chemicals controlled for CW reasons. SeeSec. 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 a country in Country Group E:1 of 
Supplement No. 1 to part 740 of the EAR. (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 sanctions that apply to Cuba, Iran, North Korea, and 
Syria.)
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. [Reserved]
    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 the CWC (destinations not listed 
in Supplement No. 2 to part 745 of the EAR) without a license.
    b. Countries Not Eligible: Countries in Country Group E:1 of 
Supplement No. 1 to part 740 of the EAR are not eligible to receive 
sample shipments of any chemicals controlled by this ECCN without a 
license.
    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 (seeSec. 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, via courier, to 
the U.S. Department of Commerce, Bureau of Industry and Security, 14th 
and Pennsylvania Ave., NW., Room 2099B, Washington, DC 20230, 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.b 
through .d, are controlled by ECCN 1C395 or 1C995 and are subject to the 
licensing requirements specified in those ECCNs.
    b. A license is not required under this ECCN for a mixture, when the 
controlled chemical in the mixture is a normal ingredient in consumer 
goods packaged for retail sale for personal use. Such consumer goods

[[Page 741]]

are designated EAR99. However, a license may be required for reasons set 
forth elsewhere in the EAR.
    Note to mixtures: Calculation of concentrations of AG-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, are excluded from the scope of this ECCN and are controlled 
under ECCN 1C395 or 1C995. (Note that replacement reagents for such kits 
are controlled by this ECCN 1C350 if the reagents contain one or more 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: The chemicals 0-Ethyl-2-diisopropylaminoethyl methyl 
phosphonite (QL) (C.A.S. 57856-11-8); Ethyl phosphonyl 
difluoride (C.A.S. 753-98-0); and Methyl phosphonyl difluoride. 
(C.A.S. 676-99-3); methylphosphinyl dichloride (C.A.S. 676-83-
5); methylphosphinyl difluoride (C.A.S. 753-59-3); and 
methylphosphonyl dichloride (C.A.S. 676-97-1) are subject to 
the licensing jurisdiction of the Directorate of Defense Trade Controls, 
U.S. Department of State.
Related Definitions: SeeSec. 770.2(k) of the EAR for synonyms for the 
chemicals listed in this entry.
Items: a. [Reserved]
    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. [Reserved]
    b.16. [Reserved]
    b.17. [Reserved]
    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;
    b.21. (C.A.S. 993-13-5) Methylphosphonic acid;
    b.22. (C.A.S. 683-08-9) Diethyl methylphosphonate;
    b.23. (C.A.S. 677-43-0) N,N-dimethylamino-phosphoryl 
dichloride;
    b.24. (C.A.S. 676-98-2) Methylphos-phonothioic dichloride.
    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;

[[Page 742]]

    c.12. (C.A.S. 139-87-7) Ethyldiethan-olamine.
    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;
    d.21. (C.A.S. 116-17-6) Tri-isopropyl phosphite;
    d.22. (C.A.S. 2465-65-8) O,O-diethyl phosphorothioate;
    d.23. (C.A.S. 298-06-6) O,O-diethyl phosphorodithioate;
    d.24. (C.A.S. 16893-85-9) Sodium hexafluorosilicate.

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.11 and d.12 and a license is required for CW 
reasons for all destinations, including Canada, as follows: CW applies 
to 1C351.d.11 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 1C351.d.12 for saxitoxin identified by C.A.S. 
35523-89-8. SeeSec. 742.18 of the EAR for 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.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Requirement Notes

1. 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.11 
and d.12, 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.
    2. For the purposes of this entry, only saxitoxin is controlled 
under paragraph d.12; other members of the paralytic shellfish poison 
family (e.g. neosaxitoxin) are designated EAR99.
    3. Clostridium perfringens strains, other than the epsilon toxin-
producing strains of Clostridium perfringens described in c.9, are 
excluded from the scope of this entry, since they may be used as 
positive control cultures for food testing and quality control.

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: $ value.
Related Controls: (1) Certain forms of ricin and saxitoxin in 
1C351.d.11. and d.12 are CWC Schedule 1 chemicals (seeSec. 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 andSec. 121.7 for additional CWC Schedule 1 chemicals 
controlled by the Department of State. (2) The Animal and Plant Health 
Inspection Service (APHIS), U.S. Department of Agriculture, and the 
Centers for Disease Control and Prevention (CDC), U.S. Department of 
Health and Human Services, maintain controls on the possession, use, and 
transfer within the United States of certain items controlled by this 
ECCN (for APHIS, see 7 CFR 331.3(b), 9 CFR 121.3(b), and 9 CFR 121.4(b); 
for CDC, see 42 CFR 73.3(b) and 42 CFR 73.4(b)).
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

[[Page 743]]

entry ``subunit'' is defined as a portion of the ``toxin''.
Items:
    a. Viruses, as follows:
    a.1. Andes virus;
    a.2. Chapare virus;
    a.3. Chikungunya virus;
    a.4. Choclo virus;
    a.5. Congo-Crimean haemorrhagic fever virus (a.k.a. Crimean-Congo 
haemorrhagic fever virus);
    a.6. Dengue fever virus;
    a.7. Dobrava-Belgrade virus;
    a.8. Eastern equine encephalitis virus;
    a.9. Ebola virus;
    a.10. Guanarito virus;
    a.11. Hantaan virus;
    a.12. Hendra virus (Equine morbillivirus);
    a.13. Japanese encephalitis virus;
    a.14. Junin virus;
    a.15. Kyasanur Forest virus;
    a.16. Laguna Negra virus;
    a.17. Lassa fever virus;
    a.18. Louping ill virus;
    a.19. Lujo virus;
    a.20. Lymphocytic choriomeningitis virus;
    a.21. Machupo virus;
    a.22. Marburg virus;
    a.23. Monkey pox virus;
    a.24. Murray Valley encephalitis virus;
    a.25. Nipah virus;
    a.26. Omsk haemorrhagic fever virus;
    a.27. Oropouche virus;
    a.28. Powassan virus;
    a.29. Rift Valley fever virus;
    a.30. Rocio virus;
    a.31. Sabia virus;
    a.32. Seoul virus;
    a.33. Sin nombre virus;
    a.34. St. Louis encephalitis virus;
    a.35. Tick-borne encephalitis virus (Russian Spring-Summer 
encephalitis virus);
    a.36. Variola virus;
    a.37. Venezuelan equine encephalitis virus;
    a.38. Western equine encephalitis virus; or
    a.39. Yellow fever virus.
    b. [Reserved]
    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. Chlamydophila psittaci (formerly known as Chlamydia psittaci);
    c.8. Clostridium botulinum;
    c.9. Clostridium perfringens, epsilon toxin producing types;
    c.10. Coxiella burnetii;
    c.11. Enterohaemorrhagic Escherichia coli, serotype O157 and other 
verotoxin producing serotypes;
    c.12. Francisella tularensis;
    c.13. Rickettsia prowasecki (a.k.a. Rickettsia prowazekii);
    c.14. Salmonella typhi;
    c.15. Shigella dysenteriae;
    c.16. Vibrio cholerae; or
    c.17. Yersinia pestis.
    d. ``Toxins'', as follows, and ``subunits'' thereof:
    d.1. Abrin;
    d.2. Aflatoxins;
    d.3. Botulinum toxins;
    d.4. Cholera toxin;
    d.5. Clostridium perfringens toxins;
    d.6. Conotoxin;
    d.7. Diacetoxyscirpenol toxin;
    d.8. HT-2 toxin;
    d.9. Microcystin (Cyanginosin);
    d.10. Modeccin toxin;
    d.11. Ricin;
    d.12. Saxitoxin;
    d.13. Shiga toxin;
    d.14. Staphylococcus aureus toxins;
    d.15. T-2 toxin;
    d.16. Tetrodotoxin;
    d.17. Verotoxin and other Shiga-like ribosome inactivating proteins;
    d.18. Viscum Album Lectin 1 (Viscumin); or
    d.19. Volkensin toxin.
    e. ``Fungi'', as follows:
    e.1. Coccidioides immitis; or
    e.2. Coccidioides posadasii.

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 Requirement Note
All vaccines are excluded from the scope of this ECCN. See ECCN 1C991 
for vaccines.
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: The Animal and Plant Health Inspection Service 
(APHIS), U.S. Department of Agriculture, and the Centers for Disease 
Control and Prevention (CDC), U.S. Department of Health and Human 
Services, maintain controls on the possession, use, and transfer within 
the United States of certain items controlled by this ECCN (for APHIS, 
see 7 CFR 331.3(b), 9 CFR 121.3(b), and 9 CFR 121.4(b); for CDC, see 42 
CFR 73.3(b) and 42 CFR 73.4(b)).
Related Definitions: N/A
Items: a. Viruses, as follows:
    a.1. African swine fever virus;

[[Page 744]]

    a.2. Avian influenza (AI) viruses identified as having high 
pathogenicity (HP), as follows:
    a.2.a. AI viruses that have an intravenous pathogenicity index 
(IVPI) in 6-week-old chickens greater than 1.2; or
    a.2.b. AI viruses that cause at least 75% mortality in 4- to 8-week-
old chickens infected intravenously.

    Note: Avian influenza (AI) viruses of the H5 or H7 subtype that do 
not have either of the characteristics described in 1C352.a.2 
(specifically, 1C352.a.2.a or a.2.b) should be sequenced to determine 
whether multiple basic amino acids are present at the cleavage site of 
the haemagglutinin molecule (HA0). If the amino acid motif is similar to 
that observed for other HPAI isolates, then the isolate being tested 
should be considered as HPAI and the virus is controlled under 
1C352.a.2.

    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.k.a. Rabies);
    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;
    a.16. Lumpy skin disease virus;
    a.17. African horse sickness virus.
    b. Bacteria, as follows:
    b.1. Mycoplasma mycoides, as follows:
    b.1.a. Mycoplasma mycoides subspecies mycoides SC (small colony) 
(a.k.a. contagious bovine pleuropneumonia);
    b.1.b. Mycoplasma capricolum subspecies capripneumoniae (``strain 
F38'').
    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 Requirement Note
Vaccines that contain genetic elements or genetically modified organisms 
identified in this ECCN are controlled by ECCN 1C991.
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: The Animal and Plant Health Inspection Service 
(APHIS), U.S. Department of Agriculture, and the Centers for Disease 
Control and Prevention (CDC), U.S. Department of Health and Human 
Services, maintain controls on the possession, use, and transfer within 
the United States of certain items controlled by this ECCN, including 
(but not limited to) genetic elements, recombinant nucleic acids, and 
recombinant organisms associated with the agents or toxins in ECCN 1C360 
(for APHIS, see 7 CFR 331.3(c), 9 CFR 121.3(c), and 9 CFR 121.4(c); for 
CDC, see 42 CFR 73.3(c) and 42 CFR 73.4(c)).
Related Definition: 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, 1C354, or 1C360;
    a.2. Genetic elements that contain nucleic acid sequences coding for 
any of the ``toxins'' controlled by 1C351.d or ``sub-units of toxins'' 
thereof.
    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, 1C354, or 1C360;
    b.2. Genetically modified organisms that contain nucleic acid 
sequences coding for any of the ``toxins'' controlled by 1C351.d or 
``sub-units of toxins'' thereof.

    Technical Note: 1. ``Genetic elements'' include, inter alia, 
chromosomes, genomes, plasmids, transposons, and vectors, whether 
genetically modified or unmodified.
    2. This ECCN does not control nucleic acid sequences associated with 
the pathogenicity of enterohaemorrhagic Escherichia coli, serotype O157 
and other verotoxin producing strains, except those nucleic acid 
sequences that contain coding for the verotoxin or its sub-units.
    3. ``Nucleic acid sequences associated with the pathogenicity of any 
of the microorganisms controlled by 1C351.a to .c, 1C352, 1C354, or 
1C360'' means any sequence specific to the relevant controlled 
microorganism that:
    a. In itself or through its transcribed or translated products 
represents a significant hazard to human, animal or plant health; or
    b. Is known to enhance the ability of a microorganism controlled by 
1C351.a to .c, 1C352, 1C354, or 1C360, or any other organism into which 
it may be inserted or otherwise integrated, to cause serious harm to 
human, animal or plant health.
    4. ``Genetically modified organisms'' include organisms in which the 
genetic material (nucleic acid sequences) has been altered

[[Page 745]]

in a way that does not occur naturally by mating and/or natural 
recombination, and encompasses those produced artificially in whole or 
in part.

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 Requirement Note
All vaccines are excluded from the scope of this ECCN. See ECCN 1C991 
for vaccines.
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: The Animal and Plant Health Inspection Service 
(APHIS), U.S. Department of Agriculture, maintains controls on the 
possession, use, and transfer within the United States of certain items 
controlled by this ECCN (see 7 CFR 331.3(c), 9 CFR 121.3(c), and 9 CFR 
121.4(c)).
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;
    a.3. Xanthomonas oryzae pv. oryzae (syn. Pseudomonas campestris pv. 
oryzae);
    a.4. Clavibacter michiganensis subspecies sepedonicus (syn. 
Corynebacterium michiganensis subspecies sepedonicum or Corynebacterium 
sepedonicum);
    a.5. Ralstonia solanacearum Races 2 and 3 (syn. Pseudomonas 
solanacearum Races 2 and 3 or Burkholderia solanacearum Races 2 and 3);
    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);
    c. Viruses, as follows:
    c.1. Potato Andean latent tymovirus;
    c.2. Potato spindle tuber viroid.

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): 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 of the 
EAR). 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. (SeeSec. 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 a country in Country Group E:1 of 
Supplement No. 1 to part 740 of the EAR. (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 sanctions that apply to Cuba, Iran, North Korea, and 
Syria.)
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.

[[Page 746]]

    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.
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. 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.

    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).

    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.1.d. Chloropicrin: Trichloronitromethane (C.A.S. 76-06-2).
    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. [Reserved];
    b.2.b. Methyldiethanolamine (C.A.S. 105-59-9).

1C360 Select agents not controlled under ECCN 1C351, 1C352, or 1C354.
License Requirements
Reason for Control: CB, AT

------------------------------------------------------------------------
                Controls                          Country chart
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 1
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Requirement Note
All vaccines are excluded from the scope of this ECCN. See ECCN 1C991 
for vaccines.
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value.
Related Controls: (1) Also see ECCNs 1C351 (AG-controlled human and 
zoonotic pathogens and ``toxins''), 1C352 (AG-controlled animal 
pathogens), and 1C354 (AG-controlled plant pathogens). (2) The Animal 
and Plant Health Inspection Service (APHIS), U.S. Department of 
Agriculture, and the Centers for Disease Control and Prevention (CDC), 
U.S. Department of Health and Human Services, maintain controls on the 
possession, use, and transfer within the United States of items 
controlled by this ECCN (for APHIS, see 7 CFR 331.3(b), 9 CFR 121.3(b), 
and 9 CFR 121.4(b); for CDC, see 42 CFR 73.3(b) and 42 CFR 73.4(b)).
Related Definitions: N/A
Items:

    Note: The control status of items listed in this ECCN is not 
affected by the exemptions or exclusions contained in the domestic 
possession, use, and transfer regulations maintained by APHIS (at 7 CFR 
part 331 and 9 CFR part 121) and/or CDC (at 42 CFR part 73).

    a. Human and zoonotic pathogens, as follows:
    a.1. Viruses, as follows:

[[Page 747]]

    a.1.a. Central European tick-borne encephalitis viruses, as follows:
    a.1.a.1. Absettarov;
    a.1.a.2. Hanzalova;
    a.1.a.3. Hypr;
    a.1.a.4. Kumlinge;
    a.1.b. Cercopithecine herpesvirus 1 (Herpes B virus);
    a.1.c. Flexal virus;
    a.1.d. Reconstructed replication competent forms of the 1918 
pandemic influenza virus containing any portion of the coding regions of 
all eight gene segments;
    a.2. [Reserved];
    b. Animal pathogens, as follows:
    b.1. Viruses, as follows:
    b.1.a. Akabane virus;
    b.1.b. Bovine spongiform encephalopathy agent;
    b.1.c. Camel pox virus;
    b.1.d. Malignant catarrhal fever virus;
    b.1.e. Menangle virus;
    b.2. Mycoplasma, as follows:
    b.2.a. Mycoplasma capricolum, except subspecies capripneumoniae (see 
ECCN 1C352.b.1.b);
    b.2.b. Mycoplasma mycoides capri;
    b.3. Rickettsia, as follows:
    b.3.a. Erhlichia ruminantium (a.k.a. Cowdria ruminantium);
    b.3.b. [Reserved]
    c. Plant pathogens, as follows:
    c.1. Bacteria, as follows:
    c.1.a. Rathayibacter toxicus;
    c.1.b. Xylella fastidiosa pv. citrus variegated chlorosis (CVC);
    c.2. Fungi, as follows:
    c.2.a. Peronosclerospora philippinensis (a.k.a. Peronosclerospora 
sacchari);
    c.2.b. Sclerophthora rayssiae var. zeae;
    c.2.c. Synchytrium endobioticum;
    c.2.d. Phoma glycinicola (formerly Pyrenochaeta glycines).

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): 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. (SeeSec. 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 a country in Country Group E:1 of 
Supplement No. 1 to part 740 of the EAR. (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 sanctions that apply to Cuba, Iran, North Korea, and 
Syria.)
License Requirements 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 ECCN 1C350.d. ECCN 1C350 controls any such 
kits in which the amount of any single chemical listed in 1C350.b, .c, 
or .d exceeds 300 grams by weight.

[[Page 748]]

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 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

[[Page 749]]

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: 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: (1) Medical products containing ricin or saxitoxin, as 
follows, are controlled for CW reasons under ECCN 1C351:
    (a) Ricinus Communis AgglutininII (RCAII), 
also known as ricin D, or Ricinus Communis LectinIII 
(RCLIII);
    (b) Ricinus Communis LectinIV (RCLIV), also 
known as ricin E; or
    (c) Saxitoxin identified by C.A.S. 35523-89-8.
    (2) The export of a ``medical product'' that is an ``Investigational 
New Drug'' (IND), as defined in 21 CFR 312.3, is subject to certain U.S. 
Food and Drug Administration (FDA) requirements that are independent of 
the export requirements specified in this ECCN or elsewhere in the EAR. 
These FDA requirements are described in 21 CFR 312.110 and must be 
satisfied in addition to any requirements specified in the EAR.
    (3) Also see 21 CFR 314.410 for FDA requirements concerning exports 
of new drugs and new drug substances.
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 testing and human 
administration in the treatment of medical conditions, (2) prepackaged 
for distribution as clinical or medical products, and (3) approved by 
the U.S. Food and Drug Administration either to be marketed as clinical 
or medical products or for use as an ``Investigational New Drug'' (IND) 
(see 21 CFR part 312). 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 or ECCN 1C360. 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

[[Page 750]]

those to whom or to which it is administered.
Items:
    a. Vaccines against items controlled by ECCN 1C351, 1C352, 1C353, 
1C354, or 1C360;
    b. Immunotoxins containing items controlled by 1C351.d;
    c. Medical products containing botulinum toxins controlled by ECCN 
1C351.d.3 or conotoxins controlled by ECCN 1C351.d.6;
    d. Medical products containing items controlled by ECCN 1C351.d 
(except botulinum toxins controlled by ECCN 1C351.d.3, conotoxins 
controlled by ECCN 1C351.d.6, and items controlled for CW reasons under 
1C351.d.11 or .d.12);
    e. Diagnostic and food testing kits containing items controlled by 
ECCN 1C351.d (except items controlled for CW reasons under ECCN 
1C351.d.11 or .d.12).

1C992 Commercial charges and devices containing energetic materials, 
          n.e.s and nitrogen trifluoride in a gaseous state
License Requirements
Reason for Control: AT, RS.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.
RS applies to entire entry.............  A license is required for items
                                          controlled by this entry for
                                          export or reexport to Iraq and
                                          transfer within Iraq for
                                          regional stability reasons.
                                          The Commerce Country Chart is
                                          not designed to determine RS
                                          license requirements for this
                                          entry. SeeSec.Sec.  742.6
                                          and 746.3 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: (1) 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. (2) Nitrogen 
trifluoride when not in a gaseous state is 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, Directorate 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, Directorate of Defense Trade Controls. (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,

[[Page 751]]

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.

    m. Nitrogen trifluoride (NF3) in a gaseous state.

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, RS

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.
RS applies to entire entry.............  A license is required for items
                                          controlled by this entry for
                                          export or reexport to Iraq or
                                          transfer within Iraq for
                                          regional stability reasons.
                                          The Commerce Country Chart is
                                          not designed to determine RS
                                          license requirements for this
                                          entry. SeeSec.Sec.  742.6
                                          and 746.3 of the EAR for
                                          additional information.
------------------------------------------------------------------------

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 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 Controls paragraph of this ECCN) that contain CWC 
Schedule 2 or 3 chemicals listed in 1C350.b or .c. ECCN 1C350 controls 
any such 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.):

[[Page 752]]

    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
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, RS.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.
RS applies to entire entry.............  A license is required for items
                                          controlled by this entry for
                                          export or reexport to Iraq or
                                          transfer within Iraq for
                                          regional stability reasons.
                                          The Commerce Country Chart is
                                          not designed to determine RS
                                          license requirements for this
                                          entry. SeeSec.Sec.  742.6
                                          and 746.3 of the EAR for
                                          additional information.
------------------------------------------------------------------------

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.

1C998 Non-fluorinated polymeric substances, not controlled by 1C008, 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
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. Polyarylene ether ketones, as follows:
    a.1 Polyether ether ketone (PEEK);
    a.2. Polyether ketone ketone (PEKK);
    a.3. Polyether ketone (PEK);
    a.4. Polyether ketone ether ketone ketone (PEKEKK);
    b. [Reserved]

1C999 Specific Materials, n.e.s., as Follows (See List of Items 
          Controlled).
License Requirements
Reason for Control: AT, RS.

[[Page 753]]



------------------------------------------------------------------------
               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 license
                                          requirements for this entry.
                                          SeeSec.  742.19 of the EAR
                                          for additional information.
RS applies to entire entry.............  A license is required for items
                                          controlled by this entry for
                                          export or reexport to Iraq or
                                          transfer within Iraq for
                                          regional stability reasons.
                                          The Commerce Country Chart is
                                          not designed to determine RS
                                          license requirements for this
                                          entry. SeeSec.Sec.  742.6
                                          and 746.3 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. Fluorine;
    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 1D002, 1D101, 1D201, and 1D999.
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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under Exceptions.
License Exceptions
CIV: Yes
TSR: Yes
STA: License Exception STA may not be used to ship or transmit 
``software'' for the ``development'' of organic ``matrix'', metal 
``matrix'' or carbon ``matrix'' laminates or ``composites'' specified in 
ECCN 1A002 to any of the eight destinations listed inSec. 740.20(c)(2) 
of the EAR.
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, 
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

1D003 ``Software'' specially designed or modified to enable equipment to 
          perform the functions of equipment controlled under 1A004.c or 
          1A004.d.
License Requirements
Reason for Control: NS, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
RS applies to software for equipment     RS Column 2.
 controlled by 1A004.d.
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 754]]

Related Definitions: N/A
Items:
    The list of items controlled is contained in the ECCN heading.

1D018 ``Software'' specially designed or modified for the 
          ``development'', ``production'', or ``use'' of items 
          controlled by 1B018.
License Requirements
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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

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 Controls.
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 755]]

Related Definitions: See Section 772.1 of the EAR for the definitions of 
``software,'' ``program,'' and ``microprogram.''
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. SeeSec. 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, 1A004, 1A005, 1A006.b, 1A007, 
          1A008, 1A101, 1B (except 1B999), or 1C (except 1C355, 1C980 to 
          1C984, 1C988, 1C990, 1C991, 1C995 to 1C999).
License Requirements
Reason for Control: NS, MT, NP, CB, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1.
 controlled by 1A001.b and .c, 1A002,
 1A003, 1A005, 1A006.b, 1A007, 1A008,
 1B001 to 1B003, 1B018, 1C001 to 1C011,
 or 1C018.
NS applies to ``technology'' for items   NS Column 2
 controlled by 1A004.
MT applies to ``technology'' for items   MT Column 1.
 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, 1A007, 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,
 1C354, or 1C360.
CB applies to ``technology'' for         CB Column 2.
 materials controlled by 1C350 and for
 chemical detection systems and
 dedicated detectors therefor, in
 1A004.c, that also have the technical
 characteristics described in 2B351.a.
RS applies to technology for equipment   RS Column 2.
 controlled in 1A004.d.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirements Note: SeeSec. 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 Australia, 
Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, 
Ireland, Italy, Japan, Luxembourg, the Netherlands, Norway, 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.
STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment and materials specified 
by ECCNs 1A002, 1C001, 1C007.c or d, 1C010.c or d or 1C012 to any of the 
eight destinations listed inSec. 740.20(c)(2) of the EAR.
List of Items Controlled
Unit: N/A
Related Controls: (1) Also see ECCNs 1E101, 1E201, and 1E202. (2) See 
ECCN 1E002.g for control libraries (parametric technical databases) 
specially designed or modified

[[Page 756]]

to enable equipment to perform the functions of equipment controlled 
under 1A004.c (Nuclear, biological and chemical (NBC) detection 
systems). (3) ``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). (4) ``Technology'' for items described 
in ECCN 1A102 is 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.

1E002 Other ``technology'' 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, except       NS Column 1.
 1E002.g.
NS applies to 1E002.g..................  NS Column 2.
MT applies to 1E002.e..................  MT Column 1.
NP applies to ``technology'' for items   NP Column 1.
 controlled by 1A002 for NP reasons.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Requirement Note
SeeSec. 743.1 of the EAR for reporting requirements for exports under 
License Exceptions.
License Exceptions
CIV: N/A
TSR: Yes, except for 1E002.e
STA: License Exception STA may not be used to ship or transmit any item 
in 1E002.e or .f to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
List of Items Controlled
Unit: N/A
Related Controls: See also 1E001, 1E101,1E102, 1E202, and 1E994 for 
``technology'' related to 1E002.e or .f.
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:
    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. Any of the following total metallic impurities (excluding 
intentional additions):
    c.1.b.1. Less than 1,000 ppm for single oxides or carbides; or
    c.1.b.2. Less than 5,000 ppm for complex compounds or single 
nitrides; and
    c.1.c. Being any of the following:
    c.1.c.1. Zirconia (CAS 1314-23-4) with an average particle size 
equal to or less than 1 [micro]m and no more than 10% of the particles 
larger than 5 [micro]m;
    c.1.c.2. Other base materials with an average particle size equal to 
or less than 5 [micro]m and no more than 10% of the particles larger 
than 10 [micro]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 [micro]m; and
    c.1.c.3.c. Continuous or chopped fibers less than 10 [micro]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.

    g. 'Libraries' (parametric technical databases) specially designed 
or modified to enable equipment to perform the functions of equipment 
controlled under 1A004.c or 1A004.d.

    Technical Note: For the purpose of 1E002.g, `library' (parametric 
technical database) means a collection of technical information, 
reference to which may enhance the performance of relevant equipment or 
systems.

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

[[Page 757]]



------------------------------------------------------------------------
               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, 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.

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
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, 1A007, 1A202, 1A225 to 
          1A227, 1B201, 1B225 to 1B232, 1B233.b, 1C002.b.3 and b.4, 
          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, for items    NP Column 1.
 controlled 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.

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

[[Page 758]]



------------------------------------------------------------------------
               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
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, 1C354 or 1C360.
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, 1C354, or 1C360.
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.
 SeeSec.  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:
    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

[[Page 759]]



------------------------------------------------------------------------
               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.

1E998 ``Technology'' for the ``development'' or ``production'' of 
          processing equipment controlled by 1B999, and materials 
          controlled by 1C996, 1C997, 1C998, or 1C999.
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.

                           Annex to Category 1

             List of Explosives (See ECCNs 1A004 and 1A008)

    1. ADNBF (aminodinitrobenzofuroxan or 7-amino-4,6-
dinitrobenzofurazane-1-oxide) (CAS 97096-78-1);
    2. BNCP (cis-bis (5-nitrotetrazolato) tetra amine-cobalt (III) 
perchlorate) (CAS 117412-28-9);
    3. CL-14 (diamino dinitrobenzofuroxan or 5,7-diamino-4,6-
dinitrobenzofurazane-1-oxide) (CAS 117907-74-1);
    4. CL-20 (HNIW or Hexanitrohexaazaisowurtzitane) (CAS 135285-90-4); 
chlathrates of CL-20;
    5. CP (2-(5-cyanotetrazolato) penta amine-cobalt (III) perchlorate) 
(CAS 70247-32-4);
    6. DADE (1,1-diamino-2,2-dinitroethylene, FOX7) (CAS 145250-81-3);
    7. DATB (diaminotrinitrobenzene) (CAS 1630-08-6);
    8. DDFP (1,4-dinitrodifurazanopiperazine);
    9. DDPO (2,6-diamino-3,5-dinitropyrazine-1-oxide, PZO) (CAS 194486-
77-6);
    10. DIPAM (3,3[min]-diamino-2,2[min],4,4[min],6,6[min]-
hexanitrobiphenyl or dipicramide) (CAS 17215-44-0);
    11. DNGU (DINGU or dinitroglycoluril) (CAS 55510-04-8);
    12. Furazans as follows:
    a. DAAOF (diaminoazoxyfurazan);
    b. DAAzF (diaminoazofurazan) (CAS 78644-90-3);
    13. HMX and derivatives, as follows:
    a. HMX (Cyclotetramethylenetetranitramine, octahydro-1,3,5,7-
tetranitro-1,3,5,7-tetrazine, 1,3,5,7-tetranitro-1,3,5,7-tetraza-
cyclooctane, octogen or octogene) (CAS 2691-41-0);
    b. difluoroaminated analogs of HMX;
    c. K-55 (2,4,6,8-tetranitro-2,4,6,8-tetraazabicyclo [3,3,0]-
octanone-3, tetranitrosemiglycouril or keto-bicyclic HMX) (CAS 130256-
72-3);
    14. HNAD (hexanitroadamantane) (CAS 143850-71-9);
    15. HNS (hexanitrostilbene) (CAS 20062-22-0);
    16. Imidazoles as follows:
    a. BNNII (Octahydro-2,5-bis(nitroimino)imidazo [4,5-d]imidazole);
    b. DNI (2,4-dinitroimidazole) (CAS 5213-49-0);
    c. FDIA (1-fluoro-2,4-dinitroimidazole);
    d. NTDNIA (N-(2-nitrotriazolo)-2,4-dinitroimidazole);
    e. PTIA (1-picryl-2,4,5-trinitroimidazole);
    17. NTNMH (1-(2-nitrotriazolo)-2-dinitromethylene hydrazine);
    18. NTO (ONTA or 3-nitro-1,2,4-triazol-5-one) (CAS 932-64-9);
    19. Polynitrocubanes with more than four nitro groups;
    20. PYX (2,6-Bis(picrylamino)-3,5-dinitropyridine) (CAS 38082-89-2);
    21. RDX and derivatives, as follows:
    a. RDX (cyclotrimethylenetrinitramine, cyclonite, T4, hexahydro-
1,3,5-trinitro-1,3,5-triazine, 1,3,5-trinitro-1,3,5-triaza-cyclohexane, 
hexogen or hexogene) (CAS 121-82-4);
    b. Keto-RDX (K-6 or 2,4,6-trinitro-2,4,6-triazacyclohexanone) (CAS 
115029-35-1);
    22. TAGN (triaminoguanidinenitrate) (CAS 4000-16-2);
    23. TATB (triaminotrinitrobenzene) (CAS 3058-38-6);
    24. TEDDZ (3,3,7,7-tetrabis(difluoroamine) octahydro-1,5-dinitro-
1,5-diazocine);
    25. Tetrazoles as follows:
    a. NTAT (nitrotriazol aminotetrazole);
    b. NTNT (1-N-(2-nitrotriazolo)-4-nitrotetrazole);
    26. Tetryl (trinitrophenylmethylnitramine) (CAS 479-45-8);
    27. TNAD (1,4,5,8-tetranitro-1,4,5,8-tetraazadecalin) (CAS 135877-
16-6);
    28. TNAZ (1,3,3-trinitroazetidine) (CAS 97645-24-4);
    29. TNGU (SORGUYL or tetranitroglycoluril) (CAS 55510-03-7);
    30. TNP (1,4,5,8-tetranitro-pyridazino[4,5-d]pyridazine) (CAS 
229176-04-9);
    31. Triazines as follows:

[[Page 760]]

    a. DNAM (2-oxy-4,6-dinitroamino-s-triazine) (CAS 19899-80-0);
    b. NNHT (2-nitroimino-5-nitro-hexahydro-1,3,5-triazine) (CAS 130400-
13-4);
    32. Triazoles as follows:
    a. 5-azido-2-nitrotriazole;
    b. ADHTDN (4-amino-3,5-dihydrazino-1,2,4-triazole dinitramide) (CAS 
1614-08-0);
    c. ADNT (1-amino-3,5-dinitro-1,2,4-triazole);
    d. BDNTA ([bis-dinitrotriazole]amine);
    e. DBT (3,3[min]-dinitro-5,5-bi-1,2,4-triazole) (CAS 30003-46-4);
    f. DNBT (dinitrobistriazole) (CAS 70890-46-9);
    g. [Reserved]
    h. NTDNT (1-N-(2-nitrotriazolo) 3,5-dinitrotriazole);
    i. PDNT (1-picryl-3,5-dinitrotriazole);
    j. TACOT (tetranitrobenzotriazolobenzotriazole) (CAS 25243-36-1);
    33. ``Explosives'' not listed elsewhere in this list having a 
detonation velocity exceeding 8,700 m/s, at maximum density, or a 
detonation pressure exceeding 34 GPa (340 kbar);
    34. Organic ``explosives'' not listed elsewhere in this list 
yielding detonation pressures of 25 GPa (250 kbar) or more that will 
remain stable at temperatures of 523 K (250 [deg]C) or higher, for 
periods of 5 minutes or longer;
    35. Nitrocellulose (containing more than 12.5% nitrogen) (CAS 9004-
70-0);
    36. Nitroglycol (CAS 628-96-6);
    37. Pentaerythritol tetranitrate (PETN) (CAS 78-11-5);
    38. Picryl chloride (CAS 88-88-0);
    39. 2,4,6-Trinitrotoluene (TNT) (CAS 118-96-7);
    40. Nitroglycerine (NG) (CAS 55-63-0);
    41. Triacetone Triperoxide (TATP) (CAS 17088-37-8);
    42. Guanidine nitrate (CAS 506-93-4);
    43. Nitroguanidine (NQ) (CAS 556-88-7).

                    Category 2--Materials Processing

    Note: For quiet running bearings, see the U.S. Munitions List.

                  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, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
MT applies to radial ball bearings       MT Column 1.
 having all tolerances specified in
 accordance with ISO 492 Tolerance
 Class 2 (or ANSI/ABMA Std 20 Tolerance
 Class ABEC-9, or other national
 equivalents) or better and having all
 the following characteristics: An
 inner ring bore diameter between 12
 and 50 mm; an outer ring outside
 diameter between 25 and 100 mm; and a
 width between 10 and 20 mm..
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
LVS: $3000, N/A for MT
GBS: Yes, for 2A001.a, N/A for MT
CIV: Yes, for 2A001.a, N/A for MT
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, 
Directorate of Defense Trade Controls. (See 22 CFR part 121.)
Related Definitions: Annular Bearing Engineers Committee (ABEC).
Items:

    Note: 2A001 does not control balls with tolerances 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 national equivalents), or better, and having both rings and 
rolling elements (ISO 5593), made from monel or beryllium;

    Note: 2A001.a does not control tapered roller bearings.

    b. [Reserved]
    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 (177 [deg]C) and above) position 
sensors.

2A101 Radial Ball Bearings Having all Tolerances Specified in Accordance 
          With ISO 492 Tolerance Class 2 (or ANSI/ABMA Std 20 Tolerance 
          Class ABEC-9 or Other National Equivalents), or Better and 
          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.
------------------------------------------------------------------------


[[Page 761]]

License Exceptions
    LVS: N/A
    GBS: N/A
    CIV: N/A
    List of Items Controlled
    Unit: $ value
    Related Controls: See ECCN 2A001.
    Related Definitions: N/A
Items:
    a. An inner ring bore diameter between 12 and 50 mm;
    b. An outer ring outside diameter between 25 and 100 mm; and
    c. A width between 10 and 20 mm.

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 cm\3\ and 2,000 cm\3\; 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 cm\3\ and 2,000 cm\3\;
    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 2.
 exceed the technical parameters 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: $ 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

[[Page 762]]

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 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 2.
 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

[[Page 763]]

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: Also see 1A004 and 1A995.
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. [Reserved]
    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.

2A984 Concealed object detection equipment operating in the frequency 
          range from 30 GHz to 3000 GHz and having a spatial resolution 
          of 0.5 milliradian up to and including 1 milliradian at a 
          standoff distance of 100 meters; 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: $ value
    Related Controls: (1) Concealed object detection equipment operating 
in the frequency range from 30 GHz to 3000 GHz and having a spatial 
resolution less than 0.5 milliradian (a lower milliradian number means a 
more accurate image resolution) at a standoff distance of 100 meters is 
under the export licensing authority of the U.S. Department of State (22 
CFR parts 120 through 130). (2) Concealed object detection equipment 
operating in the frequency range from 30 GHz to 3000 GHz and having a 
spatial resolution greater than 1 milliradian (a higher milliradian 
number means a less accurate image resolution) at a standoff distance of 
100 meters is designated as EAR99. (3) See ECCNs 2D984 and 2E984 for 
related software and technology controls.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.
    Note: Concealed object detection equipment includes but is not 
limited to equipment for screening people, documents, baggage, other 
personal effects, cargo and/or mail.
    Technical Note: The range of frequencies span what is generally 
considered as the millimeter-wave, submillimeter-wave and terahertz 
frequency regions.

2A991 Bearings and bearing systems not controlled by 2A001.
License Requirements

[[Page 764]]

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, Directorate 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 and North Korea. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information on Cuba 
and Iran. SeeSec. 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: See also 2D994 and 2E994.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

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. SeeSec. 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, 2B201, 2B290 and 2B991 to 2B999: 
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. The number of axes which can be coordinated simultaneously for 
``contouring control'' is the number of axes along or around which, 
during processing of the workpiece, simultaneous and interrelated 
motions are performed

[[Page 765]]

between the workpiece and a tool. This does not include any additional 
axes along or around which other relative motions within the machine are 
performed, such as:
    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. 'Stated positioning accuracy' derived from measurements made 
according to ISO 230/2 (2006) may be used for each specific machine 
model as an alternative to individual machine tests. 'Stated positioning 
accuracy' means the accuracy value provided to BIS as representative of 
the accuracy of a specific machine model.

    Note to paragraph 5: Determination of 'Stated Positioning Accuracy':
    a. Select five machines of a model to be evaluated;
    b. Measure the linear axis accuracies according to ISO 230/2 (2006);
    c. Determine the A-values for each axis of each machine. The method 
of calculating the A-value is described in the ISO standard;
    d. Determine the mean value of the A-value of each axis. This mean 
value A becomes the stated value of each axis for the model (x y * * *);
    e. Since the Category 2 list refers to each linear axis there will 
be as many stated values as there are linear axes;
    f. If any axis of a machine model not controlled by 2B001.a. to 
2B001.c. has a stated accuracy of 5 [micro]m for grinding machines and 
6.5 [micro]m for milling and turning machines or better, the builder 
should be required to reaffirm the accuracy level once every eighteen 
months.

    6. Measurement uncertainty for the positioning accuracy of machine 
tools, as defined in the International Standard ISO 230/2 (2006), shall 
not be considered.

2B001 Machine tools and any combination thereof, for removing (or 
          cutting) metals, ceramics or ``composites'', which, according 
          to the manufacturer's technical specifications, can be 
          equipped with electronic devices for ``numerical control''; 
          and specially designed components 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 2B001.a, .b, .c, and .d,   NP Column 1.
 EXCEPT: (1) turning machines under
 2B001.a with a capacity no greater
 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 according
 to ISO 230/2 (2006) on the x-axis more
 (worse) than 22.5 [micro]m.
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Machine tools in number; components in $ value
Related Controls: (1) See ECCN 2B002 for optical finishing machines. (2) 
See ECCNs 2D001 and 2D002 for software for items controlled under this 
entry. (3) See ECCNs 2E001 (``development''), 2E002 (``production''), 
and 2E201 (``use'') for technology for items controlled under this 
entry. (4) 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:
    a. Crank shafts or cam shafts;
    b. Tools or cutters;
    c. Extruder worms; or
    d. Engraved or faceted jewellery parts.
Note 3: A machine tool having at least two of the three turning, milling 
or grinding capabilities (e.g., a turning machine with milling 
capability), must be evaluated against each applicable entry 2B001.a., 
b. or c.
    a. Machine tools for turning having all of the following:
    a.1. Positioning accuracy according to ISO 230/2 (2006) with ``all 
compensations available'' equal to or less (better) than 4.5 [micro]m 
along one or more 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 producing contact lenses, having all of the following: a. Machine 
controller limited to

[[Page 766]]

using ophthalmic based software for part programming data input; and
    b. No vacuum chucking.
    b. Machine tools for milling having any of the following:
    b.1. Having all of the following:
    b.1.a. Positioning accuracy according to ISO 230/2 (2006) with ``all 
compensations available'' of less (better) than 4.5 [micro]m along one 
or more 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 according to ISO 230/2 (2006) for jig 
boring machines, with ``all compensations available'', of less (better) 
than 3.0 [micro]m along any linear axis; or
    b.4. Fly cutting machines having all of the following:
    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:
    c.1. Having all of the following:
    c.1.a. Positioning accuracy according to ISO 230/2 (2006) with ``all 
compensations available'' of less (better) than 3.0 [micro]m along one 
or more 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:
    a. Cylindrical external, internal, and external-internal grinding 
machines, having all of the following:
    a.1. Limited to cylindrical grinding; and
    a.2. Limited to a maximum workpiece capacity of 150 mm outside 
diameter or length.
    b. Machines designed specifically as jig grinders that do not have a 
z-axis or a w-axis, with a positioning accuracy according to ISO 230/2 
(2006) with ``all compensations available'' less (better) than 3 
[micro]m.
    c. 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:
    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. At least two rotary axes having all of the following:
    e.2.a. Can be coordinated simultaneously for ``contouring control''; 
and
    e.2.b. 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 m and specially designed components therefor.

2B002 Numerically controlled optical finishing machine tools equipped 
          for selective material removal to produce non-spherical 
          optical surfaces having all 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: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number.
Related Controls: See also 2B001.
Related Definitions: For the purposes of 2B002, `MRF' is a material 
removal process using an abrasive magnetic fluid whose viscosity is 
controlled by a magnetic field. `ERF' is a removal process using an 
abrasive fluid whose viscosity is controlled by an electric field. 
`Energetic particle beam finishing' uses Reactive Atom Plasmas (RAP) or 
ion-beams to selectively remove material. `Inflatable membrane tool 
finishing' is a process that uses a pressurized membrane that deforms to 
contact the workpiece over a small area.'Fluid jet finishing' makes use 
of a fluid stream for material removal.
Items:
    a. Finishing the form to less (better) than 1.0 [micro]m;
    b. Finishing to a roughness less (better) than 100 nm rms;
    c. Four or more axes which can be coordinated simultaneously for 
``contouring control''; and
    d. Using any of the following processes:
    d.1. `Magnetorheological finishing (MRF)';
    d.2. `Electrorheological finishing (ERF)';
    d.3. `Energetic particle beam finishing';
    d.4. `Inflatable membrane tool finishing'; or
    d.5. `Fluid jet finishing'.

2B003 ``Numerically controlled'' or manual machine tools, and specially 
          designed components, controls and accessories

[[Page 767]]

          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)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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: Machine Tools in number; components, controls 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.
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: Presses in number; components 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, 2B018, 9B004, and 9B009. (4) For additional 
controls on dies, molds and tooling, see ECCNs 1B101.d, 2B104 and 2B204. 
(5) Also see ECCNs 2B117 and 2B999.a.
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. Having 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 2B105. (4) See also 2B999.i.
Related Definitions: N/A
Items:
    a. Chemical vapor deposition (CVD) production equipment having all 
of the following:
    a.1. A process modified for one of the following:
    a.1.a. Pulsating CVD;
    a.1.b. Controlled nucleation thermal deposition (CNTD); or

[[Page 768]]

    a.1.c. Plasma enhanced or plasma assisted CVD; and
    a.2. Having 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. Ion implantation production equipment having beam currents of 5 
mA or more;
    c. Electron beam physical vapor deposition (EB-PVD) production 
equipment incorporating power systems rated for over 80 kW and 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. Plasma spraying production equipment having any of the following:
    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
    d.2. Incorporating in situ coating thickness control;
    e. Sputter deposition production equipment capable of current 
densities of 0.1 mA/mm\2\ or higher at a deposition rate 15 [micro]m/h 
or more;
    f. Cathodic arc deposition production equipment incorporating a grid 
of electromagnets for steering control of the arc spot on the cathode;
    g. Ion plating production equipment capable of 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, equipment, and 
          ``electronic assemblies'', 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, except     NP Column 1.
 2B006.b.1.d.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    Note: NP applies to measuring systems in 2B006.b.1.c that maintain, 
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: a ``resolution'' over their full scale 
of 0.1 [micro]m or less (better); and a ``measurement uncertainty'' 
equal to or less (better) than (0.2 + L/2,000) [micro]m (L is the 
measured length in mm).
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number, electronic assemblies 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 
2B206 and 2B996.
Related Definitions: N/A
Items:
    a. Computer controlled or ``numerically controlled'' Coordinate 
Measuring Machines (CMM), having a three dimensional length (volumetric) 
maximum permissible error of length measurement (E0,MPE) 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) [micro]m 
(L is the measured length in mm) according to ISO 10360-2 (2009);
    Technical Note: The E0,MPE of the most accurate 
configuration of the CMM specified by the manufacturer (e.g., best of 
the following: Probe, stylus length, motion parameters, environment) and 
with ``all compensations available'' shall be compared to the 1.7 + L/
1,000 [micro]m threshold.
    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 [micro]m within a measuring range up 
to 0.2 mm;
    b.1.b. Linear voltage differential transformer systems having all of 
the following:
    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;
    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, at a temperature of 20 
1 [deg]C, all of the following:
    b.1.c.2.a. A ``resolution'' over their full scale of 0.1 [micro]m or 
less (better); and
    b.1.c.2.b. Capable of achieving a ``measurement uncertainty'', when 
compensated for the refractive index of air, equal to or less

[[Page 769]]

(better) than (0.2 + L/2,000) [micro]m (L is the measured length in mm); 
or
    b.1.d ``Electronic assemblies'' specially designed to provide 
feedback capability in systems controlled by 2B006.b.1.c;
Note:
    2B006.b.1 does not control measuring interferometer systems, with an 
automatic control system that is designed to use no feedback techniques, 
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 (e.g., laser 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: 2B006 includes machine tools, other than those specified by 
2B001, that can be used as measuring machines, if they meet or exceed 
the criteria specified for 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 equipment that meets or    NP Column 1.
 exceeds the criteria in ECCNs 2B207.
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:
    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 potentially explosive munitions environments;
    Note: 2B007.b does not apply to ``robots'' specially designed for 
paint-spraying booths.
    c. Specially designed or rated as radiation-hardened to withstand a 
total radiation dose greater than 5 x 10\3\ 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. Three or more axes which can be coordinated simultaneously for 
``contouring control''; and
    N.B.: For ``laser'' systems see also 2B006.b.1.c and d.

    b. Rotary position feedback units having an ``accuracy'' less 
(better) than 0.00025[deg];
    N.B.: For ``laser'' systems see also 2B006.b.2.
    Note: 2B008.a and 2B008.b apply to units, which are designed to 
determine the positioning information for feedback control, such as 
inductive type devices, graduated scales, infrared systems or ``laser'' 
systems.

    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

[[Page 770]]

          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: N/A
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: For the purpose of 2B009, machines combining the 
function of spin-forming and flow-forming are regarded as flow-forming 
machines.

2B018 Equipment on the Wassenaar Arrangement 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 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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $3000.
GBS: Yes, as follows, except N/A for MT-controlled items or destinations 
for which a license is required for RS reasons: 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.
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;

[[Page 771]]

    q. Small arms rifling machines;
    r. Small arms spill boring machines;
    s. Tank turret bearing grinding machines.

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 equal to or greater than 69 MPa;
    b. Designed to achieve and maintain a controlled thermal environment 
of 873 K (600 [deg]C) or greater; and
    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 and equipment, usable for rockets, 
          missiles, or unmanned aerial vehicles capable of achieving a 
          ``range'' equal to or greater than 300 km and their 
          subsystems, and components therefor, as follows (see List of 
          Items Controlled).
License Requirements

[[Page 772]]

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 an acceleration equal to or greater than 10 g rms between 20 
Hz to 2,000 Hz while imparting forces equal to or greater than 50 kN 
(11,250 lbs.), measured `bare table';
    b. Digital controllers, combined with specially designed vibration 
test ``software'', with a `real-time control bandwidth' greater than 5 
kHz and designed for use with vibration test systems described in 
2B116.a;
    c. Vibration thrusters (shaker units), with or without associated 
amplifiers, capable of imparting a force equal to or greater than 50 kN 
(11,250 lbs.), measured `bare table', 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 equal to or greater than 50 kN, 
measured `bare table', and usable in vibration test systems described in 
2B116.a.

    Technical Notes: (1) `Bare table' means a flat table, or surface, 
with no fixture or fitting.
    (2) `Real-time control bandwidth' is defined as the maximum rate at 
which a controller can execute complete cycles of sampling, processing 
data and transmitting control signals.

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 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: 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

[[Page 773]]

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. Designed or modified to incorporate sliprings or integrated non-
contact devices capable of transferring electrical power, signal 
information, or both; 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.

    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 
          designed or modified to incorporate sliprings or integrated 
          non-contact devices capable of transferring electrical power, 
          signal information, or both.
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

[[Page 774]]

under this entry. (3) Also see ECCNs 2B001, 2B290, and 2B991.
Related Definitions: N/A
Items:
    Note: The identified positioning accuracy values in this entry are 
based on ISO 230/2 (2006), which equates to the values based on ISO 230/
2 (1988) that are used by the Nuclear Supplier's Group (NSG). For 
2B201.a and b.1, this results in a change from 6 [micro]m to 4.5 
[micro]m, in Note to 2B201.b paragraph .b the change is 30 [micro]m to 
22.5 [micro]m, and for 2B201.c the change is from 4 [micro]m to 3 
[micro]m.
    a. Machine tools for turning, that have positioning accuracies 
according to ISO 230/2 (2006) with all compensations available better 
(less) than 4.5 [micro]m along any linear axis (overall positioning) for 
machines capable of machining diameters greater than 35 mm;
    Note: Item 2B201.a does not control bar machines (Swissturn), 
limited to machining only bar feed thru, 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.
    b. Machine tools for milling, having any of the following 
characteristics:
    b.1. Positioning accuracies according to ISO 230/2 (2006) with ``all 
compensations available'' equal to or less (better) than 4.5 [micro]m 
along any linear axis (overall positioning); or
    b.2. Two or more contouring rotary axes.
    Note: 2B201.b does not control milling machines having the following 
characteristics:
    a. X-axis travel greater than 2 m; and
    b. Overall positioning accuracy according to ISO 230/2 (2006) on the 
x-axis more (worse) than 22.5 [micro]m.
    c. Machine tools for grinding, having any of the following 
characteristics:
    c.1. Positioning accuracies according to ISO 230/2 (2006) with ``all 
compensations available'' equal to or less (better) than 3 [micro]m 
along any linear axis (overall positioning); or
    c.2. Two or more contouring rotary axes.
    Note: 2B201.c 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.

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

[[Page 775]]

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) [micro]m tested with a probe of an 
``accuracy'' of less (better) than 0.2 [micro]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 [micro]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.

    c. Angular displacement measuring instruments having an ``angular 
position deviation'' equal to or less (better) than 0.00025[deg];

    Note: 2B206.c does not control optical instruments, such as 
autocollimators, using collimated light to detect angular displacement 
of a mirror.

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

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               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. (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

[[Page 776]]

          characteristics (see List of Items Controlled).
License Requirements
Reason for Control: NP, AT

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               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

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               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
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

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               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

[[Page 777]]

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 (``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

[[Page 778]]

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.

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 2.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Requirement Note:
This ECCN does not control equipment that is both: (1) Specially 
designed for use in civil applications (e.g., food processing, pulp and 
paper processing, or water purification) and (2) inappropriate, by the 
nature of its design, for use in storing, processing, producing or 
conducting and controlling the flow of the chemical weapons precursors 
controlled by 1C350.
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 the term ``chemical 
warfare agents'' are those agents subject to the export licensing 
authority of the U.S. Department of State, Directorate 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. Nickel or alloys with more than 40% nickel by weight;
    a.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    a.4. Glass (including vitrified or enameled coating or glass 
lining);
    a.5. Tantalum or tantalum alloys;
    a.6. Titanium or titanium alloys;
    a.7. Zirconium or zirconium alloys; or

[[Page 779]]

    a.8. Niobium (columbium) or niobium 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. Nickel or alloys with more than 40% nickel by weight;
    b.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    b.4. Glass (including vitrified or enameled coatings or glass 
lining);
    b.5. Tantalum or tantalum alloys;
    b.6. Titanium or titanium alloys;
    b.7. Zirconium or zirconium alloys; or
    b.8. Niobium (columbium) or niobium alloys.
    c. Storage tanks, containers or receivers with a total internal 
(geometric) volume greater than 0.1 m\3\ (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. Nickel or alloys with more than 40% nickel by weight;
    c.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    c.4. Glass (including vitrified or enameled coatings or glass 
lining);
    c.5. Tantalum or tantalum alloys;
    c.6. Titanium or titanium alloys;
    c.7. Zirconium or zirconium alloys; or
    c.8. Niobium (columbium) or niobium 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. Nickel or alloys with more than 40% nickel by weight;
    d.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    d.4. Glass (including vitrified or enameled coatings or glass 
lining);
    d.5. Tantalum or tantalum alloys;
    d.6. Titanium or titanium alloys;
    d.7. Zirconium or zirconium alloys;
    d.8. Niobium (columbium) or niobium alloys;
    d.9. Graphite or carbon-graphite;
    d.10. Silicon carbide; or
    d.11. Titanium carbide.
    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. Nickel or alloys with more than 40% nickel by weight;
    e.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    e.4. Glass (including vitrified or enameled coatings or glass 
lining);
    e.5. Tantalum or tantalum alloys;
    e.6. Titanium or titanium alloys;
    e.7. Zirconium or zirconium alloys;
    e.8. Niobium (columbium) or niobium alloys; or
    e.9. Graphite or carbon-graphite.
    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 produced, processed, or contained are made from any of 
the following materials:
    g.1. Alloys with more than 25% nickel and 20% chromium by weight;
    g.2. Nickel or alloys with more than 40% nickel by weight;
    g.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    g.4. Glass (including vitrified or enameled coating or glass 
lining); and
    g.5. Tantalum or tantalum alloys;
    g.6. Titanium or titanium alloys;
    g.7. Zirconium or zirconium alloys;
    g.8. Niobium (columbium) or niobium alloys; or
    g.9. Ceramic materials, as follows:
    g.9.a. Silicon carbide with a purity of 80% or more by weight;
    g.9.b. Aluminum oxide (alumina) with a purity of 99.9% or more by 
weight; or
    g.9.c. Zirconium oxide (zirconia).
    Technical Note to 2B350.g: The `nominal size' is defined as the 
smaller of the inlet and outlet port diameters
    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:

[[Page 780]]

    h.1. Alloys with more than 25% nickel and 20% chromium by weight;
    h.2. Nickel or alloys with more than 40% nickel by weight;
    h.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    h.4. Glass (including vitrified or enameled coatings or glass 
lining);
    h.5. Tantalum or tantalum alloys;
    h.6. Titanium or titanium alloys;
    h.7. Zirconium or zirconium alloys;
    h.8. Niobium (columbium) or niobium alloys; or
    h.9. Graphite or carbon-graphite.
    i. Multiple-seal and seal-less pumps with manufacturer's specified 
maximum flow-rate greater than 0.6 m\3\/hour (600 liters/hour), or 
vacuum pumps with manufacturer's specified maximum flow-rate greater 
than 5 m\3\/hour (5,000 liters/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 
following materials:
    i.1. Alloys with more than 25% nickel and 20% chromium by weight;
    i.2. Nickel or alloys with more than 40% nickel by weight;
    i.3. Fluoropolymers (polymeric or elastomeric materials with more 
than 35% fluorine by weight);
    i.4. Glass (including vitrified or enameled coatings or glass 
lining);
    i.5. Tantalum or tantalum alloys;
    i.6. Titanium or titanium alloys;
    i.7. Zirconium or zirconium alloys;
    i.8. Niobium (columbium) or niobium alloys.
    i.9. Graphite or carbon-graphite;
    i.10. Ceramics; or
    i.11. Ferrosilicon (high silicon iron 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. Nickel or alloys with more than 40% nickel by weight; or
    j.3. Ceramics.
Technical Note 1: 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.
Technical Note 2: For the items listed in 2B350, the term `alloy,' when 
not accompanied by a specific elemental concentration, is understood as 
identifying those alloys where the identified metal is present in a 
higher percentage by weight than any other element.
Technical Note 3: The materials used for gaskets, packing, seals, screws 
or washers, or other materials performing a sealing function, do not 
determine the control status of the items in this ECCN, provided that 
such components are designed to be interchangeable.

2B351 Toxic gas monitoring systems and their dedicated detecting 
          components (i.e., detectors, sensor devices, and replaceable 
          sensor cartridges), as follows, except those systems and 
          detectors controlled by ECCN 1A004.c (see List of Items 
          Controlled).
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
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number.
Related Controls: See ECCN 2D351 for ``software'' for toxic gas 
monitoring systems and their dedicated detecting components controlled 
by this ECCN. Also see ECCN 1A004, which controls chemical detection 
systems and specially designed components therefor that are specially 
designed or modified for detection or identification of chemical warfare 
agents, but not specially designed for military use, and ECCN 1A995, 
which controls certain detection equipment and components not controlled 
by ECCN 1A004 or by this ECCN.
Related Definitions: (1) For the purposes of this entry, the term 
``dedicated'' means committed entirely to a single purpose or device. 
(2) 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 0.3 mg/m\3\; or
    b. Designed for the detection of cholinesterase-inhibiting activity.


[[Page 781]]


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 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: See ECCNs 1A004 and 1A995 for protective equipment 
that is not covered by this entry. Also see ECCN 9A120 for controls on 
certain ``UAV'' systems designed or modified to dispense an aerosol and 
capable of carrying elements of a payload in the form of a particulate 
or liquid, other than fuel components of such vehicles, of a volume 
greater than 20 liters.
    Related Definitions: (1) ``Lighter than air vehicles''--balloons and 
airships that rely on hot air or on lighter-than-air gases, such as 
helium or hydrogen, for their lift. (2) ``UAVs''--Unmanned Aerial 
Vehicles. (3) ``VMD''--Volume Median Diameter.
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 (3rd edition, 
Geneva, 2004).

    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 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. Having any of the following characteristics:
    d.1.b.1. Capable of being sterilized or disinfected in-situ; or
    d.1.b.2. Using disposable or single-use filtration components.

    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 (lyophilization) equipment with 
a condenser capacity of 10 kgs of ice or greater in 24 hours (10 liters 
of water or greater in 24 hours), but less than 1,000 kgs of ice in 24 
hours (less than 1,000 liters of water 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.
    h. Spraying or fogging systems and components therefor, as follows:
    h.1. Complete spraying or fogging systems, specially designed or 
modified for fitting to aircraft, ``lighter than air vehicles,'' or 
``UAVs,'' capable of delivering, from a liquid suspension, an initial 
droplet ``VMD'' of less

[[Page 782]]

than 50 microns at a flow rate of greater than 2 liters per minute;
    h.2. Spray booms or arrays of aerosol generating units, specially 
designed or modified for fitting to aircraft, ``lighter than air 
vehicles,'' or ``UAVs,'' capable of delivering, from a liquid 
suspension, an initial droplet ``VMD'' of less than 50 microns at a flow 
rate of greater than 2 liters per minute;
    h.3. Aerosol generating units specially designed for fitting to the 
systems specified in paragraphs h.1 and h.2 of this ECCN.

    Technical Notes: 1. Aerosol generating units are devices specially 
designed or modified for fitting to aircraft and include nozzles, rotary 
drum atomizers and similar devices.
    2. This ECCN does not control spraying or fogging systems and 
components, as specified in 2B352.h., that are demonstrated not to be 
capable of delivering biological agents in the form of infectious 
aerosols.
    3. Droplet size for spray equipment or nozzles specially designed 
for use on aircraft or ``UAVs'' should be measured using either of the 
following methods (pending the adoption of internationally accepted 
standards):
    a. Doppler laser method,
    b. Forward laser diffraction method.

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 according to ISO 230/2 (2006), with all 
compensations available:
    c.2.a. Better than 15 [micro]m along any linear axis (overall 
positioning) for grinding machines;
    c.2.b. Better than 15 [micro]m along any linear axis (overall 
positioning) for milling machines; or
    c.2.c. Better than 15 [micro]m 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);

[[Page 783]]

    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;
    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.

[[Page 784]]

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:
    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. SeeSec. 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, 2B109, 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: SeeSec. 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
STA: License Exception STA may not be used to ship or transmit 
``software'', other than that specified by ECCN 2D002, specially 
designed for the ``development'' or ``production'' of equipment as 
follows:

[[Page 785]]

ECCN 2B001 entire entry; or ``Numerically controlled'' or manual machine 
tools as specified in 2B003 to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
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.
------------------------------------------------------------------------

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: The list of items controlled is contained in the ECCN heading.

    Note 1: 2D002 does not control ``software'' specially designed or 
modified for the operation of machine tools not controlled by Category 
2.
    Note 2: 2D002 does not control ``software'' for items controlled by 
2B002. See 2D001 for control of ``software'' for items controlled by 
2B002.

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           MT Column 1.
 equipment controlled by 2B018 for MT
 reasons.
AT applies to entire entry.............  AT Column 1.
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: Yes.
List of Items Controlled
Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

2D101 ``Software'' 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.

[[Page 786]]

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

------------------------------------------------------------------------
               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.

2D351 Dedicated ``software'' for toxic gas monitoring systems and their 
          dedicated detecting components controlled by ECCN 2B351.
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.
Related Definitions: (1) For the purposes of this entry, the term 
``dedicated'' means committed entirely to a single purpose or device. 
(2) See Section 772.1 of the EAR for the definitions of ``software,'' 
``program,'' and ``microprogram.''
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.

2D984 ``Software'' ``required'' for the ``development'', ``production'' 
          or ``use'' of concealed object detection equipment controlled 
          by 2A984.
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: (1) ``Software'' ``required'' for the ``development'', 
``production'' or ``use'' of concealed object detection equipment 
operating in the frequency range from 30 GHz to 3000 GHz and having a 
spatial resolution less than 0.5 milliradian (a lower milliradian number 
means a more accurate image resolution) at a standoff distance of 100 
meters is under the export licensing authority of the U.S. Department of 
State (22 CFR parts 120 through 130). (2) ``Software'' ``required'' for 
the ``development'', ``production'' or ``use'' of concealed object 
detection equipment operating in the frequency range from 30 GHz to 3000 
GHz and having a spatial resolution greater than 1 milliradian spatial 
resolution (a higher milliradian number means a less accurate image 
resolution) at a standoff distance of 100 meters is designated as EAR99. 
(3) See ECCNs 2A984 and 2E984 for related commodity and technology 
controls.
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

[[Page 787]]

          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 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 and Iran. SeeSec. 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.

                              E. Technology

2E001 ``Technology'' according to the General Technology Note for the 
          ``development'' of equipment or ``software'' controlled by 2A 
          (except 2A983, 2A984, 2A991, or 2A994), 2B (except 2B991, 
          2B993, 2B996, 2B997, or 2B998), or 2D (except 2D983, 2D984, 
          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 2.
 equipment controlled by 2B350 to
 2B352, valves controlled by 2A226 or
 2A292 having the characteristics of
 those controlled by 2B350.g, and
 software controlled by 2D351.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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

[[Page 788]]

STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' of ``software'' specified in the License Exception STA 
paragraph in the License Exception section of ECCN 2D001 or for the 
``development'' of equipment as follows: ECCN 2B001 entire entry; or 
``Numerically controlled'' or manual machine tools as specified in 2B003 
to any of the eight destinations listed inSec. 740.20(c)(2) of the 
EAR.
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.
    Note: ECCN 2E001 includes ``technology'' for the integration of 
probe systems into coordinate measurement machines specified by 2B006.a.

2E002 ``Technology'' according to the General Technology Note for the 
          ``production'' of equipment controlled by 2A (except 2A983, 
          2A984, 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 2.
 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: SeeSec. 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
STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``production'' of equipment as follows: ECCN 2B001 entire entry; or 
``Numerically controlled'' or manual machine tools as specified in 2B003 
to any of the eight destinations listed inSec. 740.20(c)(2) of the 
EAR.
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;
    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'':

[[Page 789]]

    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)
                              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)

[[Page 790]]

 
                              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)
                              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''.

[[Page 791]]

 
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.

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% by 
weight in various proportions and combinations, except:
    a. CoCrAlY coatings which contain less than 22% by weight of 
chromium, less than 7% by weight of aluminum and less than 2% by weight 
of yttrium;
    b. CoCrAlY coatings which contain 22 to 24% by weight of chromium, 
10 to 12% by

[[Page 792]]

weight of aluminum and 0.5 to 0.7% by weight of yttrium; or
    c. NiCrAlY coatings which contain 21 to 23% by weight of chromium, 
10 to 12% by weight of aluminum and 0.9 to 1.1% by weight 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 Category 2.
    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' are coatings constructed of multi-layers of 
insulator materials in which the interference properties of a design 
composed of materials of various refractive indices are used to reflect, 
transmit or absorb various wavelength bands. Dielectric layers refers to 
more than four dielectric layers or dielectric/metal ``composite'' 
layers.
    16. `Cemented tungsten carbide' does not include cutting and forming 
tool materials consisting of tungsten carbide/(cobalt, nickel), titanium 
carbide/(cobalt, nickel), chromium carbide/nickel-chromium and chromium 
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, 
medical devices or molds, for casting or molding of plastics, 
manufactured from alloys containing less than 5% beryllium.
    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.
    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;

[[Page 793]]

    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 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;

[[Page 794]]

    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;
    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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

CIV: N/A
TSR: Yes.

[[Page 795]]

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. (2) Also see 2E201.
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, 2B201, 2B204, 2B206, 
          2B207, 2B209, 2B225 to 2B232, 2D002, 2D201 or 2D202 for NP 
          reasons.
License Requirements
Reason for Control: NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.
CB applies to ``technology'' for valves  CB Column 2.
 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: Also see 2E290 and 2E991.
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 2.
 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
Items: The list of items controlled is contained in the ECCN heading.

2E301 ``Technology'' according to the ``General Technology Note'' for 
          the ``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 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 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

[[Page 796]]

Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

2E984 ``Technology'' ``required'' for the ``development'', 
          ``production'' or ``use'' of equipment controlled by 2A984 or 
          ``required'' for the ``development'' of ``software'' 
          controlled by 2D984.
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: (1) ``Technology'' ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment operating in the frequency range from 30 GHz to 3000 GHz and 
having a spatial resolution less than 0.5 milliradian (a lower 
milliradian number means a more accurate image resolution) at a standoff 
distance of 100 meters or ``required'' for the ``development'' of 
``software'' ``required'' for the ``development'', ``production'' or 
``use'' of concealed object detection equipment operating in the 
frequency range from 30 GHz to 3000 GHz and having a spatial resolution 
less than 0.5 milliradian at a standoff distance of 100 meters is under 
the export licensing authority of the U.S. Department of State (22 CFR 
parts 120 through 130). (2) ``Technology'' ``required'' for the 
``development'', ``production'' or ``use'' of concealed object detection 
equipment operating in the frequency range from 30 GHz to 3000 GHz and 
having a spatial resolution greater than 1 milliradian spatial 
resolution (a higher milliradian number means a less accurate image 
resolution) at a standoff distance of 100 meters or ``required'' for the 
``development'' of ``software'' ``required'' for the ``development'', 
``production'' or ``use'' of concealed object detection equipment 
operating in the frequency range from 30 GHz to 3000 GHz and having a 
spatial resolution greater than 1 milliradian spatial resolution (a 
higher milliradian number means a less accurate image resolution) at a 
standoff distance of 100 meters is designated as EAR99. (3) See ECCNs 
2A984 and 2D984 for related commodity and software controls.
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 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 and Iran. SeeSec. 742.19 of the EAR 
for additional information on North Korea.
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 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, 
3A001.a.12 or 3A001.a.13, 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, 3A001.a.12 or 3A001.a.13 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

[[Page 797]]

circuits is determined in 3A001.a.3 to 3A001.a.9, 3A001.a.12 and 
3A001.a.13.

3A001 Electronic components and specially designed components therefor, 
          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, b.9, .d, .e, .f, and .g
$5000: 3A001.a (except a.1.a and a.5.a when controlled for MT), and .b.4 
to b.7
GBS: Yes for 3A001.a.1.b, a.2 to a.13 (except .a.5.a when controlled for 
MT), b.2, b.8 (except for TWTAs exceeding 18 GHz), b.9., b.10, .g, and 
.h.
CIV: Yes for 3A001.a.3, 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, Directorate of Defense 
Trade Controls (22 CFR part 121) when ``space qualified'' and operating 
at frequencies higher than 31.8 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 traveling wave tube amplifiers (TWTA) defined in 
3A001.b.8; and derivatives thereof; (2) The following commodities are 
also under the export licensing authority of the Department of State, 
Directorate of Defense Trade Controls (22 CFR part 121): (a) ``Space 
qualified'' solar cells, coverglass-interconnect-cells or covered-
interconnect-cells (CIC) assemblies, solar arrays and/or solar panels, 
with a minimum average efficiency of 31% or greater measured at an 
operating temperature of 301 K (28 [deg]C) under simulated `AM0' 
illumination with an irradiance of 1,367 Watts per square meter (W/
m\2\), and associated solar concentrators, power conditioners and/or 
controllers, bearing and power transfer assemblies, and deployment 
hardware/systems; (b) Radiation-hardened microelectronic circuits 
controlled by Category XV (d) of the United States Munitions List 
(USML); and (c) All specifically designed or modified systems or 
subsystems, components, parts, accessories, attachments, and associated 
equipment controlled by Category XV (e) of the USML. See also 3A101, 
3A201, and 3A991. (3) See ECCN 3A982.a for discrete microwave 
transistors not controlled by paragraph .b.3 of this entry. (4) Packaged 
microwave ``monolithic integrated circuits'' (packaged MMIC) power 
amplifiers that operate within the frequency range specified in 3A982.b 
and that have the dimensional and output power characteristics specified 
for packaged MMIC power amplifiers specified in ECCN 3A982 are 
controlled by ECCN 3A982 even if such packaged MMIC power amplifiers 
also operate within the frequency range specified in ECCN 3A001.b.2.a.
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. 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, Directorate 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/cm\2\ or higher on silicon, or its equivalent for other 
materials;

    Note: 3A001.a.1.c does not apply to Metal Insulator Semiconductors 
(MIS).


[[Page 798]]


    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, 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 is 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);

    Note: 3A001.a.2 does not apply to integrated circuits for civil 
automobile or railway train applications.

    a.3. ``Microprocessor microcircuits'', ``microcomputer 
microcircuits'' and microcontroller microcircuits, manufactured from a 
compound semiconductor and operating at a clock frequency exceeding 40 
MHz;

    Note: 3A001.a.3 includes digital signal processors, digital array 
processors and digital coprocessors.

    a.4. [Reserved]
    a.5. Analog-to-Digital Converter (ADC) and Digital-to-Analog 
Converter (DAC) integrated circuits, as follows:
    a.5.a. ADCs having any of the following:
    a.5.a.1. A resolution of 8 bit or more, but less than 10 bit, with 
an output rate greater than 500 million words per second;
    a.5.a.2 A resolution of 10 bit or more, but less than 12 bit, with 
an output rate greater than 300 million words per second;
    a.5.a.3. A resolution of 12 bit with an output rate greater than 200 
million words per second;
    a.5.a.4. A resolution of more than 12 bit but equal to or less than 
14 bit with an output rate greater than 125 million words per second; or
    a.5.a.5. A resolution of more than 14 bit with an output rate 
greater than 20 million words per second;
    Technical Notes: 1. A resolution of n bit corresponds to a 
quantization of 2\n\ levels.
    2. The number of bits in the output word is equal to the resolution 
of the ADC.
    3. The output rate is the maximum output rate of the converter, 
regardless of architecture or oversampling.
    4. For `multiple channel ADCs', the outputs are not aggregated and 
the output rate is the maximum output rate of any single channel.
    5. For `interleaved ADCs' or for `multiple channel ADCs' that are 
specified to have an interleaved mode of operation, the outputs are 
aggregated and the output rate is the maximum combined total output rate 
of all of the outputs.
    6. Vendors may also refer to the output rate as sampling rate, 
conversion rate or throughput rate. It is often specified in megahertz 
(MHz) or mega samples per second (MSPS).
    7. For the purpose of measuring output rate, one output word per 
second is equivalent to one Hertz or one sample per second.
    8. `Multiple channel ADCs' are defined as devices which integrate 
more than one ADC, designed so that each ADC has a separate analog 
input.
    9. `Interleaved ADCs' are defined as devices which have multiple ADC 
units that sample the same analog input at different times such that 
when the outputs are aggregated, the analog input has been effectively 
sampled and converted at a higher sampling rate.
    a.5.b. Digital-to-Analog Converters (DAC) having any of the 
following:
    a.5.b.1. A resolution of 10 bit or more with an `adjusted update 
rate' of 3,500 MSPS or greater; or
    a.5.b.2. A resolution of 12-bit or more with an `adjusted update 
rate' of equal to or greater than 1,250 MSPS and having any of the 
following:
    a.5.b.2.a. A settling time less than 9 ns to 0.024% of full scale 
from a full scale step; or
    a.5.b.2.b. A `Spurious Free Dynamic Range' (SFDR) greater than 68 
dBc (carrier) when synthesizing a full scale analog signal of 100 MHz or 
the highest full scale analog signal frequency specified below 100 MHz.
    Technical Notes: 1. `Spurious Free Dynamic Range' (SFDR) is defined 
as the ratio of the RMS value of the carrier frequency (maximum signal 
component) at the input of the DAC to the RMS value of the next largest 
noise or harmonic distortion component at its output.
    2. SFDR is determined directly from the specification table or from 
the characterization plots of SFDR versus frequency.
    3. A signal is defined to be full scale when its amplitude is 
greater than -3 dBfs (full scale).
    4. `Adjusted update rate' for DACs is:
    a. For conventional (non-interpolating) DACs, the `adjusted update 
rate' is the rate at which the digital signal is converted to an analog 
signal and the output analog values are changed by the DAC.For DACs 
where the interpolation mode may be bypassed (interpolation factor of 
one), the DAC should be considered as a conventional (non-interpolating) 
DAC.

[[Page 799]]

    b. For interpolating DACs (oversampling DACs), the `adjusted update 
rate' is defined as the DAC update rate divided by the smallest 
interpolating factor. For interpolating DACs, the `adjusted update rate' 
may be referred to by different terms including:
     Input data rate
     Input word rate
     Input sample rate
     Maximum total input bus rate
     Maximum DAC clock rate for DAC clock input.

    a.6. Electro-optical and ``optical integrated circuits'', designed 
for ``signal processing'' and 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. A maximum number of digital input/outputs greater than 200; 
or
    a.7.b. A system gate count of greater than 230,000;
    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).
    Technical Notes: 1. `Field programmable logic devices' are also 
known as field programmable gate or field programmable logic arrays.
    2. Maximum number of digital input/outputs in 3A001.a.7.a is also 
referred to as maximum user input/outputs or maximum available input/
outputs, whether the integrated circuit is packaged or bare die.

    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 1,500 terminals;
    a.10.b. A typical ``basic gate propagation delay time'' of less than 
0.02 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 [micro]s.
    a.13. Direct Digital Synthesizer (DDS) integrated circuits having 
any of the following:
    a.13.a. A Digital-to-Analog Converter (DAC) clock frequency of 3.5 
GHz or more and a DAC resolution of 10 bit or more, but less than 12 
bit; or
    a.13.b. A DAC clock frequency of 1.25 GHz or more and a DAC 
resolution of 12 bit or more;
    Technical Note: The DAC clock frequency may be specified as the 
master clock frequency or the input clock frequency.
    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 and having all of the following:

    a. Does not exceed 31.8 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 
having all the following:

    (a) An average output power equal to or less than 50 W; and
    (b) Designed or rated for operation in any frequency band and having 
all of the following:
    (1) Exceeds 31.8 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. Tubes operating at frequencies exceeding 31.8 GHz;
    b.1.a.2. Tubes 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;
    b.1.a.4. Helix tubes, or derivatives thereof, having any of the 
following:
    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'';

[[Page 800]]

    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/cm\2\;
    b.2. Microwave ``Monolithic Integrated Circuits'' (MMIC) power 
amplifiers having any of the following:
    b.2.a. Rated for operation at frequencies exceeding 3.2 GHz up to 
and including 6.8 GHz and with an average output power greater than 4W 
(36 dBm) with a ``fractional bandwidth'' greater than 15%;
    b.2.b. Rated for operation at frequencies exceeding 6.8 GHz up to 
and including 16 GHz and with an average output power greater than 1W 
(30 dBm) with a ``fractional bandwidth'' greater than 10%;
    b.2.c. Rated for operation at frequencies exceeding 16 GHz up to and 
including 31.8 GHz and with an average output power greater than 0.8W 
(29 dBm) with a ``fractional bandwidth'' greater than 10%;
    b.2.d. Rated for operation at frequencies exceeding 31.8 GHz up to 
and including 37.5 GHz and with an average output power greater than 0.1 
nW;
    b.2.e. Rated for operation at frequencies exceeding 37.5 GHz up to 
and including 43.5 GHz and with an average output power greater than 
0.25W (24 dBm) with a ``fractional bandwidth'' greater than 10%; or
    b.2.f. Rated for operation at frequencies exceeding 43.5 GHzand with 
an average output power greater than 0.1 nW.
    Note 1: [Reserved]
    Note 2: The control status of the MMIC whose rated operating 
frequency includes frequencies listed in more than one frequency range, 
as defined by 3A001.b.2.a through 3A001.b.2.f, is determined by the 
lowest average output power control threshold.
    Note 3: Notes 1 and 2 following the Category 3 heading for product 
group A. Systems, Equipment, and Components mean that 3A001.b.2 does not 
control MMICs if they are specially designed for other applications, 
e.g., telecommunications, radar, automobiles.
    b.3. Discrete microwave transistors having any of the following:
    b.3.a. Rated for operation at frequencies exceeding 3.2 GHz up to 
and including 6.8 GHz and having an average output power greater than 
60W (47.8 dBm);
    b.3.b. Rated for operation at frequencies exceeding 6.8 GHz up to 
and including 31.8 GHz and having an average output power greater than 
20W (43 dBm);
    b.3.c. Rated for operation at frequencies exceeding 31.8 GHz up to 
and including 37.5 GHz and having an average output power greater than 
0.5W (27 dBm);
    b.3.d. Rated for operation at frequencies exceeding 37.5 GHz up to 
and including 43.5 GHz and having an average output power greater than 
1W (30 dBm); or
    b.3.e. Rated for operation at frequencies exceeding 43.5 GHz and 
with an average output power greater than 0.1 nW;
    Note: The control status of a transistor whose rated operating 
frequency includes frequencies listed in more than one frequency range, 
as defined by 3A001.b.3.a through 3A001.b.3.e, is determined by the 
lowest average output power control threshold.
    b.4. Microwave solid state amplifiers and microwave assemblies/
modules containing microwave solid state amplifiers, having any of the 
following:
    b.4.a. Rated for operation at frequencies exceeding 3.2 GHz up to 
and including 6.8 GHz and with an average output power greater than 60W 
(47.8 dBm) with a ``fractional bandwidth'' greater than 15%;
    b.4.b. Rated for operation at frequencies exceeding 6.8 GHz up to 
and including 31.8 GHz and with an average output power greater than 15W 
(42 dBm) with a ``fractional bandwidth'' greater than 10%;
    b.4.c. Rated for operation at frequencies exceeding 31.8 GHz up to 
and including 37.5 GHz and with an average output power greater than 0.1 
nW;
    b.4.d. Rated for operation at frequencies exceeding 37.5 GHz up to 
and including 43.5 GHz and with an average output power greater than 1W 
(30 dBm) with a ``fractional bandwidth'' greater than 10%;
    b.4.e. Rated for operation at frequencies exceeding 43.5 GHz and 
with an average output power greater than 0.1 nW; or
    b.4.f. Rated for operation at frequencies above 3.2 GHz and all of 
the following:
    b.4.f.1. An average output power (in watts), P, greater than 150 
divided by the maximum operating frequency (in GHz) squared [P 
 150 W*GHz\2\/fGHz\2\];
    b.4.f.2. A ``fractional bandwidth'' of 5% or greater; and
    b.4.f.3. Any two sides perpendicular to one another with length d 
(in cm) equal to or less than 15 divided by the lowest operating 
frequency in GHz [d <= 15 cm*GHz/fGHz];
    Technical Note: 3.2 GHz should be used as the lowest operating 
frequency (fGHz) in the formula in 3A001.b.4.f.3., for 
amplifiers that have a rated operation range extending downward to 3.2 
GHz and below [d<=15cm*GHz/3.2 fGHz].
    N.B.: MMIC power amplifiers should be evaluated against the criteria 
in 3A001.b.2.
    Note 1: [Reserved]
    Note 2: The control status of an item whose rated operating 
frequency includes frequencies listed in more than one frequency range, 
as defined by 3A001.b.4.a through 3A001.b.4.e, is determined by the 
lowest average output power control threshold.

[[Page 801]]

    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 
[micro]s and 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. [Reserved]
    b.7. Converters and harmonic mixers, designed to extend the 
frequency range of equipment described in 3A002.c, 3A002.d, 3A002.e or 
3A002.f beyond the limits stated therein;
    b.8. Microwave power amplifiers containing tubes controlled by 
3A001.b.1 and having all of the following:
    b.8.a. Operating frequencies above 3 GHz;
    b.8.b. An average output power to mass ratio exceeding 80 W/kg; and
    b.8.c. A volume of less than 400 cm\3\;
    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.
    b.9. Microwave power modules (MPM) consisting of, at least, a 
traveling wave tube, a microwave ``monolithic integrated circuit'' and 
an integrated electronic power conditioner and having all of the 
following:
    b.9.a. A `turn-on time' from off to fully operational in less than 
10 seconds;
    b.9.b. A volume less than the maximum rated power in Watts 
multiplied by 10 cm\3\/W; and
    b.9.c. An ``instantaneous bandwidth'' greater than 1 octave 
(fmax.  2fmin,) and having any of the 
following:
    b.9.c.1. For frequencies equal to or less than 18 GHz, an RF output 
power greater than 100 W; or
    b.9.c.2. A frequency greater than 18 GHz;
    Technical Notes: 1. To calculate the volume in 3A001.b.9.b., the 
following example is provided: for a maximum rated power of 20 W, the 
volume would be: 20 W x 10 cm\3\/W = 200 cm\3\.
    2. The `turn-on time' in 3A001.b.9.a. refers to the time from fully-
off to fully operational, i.e., it includes the warm-up time of the MPM.
    b.10. Oscillators or oscillator assemblies, specified to operate 
with all of the following:
    b.10.a. A single sideband (SSB) phase noise, in dBc/Hz, better than 
-(126+20 log10F-20 log10f) for 10 Hz 10F-20 log10f) for 10 kHz <= F < 500 
kHz;
    Technical Note: In 3A001.b.10, F is the offset from the operating 
frequency in Hz and f is the operating frequency in MHz.
    b.11. ``Frequency synthesizer'' ``electronic assemblies'' having a 
``frequency switching time'' as specified by any of the following:
    b.11.a. Less than 312 ps;
    b.11.b. Less than 100 [micro]s for any frequency change exceeding 
1.6 GHz within the synthesized frequency range exceeding 3.2 GHz but not 
exceeding 10.6 GHz;
    b.11.c. Less than 250 [micro]s for any frequency change exceeding 
550 MHz within the synthesized frequency range exceeding 10.6 GHz but 
not exceeding 31.8 GHz;
    b.11.d. Less than 500 [micro]s for any frequency change exceeding 
550 MHz within the synthesized frequency range exceeding 31.8 GHz but 
not exceeding 43.5 GHz; or
    b.11.e. Less than 1 ms for any frequency change exceeding 550 MHz 
within the synthesized frequency range exceeding 43.5 GHz but not 
exceeding 56 GHz;
    b.11.f. Less than 1 ms for any frequency change exceeding 2.2 GHz 
within the synthesized frequency range exceeding 56 GHz but not 
exceeding 70 GHz; or
    b.11.g. Less than 1 ms within the synthesized frequency range 
exceeding 70 GHz;
    N.B.: For general purpose ``signal analyzers'', signal generators, 
network analyzers and microwave test receivers, see 3A002.c, 3A002.d, 
3A002.e and 3A002.f, respectively.

    N.B.: For general purpose ``signal analysers,'' signal generators, 
network analysers and microwave test receivers, see 3A002.c, 3A002.d, 
3A002.e and 3A002.f, respectively.
    c. Acoustic wave devices as follows and specially designed 
components therefor:
    c.1. Surface acoustic wave and surface skimming (shallow bulk) 
acoustic wave devices, having any of the following:
    c.1.a. A carrier frequency exceeding 6 GHz;
    c.1.b. A carrier frequency exceeding 1 GHz, but not exceeding 6 GHz 
and having any of the following:
    c.1.b.1. A `frequency side-lobe rejection' exceeding 65 dB;
    c.1.b.2. A product of the maximum delay time and the bandwidth (time 
in [micro]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 [micro]s; or
    c.1.c. A carrier frequency of 1 GHz or less and having any of the 
following:
    c.1.c.1. A product of the maximum delay time and the bandwidth (time 
in [micro]s and bandwidth in MHz) of more than 100;
    c.1.c.2. A dispersive delay of more than 10 [micro]s; or
    c.1.c.3. A `frequency side-lobe rejection' exceeding 65 dB and a 
bandwidth greater than 100 MHz;
    Technical Note: `Frequency side-lobe rejection' is the maximum 
rejection value specified in data sheet.
    c.2. Bulk (volume) acoustic wave devices that permit the direct 
processing of signals at frequencies exceeding 6 GHz;

[[Page 802]]

    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;
    Note: 3A001.c does not control acoustic wave devices that are 
limited to a single band pass, low pass, high pass or notch filtering, 
or resonating function.
    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 and having 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. `Cells' as follows:
    e.1.a. `Primary cells' having an `energy density' exceeding 550 Wh/
kg at 293 K (20 [deg]C);
    e.1.b. 'Secondary cells' having an 'energy density' exceeding 300 
Wh/kg at 293 K (20 [deg]C);
    Technical Notes: 1. For the purpose of 3A001.e.1., `energy density' 
(Wh/kg) is calculated from the nominal voltage multiplied by the nominal 
capacity in ampere-hours (Ah) divided by the mass in kilograms. If the 
nominal capacity is not stated, energy density is calculated from the 
nominal voltage squared then multiplied by the discharge duration in 
hours divided by the discharge load in Ohms and the mass in kilograms.
    2. For the purpose of 3A001.e.1., a `cell' is defined as an 
electrochemical device, which has positive and negative electrodes, an 
electrolyte, and is a source of electrical energy. It is the basic 
building block of a battery.
    3. For the purpose of 3A001.e.1.a., a `primary cell' is a `cell' 
that is not designed to be charged by any other source.
    4. For the purpose of 3A001.e.1.b., a `secondary cell' is a `cell' 
that is designed to be charged by an external electrical source.
    Note: 3A001.e. does not control batteries, including single-cell 
batteries.
    e.2. High energy storage capacitors as follows:
    e.2.a. Capacitors with a repetition rate of less than 10 Hz (single 
shot capacitors) and 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) and 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 and 
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/mm\2\;
    e.4. Solar cells, cell-interconnect-coverglass (CIC) assemblies, 
solar panels, and solar arrays, which are ``space-qualified,'' having a 
minimum average efficiency exceeding 20% at an operating temperature of 
301 K (28 [deg]C) under simulated `AM0' illumination with an irradiance 
of 1,367 Watts per square meter (W/m\2\);
    Technical Note: 'AM0,' or `Air Mass Zero,' refers to the spectral 
irradiance of sunlight in the earth's outer atmosphere when the distance 
between the earth and sun is one astronomical unit (AU).
    f. Rotary input type absolute position encoders having an accuracy 
equal to or less (better) than 1.0 second of arc;
    g. Solid-state pulsed power switching thyristor devices and 
`thyristor modules', using either electrically, optically, or electron 
radiation controlled switch methods and having any of the following:
    g.1. A maximum turn-on current rate of rise (di/dt) greater than 
30,000 A/[micro]s and off-state voltage greater than 1,100 V; or
    g.2. A maximum turn-on current rate of rise (di/dt) greater than 
2,000 A/[micro]s and having all of the following:
    g.2.a. An off-state peak voltage equal to or greater than 3,000 V; 
and
    g.2.b. A peak (surge) current equal to or greater than 3,000 A;
    Note 1: 3A001.g. includes:
--Silicon Controlled Rectifiers (SCRs)
--Electrical Triggering Thyristors (ETTs)
--Light Triggering Thyristors (LTTs)
--Integrated Gate Commutated Thyristors (IGCTs)
--Gate Turn-off Thyristors (GTOs)
--MOS Controlled Thyristors (MCTs)
--Solidtrons

[[Page 803]]

    Note 2: 3A001.g. does not control thyristor devices and `thyristor 
modules' incorporated into equipment designed for civil railway or 
``civil aircraft'' applications.
    Technical Note: For the purposes of 3A001.g, a ``thyristor module'' 
contains one or more thyristor devices.
    h. Solid-state power semiconductor switches, diodes, or `modules', 
having all of the following:
    h.1. Rated for a maximum operating junction temperature greater than 
488 K (215 [deg]C);
    h.2. Repetitive peak off-state voltage (blocking voltage) exceeding 
300 V; and
    h.3. Continuous current greater than 1 A.

    Technical Note: For the purposes of 3A001.h, `modules' contain one 
or more solid-state power semiconductor switches or diodes.
    Note 1: Repetitive peak off-state voltage in 3A001.h includes drain 
to source voltage, collector to emitter voltage, repetitive peak reverse 
voltage and peak repetitive off-state blocking voltage.
    Note 2: 3A001.h. includes:

--Junction Field Effect Transistors (JFETs)
--Vertical Junction Field Effect Transistors (VJFETs)
--Metal Oxide Semiconductor Field Effect Transistors (MOSFETs)
--Double Diffused Metal Oxide Semiconductor Field Effect Transistor 
(DMOSFET)
--Insulated Gate Bipolar Transistor (IGBT)
--High Electron Mobility Transistors (HEMTs)
--Bipolar Junction Transistors (BJTs)
--Thyristors and Silicon Controlled Rectifiers (SCRs)
--Gate Turn-Off Thyristors (GTOs)
--Emitter Turn-Off Thyristors (ETOs)
--PiN Diodes
--Schottky Diodes

    Note 3: 3A001.h. does not apply to switches, diodes, or `modules' 
incorporated into equipment designed for civil automobile, civil 
railway, or ``civil aircraft'' applications.

3A002 General purpose electronic equipment and accessories 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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
LVS: $3000: 3A002.a, .e, .f, .g; $5000: 3A002.c to .d.
GBS: Yes for 3A002.a.1.
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).

    STA: License Exception STA may not be used to ship any item in 
3A002.g.1 to any of the eight destinations listed inSec. 740.20(c)(2) 
of the EAR.
List of Items Controlled
Unit: Number
Related Controls: ``Space-qualified'' atomic frequency standards defined 
in 3A002.g.1 are subject to the export licensing authority of the 
Department of State, Directorate of Defense Trade Controls (22 CFR part 
121.1, Category XV). 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;
    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 
[micro]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 and 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.

[[Page 804]]

    a.4. Equipment having a maximum digital interface transfer rate 
exceeding 175 Mbit/s and 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 Notes: 1. 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.
    2. `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 and 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. [Reserved]
    c. Radio-frequency ``signal analyzers'' as follows:
    c.1. ``Signal analyzers'' having a 3 dB resolution bandwidth (RBW) 
exceeding 10 MHz anywhere within the frequency range exceeding 31.8 GHz 
but not exceeding 37.5 GHz;
    c.2. ``Signal analyzers'' having Displayed Average Noise Level 
(DANL) less (better) than -150 dBm/Hz anywhere within the frequency 
range exceeding 43.5 GHz but not exceeding 70 GHz;
    c.3. ``Signal analysers''having a frequency exceeding 70 GHz;
    c.4. ``Dynamic signal analyzers'' having a ``real-time bandwidth'' 
exceeding 40 MHz;
    Note: 3A002.c.4 does not control those ``dynamic signal analyzers'' 
using only constant percentage bandwidth filters (also known as octave 
or fractional octave filters).
    d.1. Specified to generate pulses having all of the following, 
anywhere within the synthesized frequency range exceeding 31.8 GHz but 
not exceeding 70 GHz:
    d.1.a. 'Pulse duration' of less than 100 ns; and
    d.1.b. On/off ratio equal to or exceeding 65 dB;
    d.2. An output power exceeding 100 mW (20 dBm) anywhere within the 
synthesized frequency range exceeding 43.5 GHz but not exceeding 70 GHz;
    d.3. A ``frequency switching time'' as specified by any of the 
following:
    d.3.a. Less than 312 ps;
    d.3.b. Less than 100 [micro]s for any frequency change exceeding 1.6 
GHz within the synthesized frequency range exceeding 3.2 GHz but not 
exceeding 10.6 GHz;
    d.3.c. Less than 250 [micro]s for any frequency change exceeding 550 
MHz within the synthesized frequency range exceeding 10.6 GHz but not 
exceeding 31.8 GHz;
    d.3.d. Less than 500 [micro]s for any frequency change exceeding 550 
MHz within the synthesized frequency range exceeding 31.8 GHz but not 
exceeding 43.5 GHz;
    d.3.e. Less than 1 ms for any frequency change exceeding 550 MHz 
within the synthesized frequency range exceeding 43.5 GHz but not 
exceeding 56 GHz; or
    d.3.f. Less than 1 ms for any frequency change exceeding 2.2 GHz 
within the synthesized frequency range exceeding 56 GHz but not 
exceeding 70 GHz;
    d.4. Single sideband (SSB) phase noise, in dBc/Hz, specified as 
being all of the following:
    d.4.a. Less (better) than--(126+20 log10 F-20 
log10f) for 10 Hz 10 F-20 
log10f) for 10 kHz <=F<500 kHz anywhere within the 
synthesized frequency range exceeding 3.2 GHz but not exceeding 70 GHz; 
or
    Technical Note: In 3A002.d.4, F is the offset from the operating 
frequency in Hz and f is the operating frequency in MHz.
    d.5. A maximum synthesized frequency exceeding 70 GHz;
    Note 1: For the purpose of 3A002.d, frequency synthesized signal 
generators include arbitrary waveform and function generators.
    Note 2: 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.
    Technical Notes: 1. The maximum synthesized frequency of an 
arbitrary waveform or function generator is calculated by dividing the 
sample rate, in samples/second, by a factor of 2.5.
    2. For the purposes of 3A002.d.1.a, 'pulse duration' is defined as 
the time interval between the leading edge of the pulse achieving 90% of 
the peak and the trailing edge of the pulse achieving 10% of the peak.
    e. Network analyzers having any of the following:
    e.1. Output power exceeding 31.62 mW (15 dBm) anywhere within the 
operating frequency range exceeding 43.5 GHz but not exceeding 70 GHz; 
or
    e.2. Maximum operating frequency exceeding 70 GHz;
    f. Microwave test receivers having all of the following:
    f.1. A maximum operating frequency exceeding 70 GHz; and

[[Page 805]]

    f.2. Being capable of measuring amplitude and phase simultaneously;
    g. Atomic frequency standards being any of the following:
    g.1. ``Space-qualified'';
    g.2. Non-rubidium and having a long-term stability less (better) 
than 1x10-11/month; or
    g.3. Non-''space-qualified'' and having all of the following:
    g.3.a. Being a rubidium standard;
    g.3.b. Long-term stability less (better) than 
1x10-11/month; and
    g.3.c. Total power consumption of less than 1 Watt.

3A003 Spray cooling thermal management systems employing closed loop 
          fluid handling and reconditioning equipment in a sealed 
          enclosure where a dielectric fluid is sprayed onto electronic 
          components using specially designed spray nozzles that are 
          designed to maintain electronic components within their 
          operating temperature range, and specially designed components 
          therefore.
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: Number of systems, components in $
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

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
Related Controls: Items controlled in 3A101.a 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: 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

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               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 [micro]F, and series inductance less 
than 50 nH; or
    a.2. Voltage rating greater than 750 V, capacitance greater than 
0.25 [micro]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

[[Page 806]]

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 [micro]s, then Q is the total accelerated charge in Coulombs. 
If the accelerator beam pulse duration is greater than 1 [micro]s, then 
Q is the maximum accelerated charge in 1 [micro]s. Q equals the 
intergral of i with respect to t, over the lesser of 1 [micro]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 [micro]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

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               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) 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

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               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions

[[Page 807]]

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

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               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 [micro]s or less.

    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 [micro]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 [micro]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

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               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 and 1E001(''development'' and 
``production'') and 3E201 and 1E201 (``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, Directorate 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 [micro]s;
    b.4. Having an output greater than 100 A;
    b.5. Having a ``rise time'' of less than 10 [micro]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
------------------------------------------------------------------------


[[Page 808]]

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.

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 1A007 for electrically driven explosive 
detonators. (2) See ECCNs 3E001 (``development'' and ``production'') and 
3E201 (``use'') for technology for items controlled under this entry. 
(3) High explosives and related equipment for military use 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
ECCN Controls: This entry does not control detonators using only primary 
explosives, such as lead azide.
Items:
    a. [Reserved]
    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 [micro]s.
    Technical Note: 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

[[Page 809]]

    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

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               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: 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: See ECCN 0A982 for other types of restraint devices.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.
    Note to ECCN 3A981. In this ECCN, electronic monitoring restraint 
devices are devices used to record or report the location of confined 
persons for law enforcement or penal reasons. The term does not include 
devices that confine memory impaired patents to appropriate medical 
facilities.

3A982 Microwave or millimeter wave components that operate at 
          frequencies below those controlled by 3A001 as follows (See 
          List of Items Controlled).
License Requirements
Reasons for Control: RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to entire entry.............  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

[[Page 810]]

Unit: $ value
Related Controls: (1) See ECCN 3A001.b.2 for certain microwave 
``monolithic integrated circuits'' (MMIC) power amplifiers other than 
those controlled by this entry. (2) See ECCN 3A001.b.3 for discrete 
microwave transistors other than those controlled by this entry. (3) See 
ECCN 3A001.h for high electron mobility transistors that are solid state 
semiconductor switches, diodes or modules rather than discrete microwave 
transistors.
Related Definitions: N/A
Items:
    a. Packaged high electron mobility transistors (HEMTs) with physical 
dimensions less than 43 mm per side, rated for operation at frequencies 
from 2.7 GHz up to and including 3.2 GHz and having any of the 
following:
    a.1. An average output power equal to or greater than 48 W (46.8 
dBm); or
    a.2. A pulsed output power equal to or greater than 240 W (53.8 dBm) 
and a duty cycle of 20 percent or more.
    b. Packaged microwave ``monolithic integrated circuits'' (MMIC) 
power amplifiers with physical dimensions less than 43mm per side, rated 
for operation at frequencies from 2.7 GHz up to and including 3.2 GHz 
and having either of the following:
    b.1. An average output power equal to or greater than 15W (41.7 
dBm); or
    b.2. A pulsed output power equal to or greater than 75 W (48.75 dBm) 
and a duty cycle of 20 percent or more.

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: 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 performance speed of 5 GFLOPS or more and an arithmetic logic 
unit with an access width of 32 bit or more;
    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 an 
output rate greater than 200 million words per second;
    c.2. A resolution of 12 bit with an output rate greater than 105 
million words per second;
    c.3. A resolution of more than 12 bit but equal to or less than 14 
bit withan output rate greater than 10 million words per second; or
    c.4. A resolution of more than 14 bit with an output rate greater 
than 2.5 million words per second.
    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

[[Page 811]]

    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. Cells as follows:
    j.1. Primary cells having an energy density of 550 Wh/kg or less at 
293 K (20 [deg]C);
    j.2. Secondary cells having an energy density of 300 Wh/kg or less 
at 293 K (20 [deg]C).

    Note: 3A991.j. does not control batteries, including single cell 
batteries.
    Technical Notes: 1. For the purpose of 3A991.j energy density (Wh/
kg) is calculated from the nominal voltage multiplied by the nominal 
capacity in ampere-hours divided by the mass in kilograms. If the 
nominal capacity is not stated, energy density is calculated from the 
nominal voltage squared then multiplied by the discharge duration in 
hours divided by the discharge load in Ohms and the mass in kilograms.
    2. For the purpose of 3A991.j, a `cell' is defined as an 
electrochemical device, which has positive and negative electrodes, and 
electrolyte, and is a source of electrical energy. It is the basic 
building block of a battery.
    3. For the purpose of 3A991.j.1, a `primary cell' is a `cell' that 
is not designed to be charged by any other source.
    4. For the purpose of 3A991.j.2., a `secondary cell' is a `cell' 
that is designed to be charged by an external electrical source.

    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/mm\2\.
    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:
    l.1. Resonant operating frequencies exceeding 1 MHz;
    l.2. A stored energy density of 1 MJ/M\3\ or more; and
    l.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).
    o. Solar cells, cell-interconnect-coverglass (CIC) assemblies, solar 
panels, and solar arrays, which are ``space qualified'' and not 
controlled by 3A001.e.4.

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: 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. 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

[[Page 812]]

determine AT licensing requirements for this entry. SeeSec. 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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
LVS: $500
GBS: Yes, except 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.3, or .f), 
and .f (lithography equipment).
CIV: Yes for equipment controlled by 3B001.a.1 and a.2.
List of Items Controlled
Unit: Number.
Related Controls: See also 3B991.
Related Definitions: N/A
Items:
    a. Equipment designed for epitaxial growth as follows:
    a.1. Equipment capable of producing a layer of any material other 
than silicon with a thickness uniform to less than 2.5% across a distance of 75 mm or more;

    Note: 3B001.a.1 includes atomic layer epitaxy (ALE) equipment.

    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. Equipment designed for ion implantation and 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. A beam energy of 65 keV or more and a beam current of 45 mA or 
more for high energy oxygen implant into a heated semiconductor material 
``substrate'';
    c. Anisotropic plasma dry etching equipment having all of the 
following:
    c.1. Designed or optimized to produce critical dimensions of 65 nm 
or less; and
    c.2. Within-wafer non-uniformity equal to or less than 10% 3[sigma] 
measured with an edge exclusion of 2 mm or less;
    d. [Reserved]
    e. 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 
functionally different 'semiconductor process tools' controlled by 
3B001.a, 3B001.b, or 3B001.c are designed to be connected; and
    e.2. Designed to form an integrated system in a vacuum environment 
for [min]sequential multiple wafer processing[min];
    Note: 3B001.e does not control automatic robotic wafer handling 
systems specially designed for parallel wafer processing.
    Technical Notes: 1. For the purpose of 3B001.e, `semiconductor 
process tools' refers to modular tools that provide physical processes 
for semiconductor production that are functionally different, such as 
deposition, etch, implant or thermal processing.
    2. For the purpose of 3B001.e, `sequential multiple wafer 
processing' means the capability to process each wafer in different 
`semiconductor process tools', such as by transferring each wafer from 
one tool to a second tool and on to a third tool with the

[[Page 813]]

automatic loading multi-chamber central wafer handling systems.
    f. 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 and having any of the following:
    f.1.a. A light source wavelength shorter than 245 nm; or
    f.1.b. Capable of producing a pattern with a ``Minimum Resolvable 
Feature size'' (MRF) of 95 nm or less;
    Technical Note: The `Minimum Resolvable Feature size' (MRF) is 
calculated by the following formula:
[GRAPHIC] [TIFF OMITTED] TR20MY11.062

where the K factor = 0.35

    f.2 Imprint lithography equipment capable of production features of 
95 nm or less;
    Note: 3B001.f.2 includes:
--Micro contact printing tools
--Hot embossing tools
--Nano-imprint lithography tools
--Step and flash imprint lithography (S-FIL) tools

    f.3. Equipment specially designed for mask making or semiconductor 
device processing using direct writing methods, having all of the 
following:
    f.3.a. Using deflected focused electron beam, ion beam or ``laser'' 
beam; and
    f.3.b. Having any of the following:
    f.3.b.1. A spot size smaller than 0.2 [micro]m;
    f.3.b.2. Being capable of producing a pattern with a feature size of 
less than 1 [micro]m; or
    f.3.b.3. An overlay accuracy of better than 0.20 [micro]m (3 sigma);
    g. Masks and reticles, designed for integrated circuits controlled 
by 3A001;
    h. Multi-layer masks with a phase shift layer;
    Note: 3B001.h. does not control multi-layer masks with a phase shift 
layer designed for the fabrication of memory devices not controlled by 
3A001.
    i. Imprint lithography templates designed for integrated circuits by 
3A001.

3B002 ``Test equipment specially designed for testing finished or 
          unfinished semiconductor devices 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 Exceptions
LVS: $500
GBS: Yes
CIV: N/A
List of Items Controlled
Unit: Number.
Related Controls: See also 3A999.a and 3B992.
Related Definitions: N/A
Items: a. For testing S-parameters of transistor devices at frequencies 
exceeding 31.8 GHz;
    b. [Reserved]
    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, and components and accessories in $ value
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.)

[[Page 814]]

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, 
3C004, or 3C005 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 2.5 x 10\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 silicon layer with a thickness 
uniform to less than 2.5% across a distance of 200 
mm or more;
    b.1.d.2. Capable of producing a layer of any material other than 
silicon with a thickness uniformity across the wafer of equal to or 
better than 3.5%; or
    b.1.d.3. Rotation of individual wafers during processing;
    b.1.e. Molecular beam epitaxial growth equipment;
    b.1.f. Magnetically enhanced `sputtering' equipment with specially 
designed integral load locks capable of transferring wafers in an 
isolated vacuum environment;
    b.1.g. Equipment specially designed for ion implantation, ion-
enhanced or photo-enhanced diffusion, having any of the following 
characteristics:
    b.1.g.1. Patterning capability;
    b.1.g.2. 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 
10\5\ 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;


[[Page 815]]


    Note: 3B991.b.1.i does not control low pressure ``chemical vapor 
deposition'' (LPCVD) systems or reactive ``sputtering'' equipment.

    b.1.j. Electron beam systems specially designed or modified for mask 
making or semiconductor device processing having any of the following 
characteristics:
    b.1.j.1. Electrostatic beam deflection;
    b.1.j.2. Shaped, non-Gaussian beam profile;
    b.1.j.3. Digital-to-analog conversion rate exceeding 3 MHz;
    b.1.j.4. Digital-to-analog conversion accuracy exceeding 12 bit; or
    b.1.j.5. Target-to-beam position feedback control precision of 1 
micrometer or finer;

    Note: 3B991.b.1.j does not control electron beam deposition systems 
or general purpose scanning electron microscopes.

    b.1.k. Surface finishing equipment for the processing of 
semiconductor wafers as follows:
    b.1.k.1. Specially designed equipment for backside processing of 
wafers thinner than 100 micrometer and the subsequent separation 
thereof; or
    b.1.k.2. Specially designed equipment for achieving a surface 
roughness of the active surface of a processed wafer with a two-sigma 
value of 2 micrometer or less, total indicator reading (TIR);

    Note: 3B991.b.1.k does not control single-side lapping and polishing 
equipment for wafer surface finishing.

    b.1.l. Interconnection equipment which includes common single or 
multiple vacuum chambers specially designed to permit the integration of 
any equipment controlled by 3B991 into a complete system;
    b.1.m. ``Stored program controlled'' equipment using ``lasers'' for 
the repair or trimming of ``monolithic integrated circuits'' with either 
of the following characteristics:
    b.1.m.1. Positioning accuracy less than 1 
micrometer; or
    b.1.m.2. Spot size (kerf width) less than 3 micrometer.
    b.2. Masks, mask ``substrates'', mask-making equipment and image 
transfer equipment for the manufacture of devices and components as 
specified in the heading of 3B991, as follows:

    Note: The term ``masks'' refers to those used in electron beam 
lithography, X-ray lithography, and ultraviolet lithography, as well as 
the usual ultraviolet and visible photo-lithography.

    b.2.a. Finished masks, reticles and designs therefor, except:
    b.2.a.1. Finished masks or reticles for the production of 
unembargoed integrated circuits; or
    b.2.a.2. Masks or reticles, having both of the following 
characteristics:
    b.2.a.2.a. Their design is based on geometries of 2.5 micrometer or 
more; and
    b.2.a.2.b. The design does not include special features to alter the 
intended use by means of production equipment or ``software''
    b.2.b. Mask ``substrates'' as follows:
    b.2.b.1. Hard surface (e.g., chromium, silicon, molybdenum) coated 
``substrates'' (e.g., glass, quartz, sapphire) for the preparation of 
masks having dimensions exceeding 125 mm x 125 mm; or
    b.2.b.2. ``Substrates'' specially designed for X-ray masks;
    b.2.c. Equipment, other than general purpose computers, specially 
designed for computer aided design (CAD) of semiconductor devices or 
integrated circuits;
    b.2.d. Equipment or machines, as follows, for mask or reticle 
fabrication:
    b.2.d.1. Photo-optical step and repeat cameras capable of producing 
arrays larger than 100 mm x 100 mm, or capable of producing a single 
exposure larger than 6 mm x 6 mm in the image (i.e., focal) plane, or 
capable of producing line widths of less than 2.5 micrometer in the 
photoresist on the ``substrate';
    b.2.d.2. Mask or reticle fabrication equipment using ion or 
``laser'' beam lithography capable of producing line widths of less than 
2.5 micrometer; or
    b.2.d.3. Equipment or holders for altering masks or reticles or 
adding pellicles to remove defects;

    Note: 3B991.b.2.d.1 and b.2.d.2 do not control mask fabrication 
equipment using photo-optical methods which was either commercially 
available before the 1st January, 1980, or has a performance no better 
than such equipment.

    b.2.e. ``Stored program controlled'' equipment for the inspection of 
masks, reticles or pellicles with:
    b.2.e.1. A resolution of 0.25 micrometer or finer; and
    b.2.e.2. A precision of 0.75 micrometer or finer over a distance in 
one or two coordinates of 63.5 mm or more;

    Note: 3B991.b.2.e does not control general purpose scanning electron 
microscopes except when specially designed and instrumented for 
automatic pattern inspection.

    b.2.f. Align and expose equipment for wafer production using photo-
optical or X-ray methods, e.g., lithography equipment, 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;

[[Page 816]]

    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: See also 3A992.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 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.

    Notes: 3B992.b.4.b does not control test equipment specially 
designed for testing:

[[Page 817]]

    1. memories;
    2. ``Assemblies'' or a class of ``electronic assemblies'' for home 
and entertainment applications; and
    3. 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''.
    Technical Note: For purposes of 3B992.b.4.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.

    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 m\3\ 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 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: N/A
Items:
    a. Silicon (Si);
    b. Germanium (Ge);
    c. Silicon Carbide (SiC); or
    d. ``III/V compounds'' of gallium or indium.

    Note: 3C001.d does not apply to a ``substrate'' having one or more 
P-type epitaxial layers of GaN, InGaN, AlGaN, InAlN, InAlGaN, GaP, 
InGaP, AlInP or InGaAlP, independent of the sequence of the elements, 
except if the P-type epitaxial layer is between N-type layers.
3C002 Resist materials as follows (see List of Items Controlled) and 
          ``substrates'' coated with the following resists.
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 .e.
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 .e.
List of Items Controlled
Unit: $ value
Related Controls: N/A

[[Page 818]]

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 245 nm;
    b. All resists designed for use with electron beams or ion beams, 
with a sensitivity of 0.01 [micro]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.
    e. All resists designed or optimized for use with imprint 
lithography equipment specified by 3B001.f.2. that use either a thermal 
or photo-curable process.

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 aluminum, 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.

3C005 Silicon carbide (SiC), gallium nitride (GaN), aluminum nitride 
          (AlN) or aluminum gallium nitride (AlGaN) ``substrates'', or 
          ingots, boules, or other preforms of those materials, having 
          resistivities greater than 10,000 ohm-cm at 20 [deg]C.
License Requirements
Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
LVS: $3000
GBS: Yes
CIV: Yes
List of Items Controlled
Unit: $ value
Related Controls: See ECCN 3E001 for related development and production 
technology, and ECCN 3B991.b.1.b for related production equipment.
Related Definition: N/A
Items:
    The list of items controlled is contained in the ECCN heading.

3C006 ``Substrates'' specified in 3C005 with at least one epitaxial 
          layer of silicon carbide, gallium nitride, aluminum nitride or 
          aluminum gallium nitride.
License Requirements
Reason for Control: NS, AT

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

License Exceptions
LVS: $3000
GBS: Yes
CIV: Yes
List of Items Controlled
Unit: $ value
Related Controls: See ECCN 3D001 for related ``development'' or 
``production'' ``software'', ECCN 3E001 for related ``development'' and 
``production'' ``technology'', and ECCN 3B991.b.1.b for related 
``production'' equipment.
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN heading.


[[Page 819]]


3C992 Positive resists designed for semiconductor lithography specially 
          adjusted (optimized) for use at wavelengths between 370 and 
          245 nm.
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: SeeSec. 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.
STA: License Exception STA may not be used to ship or transmit 
``software'' specially designed for the ``development'' or 
``production'' of equipment specified by 3A002.g.1 or 3B001.a.2 to any 
of the eight destinations listed inSec. 740.20(c)(2) of the EAR.
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, Directorate 
of Defense Trade Controls (22 CFR part 121): (1.) When operating at 
frequencies higher than 31.8 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; and traveling wave tube 
amplifiers (TWTA) defined in 3A001.b.8; (2.) ``Space qualified'' solar 
cells, coverglass-interconnect-cells or covered-interconnect-cells (CIC) 
assemblies, solar arrays, and/or solar panels, with a minimum average 
efficiency of 31% or greater at an operating temperature of 301 [deg]K 
(28 [deg]C) under simulated `AM0' illumination with an irradiance of 
1,367 Watts per square meter (W/m\2\), and associated solar 
concentrators, power conditioners, and/or controllers, bearing and power 
transfer assemblies, and deployment hardware/systems. (3.) ``Space 
qualified'' atomic frequency standards defined in 3A002.g.2. See also 
3D101.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

3D002 `` Software'' specially designed for the ``use'' of equipment 
          controlled by 3B001.a to .f, or 3B002.
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: Also see 3D991.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

3D003 `Physics-based' simulation ``software'' specially designed for the 
          ``development'' of lithographic, etching or deposition 
          processes for translating masking patterns into specific 
          topographical patterns in conductors, dielectrics or 
          semiconductor materials..
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: (1) Libraries, design attributes or associated data 
for the design of semiconductor devices or integrated circuits are 
considered as ``technology''. (2) `Physics-based' in 3D003 means using 
computations to determine a sequence of physical cause and effect events 
based on physical properties (e.g., temperature, pressure,

[[Page 820]]

diffusion constants and semiconductor materials properties).
Items: The list of items controlled is contained in the ECCN heading.

3D004 ``Software'' specially designed for the ``development'' of 
          equipment controlled by 3A003.
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.

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.

3D982 ``Software'' ``specially designed'' for the ``development'' or 
          ``production'' of microwave or millimeter wave components 
          classified under ECCN 3A982.
License Requirements
Reasons for Control: RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to entire entry.............  RS Column 1
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: N/A
List of Items Controlled
Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is 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; or ``software'' specially 
          designed for the ``use'' of equipment controlled by 3B001.g 
          and .h.
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 3A992, or 
          3A999), 3B (except 3B991 or 3B992) or 3C (except 3C992).
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, 3A003,
 3B001, 3B002, or 3C001 to 3C006.
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.

[[Page 821]]

 
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Note: SeeSec. 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: (a) Traveling Wave Tube 
Amplifiers described in 3A001.b.8, having operating frequencies 
exceeding 19 Ghz; and (b) solar cells, coverglass-interconnect-cells or 
covered-interconnect-cells (CIC) assemblies, solar arrays and/or solar 
panels, which are ``space qualified,'' having a minimum average 
efficiency exceeding 20% but less than 31% described in 3A001.e.4.
STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment specified by ECCNs 
3A002.g.1 or 3B001.a.2 to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
List of Items Controlled
Unit: N/A
Related Controls: (1) See also 3E101 and 3E201. (2)''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, Directorate of Defense 
Trade Controls (22 CFR part 121): (a) When operating at frequencies 
higher than 31.8 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; or traveling wave tube amplifiers 
(TWTA) defined in 3A001.b.8; (b) ``Space qualified'' solar cells, 
coverglass-interconnect-cells or covered-interconnect-cells (CIC) 
assemblies, solar arrays, and/or solar panels, with a minimum average 
efficiency of 31% or greater at an operating temperature of 301 [deg]K 
(28 [deg]C) under simulated `AM0' illumination with an irradiance of 
1,367 Watts per square meter (W/m\2\), and associated solar 
concentrators, power conditioners, and/or controllers, bearing and power 
transfer assemblies, and deployment hardware/systems. and (c) ``Space 
qualified'' atomic frequency standards defined in 3A002.g.2.
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN heading.

    Note 1: 3E001 does not control ``technology'' for the ``production'' 
of equipment or components controlled by 3A003.
    Note 2: 3E001 does not control ``technology'' for the 
``development'' or ``production'' of integrated circuits controlled by 
3A001.a.3 to a.12, having all of the following:
    (a) Using ``technology'' at or above 0.130 [micro]m; and
    (b) Incorporating multi-layer structures with three or fewer metal 
layers.

3E002 ``Technology'' according to the General Technology Note other than 
          that controlled in 3E001 for the ``development'' or 
          ``production'' of a ``microprocessor microcircuit'', ``micro-
          computer microcircuit'' and microcontroller microcircuit core, 
          having an arithmetic logic unit with an access width of 32 
          bits or more and any of the following features or 
          characteristics (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: Yes, for deemed exports, as described inSec. 734.2(b)(2)(ii) of 
the EAR, of ``technology'' for the ``development'' or ``production'' of 
general purpose microprocessor cores with a vector processor unit with 
operand length of 64-bit or less, 64-bit floating operations not 
exceeding 50 GFLOPS, or 16-bit or more floating-point operations not 
exceeding 50 GMACS (billions of 16-bit fixed-point multiply-accumulate 
operations per second). Deemed exports under License Exception CIV are 
subject to a Foreign National Review (FNR) requirement, seeSec. 740.5 
of the EAR for more information about the FNR. License Exception CIV 
does not apply to ECCN 3E002 technology also required for the 
development or production of items controlled under ECCNs beginning with 
3A, 3B, or 3C, or to ECCN 3E002 technology also controlled under ECCN 
3E003.
TSR: Yes.
List of Items Controlled
Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items:
    a. A `vector processor unit' designed to perform more than two 
calculations on floating-point vectors (one dimensional arrays of 32-bit 
or larger numbers) simultaneously;

    Technical Note: A `vector processor unit' is a processor element 
with built-in instructions that perform multiple calculations on 
floating-point vectors (one-dimensional arrays of 32-bit or larger 
numbers) simultaneously, having at least one vector arithmetic logic 
unit.

    b. Designed to perform more than two 64-bit or larger floating-point 
operation results per cycle; or
    c. Designed to perform more than four 16-bit fixed-point multiply-
accumulate results

[[Page 822]]

per cycle (e.g., digital manipulation of analog information that has 
been previously converted into digital form, also known as digital 
``signal processing'').

    Note: 3E002.c does not control ``technology'' for multimedia 
extensions.
    Notes: 1. 3E002 does not control ``technology'' for the 
``development'' or ``production'' of microprocessor cores, having all of 
the following:
    a. Using ``technology'' at or above 0.130 [micro]m; and
    b. Incorporating multi-layer structures with five or fewer metal 
layers.
    2. 3E002 includes ``technology'' for digital signal processors and 
digital array processors.

3E003 Other ``technology'' for the ``development'' or ``production'' 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, 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 31.8 GHz or higher, described in 3E003.g, is under the 
export license authority of the Department of State, Directorate 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:
    a. Vacuum microelectronic devices;
    b. Hetero-structure semiconductor electronic devices such as high 
electron mobility transistors (HEMT), hetero-bipolar transistors (HBT), 
quantum well and super lattice devices;
    Note: 3E003.b does not control ``technology'' for high electron 
mobility transistors (HEMT) operating at frequencies lower than 31.8 GHz 
and hetero-junction bipolar transistors (HBT) operating at frequencies 
lower than 31.8 GHz.
    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 31.8 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.


[[Page 823]]


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.

3E982 ``Technology'' ``required'' for the ``development'' or 
          ``production'' of microwave or millimeter wave components 
          classified under ECCN 3A982.
License Requirements
Reasons for Control: RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to entire entry.............  RS Column 1
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: N/A
List of Items Controlled
Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is 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 and test equipment controlled by 3B991 or 3B992, 
          or materials controlled by 3C992.
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, having any of the 
          following (see List of Items Controlled), and ``electronic 
          assemblies'' and specially designed components therefor.
License Requirements
Reason for Control: NS, MT, AT, NP

------------------------------------------------------------------------
               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.
------------------------------------------------------------------------


[[Page 824]]

NP applies, unless a License Exception is available. SeeSec. 742.3(b) 
of the EAR for information on applicable licensing review policies.
    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions for 4A001.a.2.
License Exceptions
LVS: $5000 for 4A001.a; N/A for MT.
GBS: N/A
CIV: N/A
STA: License Exception STA may not be used to ship any commodity in 
4A001.a.2 to any of the eight destinations listed inSec. 740.20(c)(2) 
of the EAR.
List of Items Controlled
Unit: Computers and related equipment in number; ``electronic 
assemblies'' and components in $ value
Related Controls: See also 4A101 and 4A994. See Category 5--Part 2 for 
electronic computers and related equipment performing or incorporating 
``information security'' functions as the primary function. Equipment 
designed or rated for transient ionizing radiation is 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: For the purposes of integrated circuits in 
4A001.a.2, 5 x10\3\ Gy(Si) = 5 x 10\5\ Rads (Si); 5 x 10\6\ Gy (Si)/s = 
5 x 10\8\ Rads (Si)/s.
Items:
    a. Specially designed to have any of the following:
    a.1. Rated for operation at an ambient temperature below 228 K (-45 
[deg]C) or above 358 K (85 [deg]C); or
    Note: 4A001.a.1 does not apply to computers specially designed for 
civil automobile, railway train or ``civil aircraft'' applications.
    a.2. Radiation hardened to exceed any of the following 
specifications:
    a.2.a. A total dose of 5x10\3\ Gy (Si);
    a.2.b. A dose rate upset of 5x10\6\ Gy (Si)/s; or
    a.2.c. Single Event Upset of 1x10- Error/bit/day;
    Note: 4A001.a.2 does not apply to computers specially designed for 
``civil aircraft'' applications.
    b. [Reserved]

4A003 ``Digital computers'', ``electronic assemblies'', and related 
          equipment therefor, as follows (see List of Items Controlled) 
          and specially designed components therefor.
License Requirements
Reason for Control: NS, CC, AT, NP.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to 4A003.b and .c...........  NS Column 1.
NS applies to 4A003.e and .g...........  NS Column 2.
CC applies to ``digital computers'' for  CC Column 1.
 computerized finger-print equipment.
AT applies to entire entry (refer to     AT Column 1.
 4A994 for controls on ``digital
 computers'' with a APP 
 0.0128 but <=3.0 WT).
------------------------------------------------------------------------

NP applies, unless a License Exception is available. SeeSec. 742.3(b) 
of the EAR for information on applicable licensing review policies.

    Note 1: For all destinations, except those countries in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR, no license is 
required (NLR) for computers with an ``Adjusted Peak Performance'' 
(``APP'') not exceeding 3.0 Weighted TeraFLOPS (WT) and for ``electronic 
assemblies'' described in 4A003.c that are not capable of exceeding an 
``Adjusted Peak Performance'' (``APP'') exceeding 3.0 Weighted TeraFLOPS 
(WT) in aggregation, except certain transfers as set forth inSec. 
746.3 (Iraq).
    Note 2: Special Post Shipment Verification reporting and 
recordkeeping requirements for exports of computers to destinations in 
Computer Tier 3 may be found inSec. 743.2 of the EAR.

License Exceptions
LVS: $5000; N/A for 4A003.b and .c.
GBS: Yes, for 4A003.e, and .g and specially designed components 
therefor, exported separately or as part of a system.
APP: Yes, for computers controlled by 4A003.b, and ``electronic 
assemblies'' controlled by 4A003.c, to the exclusion of other technical 
parameters, with the exception of 4A003.e (equipment performing analog-
to-digital conversions exceeding the limits of 3A001.a.5.a). SeeSec. 
740.7 of the EAR.
CIV: Yes, for 4A003.e, and .g.
List of Items Controlled
Unit: Computers and related equipment in number; ``electronic 
assemblies'' and components in $ value
Related Controls: See also 4A994 and 4A980
Related Definitions: N/A
Items:
    Note 1: 4A003 includes the following:

--`Vector processors' (as defined in Note 7 of the ``Technical Note on 
``Adjusted Peak Performance'' (``APP'')'');
--Array processors;
--Digital signal processors;
--Logic processors;
--Equipment designed for ``image enhancement'';
--Equipment designed for ``signal processing''.

    Note 2: The control status of the ``digital computers'' and related 
equipment described in 4A003 is determined by the control status of 
other equipment or systems provided:

[[Page 825]]

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. [Reserved]
    b. ``Digital computers'' having an ``Adjusted Peak Performance'' 
(``APP'') exceeding 3.0 weighted TeraFLOPS (WT);
    c. The ``technology'' for the ``digital computers'' and related 
equipment is determined by 4E.

    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.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 for aggregating the performance of 
``digital computers'' by providing external interconnections which allow 
communications at unidirectonal data rates exceeding 2.0 Gbyte/s per 
link.
    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: Computers and related equipment in number; ``electronic 
assemblies'' and components 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
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'.
    Note: `Radiation hardened' means that the component or equipment is 
designed or rated to withstand radiation levels which meet or exceed a 
total irradiation dose of 5 x 10\5\ rads (Si).

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, Directorate 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

[[Page 826]]

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.
    Note: 4A980 does not control equipment limited to one finger and 
designed for user authentication or access control.

4A994 Computers, ``electronic assemblies'', and related equipment not 
          controlled by 4A001, or 4A003, and specially designed 
          components therefor.
License Requirements
Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N /A
Items:
    Note 1: The control status of the ``digital computers'' and related 
equipment described in 4A994 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. 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'', including equipment of ``signal 
processing'' or image enhancement'', having an ``Adjusted Peak 
Performance'' (``APP'') equal to or greater than 0.0128 Weighted 
TeraFLOPS (WT);
    c. ``Electronic assemblies'' that are specially designed or modified 
to enhance performance by aggregation of processors, as follows:
    c.1. Designed to be capable of aggregation in configurations of 16 
or more processors;
    c.2. [Reserved];
    Note 1: 4A994.c applies only to ``electronic assemblies'' and 
programmable interconnections with a ``APP'' 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.k.
    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. [Reserved];
    e. [Reserved];
    f. Equipment for ``signal processing'' or ``image enhancement'' 
having an ``Adjusted Peak Performance'' (``APP'') equal to or greater 
than [0.0128] Weighted TeraFLOPS WT];
    g. [Reserved];
    h. [Reserved];
    i. Equipment containing ``terminal interface equipment'' exceeding 
the limits in 5A991;
    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''.
    k. ``Hybrid computers'' and ``electronic assemblies'' and specially 
designed components therefor containing analog-to-digital converters 
having all of the following characteristics:
    k.1. 32 channels or more; and,
    k.2. A resolution of 14 bit (plus sign bit) or more with a 
conversion rate of 200,000 conversions/s or more.

         B. Test, Inspection and Production Equipment [Reserved]

                         C. Materials [Reserved]

                               D. Software

    Note: The control status of ``software'' for equipment described in 
other Categories is dealt with in the appropriate Category.

4D001 ``Software'' as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, CC, AT, NP.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.

[[Page 827]]

 
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. SeeSec. 
742.3(b) of the EAR for information on applicable licensing review 
policies.
License Exceptions
CIV: N/A
TSR: Yes, except for ``software'' for the ``development'' or 
``production'' of commodities with an ``Adjusted Peak Performance'' 
(``APP'') exceeding 0.5 WT.
APP: Yes to specific countries (seeSec. 740.7 of the EAR for 
eligibility criteria).
STA: License Exception STA may not be used to ship or transmit 
``software'' specially designed for the ``development'' or 
``production'' of equipment specified by ECCN 4A001.a.2 or for the 
``development'' or ``production'' of ``digital computers'' having an 
`Adjusted Peak Performance' (`APP') exceeding 0.5 Weighted TeraFLOPS 
(WT) to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
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 4D001.a, specially 
designed or modified for the ``development'' or ``production'' of 
equipment as follows:
    b.1. ``Digital computers'' having an ``Adjusted Peak Performance'' 
(``APP'') exceeding 0.25 Weighted TeraFLOPS (WT);
    b.2. ``Electronic assemblies'' specially designed or modified for 
enhancing performance by aggregation of processors so that the ``APP'' 
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

------------------------------------------------------------------------
               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. SeeSec. 742.3(b) 
of the EAR for information on applicable licensing review policies.
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.

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
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'' that are specially designed for 
          real time processing equipment (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: ``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; or

[[Page 828]]

    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 and 4A994.
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'' as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, MT, CC, AT, NP.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.
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. SeeSec. 
742.3(b) of the EAR for information on applicable licensing review 
policies.
    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: Yes, except for ``technology'' for the ``development'' or 
``production'' of commodities with an ``Adjusted Peak Performance'' 
(``APP'') exceeding 0.5 WT.
APP: Yes to specific countries (seeSec. 740.7 of the EAR for 
eligibility criteria).
STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of any of the following equipment or 
``software'': a. Equipment specified by ECCN 4A001.a.2; b. ``Digital 
computers'' having an `Adjusted Peak Performance' (`APP') exceeding 0.5 
Weighted TeraFLOPS (WT); or c. ``software'' specified in the License 
Exception STA paragraph found in the License Exception section of ECCN 
4D001 to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
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 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 
equipment as follows:
    b.1. ``Digital computers'' having an ``Adjusted Peak Performance'' 
(``APP'') exceeding 0.25 Weighted TeraFLOPS (WT);
    b.2. ``Electronic assemblies'' specially designed or modified for 
enhancing performance by aggregation of processors so that the ``APP'' 
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, 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: N/A
Related Definitions: N/A

[[Page 829]]

Items: The list of items controlled is contained in the ECCN heading.

4E993 `` Technology'' for the ``development'' or ``production'' of 
          equipment designed for ``multi-data-stream processing.''
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.

        Technical Note on ``Adjusted Peak Performance'' (``APP'')

    ``APP'' is an adjusted peak rate at which ``digital computers'' 
perform 64-bit or larger floating point additions and multiplications.

                Abbreviations used in this Technical Note

n number of processors in the ``digital computer''
I processor number (i,....n)
ti processor cycle time (ti = 1/Fi)
Fi processor frequency
Ri peak floating point calculating rate
Wi architecture adjustment factor

    ``APP'' is expressed in Weighted TeraFLOPS (WT) in units of 10\12\ 
adjusted floating point operations per second.

                  Outline of ``APP'' Calculation Method

    1. For each processor i, determine the peak number of 64-bit or 
larger floating-point operations, FPOi, performed per cycle for each 
processor in the ``digital computer''.
    Note: In determining FPO, include only 64-bit or larger floating 
point additions and/or multiplications. All floating point operations 
must be expressed in operations per processor cycle; operations 
requiring multiple cycles may be expressed in fractional results per 
cycle. For processors not capable of performing calculations on 
floating-point operands of 64-bits or more the effective calculating 
rate R is zero.
    2. Calculate the floating point rate R for each processor.

Ri = FPOi/ti.
3. Calculate ``APP'' as
``APP'' = W1 x R1 + W2 x R2 
+ * * * + Wn x Rn.

    4. For `vector processors', Wi = 0.9. For non-`vector 
processors', Wi = 0.3.
    Note 1: For processors that perform compound operations in a cycle, 
such as an addition and multiplication, each operation is counted.
    Note 2: For a pipelined processor the effective calculating rate R 
is the faster of the pipelined rate, once the pipeline is full, or the 
non-pipelined rate.
    Note 3: The calculating rate R of each contributing processor is to 
be calculated at its maximum value theoretically possible before the 
``APP'' of the combination is derived. 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: Do not include processors that are limited to input/output 
and peripheral functions (e.g., disk drive, communication and video 
display) when calculating ``APP''.
    Note 5: ``APP'' values are not to be calculated for processor 
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 6: ``APP'' values must be calculated for: (1) Processor 
combinations containing processors specially designed to enhance 
performance by aggregation, operating simultaneously and sharing memory; 
or (2) Multiple memory/processor combinations operating simultaneously 
utilizing specially designed hardware.
    Note 7: A `vector processor' is defined as a processor with built-in 
instructions that perform multiple calculations on floating-point 
vectors (one-dimensional arrays of 64-bit or larger numbers) 
simultaneously, having at least 2 vector functional units and at least 8 
vector registers of at least 64 elements each.

       Category 5--Telecommunications and ``Information Security''

                       Part 1--Telecommunications

    Notes: 1. The control status of components, test and ``production'' 
equipment, and ``software'' therefor which are specially designed for 
telecommunications equipment or systems is determined in Category 5, 
Part 1.
    N.B.1.: For ``lasers'' specially designed for telecommunications 
equipment or systems, see ECCN 6A005.
    N.B.2. See also Category 5, Part 2 for equipment, components, and 
``software'', performing or incorporating ``information security'' 
functions.
     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,

[[Page 830]]

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, components and accessories, 
          as follows (see List of Items Controlled).
License Requirements
    Reason for Control: NS, AT

------------------------------------------------------------------------
                Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to 5A001.a, .e, .b.5, and .h..  NS Column 1.
NS applies to 5A001.b (except .b.5), .c,   NS Column 2.
 .d, .f, .g, and .i.
SL applies to 5A001.i....................  A license is required for all
                                            destinations, as specified
                                            inSec.  742.13 of the EAR.
                                            Accordingly, a column
                                            specific to this control
                                            does not appear on the
                                            Commerce Country Chart
                                            (Supplement No. 1 to Part
                                            738 of the EAR).
                                           Note to SL paragraph: This
                                            licensing requirement does
                                            not supersede, nor does it
                                            implement, construe or limit
                                            the scope of any criminal
                                            statute, including, but not
                                            limited to the Omnibus Safe
                                            Streets Act of 1968, as
                                            amended.
AT applies to entire entry...............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions. SeeSec. 740.2(a)(3) 
of the EAR for restrictions on the use of License Exceptions for 
5A001.i.
License Exceptions
LVS: N/A for 5A001.a, b.5, e, and h; $5000 for 5A001b.1, b.2, b.3, b.6, 
d, f, and g; $3000 for 5A001.c.
GBS: Yes, except 5A001.a, b.5, e, and h.
CIV: Yes, except 5A001.a, b.3, b.5, e, and h.
STA: License Exception STA may not be used to ship any commodity in 
5A001.b.3, .b.5 or .h to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
List of Items Controlled
Unit: Equipment or antennae in number; cable and fiber in meters/feet, 
components and accessories in $ value.
Related Controls: Telecommunications equipment defined in 5A001.a.1 
through A001.a.3 for use on board satellites is subject to the export 
licensing authority of the Department of State, Directorate of Defense 
Trade Controls (22 CFR part 121). Direction finding equipment defined in 
5A001.e is subject to the export licensing authority of the Department 
of State, Directorate 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 designed or 
modified for use on board satellites.
    b. Telecommunication systems and equipment, and specially designed 
components and accessories therefor, having any of the following 
characteristics, functions or features:
    b.1 Being underwater untethered communications systems having any of 
the following:
    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; or
    b.1.d. Using ``lasers'' or light-emitting diodes (LEDs) with an 
output wavelength greater than 400 nm and less than 700 nm, in a ``local 
area network'';
    b.2. Being radio equipment operating in the 1.5 MHz to 87.5 MHz band 
and having all of the following:
    b.2.a. Automatically predicting and selecting frequencies and 
``total digital transfer rates'' per channel to optimize the 
transmission; and
    b.2.b. 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

[[Page 831]]

``frequency hopping'' techniques, not controlled in 5A001.b.4 and having 
any of the following:
    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 any of the following:
    a. Civil cellular radio-communications systems; or
    b. Fixed or mobile satellite Earth stations for commercial civil 
telecommunications.
    Note: 5A001.b.3 does not control equipment operating at an output 
power of 1 W or less.
    b.4. Being radio equipment employing ultra-wideband modulation 
techniques, having user programmable channelizing codes, scrambling 
codes, or network identification codes and having any of the following:
    b.4.a. A bandwidth exceeding 500 MHz; or
    b.4.b. A ``fractional bandwidth'' of 20% or more;
    b.5. Being digitally controlled radio receivers having all of the 
following:
    b.5.a. More than 1,000 channels;
    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 Notes: 1. For variable rate `voice coding', 5A001.b.6 
applies to the `voice coding' output of continuous speech.
    2. For the purpose of 5A001.b.6, `voice coding' is defined as the 
technique to take samples of human voice and then convert these samples 
of human voice into a digital signal taking into account specific 
characteristics of human speech.
    c. Optical fibers of more than 500 m in length and specified by the 
manufacturer as being capable of withstanding a `proof test' tensile 
stress of 2 x 10\9\ N/m\2\ or more;
    N.B.: For underwater umbilical cables, see 8A002.a.3.
    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.
    d. ``Electronically steerable phased array antennae'' operating 
above 31.8 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).
    e. Radio direction finding equipment operating at frequencies above 
30 MHz and having all of the following, and specially designed 
components therefor:
    e.1. ``Instantaneous bandwidth'' of 10 MHz or more; and
    e.2. Capable of finding a Line Of Bearing (LOB) to non-cooperating 
radio transmitters with a signal duration of less than 1 ms;
    f. Jamming equipment specially designed or modified to intentionally 
and selectively interfere with, deny, inhibit, degrade or seduce mobile 
telecommunication services and perform any of the following, and 
specially designed components therefor:
    f.1. Simulate the functions of Radio Access Network (RAN) equipment;
    f.2. Detect and exploit specific characteristics of the mobile 
telecommunications protocol employed (e.g., GSM); or
    f.3. Exploit specific characteristics of the mobile 
telecommunications protocol employed (e.g., GSM);
    N.B.: For GNSS jamming equipment see the International Traffic in 
Arms Regulations (ITAR) (22 CFR Parts 120-130).
    g. Passive Coherent Location (PCL) systems or equipment, specially 
designed for detecting and tracking moving objects by measuring 
reflections of ambient radio frequency emissions, supplied by non-radar 
transmitters.
    Technical Note: Non-radar transmitters may include commercial radio, 
television or cellular telecommunications base stations.
    Note: 5A001.g does not control:
    a. Radio-astronomical equipment; or
    b. Systems or equipment, that require any radio transmission from 
the target.
    h. Radio Frequency (RF) transmitting equipment designed or modified 
for prematurely activating or preventing the initiation of Improvised 
Explosive Devices (IEDs).
    N.B.: See also ECCN 5A001.f and Category XI of the International 
Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-130).
    i. Systems or equipment, specially designed or modified to intercept 
and process the air interface of 'mobile telecommunications', and 
specially designed components therefor.
    Note: 5A001.i does not apply to equipment designed for 'mobile 
telecommunications' network operators, or for the ``development'' or 
``production'' of 'mobile telecommunications' equipment or systems.
    Technical Note: For the purposes of 5A001.i, 'mobile 
telecommunications' refers to the following telecommunications protocols 
or standards: GSM, GSM-R, GPRS, IMT-2000, PMR

[[Page 832]]

(Professional Mobile Radio), Inmarsat, Iridium, Thuraya, VSAT or ACES.
    N.B.: See also 5A001.f, 5A980, and the U.S. Munitions List (22 CFR 
part 121).

5A101 Telemetering and telecontrol equipment, including ground 
          equipment, designed or modified for unmanned aerial vehicles 
          or rocket systems (including ballistic missile systems, space 
          launch vehicles, sounding rockets, cruise missile systems, 
          target drones, and reconnaissance drones) capable of a maximum 
          ``range'' equal to or greater than 300km.
License Requirements
Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

    Note: 5A101 does not control: 1. 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;
    2. Equipment designed or modified for manned aircraft or satellites;
    3. Ground based equipment designed or modified for terrestrial or 
marine applications;
    4. Equipment designed for commercial, civil, or safety of life 
(e.g., data integrity or flight safety) Global Navigation Satellite 
System services.
    Note: 5A101 does not include items not designed or modified for 
unmanned aerial vehicles or rocket systems (including ballistic missile 
systems, space launch vehicles, sounding rockets, cruise missile 
systems, target drones, and reconnaissance drones) capable of a maximum 
``range'' equal to or greater than 300 km (e.g., telemetry circuit cards 
limited by design to reception only and designed for use in personal 
computers).

5A980 Devices primarily useful for the surreptitious interception of 
          wire, oral, or electronic communications, other than those 
          controlled under 5A001.i; and parts and accessories therefor
License Requirements
Reason for Control: SL, AT.
Control(s): SL and AT apply to entire entry. A license is required for 
all destinations, as specified inSec. 742.13 of the EAR. Accordingly, 
a column specific to this control does not appear on the Commerce 
Country Chart (Supplement No. 1 to Part 738 of the EAR).

    Note: This licensing requirement does not supersede, nor does it 
implement, construe or limit the scope of any criminal statute, 
including, but not limited to the Omnibus Safe Streets Act of 1968, as 
amended.

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled (1) See ECCN 5A001.i for systems or equipment, 
specially designed or modified to intercept and process the air 
interface of 'mobile telecommunications', and specially designed 
components therefor. (2) See ECCN 5D980 for ``software'' for the 
``development'', ``production'' or ``use'' of equipment controlled by 
5A980. (3) See ECCN 5E980 for the ``technology'' for the 
``development'', ``production'', and ``use'' of equipment controlled by 
5A980.
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, Directorate of Defense Trade Controls (22 CFR part 
121). See also 5E001.c, 5E101 and 5E991.
Related Definitions: (1) ``Asynchronous transfer mode'' (``ATM'') is 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. (2) ``Bandwidth of one voice 
channel'' is data communication equipment designed to operate in one 
voice channel of 3,100 Hz, as defined in CCITT Recommendation G.151. (3) 
``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. (4) 
``Datagram'' is a self-contained, independent entity of data carrying 
sufficient information to be

[[Page 833]]

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. (5) 
``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. (6) ``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. (7) ``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. 
(8) ``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.

    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;

[[Page 834]]

    b.7.c. Other digital modulation techniques and having a ``spectral 
efficiency'' exceeding 3 bit/s/Hz; or
    b.7.d. Operating in the 1.5 MHz to 87.5 MHz band and incorporating 
adaptive techniques providing more than 15 dB suppression of an 
interfering signal.

    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.

    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. [Reserved]
    c.3. Routing or switching of ``datagram'' packets;
    c.4. [Reserved]

    Note: The restrictions in 5A991.c.3 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'';
    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;

    Note: 5A991.c.10 does not control packet switches or routers with 
ports or lines not exceeding the limits in 5A991.c.10.

    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 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, 
          components and accessories, 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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
LVS: $5000
GBS: Yes
CIV: Yes
STA: License Exception STA may not be used to ship 5B001.a equipment and 
specially designed components or accessories

[[Page 835]]

therefor, specially designed for the ``development'', ``production'' or 
``use'' of equipment, functions or features specified by in ECCN 
5A001.b.3, .b.5 or .h to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
List of Items Controlled
Unit: Equipment in number; components 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;
    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 switching equipment:
    b.1. [Reserved]
    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'' using praseodymium-doped 
fluoride fiber amplifiers (PDFFA);
    b.2.c. Employing coherent optical transmission or coherent optical 
detection techniques; or
    Note: 5B001.b.2.c applies to equipment specially designed for the 
``development'' of systems using an optical local oscillator in the 
receiving side to synchronize with a carrier ``laser.''
    Technical Note: For the purpose of 5B001.b.2.c, these techniques 
include optical heterodyne, homodyne or intradyne techniques.
    b.2.d. Employing analog techniques and having a bandwidth exceeding 
2.5 GHz; or
    Note: 5B001.b.2.d. does not include equipment specially designed for 
the ``development'' of commercial TV systems.
    b.3. [Reserved]
    b.4. Radio equipment employing Quadrature-Amplitude-Modulation (QAM) 
techniques above level 256.

5B991 Telecommunications test equipment, n.e.s.
License Requirements
Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
LVS: 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

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 follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, SL, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.
SL applies to the entire entry as        A license is required for all
 applicable for equipment, functions,     destinations, as specified in
 features, or characteristics           Sec. 742.13 of the EAR.
 controlled by 5A001.i.                   Accordingly, a column specific
                                          to this control does not
                                          appear on the Commerce Country
                                          Chart (Supplement No. 1 to
                                          Part 738 of the EAR).
                                         Note to SL paragraph: This
                                          licensing requirement does not
                                          supersede, nor does it
                                          implement, construe or limit
                                          the scope of any criminal
                                          statute, including, but not
                                          limited to the Omnibus Safe
                                          Streets Act of 1968, as
                                          amended.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions. SeeSec. 740.2(a)(3) 
of the EAR for restrictions on the use of License Exceptions for 5D001 
(as it applies to 5A001.i or 5E001.a (as it applies to 5A001.i or 
5D001.a (as it applies to 5A001.i))).
License Exceptions

[[Page 836]]

CIV: Yes, except for ``software'' controlled by 5D001.a and specially 
designed for the ``development'' or ``production'' of items controlled 
by 5A001.b.5 and 5A001.h.
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 and 5A001.h.
STA: License Exception STA may not be used to ship or transmit 5D001.a 
``software'' specially designed for the ``development'' or 
``production'' of equipment, functions or features, specified by ECCN 
5A001.b.3, .b.5 or .h; and for 5D001.b. for ``software'' specially 
designed or modified to support ``technology'' specified by the STA 
paragraph in the License Exception section of ECCN 5E001 to any of the 
eight destinations listed inSec. 740.20(c)(2) of the EAR.
List of Items Controlled
Unit: $ value.
Related Controls: See also 5D980 and 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;
    b. ``Software'' specially designed or modified to support 
``technology'' controlled by 5E001;
    c. Specific ``software'' specially designed or modified to provide 
characteristics, functions or features of equipment, controlled by 5A001 
or 5B001;
    d. ``Software'' specially designed or modified for the 
``development'' of any of the following telecommunication transmission 
or switching equipment:
    d.1. [Reserved]
    d.2. Equipment employing a ``laser'' and having any of the 
following:
    d.2.a. A transmission wavelength exceeding 1,750 nm; or
    d.2.b. Employing analog techniques and having a bandwidth exceeding 
2.5 GHz; or
    Note: 5D001.d.2.b does not control ``software'' specially designed 
or modified for the ``development'' of commercial TV systems.
    d.3. [Reserved]
    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.

5D980 Other ``software'', other than that controlled by 5D001 (for the 
          equipment, functions, features, or characteristics controlled 
          by 5A001.i, or to support certain ``technology'' controlled by 
          5E001.a), as follows (see List of Items Controlled).
License Requirements
Reason for Control: SL, AT.
Controls: SL and AT apply to entire entry. A license is required for all 
destinations, as specified inSec. 742.13 of the EAR. Accordingly, a 
column specific to this control does not appear on the Commerce Country 
Chart (Supplement No. 1 to Part 738 of the EAR).

    Note: This licensing requirement does not supersede, nor does it 
implement, construe or limit the scope of any criminal statute, 
including, but not limited to the Omnibus Safe Streets Act of 1968, as 
amended.

License Exceptions
CIV: N/A
TSR: N/A
List of Items Controlled
Unit: $ value.
Related Controls: See also 5D001.a and .c for software controls for 
equipment, functions, features or characteristics controlled by 5A001.i 
and also 5D001.b for controls on ``software'' specially designed or 
modified to support ``technology'' controlled by 5E001.a (for 5A001.i 
equipment, functions or features, and for 5D001.a ``software'' for 
5A001.i equipment). See 5E980 for ``technology'' for the 
``development'', ``production'', and ``use'' of equipment controlled by 
5A980 or ``software'' controlled by 5D980.
Related Definitions: N/A
Items: a. ``Software'' primarily useful for the surreptitious 
interception of wire, oral, and electronic communications.
    b. ``Software'' primarily useful for the ``development'', 
``production'', or ``use'' of equipment controlled by 5A980.

5D991 ``Software'' specially designed or modified for the 
          ``development'', ``production'' or ``use'' of equipment 
          controlled by 5A991 and 5B991, and dynamic adaptive routing 
          software as described in the List of Items Controlled.
License Requirements
Reason for Control: AT

[[Page 837]]



------------------------------------------------------------------------
               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'', other than in machine-executable form, specially 
designed for ``dynamic adaptive routing''.
    b. [Reserved]

                              E. Technology

5E001 ``Technology'' as follows (see List of Items Controlled)..
License Requirements
Reason for Control: NS, SL, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.
SL applies to ``technology'' for the     A license is required for all
 ``development'' or ``production'' of     destinations, as specified in
 equipment, functions or features       Sec. 742.13 of the EAR.
 controlled by 5A001.i, or for the        Accordingly, a column specific
 ``development'' or ``production'' of     to this control does not
 ``software'' controlled by ECCN          appear on the Commerce Country
 5D001.a (for 5A001.i).                   Chart (Supplement No. 1 to
                                          Part 738 of the EAR).
                                         Note to SL paragraph: This
                                          licensing requirement does not
                                          supersede, nor does it
                                          implement, construe or limit
                                          the scope of any criminal
                                          statute, including, but not
                                          limited to the Omnibus Safe
                                          Streets Act of 1968, as
                                          amended.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions. SeeSec. 740.2(a)(3) 
of the EAR for restrictions on the use of License Exceptions for 5E001.a 
(as it applies to 5A001.i or 5D001.a (as it applies to 5A001.i))).
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 5A001.h; 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 or 5A001.h.
STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment, functions or features 
specified by 5A001.b.3, .b.5 or .h; or for ``software'' in 5D001.a that 
is specified in the STA paragraph in the License Exception section of 
ECCN 5D001 to any of the eight destinations listed inSec. 740.20(c)(2) 
of the EAR.
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, Directorate of Defense 
Trade Controls (22 CFR part 121). See also 5E101, 5E980 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, controlled by 5A001 or ``software'' 
controlled by 5D001.a.
    b. Specific ``technology'' as follows:
    b.1. ``Required'' ``technology'' for the ``development'' or 
``production'' of telecommunications equipment specially designed to be 
used on board satellites;
    b.2. ``Technology'' for the ``development'' or ``use'' of ``laser'' 
communication techniques with the capability of automatically acquiring 
and tracking signals and maintaining communications through 
exoatmosphere or sub-surface (water) media;
    b.3. ``Technology'' for the ``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.
    Note: 5E001.b.4 does not apply to ``technology'' for the 
``development'' of any of the following:
    a. Civil cellular radio-communications systems; or
    b. Fixed or mobile satellite Earth stations for commercial civil 
telecommunications.
    c. ``Technology'' according the General Technology Note for the 
``development'' or ``production'' of any of the following:
    c.1. Equipment employing digital techniques designed to operate at a 
``total digital transfer rate'' exceeding 120 Gbit/s;
    Technical Note: For telecommunication switching equipment the 
``total digital transfer rate'' is the unidirectional speed of a single

[[Page 838]]

interface, measured at the highest speed port or line.
    c.2. Equipment employing a ``laser'' and having any of the 
following:
    c.2.a. A transmission wavelength exceeding 1,750 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;
    Note: 5E001.c.2.c applies to ``technology'' specially designed for 
the ``development'' or ``production'' of systems using an optical local 
oscillator in the receiving side to synchronize with a carrier 
``laser.''
    Technical Note: For the purpose of 5E001.c.2.c, these techniques 
include optical heterodyne, homodyne or intradyne techniques.
    c.2.d. Employing wavelength division multiplexing techniques of 
optical carriers at less than 100 GHz spacing; 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.
    N.B.: For ``technology'' for the ``development'' or ``production'' 
of non-telecommunications equipment employing a ``laser'', see Product 
Group E of Category 6, e.g., 6E00x.
    c.3. Equipment employing ``optical switching'' and having a 
switching time less than 1 ms; or
    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 31.8 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.4.c. Operating in the 1.5 MHz to 87.5 MHz band and incorporating 
adaptive techniques providing more than 15 dB suppression of an 
interfering signal; or
    c.5. [Reserved]
    c.6. Mobile equipment having all of the following:
    c.6.a. Operating at an optical wavelength greater than or equal to 
200 nm and less than or equal to 400 nm; and
    c.6.b. Operating as a ``local area network'';
    d. ``Technology'' according to the General Technology Note for the 
``development'' or ``production'' of Microwave Monolithic Integrated 
Circuit (MMIC) power amplifiers specially designed for 
telecommunications and having any of the following:
    d.1. Rated for operation at frequencies exceeding 3.2 GHz up to and 
including 6.8 GHz and with an average output power greater than 4 W (36 
dBm) with a ``fractional bandwidth'' greater than 15%;
    d.2. Rated for operation at frequencies exceeding 6.8 GHz up to and 
including 16 GHz and with an average output power greater than 1 W (30 
dBm) with a ``fractional bandwidth'' greater than 10%;
    d.3. Rated for operation at frequencies exceeding 16 GHz up to and 
including 31.8 GHz and with an average output power greater than 0.8 W 
(29 dBm) with a ``fractional bandwidth'' greater than 10%;
    d.4. Rated for operation at frequencies exceeding 31.8 GHz up to and 
including 37.5 GHz;
    d.5. Rated for operation at frequencies exceeding 37.5 GHz up to and 
including 43.5 GHz and with an average output power greater than 0.25 W 
(24 dBm) with a ``fractional bandwidth'' greater than 10%; or
    d.6. Rated for operation at frequencies exceeding 43.5 GHz;
    e. ``Technology'' according to the General Technology Note for the 
``development'' or ``production'' of electronic devices and circuits, 
specially designed for telecommunications and containing components 
manufactured from ``superconductive'' materials, specially designed for 
operation at temperatures below the ``critical temperature'' of at least 
one of the ``superconductive'' constituents and having any of the 
following:
    e.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
    e.2. Frequency selection at all frequencies using resonant circuits 
with Q-values exceeding 10,000.

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

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               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.

5E980 ``Technology'', other than that controlled by 5E001.a (for 
          5A001.i, and for 5D001.a (for 5A001.i)), primarily useful

[[Page 839]]

          for the ``development'', ``production'', or ``use'' of 
          equipment, functions or features, of equipment controlled by 
          5A980 or ``software'' controlled by 5D980.
License Requirements
Reason for Control: SL, AT.
Controls: SL and AT apply to entire entry. A license is required for all 
destinations, as specified inSec. 742.13 of the EAR. Accordingly, a 
column specific to this control does not appear on the Commerce Country 
Chart (Supplement No. 1 to Part 738 of the EAR).
License Exceptions
CIV: N/A
TSR: N/A
List of Items Controlled
Unit: $ value.
Related Controls: See also 5D001.a and .c (for 5A001.i equipment), 
5D001.b (supporting 5E001.a ``technology'' for 5A001.i equipment, or for 
5D001.a ``software'' (for 5A001.i equipment)), and 5E001.a (for 5A001.i 
equipment, or for 5D001.a ``software'' for 5A001.i equipment).
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.

                    Part 2--``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 Note 3 (Cryptography Note): You must submit a classification 
request or encryption registration to BIS for mass market encryption 
commodities and software eligible for the Cryptography Note employing a 
key length greater than 64 bits for the symmetric algorithm (or, for 
commodities and software not implementing any symmetric algorithms, 
employing a key length greater than 768 bits for asymmetric algorithms 
or greater than 128 bits for elliptic

[[Page 840]]

curve algorithms) in accordance with the requirements ofSec. 742.15(b) 
of the EAR in order to be released from the ``EI'' and ``NS'' controls 
of ECCN 5A002 or 5D002.

    Note 4: Category 5, Part 2 does not apply to items incorporating or 
using ``cryptography'' and meeting all of the following:
    a. The primary function or set of functions is not any of the 
following:
    1. ``Information security'';
    2. A computer, including operating systems, parts and components 
therefor;
    3. Sending, receiving or storing information (except in support of 
entertainment, mass commercial broadcasts, digital rights management or 
medical records management); or
    4. Networking (includes operation, administration, management and 
provisioning);
    b. The cryptographic functionality is limited to supporting their 
primary function or set of functions; and
    c. 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. and b. above.
    Technical Note: Parity bits are not included in the key length.

5A002 ``Information security'' systems, equipment and components 
          therefor, as follows (see List of Items Controlled).
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 5A002.a.1, .a.2, .a.5, .a.6, .a.9 and .b. Refer toSec. 
742.15 of the EAR.
License Exceptions
LVS: Yes: $500 for components and spare parts only. N/A for equipment.
GBS: N/A
CIV: N/A
ENC: Yes for certain EI controlled commodities, seeSec. 740.17 of the 
EAR for eligibility.
List of Items Controlled
Unit: $ value.
Related Controls: (1) 5A002 does not control the commodities listed in 
paragraphs (a), (d), (e), (f), (g), (i) and (j) in the Note in the items 
paragraph of this entry. These commodities are instead classified under 
ECCN5A992, and related software and technology are classified under 
ECCNs 5D992 and 5E992 respectively. (2) After encryption registration to 
or classification by BIS, mass market encryption commodities that meet 
eligibility requirements are released from ``EI'' and ``NS'' controls. 
These commodities are classified under ECCN 5A992.c. SeeSec. 742.15(b) 
of the EAR.
Related Definitions: N/A

    Items:

    Note: 5A002 does not control any of the following. However, these 
items are instead controlled under 5A992:
    (a) Smart cards and smart card `readers/writers' as follows:
    (1) A smart card or an electronically readable personal document 
(e.g., token coin, e-passport) that meets any of the following:
    a. The cryptographic capability is restricted for use in equipment 
or systems excluded from 5A002 by Note 4 in Category 5--Part 2 or 
entries (b) to (i) of this Note, and cannot be reprogrammed for any 
other use; or
    b. Having all of the following:
    1. It is specially designed and limited to allow protection of 
`personal data' stored within;
    2. Has been, or can only be, personalized for public or commercial 
transactions or individual identification; and
    3. Where the cryptographic capability is not user-accessible;
    Technical Note: `Personal data' includes any data specific to a 
particular person or entity, such as the amount of money stored and data 
necessary for authentication.
    (2) `Readers/writers' specially designed or modified, and limited, 
for items specified by (a)(1) of this Note;
    Technical Note: `Readers/writers' include equipment that 
communicates with smart cards or electronically readable documents 
through a network.
    (b) [Reserved]
    N.B.: See Note 4 in Category 5--Part 2 for items previously 
specified in 5A002 Note (b).
    (c) [Reserved]
    N.B.: See Note 4 in Category 5--Part 2 for items previously 
specified in 5A002 Note (c).
    (d) Cryptographic equipment specially designed and limited for 
banking use or `money transactions';
    Technical Note: The term `money transactions' includes the 
collection and settlement of fares or credit functions.
    (e) Portable or mobile radiotelephones for civil use (e.g., for use 
with commercial civil cellular radio communication systems) that are not 
capable of transmitting encrypted data directly to another 
radiotelephone or equipment (other than Radio Access Network (RAN) 
equipment), nor of passing encrypted data through RAN equipment (e.g., 
Radio Network Controller (RNC) or Base Station Controller (BSC));
    (f) Cordless telephone equipment not capable of end-to-end 
encryption where the maximum effective range of unboosted cordless 
operation (i.e., a single, unrelayed hop between terminal and home base 
station) is less than 400 meters according to the manufacturer's 
specifications;

[[Page 841]]

    (g) Portable or mobile radiotelephones and similar client wireless 
devices for civil use, that implement only published or commercial 
cryptographic standards (except for anti-piracy functions, which may be 
non-published) and also meet the provisions of paragraphs b. to d. of 
the Cryptography Note (Note 3 in Category 5--Part 2), that have been 
customized for a specific civil industry application with features that 
do not affect the cryptographic functionality of these original non-
customized devices;
    (h) [Reserved]
    N.B.: See Note 4 in Category 5--Part 2 for items previously 
specified in 5A002 Note (h).
    (i) Wireless ``personal area network'' equipment that implement only 
published or commercial cryptographic standards and where the 
cryptographic capability is limited to a nominal operating range not 
exceeding 30 meters according to the manufacturer's specifications; or

    (j) Equipment, having no functionality specified by 5A002.a.2, 
5A002.a.4, 5A002.a.7, or 5A002.a.8, where all cryptographic capability 
specified by 5A002.a meets any of the following:
    1. It cannot be used; or
    2. It can only be made useable by means of ``cryptographic 
activation''.
    N.B.: See 5A002.a for equipment that has undergone ``cryptographic 
activation''.
    a. Systems, equipment, application specific ``electronic 
assemblies'', modules and integrated circuits for ``information 
security'', as follows, and components therefor specially designed for 
``information security'':
    N.B.: For the control of Global Navigation Satellite Systems (GNSS) 
receiving equipment containing or employing decryption, see ECCN 7A005.
    a.1. Designed or modified to use ``cryptography'' employing digital 
techniques performing any cryptographic function other than 
authentication or digital signature and 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, not 
controlled in 5A002.a.6., including the hopping code for ``frequency 
hopping'' systems;
    a.6. Designed or modified to use cryptographic techniques to 
generate channelizing codes, scrambling codes or network identification 
codes, for systems using ultra-wideband modulation techniques and having 
any of the following:
    a.6.a. A bandwidth exceeding 500 MHz; or
    a.6.b. A ``fractional bandwidth'' of 20% or more;
    a.7. Non-cryptographic information and communications technology 
(ICT) security systems and devices evaluated to an assurance level 
exceeding class EAL-6 (evaluation assurance level) of the Common 
Criteria (CC) or equivalent;
    a.8. Communications cable systems designed or modified using 
mechanical, electrical or electronic means to detect surreptitious 
intrusion;
    Note: 5A002.a.8 applies only to physical layer security.
    a.9. Designed or modified to use `quantum cryptography.'
    Technical Notes: 1. `Quantum cryptography' A family of techniques 
for the establishment of a shared key for ``cryptography'' by measuring 
the quantum-mechanical properties of a physical system (including those 
physical properties explicitly governed by quantum optics, quantum field 
theory, or quantum electrodynamics).
    2. `Quantum cryptography' is also known as Quantum Key Distribution 
(QKD).
    b. Systems, equipment, application specific ``electronic 
assemblies'', modules and integrated circuits, designed or modified to 
enable an item to achieve or exceed the controlled performance levels 
for functionality specified by 5A002.a that would not otherwise be 
enabled.

5A992 Equipment not controlled by 5A002.
License Requirements

[[Page 842]]


------------------------------------------------------------------------
               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. 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.
    c. Commodities that BIS has received an encryption registration or 
that have been classified as mass market encryption commodities in 
accordance withSec. 742.15(b) of the EAR.

5B002 ``Information Security'' 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 1
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
ENC: Yes for certain EI controlled equipment, seeSec. 740.17 of the 
EAR for eligibility.
List of Items Controlled
Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Equipment specially designed for the ``development'' or 
``production'' of equipment controlled by 5A002 or 5B002.b;
    b. Measuring equipment specially designed to evaluate and validate 
the ``information security'' functions of equipment controlled by 5A002 
or ``software'' controlled by 5D002.a or 5D002.c.

                         C. Materials [Reserved]

                               D. Software

5D002 ``Software'' as follows (see List of Items Controlled)
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 ``software'' in 5D002.a,.c.1, or .d for equipment 
controlled for EI reasons in ECCN 5A002. Refer toSec. 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 source code classified under this entry remains 
subject to the EAR even when made publicly available in accordance with 
part 734 of the EAR. However, publicly available encryption object code 
software classified under ECCN 5D002 is not subject to the EAR when the 
corresponding source code meets the criteria specified inSec. 
740.13(e), see alsoSec. 734.3(b)(3) of the EAR.

License Exceptions
CIV: N/A
TSR: N/A
ENC: Yes for certain EI controlled software, seeSec. 740.17 of the EAR 
for eligibility.
List of Items Controlled
Unit: $ value.
Related Controls: (1) 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. This software is classified as ECCN 5D992.
    (2) After an encryption registration has been submitted to BIS or 
classification by BIS, mass market encryption software that meet 
eligibility requirements are released from ``EI'' and ``NS'' controls. 
This software is classified under ECCN 5D992.c. SeeSec. 742.15(b) of 
the EAR.
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 controlled by 
5A002 or ``software'' controlled by 5D002.c;
    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;
    c.2. ``Software'' to certify ``software'' controlled by 5D002.c.1.
    d. ``Software'' designed or modified to enable an item to achieve or 
exceed the controlled performance levels for functionality

[[Page 843]]

specified by 5A002.a that would not otherwise be enabled.

5D992 ``Information Security'' ``software'' not controlled by 5D002.
License Requirements

------------------------------------------------------------------------
               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: This entry does not control ``software'' designed or 
modified to protect against malicious computer damage, e.g., viruses, 
where the use of ``cryptography'' is limited to authentication, digital 
signature and/or the decryption of data or files.
Related Definitions: N/A
Items:
    a. ``Software'' specially designed or modified for the 
``development,'' ``production,'' or ``use'' of equipment controlled by 
ECCN 5A992.a or 5A992.b.
    b. ``Software'' having the characteristics, or performing or 
simulating the functions of the equipment controlled by ECCN 5A992.a or 
5A992.b.
    c. ``Software'' that BIS has received an encryption registration or 
that have been classified as mass market encryption software in 
accordance withSec. 742.15(b) of the EAR.
5E002 ``Technology'' as follows (see List of Items Controlled).
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 ``technology'' for the ``development,'' 
``production,'' or ``use'' of commodities or ``software'' controlled for 
EI reasons in ECCNs 5A002 or 5D002. Refer toSec. 742.15 of the EAR.
    License Requirement Note: When a person performs or provides 
technical assistance that incorporates, or otherwise draws upon, 
``technology'' that was either obtained in the United States or is of 
US-origin, then a release of the ``technology'' takes place. Such 
technical assistance, when rendered with the intent to aid in the 
``development'' or ``production'' of encryption commodities or software 
that would be controlled for ``EI'' reasons under ECCN 5A002 or 5D002, 
may require authorization under the EAR even if the underlying 
encryption algorithm to be implemented is from the public domain or is 
not of U.S. origin.
Related Definitions: N/A
License Exceptions
CIV: N/A
TSR: N/A
ENC: Yes for certain EI controlled technology, seeSec. 740.17 of the 
EAR for eligibility.
List of Items Controlled
Unit: N/A
Related Controls: See also 5E992. This entry does not control 
``technology'' ``required'' for the ``use'' of equipment excluded from 
control under the Related Controls paragraph or the Technical Notes in 
ECCN 5A002 or ``technology'' related to equipment excluded from control 
under ECCN 5A002. This ``technology'' is classified as ECCN 5E992.
Items:
    a. ``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.a or 5D002.c.
    b. ``Technology'' to enable an item to achieve or exceed the 
controlled performance levels for functionality specified by 5A002.a 
that would not otherwise be enabled.

5E992 ``Information Security'' ``technology'' according to the General 
          Technology Note, not controlled by 5E002.
License Requirements

------------------------------------------------------------------------
               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'' n.e.s., for the ``development'', ``production'' 
or ``use'' of equipment controlled by 5A992.a, ``information 
security''or cryptologic equipment controlled by 5A992.b or ``software'' 
controlled by 5D992.a or b.
    b. ``Technology'', n.e.s., for the ``use'' of mass market 
commodities controlled by 5A992.c or mass market ``software'' controlled 
by 5D992.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 Acoustic systems, equipment and components, as follows (see List 
          of Items Controlled).
License Requirements
Reason for Control: NS, AT

[[Page 844]]



------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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 [micro]Pa at 1 m) for equipment with an 
operating frequency in the band from 30 kHz to 2 kHz inclusive; 
6A001.a.1.e, 6A001.a.2.a.1, a.2.a.2, 6A001.a.2.a.3, a.2.a.5, a.2.a.6, 
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 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.
STA: License Exception STA may not be used to ship commodities in 
6A001.a.1.b, 6A001.a.1.e or 6A001.a.2 (except .a.2.a.4) to any of the 
eight destinations listed inSec. 740.20(c)(2) of the EAR.
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 equipment as follows:
    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. Acoustic seabed survey equipment as follows:
    a.1.a.1. Surface vessel survey equipment designed for sea bed 
topographic mapping and having all of the following:
    a.1.a.1.a. Designed to take measurements at an angle exceeding 
20[deg] from the vertical;
    a.1.a.1.b. Designed to measure seabed topography at seabed depths 
exceeding 600 m;
    a.1.a.1.c. `'Sounding resolution' less than 2; and
    a.1.a.1.d. `Enhancement' of the depth accuracy through compensation 
for all the following:
    a.1.a.1.d.1. Motion of the acoustic sensor;
    a.1.a.1.d.2. In-water propagation from sensor to the seabed and 
back; and
    a.1.a.1.d.3. Sound speed at the sensor;
    Technical Notes: 1. `Sounding resolution' is the swath width 
(degrees) divided by the maximum number of soundings per swath.
    2. `Enhancement' includes the ability to compensate by external 
means.
    a.1.a.2. Underwater survey equipment designed for seabed topographic 
mapping and having all of the following:
    a.1.a.2.a. Designed or modified to operate at depths exceeding 300 
m; and
    a.1.a.2.b. `Sounding rate' greater than 3,800;
    Technical Note: 
    'Sounding rate' is the product of the maximum speed (m/s) at which 
the sensor can operate and the maximum number of soundings per swath.
    a.1.a.3. Side Scan Sonar (SSS) or Synthetic Aperture Sonar (SAS), 
designed for seabed imaging and having all of the following:
    a.1.a.3.a. Designed or modified to operate at depths exceeding 500 
m; and
    a.1.a.3.b. An `area coverage rate' of greater than 570 m\2\/s while 
operating with both an `along track resolution' and 'across track 
resolution' of less than 15 cm.
    Technical Notes: 1. `Area coverage rate' (m\2\/s) is twice the 
product of the maximum sonar range (m) and the maximum speed (m/s) at 
which the sensor can operate.
    2. `Along track resolution' (cm), for SSS only, is the product of 
azimuth (horizontal) beamwidth (degrees) and maximum sonar range (m) and 
0.873.
    3. `Across track resolution' (cm) is 75 divided by the signal 
bandwidth (kHz).
    a.1.b. Systems or transmitting and receiving arrays, designed for 
object detection or location, 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[micro]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 
[micro]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

[[Page 845]]

    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 
and 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 and equipment, designed to determine the 
position of surface vessels or underwater vehicles and having all of the 
following, and specially designed components therefor:
    a.1.d.1. Detection range exceeding 1,000 m; and
    a.1.d.2. 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.1.e. Active individual sonars, specially designed or modified to 
detect, locate and automatically classify swimmers or divers, having all 
of the following:
    a.1.e.1. Detection range exceeding 530 m;
    a.1.e.2. Positioning accuracy of less than 15 m rms (root mean 
square) when measured at a range of 530 m; and
    a.1.e.3. Transmitted pulse signal bandwidth exceeding 3 kHz;
    N.B.: For diver detection systems specially designed or modified for 
military use, see the U.S. Munitions List in the International Traffic 
in Arms Regulations (ITAR) (22 CFR part 121).
    a.2. Passive systems, equipment and specially designed components 
therefor, as follows:
    a.2.a. Hydrophones having any of the following:
    Note: The control status of hydrophones specially designed for other 
equipment is determined by the control status of the other equipment.
    Technical Note: Hydrophones consist of one or more sensing elements 
producing a single acoustic output channel. Those that contain multiple 
elements can be referred to as a hydrophone group.
    a.2.a.1. Incorporating continuous flexible sensing elements;
    a.2.a.2. Incorporating flexible assemblies of discrete sensing 
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.3. Having any of the following sensing elements:
    a.2.a.3.a. Optical fibers;
    a.2.a.3.b. `Piezoelectric polymer films' other than polyvinylidene-
fluoride (PVDF) and its co-polymers {P(VDF-TrFE) and P(VDF-TFE){time} ; 
or
    a.2.a.3.c. `Flexible piezoelectric composites';
    a.2.a.4. A `hydrophone sensitivity' better than -180dB at any depth 
with no acceleration compensation;
    a.2.a.5. Designed to operate at depths exceeding 35 m with 
acceleration compensation; or
    a.2.a.6. Designed for operation at depths exceeding 1,000 m;
    Technical Notes: 1. `Piezoelectric polymer film' sensing elements 
consist of polarized polymer film that is stretched over and attached to 
a supporting frame or spool (mandrel).
    2. `Flexible piezoelectric composite' sensing elements consist of 
piezoelectric ceramic particles or fibers combined with an electrically 
insulating, acoustically transparent rubber, polymer or epoxy compound, 
where the compound is an integral part of the sensing elements.
    3. `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 
[micro]Pa. For example, a hydrophone of -160 dB (reference 1 V per 
[micro]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:
    Technical Note: Hydrophone arrays consist of a number of hydrophones 
providing multiple acoustic output channels.
    a.2.b.1. Hydrophone group spacing of less than 12.5 m or `able to be 
modified' to have

[[Page 846]]

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 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. [Reserved]; 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 hydrophone arrays 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 removable 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;
    Note: 6A001.a.2 also applies to receiving equipment, whether or not 
related in normal application to separate active equipment, and 
specially designed components therefor.
    b. Correlation-velocity and Doppler-velocity sonar log equipment 
designed to measure the horizontal speed of the equipment carrier 
relative to the sea bed, as follows:
    b.1. Correlation-velocity sonar log equipment having any of the 
following characteristics:
    b.1.a. Designed to operate at distances between the carrier and the 
sea bed exceeding 500 m; or
    b.1.b. Having speed accuracy better than 1% of speed;
    b.2. Doppler-velocity sonar log equipment having speed accuracy 
better than 1% of speed;
    Note 1: 6A001.b does not apply to depth sounders limited to any of 
the following:
    a. Measuring the depth of water;
    b. Measuring the distance of submerged or buried objects; or
    c. Fish finding.
    Note 2: 6A001.b. does not apply to equipment specially designed for 
installation on surface vessels.
    c. [Reserved]
    N.B.: For diver deterrent acoustic systems, see 8A002.r.

6A002 Optical sensors or equipment and components therefore, as follows 
          (see List of Items Controlled).
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, or a.3 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        RS Column 1.
 (except a.3.d.2.a and a.3.e for lead
 selenide based focal plane arrays
 (FPAs)), and .c.
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  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
LVS: $3,000; except N/A for MT and for 6A002.a.1, a.2, a.3, and .c.
GBS: N/A
CIV: N/A
STA: License Exception STA may not be used to ship to any of the eight 
destinations listed inSec. 740.20(c)(2) of the EAR any commodity in: 
6A002.a.1.a, a.1.b or a.1.c; 6A002.a.3.c, a.3.d, a.3.e, or a.3.f; or 
6A002.b.
List of Items Controlled
Unit: Number
Related Controls: The following commodities are subject to the export 
licensing authority of U.S. Department of State, Directorate of Defense 
Trade Controls (22 CFR

[[Page 847]]

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'' 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, Directorate 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:

    a. Optical detectors as follows:
    a.1. ``Space-qualified'' solid-state detectors as follows:
    Note: For the purpose of 6A002.a.1, solid-state detectors include 
``focal plane arrays''.
    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.1.d. ``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;
    a.2. Image intensifier tubes and specially designed components 
therefor, as follows:
    Note: 6A002.a.2 does not control non-imaging photomultiplier tubes 
having an electron sensing device in the vacuum space limited solely to 
any of the following:
    a. A single metal anode; or
    b. Metal anodes with a center to center spacing greater than 500 
[micro]m.
    Technical Note: `Charge multiplication' is a form of electronic 
image amplification and is defined as the generation of charge carriers 
as a result of an impact ionization gain process. 'Charge 
multiplication' sensors may take the form of an image intensifier tube, 
solid state detector or ``focal plane array''.
    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. Electron image amplification using any of the following:
    a.2.a.2.a. A microchannel plate with a hole pitch (center-to-center 
spacing) of 12 [micro]m or less; or
    a.2.a.2.b. An electron sensing device with a non-binned pixel pitch 
of 500 [micro]m or less, specially designed or modified to achieve 
'charge multiplication' other than by a microchannel plate; and
    a.2.a.3. Any of the following photocathodes:
    a.2.a.3.a. Multialkali photocathodes (e.g., S-20 and S-25) having a 
luminous sensitivity exceeding 350 [micro]A/lm;
    a.2.a.3.b. GaAs or GaInAs photocathodes; or
    a.2.a.3.c. Other ``III-V compound'' semiconductor photocathodes 
having a maximum ``radiant sensitivity'' exceeding 10 mA/W;
    a.2.b. Image intensifier tubes having all of the following:
    a.2.b.1. A peak response in the wavelength range exceeding 1,050 nm 
but not exceeding 1,800 nm;
    a.2.b.2. Electron image amplification using any of the following:
    a.2.b.2.a. A microchannel plate with a hole pitch (center-to-center 
spacing) of 12 [micro]m or less; or
    a.2.b.2.b. An electron sensing device with a non-binned pixel pitch 
of 500 [micro]m or less, specially designed or modified to achieve 
'charge multiplication' other than by a microchannel plate; and
    a.2.b.3. ``III/V compound'' semiconductor (e.g., GaAs or GaInAs) 
photocathodes and transferred electron photocathodes, having a maximum 
``radiant sensitivity'' exceeding 15 mA/W;
    a.2.c. Specially designed components as follows:
    a.2.c.1. Microchannel plates having a hole pitch (center-to-center 
spacing) of 12 [micro]m or less;
    a.2.c.2. An electron sensing device with a non-binned pixel pitch of 
500 [micro]m or less, specially designed or modified to achieve 'charge 
multiplication' other than by a microchannel plate;
    a.2.c.3. ``III-V compound'' semiconductor (e.g., GaAs or GaInAs) 
photocathodes and transferred electron photocathodes;
    Note: 6A002.a.2.c.3 does not control compound semiconductor 
photocathodes designed to

[[Page 848]]

achieve a maximum ``radiant sensitivity'' of any of the following:
    a. 10 mA/W or less at the peak response in the wavelength range 
exceeding 400 nm but not exceeding 1,050 nm; or
    b. 15 mA/W or less at the peak response in the wavelength range 
exceeding 1,050 nm but not exceeding 1,800 nm.
    a.3. Non-``space-qualified'' ``focal plane arrays'' as follows:
    N.B.: `Microbolometer' non-``space-qualified'' ``focal plane 
arrays'' are only specified by 6A002.a.3.f.
    Technical Note: Linear or two-dimensional multi-element detector 
arrays are referred to as ``focal plane arrays'';
    Note 1: 6A002.a.3 includes photoconductive arrays and photovoltaic 
arrays.
    Note 2: 6A002.a.3 does not control:
    a. Multi-element (not to exceed 16 elements) encapsulated 
photoconductive cells using either lead sulphide or lead selenide;
    b. Pyroelectric detectors using any of the following:
    b.1. Triglycine sulphate and variants;
    b.2. Lead-lanthanum-zirconium titanate and variants;
    b.3. Lithium tantalate;
    b.4. Polyvinylidene fluoride and variants; or
    b.5. Strontium barium niobate and variants.
    c. ``Focal plane arrays'' specially designed or modified to achieve 
'charge multiplication' and limited by design to have a maximum 
``radiant sensitivity'' of 10 mA/W or less for wavelengths exceeding 760 
nm, having all of the following:
    c.1. Incorporating a response limiting mechanism designed not to be 
removed or modified; and
    c.2. Any of the following:
    c.2.a. The response limiting mechanism is integral to or combined 
with the detector element; or
    c.2.b. The ``focal plane array'' is only operable with the response 
limiting mechanism in place.
    Technical Note: A response limiting mechanism integral to the 
detector element is designed not to be removed or modified without 
rendering the detector inoperable.
    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. Any of the following:
    a.3.a.2.a. A response ``time constant'' of less than 0.5 ns; or
    a.3.a.2.b. Specially designed or modified to achieve 'charge 
multiplication' and having a maximum ``radiant sensitivity'' exceeding 
10 mA/W.
    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. Any of the following:
    a.3.b.2.a. A response ``time constant'' of 95 ns or less; or
    a.3.b.2.b. Specially designed or modified to achieve 'charge 
multiplication' and having a maximum ``radiant sensitivity'' exceeding 
10 mA/W.
    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;
    N.B.: Silicon and other material based 'microbolometer' non-``space-
qualified'' ``focal plane arrays'' are only specified by 6A002.a.3.f.
    a.3.d. Non-``space-qualified'' linear (1-dimensional) ``focal plane 
arrays'' having all of the following:
    a.3.d.1. Individual elements with a peak response in the wavelength 
range exceeding 1,200 nm but not exceeding 3,000 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);
    Note: 6A002.a.3.d does not control ``focal plane arrays'' (not to 
exceed 32 elements) having detector elements limited solely to germanium 
material.
    Technical Note: For the purposes of 6A002.a.3.d, '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.
    a.3.e. Non-``space-qualified'' linear (1-dimensional) ``focal plane 
arrays'' having individual elements with a peak response in the 
wavelength range exceeding 3,000 nm but not exceeding 30,000 nm;
    a.3.f. Non-``space-qualified'' non-linear (2-dimensional) infrared 
``focal plane arrays'' based on 'microbolometer' material having 
individual elements with an unfiltered response in the wavelength range 
equal to or exceeding 8,000 nm but not exceeding 14,000 nm;
    Technical Note: For the purposes of 6A002.a.3.f, 'microbolometer' is 
defined as a thermal imaging detector that, as a result of a temperature 
change in the detector caused by the absorption of infrared radiation, 
is used to generate any usable signal.
    a.3.g. Non-``space-qualified'' ``focal plane arrays'' having all of 
the following:
    a.3.g.1. Individual detector elements with a peak response in the 
wavelength range exceeding 400 nm but not exceeding 900 nm;
    a.3.g.2. Specially designed or modified to achieve 'charge 
multiplication' and having a maximum ``radiant sensitivity'' exceeding 
10 mA/W for wavelengths exceeding 760 nm; and
    a.3.g.3. Greater than 32 elements.
    b. ``Monospectral imaging sensors'' and ``multispectral imaging 
sensors'', designed

[[Page 849]]

for remote sensing applications and having any of the following:
    b.1. An Instantaneous-Field-Of-View (IFOV) of less than 200 
[micro]rad (microradians); or
    b.2. 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. Having any of the following characteristics:
    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);
    Note: 6A002.b.1 does not control ``monospectral imaging sensors'' 
with a peak response in the wavelength range exceeding 300 nm but not 
exceeding 900 nm and only incorporating any of the following non-
``space-qualified'' detectors or non-``space-qualified'' ``focal plane 
arrays'':
    a. Charge Coupled Devices (CCD) not designed or modified to achieve 
'charge multiplication'; or
    b. Complementary Metal Oxide Semiconductor (CMOS) devices not 
designed or modified to achieve 'charge multiplication'.
    c. 'Direct view' imaging equipment incorporating any of the 
following:
    c.1. Image intensifier tubes having the characteristics listed in 
6A002.a.2.a or 6A002.a.2.b;
    c.2. ``Focal plane arrays'' having the characteristics listed in 
6A002.a.3; or
    c.3. Solid state detectors specified by 6A002.a.1.
    Technical Note: `Direct view' refers to imaging equipment 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 equipment as follows, when 
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 218K (-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.
    Note: 6A002.d.3 does not apply to encapsulated optical sensing 
fibers specially designed for bore hole sensing applications.

6A003 Cameras, systems or equipment, and components therefor, as follows 
          (see List of Items Controlled). 
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 6A003.b.3, 6A003.b.4.a,    RS Column 1.
 6A003.b.4.c and to items controlled in
 6A003.b.4.b that have a frame rate
 greater than 60 Hz or that incorporate
 a focal plane array with more than
 111,000 elements, or to items in
 6A003.b.4.b when being exported or
 reexported to be embedded in a civil
 product. (But see Sec.
 742.6(a)(2)(iii) and (v) for certain
 exemptions).
RS applies to items controlled in        RS Column 2.
 6A003.b.4.b that have a frame rate of
 60 Hz or less and that incorporate a
 focal plane array with not more than
 111,000 elements if not being exported
 or reexported to be embedded in a
 civil product.
RS applies to 6A003.b.4.b..............  A license is required to export
                                          or reexport these items to
                                          Hong Kong. This license
                                          requirement does not appear in
                                          the Commerce Country Chart.
AT applies to entire entry.............  AT Column 1.
UN applies to items controlled in        SeeSec.  746.1(b) for UN
 6A003.b.3 and b.4..                      controls.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
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.
STA: License Exception STA may not be used to ship any commodity in 
6A003.b.3 or b.4 to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
List of Items Controlled
Unit: Number.

[[Page 850]]

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.1 and .e for television and film-based photographic still 
cameras specially designed or modified for underwater use. (4) See ECCN 
0A919 for foreign made military commodities that incorporate cameras 
described in 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c. (5) Section 744.9 
imposes license requirements on cameras described in 6A003.b.3, 
6A003.b.4.b, or 6A003.b.4.c if being exported for incorporation into an 
item controlled by ECCN 0A919 or for a military end-user.
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.
    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/[micro]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[micro]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 
by 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 10 nm, but not exceeding 
30,000 nm and having all of the following:
    b.1.a. Having any of the following:
    b.1.a.1. More than 4x10\6\ ``active pixels'' per solid state array 
for monochrome (black and white) cameras;
    b.1.a.2. More than 4x10\6\ ``active pixels'' per solid state array 
for color cameras incorporating three solid state arrays; or
    b.1.a.3. More than 12x10\6\ ``active pixels'' for solid state array 
color cameras incorporating one solid state array; and
    b.1.b. Having any of the following:
    b.1.b.1. Optical mirrors controlled by 6A004.a.;
    b.1.b.2. Optical control equipment controlled by 6A004.d.; or
    b.1.b.3. The capability for annotating internally generated 'camera 
tracking data';
    Technical Notes: 1. For the purposes of this entry, digital video 
cameras should be evaluated by the maximum number of ``active pixels'' 
used for capturing moving images.
    2. For the purpose of this entry, 'camera tracking data' is the 
information necessary to define camera line of sight orientation with 
respect to the earth. This includes: 1) the horizontal angle the camera 
line of sight makes with respect to the earth's magnetic field direction 
and; 2) the vertical angle between the camera line of sight and the 
earth's horizon.
    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;
    Note: 6A003.b.2 does not apply to scanning cameras and scanning 
camera systems, specially designed for any of the following:
    a. Industrial or civilian photocopiers;
    b. Image scanners specially designed for civil, stationary, close 
proximity scanning applications (e.g., reproduction of images or print 
contained in documents, artwork or photographs); or
    c. Medical equipment.
    b.3. Imaging cameras incorporating image intensifier tubes having 
the characteristics listed in 6A002.a.2.a or 6A002.a.2.b;
    b.4. Imaging cameras incorporating ``focal plane arrays'' having any 
of the following:
    b.4.a. Incorporating ``focal plane arrays'' controlled by 
6A002.a.3.a to 6A002.a.3.e;
    b.4.b. Incorporating ``focal plane arrays'' controlled by 
6A002.a.3.f; or
    b.4.c. Incorporating ``focal plane arrays'' controlled by 
6A002.a.3.g;
    Note 1: Imaging cameras described in 6A003.b.4 include ``focal plane 
arrays'' combined with sufficient ``signal processing'' electronics, 
beyond the read out integrated circuit, to enable

[[Page 851]]

as a minimum the output of an analog or digital signal once power is 
supplied.
    Note 2: 6A003.b.4.a does not control imaging cameras incorporating 
linear ``focal plane arrays'' with 12 elements or fewer, not employing 
time-delay-and-integration within the element and 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.
    Note 3: 6A003.b.4.b does not control imaging cameras having any of 
the following:
    a. A maximum frame rate equal to or less than 9 Hz;
    b. Having all of the following:
    1. Having a minimum horizontal or vertical 'Instantaneous-Field-of-
View (IFOV)' of at least 10 mrad/pixel (milliradians/pixel);
    2. Incorporating a fixed focal-length lens that is not designed to 
be removed;
    3. Not incorporating a 'direct view' display; and
    Technical Note: 'Direct view' refers to an imaging camera operating 
in the infrared spectrum that presents a visual image to a human 
observer using a near-to-eye micro display incorporating any light-
security mechanism.
    4. Having any of the following:
    a. No facility to obtain a viewable image of the detected field-of-
view; or
    b. The camera is designed for a single kind of application and 
designed not to be user modified; or
    Technical Note: 'Instantaneous Field of View (IFOV)' specified in 
Note 3.b is the lesser figure of the 'Horizontal FOV' or the 'Vertical 
FOV'.
    'Horizontal IFOV' = horizontal Field of View (FOV)/number of 
horizontal detector elements
    'Vertical IFOV'= vertical Field of View (FOV)/number of vertical 
detector elements.
    c. The camera is specially designed for installation into a civilian 
passenger land vehicle of less than 3 tonnes (gross vehicle weight) and 
having all of the following:
    1. Is operable only when installed in any of the following:
    a. The civilian passenger land vehicle for which it was intended; or
    b. A specially designed, authorized maintenance test facility; and
    2. Incorporates an active mechanism that forces the camera not to 
function when it is removed from the vehicle for which it was intended.
    Note: When necessary, details of the items will be provided, upon 
request, to the Bureau of Industry and Security in order to ascertain 
compliance with the conditions described in Note 3.b.4 and Note 3.c in 
this Note to 6A003.b.4.b.
    Note 4: 6A003.b.4.c does not apply to 'imaging cameras' having any 
of the following characteristics:
    a. Having all of the following:
    1. Where the camera is specially designed for installation as an 
integrated component into indoor and wall-plug-operated systems or 
equipment, limited by design for a single kind of application, as 
follows:
    a. Industrial process monitoring, quality control, or analysis of 
the properties of materials;
    b. Laboratory equipment specially designed for scientific research;
    c. Medical equipment;
    d. Financial fraud detection equipment; and
    2. Is only operable when installed in any of the following:
    a. The system(s) or equipment for which it was intended; or
    b. A specially designed, authorized maintenance facility; and
    3. Incorporates an active mechanism that forces the camera not to 
function when it is removed from the system(s) or equipment for which it 
was intended;
    b. Where the camera is specially designed for installation into a 
civilian passenger land vehicle of less than 3 tonnes (gross vehicle 
weight), or passenger and vehicle ferries having a length overall (LOA) 
65 m or greater, and having all of the following:
    1. Is only operable when installed in any of the following:
    a. The civilian passenger land vehicle or passenger and vehicle 
ferry for which it was intended; or
    b. A specially designed, authorized maintenance test facility; and
    2. Incorporates an active mechanism that forces the camera not to 
function when it is removed from the vehicle for which it was intended;
    c. Limited by design to have a maximum ``radiant sensitivity'' of 10 
mA/W or less for wavelengths exceeding 760 nm, having all of the 
following:
    1. Incorporating a response limiting mechanism designed not to be 
removed or modified; and
    2. Incorporates an active mechanism that forces the camera not to 
function when the response limiting mechanism is removed; and
    3. Not specially designed or modified for underwater use; or
    d. Having all of the following:
    1. Not incorporating a 'direct view' or electronic image display;
    2. Has no facility to output a viewable image of the detected field 
of view;
    3. The ``focal plane array'' is only operable when installed in the 
camera for which it was intended; and

[[Page 852]]

    4. The ``focal plane array'' incorporates an active mechanism that 
forces it to be permanently inoperable when removed from the camera for 
which it was intended.
    Note: When necessary, details of the item will be provided, upon 
request, to the Bureau of Industry and Security in order to ascertain 
compliance with the conditions described in Note 4 above.
    b.5. Imaging cameras incorporating solid-state detectors specified 
by 6A002.a.1.

6A004 Optical equipment and components, 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: SeeSec. 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
STA: Paragraph (c)(2) of License Exception STA may not be used to ship 
any commodity in 6A004.c or .d to any of the eight destinations inSec. 
740.20(c)(2) of the EAR.
List of Items Controlled
Unit: Number
Related Controls: (1) For optical mirrors or `aspheric optical elements' 
specially designed for lithography equipment, see ECCN 3B001. (2) 
``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, Directorate of 
Defense Trade Controls (22 CFR part 121). (3) See also 6A994.
Related Definitions: 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.
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 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 cm\3\ in volume; or
    b.2. Exceeding 80 mm in diameter or length of major axis and 20 mm 
in thickness (depth);
    c. ``Space-qualified'' components for optical systems, as follows:
    c.1. Components lightweighted to less than 20% ``equivalent 
density'' compared with a solid blank of the same aperture and 
thickness;
    c.2. Raw substrates, processed 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. Components 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. Equipment 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. Equipment having steering, tracking, stabilization or resonator 
alignment bandwidths equal to or more than 100 Hz and an accuracy of 10 
[micro]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 [micro]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:
    e.1. Largest dimension of the optical-aperture greater than 400 mm;
    e.2. Surface roughness less than 1 nm (rms) for sampling lengths 
equal to or greater than 1 mm; and

[[Page 853]]

    e.3. Coefficient of linear thermal expansion's absolute magnitude 
less than 3 x 10-6/K at 25 [deg]C.
    Technical Note:
    1. [See Related Definitions section of this ECCN]
    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. Largest optical-aperture dimension less than 1 m and focal length 
to aperture ratio equal to or greater than 4.5:1;
    b. Largest optical-aperture dimension equal to or greater than 1 m 
and focal length to aperture ratio equal to or greater than 7:1;
    c. Designed as Fresnel, flyeye, stripe, prism or diffractive optical 
elements;
    d. 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. An x-ray optical element having inner mirror capabilities (e.g., 
tube-type mirrors).

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.2, b.2.b, b.3.a, b.4.b,
 b.6.b., c.1.b, c.2.b, d.3.c, and
 d.4.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.d.4.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.b.4.b 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.d.3.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  2.5kW; and
    (4) A pulse width < 200ns;
    (d) Argon ion ``lasers'' controlled by 6A005.a.2 having all of the 
following characteristics:
    (1) Operating at wavelengths between 400 and 515 nm; and
    (2) An average output power = 50 W;
    (e) Alexandrite ``lasers'' controlled by 6A005.c.2.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) Pulse-excited, Q-switched neodymium-doped (other than glass) 
``lasers'' controlled by 6A005.b.6.b having all of the following 
characteristics:
    (1) An output wavelength exceeding 1,000 nm, but not exceeding 1,100 
nm;
    (2) A pulse duration equal to or more than 1 ns; and
    (3) A single-transverse mode output having an average power 
exceeding 40 W or a multiple-transverse mode output having an average 
power exceeding 50 W;
    (g) Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.a.4, b.2, b.3, b.4, 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;
    (h) Tunable pulsed single-mode dye laser oscillators controlled by 
6A005.c.1.b or 6A005.c.2.b having all of the following characteristics:
    (1) Operating at wavelengths between 300 nm and 800 nm;
    (2) An average output power greater than 1 W;
    (3) A repetition rate greater than 1 kHz; and
    (4) Pulse width less than 100 ns;
    (i) Tunable pulsed dye laser amplifiers and oscillators controlled 
by 6A005.c.1.b or 6A005.c.2.b having all of the following 
characteristics:
    (1) Operating at wavelengths between 300 nm and 800 nm;
    (2) An average output power greater than 30 W;
    (3) A repetition rate greater than 1 kHz; and
    (4) Pulse width less than 100 ns;

    Note: NP controls do not apply to single mode oscillators.

License Exceptions
LVS: N/A for NP items $3000 for all other items
GBS: Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.b.6.c.2 (except

[[Page 854]]

6A005.b.6.c.2.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 
2kW, and operate in a pulse-excited, non-``Q-switched'' multiple-
transverse mode, or in a continuously excited, multiple-transverse mode; 
Dye and Liquid Lasers controlled by 6A005.c.1, c.2 and c.3, except for 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; CO ``lasers'' controlled by 6A005.d.2 
having a CW maximum rated single or multimode output power not exceeding 
10 kW; CO2 or CO/CO2 ``lasers'' controlled by 
6A005.d.3 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; 
CO2 ``lasers'' controlled by 6A005.d.3 that operate in CW 
multiple-transverse mode, and having a CW output power not exceeding 
15kW; and 6A005.f.1.
CIV: Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.b.6.c.2 (except 6A005.b.6.c.2.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 2kW, and operate in a pulse-excited, non-``Q-
switched'' multiple-transverse mode, or in a continuously excited, 
multiple-transverse mode; Dye and Liquid Lasers controlled by 6A005.c.1, 
c.2 and c.3, except for 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; CO 
``lasers'' controlled by 6A005.d.2 having a CW maximum rated single or 
multimode output power not exceeding 10 kW; CO2 or CO/
CO2 ``lasers'' controlled by 6A005.d.3 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; CO2 ``lasers'' 
controlled by 6A005.d.3 that operate in CW multiple-transverse mode, and 
having a CW output power not exceeding 15kW; and 6A005.f.1.
List of Items Controlled
Unit: Number
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, and ``lasers'' specifically designed, modified, or 
configured for military application 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: `Wall-plug efficiency' is defined as the ratio of 
laser output power (or ``average output power'') to total electrical 
input power required to operate the ``laser'', including the power 
supply/conditioning and thermal conditioning/heat exchanger.
Items:

    Note:
    1. Pulsed ``lasers'' include those that run in a continuous wave 
(CW) mode with pulses superimposed.
    2. Eximer, semiconductor, chemical, CO, CO 2, and non-
repetitive pulsed Nd:glass ``lasers'' are only specified by 6A005.d.
    3. 6A005 includes fiber ``lasers''.
    4. The control status of ``lasers'' incorporating frequency 
conversion (i.e., wavelength change) by means other than one ``laser'' 
pumping another ``laser'' is determined by applying the control 
parameters for both the output of the source ``laser'' and the 
frequency-converted optical output.
    5. 6A005 does not control ``lasers'' as follows:
    a. Ruby with output energy below 20 J;
    b. Nitrogen;
    c. Krypton.
    a. Non-``tunable'' continuous wave ``(CW) lasers'' having any of the 
following:
    a.1. Output wavelength less than 150 nm and output power exceeding 
1W;
    a.2. Output wavelength of 150 nm or more but not exceeding 520 nm 
and output power exceeding 30 W;
    Note: 6A005.a.2 does not control Argon ``lasers'' having an output 
power equal to or less than 50 W.
    a.3. Output wavelength exceeding 520 nm but not exceeding 540 nm and 
any of the following:
    a.3.a. Single transverse mode output and output power exceeding 50 
W; or
    a.3.b. Multiple transverse mode output and output power exceeding 
150 W;
    a.4. Output wavelength exceeding 540 nm but not exceeding 800 nm and 
output power exceeding 30 W;
    a.5. Output wavelength exceeding 800 nm but not exceeding 975 nm and 
any of the following:
    a.5.a. Single transverse mode output and output power exceeding 50 
W; or
    a.5.b. Multiple transverse mode output and output power exceeding 80 
W;

[[Page 855]]

    a.6. Output wavelength exceeding 975 nm but not exceeding 1,150 nm 
and any of the following;
    a.6.a. Single transverse mode output and any of the following:
    a.6.a.1. `Wall-plug efficiency' exceeding 12% and output power 
exceeding 100 W; or
    a.6.a.2. Output power exceeding 150 W; or
    a.6.b. Multiple transverse mode output and any of the following:
    a.6.b.1. `Wall-plug efficiency' exceeding 18% and output power 
exceeding 500 W;
    or
    a.6.b.2. Output power exceeding 2 kW;
    Note: 6A005.a.6.b does not control multiple transverse mode, 
industrial ``lasers'' with output power exceeding 2kW and not exceeding 
6 kW with a total mass greater than 1,200 kg. For the purpose of this 
note, total mass includes all components required to operate the 
``laser'', e.g., ``laser'', power supply, heat exchanger, but excludes 
external optics for beam conditioning and/or delivery.
    a.7. Output wavelength exceeding 1,150 nm but not exceeding 1,555 nm 
and any of the following:
    a.7.a. Single transverse mode and output power exceeding 50 W; or
    a.7.b. Multiple transverse mode and output power exceeding 80 W; or
    a.8. Output wavelength exceeding 1,555 nm and output power exceeding 
1 W;
    b. Non-``tunable'' ``pulsed lasers'' having any of the following;
    b.1. Output wavelength less than 150 nm and any of the following:
    b.1.a. Output energy exceeding 50 mJ per pulse and ``peak power'' 
exceeding 1 W; or
    b.1.b. ``Average output power'' exceeding 1 W;
    b.2. Output wavelength of 150 nm or more but not exceeding 520 nm 
and any of the following:
    b.2.a. Output energy exceeding 1.5 J per pulse and ``peak power'' 
exceeding 30 W; or
    b.2.b. ``Average output power'' exceeding 30 W;
    Note: 6A005.b.2.b does not control Argon ``lasers'' having an 
``average output power'' equal to or less than 50 W.
    b.3. Output wavelength exceeding 520 nm, but not exceeding 540 nm 
and any of the following:
    b.3.a. Single transverse mode output and any of the following:
    b.3.a.1. Output energy exceeding 1.5 J per pulse and ``peak power'' 
exceeding 50 W; or
    b.3.a.2. ``Average output power'' exceeding 50 W; or
    b.3.b. Multiple transverse mode output and any of the following:
    b.3.b.1. Output energy exceeding 1.5 J per pulse and ``peak power'' 
exceeding 150 W;
    or
    b.3.b.2. ``Average output power'' exceeding 150 W;
    b.4. Output wavelength exceeding 540 nm but not exceeding 800 nm and 
any of the following:
    b.4.a. Output energy exceeding 1.5 J per pulse and ``peak power'' 
exceeding 30 W; or
    b.4.b. ``Average output power'' exceeding 30 W;
    b.5. Output wavelength exceeding 800 nm but not exceeding 975 nm and 
any of the following:
    b.5.a. ``Pulse duration'' not exceeding 1 [micro]s and any of the 
following:
    b.5.a.1. Output energy exceeding 0.5 J per pulse and ``peak power'' 
exceeding 50 W;
    b.5.a.2. Single transverse mode output and ``average output power'' 
exceeding 20 W;
    or
    b.5.a.3. Multiple transverse mode output and ``average output 
power'' exceeding 50 W; or
    b.5.b. ``Pulse duration'' exceeding 1 [micro]s and any of the 
following:
    b.5.b.1. Output energy exceeding 2 J per pulse and ``peak power'' 
exceeding 50 W;
    b.5.b.2. Single transverse mode output and ``average output power'' 
exceeding 50 W; or
    b.5.b.3. Multiple transverse mode output and ``average output 
power'' exceeding 80 W.
    b.6. Output wavelength exceeding 975 nm but not exceeding 1,150 nm 
and any of the following:
    b.6.a. ``Pulse duration'' of less than 1 ns and any of the 
following:
    b.6.a.1. Output ``peak power'' exceeding 5 GW per pulse;
    b.6.a.2. ``Average output power'' exceeding 10 W; or
    b.6.a.3. Output energy exceeding 0.1 J per pulse;
    b.6.b. ``Pulse duration'' equal to or exceeding 1 ns but not 
exceeding 1 [micro]s and any of the following:
    b.6.b.1. Single transverse mode output and any of the following:
    b.6.b.1.a. ``Peak power'' exceeding 100 MW;
    b.6.b.1.b. ``Average output power'' exceeding 20 W limited by design 
to a maximum pulse repetition frequency less than or equal to 1 kHz;
    b.6.b.1.c. `Wall-plug efficiency' exceeding 12%, ``average output 
power'' exceeding 100 W and capable of operating at a pulse repetition 
frequency greater than 1 kHz;
    b.6.b.1.d. ``Average output power'' exceeding 150 W and capable of 
operating at a pulse repetition frequency greater than 1 kHz; or
    b.6.b.1.e. Output energy exceeding 2 J per pulse; or
    b.6.b.2. Multiple transverse mode output and any of the following:
    b.6.b.2.a. ``Peak power'' exceeding 400 MW;
    b.6.b.2.b. `Wall-plug efficiency' exceeding 18% and ``average output 
power'' exceeding 500 W;
    b.6.b.2.c. ``Average output power'' exceeding 2 kW; or

[[Page 856]]

    b.6.b.2.d. Output energy exceeding 4 J per pulse; or
    b.6.c. ``Pulse duration'' exceeding 1 [micro]s and any of the 
following:
    b.6.c.1. Single transverse mode output and any of the following:
    b.6.c.1.a. ``Peak power'' exceeding 500 kW;
    b.6.c.1.b. `Wall-plug efficiency' exceeding 12% and ``average output 
power'' exceeding 100 W; or
    b.6.c.1.c. ``Average output power'' exceeding 150 W; or
    b.6.c.2. Multiple transverse mode output and any of the following:
    b.6.c.2.a. ``Peak power'' exceeding 1 MW;
    b.6.c.2.b. `Wall-plug efficiency' exceeding 18% and ``average output 
power'' exceeding 500 W; or
    b.6.c.2.c. ``Average output power'' exceeding 2 kW;
    b.7. Output wavelength exceeding 1,150 nm but not exceeding 1,555 nm 
and any of the following:
    b.7.a. ``Pulse duration'' not exceeding 1 [micro]s and any of the 
following:
    b.7.a.1. Output energy exceeding 0.5 J per pulse and ``peak power'' 
exceeding 50 W;
    b.7.a.2. Single transverse mode output and ``average output power'' 
exceeding 20 W; or
    b.7.a.3. Multiple transverse mode output and ``average output 
power'' exceeding 50 W; or
    b.7.b. ``Pulse duration'' exceeding 1 [micro]s and any of the 
following:
    b.7.b.1. Output energy exceeding 2 J per pulse and ``peak power'' 
exceeding 50 W;
    b.7.b.2. Single transverse mode output and ``average output power'' 
exceeding 50 W; or
    b.7.b.3. Multiple transverse mode output and ``average output 
power'' exceeding 80 W; or
    b.8. Output wavelength exceeding 1,555 nm and any of the following:
    b.8.a. Output energy exceeding 100 mJ per pulse and ``peak power'' 
exceeding 1 W; or
    b.8.b. ``Average output power'' exceeding 1 W;
    c. ``Tunable'' lasers having any of the following:
    Note: 6A005.c includes titanium-sapphire (Ti: 
Al203), thulium-YAG (Tm: YAG), thulium-YSGG 
(Tm:YSGG), alexandrite (Cr:BeAl204), color center 
``lasers'', dye ``lasers'', and liquid ``lasers''.
    c.1. Output wavelength less than 600 nm and any of the following:
    Note: 6A005.c.1 does not apply to dye lasers or other liquid lasers, 
having a multimode output and a wavelength of 150 nm or more but not 
exceeding 600 nm and all of the following:
    1. Output energy less than 1.5 J per pulse or a ``peak power'' less 
than 20 W; and
    2. Average or CW output power less than 20 W.
    c.1.a. Output energy exceeding 50 mJ per pulse and ``peak power'' 
exceeding 1 W; or
    c.1.b. Average or CW output power exceeding 1W;
    c.2. Output wavelength of 600 nm or more but not exceeding 1,400 nm, 
and any of the following:
    c.2.a. Output energy exceeding 1 J per pulse and ``peak power'' 
exceeding 20 W; or
    c.2.b. Average or CW output power exceeding 20 W; or
    c.3. Output wavelength exceeding 1,400 nm and any of the following:
    c.3.a. Output energy exceeding 50 mJ per pulse and ``peak power'' 
exceeding 1 W; or
    c.3.b. Average or CW output power exceeding 1 W;
    d. Other ``lasers'', not controlled by 6A005.a, 6A005.b, or 6A005.c 
as follows:
    d.1. Semiconductor ``lasers'' as follows:
    Note: 1. 6A005.d.1 includes semiconductor ``lasers'' having optical 
output connectors (e.g., fiber optic pigtails).
    2. The control status of semiconductor ``lasers'' specially designed 
for other equipment is determined by the control status of the other 
equipment.
    d.1. Semiconductor ``lasers'' as follows:
    d.1.a. Individual single-transverse mode semiconductor ``lasers'' 
having any of the following:
    d.1.a.1. Wavelength equal to or less than 1,510 nm and average or CW 
output power, exceeding 1.5 W; or
    d.1.a.2. Wavelength greater than 1,510 nm and average or CW output 
power, exceeding 500 mW;
    d.1.b. Individual, multiple-transverse mode semiconductor ``lasers'' 
having any of the following:
    d.1.b.1. Wavelength of less than 1,400 nm and average or CW output 
power, exceeding 15 W;
    d.1.b.2. Wavelength equal to or greater than 1,400 nm and less than 
1,900 nm and average or CW output power, exceeding 2.5 W; or
    d.1.b.3. Wavelength equal to or greater than 1,900 nm and average or 
CW output power, exceeding 1 W;
    d.1.c. Individual semiconductor ``laser'' `bars' having any of the 
following:
    d.1.c.1. Wavelength of less than 1,400 nm and average or CW output 
power, exceeding 100 W;
    d.1.c.2. Wavelength equal to or greater than 1,400 nm and less than 
1,900 nm and average or CW output power, exceeding 25 W; or
    d.1.c.3. Wavelength equal to or greater than 1,900 nm and average or 
CW output power, exceeding 10 W;
    d.1.d. Semiconductor ``laser'' `stacked arrays' (two-dimensional 
arrays) having any of the following:
    d.1.d.1. Wavelength less than 1,400 nm and having any of the 
following:
    d.1.d.1.a. Average or CW total output power less than 3 kW and 
having average or CW

[[Page 857]]

output `power density' greater than 500 W/cm\2\;
    d.1.d.1.b. Average or CW total output power equal to or exceeding 3 
kW but less than or equal to 5 kW, and having average or CW output 
`power density' greater than 350W/cm\2\;
    d.1.d.1.c. Average or CW total output power exceeding 5 kW;
    d.1.d.1.d. Peak pulsed `power density' exceeding 2,500 W/cm\2\; or
    d.1.d.1.e. Spatially coherent average or CW total output power, 
greater than 150 W;
    d.1.d.2. Wavelength greater than or equal to 1,400 nm but less than 
1,900 nm, and having any of the following:
    d.1.d.2.a. Average or CW total output power less than 250 W and 
average or CW output `power density' greater than 150 W/cm\2\;
    d.1.d.2.b. Average or CW total output power equal to or exceeding 
250 W but less than or equal to 500 W, and having average or CW output 
`power density' greater than 50W/cm\2\;
    d.1.d.2.c. Average or CW total output power exceeding 500 W;
    d.1.d.2.d. Peak pulsed `power density' exceeding 500 W/cm\2\; or
    d.1.d.2.e. Spatially coherent average or CW total output power, 
exceeding 15 W;
    d.1.d.3. Wavelength greater than or equal to 1,900 nm and having any 
of the following:
    d.1.d.3.a. Average or CW output `power density' greater than 50 W/
cm\2\;
    d.1.d.3.b. Average or CW output power greater than 10 W; or
    d.1.d.3.c. Spatially coherent average or CW total output power, 
exceeding 1.5 W; or
    d.1.d.4. At least one ``laser'' `bar' specified by 6A005.d.1.c;
    Technical Note: For the purposes of 6A005.d.1.d, `power density' 
means the total ``laser'' output power divided by the emitter surface 
area of the `stacked array'.
    d.1.e. Semiconductor ``laser'' `stacked arrays', other than those 
specified by 6A005.d.1.d, having all of the following:
    d.1.e.1. Specially designed or modified to be combined with other 
`stacked arrays' to form a larger `stacked array'; and
    d.1.e.2. Integrated connections, common for both electronics and 
cooling;
    Note 1: 'Stacked arrays', formed by combining semiconductor 
``laser'' `stacked arrays' specified by 6A005.d.1.e, that are not 
designed to be further combined or modified are specified by 
6A005.d.1.d.
    Note 2: 'Stacked arrays', formed by combining semiconductor 
``laser'' `stacked arrays' specified by 6A005.d.1.e, that are designed 
to be further combined or modified are specified by 6A005.d.1.e.
    Note 3: 6A005.d.1.e does not apply to modular assemblies of single 
`bars' designed to be fabricated into end-to-end stacked linear arrays.
    Technical Notes: 1. Semiconductor ``lasers'' are commonly called 
``laser'' diodes.
    2. A `bar' (also called a semiconductor ``laser'' `bar', a ``laser'' 
diode `bar' or diode `bar') consists of multiple semiconductor 
``lasers'' in a one-dimensional array.
    3. A `stacked array' consists of multiple `bars' forming a two-
dimensional array of semiconductor ``lasers''.
    d.2. Carbon monoxide (CO) ``lasers'' having any of the following:
    d.2.a. Output energy exceeding 2 J per pulse and ``peak power'' 
exceeding 5 kW; or
    d.2.b. Average or CW output power, exceeding 5 kW;
    d.3. Carbon dioxide (CO2) ``lasers'' having any of the 
following:
    d.3.a. CW output power exceeding 15 kW;
    d.3.b. Pulsed output with ``pulse duration'' exceeding 10 [micro]s 
and any of the following:
    d.3.b.1. ``Average output power'' exceeding 10 kW; or
    d.3.b.2. ``Peak power'' exceeding 100 kW; or
    d.3.c. Pulsed output with a ``pulse duration'' equal to or less than 
10 [micro]s and any of the following:
    d.3.c.1. Pulse energy exceeding 5 J per pulse; or
    d.3.c.2. ``Average output power'' exceeding 2.5 kW;
    d.4. Excimer ``lasers'' having any of the following:
    d.4.a. Output wavelength not exceeding 150 nm and any of the 
following:
    d.4.a.1. Output energy exceeding 50 mJ per pulse; or
    d.4.a.2. ``Average output power'' exceeding 1 W;
    d.4.b. Output wavelength exceeding 150 nm but not exceeding 190 nm 
and any of the following:
    d.4.b.1. Output energy exceeding 1.5 J per pulse; or
    d.4.b.2. ``Average output power'' exceeding 120 W;
    d.4.c. Output wavelength exceeding 190 nm but not exceeding 360 nm 
and any of the following:
    d.4.c.1. Output energy exceeding 10 J per pulse; or
    d.4.c.2. ``Average output power'' exceeding 500 W; or
    d.4.d. Output wavelength exceeding 360 nm and any of the following:
    d.4.d.1. Output energy exceeding 1.5 J per pulse; or
    d.4.d.2. ``Average output power'' exceeding 30 W;
    Note: For excimer ``lasers'' specially designed for lithography 
equipment, see 3B001.
    d.5. ``Chemical lasers'', as follows:
    d.5.a. Hydrogen Fluoride (HF) ``lasers'';
    d.5.b. Deuterium Fluoride (DF) ``lasers'';
    d.5.c. ``Transfer lasers'', as follows:
    d.5.c.1. Oxygen Iodine (O2-I) ``lasers'';
    d.5.c.2. Deuterium Fluoride-Carbon dioxide (DF-CO2) ``lasers'';

[[Page 858]]

    d.6. ``Non-repetitive pulsed'' Neodymium (Nd) glass ``lasers'', 
having any of the following:
    d.6.a. A ``pulse duration'' not exceeding 1 [mu]s and an output 
energy exceeding 50 J per pulse; or
    d.6.b. A ``pulse duration'' exceeding 1 [mu]s and an output energy 
exceeding 100 J per pulse;
    Note: ``Non-repetitive pulsed'' refers to ``lasers'' that produce 
either a single output pulse or that have a time interval between pulses 
exceeding one minute.
    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;
    g. ``Laser acoustic detection equipment'' having all of the 
following:
    g.1. CW laser output power greater than or equal to 20 mW;
    g.2. Laser frequency stability equal to or better (less) than 10 
MHz;
    g.3. Laser wavelengths equal to or exceeding 1,000 nm but not 
exceeding 2,000 nm;
    g.4. Optical system resolution better (less) than 1 nm; and
    g.5. Optical Signal to Noise ratio equal or exceeding to 10\3\.
    Technical Note: ``Laser acoustic detection equipment'' is sometimes 
referred to as a Laser Microphone or Particle Flow Detection Microphone.

6A006 ``Magnetometers'', ``magnetic gradiometers'', ``intrinsic magnetic 
          gradiometers'', underwater electric field sensors, 
          ``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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
LVS: $1500, N/A for 6A006.a.1; ``Magnetometers'' and subsystems defined 
in 6A006.a.2 using optically pumped or nuclear precession (proton/
Overhauser) having a ``sensitivity'' lower (better) than 2 pT (rms) per 
square root Hz; 6A006.d, and 6A006.e.
GBS: N/A
CIV: N/A

    STA: License Exception STA may not be used to ship any commodity in:
    6A006.a.1; or
    6A006.a.2; or
    6A006.c.1 ``Magnetic gradiometers'' using multiple ``magnetometers'' 
specified by 6A006.a.1 or 6.A006.a.2; or 6A006.d or .e (only for 
underwater receivers incorporating magnetometers specified in 6A006.a.1 
or 6A006.a.2) to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR
List of Items Controlled
Unit: $ value
Related Controls: See also 6A996. This entry does not control 
instruments specially designed for fishery applications or biomagnetic 
measurements for medical diagnostics.
Related Definitions: N/A
Items: a. ``Magnetometers'' and subsystems, as follows:
    a.1. ``Magnetometers'' using ``superconductive'' (SQUID) 
``technology'' and having any of the following:
    a.1.a. SQUID systems designed for stationary operation, without 
specially designed subsystems designed to reduce in-motion noise, and 
having a `sensitivity' equal to or lower (better) than 50 fT (rms) per 
square root Hz at a frequency of 1 Hz; or
    a.1.b. SQUID systems having an in-motion-magnetometer `sensitivity' 
lower (better) than 20 pT (rms) per square root Hz at a frequency of 1 
Hz and specially designed to reduce in-motion noise;
    a.2. ``Magnetometers'' using optically pumped or nuclear precession 
(proton/

[[Page 859]]

Overhauser) ``technology'' having a `sensitivity' lower (better) than 20 
pT (rms) per square root Hz at a frequency of 1 Hz;
    a.3. ``Magnetometers'' using fluxgate ``technology'' having a 
`sensitivity' equal to or lower (better) than 10 pT (rms) per square 
root Hz at a frequency of 1 Hz;
    a.4. Induction coil ``magnetometers'' having a `sensitivity' lower 
(better) than any of the following:
    a.4.a. 0.05 nT (rms)/square root Hz at frequencies of less than 1 
Hz;
    a.4.b. 1 x 10-3 nT (rms)/square root Hz at frequencies of 
1 Hz or more but not exceeding 10 Hz; or
    a.4.c. 1 x 10-4 nT (rms)/square root Hz at frequencies 
exceeding 10 Hz;
    a.5. Fiber optic ``magnetometers'' having a `sensitivity' lower 
(better) than 1 nT (rms) per square root Hz;
    b. Underwater electric field sensors having a `sensitivity' lower 
(better) than 8 nanovolt per meter per square root Hz when measured at 1 
Hz;
    c. ``Magnetic gradiometers'' as follows:
    c.1. ``Magnetic gradiometers'' using multiple ``magnetometers'' 
controlled by 6A006.a;
    c.2. Fiber optic ``intrinsic magnetic gradiometers'' having a 
magnetic gradient field `sensitivity' lower (better) than 0.3 nT/m (rms) 
per square root Hz;
    c.3. ``Intrinsic magnetic gradiometers'', using ``technology'' other 
than fiber-optic ``technology'', having a magnetic gradient field 
`sensitivity' lower (better) than 0.015 nT/m (rms) per square root Hz;
    d. ``Compensation systems'' for magnetic and underwater electric 
field sensors resulting in a performance equal to or better than the 
control parameters of 6A006.a, 6A006.b, and 6A006.c; and
    e. Underwater electromagnetic receivers incorporating magnetic field 
sensors specified by 6A006.a or underwater electric field sensors 
specified by 6A006.b.
    Technical Note: For the purposes of 6A006, `sensitivity' (noise 
level) is the root mean square of the device-limited noise floor which 
is the lowest signal that can be measured.

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 and having a 
static accuracy of less (better) than 10 [micro]gal;

    Note: 6A007.a does not control ground gravity meters of the quartz 
element (Worden) type.
    b. Gravity meters designed for mobile platforms and 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 (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: SeeSec. 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.
GBS: Yes, for 6A008.b, .c, and l.1 only.
CIV: Yes, for 6A008.b, .c, and l.1 only.
STA: License Exception STA may not be used to ship any commodity in 
6A008.d, 6A008.h or 6A008.k to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
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:
    Note: 6A008 does not control:


[[Page 860]]


    --Secondary surveillance radar (SSR);
    --Civil Automotive Radar;
    --Displays or monitors used for air traffic control (ATC);
    --Meteorological (weather) radar;
    --Precision Approach Radar (PAR) equipment conforming to ICAO 
standards and employing electronically steerable linear (1-dimensional) 
arrays or mechanically positioned passive antennae.
    a. Operating at frequencies from 40 GHz to 230 GHz and having any of 
the following:
    a.1. An ``average output power'' exceeding 100 mW; or
    a.2. Locating accuracy of 1 m or less (better) in range and 0.2 
degree or less (better) in azimuth;
    b. 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 array antennae;
    f. Capable of heightfinding non-cooperative targets;
    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 and 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, and having all of the following:
    1. A maximum ``instrumented range'' of 500 km or less;
    2. Configured so that radar target data can be transmitted only one 
way from the radar site to one or more civil ATC centers;
    3. Contains no provisions for remote control of the radar scan rate 
from the en route ATC center; and
    4. Permanently installed;
    c. Weather balloon tracking radars.
    j. Being ``laser'' radar or Light Detection and Ranging (LIDAR) 
equipment and having any of the following:
    j.1. ``Space-qualified'';
    j.2. Employing coherent heterodyne or homodyne detection techniques 
and having an angular resolution of less (better) than 20 [micro]rad 
(microradians); or
    j.3. Designed for carrying out airborne bathymetric littoral surveys 
to International Hydrographic Organization (IHO) Order 1a Standard (5th 
Edition February 2008) for Hydrographic Surveys or better, and using one 
or more lasers with a wavelength exceeding 400 nm but not exceeding 600 
nm;
    Note 1: LIDAR equipment specially designed for surveying is only 
specified by 6A008.j.3.
    Note 2: 6A008.j does not apply to LIDAR equipment specially designed 
for meteorological observation.
    Note 3: Parameters in the IHO Order 1a Standard 5th Edition February 
2008 are summarized as follows:
    Horizontal Accuracy (95% Confidence Level) = 5 m + 5% of depth.
    Depth Accuracy for Reduced Depths (95% Confidence Level) = [radic](a\2\+(b*d)\2\) where:
a = 0.5 m = constant depth error, i.e. the sum of all constant depth 
          errors
b = 0.013 = factor of depth dependant error
b*d = depth dependant error, i.e. the sum of all depth dependant errors
d = depth
Feature Detection = Cubic features  2 m in depths up to 40 m; 
          10% of depth beyond 40 m.

    k. Having ``signal processing'' sub-systems using ``pulse 
compression'' and having 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 and having 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; or
    Note: 6A008.l.1 does not control conflict alert capability in ATC 
systems, or marine or harbor radar.
    l.2. [Reserved]
    l.3. [Reserved]
    l.4. Configured to provide superposition and correlation, or fusion, 
of target data within six seconds from two or more ``geographically 
dispersed'' radar sensors to improve the aggregate performance beyond 
that of any single sensor specified by 6A008.f, or 6A008.i.
    N.B.: See also the U.S. Munitions List (22 CFR part 121).
    Note: 6A008.l.4 does not apply to systems, equipment and assemblies 
designed for marine traffic control.

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

[[Page 861]]

          ``missiles,'' designed or rated to withstand radiation levels 
          which meet or exceed a total irradiation dose of 5x10\5\ rads 
          (silicon).
License Requirements
Reason for Control: MT, AT

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               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 7x10-6 m/s\2\ (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

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               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 rockets, missiles, or 
unmanned aerial vehicles capable of achieving a ``range'' equal to or 
greater than 300 km, as follows:
    b.1. Tracking systems which use a code translator installed on the 
rocket or unmanned aerial vehicle in conjunction with either surface or 
airborne references or navigation satellite systems to provide real-time 
measurements of in-flight position and velocity;

[[Page 862]]

    b.2. Range instrumentation radars including associated optical/
infrared trackers with all of the following capabilities:
    b.2.a. Angular resolution better than 1.5 milliradians;
    b.2.b. Range of 30 km or greater with a range resolution better than 
10 m rms;
    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

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               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

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               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 0B001.g.5, 0B001.h.6, or 6A005, as follows (see 
          List of Items Controlled).
License Requirements
Reason for Control: NP, AT

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               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 ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCNs 6A005 and 6A995. (3) See 
ECCN 6A005.a.2 for additional controls on argon

[[Page 863]]

ion lasers; See ECCN 6A005.b.6.b for additional controls on neodymium-
doped lasers. (4) ``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).
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 600 nm and 800 nm;
    b.2. Having an average output greater than 1 W;
    b.3 A repetition rate greater than 1 kHz; and
    b.4. Pulse width less than 100 ns;
    c. [Reserved]
    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. Neodymium-doped (other than glass) lasers with an output 
wavelength between 1000 and 1100 nm having either of the following:
    f.1. Pulse-excited and Q-switched with a pulse duration equal to or 
greater than 1 ns, and having either of the following:
    f.1.a. A single-transverse mode output with an average output power 
greater than 40 W; or
    f.1.b. A multiple-transverse mode output with an average output 
power greater than 50 W; or
    f.2. Incorporating frequency doubling to give an output wavelength 
between 500 and 550 nm with an average output power of greater than 40 
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

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               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

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               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

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               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 864]]


6A992 Optical Sensors, not controlled by 6A002.
License Requirements
Reason for Control: AT, RS

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               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

RS applies to entire entry. A license is required for items controlled 
by this entry for export or reexport to Iraq or transfer within Iraq for 
regional stability reasons. The Commerce Country Chart is not designed 
to determine RS license requirements for this entry. See Sec.Sec. 
742.6 and 746.3 of the EAR for additional information.
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number; 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.

6A993 Cameras, not controlled by 6A003 or 6A203, as follows (see List of 
          Items Controlled).
License Requirements
    Reason for Control: AT

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               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: a. Cameras that meet the criteria of Note 3 to 6A003.b.4.
    b. [Reserved]

6A994 Optics, not controlled by 6A004.
License Requirements
Reason for Control: AT

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               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'' (see List of Items Controlled).
License Requirements
Reason for Control: AT

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               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A

[[Page 865]]

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:
    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. Ruby ``lasers'' having an output energy exceeding 20 J per pulse;
    d. Non-``tunable'' ``pulsed lasers'' having an output wavelength 
exceeding 975 nm but not exceeding 1,150 nm and having any of the 
following:
    d.1. A ``pulse duration'' equal to or exceeding 1 ns but not 
exceeding 1 [micro]s, and having any of the following:
    d.1.a. A single transverse mode output and having any of the 
following:
    d.1.a.1. A `wall-plug efficiency' exceeding 12% and an ``average 
output power'' exceeding 10 W and capable of operating at a pulse 
repetition frequency greater than 1kHz; or
    d.1.a.2. An ``average output power'' exceeding 20 W; or
    d.1.b. A multiple transverse mode output and having any of the 
following:
    d.1.b.1. A `wall-plug efficiency' exceeding 18% and an ``average 
output power'' exceeding 30 W;
    d.1.b.2. A ``peak power'' exceeding 200 MW; or
    d.1.b.3. An ``average output power'' exceeding 50 W; or
    d.2. A ``pulse duration'' exceeding 1 [micro]s and having any of the 
following:
    d.2.a. A single transverse mode output and having any of the 
following:
    d.2.a.1. A `wall-plug efficiency' exceeding 12% and an ``average 
output power'' exceeding 10 W and capable of operating at a pulse 
repetition frequency greater than 1 kHz; or
    d.2.a.2. An ``average output power'' exceeding 20 W; or
    d.2.b. A multiple transverse mode output and having any of the 
following:
    d.2.b.1. A `wall-plug efficiency' exceeding 18% and an ``average 
output power'' exceeding 30 W; or
    d.2.b.2. An ``average output power'' exceeding 500 W;
    e. Non-``tunable'' continuous wave ``(CW) lasers'', having an output 
wavelength exceeding 975 nm but not exceeding 1,150 nm and having any of 
the following:
    e.1. A single transverse mode output and having any of the 
following:
    e.1.a. A `wall-plug efficiency' exceeding 12% and an ``average 
output power'' exceeding 10 W and capable of operating at a pulse 
repetition frequency greater than 1 kHz; or
    e.1.b. An ``average output power'' exceeding 50 W; or
    e.2. A multiple transverse mode output and having any of the 
following:
    e.2.a. A `wall-plug efficiency' exceeding 18% and an ``average 
output power'' exceeding 30 W; or
    e.2.b. An ``average output power'' exceeding 500 W;

    Note: 6A995.e.2.b does not control multiple transverse mode, 
industrial ``lasers'' with output power less than or equal to 2kW with a 
total mass greater than 1,200kg. For the purpose of this note, total 
mass includes all components required to operate the ``laser,'' e.g., 
``laser,'' power supply, heat exchanger, but excludes external optics 
for beam conditioning and/or delivery.

    f. Non-``tunable'' ``lasers'', having a wavelength exceeding 1,400 
nm, but not exceeding 1555 nm and having any of the following:
    f.1. An output energy exceeding 100 mJ per pulse and a pulsed ``peak 
power'' exceeding 1 W; or
    f.2. An average or CW output power exceeding 1 W.
    g. Free electron ``lasers''.

6A996 ``Magnetometers'' not controlled by ECCN 6A006, 
          ``Superconductive'' electromagnetic sensors, and specially 
          designed components therefor, as follows (see List of Items 
          Controlled).
License Requirements
Reason for Control: AT

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               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

[[Page 866]]

Items: a. ``Magnetometers'', n.e.s., having a `sensitivity' lower 
(better) than 1.0 nT (rms) per square root Hz.
    Technical Note: For the purposes of 6A996, `sensitivity' (noise 
level) is the root mean square of the device-limited noise floor which 
is the lowest signal that can be measured.
    b. ``Superconductive'' electromagnetic sensors, components 
manufactured from ``superconductive'' materials:
    b.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));
    b.2. Designed for sensing electromagnetic field variations at 
frequencies of 1 KHz or less; and
    b.3. Having any of the following characteristics:
    b.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;
    b.3.b. Designed to operate with a magnetic field slew rate exceeding 
1 x 10\6\ magnetic flux quanta per second;
    b.3.c. Designed to function without magnetic shielding in the 
earth's ambient magnetic field; or
    b.3.d. Having a temperature coefficient less (smaller) than 0.1 
magnetic flux quantum/K.

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. SeeSec. 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.

              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,

[[Page 867]]

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

    STA: License Exception STA may not be used to ship any commodity in 
this entry to any of the eight destinations listed inSec. 740.20(c)(2) 
of the EAR.
    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
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 rockets, 
          missiles, or unmanned aerial vehicles capable of achieving a 
          ``range'' equal to or greater than 300 km 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: Number
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''.

                              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:

[[Page 868]]

    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 and having 
any of the following:
    a.1. A volume greater than 100 cm\3\; or
    a.2. A diameter greater than 80 mm and a thickness of 20 mm or more;
    b. Boules of any of the following electro-optic materials:
    b.1. Potassium titanyl arsenate (KTA) (CAS 59400-80-5);
    b.2. Silver gallium selenide (AgGaSe2) (CAS 12002-67-4); 
or
    b.3. Thallium arsenic selenide (Tl3AsSe3, also 
known as TAS) (CAS 16142-89-5);
    c. Non-linear optical materials having all of the following:
    c.1. Third order susceptibility (chi 3) of 10-6 m\2\/V\2\ 
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) (CAS 7783-64-4) and hafnium 
fluoride (HfF4) (CAS 13709-52-9) and 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
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

[[Page 869]]

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: SeeSec. 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 6A004.c or 
d, 6A008.d, h, or k, or 6B008.
STA: License Exception STA may not be used to ship or transmit 
``software'' specially designed for the ``development'' or 
``production'' of equipment specified by ECCNs 6A004.c, 6A004.d, 
6A008.d, 6A008.h, 6A008.k, or 6B008 to any of the eight destinations 
listed inSec. 740.20(c)(2) of the EAR
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, Directorate of Defense 
Trade Controls (22 CFR part 121). See also 6D991, and ECCN 6E001 
(``development'') 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.
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, Directorate 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

[[Page 870]]

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, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1
RS applies to paragraph c..............  RS Column 1.
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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 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.
STA: License Exception STA may not be used to ship transmit software in 
6D003.a to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
List of Items Controlled
Unit: $ value
Related Controls: See also 6D103 and 6D993
Related Definitions: N/A
Items:
    ACOUSTICS
    a. ``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;
    a.5. ``Software'' or ``source code'', specially designed for all of 
the following:
    a.5.a. ``Real time processing'' of acoustic data from sonar systems 
controlled by 6A001.a.1.e; and
    a.5.b. Automatically detecting, classifying and determining the 
location of divers or swimmers;
    N.B.: For diver detection ``software'' or ``source code'', specially 
designed or modified for military use, see the U.S. Munitions List of 
the International Traffic in Arms Regulations (ITAR) (22 CFR part 121).
    b. Optical sensors. None.
    CAMERAS
    c. ``Software'' designed or modified for cameras incorporating 
``focal plane arrays'' specified by 6A002.a.3.f and designed or modified 
to remove a frame rate restriction and allow the camera to exceed the 
frame rate specified in 6A003.b.4 Note 3.a;
    d. Optics. None.
    e. Lasers. None
    MAGNETIC AND ELECTRIC FIELD SENSORS
    f. ``Software'' as follows:
    f.1. ``Software'' specially designed for magnetic and electric field 
``compensation systems'' for magnetic sensors designed to operate on 
mobile platforms;
    f.2. ``Software'' specially designed for magnetic and electric field 
anomaly detection on mobile platforms;
    f.3. ``Software'' specially designed for ``real time processing'' of 
electromagnetic data using underwater electromagnetic receivers 
specified by 6A006.e;
    f.4. ``Source code'' for ``real time processing'' of electromagnetic 
data using underwater electromagnetic receivers specified by 6A006.e;
    GRAVIMETERS
    g. ``Software'' specially designed to correct motional influences of 
gravity meters or gravity gradiometers;
    RADAR
    h. ``Software'' as follows:
    h.1. Air Traffic Control (ATC) ``software'' application ``programs'' 
designed to be hosted on general purpose computers located at Air 
Traffic Control centers and capable of accepting radar target data from 
more than four primary radars;
    h.2. ``Software'' for the design or ``production'' of radomes and 
having all of the following:
    h.2.a. Specially designed to protect the ``electronically steerable 
phased array antennae'' controlled by 6A008.e.; and
    h.2.b. Resulting 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

[[Page 871]]



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

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
Items: 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.a.1.d, 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.a.1.d 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: $ 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 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.
NP applies to ``technology'' for         NP Column 1.
 equipment controlled by 6A003, 6A005,
 6A202,6A203, 6A205, 6A225, 6A226 or
 6D001 for NP reasons.

[[Page 872]]

 
RS applies to ``technology'' for         RS Column 1.
 equipment controlled by 6A002.a.1,
 .a.2, .a.3, or .c, 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         SeeSec.  746.1(b) for UN
 equipment Controlled by 6A002 or 6A003   controls.
 for UN reasons.
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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; or
    (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.1.b, 6A001.a.1.e, 
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5, 
6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.d, 6A001.a.2.e., 6A002.a.1.a, 
6A002.a.1.b, 6A002.a.1.c, 6A002.a.2.a, 6A002.a.2.b, 6A002.a.3, 6A002.b, 
6A002.c, 6A003.b.3, 6A003.b.4, 6A004.c, 6A004.d, 6A006.a.2, 6A006.c.1, 
6A006.d, 6A006.e, 6A008.d, 6A008.h, 6A008.k, 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 6B008, or 6D003.a.
STA: License Exception STA may not be used to ship or transmit any 
technology in this entry to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
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, Directorate 
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 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, or .c, 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         SeeSec.  746.1(b) for UN
 equipment controlled by 6A002 or 6A003   controls.
 for UN reasons..
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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; 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 ``technology'' for the ``production'' of the 
following: (a) Items controlled by 6A001.a.1.b, 6A001.a.1.e, 
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5, 
6A001.a.2.a.6, 6A001.a.2.b, 6A002.a.3, 6A002.b, 6A002.c, 6A003.b.3, 
6A003.b.4, 6A004.c, 6A004.d, 6A006.a.2, 6A006.c.1, 6A006.d, 6A006.e, 
6A008.d, 6A008.h,

[[Page 873]]

6A008.k, 6B008; and (b) Equipment controlled by 6A001.a.2.c and 
6A001.a.2.f when specially designed for real time applications.

STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``production'' of equipment specified in the STA exclusion paragraphs 
found in the License Exception sections of by ECCNs 6A001, 6A002, 6A003, 
6A004, 6A006, 6A008, or 6B008 to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
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, Directorate 
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.

                                 OPTICS

    d. ``Technology'' as follows:
    d.1. Optical surface coating and treatment ``technology'', 
``required'' to achieve an `optical thickness' 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 
5x10-3;
    N.B.:See also 2E003.f.
    Technical Note: 'Optical thickness' is the mathematical product of 
the index of refraction and the physical thickness of the coating.
    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 m\2\;
    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. Magnetic and Electric Field Sensors. None
    g. Gravimeters. None
    h. Radar. None

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 and a.3 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.2, 6A005.b.2.b, 6A005.b.3.a, 6A005.b.4.b, 
          6A005.b.6.b, 6A005.c.1.b, 6A005.c.2.b, 6A005.d.3.c, or 
          6A005.d.4.c (as described

[[Page 874]]

          in the license requirement note to 6A005); 6A202, 6A203, 
          6A205, 6A225 or 6A226.
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
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'' 
          of 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, 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: 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 m\2\ of surface area per year 
on any single spindle and having all of the following:
    a.1. Area exceeding 1 m\2\; and
    a.2. 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;
    c. ``Technology'' for the ``development'' or ``production'' of 
cameras controlled by 6A993;
    d. ``Technology'' ``required'' for the ``development'' or 
``production'' of non-triaxial fluxgate ``magnetometers'' or non-
triaxial fluxgate ``magnetometer'' systems, having any of the following:

    d.1. `Sensitivity' lower (better) than 0.05 nT (rms) per square root 
Hz at frequencies of less than 1 Hz; or
    d.2. `Sensitivity' lower (better) than 1 x 10-3 nT (rms) 
per square root Hz at frequencies of 1 Hz or more.
    Technical Note: For the purposes of 6E993, `sensitivity' (or noise 
level) is the root mean square of the device-limited noise floor which 
is the lowest signal that can be measured.

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.

7A001 Accelerometers as follows (see List of Items Controlled) and 
          specially designed components therefor.
License Requirements
Reason for Control: NS, MT, AT

[[Page 875]]



------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.
MT applies to commodities that meet or   MT Column 1.
 exceed the parameters of 7A101.
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, see 7A001.b. 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. Linear accelerometers having any of the following:
    a.1. Specified to function at linear acceleration levels less than 
or equal to 15 g and having any of the following:
    a.1.a. A ``bias'' ``stability'' of less (better) than 130 micro g 
with respect to a fixed calibration value over a period of one year; or
    a.1.b. A ``scale factor'' ``stability'' of less (better) than 130 
ppm with respect to a fixed calibration value over a period of one year;
    a.2. Specified to function at linear acceleration levels exceeding 
15 g but less than or equal to 100 g and having all of the following:
    a.2.a.A ``bias'' ``repeatability'' of less (better) than 5,000 micro 
g over a period of one year; and
    a.2.b.A ``scale factor'' ``repeatability'' of less (better) than 
2,500 ppm over a period of one year; or
    a.3. Designed for use in inertial navigation or guidance systems and 
specified to function at linear acceleration levels exceeding 100 g;
    Note: 7A001.a.1 and 7A001.a.2 do not apply to accelerometers limited 
to measurement of only vibration or shock.
    b. Angular or rotational accelerometers, specified to function at 
linear acceleration levels exceeding 100 g.

7A002 Gyros or angular rate sensors, having any of the following (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 commodities that meet or   MT Column 1.
 exceed the parameters of 7A102.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Note: For the purpose of MT controls only, the 
term `stability' is defined as a measure of the ability of a specific 
mechanism or performance coefficient to remain invariant when 
continuously exposed to a fixed operating condition. (This definition 
does not refer to dynamic or servo stability.) (IEEE STD 528-2001 
paragraph 2.247)
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 angular or rotational 
accelerometers, see 7A001.b.
Related Definitions: N/A
Items:
    a. Specified to function at linear acceleration levels less than or 
equal to 100 g and having any of the following:
    a.1. A rate range of less than 500 degrees per second and having any 
of the following:
    a.1.a. A ``bias'' ``stability'' of less (better) than 0.5 degree per 
hour,when measured in a 1 g environment over a period of one month, and 
with respect to a fixed calibration value; or
    a.1.b. An ``angle random walk'' of less (better) than or equal to 
0.0035 degree per square root hour; or
    Note: 7A002.a.1.b does not control `spinning mass gyros'.
    Technical Note: `Spinning mass gyros' are gyros which use a 
continually rotating mass to sense angular motion.
    a.2. A rate range greater than or equal to 500 degrees per second 
and having any of the following:
    a.2.a. A ``bias'' ``stability'' of less (better) than 40 degrees per 
hour, when measured in a 1 g environment over a period of three minutes, 
and with respect to a fixed calibration value; or
    a.2.b. An ``angle random walk'' of less (better) than or equal to 
0.2 degree per square root hour; or
    Note: 7A002.a.2.b does not apply to `spinning mass gyros'.
    b. Specified to function at linear acceleration levels exceeding 100 
g.

7A003 Inertial systems and specially designed components, 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 commodities in 7A003.d     MT Column 1.
 that meet or exceed the parameters of
 7A103.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------


[[Page 876]]

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, Directorate 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 (INS) (gimballed or strapdown) and 
inertial equipment, designed for ``aircraft'', land vehicles, vessels 
(surface or underwater) or ``spacecraft'', for navigation, attitude, 
guidance or control and having any of the following 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 navigation, attitude, guidance or 
control, subsequent to normal alignment and 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'');
    c. Inertial measurement equipment for heading or True North 
determination and having any of the following, and specially designed 
components therefor:
    c.1. Designed to have heading or True North determination accuracy 
equal to, or less (better) than 0.07 deg sec (Lat) (equivalent to 6 arc 
minutes (rms) at 45 degrees latitude); or
    c.2. Designed to have a non-operating shock level of 900 g or 
greater at a duration of 1 msec, or greater;
    d. Inertial measurement equipment including Inertial Measurement 
Units (IMU) and Inertial Reference Systems (IRS), incorporating 
accelerometers or gyros controlled by 7A001 or 7A002.
    Note 1: The parameters of 7A003.a and 7A003.b are applicable with 
any of the following environmental conditions:
    a. Input random vibration with an overall magnitude of 7.7 g (rms) 
in the first 0.5 hour and a total test duration of 1.5 hour per axis in 
each of the 3 perpendicular axes, when the random vibration meets all of 
the following:
    1. A constant Power Spectral Density (PSD) value of 0.04 g\2\/Hz 
over a frequency interval of 15 to 1,000 Hz; and
    2. The PSD attenuates with frequency from 0.04 g\2\/Hz to 0.01 g\2\/
Hz over a frequency interval from 1,000 to 2,000 Hz;
    b. An angular rate capability about one or more axes of equal to or 
more than +2.62 rad/s (150 deg/s); or
    c. According to national standards equivalent to a. or b. of this 
note.
    Note 2: 7A003 does not control inertial navigation systems which are 
certified for use on ``civil aircraft'' by civil authorities of a 
Wassenaar Arrangement Participating State, see Supplement No. 1 to Part 
743 for a list of these countries.
    Note 3: 7A003.c.1 does not control theodolite systems incorporating 
inertial equipment specially designed for civil surveying purposes.
    Technical Note: 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.

7A004 ``Star trackers'' and components therefor, 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: $ value
Related Controls: See also 7A104 and 7A994
Related Definitions: N/A
Items:

    a. ``Star trackers'' with a specified azimuth accuracy of equal to 
or less (better) than 20 seconds of arc throughout the specified 
lifetime of the equipment;
    b. Components specially designed for equipment specified in 7A004.a 
as follows:
    b.1. Optical heads or baffles;
    b.2. Data processing units.
    Technical Note: 'Star trackers' are also referred to as stellar 
attitude sensors or gyro-astro compasses.

7A005 Global Navigation Satellite Systems (GNSS) receiving equipment 
          having any

[[Page 877]]

          of the following (see List of Items Controlled) and specially 
          designed components therefor.
License Requirements
    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.
List of Items Controlled
Unit: N/A
Related Controls: See also 7A105 and 7A994. For equipment specially 
designed for military use, see Categories XI and XV of the U.S. 
Munitions List (22 CFR 121).
Related Definitions: N/A
Items:
    a. Employing a decryption algorithm specially designed or modified 
for government use to access the ranging code for position and time; or
    b. Employing `adaptive antenna systems'.
    Note: 7A005.b does not apply to GNSS receiving equipment that only 
uses components designed to filter, switch, or combine signals from 
multiple omni-directional antennae that do not implement adaptive 
antenna techniques.
    Technical Note: For the purposes of 7A005.b `adaptive antenna 
systems' dynamically generate one or more spatial nulls in an antenna 
array pattern by signal processing in the time domain or frequency 
domain.

7A006 Airborne altimeters operating at frequencies other than 4.2 to 4.4 
          GHz inclusive and having any of the following (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.

7A008 Underwater sonar navigation systems using Doppler velocity or 
          correlation velocity logs integrated with a heading source and 
          having a positioning accuracy of equal to or less (better) 
          than 3% of distance traveled ``Circular Error Probable'' 
          (``CEP'') and specially designed components therefor.
License Requirements
Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: 7A008 does not control systems specially designed for 
installation on surface vessels or systems requiring acoustic beacons or 
buoys to provide positioning data. See 6A001.a for acoustic systems, and 
6A001.b for correlation-velocity and Doppler-velocity sonar log 
equipment. See 8A002 for other marine systems.
Related Definitions: N/A
Items:
    The list of items controlled is contained in the ECCN heading.

7A101 Accelerometers, other than those controlled by 7A001 (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: $ 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: a. Linear accelerometers designed for use in inertial navigation 
systems or in guidance systems of all types, usable in ``missiles'' 
having all of the following characteristics, and specially designed 
components therefore:
    1. `Scale factor' ``repeatability'' less (better) than 1250 ppm; and
    2. `Bias' ``repeatability'' less (better) than 1250 micro g.

    Note: The measurement of `bias' and `scale factor' refers to one 
sigma standard deviation with respect to a fixed calibration over a 
period of one year.

    b. Accelerometers of any type, designed for use in inertial 
navigation systems or in guidance systems of all types, specified to 
function at acceleration levels greater than 100 g.

[[Page 878]]

    Note to paragraph (b): This paragraph (b) does not include 
accelerometers that are designed to measure vibration or shock.

7A102 Gyros, other than those controlled by 7A002 (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: $ value
Related Controls: N/A
Related Definitions: (1) Drift rate is defined as the time rate of 
output deviation from the desired output. It consists of random and 
systematic components and is expressed as an equivalent angular 
displacement per unit time with respect to inertial space. (2) Stability 
is defined as standard deviation (1 sigma) of the variation of a 
particular parameter from its calibrated value measured under stable 
temperature conditions. This can be expressed as a function of time.
    Items:
    a. All types of gyros, usable in rockets, missiles, or unmanned 
aerial vehicles capable of achieving a ``range'' equal to or greater 
than 300 km, with a rated ``drift rate'' `stability' of less than 0.5 
degrees (1 sigma or rms) per hour in a 1 g environment.
    b. Gyros of any type, designed for use in inertial navigation 
systems or in guidance systems of all types, specified to function at 
acceleration levels greater than 100 g.
    Technical Note: In this entry, the term `stability' is defined as a 
measure of the ability of a specific mechanism or performance 
coefficient to remain invariant when continuously exposed to a fixed 
operating condition. (This definition does not refer to dynamic or servo 
stability.) (IEEE STD 528-2001 paragraph 2.247).

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) For rockets, missiles, or unmanned aerial vehicles 
controlled under the U.S. Munitions List (22 CFR part 121), items 
described in 7A103.b 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) 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, Directorate 
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 1: 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.
    Note 2: 7A103.a does not control inertial or other equipment using 
accelerometers or gyros controlled by 7A001 or 7A002 that are only NS 
controlled.

    b. Integrated flight instrument systems, which include 
gyrostabilizers or automatic pilots, designed or modified for use in 
rockets, missiles, or unmanned aerial vehicles capable of achieving a 
``range'' equal to or greater than 300 km.
    c. Integrated Navigation Systems, designed or modified for use in 
rockets, missiles, or unmanned aerial vehicles capable of achieving a 
``range'' equal to or greater than 300 km 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

[[Page 879]]

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, Directorate 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.

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, Directorate of 
          Defense Trade Controls. See 22 CFR part 121.)

7A107 Three axis magnetic heading sensors having all of the following 
          characteristics, 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: N/A.
Related Definitions: N/A.
Items:
    a. Internal tilt compensation in pitch (90 
degrees) and roll (180 degrees) axes;
    b. Capable of providing azimuthal accuracy better (less) than 0.5 
degrees rms at latitudes of 80 degrees, referenced 
to local magnetic field; and
    c. Designed or modified to be integrated with flight control and 
navigation systems.

    Note: Flight control and navigation systems in 7A107 include 
gyrostabilizers, automatic pilots and inertial navigation systems.

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, Directorate 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, 
          Directorate 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, Directorate 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: RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to QRS11-00100-100/101 and    RS Column 1.
 QRS11-00050-443/569 Micromachined
 Angular Rate Sensors. See Related
 Controls.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: There is no de minimis level for foreign-
made commercial primary or standby instrument systems that

[[Page 880]]

integrate QRS11-00100-100/101 or commercial automatic flight control 
systems that integrate QRS11-00050-443/569 Micromachined Angular Rate 
Sensors (seeSec. 734.4(a) of the EAR).
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: QRS11 Micromachined Angular Rate Sensors are subject 
to the export licensing jurisdiction of the U.S. Department of State, 
Directorate of Defense Trade Controls, unless the QRS11-00100-100/101 is 
integrated into and included as an integral part of a commercial primary 
or standby instrument system of the type described in ECCN 7A994, or 
aircraft of the type described in ECCN 9A991 that incorporates such 
systems, or is exported solely for integration into such a system; or 
the QRS11-00050-443/569 is integrated into an automatic flight control 
system of the type described in ECCN 7A994, or aircraft of the type 
described in ECCN 9A991 that incorporates such systems, or are exported 
solely for integration into such a system. (See Commodity Jurisdiction 
requirements in 22 CFR Parts 121; Category VIII(e), Note(1)) In the 
latter case, such items are subject to the licensing jurisdiction of the 
Department of Commerce. Technology specific to the development and 
production of QRS11 sensors remains subject to the licensing 
jurisdiction of the Department of State.
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' or `Maintenance Level II'.
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 disassembly or repair of controlled accelerometers or gyro 
sensors.
Items: The list of items controlled is contained in the ECCN heading.

7B002 Equipment specially designed to characterize mirrors for ring 
          ``laser'' gyros, 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: $ 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

[[Page 881]]

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 stations; 
accelerometer test station; and fiber optic gyro coil winding machines.
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, 
          Directorate 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
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, 7A008, 7B001, 7B002 or
 7B003.
MT applies to ``software'' for           MT Column 1.
 equipment controlled for MT reasons.
 MT does not apply to ``software'' for
 equipment controlled by 7A008.

[[Page 882]]

 
RS applies to ``software'' for 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: $ value
Related Controls: (1) See also 7D101 and 7D994. (2) 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, Directorate 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, 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

7D002 ``Source code'' for the operation or maintenance of any inertial 
          navigation equipment, including inertial equipment not 
          controlled by 7A003 or 7A004, or Attitude and Heading 
          Reference Systems (`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 ``software'' for           MT Column 1.
 equipment controlled for MT reasons.
 MT does not apply to ``software'' for
 equipment controlled by 7A008.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: N/A
STA: License Exception STA may not be used to ship or transmit software 
in 7D003.a, b, c, d.1 to d.4 or d.7 to any of the eight destinations 
listed inSec. 740.20(c)(2) of the EAR.
List of Items Controlled
Unit: $ value
Related Controls: (1) See also 7D102 and 7D994. (2) This entry does not 
control ``source code'' for the operation or maintenance of gimballed 
`AHRS'.
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, 7A004 or 7A008;
    b. ``Source code'' for hybrid integrated systems which improves the 
operational performance or reduces the navigational error of systems to 
the level controlled by 7A003 or 7A008 by continuously combining heading 
data with any of the following:
    b.1. Doppler radar or sonar velocity data;
    b.2. Global Navigation Satellite Systems (GNSS) reference data; or
    b.3. Data from `Data-Based Referenced Navigation' (`DBRN'') systems;
    c. ``Source code'' for integrated avionics or mission systems which 
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. Three dimensional displays;

[[Page 883]]

    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 7A107, 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, Directorate 
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, 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

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, Directorate 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, 
          Directorate 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.

                              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,
 7A008, 7B001 to 7B003, 7D001 to 7D003.
MT applies to technology for equipment   MT Column 1.
 controlled for MT reasons. MT does not
 apply to ``technology'' for equipment
 controlled by 7A008. MT does apply to
 ``technology'' for equipment specified
 in 7A001, 7A002 or 7A003.d that meets
 or exceeds parameters of 7A101, 7A102
 or 7A103.
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

[[Page 884]]

STA: License Exception STA may not be used to ship or transmit any 
technology in this entry to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
List of Items Controlled
Unit: N/A
Related Controls: (1) See also 7E101 and 7E994. (2) The ``technology'' 
related to 7A003.b, 7A005, 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 
Controls (see 22 CFR part 121).
Related Definitions: Refer to the Related Definitions for 7B001 for 
`Maintenance Level I' or `Maintenance Level II'.
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, 7A008 or 7B001 to 7B003.
MT applies to technology for equipment   MT Column 1.
 controlled for MT reasons. MT does not
 apply to ``technology'' for equipment
 controlled by 7A008. MT does apply to
 ``technology'' for equipment specified
 in 7A001, 7A002 or 7A003.d that meets
 or exceeds parameters of 7A101, 7A102
 or 7A103.
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
STA: License Exception STA may not be used to ship or transmit any 
technology in this entry to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
List of Items Controlled
Unit: N/A
Related Controls: (1) See also 7E102 and 7E994. (2) The ``technology'' 
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, 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

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 for 
`Maintenance Level I' or `Maintenance Level II'.
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, except       MT Column 1.
 7E004.a.7.
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 any 
of the following:
    a.1. [Reserved]
    a.2. Air data systems based on surface static data only, i.e., which 
dispense with conventional air data probes;
    a.3. Three dimensional displays for ``aircraft'';
    a.4. [Reserved]
    a.5. Electric actuators (i.e., electromechanical, electrohydrostatic 
and integrated actuator package) specially designed for ``primary flight 
control'';

[[Page 885]]

    a.6. ``Flight control optical sensor array'' specially designed for 
implementing ``active flight control systems''; or
    a.7. ``DBRN'' systems designed to navigate underwater, using sonar 
or gravity databases, that provide a positioning accuracy equal to or 
less (better) than 0.4 nautical miles;
    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 
Systems'' (``FADEC Systems''), see ECCN 9E003.h.
    c. ``Technology'' for the ``development'' of helicopter systems, as 
follows:
    c.1. Multi-axis fly-by-wire or fly-by-light controllers, which 
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 
          7A107, 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: 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.)
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

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

[[Page 886]]

          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: Technology specific to the development and production 
of QRS11 sensors remains subject to the licensing jurisdiction of the 
Department of State (see ECCN 7A994, Related Controls).
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: SeeSec. 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
STA: License Exception STA may not be used to ship any commodity in 
8A001.b, 8A001.c or 8A001.d to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
List of Items Controlled
Unit: Number
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 continuously `operate autonomously' for 10 hours 
or more; and
    b.3.b. `Range' of 25 nautical miles or more;
    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 `operate autonomously'.
    c. Unmanned, tethered submersible vehicles designed to operate at 
depths exceeding 1,000 m and having any of the following:
    c.1. Designed for self-propelled maneuver using propulsion motors or 
thrusters controlled by 8A002.a.2; or
    c.2. Fiber optic data link;
    d. Unmanned, untethered submersible vehicles having any of the 
following:
    d.1. Designed for deciding a course relative to any geographical 
reference without real-time human assistance;
    d.2. Acoustic data or command link; or
    d.3. Optical 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 and with positioning accuracies to within 10 m 
of a predetermined point;
    f. Surface-effect vehicles (fully skirted variety) having all of the 
following:
    f.1. Maximum design speed, fully loaded, exceeding 30 knots in a 
significant wave height of 1.25 m (Sea State 3) or more;

[[Page 887]]

    f.2. Cushion pressure exceeding 3,830 Pa; and
    f.3. 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. Full load displacement exceeding 500 tonnes 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. Full load displacement exceeding 1,500 tonnes with a maximum 
design speed, fully loaded, exceeding 25 knots in a significant wave 
height of 4 m (Sea State 6) or more.
    Technical Note: A `small waterplane area vessel' is defined by the 
following formula: Waterplane area at an operational design draft less 
than 2 x (displaced volume at the operational design 
draft)2/3.

8A002 Marine systems, equipment and components, 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: SeeSec. 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; and 8A002.r.
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; and 8A002.r.
STA: License Exception STA may not be used to ship any commodity in 
8A002.b, h, j, o.3, or p to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
List of Items Controlled
Unit: Systems and equipment in number, components in $ value
Related Controls: (1) 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. (2) See also 8A992 for self-contained 
underwater breathing apparatus that is not controlled by 8A002 or 
released for control by the 8A002.q Note. (3) For electronic imaging 
systems specially designed or modified for underwater use incorporating 
image intensifier tubes specified by 6A002.a.2.a or 6A002.a.2.b, see 
6A003.b.3. (4) For electronic imaging systems specially designed or 
modified for underwater use incorporating ``focal plane arrays'' 
specified by 6A002.a.3.g, see 6A003.b.4.c.
Related Definitions: N/A
Items: a. Systems, equipment and components, specially designed or 
modified for submersible vehicles and 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;
    a.4. Components manufactured from material specified by ECCN 8C001;
    Technical Note: The objective of 8A002.a.4 should not be defeated by 
the export of `syntactic foam' controlled by 8C001 when an intermediate 
stage of manufacture has been performed and it is not yet in its final 
component form.
    b. Systems specially designed or modified for the automated control 
of the motion of submersible vehicles controlled by 8A001, using 
navigation data, having closed loop servo-controls and having any of the 
following:
    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 pressure hull penetrators;
    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;
    d.1.c. Low light level television cameras specially designed or 
modified for underwater use and having all of the following:
    d.1.c.1. Image intensifier tubes controlled by 6A002.a.2.a; and

[[Page 888]]

    d.1.c.2. More than 150,000 ``active pixels'' per solid state area 
array;
    Technical Note: `Limiting resolution' 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 and including range-gated illuminators or ``laser'' 
systems;
    e. Photographic still cameras specially designed or modified for 
underwater use below 150 m, with 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;[Reserved]
    g. Light systems specially designed or modified for underwater use, 
as follows:
    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 computer and 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 ``composite'' 
``fibrous or filamentary materials'' in their structural members;
    i. Remotely controlled articulated manipulators specially designed 
or modified for use with submersible vehicles and having any of the 
following:
    i.1. Systems which control the manipulator using information from 
sensors which measure any of the following:
    i.1.a. Torque or force applied to an external object; or
    i.1.b. Tactile sense between the manipulator and an external object; 
or
    i.2. Controlled by proportional master-slave techniques or by using 
a dedicated computer and having 5 degrees of `freedom of movement' or 
more;
    Technical Note: Only functions having proportional control using 
positional feedback or by using a dedicated 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 having all of the following:
    j.1.d.1. Specially designed to pressurize the products of reaction 
or for fuel reformation;
    j.1.d.2. Specially designed to store the products of the reaction; 
and
    j.1.d.3. Specially designed 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 and 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 having all of the following:
    j.3.b.1. Specially designed to pressurize the products of reaction 
or for fuel reformation;
    j.3.b.2. Specailly designed to store the products of the reaction; 
and
    j.3.b.3. Specially designed 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
    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

[[Page 889]]

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 and 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, 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, as follows:
    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 and 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 and 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 
tonnes 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 and 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;
    Technical Note: `Active noise reduction or cancellation systems' 
incorporate 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 all of the following:
    p.1. Power output exceeding 2.5 MW; and
    p.2. Using divergent nozzle and flow conditioning vane techniques to 
improve propulsive efficiency or reduce propulsion-generated underwater-
radiated noise;
    q. Underwater swimming and diving equipment as follows;
    q.1. Closed circuit rebreathers;
    q.2. Semi-closed circuit rebreathers;
    Note: 8A002.q does not control individual rebreathers for personal 
use when accompanying their users.
    r. Diver deterrent acoustic systems specially designed or modified 
to disrupt divers and having a sound pressure level equal to or 
exceeding 190 dB (reference 1 [micro]Pa at 1 m) at frequencies of 200 Hz 
and below.
    Note 1: 8A002.r does not apply to diver deterrent systems based on 
under-water-explosive devices, air guns or combustible sources.
    Note 2: 8A002.r includes diver deterrent acoustic systems that use 
spark gap sources, also known as plasma sound sources.

8A018 Items on the Wassenaar Arrangement 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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $5000.
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:

[[Page 890]]

    b.1. Diesel engines of 1,500 hp and over with rotary speed of 700 
rpm or over specially designed for submarines, and specially designed 
components therefor;
    b.2. Electric motors specially designed for submarines, i.e., over 
1,000 hp, quick reversing type, liquid cooled, and totally enclosed, and 
specially designed components therefor;
    b.3. Nonmagnetic diesel engines, 50 hp and over, specially designed 
for military purposes with nonmagnetic content in excess of 75 percent 
of total mass and specially designed components therefor;
    b.4. Submarine and torpedo nets and specially designed components 
therefor.

8A918 Marine Boilers.
License Requirements
Reason for Control: RS, AT, UN

------------------------------------------------------------------------
                Controls                          Country chart
------------------------------------------------------------------------
RS applies to entire entry.............  RS Column 2.
AT applies to entire entry.............  AT Column 1.
UN applies to entire entry.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $5000.
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Marine boilers designed to have any of the following 
characteristics:
    a.1. Heat release rate (at maximum rating) equal to or in excess of 
190,000 BTU per hour per cubic foot of furnace volume; or
    a.2. 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. Components, parts, accessories, and attachments for the above.

8A992 Vessels, marine systems or equipment, not controlled by 8A001, 
          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 format of 35 mm or larger, and having 
autofocusing or remote focusing 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. Vessels, 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 [micro]Pa, 1 Hz) in the frequency range from 0 to 
          500 Hz and 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

[[Page 891]]

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 and 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
CIV: N/A
List of Items Controlled
Unit: $ value
Related Controls: See also 8A002.a.4.
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: SeeSec. 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 ``software'' specially designed for the 
``development'' or ``production'' of equipment controlled by 8A001.b, 
8A001.d, or 8A002.o.3.b.
STA: License Exception STA may not be used to ship or transmit 
``software'' specially designed for the ``development'' or 
``production'' of equipment in 8A001.b, 8A001.c, 8A001.d, 8A002.b, 
8A002.h, 8A002.j, 8A002.o.3 or 8A002.p to any of the eight destinations 
listed inSec. 740.20(c)(2) of the EAR.
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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: Yes
STA: License Exception STA may not be used to ship or transmit any 
software in this entry to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
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

[[Page 892]]

 
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 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'' for items controlled by 
8A001.b, 8A001.d or 8A002.o.3.b.
STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment specified by 8A001.b, 
8A001.c, 8A001.d, 8A002.b, 8A002.h, 8A002.j, 8A002.o.3 or 8A002.p to any 
of the eight destinations listed inSec. 740.20(c)(2) of the EAR.
List of Items Controlled
Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

8E002 Other ``technology'' 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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: Yes
STA: License Exception STA may not be used to ship or transmit 
technology in 8E002.a to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
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--Aerospace and Propulsion

                  A. Systems, Equipment and Components

    N.B.: For propulsion systems designed or rated against neutron or 
transient ionizing radiation, see the U.S. Munitions List, 22 CFR part 
121.

9A001 Aero gas turbine engines having any of the following (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: Number
Related Controls: See also 9A101 and 9A991
Related Definitions: N/A
Items:
    a. Incorporating any of the technologies controlled by 9E003.a, 
9E003.h, or 9E003.i; or

    Note: 9A001.a. does not control aero gas turbine engines which meet 
all of the following:
    a. Certified by the civil aviation authority in a country listed in 
Supplement No. 1 to Part 743; and
    b. Intended to power non-military manned aircraft for which any of 
the following has been issued by a Participating State listed in 
Supplement No. 1 to Part 743 for the aircraft with this specific engine 
type:
    b.1. A civil type certificate; or

[[Page 893]]

    b.2. An equivalent document recognized by the International Civil 
Aviation Organization (ICAO).

    b. Designed to power an aircraft designed to cruise at Mach 1 or 
higher, for more than 30 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.

9A003 Specially designed assemblies and components, incorporating any of 
          the ``technologies'' controlled by 9E003.a, 9E003.h or 
          9E003.i, for any of the following gas turbine engine 
          propulsion systems (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; or
    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: Number
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, 
Directorate 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, Directorate 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''

[[Page 894]]

and their associated parts and components, other than the international 
space station, must provide a statement from the Department of State, 
Directorate 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 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, Directorate 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, 
          Directorate 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, 
          Directorate 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, Directorate 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, 
          Directorate 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, Directorate 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, 
          Directorate of Defense Trade Controls.See 22 CFR part 121).

9A012 Non-military ``unmanned aerial vehicles,'' (``UAVs''), unmanned 
          ``airships'', associated systems, equipment and components, 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 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

[[Page 895]]

Related Controls: See the U.S. Munitions List Category VIII (22 CFR part 
121). Also see section 744.3 of the EAR.
Related Definitions: N/A
    a. ``UAVs'' or unmanned ``airships'', having any of the following:
    a.1. An autonomous flight control and navigation capability (e.g., 
an autopilot with an Inertial Navigation System); or
    a.2. Capability of controlled flight out of the direct visual range 
involving a human operator (e.g., televisual remote control);
    b. Associated systems, equipment and components, as follows:
    b.1. Equipment specially designed for remotely controlling the 
``UAVs'' or unmanned ``airships'', controlled by 9A012.a.;
    b.2. Systems for navigation, attitude, guidance or control, other 
than those controlled in Category 7, specially designed to provide 
autonomous flight control or navigation capability to ``UAVs'' or 
unmanned ``airships'', controlled by 9A012.a.;
    b.3. Equipment or components specially designed to convert a manned 
``aircraft'' or a manned ``airship'' to a ``UAV'' or unmanned 
``airship'', controlled by 9A012.a;
    b.4. Air breathing reciprocating or rotary internal combustion type 
engines, specially designed or modified to propel ``UAVs'' or unmanned 
``airships'', at altitudes above 50,000 feet (15,240 meters).
    Note: 9A012 does not control model aircraft or model ``airships''.

9A018 Equipment on the Wassenaar Arrangement 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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
LVS: $1500.
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; (b) Instrument flight trainers 
for combat simulation; and (c) military ground armed or armored vehicles 
and parts and components specific thereto described in 22 CFR part 121, 
Category VII; and all-wheel drive vehicles capable of off-road use that 
have been armed or armored with articles described in 22 CFR part 121, 
Category XIII (SeeSec. 770.2(h)--Interpretation 8) are all subject to 
the export licensing jurisdiction of the U.S. Department of State, 
Directorate of Defense Trade Controls.
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.); and
    a.3. Specially designed component parts.
    b. Ground transport vehicles (including trailers) and parts and 
components therefor designed or modified for non-combat military use and 
unarmed all-wheel drive vehicles capable of off-road use which have been 
manufactured or fitted with materials to provide ballistic protection to 
level III (National Institute of Justice standard 0108.01, September 
1985) or better. (SeeSec. 770.2(h)--Interpretation 8).
    c. Pressure refuelers, pressure refueling equipment, equipment 
specially designed to facilitate operations in confined areas; and 
ground equipment, developed specially for military ``aircraft'', and 
specially designed parts and accessories, n.e.s.;
    d. Pressurized breathing equipment specially designed for use in 
military ``aircraft'';
    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 and accessories specially designed for such 
equipment.

9A101 Turbojet and Turbofan Engines, 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
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, Directorate of Defense Trade Controls (see 22 
CFR part 121).
Related Definitions: N/A

[[Page 896]]

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.

9A103 Liquid Propellant Tanks Specially Designed for the Propellants 
          Controlled in ECCNs 1C011, 1C111 or Other Liquid Propellants 
          Used 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.)

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, Directorate 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, 
          Directorate 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, 
Directorate 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.

    d. Liquid and slurry propellant (including oxidizers) control 
systems, and specially designed components therefor, designed or 
modified to operate in vibration environments greater 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 equal to or greater than 24 
liters per minute, at an absolute pressure equal to or greater than 7 
MPa, 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 greater than 10g rms over the entire range between 20Hz and 
2 kHz.

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 Equal to or Greater 
          Than 8.41 x 10\5\ Ns, but less than 1.1 x 10\6\ (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.)

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, Directorate 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, Directorate 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,

[[Page 897]]

          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 rockets, missiles, or unmanned aerial 
          vehicles capable of achieving a ``range'' equal to or greater 
          than 300km, and specially designed components therefor. (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.)

9A115 Apparatus, devices and vehicles, designed or modified for the 
          transport, handling, control, activation and launching of 
          rockets, missiles, and unmanned aerial vehicles capable of 
          achieving a ``range'' equal to or greater than 300 km. (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, 
          Directorate 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, Directorate 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 
          the U.S. Department of State, Directorate of Defense Trade 
          Controls. See 22 CFR part 121.)

9A120 Complete unmanned aerial vehicles, not specified in 9A012, having 
          all of the following:
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: See ECCN 9A012 or the U.S. Munitions List Category 
VIII (22 CFR part 121). Also see ECCN 2B352.h for controls on certain 
spraying or fogging systems, and components therefor, specially designed 
or modified for fitting to aircraft, ``lighter than air vehicles,'' or 
``UAVs.''
    Related Definitions: N/A
Items:
    a. Having any of the following:
    a.1. An autonomous flight control and navigation capability; or
    a.2. Capability of controlled-flight out of the direct vision range 
involving a human operator; and
    b. Having any of the following:
    b.1. Incorporating an aerosol dispensing system/mechanism with a 
capacity greater than 20 liters; or
    b.2. Designed or modified to incorporate an aerosol dispensing 
system/mechanism with a capacity of greater than 20 liters.

    Note: 9A120 does not control model aircraft, specially designed for 
recreational or competition purposes.
    Technical Notes: 1. An aerosol consists of particulate or liquids 
other than fuel components, by--products or additives, as part of the 
``payload'' to be dispersed in the atmosphere. Examples of aerosols 
include pesticides for crop dusting and dry chemicals for cloud seeding.
    2. An aerosol dispensing system/mechanism contains all above devices 
(mechanical, electrical, hydraulic, etc.), which are necessary for 
storage and dispersion of an aerosol into

[[Page 898]]

the atmosphere. This includes the possibility of aerosol injection into 
the combustion exhaust vapor and into the propeller slip stream.

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..................  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

    License Requirement Notes: There is no de minimis level for foreign-
made aircraft described by this entry that incorporate commercial 
primary or standby instrument systems that integrate QRS11-00100-100/101 
or commercial automatic flight control systems that integrate QRS11-
00050-443/569 Micromachined Angular Rate Sensors (seeSec. 734.4(a) of 
the EAR).
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Number
Related Controls: QRS11 Micromachined Angular Rate Sensors are subject 
to the export licensing jurisdiction of the U.S. Department of State, 
Directorate of Defense Trade Controls, unless the QRS11-00100-100/101 is 
integrated into and included as an integral part of a commercial primary 
or standby instrument system of the type described in ECCN 7A994, or 
aircraft of the type described in ECCN 9A991 that incorporates such a 
system, or is exported solely for integration into such a system; or the 
QRS11-00050-443/569 is integrated into an automatic flight control 
system of the type described in ECCN 7A994, or aircraft of the type 
described in ECCN 9A991 that incorporates such a system, or are exported 
solely for integration into such a system. (See Commodity Jurisdiction 
requirements in 22 CFR Part 121; Category VIII(e), Note(1)) In the 
latter case, such items are subject to the licensing jurisdiction of the 
Department of Commerce. Technology specific to the development and 
production of QRS11 sensors remains subject to the licensing 
jurisdiction of the Department of State.
Related Definitions: N/A
Items: a. Military aircraft, demilitarized (not specifically equipped or 
modified for military operation), as follows:
    a.1 Cargo aircraft bearing ``C'' designations and numbered C-45 
through C-118 inclusive, C-121 through C-125 inclusive, and C-131, using 
reciprocating engines only.
    a.2 Trainer aircraft bearing ``T'' designations and using 
reciprocating engines or turboprop engines with less than 600 horsepower 
(s.h.p.).
    a.3 Utility aircraft bearing ``U'' designations and using 
reciprocating engines only.
    a.4 All liaison aircraft bearing an ``L'' designation.
    a.5 All observation aircraft bearing ``O'' designations and using 
reciprocating engines.
    b. ``Civil aircraft'';

    Note: Specify make and model of aircraft and type of avionic 
equipment on aircraft.

    c. Aero gas turbine engines, and specially designed parts therefor.

[[Page 899]]

    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. If they have been in 
use in bona fide civil ``aircraft'' for more than eight years, such 
engines are controlled under 9A991.d.

    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

              B. Test, Inspection and Production Equipment

9B001 Equipment, tooling and fixtures, specially designed for 
          manufacturing gas turbine blades, vanes or ``tip shroud'' 
          castings, 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 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: SeeSec. 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
STA: License Exception STA may not be used to ship commodities in 
9B001.b to any of the eight destinations listed inSec. 740.20(c)(2) of 
the EAR.
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, having all of the following (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 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:
    a. Specially designed for the ``development'' of gas turbine 
engines, assemblies or components; and
    b. Incorporating ``technologies'' controlled by 9E003.h or 9E003.i.

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

[[Page 900]]

          intermetallic airfoil-to-disk combinations described in 
          9E003.a.3 or 9E003.a.6 for gas turbines.
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 use with any 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
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;
    Note: 9B005.a does not control wind tunnels 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 25 x 10 \6\.

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 and 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
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

9B008 Direct measurement wall skin friction transducers specially 
          designed to operate at a test flow total (stagnation) 
          temperature exceeding 833 K (560 [deg]C)).
License Requirements
Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

License Exceptions
LVS: $5000
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Number

[[Page 901]]

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
Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

9B010 Equipment specially designed for the production of ``UAVs'' and 
          associated systems, equipment and components, controlled by 
          9A012.
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: 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 rockets, 
          missiles, or unmanned aerial vehicles capable of achieving a 
          ``range'' equal to or greater than 300 km 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 usable for rockets, missiles, or unmanned 
          aerial vehicles capable of achieving a ``range'' equal to or 
          greater than 300 km and their subsystems, 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. Having any of the following:
    a.1.a. Altitude equal to or greater than 15,000 m; or
    a.1.b. Temperature range of at least -50 [deg]C to +125 [deg]C; and
    a.2. Incorporating, or designed or modified to incorporate, a shaker 
unit or other vibration test equipment to produce vibration environments 
equal to or greater than 10 g rms, measured `bare table', between 20 Hz 
and 2 kHz imparting forces equal to or greater than 5 kN;
    Technical Notes: 1. Item 9B106.a.2 describes systems that are 
capable of generating a vibration environment with a single wave (e.g., 
a sine wave) and systems capable of generating a broad band random 
vibration (i.e., power spectrum).
    2. The term `bare table' means a flat table, or surface, with no 
fixture or fittings.
    3. In Item 9B106.a.2, designed or modified means the environmental 
chamber provides appropriate interfaces (e.g., sealing devices) to 
incorporate a shaker unit or other vibration test equipment as specified 
in this Item.

    b. Environmental 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 total 
rated acoustic power output of 4kW or greater; and
    b.2. Any of the following:

[[Page 902]]

    b.2.a. Altitude equal to or greater than 15,000 m; or
    b.2.b. Temperature range of at least -50 [deg]C to +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, Directorate 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, and 9A116 to 9A119 are subject to 
the export licensing authority of the Department of State, Directorate 
of Defense Trade Controls (22 CFR part 121), the ``production 
facilities'' controlled in this entry that are 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.

9B117 Test Benches and Test Stands for Solid or Liquid Propellant 
          Rockets, Motors or Rocket Engines, 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 solid or liquid propellant rocket motors 
or rocket engines having a thrust greater than 68 kN; 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

[[Page 903]]

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           NS Column 1
 equipment controlled by 9A001 to
 9A003, 9A012, 9B001 to 9B010, and
 technology controlled by 9E003.
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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: N/A
STA: License Exception STA may not be used to ship or transmit 
``software'' specially designed or modified for the ``development'' of 
equipment or ``technology'', specified by ECCNs 9B001.b. or 9E003.a.1, 
9E003.a.2 to a.5, 9E003.a.8, or 9E003.h to any of the eight destinations 
listed inSec. 740.20(c)(2) of the EAR.
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 9B010, and
 technology controlled by 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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A

[[Page 904]]

TSR: N/A
STA: License Exception STA may not be used to ship or transmit 
``software'' specially designed or modified for the ``production'' of 
equipment specified by 9B001.b to any of the eight destinations listed 
inSec. 740.20(c)(2) of the EAR.
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, Directorate 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, 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

9D003 ``Software'' incorporating ``technology'' specified by 9E003.h and 
          used in ``FADEC Systems'' for propulsion systems controlled by 
          9A (except 9A018, 9A990 or 9A991) or equipment controlled by 
          9B (except 9B990 or 9B991).
License Requirements
    Reason for Control: NS, MT, AT

 
                Control(s)                          Country chart
 
NS applies to ``software'' for ``use'' of   NS Column 1.
 ``FADEC systems'' for equipment
 controlled by 9A001 to 9A003.
MT applies to ``software'' required for     MT Column 1.
 the ``use'' of ``FADEC systems'' for gas
 turbine engines controlled by 9A101, or
 9A106..
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, 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.

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, except       MT Column 1.
 9D004.g and .f.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: N/A
STA: License Exception STA may not be used to ship or transmit software 
in 9D004.a and 9D004.c to any of the eight destinations listed inSec. 
740.20(c)(2) of the EAR.
List of Items Controlled
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. [Reserved]

    e. ``Software'' specially designed or modified for the operation of 
``UAVs'' and associated systems, equipment and components, controlled by 
9A012;
    f. ``Software'' specially designed to design the internal cooling 
passages of aero gas turbine engine blades, vanes and ``tip shrouds'';
    g. ``Software'' having all of the following:
    g.1. Specially designed to predict aero thermal, aeromechanical and 
combustion conditions in aero gas turbine engines; and
    g.2. Theoretical modeling predictions of the aero thermal, 
aeromechanical and combustion conditions, which have been validated with 
actual turbine engine (experimental or production) performance data.

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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: Yes for Australia, Japan, New Zealand, and NATO countries that are 
also listed in Country Group B of Supplement No. 1 to part 740 of the 
EAR.

[[Page 905]]

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, Directorate 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.
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 
for repair or overhaul. Excluded from 9E001 to 9E003 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.


[[Page 906]]


9E001 ``Technology'' according to the General Technology Note for the 
          ``development'' of equipment or ``software'', controlled by 
          9A001.b, 9A004 to 9A012, 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.b, 9A012, 9B001 to
 9B010, 9D001 to 9D004 for NS reasons.
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: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
CIV: N/A
TSR: N/A
STA: License Exception STA may not be used to ship or transmit any 
technology in this entry to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
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, Directorate 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, 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

9E002 ``Technology'' according to the General Technology Note for the 
          ``production'' of equipment controlled by 9A001.b, 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
------------------------------------------------------------------------

    License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: N/A
STA: License Exception STA may not be used to ship or transmit any 
technology in this entry to any of the eight destinations listed in 
Sec.  740.20(c)(2) of the EAR.
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, Directorate 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, 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.

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.8,.h,
 .i, and .j. SeeSec.  742.14 of the EAR
 for additional information..
AT applies to entire entry................  AT Column 1
 

License Requirement Notes: SeeSec. 743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: N/A
STA: License Exception STA may not be used to ship or transmit any 
technology in 9E003.a.1, 9E003.a.2 to a.5, 9E003.a.8, or 9E003.h to any 
of the eight destinations listed inSec. 740.20(c)(2) of the EAR.
List of Items Controlled
Unit: N/A
Related Controls: (1.) Hot section ``technology'' specifically designed, 
modified, or

[[Page 907]]

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'' or 
``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 and 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. Combustors having any of the following:
    a.2.a. Thermally decoupled liners designed to operate at 'combustor 
exit temperature' exceeding 1,883K (1,610 [deg]C);
    a.2.b. Non-metallic liners;
    a.2.c. Non-metallic shells; or
    a.2.d. Liners designed to operate at 'combustor exit temperature' 
exceeding 1,883K (1,610 [deg]C) and having holes that meet the 
parameters specified by 9E003.c;
    Note: The ``required'' ``technology'' for holes in 9E003.a.2 is 
limited to the derivation of the geometry and location of the holes.
    Technical Note: 'Combustor exit temperature' is the bulk average gas 
path total (stagnation) temperature between the combustor exit plane and 
the leading edge of the turbine inlet guide vane (i.e., measured at 
engine station T40 as defined in SAE ARP 755A) when the engine is 
running in a 'steady state mode' of operation at the certificated 
maximum continuous operating temperature.
    N.B.: See 9E003.c for ``technology'' ``required'' for manufacturing 
cooling holes.
    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 total (stagnation) 
temperatures of 1,323 K (1,050 [deg]C) or more at sea-level static take-
off (ISA) in a ``steady state mode'' of engine operation;
    a.5. Cooled turbine blades, vanes or ``tip shrouds'', other than 
those described in 9E003.a.1, exposed to gas path total (stagnation) 
temperatures of 1,643 K (1,370 [deg]C) or more at sea-level static take-
off (ISA) in a `steady state mode' of engine operation;
    Technical Note: The term `steady state mode' defines engine 
operation conditions, where the engine parameters, such as thrust/power, 
rpm and others, have no appreciable fluctuations, when the ambient air 
temperature and pressure at the engine inlet are constant.
    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 rotor components using 
powder metallurgy materials controlled by 1C002.b; or
    Technical Note: ``Damage tolerant''components are designed using 
methodology and substantiation to predict and limit crack growth.
    a.9. [Reserved]
    N.B.: For ``FADEC systems'', see 9E003.h.
    a.10. [Reserved]
    N.B.: For adjustable flow path geometry, see 9E003.i.
    a.11. Hollow fan blades;
    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 manufacturing cooling holes, in 
gas turbine engine components incorporating any of the ``technologies'' 
specified by 9E003.a.1, 9E003.a.2 or 9E003.a.5, and having any of the 
following:
    c.1. Having all of the following:
    c.1.a. Minimum 'cross-sectional area' less than 0.45 mm\2\;
    c.1.b. 'Hole shape ratio' greater than 4.52; and
    c.1.c. 'Incidence angle' equal to or less than 25[deg]; or
    c.2. Having all of the following:
    c.2.a. Minimum 'cross-sectional area' less than 0.12 mm\2\;
    c.2.b. 'Hole shape ratio' greater than 5.65; and
    c.2.c. 'Incidence angle' more than 25[deg];
    Note: 9E003.c does not apply to ``technology'' for manufacturing 
constant radius cylindrical

[[Page 908]]

holes that are straight through and enter and exit on the external 
surfaces of the component.
    Technical Notes: 
    1. For the purposes of 9E003.c, the 'cross-sectional area' is the 
area of the hole in the plane perpendicular to the hole axis.
    2. For the purposes of 9E003.c, 'hole shape ratio' is the nominal 
length of the axis of the hole divided by the square root of its minimum 
'cross-sectional area'.
    3. For the purposes of 9E003.c, 'incidence angle' is the acute angle 
measured between the plane tangential to the airfoil surface and the 
hole axis at the point where the hole axis enters the airfoil surface.
    4. Techniques for manufacturing holes in 9E003.c include ``laser'', 
water jet, Electro-Chemical Machining (ECM) or Electrical Discharge 
Machining (EDM) methods.
    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. `Box volume' of 1.2 m\3\ 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. Power density of more than 700 kW/m\3\ of `box volume';
    Technical Note: `Box volume' is 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 any 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 any 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 for high output diesel engines, as follows:
    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 and having all of the 
following:
    f.2.a. Operating at pressure ratios of 4:1 or higher;
    f.2.b. 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)) and having all of the following:
    f.3.a. Injection amount in excess of 230 mm\3\ per injection per 
cylinder; and
    f.3.b. Electronic control features specially designed 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 and 
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;
    Technical Note: `High output diesel engines' are diesel engines with 
a specified brake mean effective pressure of 1.8 MPa or more at a speed 
of 2,300 r.p.m., provided the rated speed is 2,300 r.p.m. or more.
    h. ``Technology'' for gas turbine engine ``FADEC systems'' as 
follows:
    h.1. ``Development'' ``technology'' for deriving the functional 
requirements for the components necessary for the ``FADEC system'' to 
regulate engine thrust or shaft power (e.g., feedback sensor time 
constants and accuracies, fuel valve slew rate);
    h.2. ``Development'' or ``production'' ``technology'' for control 
and diagnostic components unique to the ``FADEC system'' and used to 
regulate engine thrust or shaft power;
    h.3. ``Development'' ``technology'' for the control law algorithms, 
including ``source code'', unique to the ``FADEC system'' and used to 
regulate engine thrust or shaft power.
    Note: 9E003.h does not apply to technical data related to engine-
aircraft integration required by the civil aviation certification 
authorities to be published for general airline use (e.g., installation 
manuals, operating instructions, instructions for continued 
airworthiness) or interface functions (e.g., input/output processing, 
airframe thrust or shaft power demand).
    i. ``Technology'' for adjustable flow path systems designed to 
maintain engine stability for gas generator turbines, fan or power 
turbines, or propelling nozzles, as follows:

[[Page 909]]

    i.1. ``Development'' ``technology'' for deriving the functional 
requirements for the components that maintain engine stability;
    i.2. ``Development'' or ``production'' ``technology'' for components 
unique to the adjustable flow path system and that maintain engine 
stability;
    i.3. ``Development'' ``technology'' for the control law algorithms, 
including ``source code'', unique to the adjustable flow path system and 
that maintain engine stability;
    Note: 9E003.i does not apply to ``development'' or ``production'' 
``technology'' for any of the following:
    a. Inlet guide vanes;
    b. Variable pitch fans or prop-fans;
    c. Variable compressor vanes;
    d. Compressor bleed valves; or
    e. Adjustable flow path geometry for reverse thrust.
    j. ``Technology'' not otherwise controlled in 9E003.a.1 through a.8, 
a.10, and .h and 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.............  SeeSec.  746.1(b) for UN
                                          controls.
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: Yes for Australia, Japan, New Zealand, and NATO countries that are 
also listed in Country Group B of Supplement No. 1 to part 740 of the 
EAR.
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'', ``production'', or ``use'' of commodities or 
          software controlled by 9A012, 9A101, 9A104 to 9A111, 9A115 to 
          9A119, 9C110, 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.

[[Page 910]]

 
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.
------------------------------------------------------------------------

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 at www.fdsys.gov.



Sec. 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 countries in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR, 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.

[69 FR 46087, July 30, 2004]



     Sec. Supplement No. 3 to Part 774--Statements of Understanding

    (a) 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

[[Page 911]]

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 to paragraph (a): (1) ``Specially designed for medical end-
use'' means designed for medical treatment or the practice of medicine 
(does not include medical research).
    (2) Commodities or software are considered ``incorporated'' if the 
commodity or software is: Essential to the functioning of the medical 
equipment; customarily included in the sale of the medical equipment; 
and exported or reexported with the medical equipment.
    (3) Except for such software that is made publicly available 
consistent withSec. 734.3(b)(3) of the EAR, commodities and software 
``specially designed for medical end-use'' remain subject to the EAR.
    (4) See alsoSec. 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.

    (b) Statement of Understanding--Source Code. For the purpose of 
national security controlled items, ``source code'' items are controlled 
either by ``software'' or by ``software'' and ``technology'' controls, 
except when such ``source code'' items are explicitly decontrolled.
    (c) Category 5--Part 2--Note 4 Statement of Understanding. All items 
previously described by Notes (b), (c) and (h) to 5A002 are now 
described by Note 4 to Category 5--Part 2. Note (h) to 5A002 prior to 
June 25, 2010 stated that the following was not controlled by 5A002:
    Equipment specially designed for the servicing of portable or mobile 
radiotelephones and similar client wireless devices that meet all the 
provisions of the Cryptography Note (Note 3 in Category 5, Part 2), 
where the servicing equipment meets all of the following:
    (1) The cryptographic functionality of the servicing equipment 
cannot easily be changed by the user of the equipment;
    (2) The servicing equipment is designed for installation without 
further substantial support by the supplier; and
    (3) The servicing equipment cannot change the cryptographic 
functionality of the device being serviced.
    (d) Statement of Understanding--Used Goods. The specifications in 
the Commerce Control List apply equally to new or used goods. In the 
case of used goods, an evaluation by the Bureau of Industry and Security 
may be carried out in order to assess whether the goods are capable of 
meeting the relevant specifications.

[75 FR 36502, June 25, 2010, as amended at 76 FR 29632, May 20, 2011]



              Sec. Supplement No. 4 to Part 774 [Reserved]



 Sec. Supplement No. 5 to Part 774--Items Classified Under ECCNS 0A521, 
                      0B521, 0C521, 0D521 AND 0E521

    The following table lists items subject to the EAR that are not 
listed elsewhere in the CCL, but which the Department of Commerce, with 
the concurrence of the Departments of Defense and State, has identified 
warrant control for export or reexport because the items provide at 
least a significant military or intelligence advantage to the United 
States or for foreign policy reasons.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Item descriptor.   Date of initial    Date when the     Item-specific
Note: The           or subsequent      item will be      license
 description must   BIS                designated        exception
 match by model     classification.    EAR99, unless     eligibility.
 number or a                           reclassified in
 broader                               another ECCN or
 descriptor that                       the 0Y521
 does not                              classification
 necessarily need                      is reissued.
 to be company
 specific.
1. [Reserved]
2. [Reserved]
------------------------------------------------------------------------


[77 FR 22200, Apr. 13, 2012]

                        PARTS 775	780 [RESERVED]

[[Page 912]]



              SUBCHAPTER D_ADDITIONAL PROTOCOL REGULATIONS





PART 781_GENERAL INFORMATION AND OVERVIEW OF THE ADDITIONAL PROTOCOL 
REGULATIONS (APR)--Table of Contents



Sec.
781.1 Definitions of terms used in the Additional Protocol Regulations 
          (APR).
781.2 Purposes of the Additional Protocol and APR.
781.3 Scope of the APR.
781.4 U.S. Government requests for information needed to satisfy the 
          requirements of the APR or the Act.
781.5 Authority.

    Authority: United States Additional Protocol Implementation Act of 
2006, Pub. Law No. 109-401, 120 Stat. 2726 (December 18, 2006) (to be 
codified at 22 U.S.C. 8101-8181); Executive Order 13458 (February 4, 
2008).

    Source: 73 FR 65128, Oct. 31, 2008, unless otherwise noted.



Sec.  781.1  Definitions of terms used in the Additional Protocol
Regulations (APR).

    The following are definitions of terms used in parts 781 through 786 
of this subchapter (collectively known as the APR), unless otherwise 
noted:
    Access Point of Contact (A-POC). The individual at a location who 
will be notified by BIS immediately upon receipt of an IAEA request for 
complementary access to a location. BIS must be able to contact either 
the A-POC or alternate A-POC on a 24-hour basis. All interactions with 
the location for permitting and planning an IAEA complementary access 
will be conducted through the A-POC or the alternate A-POC, if the A-POC 
is unavailable.
    Act (The). The United States Additional Protocol Implementation Act 
of 2006 (Pub. L. 109-401).
    Additional Protocol. The Protocol Additional to the Agreement 
between the United States of America and the International Atomic Energy 
Agency for the Application of Safeguards in the United States of 
America, with Annexes, signed at Vienna on June 12, 1998 (T. Doc. 107-
097), known as the Additional Protocol.
    Additional Protocol Regulations (APR). Those regulations contained 
in 15 CFR parts 781 to 786 that were promulgated by the Department of 
Commerce to implement and enforce the Additional Protocol.
    Agreement State. Any State of the United States with which the U.S. 
Nuclear Regulatory Commission (NRC) has entered into an effective 
agreement under Subsection 274b of the Atomic Energy Act of 1954, as 
amended (42 U.S.C. 2011 et seq.).
    Beneficiation. The concentration of nuclear ores through physical or 
any other non-chemical methods.
    Bureau of Industry and Security (BIS). The Bureau of Industry and 
Security of the United States Department of Commerce, including Export 
Administration and Export Enforcement.
    Complementary Access. The exercise of the IAEA's access rights as 
set forth in Articles 4 to 6 of the Additional Protocol (see part 784 of 
the APR for requirements concerning the scope and conduct of 
complementary access).
    Complementary Access Notification. A written announcement issued by 
BIS to a person who is subject to the APR (e.g., the owner, operator, 
occupant, or agent in charge of a location that is subject to the APR as 
specified inSec. 781.3(a) of the APR) that informs this person about 
an impending complementary access in accordance with the requirements of 
part 784 of the APR.
    Host Team. The U.S. Government team that accompanies the 
International Atomic Energy Agency (IAEA) inspectors during 
complementary access, as provided for in the Additional Protocol and 
conducted in accordance with the provisions of the APR.
    Host Team Leader. The representative from the Department of Commerce 
who leads the Host Team during complementary access.
    International Atomic Energy Agency (IAEA). The United Nations 
organization, headquartered in Vienna, Austria, that serves as the 
official international verification authority for the implementation of 
safeguards agreements concluded pursuant to the Treaty on

[[Page 913]]

the Non-Proliferation of Nuclear Weapons (NPT).
    ITAR. The International Traffic in Arms Regulations (22 CFR Parts 
120-130), which are administered by the Directorate of Defense Trade 
Controls, U.S. Department of State.
    Location. Any geographical point or area declared or identified by 
the United States or specified by the IAEA (see ``location specified by 
the IAEA,'' as defined in this section).
    Location-specific environmental sampling. The collection of 
environmental samples (e.g., air, water, vegetation, soil, smears) at, 
and in the immediate vicinity of, a location specified by the IAEA for 
the purpose of assisting the IAEA to draw conclusions about the absence 
of undeclared nuclear material or nuclear activities at the specified 
location.
    Location-specific subsidiary arrangement. An agreement that sets 
forth procedures, which have been mutually agreed upon by the United 
States and the IAEA, for conducting complementary access at a specific 
reportable location. (Also see definition of ``subsidiary arrangement'' 
in this section.)
    Location specified by the IAEA. A location that is selected by the 
IAEA to:
    (1) Verify the absence of undeclared nuclear material or nuclear 
activities; or
    (2) Obtain information that the IAEA needs to amplify or clarify 
information contained in the U.S. declaration.
    Managed access. Procedures implemented by the Host Team during 
complementary access to prevent the dissemination of proliferation 
sensitive information, to meet safety or physical protection 
requirements, to protect proprietary or commercially sensitive 
information, or to protect activities of direct national security 
significance to the United States, including information associated with 
such activities, in accordance with the Additional Protocol.
    National Security Exclusion (NSE). The right of the United States, 
as specified under Article 1.b of the Additional Protocol, to exclude 
the application of the Additional Protocol when the United States 
Government determines that its application would result in access by the 
IAEA to activities of direct national security significance to the 
United States or to locations or information associated with such 
activities.
    NRC. The U.S. Nuclear Regulatory Commission.
    Nuclear fuel cycle-related research and development. Those 
activities that are specifically related to any process or system 
development aspect of any of the following:
    (1) Conversion of nuclear material;
    (2) Enrichment of nuclear material;
    (3) Nuclear fuel fabrication;
    (4) Reactors;
    (5) Critical facilities;
    (6) Reprocessing of nuclear fuel; or
    (7) Processing (not including repackaging or conditioning not 
involving the separation of elements, for storage or disposal) of 
intermediate or high-level waste containing plutonium, high enriched 
uranium or uranium-233.
    Nuclear Material. Any source material or special fissionable 
material, as follows.
    (1) Source material means uranium containing the mixture of isotopes 
occurring in nature; uranium depleted in the isotope 235; thorium; any 
of the foregoing in the form of metal, alloy, chemical, or concentrate. 
The term source material shall not be interpreted as applying to ore or 
ore residue.
    (2) Special fissionable material means plutonium 239; uranium 233; 
uranium enriched in the isotopes 235 or 233; any material containing one 
or more of the foregoing, but the term special fissionable material does 
not include source material.
    Person. 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.
    Report Point of Contact (R-POC). A person whom BIS may contact for 
the purposes of clarification of information provided in report(s) and 
for general information. The R-POC need not be the person who prepares 
the forms or certifies the report(s) for submission to

[[Page 914]]

BIS, but should be familiar with the content of the reports.
    Reportable Location. A location that must submit an Initial Report, 
Annual Update Report, or No Changes Report to BIS, in accordance with 
the provisions of the APR, is considered to be a ``reportable location'' 
with reportable activities (seeSec. 783.1(a) and (b) of the APR for 
nuclear fuel cycle-related activities subject to these reporting 
requirements).
    Reporting Code. A unique identification used for identifying a 
location where one or more nuclear fuel cycle-related activities subject 
to the reporting requirements of the APR are located.
    Subsidiary Arrangement (or General Subsidiary Arrangement). An 
agreement that sets forth procedures, which have been mutually agreed 
upon by the United States and the IAEA, for implementing the Additional 
Protocol, irrespective of the location. (Also see the definition of 
``location-specific subsidiary arrangement'' in this section.)
    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).
    Uranium Hard-Rock Mine. Means any of the following:
    (1) An area of land from which uranium is extracted in non-liquid 
form;
    (2) Private ways and roads appurtenant to such an area; and
    (3) Lands, excavations, underground passageways, shafts, slopes, 
tunnels and workings, structures, facilities, equipment, machines, 
tools, or other property including impoundments, retention dams, and 
tailings ponds, on the surface or underground, used in, or to be used 
in, or resulting from, the work of extracting such uranium ore from its 
natural deposits in non-liquid form, or if in liquid form, with workers 
underground, or used in, or to be used in, the concentration of such 
uranium ore, or the work of the uranium ore.
    Uranium Hard-Rock Mine (Closed-down). A uranium hard-rock mine where 
ore production has ceased and the mine or its infrastructure is not 
capable of further operation.
    Uranium Hard-Rock Mine (Operating). A uranium hard-rock mine where 
ore is produced on a routine basis.
    Uranium Hard-Rock Mine (Suspended). A uranium hard-rock mine where 
ore production has ceased, but the mine and its infrastructure are 
capable of further operation.
    U.S. declaration. The information submitted by the United States to 
the IAEA in fulfillment of U.S. obligations under the Additional 
Protocol.
    United States Government locations. Those locations owned and 
operated by a U.S. Government agency (including those operated by 
contractors to the agency), and those locations leased to and operated 
by a U.S. Government agency (including those operated by contractors to 
the agency). United States Government locations do not include locations 
owned by a U.S. Government agency and leased to a private organization 
or other entity such that the private organization or entity may 
independently decide the purposes for which the locations will be used.
    Wide-area environmental sampling. The collection of environmental 
samples (e.g., air, water, vegetation, soil, smears) at a set of 
locations specified by the IAEA for the purpose of assisting the IAEA to 
draw conclusions about the absence of undeclared nuclear material or 
nuclear activities over a wide area.
    You. The term ``you'' or ``your'' means any person. With regard to 
the reporting requirements of the APR, ``you'' refers to persons that 
have an obligation to report certain activities under the provisions of 
the APR. (Also see the definition of ``person'' in this section.)

[[Page 915]]



Sec.  781.2  Purposes of the Additional Protocol and APR.

    (a) General. The Additional Protocol is a supplement to the existing 
U.S.-IAEA Safeguards Agreement, which entered into force in 1980. It 
provides the IAEA with access to additional information about civil 
nuclear and nuclear-related items, materials, and activities and with 
physical access to reportable locations where nuclear facilities, 
materials, or ores are located (to ensure the absence of undeclared 
nuclear material and activities) and to other reportable locations and 
locations specified by the IAEA (to resolve questions or inconsistencies 
related to the U.S. Declaration). The Additional Protocol is based upon 
and is virtually identical to the IAEA Model Additional Protocol (see 
IAEA Information Circular, INFCIRC/540, at http://www.iaea.org/
Publications/Documents/Infcircs/index.html), except that it excludes 
IAEA access to activities with direct national security significance to 
the United States, or to locations or information associated with such 
activities, and provides for managed access in connection with those 
same activities and to locations or information associated with those 
activities.
    (b) Purposes of the Additional Protocol. The Additional Protocol is 
designed to enhance the effectiveness of the U.S.-IAEA Safeguards 
Agreement by providing the IAEA with information about aspects of the 
U.S. civil nuclear fuel cycle, including: Mining and concentration of 
nuclear ores; nuclear-related equipment manufacturing, assembly, or 
construction; imports, exports, and other activities involving certain 
source material (i.e., source material that has not reached the 
composition and purity suitable for fuel fabrication or for being 
isotopically enriched); imports and exports of specified nuclear 
equipment and non-nuclear material; nuclear fuel cycle-related research 
and development activities not involving nuclear material; and other 
activities involving nuclear material not currently subject to the U.S.-
IAEA Safeguards Agreement (e.g., nuclear material that has been exempted 
from safeguards pursuant to paragraph 37 of INFCIRC/153 (Corrected) June 
1972).
    (c) Purposes of the Additional Protocol Regulations. To fulfill 
certain obligations of the United States under the Additional Protocol, 
BIS has established the APR, which require the reporting of information 
to BIS (as described in parts 783 and 784 of the APR) from all persons 
and locations in the United States (as described inSec. 781.3(a) of 
the APR) with reportable activities. This information, together with 
information reported to other U.S. Government agencies and less any 
information to which the U.S. Government applies the national security 
exclusion, is aggregated into a U.S. declaration, which is submitted 
annually to the IAEA. The APR also provide for complementary access at 
such locations in accordance with the provisions in part 784 of the APR.



Sec.  781.3  Scope of the APR.

    The Additional Protocol Regulations or APR implement certain 
obligations of the United States under the Protocol Additional to the 
Agreement Between the United States of America and the International 
Atomic Energy Agency Concerning the Application of Safeguards in the 
United States of America, known as the Additional Protocol.
    (a) Persons and locations subject to the APR. The APR, promulgated 
by the Department of Commerce, shall apply to all persons and locations 
in the United States, except:
    (1) Locations that are subject to the regulatory authority of the 
Nuclear Regulatory Commission (NRC), pursuant to the NRC's regulatory 
jurisdiction under the Atomic Energy Act of 1954, as amended (42 U.S.C. 
2011 et seq.); and
    (2) The following United States Government locations (see definition 
inSec. 781.1 of the APR):
    (i) Department of Energy locations;
    (ii) Department of Defense locations;
    (iii) Central Intelligence Agency locations; and
    (iv) Department of State locations.
    (b) Activities subject to the APR. The activities that are subject 
to the recordkeeping and reporting requirements described in the APR are 
found in parts 783 and 784 of this subchapter (APR).

[[Page 916]]



Sec.  781.4  U.S. Government requests for information needed to 
satisfy the requirements of the APR or the Act.

    From time-to-time, one or more U.S. Government agencies (i.e., the 
Department of Defense, the Department of Energy, the NRC, or BIS) may 
contact a location to request information that the U.S. Government has 
determined to be necessary to satisfy certain requirements of the APR or 
the Act (e.g., clarification requests or vulnerability assessments). If 
the manner of providing such information is not specified in the APR, 
the agency in question will provide the location with appropriate 
instructions.



Sec.  781.5  Authority.

    The APR implement certain provisions of the Additional Protocol 
under the authority of the Additional Protocol Implementation Act of 
2006 (Pub. L. 109-401, 120 Stat. 2726 (December 18, 2006)). In Executive 
Order 13458 of February 4, 2008, 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 
declaration and complementary access requirements of the Additional 
Protocol and the Act.



PART 782_GENERAL INFORMATION REGARDING REPORTING REQUIREMENTS AND 
PROCEDURES--Table of Contents



Sec.
782.1 Overview of reporting requirements under the APR.
782.2 Persons responsible for submitting reports required under the APR.
782.3 Compliance review.
782.4 Assistance in determining your obligations.
782.5 Where to obtain APR report forms.
782.6 Where to submit reports.

    Authority: United States Additional Protocol Implementation Act of 
2006, Pub. Law No. 109-401, 120 Stat. 2726 (December 18, 2006) (to be 
codified at 22 U.S.C. 8101-8181); Executive Order 13458 (February 4, 
2008).

    Source: 73 FR 65128, Oct. 31, 2008, unless otherwise noted.



Sec.  782.1  Overview of reporting requirements under the APR.

    Part 783 of the APR describes the reporting requirements for certain 
activities specified in the APR. For each activity specified in part 
783, BIS may require that an Initial Report, an Annual Update Report, a 
No Changes Report, an Import Confirmation Report, a Supplemental 
Information Report, or an Amended Report be submitted to BIS. In 
addition, persons subject to the APR may be required to provide BIS with 
information needed to assist the IAEA in clarifying or verifying 
information specified in the U.S. declaration or in clarifying or 
amplifying information concerning the nature of the activities conducted 
at a location (see Sec.Sec. 783.1(d) and 784.1(b)(2) of the APR for 
requirements concerning a Supplemental Information Report). If, after 
reviewing part 783 of the APR, you determine that you are subject to one 
or more APR reporting requirements, you may obtain the appropriate forms 
by contacting BIS (seeSec. 782.5 of the APR). In addition, forms may 
be downloaded from the Internet at http://www.ap.gov.



Sec.  782.2  Persons responsible for submitting reports required
under the APR.

    The owner, operator, or senior management official of a location 
subject to the reporting requirements in part 783 of the APR is 
responsible for the submission of all required reports and documents in 
accordance with all applicable provisions of the APR.



Sec.  782.3  Compliance review.

    Periodically, BIS will request information from persons and 
locations subject to the APR to determine compliance with the reporting 
and recordkeeping requirements set forth herein. Information requested 
may relate to nuclear fuel cycle research and development activities not 
involving nuclear material, nuclear-related manufacturing, assembly or 
construction activities, or uranium hard-rock mining activities as 
described in part 783 of the APR. Any person or location subject to the 
APR and receiving such a request for information must submit a response 
to BIS within 30 calendar days

[[Page 917]]

of receipt of the request. If the requested information cannot be 
provided to BIS, the response must fully explain the reason why such 
information cannot be provided. If additional time is needed to collect 
the requested information, the person or location should request an 
extension of the submission deadline, before the expiration of the 30-
day time period set by BIS, and include an explanation for why an 
extension is needed. BIS will grant only one extension of the submission 
deadline. The maximum period of time for which BIS will grant an 
extension will be 30 days. Failure to respond to this request could lead 
to an investigation of the person's or location's reporting and 
recordkeeping procedures under the APR.



Sec.  782.4  Assistance in determining your obligations.

    (a) Determining if your activity is subject to reporting 
requirements. (1) If you need assistance in determining whether or not 
your activity is subject to the APR's reporting requirements, submit 
your written request for an activity determination to BIS. Such requests 
may be sent to BIS via facsimile to (202) 482-1731, e-mailed to 
[email protected], or hand delivered, submitted by courier, or mailed to 
BIS, in hard copy, to the following address: Treaty Compliance Division, 
Bureau of Industry and Security, U.S. Department of Commerce, Attn: AP 
Activity Determination, 14th Street and Pennsylvania Avenue, NW., Room 
4515, Washington, DC 20230. Your activity determination request should 
include the information indicated in paragraph (a)(2) of this section to 
ensure an accurate determination. Also include any additional 
information that would be relevant to the activity described in your 
request. 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 an activity 
determination. BIS will provide a written response to your activity 
determination request within 10 business days of receipt of the request.
    (2) You must include the following information when submitting an 
activity determination request to BIS:
    (i) Date of your request;
    (ii) Name of your organization and complete street address;
    (iii) Point of contact for your organization;
    (iv) Phone and facsimile number for your point of contact;
    (v) E-mail address for your point of contact, if you want BIS to 
provide an acknowledgment of receipt via e-mail; and
    (vi) Description of your activity in sufficient detail as to allow 
BIS to make an accurate determination.
    (b) Other inquiries. If you need assistance in interpreting the 
provisions of the APR or need assistance with APR report forms or 
complementary access issues, contact BIS's Treaty Compliance Division by 
phone at (202) 482-1001. If you require a written response from BIS, 
submit a detailed request to BIS that explains your question, issue, or 
request. Send the request to the address or facsimile included in 
paragraph (a) of this section, or e-mail the request to 
[email protected]. To ensure that your request is properly routed, 
include the notation, ``ATTENTION: APR Advisory Request,'' on your 
submission to BIS.



Sec.  782.5  Where to obtain APR report forms.

    Report forms required by the APR may be downloaded from the Internet 
at http://www.ap.gov. You also may obtain these forms by contacting: 
Treaty Compliance Division, Bureau of Industry and Security, U.S. 
Department of Commerce, Attn: Forms Request, 14th Street and 
Pennsylvania Avenue, NW., Room 4515, Washington, DC 20230, Telephone: 
(202) 482-1001.



Sec.  782.6  Where to submit reports.

    Reports required by the APR must be sent to BIS via facsimile to 
(202) 482-1731 or hand delivered , submitted by courier, or mailed to 
BIS, in hard copy, to the following address: Treaty Compliance Division, 
Bureau of Industry

[[Page 918]]

and Security, U.S. Department of Commerce, Attn: AP Reports, 14th Street 
and Pennsylvania Avenue, NW., Room 4515, Washington, DC 20230, 
Telephone: (202) 482-1001. Specific types of reports and due dates are 
outlined in supplement no. 1 to part 783 of the APR.



PART 783_CIVIL NUCLEAR FUEL CYCLE-RELATED ACTIVITIES NOT INVOLVING 
NUCLEAR MATERIALS--Table of Contents



Sec.
783.1 Reporting requirements.
783.2 Amended reports.
783.3 Reports containing information determined by BIS not to be 
          required by the APR.
783.4 Deadlines for submission of reports and amendments.

Supplement No. 1 to Part 783--Deadlines for Submission of Reports and 
          Amendments
Supplement No. 2 to Part 783--Manufacturing Activities
Supplement No. 3 to Part 783--List of Specified Equipment and Non-
          Nuclear Material for the Reporting of Imports

    Authority: United States Additional Protocol Implementation Act of 
2006, Pub. Law No. 109-401, 120 Stat. 2726 (December 18, 2006) (to be 
codified at 22 U.S.C. 8101-8181); Executive Order 13458 (February 4, 
2008).

    Source: 73 FR 65128, Oct. 31, 2008, unless otherwise noted.



Sec.  783.1  Reporting requirements.

    (a) Initial report. You must submit an Initial Report to BIS, no 
later than December 1, 2008 (see supplement no. 1 to this part), if you 
were engaged in any of the civil nuclear fuel cycle-related activities 
described in this paragraph (a) on October 31, 2008 or you were engaged 
in any such activities involving uranium hard-rock mines, including 
those that were closed down during calendar year 2008, (up to and 
including October 31, 2008). If you commenced any of the civil nuclear 
fuel cycle-related activities described in this paragraph (a) after 
October 31, 2008, you must submit an Initial Report on these activities 
to BIS no later than January 31 of the year following the calendar year 
in which the activities commenced (see supplement no. 1 to this part). 
You may report these activities as part of your Annual Update Report, in 
lieu of submitting a separate Initial Report, if you also have an Annual 
Update Report requirement that applies to the same location and covers 
the same reporting period (see paragraph (b) of this section). In order 
to satisfy the Initial Report requirements under this paragraph (a), you 
must complete and submit to BIS Form AP-1, Form AP-2, and other 
appropriate Forms, as provided in this paragraph (a).
    (1) Research and development activities not involving nuclear 
material. You must report to BIS any of the civil nuclear fuel cycle-
related research and development activities identified in paragraphs 
(a)(1)(i) and (a)(1)(ii) of this section. Activities subject to these 
APR reporting requirements include research and development activities 
related to safe equipment operations for a nuclear fuel cycle-related 
activity, but do not include activities related to theoretical or basic 
scientific research or to research and development on industrial 
radioisotope applications, medical, hydrological and agricultural 
applications, health and environmental effects and improved maintenance.
    (i) You must complete Form AP-3 and submit it to BIS, as provided in 
Sec.  782.6 of the APR, if you conducted any civil nuclear fuel cycle-
related research and development activities defined inSec. 781.1 of 
the APR that:
    (A) Did not involve nuclear material; and
    (B) Were funded, specifically authorized or controlled by, or 
conducted on behalf of, the United States.
    (ii) You must complete Form AP-4 and submit it to BIS, as provided 
inSec. 782.6 of the APR, if you conducted any civil nuclear fuel 
cycle-related research and development activities defined inSec. 781.1 
of the APR that:
    (A) Did not involve nuclear material;
    (B) Were specifically related to enrichment, reprocessing of nuclear 
fuel, or the processing of intermediate or high-level waste containing 
plutonium, high enriched uranium or uranium-233 (where ``processing'' 
involves the separation of elements); and
    (C) Were not funded, specifically authorized or controlled by, or 
conducted on behalf of, the United States.

[[Page 919]]

    (2) Civil nuclear-related manufacturing, assembly or construction 
activities. You must complete Form AP-5 and submit it to BIS, as 
provided inSec. 782.6 of the APR, if you engaged in any of the 
activities specified in supplement no. 2 to this part.
    (3) Uranium hard-rock mining and ore beneficiation activities. You 
must complete Form AP-6 and submit it to BIS, as provided inSec. 782.6 
of the APR, if your location is either a uranium hard-rock mine or an 
ore beneficiation plant that was in operating or suspended status (see 
Sec.  781.1 of the APR for the definitions of ``uranium hard-rock mine'' 
and uranium hard-rock mines in ``operating,'' ``suspended,'' or 
``closed-down'' status).
    (i) The Initial Report requirement for calendar year 2008 applies 
to:
    (A) Uranium hard-rock mines or ore beneficiation plants that were in 
operating or suspended status on October 31, 2008; and
    (B) Uranium hard-rock mines that have changed from operating or 
suspended status to closed-down status during calendar year 2008 (up to 
and including October 31, 2008). Mines that were closed down prior to 
calendar year 2008 and that remain in closed-down status do not have a 
reporting requirement.
    (ii) You are required to submit an Initial Report to BIS, for any 
calendar year that follows calendar year 2008, only if you commenced 
operations at a uranium hard-rock mine or an ore beneficiation plant 
during the previous calendar year (e.g., the commencement of operations 
would include, but not be limited to, the resumption of operations at a 
mine that was previously in ``closed-down'' status). Otherwise, see the 
Annual Update Report and No Changes Report requirements in paragraphs 
(b)(1) or (b)(2) of this section. For example, you must submit an Annual 
Update Report to indicate the closed-down status of any uranium hard-
rock mine that was indicated in your most recent report to be in either 
operating or suspended status, but at which you ceased operations during 
the previous calendar year.
    (b) Annual reporting requirements. You must submit either an Annual 
Update Report or a No Changes Report to BIS, as provided inSec. 782.6 
of the APR, if, during the previous calendar year, you continued to 
engage in civil nuclear fuel cycle-related activities at a location for 
which you submitted an Initial Report to BIS in accordance with the APR 
reporting requirements described in paragraph (a) of this section.
    (1) Annual Update Report. You must submit an Annual Update Report to 
BIS if you have updates or changes to report concerning your location's 
activities during the previous calendar year. When preparing your Annual 
Update Report, you must complete the same report forms that you used for 
submitting your Initial Report on these activities. However, additional 
report forms will be required if your location engaged in any civil 
nuclear fuel cycle-related activities described in paragraph (a) of this 
section that you did not previously report to BIS. The appropriate 
report forms for each type of activity that must be reported under the 
APR are identified in paragraphs (a)(1) through (a)(3) of this section. 
You must submit your Annual Update Report to BIS no later than January 
31 of the year following any calendar year in which the activities took 
place or there were changes to previously ``reported'' activities (see 
supplement no. 1 to this part).
    (2) No Changes Report. You may submit a No Changes Report, in lieu 
of an Annual Update Report, if you have no updates or changes concerning 
your location's activities (except the certifying official and dates 
signed and submitted) since your most recent report of activities to 
BIS. In order to satisfy the reporting requirements under this paragraph 
(b)(2), you must complete Form AP-16 and submit it to BIS, as provided 
inSec. 782.6 of the APR, no later than January 31 of the year 
following any calendar year in which there were no changes to previously 
``reported'' activities or location information (see supplement no. 1 to 
this part).
    (3) Additional guidance on annual reporting requirements. (i) If 
your Initial Report or your most recent Annual Update Report for a 
location indicates that all civil nuclear fuel cycle-related activities 
described therein have ceased at that location, and no other reportable 
activities have occurred during

[[Page 920]]

the previous calendar year, then you do not have a reporting requirement 
for the location under paragraph (b) of this section.
    (ii) If your location ceases to engage in activities subject to the 
APR reporting requirements described in paragraph (a) of this section, 
and you have not previously reported this to BIS, you must submit an 
Annual Update Report covering the calendar year in which you ceased to 
engage in such activities.
    (iii) Closed-down mines should be reported only once.
    (c) Import Confirmation Report. You must complete Forms AP-1, AP-2 
and AP-14 for each import of equipment or non-nuclear material 
identified in supplement no. 3 to this part and submit these forms to 
BIS, as provided inSec. 782.6 of the APR, if BIS sends you written 
notification requiring that you provide information concerning imports 
of such equipment and non-nuclear material. These Forms must be 
submitted within 30 calendar days of the date that you receive written 
notification of this requirement from BIS (see supplement no. 1 to this 
part). BIS will provide such notification when it receives a request 
from the IAEA for information concerning imports of this type of 
equipment or non-nuclear material. The IAEA may request this information 
to verify that you received specified equipment or non-nuclear material 
that was shipped to you by a person, organization, or government from a 
foreign country.
    (d) Supplemental Information Report. You must complete Forms AP-1, 
AP-2 and AP-15 and submit them to BIS, as provided inSec. 782.6 of the 
APR, if BIS sends you written notification requiring that you provide 
information about the activities conducted at your location, insofar as 
relevant for the purpose of safeguards. These Forms must be submitted 
within 15 calendar days of the date that you receive written 
notification of this requirement from BIS (see supplement no. 1 to this 
part). BIS will provide such notification only if the IAEA specifically 
requests amplification or clarification concerning any information 
provided in the U.S. Declaration based on your report(s).
    (e) Reportable location. A location that must submit an Initial 
Report, Annual Update Report, or No Changes Report to BIS, pursuant to 
the requirements of this section, is considered to be a reportable 
location with declared activities.



Sec.  783.2  Amended reports.

    In order for BIS to maintain accurate information on previously 
submitted reports, including information necessary for BIS to facilitate 
complementary access notifications or to communicate reporting 
requirements under the APR, Amended Reports are required under the 
circumstances described in paragraphs (a), (b), and (d) of this section. 
This section applies only to changes affecting Initial Reports and 
Annual Update Reports that were submitted to BIS in accordance with the 
requirements ofSec. 783.1(a) and (b) of the APR. The specific report 
forms that you must use to prepare and submit an Amended Report will 
depend upon the type of information that you are required to provide, 
pursuant to this section.
    (a) Changes to activity information. You must submit an Amended 
Report to BIS within 30 calendar days of the time that you discover an 
error or omission in your most recent Initial Report or Annual Update 
Report that involves information concerning an activity subject to the 
reporting requirements described inSec. 783.1(a) or (b) of the APR. 
Use Form AP-1, and any applicable report forms indicated for the 
activities identified inSec. 783.1(a) of the APR, to prepare your 
Amended Report. Submit your Amended Report to BIS, as provided inSec. 
782.6 of the APR.
    (b) Changes to organization and location information that must be 
maintained by BIS--(1) Internal organization changes. You must submit an 
Amended Report to BIS within 30 calendar days of any change in the 
following information (use Form AP-1 to prepare your Amended Report and 
submit it to BIS, as provided inSec. 782.6 of the APR):
    (i) Name of report point of contact (R-POC), including telephone 
number, facsimile number, and e-mail address;
    (ii) Name(s) of complementary access point(s) of contact (A-POC), 
including

[[Page 921]]

telephone number(s), facsimile number(s) and e-mail address(es);
    (iii) Organization name;
    (iv) Organization mailing address;
    (v) Location owner, including telephone number, and facsimile 
number; or
    (vi) Location operator, including telephone number, and facsimile 
number.
    (2) Change in ownership of organization. You must submit an Amended 
Report to BIS if you sold a reportable location or if your reportable 
location went out of business since submitting your most recent Initial 
Report, Annual Update Report, or No Changes Report to BIS. You must also 
submit an Amended Report to BIS if you purchased a reportable location 
that submitted an Initial Report, Annual Update Report, or No Changes 
Report to BIS for the most recent reporting period, as specified in 
Sec.  783.1(a) and (b) of the APR. Submit your Amended Report to BIS, as 
provided inSec. 782.6 of the APR, either before the effective date of 
the change in ownership or within 30 calendar days after the effective 
date of the change.
    (i) The following information must be included in an Amended Report 
submitted to BIS by an organization that is selling or that has sold a 
reportable location (use Forms AP-1 and AP-16 to prepare your Amended 
Report--address specific details regarding the sale of a reportable 
location in Form AP-16):
    (A) Name of seller (i.e., name of the organization selling a 
reportable location);
    (B) Reporting Code (this code will be assigned to your location and 
reported to you by BIS after receipt of your Initial Report);
    (C) Name of purchaser (i.e., name of the new organization/owner 
purchasing a reportable location) and name and address of contact person 
for the purchaser, if known;
    (D) Date of ownership transfer or change;
    (E) Additional details on the sale of the reportable location 
relevant to ownership or operational control over any portion of the 
reportable location (e.g., whether the entire location or only a portion 
of the reportable location has been sold to a new owner); and
    (F) Details regarding whether the new owner of a reportable location 
will submit the next report for the entire calendar year in which the 
ownership change occurred, or whether the previous owner and new owner 
will submit separate reports for the periods of the calendar year during 
which each owned the reportable location.
    (ii) The following information must be included in an Amended Report 
submitted to BIS by an organization that is purchasing or that has 
purchased a reportable location (use Forms AP-1 and AP-2 to prepare your 
Amended Report):
    (A) Name of purchaser (i.e., name of the new organization/owner 
purchasing a reportable location) and name and address of contact person 
for the purchaser;
    (B) Details on the purchase of the reportable location relevant to 
ownership or operational control over any portion of the reportable 
location (e.g., whether the purchaser intends to purchase and to 
maintain operational control over the entire location or only a portion 
of the reportable location); and
    (C) Details on whether the purchaser intends to continue existing 
civil nuclear fuel cycle-related activities at the reportable location 
or to cease such activities during the current reporting period.
    (iii) If the new owner of a reportable location is responsible for 
submitting a report that covers the entire calendar year in which the 
ownership change occurred, the new owner must obtain and maintain 
possession of the location's records covering the entire year, including 
those records for the period of the year during which the previous owner 
still owned the property.

    Note 1 toSec. 783.2(b): Amended Reports that are submitted to 
identify changes involving internal organization information or changes 
in ownership are used only for internal U.S. Government purposes and are 
not forwarded to the IAEA. BIS uses the information it obtains from 
Amended Reports to update contact information for internal oversight 
purposes and for IAEA complementary access notifications.
    Note 2 toSec. 783.2(b): For ownership changes, the reportable 
location will maintain its original Reporting Code, unless the location 
is sold to multiple owners, at which time BIS will assign a new 
Reporting Code.


[[Page 922]]


    (c) Non-substantive changes. If you discover one or more non-
substantive typographical errors in your Initial Report or Annual Update 
Report, after submitting the report to BIS, you are not required to 
submit an Amended Report to BIS. Instead, you may correct these errors 
when you submit your next Annual Update Report to BIS.
    (d) Amendments related to complementary access. If you are required 
to submit an Amended Report to BIS following the completion of 
complementary access (see Part 784 of the APR), BIS will notify you, in 
writing, of the information that must be amended pursuant toSec. 784.6 
of the APR. Complete and submit Form AP-1 (organization information) 
and/or the specific report forms required by section 783.1(a) or (b) of 
the APR, according to the type(s) of activities for which information is 
being requested. You must submit your Amended Report to BIS, as provided 
inSec. 782.6 of the APR, no later than 30 calendar days following your 
receipt of BIS's post complementary access letter.
    (e) Option for submitting amended reports in letter form. If you are 
required to submit an Amended Report to BIS, pursuant to paragraph (a), 
(b), or (d) of this section, BIS may permit you to submit your report in 
the form of a letter that contains all of the corrected information 
required under this section. Your letter must be submitted to BIS, at 
the address indicated inSec. 782.6 of the APR, no later than the 
applicable due date(s) indicated in this section (also see Supplement 
No. 1 to this Part).



Sec.  783.3  Reports containing information determined by BIS not
to be required by the APR.

    If you submit a report and BIS determines that none of the 
information contained therein is required by the APR, BIS will not 
process the report and will notify you, either electronically or in 
writing, explaining the basis for its decision. BIS will not maintain 
any record of the report. However, BIS will maintain a copy of the 
notification.



Sec.  783.4  Deadlines for submission of reports and amendments.

    Reports and amendments required under this part must be postmarked 
by the appropriate date identified in supplement no. 1 to this part 783. 
Required reports and amendments include those identified in paragraphs 
(a) through (g) of this section.
    (a) Initial Report: Submitted by a location that commenced one or 
more of the civil nuclear fuel cycle-related activities described in 
Sec.  783.1(a) of the APR during the previous calendar year, but that 
has not yet reported such activities to BIS. However, Initial Reports 
that are submitted to BIS during calendar year 2008 must describe only 
those activities in which you are engaged as of October 31, 2008, except 
that the description of activities involving uranium hard-rock mines 
must include any such mines that were closed down during calendar year 
2008 (up to and including October 31, 2008), as well as mines that were 
in either operating or suspended status on October 31, 2008 (seeSec. 
783.1(a)(3)(i) of the APR).
    (b) Annual Update Report: Submitted by a reportable location--this 
report describes changes to previously reported (i.e., declared) 
activities and any other reportable civil nuclear fuel cycle-related 
activities that took place at the location during the previous calendar 
year.
    (c) No Changes Report: Submitted by a reportable location, in lieu 
of an Annual Update Report, when there are no updates or changes to any 
information, excluding the certifying official and dates signed and 
submitted, since the previous report submitted by that location.
    (d) Import Confirmation Report: Submitted in response to a written 
notification from BIS, following a specific request by the IAEA.
    (e) Supplemental Information Report: Submitted in response to a 
written notification from BIS, following a specific request by the IAEA.
    (f) Amended Report: Submitted by a reportable location to report 
certain changes affecting the location's most recent Initial Report or 
Annual Update Report.

[[Page 923]]



 Sec. Supplement No. 1 to Part 783--Deadlines for Submission of Reports 
                             and Amendments

------------------------------------------------------------------------
             Reports               Applicable forms        Due dates
------------------------------------------------------------------------
Initial Report..................  Forms AP-1 and AP-  December 1, 2008
                                   2 and:              for:
                                  --AP-3 or AP-4 for  (1) Any activities
                                   R&D activities;.    in which you were
                                  --AP-5 for civil     engaged on
                                   nuclear-related     October 31, 2008
                                   manufacturing,      and
                                   assembly or        (2) uranium hard-
                                   construction; and.  rock mines that
                                  --AP-6 for mining    have changed from
                                   and ore             operating or
                                   beneficiation.      suspended status
                                                       to closed-down
                                                       status during
                                                       calendar year
                                                       2008 (up to and
                                                       including October
                                                       31, 2008).
                                                      For activities
                                                       commencing after
                                                       October 31, 2008,
                                                       Initial Reports
                                                       must be submitted
                                                       no later than
                                                       January 31 of the
                                                       year following
                                                       any calendar year
                                                       in which the
                                                       activities began,
                                                       unless you are
                                                       required to
                                                       submit an Annual
                                                       Update Report
                                                       because of on-
                                                       going previously
                                                       ``reported''
                                                       activities at the
                                                       same location--in
                                                       that case, you
                                                       may include the
                                                       new activities in
                                                       your Annual
                                                       Update Report,
                                                       instead of
                                                       submitting a
                                                       separate Initial
                                                       Report.
Annual Update Report............  Forms AP-1 and AP-  January 31 of the
                                   2 and:              year following
                                  --AP-3 or AP-4 for   any calendar year
                                   R&D activities;.    in which the
                                  --AP-5 for civil     activities took
                                   nuclear-related     place or there
                                   manufacturing,      were changes to
                                   assembly or         previously
                                   construction; and.  ``reported''
                                                       activities.
 
                                  --AP-6 for mining
                                   and ore
                                   beneficiation.
No Changes Report...............  Form AP-17........  January 31 of the
                                                       year following
                                                       any calendar year
                                                       in which there
                                                       were no changes
                                                       to previously
                                                       ``reported''
                                                       activities or
                                                       location
                                                       information.
Import Confirmation Report......  Forms AP-1, AP-2,   Within 30 calendar
                                   and AP-14.          days of receiving
                                                       notification from
                                                       BIS.
Supplemental Information Report.  Forms AP-1, AP-2,   Within 15 calendar
                                   and AP-15.          days of receiving
                                                       notification from
                                                       BIS.
Amended Report:                   Form AP-1 and       Amended report
--Report information............   appropriate         due:
--Organization and location        forms, as          --30 calendar days
 information.                      specified inSec.  after you
--Complementary access letter...     783.1 of the      discover an error
                                   APR, for the type   or omission in
                                   of report being     activity
                                   amended.            information
                                                       contained in your
                                                       most recent
                                                       report.
                                                      --30 calendar days
                                                       after a change in
                                                       company
                                                       information or
                                                       ownership of a
                                                       location.
                                                      --30 calendar days
                                                       after receipt of
                                                       a post-
                                                       complementary
                                                       access letter
                                                       from BIS.
------------------------------------------------------------------------



       Sec. Supplement No. 2 to Part 783--Manufacturing Activities

    The following constitute manufacturing activities that require the 
submission of a report to BIS, pursuant toSec. 783.1(a)(2) of the APR.
    (1) The manufacture of centrifuge rotor tubes or the assembly of gas 
centrifuges. Centrifuge rotor tubes means thin-walled cylinders as 
described in section 5.1.1(b) of supplement no. 3 to this part. Gas 
centrifuges means centrifuges as described in the Introductory Note to 
section 5.1 of supplement no. 3 to this part.
    (2) The manufacture of diffusion barriers. Diffusion barriers means 
thin, porous filters as described in section 5.3.1(a) of Supplement No. 
3 to this Part.
    (3) The manufacture or assembly of laser-based systems. Laser-based 
systems means systems incorporating those items as described in section 
5.7 of Supplement No. 3 to this Part.
    (4) The manufacture or assembly of electromagnetic isotope 
separators. Electromagnetic isotope separators means those items 
referred to in Section 5.9.1 of supplement no. 3 to this part containing 
ion sources as described in section 5.9.1(a) of supplement no. 3 to this 
part.
    (5) The manufacture or assembly of columns or extraction equipment. 
Columns or extraction equipment means those items as described in 
sections 5.6.1, 5.6.2, 5.6.3, 5.6.5, 5.6.6, 5.6.7, and 5.6.8 of 
Supplement No. 3 to this Part.
    (6) The manufacture of aerodynamic separation nozzles or vortex 
tubes. Aerodynamic separation nozzles or vortex tubes means separation 
nozzles and vortex tubes as described, respectively, in sections 5.5.1 
and 5.5.2 of Supplement No. 3 to this Part.
    (7) The manufacture or assembly of uranium plasma generation 
systems. Uranium plasma generation systems means systems for the 
generation of uranium plasma as described in section 5.8.3 of supplement 
no. 3 to this part.

[[Page 924]]

    (8) The manufacture of zirconium tubes. zirconium tubes means tubes 
as described in section 1.6 of supplement no. 3 to this part.
    (9) The manufacture or upgrading of heavy water or deuterium. Heavy 
water or deuterium means deuterium, heavy water (deuterium oxide) and 
any other deuterium compound in which the ratio of deuterium to hydrogen 
atoms exceeds 1:5000.
    (10) The manufacture of nuclear grade graphite. Nuclear grade 
graphite means graphite having a purity level better than 5 parts per 
million boron equivalent and with a density greater than 1.50 g/cm\3\;
    (11) The manufacture of flasks for irradiated fuel. A flask for 
irradiated fuel means a vessel for the transportation and/or storage of 
irradiated fuel that provides chemical, thermal and radiological 
protection, and dissipates decay heat during handling, transportation 
and storage.
    (12) The manufacture of reactor control rods. Reactor control rods 
means rods as described in section 1.4 of supplement no. 3 to this part.
    (13) The manufacture of critically safe tanks and vessels. 
Critically safe tanks and vessels means those items as described in 
sections 3.2 and 3.4 of supplement no. 3 to this part.
    (14) The manufacture of irradiated fuel element chopping machines. 
Irradiated fuel element chopping machines means equipment as described 
in section 3.1 of supplement no. 3 to this part.
    (15) The construction of hot cells. Hot cells means a cell or 
interconnected cells totaling at least 6 cubic meters in volume with 
shielding equal to or greater than the equivalent of 0.5 meters of 
concrete, with a density of 3.2 g/cm\3\ or greater, outfitted with 
equipment for remote operations.



 Sec. Supplement No. 3 to Part 783--List of Specified Equipment and Non-
              Nuclear Material for the Reporting of Imports

                   1. Reactors and equipment therefor

                     1.1. Complete nuclear reactors

    Nuclear reactors capable of operation so as to maintain a controlled 
self-sustaining fission chain reaction, excluding zero energy reactors, 
the latter being defined as reactors with a designed maximum rate of 
production of plutonium not exceeding 100 grams per year.

    Explanatory Note: A ``nuclear reactor'' basically 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 or come in direct contact with or control the primary 
coolant of the reactor core. It is not intended to exclude reactors 
which could reasonably be capable of modification to produce 
significantly more than 100 grams of plutonium per year. Reactors 
designed for sustained operation at significant power levels, regardless 
of their capacity for plutonium production, are not considered as ``zero 
energy reactors.''

                      1.2. Reactor pressure vessels

    Metal vessels, as complete units or as major shop-fabricated parts 
therefor, which are specially designed or prepared to contain the core 
of a nuclear reactor, as defined in section 1.1, and are capable of 
withstanding the operating pressure of the primary coolant.
    Explanatory Note: This is the list that the IAEA Board of Governors 
agreed at its meeting on 24 February 1993 would be used for the purpose 
of the voluntary reporting scheme, as subsequently amended by the Board. 
A top plate for a reactor pressure vessel is covered by this section 1.2 
as a major shop-fabricated part of a pressure vessel. Reactor internals 
(e.g., support columns and plates for the core and other vessel 
internals, control rod guide tubes, thermal shields, baffles, core grid 
plates, diffuser plates, etc.) are normally supplied by the reactor 
supplier. In some cases, certain internal support components are 
included in the fabrication of the pressure vessel. These items are 
sufficiently critical to the safety and reliability of the operation of 
the reactor (and, therefore, to the guarantees and liability of the 
reactor supplier), so that their supply, outside the basic supply 
arrangement for the reactor itself, would not be common practice. 
Therefore, although the separate supply of these unique, specially 
designed and prepared, critical, large and expensive items would not 
necessarily be considered as falling outside the area of concern, such a 
mode of supply is considered unlikely.

           1.3. Reactor fuel charging and discharging machines

    Manipulative equipment specially designed or prepared for inserting 
or removing fuel in a nuclear reactor, as defined in section 1.1 of this 
Supplement, capable of on-load operation or employing technically 
sophisticated positioning or alignment features to allow complex off-
load fueling operations such as those in which direct viewing of or 
access to the fuel is not normally available.

                        1.4. Reactor control rods

    Rods specially designed or prepared for the control of the reaction 
rate in a nuclear reactor as defined in section 1.1 of this Supplement.
    Explanatory Note: This item includes, in addition to the neutron 
absorbing part, the support or suspension structures therefor if 
supplied separately.

[[Page 925]]

                       1.5. Reactor pressure tubes

    Tubes which are specially designed or prepared to contain fuel 
elements and the primary coolant in a reactor, as defined in section 1.1 
of this supplement, at an operating pressure in excess of 5.1 MPa (740 
psi).

                          1.6. Zirconium tubes

    Zirconium metal and alloys in the form of tubes or assemblies of 
tubes, and in quantities exceeding 500 kg in any period of 12 months, 
specially designed or prepared for use in a reactor, as defined in 
section 1.1 of this supplement, and in which the relation of hafnium to 
zirconium is less than 1:500 parts by weight.

                       1.7. Primary coolant pumps

    Pumps specially designed or prepared for circulating the primary 
coolant for nuclear reactors, as defined in section 1.1 of this 
Supplement.
    Explanatory Note: Specially designed or prepared pumps may include 
elaborate sealed or multi-sealed systems to prevent leakage of primary 
coolant, canned-driven pumps, and pumps with inertial mass systems. This 
definition encompasses pumps certified to NC-1 or equivalent standards.

                  2. Non-nuclear materials for reactors

                     2.1. Deuterium and heavy water

    Deuterium, heavy water (deuterium oxide) and any other deuterium 
compound in which the ratio of deuterium to hydrogen atoms exceeds 
1:5000 for use in a nuclear reactor, as defined in section 1.1 of this 
supplement, in quantities exceeding 200 kg of deuterium atoms for any 
one recipient country in any period of 12 months.

                       2.2. Nuclear grade graphite

    Graphite having a purity level better than 5 parts per million boron 
equivalent and with a density greater than 1.50 g/cm\3\ for use in a 
nuclear reactor, as defined in section 1.1 of this Supplement, in 
quantities exceeding 3 x 10\4\ kg (30 metric tons) for any one recipient 
country in any period of 12 months.

    Note: For the purpose of reporting, the Government will determine 
whether or not the exports of graphite meeting the specifications of 
this section 2.2 are for nuclear reactor use.

    3. Plants for the reprocessing of irradiated fuel elements, and 
            equipment specially designed or prepared therefor

    Introductory Note: Reprocessing irradiated nuclear fuel separates 
plutonium and uranium from intensely radioactive fission products and 
other transuranic elements. Different technical processes can accomplish 
this separation. However, over the years Purex has become the most 
commonly used and accepted process. Purex involves the dissolution of 
irradiated nuclear fuel in nitric acid, followed by separation of the 
uranium, plutonium, and fission products by solvent extraction using a 
mixture of tributyl phosphate in an organic diluent. Purex facilities 
have process functions similar to each other, including: Irradiated fuel 
element chopping, fuel dissolution, solvent extraction, and process 
liquor storage. There may also be equipment for thermal denitration of 
uranium nitrate, conversion of plutonium nitrate to oxide or metal, and 
treatment of fission product waste liquor to a form suitable for long 
term storage or disposal. However, the specific type and configuration 
of the equipment performing these functions may differ between Purex 
facilities for several reasons, including the type and quantity of 
irradiated nuclear fuel to be reprocessed and the intended disposition 
of the recovered materials, and the safety and maintenance philosophy 
incorporated into the design of the facility. A ``plant for the 
reprocessing of irradiated fuel elements'' includes the equipment and 
components which normally come in direct contact with and directly 
control the irradiated fuel and the major nuclear material and fission 
product processing streams. These processes, including the complete 
systems for plutonium conversion and plutonium metal production, may be 
identified by the measures taken to avoid criticality (e.g., by 
geometry), radiation exposure (e.g., by shielding), and toxicity hazards 
(e.g., by containment). Items of equipment that are considered to fall 
within the meaning of the phrase ``and equipment specially designed or 
prepared'' for the reprocessing of irradiated fuel elements include:

             3.1. Irradiated fuel element chopping machines

    Introductory Note: This equipment breaches the cladding of the fuel 
to expose the irradiated nuclear material to dissolution. Specially 
designed metal cutting shears are the most commonly employed, although 
advanced equipment, such as lasers, may be used. Remotely operated 
equipment specially designed or prepared for use in a reprocessing 
plant, as identified in the introductory paragraph of this section, and 
intended to cut, chop or shear irradiated nuclear fuel assemblies, 
bundles or rods.

                             3.2. Dissolvers

    Introductory Note: Dissolvers normally receive the chopped-up spent 
fuel. In these critically safe vessels, the irradiated nuclear material 
is dissolved in nitric acid and the remaining hulls removed from the 
process stream. Critically safe tanks (e.g., small diameter, annular or 
slab tanks) specially designed or prepared for use in a reprocessing

[[Page 926]]

plant, as identified in the introductory paragraph of this section, 
intended for dissolution of irradiated nuclear fuel and which are 
capable of withstanding hot, highly corrosive liquid, and which can be 
remotely loaded and maintained.

        3.3. Solvent extractors and solvent extraction equipment

    Introductory Note: Solvent extractors both receive the solution of 
irradiated fuel from the dissolvers and the organic solution which 
separates the uranium, plutonium, and fission products. Solvent 
extraction equipment is normally designed to meet strict operating 
parameters, such as long operating lifetimes with no maintenance 
requirements or adaptability to easy replacement, simplicity of 
operation and control, and flexibility for variations in process 
conditions. Specially designed or prepared solvent extractors such as 
packed or pulse columns, mixer settlers or centrifugal contactors for 
use in a plant for the reprocessing of irradiated fuel. Solvent 
extractors must be resistant to the corrosive effect of nitric acid. 
Solvent extractors are normally fabricated to extremely high standards 
(including special welding and inspection and quality assurance and 
quality control techniques) out of low carbon stainless steels, 
titanium, zirconium, or other high quality materials.

                3.4. Chemical holding or storage vessels

    Introductory Note: Three main process liquor streams result from the 
solvent extraction step. Holding or storage vessels are used in the 
further processing of all three streams, as follows:
    (a) The pure uranium nitrate solution is concentrated by evaporation 
and passed to a denitration process where it is converted to uranium 
oxide. This oxide is re-used in the nuclear fuel cycle.
    (b) The intensely radioactive fission products solution is normally 
concentrated by evaporation and stored as a liquor concentrate. This 
concentrate may be subsequently evaporated and converted to a form 
suitable for storage or disposal.
    (c) The pure plutonium nitrate solution is concentrated and stored 
pending its transfer to further process steps. In particular, holding or 
storage vessels for plutonium solutions are designed to avoid 
criticality problems resulting from changes in concentration and form of 
this stream. Specially designed or prepared holding or storage vessels 
for use in a plant for the reprocessing of irradiated fuel. The holding 
or storage vessels must be resistant to the corrosive effect of nitric 
acid. The holding or storage vessels are normally fabricated of 
materials such as low carbon stainless steels, titanium or zirconium, or 
other high quality materials. Holding or storage vessels may be designed 
for remote operation and maintenance and may have the following features 
for control of nuclear criticality: (1) Walls or internal structures 
with a boron equivalent of at least two percent; (2) a maximum diameter 
of 175 mm (7 in) for cylindrical vessels; or (3) a maximum width of 75 
mm (3 in) for either a slab or annular vessel.

            3.5. Plutonium nitrate to oxide conversion system

    Introductory Note: In most reprocessing facilities, this final 
process involves the conversion of the plutonium nitrate solution to 
plutonium dioxide. The main functions involved in this process are: 
process feed storage and adjustment, precipitation and solid/liquor 
separation, calcination, product handling, ventilation, waste 
management, and process control. Complete systems specially designed or 
prepared for the conversion of plutonium nitrate to plutonium oxide, in 
particular adapted so as to avoid criticality and radiation effects and 
to minimize toxicity hazards.

             3.6. Plutonium oxide to metal production system

    Introductory Note: This process, which could be related to a 
reprocessing facility, involves the fluorination of plutonium dioxide, 
normally with highly corrosive hydrogen fluoride, to produce plutonium 
fluoride which is subsequently reduced using high purity calcium metal 
to produce metallic plutonium and a calcium fluoride slag. The main 
functions involved in this process are: fluorination (e.g., involving 
equipment fabricated or lined with a precious metal), metal reduction 
(e.g., employing ceramic crucibles), slag recovery, product handling, 
ventilation, waste management and process control. Complete systems 
specially designed or prepared for the production of plutonium metal, in 
particular adapted so as to avoid criticality and radiation effects and 
to minimize toxicity hazards.

             4. Plants for the fabrication of fuel elements

    A ``plant for the fabrication of fuel elements'' includes the 
equipment:
    (a) Which normally comes in direct contact with, or directly 
processes, or controls, the production flow of nuclear material, or
    (b) Which seals the nuclear material within the cladding.

5. Plants for the separation of isotopes of uranium and equipment, other 
  than analytical instruments, specially designed or prepared therefor

    Items of equipment that are considered to fall within the meaning of 
the phrase

[[Page 927]]

``equipment, other than analytical instruments, specially designed or 
prepared'' for the separation of isotopes of uranium include:

5.1. Gas centrifuges and assemblies and components specially designed or 
                   prepared for use in gas centrifuges

    Introductory Note: The gas centrifuge normally consists of a thin-
walled cylinder(s) of between 75 mm (3 in) and 400 mm (16 in) diameter 
contained in a vacuum environment and spun at high peripheral speed of 
the order of 300 m/s or more with its central axis vertical. In order to 
achieve high speed the materials of construction for the rotating 
components have to be of a high strength to density ratio and the rotor 
assembly, and hence its individual components, have to be manufactured 
to very close tolerances in order to minimize the unbalance. In contrast 
to other centrifuges, the gas centrifuge for uranium enrichment is 
characterized by having within the rotor chamber a rotating disc-shaped 
baffle(s) and a stationary tube arrangement for feeding and extracting 
the UF6 gas and featuring at least 3 separate channels, of 
which 2 are connected to scoops extending from the rotor axis towards 
the periphery of the rotor chamber. Also contained within the vacuum 
environment are a number of critical items which do not rotate and which 
although they are specially designed are not difficult to fabricate nor 
are they fabricated out of unique materials. A centrifuge facility 
however requires a large number of these components, so that quantities 
can provide an important indication of end use.

                       5.1.1. Rotating components

    (a) Complete rotor assemblies: Thin-walled cylinders, or a number of 
interconnected thin-walled cylinders, manufactured from one or more of 
the high strength to density ratio materials described in the 
Explanatory Note to section 5.1.1 of this supplement. If interconnected, 
the cylinders are joined together by flexible bellows or rings as 
described in section 5.1.1(c) of this supplement. The rotor is fitted 
with an internal baffle(s) and end caps, as described in section 
5.1.1(d) and (e) of this supplement, if in final form. However the 
complete assembly may be delivered only partly assembled.
    (b) Rotor tubes: Specially designed or prepared thin-walled 
cylinders with thickness of 12 mm (0.5 in) or less, a diameter of 
between 75 mm (3 in) and 400 mm (16 in), and manufactured from one or 
more of the high strength to density ratio materials described in the 
Explanatory Note to section 5.1.1 of this supplement.
    (c) Rings or Bellows: Components specially designed or prepared to 
give localized support to the rotor tube or to join together a number of 
rotor tubes. The bellows is a short cylinder of wall thickness 3 mm 
(0.12 in) or less, a diameter of between 75 mm (3 in) and 400 mm (16 
in), having a convolute, and manufactured from one of the high strength 
to density ratio materials described in the Explanatory Note to section 
5.1.1 of this supplement.
    (d) Baffles: Disc-shaped components of between 75 mm (3 in) and 400 
mm (16 in) diameter specially designed or prepared to be mounted inside 
the centrifuge rotor tube, in order to isolate the take-off chamber from 
the main separation chamber and, in some cases, to assist the 
UF6 gas circulation within the main separation chamber of the 
rotor tube, and manufactured from one of the high strength to density 
ratio materials described in the Explanatory Note to section 5.1.1 of 
this supplement.
    (e) Top caps/Bottom caps: Disc-shaped components of between 75 mm (3 
in) and 400 mm (16 in) diameter specially designed or prepared to fit to 
the ends of the rotor tube, and so contain the UF6 within the 
rotor tube, and in some cases to support, retain or contain as an 
integrated part an element of the upper bearing (top cap) or to carry 
the rotating elements of the motor and lower bearing (bottom cap), and 
manufactured from one of the high strength to density ratio materials 
described in the Explanatory Note to section 5.1.1 of this supplement.
    Explanatory Note: The materials used for centrifuge rotating 
components are:
    (a) Maraging steel capable of an ultimate tensile strength of 2.05 x 
10\9\ N/m\2\ (300,000 psi) or more;
    (b) Aluminum alloys capable of an ultimate tensile strength of 0.46 
x 10\9\ N/m\2\ (67,000 psi) or more;
    (c) Filamentary materials suitable for use in composite structures 
and having a specific modulus of 12.3 x 10\6\ m or greater and a 
specific ultimate tensile strength of 0.3 x 10\6\ m or greater 
(``Specific Modulus'' is the Young's Modulus in N/m\2\ divided by the 
specific weight in N/m\3\; ``Specific Ultimate Tensile Strength'' is the 
ultimate tensile strength in N/m\2\ divided by the specific weight in N/
m\3\).

                        5.1.2. Static components

    (a) Magnetic suspension bearings: Specially designed or prepared 
bearing assemblies consisting of an annular magnet suspended within a 
housing containing a damping medium. The housing will be manufactured 
from a UF6-resistant material (see Explanatory Note to 
section 5.2 of this supplement). The magnet couples with a pole piece or 
a second magnet fitted to the top cap described in section 5.1.1(e) of 
this Supplement. The magnet may be ring-shaped with a relation between 
outer and inner diameter smaller or equal to 1.6:1. The magnet may be in 
a form having an initial permeability of

[[Page 928]]

0.15 H/m (120,000 in CGS units) or more, or a remanence of 98.5% or 
more, or an energy product of greater than 80 kJ/m\3\ (10\7\ gauss-
oersteds). In addition to the usual material properties, it is a 
prerequisite that the deviation of the magnetic axes from the 
geometrical axes is limited to very small tolerances (lower than 0.1 mm 
or 0.004 in) or that homogeneity of the material of the magnet is 
specially called for.
    (b) Bearings/Dampers: Specially designed or prepared bearings 
comprising a pivot/cup assembly mounted on a damper. The pivot is 
normally a hardened steel shaft with a hemisphere at one end with a 
means of attachment to the bottom cap, described in section 5.1.1(e) of 
this Supplement, at the other. The shaft may however have a hydrodynamic 
bearing attached. The cup is pellet-shaped with a hemispherical 
indentation in one surface. These components are often supplied 
separately to the damper.
    (c) Molecular pumps: Specially designed or prepared cylinders having 
internally machined or extruded helical grooves and internally machined 
bores. Typical dimensions are as follows: 75 mm (3 in) to 400 mm (16 in) 
internal diameter, 10 mm (0.4 in) or more wall thickness, with the 
length equal to or greater than the diameter. The grooves are typically 
rectangular in cross-section and 2 mm (0.08 in) or more in depth.
    (d) Motor stators: Specially designed or prepared ring-shaped 
stators for high speed multiphase AC hysteresis (or reluctance) motors 
for synchronous operation within a vacuum in the frequency range of 600-
2000 Hz and a power range of 50-1000 VA. The stators consist of multi-
phase windings on a laminated low loss iron core comprised of thin 
layers typically 2.0 mm (0.08 in) thick or less.
    (e) Centrifuge housing/recipients: Components specially designed or 
prepared to contain the rotor tube assembly of a gas centrifuge. The 
housing consists of a rigid cylinder of wall thickness up to 30 mm (1.2 
in) with precision machined ends to locate the bearings and with one or 
more flanges for mounting. The machined ends are parallel to each other 
and perpendicular to the cylinder's longitudinal axis to within 0.05 
degrees or less. The housing may also be a honeycomb type structure to 
accommodate several rotor tubes. The housings are made of or protected 
by materials resistant to corrosion by UF6.
    (f) Scoops: Specially designed or prepared tubes of up to 12 mm (0.5 
in) internal diameter for the extraction of UF6 gas from within the 
rotor tube by a Pitot tube action (that is, with an aperture facing into 
the circumferential gas flow within the rotor tube, for example by 
bending the end of a radially disposed tube) and capable of being fixed 
to the central gas extraction system. The tubes are made of or protected 
by materials resistant to corrosion by UF6.

  5.2. Specially designed or prepared auxiliary systems, equipment and 
             components for gas centrifuge enrichment plants

    Introductory Note: The auxiliary systems, equipment and components 
for a gas centrifuge enrichment plant are the systems of plant needed to 
feed UF6 to the centrifuges, to link the individual centrifuges to each 
other to form cascades (or stages) to allow for progressively higher 
enrichments and to extract the ``product'' and ``tails'' UF6 from the 
centrifuges, together with the equipment required to drive the 
centrifuges or to control the plant. Normally UF6 is 
evaporated from the solid using heated autoclaves and is distributed in 
gaseous form to the centrifuges by way of cascade header pipework. The 
``product'' and ``tails'' UF6 gaseous streams flowing from 
the centrifuges are also passed by way of cascade header pipework to 
cold traps (operating at about 203 K (-70 [deg]C)) where they are 
condensed prior to onward transfer into suitable containers for 
transportation or storage. Because an enrichment plant consists of many 
thousands of centrifuges arranged in cascades there are many kilometers 
of cascade header pipework, incorporating thousands of welds with a 
substantial amount of repetition of layout. The equipment, components 
and piping systems are fabricated to very high vacuum and cleanliness 
standards.

        5.2.1. Feed systems/product and tails withdrawal systems

    Specially designed or prepared process systems including: Feed 
autoclaves (or stations), used for passing UF6 to the 
centrifuge cascades at up to 100 kPa (15 psi) and at a rate of 1 kg/h or 
more; desublimers (or cold traps) used to remove UF6 from the 
cascades at up to 3 kPa (0.5 psi) pressure. The desublimers are capable 
of being chilled to 203 K (-70 [deg]C) and heated to 343 K (70 [deg]C); 
``Product'' and ``Tails'' stations used for trapping UF6 into 
containers. This plant, equipment and pipework is wholly made of or 
lined with UF6-resistant materials (see Explanatory Note to 
section 5.2 of this Supplement) and is fabricated to very high vacuum 
and cleanliness standards.

                  5.2.2. Machine header piping systems

    Specially designed or prepared piping systems and header systems for 
handling UF6 within the centrifuge cascades. The piping 
network is normally of the ``triple'' header system with each centrifuge 
connected to each of the headers. There is thus a substantial amount of 
repetition in its form. It is wholly made of UF6-resistant 
materials (see Explanatory Note to section 5.2 of this supplement) and 
is fabricated to very high vacuum and cleanliness standards.

[[Page 929]]

          5.2.3. UF6 mass spectrometers/ion sources

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, product or 
tails, from UF6 gas streams and having all of the following 
characteristics:
    (a) Unit resolution for atomic mass unit greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel or 
nickel plated;
    (c) Electron bombardment ionization sources;
    (d) Having a collector system suitable for isotopic analysis.

                        5.2.4. Frequency changers

    Frequency changers (also known as converters or invertors) specially 
designed or prepared to supply motor stators (as defined under section 
5.1.2(d) of this supplement), or parts, components and sub-assemblies of 
such frequency changers having all of the following characteristics:
    (a) A multiphase output of 600 to 2000 Hz;
    (b) High stability (with frequency control better than 0.1%);
    (c) Low harmonic distortion (less than 2%); and
    (d) An efficiency of greater than 80%.
    Explanatory Note: The items listed in this section 5.2 either come 
into direct contact with the UF6 process gas or directly 
control the centrifuges and the passage of the gas from centrifuge to 
centrifuge and cascade to cascade. Materials resistant to corrosion by 
UF6 include stainless steel, aluminum, aluminum alloys, 
nickel or alloys containing 60% or more nickel.

5.3. Specially designed or prepared assemblies and components for use in 
                      gaseous diffusion enrichment

    Introductory Note: In the gaseous diffusion method of uranium 
isotope separation, the main technological assembly is a special porous 
gaseous diffusion barrier, heat exchanger for cooling the gas (which is 
heated by the process of compression), seal valves and control valves, 
and pipelines. Inasmuch as gaseous diffusion technology uses uranium 
hexafluoride (UF6), all equipment, pipeline and 
instrumentation surfaces (that come in contact with the gas) must be 
made of materials that remain stable in contact with UF6. A 
gaseous diffusion facility requires a number of these assemblies, so 
that quantities can provide an important indication of end use.

                    5.3.1. Gaseous diffusion barriers

    (a) Specially designed or prepared thin, porous filters, with a pore 
size of 100-1,000 [Aring] (angstroms), a thickness of 5 mm (0.2 in) or 
less, and for tubular forms, a diameter of 25 mm (1 in) or less, made of 
metallic, polymer or ceramic materials resistant to corrosion by 
UF6, and
    (b) Specially prepared compounds or powders for the manufacture of 
such filters. Such compounds and powders include nickel or alloys 
containing 60 percent or more nickel, aluminum oxide, or UF6-
resistant fully fluorinated hydrocarbon polymers having a purity of 99.9 
percent or more, a particle size less than 10 microns, and a high degree 
of particle size uniformity, which are specially prepared for the 
manufacture of gaseous diffusion barriers.

                        5.3.2. Diffuser housings

    Specially designed or prepared hermetically sealed cylindrical 
vessels greater than 300 mm (12 in) in diameter and greater than 900 mm 
(35 in) in length, or rectangular vessels of comparable dimensions, 
which have an inlet connection and two outlet connections all of which 
are greater than 50 mm (2 in) in diameter, for containing the gaseous 
diffusion barrier, made of or lined with UF6-resistant 
materials and designed for horizontal or vertical installation.

                   5.3.3. Compressors and gas blowers

    Specially designed or prepared axial, centrifugal, or positive 
displacement compressors, or gas blowers with a suction volume capacity 
of 1 m\3\/min or more of UF6, and with a discharge pressure 
of up to several hundred kPa (100 psi), designed for long-term operation 
in the UF6 environment with or without an electrical motor of 
appropriate power, as well as separate assemblies of such compressors 
and gas blowers. These compressors and gas blowers have a pressure ratio 
between 2:1 and 6:1 and are made of, or lined with, materials resistant 
to UF6.

                        5.3.4. Rotary shaft seals

    Specially designed or prepared vacuum seals, with seal feed and seal 
exhaust connections, for sealing the shaft connecting the compressor or 
the gas blower rotor with the driver motor so as to ensure a reliable 
seal against in-leaking of air into the inner chamber of the compressor 
or gas blower which is filled with UF6. Such seals are 
normally designed for a buffer gas in-leakage rate of less than 1000 
cm\3\/min (60 in\3\/min).

            5.3.5. Heat exchangers for cooling UF6

    Specially designed or prepared heat exchangers made of or lined with 
UF6-resistant materials (except stainless steel) or with 
copper or any combination of those metals, and intended for a leakage 
pressure change rate of less than 10 Pa (0.0015 psi) per hour under a 
pressure difference of 100 kPa (15 psi).

[[Page 930]]

  5.4. Specially designed or prepared auxiliary systems, equipment and 
           components for use in gaseous diffusion enrichment

    Introductory Note: The auxiliary systems, equipment and components 
for gaseous diffusion enrichment plants are the systems of plant needed 
to feed UF6 to the gaseous diffusion assembly, to link the 
individual assemblies to each other to form cascades (or stages) to 
allow for progressively higher enrichments and to extract the 
``product'' and ``tails'' UF6 from the diffusion cascades. 
Because of the high inertial properties of diffusion cascades, any 
interruption in their operation, and especially their shut-down, leads 
to serious consequences. Therefore, a strict and constant maintenance of 
vacuum in all technological systems, automatic protection from 
accidents, and precise automated regulation of the gas flow is of 
importance in a gaseous diffusion plant. All this leads to a need to 
equip the plant with a large number of special measuring, regulating and 
controlling systems. Normally UF6 is evaporated from 
cylinders placed within autoclaves and is distributed in gaseous form to 
the entry point by way of cascade header pipework. The ``product'' and 
``tails'' UF6 gaseous streams flowing from exit points are 
passed by way of cascade header pipework to either cold traps or to 
compression stations where the UF6 gas is liquefied prior to 
onward transfer into suitable containers for transportation or storage. 
Because a gaseous diffusion enrichment plant consists of a large number 
of gaseous diffusion assemblies arranged in cascades, there are many 
kilometers of cascade header pipework, incorporating thousands of welds 
with substantial amounts of repetition of layout. The equipment, 
components and piping systems are fabricated to very high vacuum and 
cleanliness standards.

        5.4.1. Feed systems/product and tails withdrawal systems

    Specially designed or prepared process systems, capable of operating 
at pressures of 300 kPa (45 psi) or less, including:
    (a) Feed autoclaves (or systems), used for passing UF6 to 
the gaseous diffusion cascades;
    (b) Desublimers (or cold traps) used to remove UF6 from 
diffusion cascades;
    (c) Liquefaction stations where UF6 gas from the cascade 
is compressed and cooled to form liquid UF6;
    (d) ``Product'' or ``tails'' stations used for transferring 
UF6 into containers.

                      5.4.2. Header piping systems

    Specially designed or prepared piping systems and header systems for 
handling UF6 within the gaseous diffusion cascades. This 
piping network is normally of the ``double'' header system with each 
cell connected to each of the headers.

                          5.4.3. Vacuum systems

    (a) Specially designed or prepared large vacuum manifolds, vacuum 
headers and vacuum pumps having a suction capacity of 5 m\3\/min (175 
ft\3\/min) or more.
    (b) Vacuum pumps specially designed for service in UF6-
bearing atmospheres made of, or lined with, aluminum, nickel, or alloys 
bearing more than 60% nickel. These pumps may be either rotary or 
positive, may have displacement and fluorocarbon seals, and may have 
special working fluids present.

               5.4.4. Special shut-off and control valves

    Specially designed or prepared manual or automated shut-off and 
control bellows valves made of UF6-resistant materials with a 
diameter of 40 to 1500 mm (1.5 to 59 in) for installation in main and 
auxiliary systems of gaseous diffusion enrichment plants.

          5.4.5. UF6 mass spectrometers/ion sources

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, product or 
tails, from UF6 gas streams and having all of the following 
characteristics:
    (a) Unit resolution for atomic mass unit greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel or 
nickel plated;
    (c) Electron bombardment ionization sources;
    (d) Collector system suitable for isotopic analysis.
    Explanatory Note: The items listed in this section 5.4 either come 
into direct contact with the UF6 process gas or directly 
control the flow within the cascade. All surfaces which come into 
contact with the process gas are wholly made of, or lined with, 
UF6-resistant materials. For the purposes of the sections in 
this supplement relating to gaseous diffusion items, the materials 
resistant to corrosion by UF6 include stainless steel, 
aluminum, aluminum alloys, aluminum oxide, nickel or alloys containing 
60% or more nickel and UF6-resistant fully fluorinated 
hydrocarbon polymers.

 5.5. Specially designed or prepared systems, equipment and components 
                for use in aerodynamic enrichment plants

    Introductory Note: In aerodynamic enrichment processes, a mixture of 
gaseous UF6 and light gas (hydrogen or helium) is compressed 
and then passed through separating elements wherein isotopic separation 
is accomplished by the generation of high centrifugal forces over a 
curved-wall geometry. Two processes of this type have been successfully 
developed: The separation nozzle process and the vortex tube process. 
For

[[Page 931]]

both processes the main components of a separation stage include 
cylindrical vessels housing the special separation elements (nozzles or 
vortex tubes), gas compressors and heat exchangers to remove the heat of 
compression. An aerodynamic plant requires a number of these stages, so 
that quantities can provide an important indication of end use. Since 
aerodynamic processes use UF6, all equipment, pipeline and 
instrumentation surfaces (that come in contact with the gas) must be 
made of materials that remain stable in contact with UF6.
    Explanatory Note: The items listed in section 5.5 of this Supplement 
either come into direct contact with the UF6 process gas or 
directly control the flow within the cascade. All surfaces which come 
into contact with the process gas are wholly made of or protected by 
UF6-resistant materials. For the purposes of the provisions 
of section 5.5 of this supplement that relate to aerodynamic enrichment 
items, the materials resistant to corrosion by UF6 include 
copper, stainless steel, aluminum, aluminum alloys, nickel or alloys 
containing 60% or more nickel and UF6-resistant fully 
fluorinated hydrocarbon polymers.

                        5.5.1. Separation nozzles

    Specially designed or prepared separation nozzles and assemblies 
thereof. The separation nozzles consist of slit-shaped, curved channels 
having a radius of curvature less than 1 mm (typically 0.1 to 0.05 mm), 
resistant to corrosion by UF6 and having a knife-edge within 
the nozzle that separates the gas flowing through the nozzle into two 
fractions.

                           5.5.2. Vortex tubes

    Specially designed or prepared vortex tubes and assemblies thereof. 
The vortex tubes are cylindrical or tapered, made of or protected by 
materials resistant to corrosion by UF6, having a diameter of 
between 0.5 cm and 4 cm, a length to diameter ratio of 20:1 or less and 
with one or more tangential inlets. The tubes may be equipped with 
nozzle-type appendages at either or both ends.
    Explanatory Note: The feed gas enters the vortex tube tangentially 
at one end or through swirl vanes or at numerous tangential positions 
along the periphery of the tube.

                   5.5.3. Compressors and gas blowers

    Specially designed or prepared axial, centrifugal or positive 
displacement compressors or gas blowers made of or protected by 
materials resistant to corrosion by UF6 and with a suction 
volume capacity of 2 m\3\/min or more of UF6/carrier gas 
(hydrogen or helium) mixture.
    Explanatory Note: These compressors and gas blowers typically have a 
pressure ratio between 1.2:1 and 6:1.

                        5.5.4. Rotary shaft seals

    Specially designed or prepared rotary shaft seals, with seal feed 
and seal exhaust connections, for sealing the shaft connecting the 
compressor rotor or the gas blower rotor with the driver motor so as to 
ensure a reliable seal against out-leakage of process gas or in-leakage 
of air or seal gas into the inner chamber of the compressor or gas 
blower which is filled with a UF6/carrier gas mixture.

                 5.5.5. Heat exchangers for gas cooling

    Specially designed or prepared heat exchangers made of or protected 
by materials resistant to corrosion by UF6.

                   5.5.6. Separation element housings

    Specially designed or prepared separation element housings, made of 
or protected by materials resistant to corrosion by UF6, for 
containing vortex tubes or separation nozzles.
    Explanatory Note: These housings may be cylindrical vessels greater 
than 300 mm in diameter and greater than 900 mm in length, or may be 
rectangular vessels of comparable dimensions, and may be designed for 
horizontal or vertical installation.

        5.5.7. Feed systems/product and tails withdrawal systems

    Specially designed or prepared process systems or equipment for 
enrichment plants made of or protected by materials resistant to 
corrosion by UF6, including:
    (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) Solidification or liquefaction stations used to remove 
UF6 from the enrichment process by compressing and converting 
UF6 to a liquid or solid form;
    (d) ``Product'' or ``tails'' stations used for transferring 
UF6 into containers.

                      5.5.8. Header piping systems

    Specially designed or prepared header piping systems, made of or 
protected by materials resistant to corrosion by UF6, for 
handling UF6 within the aerodynamic cascades. This piping 
network is normally of the ``double'' header design with each stage or 
group of stages connected to each of the headers.

                     5.5.9. Vacuum systems and pumps

    (a) Specially designed or prepared vacuum systems having a suction 
capacity of 5 m\3\/

[[Page 932]]

min or more, consisting of vacuum manifolds, vacuum headers and vacuum 
pumps, and designed for service in UF6-bearing atmospheres;
    (b) Vacuum pumps specially designed or prepared for service in 
UF6-bearing atmospheres and made of or protected by materials 
resistant to corrosion by UF6. These pumps may use 
fluorocarbon seals and special working fluids.

               5.5.10. Special shut-off and control valves

    Specially designed or prepared manual or automated shut-off and 
control bellows valves made of or protected by materials resistant to 
corrosion by UF6 with a diameter of 40 to 1500 mm for 
installation in main and auxiliary systems of aerodynamic enrichment 
plants.

          5.5.11. UF6 mass spectrometers/ion sources

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, ``product'' 
or ``tails,'' from UF6 gas streams and having all of the 
following characteristics:
    (a) Unit resolution for mass greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel or 
nickel plated;
    (c) Electron bombardment ionization sources;
    (d) Collector system suitable for isotopic analysis.

          5.5.12. UF6/carrier gas separation systems

    Specially designed or prepared process systems for separating 
UF6 from carrier gas (hydrogen or helium).
    Explanatory Note: These systems are designed to reduce the 
UF6 content in the carrier gas to 1 ppm or less and may 
incorporate equipment such as:
    (a) Cryogenic heat exchangers and cryoseparators capable of 
temperatures of -120 [deg]C or less, or
    (b) Cryogenic refrigeration units capable of temperatures of -120 
[deg]C or less, or
    (c) Separation nozzle or vortex tube units for the separation of 
UF6 from carrier gas, or
    (d) UF6 cold traps capable of temperatures of -20 [deg]C 
or less.

 5.6. Specially designed or prepared systems, equipment and components 
     for use in chemical exchange or ion exchange enrichment plants

    Introductory Note: The slight difference in mass between the 
isotopes of uranium causes small changes in chemical reaction equilibria 
that can be used as a basis for separation of the isotopes. Two 
processes have been successfully developed: Liquid-liquid chemical 
exchange and solid-liquid ion exchange. In the liquid-liquid chemical 
exchange process, immiscible liquid phases (aqueous and organic) are 
countercurrently contacted to give the cascading effect of thousands of 
separation stages. The aqueous phase consists of uranium chloride in 
hydrochloric acid solution; the organic phase consists of an extractant 
containing uranium chloride in an organic solvent. The contactors 
employed in the separation cascade can be liquid-liquid exchange columns 
(such as pulsed columns with sieve plates) or liquid centrifugal 
contactors. Chemical conversions (oxidation and reduction) are required 
at both ends of the separation cascade in order to provide for the 
reflux requirements at each end. A major design concern is to avoid 
contamination of the process streams with certain metal ions. Plastic, 
plastic-lined (including use of fluorocarbon polymers) and/or glass-
lined columns and piping are therefore used. In the solid-liquid ion-
exchange process, enrichment is accomplished by uranium adsorption/
desorption on a special, very fast-acting, ion-exchange resin or 
adsorbent. A solution of uranium in hydrochloric acid and other chemical 
agents is passed through cylindrical enrichment columns containing 
packed beds of the adsorbent. For a continuous process, a reflux system 
is necessary to release the uranium from the adsorbent back into the 
liquid flow so that ``product'' and ``tails'' can be collected. This is 
accomplished with the use of suitable reduction/oxidation chemical 
agents that are fully regenerated in separate external circuits and that 
may be partially regenerated within the isotopic separation columns 
themselves. The presence of hot concentrated hydrochloric acid solutions 
in the process requires that the equipment be made of or protected by 
special corrosion-resistant materials.

        5.6.1. Liquid-liquid exchange columns (Chemical exchange)

    Countercurrent liquid-liquid exchange columns having mechanical 
power input (i.e., pulsed columns with sieve plates, reciprocating plate 
columns, and columns with internal turbine mixers), specially designed 
or prepared for uranium enrichment using the chemical exchange process. 
For corrosion resistance to concentrated hydrochloric acid solutions, 
these columns and their internals are made of or protected by suitable 
plastic materials (such as fluorocarbon polymers) or glass. The stage 
residence time of the columns is designed to be short (30 seconds or 
less).

     5.6.2. Liquid-liquid centrifugal contactors (Chemical exchange)

    Liquid-liquid centrifugal contactors specially designed or prepared 
for uranium enrichment using the chemical exchange process. Such 
contactors use rotation to achieve dispersion of the organic and aqueous

[[Page 933]]

streams and then centrifugal force to separate the phases. For corrosion 
resistance to concentrated hydrochloric acid solutions, the contactors 
are made of or are lined with suitable plastic materials (such as 
fluorocarbon polymers) or are lined with glass. The stage residence time 
of the centrifugal contactors is designed to be short (30 seconds or 
less).

   5.6.3. Uranium reduction systems and equipment (Chemical exchange)

    (a) Specially designed or prepared electrochemical reduction cells 
to reduce uranium from one valence state to another for uranium 
enrichment using the chemical exchange process. The cell materials in 
contact with process solutions must be corrosion resistant to 
concentrated hydrochloric acid solutions.
    Explanatory Note: The cell cathodic compartment must be designed to 
prevent re-oxidation of uranium to its higher valence state. To keep the 
uranium in the cathodic compartment, the cell may have an impervious 
diaphragm membrane constructed of special cation exchange material. The 
cathode consists of a suitable solid conductor such as graphite.
    (b) Specially designed or prepared systems at the product end of the 
cascade for taking the U4+ out of the organic stream, 
adjusting the acid concentration and feeding to the electrochemical 
reduction cells.
    Explanatory Note: These systems consist of solvent extraction 
equipment for stripping the U4+ from the organic stream into 
an aqueous solution, evaporation and/or other equipment to accomplish 
solution pH adjustment and control, and pumps or other transfer devices 
for feeding to the electrochemical reduction cells. A major design 
concern is to avoid contamination of the aqueous stream with certain 
metal ions. Consequently, for those parts in contact with the process 
stream, the system is constructed of equipment made of or protected by 
suitable materials (such as glass, fluorocarbon polymers, polyphenyl 
sulfate, polyether sulfone, and resin-impregnated graphite).

           5.6.4. Feed preparation systems (Chemical exchange)

    Specially designed or prepared systems for producing high-purity 
uranium chloride feed solutions for chemical exchange uranium isotope 
separation plants.
    Explanatory Note: These systems consist of dissolution, solvent 
extraction and/or ion exchange equipment for purification and 
electrolytic cells for reducing the uranium U6+ or 
U4+ to U3+. These systems produce uranium chloride 
solutions having only a few parts per million of metallic impurities 
such as chromium, iron, vanadium, molybdenum and other bivalent or 
higher multi-valent cations. Materials of construction for portions of 
the system processing high-purity U3+ include glass, 
fluorocarbon polymers, polyphenyl sulfate or polyether sulfone plastic-
lined and resin-impregnated graphite.

          5.6.5. Uranium oxidation systems (Chemical exchange)

    Specially designed or prepared systems for oxidation of 
U3+ to U4+ for return to the uranium isotope 
separation cascade in the chemical exchange enrichment process.
    Explanatory Note: These systems may incorporate equipment such as:
    (a) Equipment for contacting chlorine and oxygen with the aqueous 
effluent from the isotope separation equipment and extracting the 
resultant U4+ into the stripped organic stream returning from 
the product end of the cascade;
    (b) Equipment that separates water from hydrochloric acid so that 
the water and the concentrated hydrochloric acid may be reintroduced to 
the process at the proper locations.

   5.6.6. Fast-reacting ion exchange resins/adsorbents (ion exchange)

    Fast-reacting ion-exchange resins or adsorbents specially designed 
or prepared for uranium enrichment using the ion exchange process, 
including porous macroreticular resins, and/or pellicular structures 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. These ion 
exchange resins/adsorbents have diameters of 0.2 mm or less and must be 
chemically resistant to concentrated hydrochloric acid solutions as well 
as physically strong enough so as not to degrade in the exchange 
columns. The resins/adsorbents are specially designed to achieve very 
fast uranium isotope exchange kinetics (exchange rate half-time of less 
than 10 seconds) and are capable of operating at a temperature in the 
range of 100 [deg]C to 200 [deg]C.

               5.6.7. Ion exchange columns (Ion exchange)

    Cylindrical columns greater than 1,000 mm in diameter for containing 
and supporting packed beds of ion exchange resin/adsorbent, specially 
designed or prepared for uranium enrichment using the ion exchange 
process. These columns are made of or protected by materials (such as 
titanium or fluorocarbon plastics) resistant to corrosion by 
concentrated hydrochloric acid solutions and are capable of operating at 
a temperature in the range of 100 [deg]C to 200 [deg]C and pressures 
above 0.7 MPa (102 psia).

[[Page 934]]

            5.6.8. Ion exchange reflux systems (Ion exchange)

    (a) Specially designed or prepared chemical or electrochemical 
reduction systems for regeneration of the chemical reducing agent(s) 
used in ion exchange uranium enrichment cascades.
    (b) Specially designed or prepared chemical or electrochemical 
oxidation systems for regeneration of the chemical oxidizing agent(s) 
used in ion exchange uranium enrichment cascades.
    Explanatory Note: The ion exchange enrichment process may use, for 
example, trivalent titanium (Ti3+) as a reducing cation in 
which case the reduction system would regenerate Ti3+ by 
reducing Ti4+. The process may use, for example, trivalent 
iron (Fe3+) as an oxidant in which case the oxidation system 
would regenerate Fe3+ by oxidizing Fe2+.

 5.7. Specially designed or prepared systems, equipment and components 
                for use in laser-based enrichment plants

    Introductory Note: Present systems for enrichment processes using 
lasers fall into two categories: Those in which the process medium is 
atomic uranium vapor and those in which the process medium is the vapor 
of a uranium compound. Common nomenclature for such processes include: 
First category--atomic vapor laser isotope separation (AVLIS or SILVA); 
second category--molecular laser isotope separation (MLIS or MOLIS) and 
chemical reaction by isotope selective laser activation (CRISLA). The 
systems, equipment and components for laser enrichment plants embrace:
    (a) Devices to feed uranium-metal vapor (for selective photo-
ionization) or devices to feed the vapor of a uranium compound (for 
photo-dissociation or chemical activation);
    (b) Devices to collect enriched and depleted uranium metal as 
``product'' and ``tails'' in the first category, and devices to collect 
dissociated or reacted compounds as ``product'' and unaffected material 
as ``tails'' in the second category;
    (c) Process laser systems to selectively excite the uranium-235 
species; and
    (d) Feed preparation and product conversion equipment. The 
complexity of the spectroscopy of uranium atoms and compounds may 
require incorporation of any of a number of available laser 
technologies.
    Explanatory Note: Many of the items listed in section 5.7 of this 
supplement come into direct contact with uranium metal vapor or liquid 
or with process gas consisting of UF6 or a mixture of 
UF6 and other gases. All surfaces that come into contact with 
the uranium or UF6 are wholly made of or protected by 
corrosion-resistant materials. For the purposes of the provisions in 
section 5.7 of this supplement that relate to laser-based enrichment 
items, the materials resistant to corrosion by the vapor or liquid of 
uranium metal or uranium alloys include yttria-coated graphite and 
tantalum; and the materials resistant to corrosion by UF6 
include copper, stainless steel, aluminum, aluminum alloys, nickel or 
alloys containing 60% or more nickel and UF6-resistant fully 
fluorinated hydrocarbon polymers.

               5.7.1. Uranium vaporization systems (AVLIS)

    Specially designed or prepared uranium vaporization systems which 
contain high-power strip or scanning electron beam guns with a delivered 
power on the target of more than 2.5 kW/cm.

          5.7.2. Liquid uranium metal handling systems (AVLIS)

    Specially designed or prepared liquid metal handling systems for 
molten uranium or uranium alloys, consisting of crucibles and cooling 
equipment for the crucibles.
    Explanatory Note: The crucibles and other parts of this system that 
come into contact with molten uranium or uranium alloys are made of or 
protected by materials of suitable corrosion and heat resistance. 
Suitable materials include tantalum, yttria-coated graphite, graphite 
coated with other rare earth oxides or mixtures thereof.

 5.7.3. Uranium metal `product' and `tails' collector assemblies (AVLIS)

    Specially designed or prepared ``product'' and ``tails'' collector 
assemblies for uranium metal in liquid or solid form.
    Explanatory Note: Components for these assemblies are made of or 
protected by materials resistant to the heat and corrosion of uranium 
metal vapor or liquid (such as yttria-coated graphite or tantalum) and 
may include pipes, valves, fittings, ``gutters,'' feed-throughs, heat 
exchangers and collector plates for magnetic, electrostatic or other 
separation methods.

                5.7.4. Separator module housings (AVLIS)

    Specially designed or prepared cylindrical or rectangular vessels 
for containing the uranium metal vapor source, the electron beam gun, 
and the ``product'' and ``tails'' collectors.
    Explanatory Note: These housings have multiplicity of ports for 
electrical and water feed-throughs, laser beam windows, vacuum pump 
connections and instrumentation diagnostics and monitoring. They have 
provisions for opening and closure to allow refurbishment of internal 
components.

               5.7.5. Supersonic expansion nozzles (MLIS)

    Specially designed or prepared supersonic expansion nozzles for 
cooling mixtures of

[[Page 935]]

UF6 and carrier gas to 150 K or less and which are corrosion 
resistant to UF6.

         5.7.6. Uranium pentafluoride product collectors (MLIS)

    Specially designed or prepared uranium pentafluoride 
(UF5) solid product collectors consisting of filter, impact, 
or cyclone-type collectors, or combinations thereof, and which are 
corrosion resistant to the UF5/UF6 environment.

          5.7.7. UF6/carrier gas compressors (MLIS)

    Specially designed or prepared compressors for UF6/
carrier gas mixtures, designed for long term operation in a 
UF6 environment. The components of these compressors that 
come into contact with process gas are made of or protected by materials 
resistant to corrosion by UF6.

                    5.7.8. Rotary shaft seals (MLIS)

    Specially designed or prepared rotary shaft seals, with seal feed 
and seal exhaust connections, for sealing the shaft connecting the 
compressor rotor with the driver motor so as to ensure a reliable seal 
against out-leakage of process gas or in-leakage of air or seal gas into 
the inner chamber of the compressor which is filled with a 
UF6/carrier gas mixture.

                   5.7.9. Fluorination systems (MLIS)

    Specially designed or prepared systems for fluorinating 
UF5 (solid) to UF6 (gas).
    Explanatory Note: These systems are designed to fluorinate the 
collected UF5 powder to UF6 for subsequent 
collection in product containers or for transfer as feed to MLIS units 
for additional enrichment. In one approach, the fluorination reaction 
may be accomplished within the isotope separation system to react and 
recover directly off the ``product'' collectors. In another approach, 
the UF5 powder may be removed/transferred from the 
``product'' collectors into a suitable reaction vessel (e.g., fluidized-
bed reactor, screw reactor or flame tower) for fluorination. In both 
approaches, equipment for storage and transfer of fluorine (or other 
suitable fluorinating agents) and for collection and transfer of 
UF6 are used.

      5.7.10. UF6 mass spectrometers/ion sources (MLIS)

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, 
``product,'' or ``tails'' from UF6 gas streams and having all 
of the following characteristics:
    (a) Unit resolution for mass greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel or 
nickel plated;
    (c) Electron bombardment ionization sources; and
    (d) Collector system suitable for isotopic analysis.

    5.7.11. Feed systems/product and tails withdrawal systems (MLIS)

    Specially designed or prepared process systems or equipment for 
enrichment plants made of or protected by materials resistant to 
corrosion by UF6, including:
    (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) Solidification or liquefaction stations used to remove 
UF6 from the enrichment process by compressing and converting 
UF6 to a liquid or solid form;
    (d) ``Product'' or ``tails'' stations used for transferring 
UF6 into containers.

      5.7.12. UF6/carrier gas separation systems (MLIS)

    Specially designed or prepared process systems for separating 
UF6 from carrier gas. The carrier gas may be nitrogen, argon, 
or other gas.
    Explanatory Note: These systems may incorporate equipment such as:
    (a) Cryogenic heat exchangers or cryoseparators capable of 
temperatures of -120 [deg]C or less, or
    (b) Cryogenic refrigeration units capable of temperatures of -120 
[deg]C or less, or
    (c) UF6 cold traps capable of temperatures of -20 [deg]C 
or less.

             5.7.13. Laser systems (AVLIS, MLIS and CRISLA)

    Lasers or laser systems specially designed or prepared for the 
separation of uranium isotopes.
    Explanatory Note: The laser system for the AVLIS process usually 
consists of two lasers: A copper vapor laser and a dye laser. The laser 
system for MLIS usually consists of a CO2 or excimer laser 
and a multi-pass optical cell with revolving mirrors at both ends. 
Lasers or laser systems for both processes require a spectrum frequency 
stabilizer for operation over extended periods of time.

 5.8. Specially designed or prepared systems, equipment and components 
             for use in plasma separation enrichment plants

    Introductory Note: In the plasma separation process, a plasma of 
uranium ions passes through an electric field tuned to the U-235 ion 
resonance frequency so that they preferentially absorb energy and 
increase the diameter of their corkscrew-like orbits. Ions with a large-
diameter path are trapped to produce a product enriched in U-235. The 
plasma, which is made by ionizing uranium vapor, is contained in a 
vacuum chamber

[[Page 936]]

with a high-strength magnetic field produced by a superconducting 
magnet. The main technological systems of the process include the 
uranium plasma generation system, the separator module with 
superconducting magnet and metal removal systems for the collection of 
``product'' and ``tails.''

               5.8.1. Microwave power sources and antennae

    Specially designed or prepared microwave power sources and antennae 
for producing or accelerating ions and having the following 
characteristics: Greater than 30 GHz frequency and greater than 50 kW 
mean power output for ion production.

                       5.8.2. Ion excitation coils

    Specially designed or prepared radio frequency ion excitation coils 
for frequencies of more than 100 kHz and capable of handling more than 
40 kW mean power.

                5.8.3. Uranium plasma generation systems

    Specially designed or prepared systems for the generation of uranium 
plasma, which may contain high-power strip or scanning electron beam 
guns with a delivered power on the target of more than 2.5 kW/cm.

              5.8.4. Liquid uranium metal handling systems

    Specially designed or prepared liquid metal handling systems for 
molten uranium or uranium alloys, consisting of crucibles and cooling 
equipment for the crucibles, power supply system, the ion source high-
voltage power supply system, the vacuum system, and extensive chemical 
handling systems for recovery of product and cleaning/recycling of 
components.

                5.9.1. Electromagnetic isotope separators

    Electromagnetic isotope separators specially designed or prepared 
for the separation of uranium isotopes, and equipment and components 
therefor, including:
    (a) Ion sources: Specially designed or prepared single or multiple 
uranium ion sources consisting of a vapor source, ionizer, and beam 
accelerator, constructed of suitable materials such as graphite, 
stainless steel, or copper, and capable of providing a total ion beam 
current of 50 mA or greater;
    (b) Ion collectors: Collector plates consisting of two or more slits 
and pockets specially designed or prepared for collection of enriched 
and depleted uranium ion beams and constructed of suitable materials 
such as graphite or stainless steel;
    (c) Vacuum housings: Specially designed or prepared vacuum housings 
for uranium electromagnetic separators, constructed of suitable non-
magnetic materials such as stainless steel and designed for operation at 
pressures of 0.1 Pa or lower;
    Explanatory Note: The housings are specially designed to contain the 
ion sources, collector plates and water-cooled liners and have provision 
for diffusion pump connections and opening and closure for removal and 
reinstallation of these components.
    (d) Magnet pole pieces: Specially designed or prepared magnet pole 
pieces having a diameter greater than 2 m used to maintain a constant 
magnetic field within an electromagnetic isotope separator and to 
transfer the magnetic field between adjoining separators.

                   5.9.2. High voltage power supplies

    Specially designed or prepared high-voltage power supplies for ion 
sources, having all of the following characteristics: capable of 
continuous operation, output voltage of 20,000 V or greater, output 
current of 1 A or greater, and voltage regulation of better than 0.01% 
over a time period of 8 hours.

                      5.9.3. Magnet power supplies

    Specially designed or prepared high-power, direct current magnet 
power supplies having all of the following characteristics: capable of 
continuously producing a current output of 500 A or greater at a voltage 
of 100 V or greater and with a current or voltage regulation better than 
0.01% over a period of 8 hours.

  6. Plants for the production of heavy water, deuterium and deuterium 
     compounds and equipment specially designed or prepared therefor

    Introductory Note: Heavy water can be produced by a variety of 
processes. However, the two processes that have proven to be 
commercially viable are the water-hydrogen sulphide exchange process (GS 
process) and the ammonia-hydrogen exchange process. The GS process is 
based upon the exchange of hydrogen and deuterium between water and 
hydrogen sulphide within a series of towers which are operated with the 
top section cold and the bottom section hot. Water flows down the towers 
while the hydrogen sulphide gas circulates from the bottom to the top of 
the towers. A series of perforated trays are used to promote mixing 
between the gas and the water. Deuterium migrates to the water at low 
temperatures and to the hydrogen sulphide at high temperatures. Gas or 
water, enriched in deuterium, is removed from the first stage towers at 
the junction of the hot and cold sections and the process is repeated in 
subsequent stage towers. The product of the last stage, water enriched 
up to 30% in deuterium, is sent to a distillation unit to produce 
reactor grade heavy water, i.e., 99.75% deuterium oxide. The ammonia-
hydrogen exchange process can extract deuterium from synthesis gas 
through contact with liquid ammonia in the presence of a

[[Page 937]]

catalyst. The synthesis gas is fed into exchange towers and to an 
ammonia converter. Inside the towers the gas flows from the bottom to 
the top while the liquid ammonia flows from the top to the bottom. The 
deuterium is stripped from the hydrogen in the synthesis gas and 
concentrated in the ammonia. The ammonia then flows into an ammonia 
cracker at the bottom of the tower while the gas flows into an ammonia 
converter at the top. Further enrichment takes place in subsequent 
stages and reactor grade heavy water is produced through final 
distillation. The synthesis gas feed can be provided by an ammonia plant 
that, in turn, can be constructed in association with a heavy water 
ammonia-hydrogen exchange plant. The ammonia-hydrogen exchange process 
can also use ordinary water as a feed source of deuterium.
    Many of the key equipment items for heavy water production plants 
using GS or the ammonia-hydrogen exchange processes are common to 
several segments of the chemical and petroleum industries. This is 
particularly so for small plants using the GS process. However, few of 
the items are available ``off-the-shelf.'' The GS and ammonia-hydrogen 
processes require the handling of large quantities of flammable, 
corrosive and toxic fluids at elevated pressures. Accordingly, in 
establishing the design and operating standards for plants and equipment 
using these processes, careful attention to the materials selection and 
specifications is required to ensure long service life with high safety 
and reliability factors. The choice of scale is primarily a function of 
economics and need. Thus, most of the equipment items would be prepared 
according to the requirements of the customer. Finally, it should be 
noted that, in both the GS and the ammonia-hydrogen exchange processes, 
items of equipment which individually are not specially designed or 
prepared for heavy water production can be assembled into systems which 
are specially designed or prepared for producing heavy water. The 
catalyst production system used in the ammonia-hydrogen exchange process 
and water distillation systems used for the final concentration of heavy 
water to reactor-grade in either process are examples of such systems. 
The items of equipment which are specially designed or prepared for the 
production of heavy water utilizing either the water-hydrogen sulphide 
exchange process or the ammonia-hydrogen exchange process include the 
following:

              6.1. Water-hydrogen sulphide exchange towers

    Exchange towers fabricated from fine carbon steel (such as ASTM 
A516) with diameters of 6 m (20 ft) to 9 m (30 ft), capable of operating 
at pressures greater than or equal to 2 MPa (300 psi) and with a 
corrosion allowance of 6 mm or greater, specially designed or prepared 
for heavy water production utilizing the water-hydrogen sulphide 
exchange process.

                      6.2. Blowers and compressors

    Single stage, low head (i.e., 0.2 MPa or 30 psi) centrifugal blowers 
or compressors for hydrogen-sulphide gas circulation (i.e., gas 
containing more than 70% H2S) specially designed or prepared 
for heavy water production utilizing the water-hydrogen sulphide 
exchange process. These blowers or compressors have a throughput 
capacity greater than or equal to 56 m\3\/second (120,000 SCFM) while 
operating at pressures greater than or equal to 1.8 MPa (260 psi) 
suction and have seals designed for wet H2S service.

                  6.3. Ammonia-hydrogen exchange towers

    Ammonia-hydrogen exchange towers greater than or equal to 35 m 
(114.3 ft) in height with diameters of 1.5 m (4.9 ft) to 2.5 m (8.2 ft) 
capable of operating at pressures greater than 15 MPa (2225 psi) 
specially designed or prepared for heavy water production utilizing the 
ammonia-hydrogen exchange process. These towers also have at least one 
flanged axial opening of the same diameter as the cylindrical part 
through which the tower internals can be inserted or withdrawn.

                  6.4. Tower internals and stage pumps

    Tower internals and stage pumps specially designed or prepared for 
towers for heavy water production utilizing the ammonia-hydrogen 
exchange process. Tower internals include specially designed stage 
contactors which promote intimate gas/liquid contact. Stage pumps 
include specially designed submersible pumps for circulation of liquid 
ammonia within a contacting stage internal to the stage towers.

                          6.5. Ammonia crackers

    Ammonia crackers with operating pressures greater than or equal to 3 
MPa (450 psi) specially designed or prepared for heavy water production 
utilizing the ammonia-hydrogen exchange process.

                   6.6. Infrared absorption analyzers

    Infrared absorption analyzers capable of ``on-line'' hydrogen/
deuterium ratio analysis where deuterium concentrations are equal to or 
greater than 90%.

                         6.7. Catalytic burners

    Catalytic burners for the conversion of enriched deuterium gas into 
heavy water specially designed or prepared for heavy water production 
utilizing the ammonia-hydrogen exchange process.

[[Page 938]]

7. Plants for the conversion of uranium and equipment specially designed 
                          or prepared therefor

    Introductory Note: Uranium conversion plants and systems may perform 
one or more transformations from one uranium chemical species to 
another, including: conversion of uranium ore concentrates to 
UO3, conversion of UO3 to UO2, 
conversion of uranium oxides to UF4 or UF6, 
conversion of UF4 to UF6, conversion of 
UF6 to UF4, conversion of UF4 to 
uranium metal, and conversion of uranium fluorides to UO2. 
Many of the key equipment items for uranium conversion plants are common 
to several segments of the chemical process industry. For example, the 
types of equipment employed in these processes may include: Furnaces, 
rotary kilns, fluidized bed reactors, flame tower reactors, liquid 
centrifuges, distillation columns and liquid-liquid extraction columns. 
However, few of the items are available ``off-the-shelf;'' most would be 
prepared according to the requirements and specifications of the 
customer. In some instances, special design and construction 
considerations are required to address the corrosive properties of some 
of the chemicals handled (HF, F2, ClF3, and 
uranium fluorides). Finally, it should be noted that, in all of the 
uranium conversion processes, items of equipment which individually are 
not specially designed or prepared for uranium conversion can be 
assembled into systems which are specially designed or prepared for use 
in uranium conversion.

   7.1. Specially designed or prepared systems for the conversion of 
               uranium ore concentrates to UO3

    Explanatory Note: Conversion of uranium ore concentrates to 
UO3 can be performed by first dissolving the ore in nitric 
acid and extracting purified uranyl nitrate using a solvent such as 
tributyl phosphate. Next, the uranyl nitrate is converted to 
UO3 either by concentration and denitration or by 
neutralization with gaseous ammonia to produce ammonium diuranate with 
subsequent filtering, drying, and calcining.

   7.2. Specially designed or prepared systems for the conversion of 
                    UO3 to UF6

    Explanatory Note: Conversion of UO3 to UF6 can 
be performed directly by fluorination. The process requires a source of 
fluorine gas or chlorine trifluoride.

   7.3. Specially designed or prepared systems for the conversion of 
                    UO3 to UO2

    Explanatory Note: Conversion of UO3 to UO2 can 
be performed through reduction of UO3 with cracked ammonia 
gas or hydrogen.

   7.4. Specially designed or prepared systems for the conversion of 
                    UO2 to UF4

    Explanatory Note: Conversion of UO2 to UF4 can 
be performed by reacting UO2 with hydrogen fluoride gas (HF) 
at 300-500 [deg]C.

   7.5. Specially designed or prepared systems for the conversion of 
                    UF4 to UF6

    Explanatory Note: Conversion of UF4 to UF6 is 
performed by exothermic reaction with fluorine in a tower reactor. 
UF6 is condensed from the hot effluent gases by passing the 
effluent stream through a cold trap cooled to -10 [deg]C. The process 
requires a source of fluorine gas.

   7.6. Specially designed or prepared systems for the conversion of 
                        UF4 to U metal

    Explanatory Note: Conversion of UF4 to U metal is 
performed by reduction with magnesium (large batches) or calcium (small 
batches). The reaction is carried out at temperatures above the melting 
point of uranium (1130 [deg]C).

   7.7. Specially designed or prepared systems for the conversion of 
                    UF6 to UO2

    Explanatory Note: Conversion of UF6 to UO2 can 
be performed by one of three processes. In the first, UF6 is 
reduced and hydrolyzed to UO2 using hydrogen and steam. In 
the second, UF6 is hydrolyzed by solution in water, ammonia 
is added to precipitate ammonium diuranate, and the diuranate is reduced 
to UO2 with hydrogen at 820 [deg]C. In the third process, 
gaseous UF6, CO2, and NH3 are combined 
in water, precipitating ammonium uranyl carbonate. The ammonium uranyl 
carbonate is combined with steam and hydrogen at 500-600 [deg]C to yield 
UO2. UF6 to UO2 conversion is often 
performed as the first stage of a fuel fabrication plant.

    7.8 Specially designed or prepared systems for the conversion of 
                    UF6 to UF4

    Explanatory Note: Conversion of UF6 to UF4 is 
performed by reduction with hydrogen.



PART 784_COMPLEMENTARY ACCESS--Table of Contents



Sec.
784.1 Complementary access: General information on the purpose of 
          complementary access, affected locations, and the role of BIS.
784.2 Obtaining consent or warrants to conduct complementary access.
784.3 Scope and conduct of complementary access.

[[Page 939]]

784.4 Notification, duration and frequency of complementary access.
784.5 Subsidiary arrangements.
784.6 Post complementary access activities.

    Authority: United States Additional Protocol Implementation Act of 
2006, Pub. Law No. 109-401, 120 Stat. 2726 (December 18, 2006) (to be 
codified at 22 U.S.C. 8101-8181); Executive Order 13458 (February 4, 
2008).

    Source: 73 FR 65128, Oct. 31, 2008, unless otherwise noted.



Sec.  784.1  Complementary access: General information on the purpose
of complementary access, affected locations, and the role of BIS.

    (a) Overview. The Additional Protocol requires that the United 
States provide the IAEA with complementary access to locations specified 
in the U.S. declaration. The IAEA may request and be given complementary 
access to locations in the United States that are not included in the 
U.S. declaration as agreed to by the U.S. Government. The IAEA, upon 
request, will be granted complementary access to locations in the United 
States in accordance with the provisions ofSec. 784.3 of the APR, 
which describes the scope and conduct of complementary access.
    (b) Purposes authorized under the APR. The APR authorize the conduct 
of complementary access, at locations in the United States, for the 
following purposes.
    (1) Declared uranium hard-rock mines and ore beneficiation plants. 
Complementary access may be conducted, on a selective basis, to verify 
the absence of undeclared nuclear material and nuclear related 
activities at reportable uranium hard-rock mines and ore beneficiation 
plants (seeSec. 783.1(a)(3) of the APR).
    (2) Other locations specified in the U.S. declaration and locations 
requested by the IAEA that are not included in the U.S. declaration as 
agreed to by the U.S. Government. Complementary access may be conducted 
at other locations specified in the U.S. declaration (i.e., locations 
required to submit reports to BIS pursuant toSec. 783.1(a)(1), (a)(2), 
or (b) of the APR), and locations requested by the IAEA and agreed to by 
the U.S. Government, to resolve questions relating to the correctness 
and completeness of the information provided in the U.S. declaration or 
to resolve inconsistencies relating to that information.
    (i) In the event that the IAEA has a question about, or identifies 
an apparent inconsistency in, information contained in the U.S. 
declaration (e.g., information based on reports submitted to BIS by one 
of these locations, pursuant toSec. 783.1(a)(1), (a)(2), or (b) of the 
APR), the IAEA will provide the U.S. Government with an opportunity to 
clarify or resolve the question or inconsistency. The IAEA will not draw 
any conclusions about the question or inconsistency, or request 
complementary access to a location, until the U.S. Government has been 
provided with an opportunity to clarify or resolve the question or 
inconsistency, unless the IAEA considers that a delay in access would 
prejudice the purpose for which the access is sought.
    (ii) Upon receipt of a request from the IAEA for clarification 
concerning information contained in the U.S. declaration, BIS will 
provide written notification to the U.S. location. The U.S. location 
must provide BIS with all of the requested information to clarify or 
resolve the question or inconsistency raised by the IAEA. Unless 
informed otherwise by BIS, the U.S. location will have 15 calendar days 
from its receipt of written notification to submit the required forms to 
BIS (see the Supplemental Information Report requirements inSec. 
783.1(d) of the APR).
    (c) Locations subject to complementary access. All locations 
specified in the U.S. declaration and other locations requested by the 
IAEA and agreed to by the U.S. Government are subject to complementary 
access by the IAEA. In cases where access cannot be provided to 
locations specified by the IAEA, BIS may seek to provide complementary 
access to adjacent locations or to satisfy the purposes of complementary 
access (see paragraph (b) of this section) through other means.
    (d) Responsibilities of BIS. As the lead U.S. Government agency and 
point of contact for organizing and facilitating complementary access 
pursuant to the APR, BIS will:
    (1) Serve as the official U.S. Government host to the IAEA 
inspection team;

[[Page 940]]

    (2) Provide prior written notification to any location that is 
scheduled to undergo complementary access;
    (3) Take appropriate action to obtain an administrative warrant in 
the event that a location does not consent to complementary access;
    (4) Upon request of the location, dispatch an advance team, if time 
and other circumstances permit, to the location to provide 
administrative and logistical support for complementary access and to 
assist with preparation for such access;
    (5) Accompany the IAEA Team throughout the duration of complementary 
access;
    (6) Assist the IAEA Team with complementary access activities and 
ensure that each activity adheres to the provisions of the Additional 
Protocol and to the requirements of the APR and the Act, including the 
conditions of any warrant issued thereunder; and
    (7) Assist in the negotiation and development of a location-specific 
subsidiary arrangement between the U.S. Government and the IAEA, if 
appropriate (seeSec. 784.5 of the APR).

    Note toSec. 784.1(d): BIS may invite representatives from other 
U.S. Government agencies to participate as members of the Advance and 
Host Teams for complementary access. The Host Team will not include 
employees of the Environmental Protection Agency, the Mine Safety and 
Health Administration, or the Occupational Safety and Health 
Administration of the Department of Labor.



Sec.  784.2  Obtaining consent or warrants to conduct complementary access.

    (a) Procedures for obtaining consent. (1) For locations specified in 
the U.S. declaration and other locations specified by the IAEA, BIS will 
seek consent pursuant to IAEA complementary access requests. In 
instances where the owner, operator, occupant or agent in charge of a 
location does not consent to such complementary access, BIS will seek 
administrative warrants as provided by the Act.
    (2) For locations specified by the IAEA where access cannot be 
provided, BIS may seek consent from an adjacent location pursuant to an 
IAEA complementary access request.
    (b) Who may give consent. The owner, operator, occupant or agent in 
charge of a location may consent to complementary access. The individual 
providing consent on behalf of the location represents that he or she 
has the authority to make this decision.
    (c) Scope of consent. (1) When the owner, operator, occupant, or 
agent in charge of a location consents to a complementary access 
request, he or she is agreeing to provide the IAEA Team with the same 
degree of access as that authorized underSec. 784.3 of the APR. This 
includes providing access for the IAEA Team and Host Team to any area of 
the location, any item on the location, and any records that are 
necessary to comply with the APR and allow the IAEA Team to accomplish 
the purpose of complementary access, as authorized underSec. 
784.1(b)(1) or (b)(2) of the APR, except for the following:
    (i) Information subject to the licensing jurisdiction of the 
Directorate of Defense Trade Controls (DDTC), U.S. Department of State, 
under the International Traffic in Arms Regulations (ITAR) (22 CFR parts 
120 through 130)--seeSec. 784.3(b)(3) of the APR, which states that 
such access cannot be provided without prior U.S. Government 
authorization; and
    (ii) Activities with direct national security significance to the 
United States, or locations or information associated with such 
activities.
    (2) The Host Team Leader is responsible for determining whether or 
not the IAEA's request to obtain access to any area, building, or item, 
or to record or conduct the types of activities described inSec. 784.3 
of the APR is consistent with the Additional Protocol and subsidiary 
arrangements to the Additional Protocol.



Sec.  784.3  Scope and conduct of complementary access.

    (a) General. IAEA complementary access shall be limited to 
accomplishing only those purposes that are appropriate to the type of 
location, as indicated inSec. 784.1(b) of the APR and shall be 
conducted in the least intrusive manner, consistent with the effective 
and timely accomplishment of such purposes. No complementary access may 
take place without the presence of a U.S. Government Host Team. No 
information of direct national security

[[Page 941]]

significance shall be provided to the IAEA during complementary access.
    (b) Scope. This paragraph describes complementary access activities 
that are authorized under the APR.
    (1) Complementary access activities. Depending on the type of 
location accessed, the IAEA Team may:
    (i) Perform visual observation of parts or areas of the location;
    (ii) Utilize radiation detection and measurement devices;
    (iii) Utilize non-destructive measurements and sampling;
    (iv) Examine relevant records (i.e., records appropriate for the 
purpose of complementary access, as authorized underSec. 784.1(b) of 
the APR), except that the following records may not be inspected unless 
the Host Team leader, after receiving input from representatives of the 
location and consulting with other members of the Host Team, determines 
that such access is both appropriate and necessary to achieve the 
relevant purpose described inSec. 784.1(b)(1) or (b)(2) of the APR:
    (A) Financial data (other than production data);
    (B) Sales and marketing data (other than shipment data);
    (C) Pricing data;
    (D) Personnel data;
    (E) Patent data;
    (F) Data maintained for compliance with environmental or 
occupational health and safety regulations; or
    (G) Research data (unless the data are reported on Form AP-3 or AP-
4);
    (v) Perform location-specific environmental sampling; and

    Note toSec. 784.3(b)(1)(v): BIS will not seek access to a location 
for location-specific environmental sampling until the President reports 
to the appropriate congressional committees his determination to permit 
such sampling.

    (vi) Utilize other objective measures which have been demonstrated 
to be technically feasible and the use of which have been agreed to by 
the United States (``objective measures,'' as used herein, means any 
verification techniques that would be appropriate for achieving the 
official purpose of complementary access, both in terms of their 
effectiveness and limited intrusiveness).
    (2) Wide Area Environmental Sampling. In certain cases, IAEA 
inspectors may collect environmental samples (e.g., air, water, 
vegetation, soil, smears), at a location specified by the IAEA, for the 
purpose of assisting the IAEA to draw conclusions about the absence of 
undeclared nuclear material or nuclear activities over a wide area.

    Note toSec. 784.3(b)(2): The IAEA will not seek such access until 
the use of wide-area environmental sampling and the procedural 
arrangements therefor have been approved by its Board of Governors and 
consultations have been held between the IAEA and the United States. BIS 
will not seek access to a location for wide-area sampling until the 
President reports to the appropriate congressional committees his 
determination to permit such sampling.

    (3) ITAR-controlled technology. ITAR-controlled technology shall not 
be made available to the IAEA Team without prior U.S. Government 
authorization. The owner, operator, occupant, or agent in charge of the 
location being accessed is responsible for identifying any ITAR-
controlled technology at the location to the Host Team as soon as 
practicable following the receipt of notification from BIS of 
complementary access (seeSec. 784.4(a) of the APR).
    (c) Briefing. Following the arrival of the IAEA Team and Host Team 
at a location subject to complementary access, and prior to the 
commencement of complementary access, representatives of the 
organization will provide the IAEA Team and Host Team with a briefing on 
the environmental, health, safety, and security regulations (e.g., 
regulations for protection of controlled environments within the 
location and for personal safety) that are applicable to the location 
and which must be observed. In addition, the organization's 
representatives may include in their briefing an overview of the 
location, the activities carried out at the location, and any 
administrative and logistical arrangements relevant to complementary 
access. The briefing may include the use of maps and other documentation 
deemed appropriate by the organization. The time spent for the briefing 
may not exceed one hour, and the content should be limited to that which 
relates to the purpose of

[[Page 942]]

complementary access. The briefing may also address any of the 
following:
    (1) Areas, buildings, and structures specific to any activities 
relevant to complementary access;
    (2) Administrative and logistical information;
    (3) Updates/revisions to reports required under the APR;
    (4) Introduction of key personnel at the location;
    (5) Location-specific subsidiary arrangement, if applicable; and
    (6) Proposed access plan to address the purpose of complementary 
access.
    (d) Visual access. The IAEA Team may visually observe areas or parts 
of the location, as agreed by the Host Team Leader, after the Host Team 
Leader has consulted with the organization's representative for the 
location.
    (e) Records review. The location must be prepared to provide the 
IAEA Team with access to all supporting materials and documentation used 
by the owner, operator, occupant, or agent in charge of the location to 
prepare reports required under the APR and to otherwise comply with the 
APR (see the records inspection and recordkeeping requirements in 
Sec.Sec. 786.1 and 786.2 of the APR and paragraph (b) of this section, 
which describes the scope of complementary access activities authorized 
under the APR) and with appropriate accommodations in which the IAEA 
Team can review these supporting materials and documentation. Such 
access will be provided in appropriate formats (e.g., paper copies, 
electronic remote access by computer, microfilm, or microfiche) through 
the Host Team to the IAEA Team during the complementary access period or 
as otherwise agreed upon by the IAEA Team and Host Team Leader. If the 
owner, operator, occupant, or agent in charge of the location does not 
have access to records for activities that took place under previous 
ownership, the previous owner must make such records available to the 
Host Team.
    (f) Managed access. As necessary, the Host Team will implement 
managed access measures (e.g., the removal of sensitive papers from 
office spaces and the shrouding of sensitive displays, stores, and 
equipment) to prevent the dissemination of proliferation sensitive 
information, to meet safety or physical protection requirements, to 
protect proprietary or commercially sensitive information, or to protect 
activities of direct national security significance to the United 
States, including locations or information associated with such 
activities. If the IAEA Team is unable to fully achieve its inspection 
aims under the managed access measures in place, the Host Team will make 
every reasonable effort to provide alternative means to allow the IAEA 
Team to meet these aims, consistent with the purposes of complementary 
access (as described inSec. 784.1(b) of the APR) and the requirements 
of this section. If a location-specific subsidiary arrangement applies 
(seeSec. 784.5(b) of the APR), the Host Team shall, in consultation 
with the owner, operator, occupant, or agent in charge of the location, 
implement managed access procedures consistent with the applicable 
location-specific subsidiary arrangement.
    (g) Hours of complementary access. Consistent with the provisions of 
the Additional Protocol, the Host Team will ensure, to the extent 
possible, that each complementary access is commenced, conducted, and 
concluded during ordinary business hours, but no complementary access 
shall be prohibited or otherwise disrupted from commencing, continuing 
or concluding during other hours.
    (h) Environmental, health, safety, and security regulations and 
requirements. In carrying out their activities, the IAEA Team and Host 
Team shall observe federal, state, and local environmental, health, 
safety, and security regulations and environmental, health, safety, and 
security requirements established at the location, including those for 
the protection of controlled environments within a location and for 
personal safety. To the extent practicable, any such regulations and 
requirements that may apply to the conduct of complementary access at 
the location should be set forth in the location-specific subsidiary 
arrangement (if any).
    (i) Host Team to accompany the IAEA Team. The Host Team shall 
accompany the IAEA Team, during their complementary access at the 
location, in

[[Page 943]]

accordance with the provisions set forth in this part of the APR.
    (j) Scope of authorized communications by the IAEA Team. (1) The 
United States shall permit and protect free communications between the 
IAEA Team and IAEA Headquarters and/or Regional Offices, including 
attended and unattended transmission of information generated by IAEA 
containment and/or surveillance or measurement devices. The IAEA Team 
shall have the right, through consultation with the Host Team, to make 
use of internationally established systems of direct communications.
    (2) No document, photograph or other recorded medium, or sample 
relevant to complementary access may be removed or transmitted from the 
location by the IAEA Team without the prior consent of the Host Team.
    (k) IAEA activities, findings, and results related to complementary 
access. (1) In accordance with the Additional Protocol, the IAEA shall 
inform the United States of:
    (i) Any activities that took place in connection with complementary 
access to a location in the United States, including any activities 
concerning questions or inconsistencies that the IAEA may have brought 
to the attention of the United States, within 60 calendar days of the 
time that the activities occurred; and
    (ii) The findings or results of any activities that took place, 
including the findings and results of activities concerning questions or 
inconsistencies that the IAEA may have brought to the attention of the 
United States, within 30 calendar days of the time that such findings or 
results were reached by the IAEA.
    (2) BIS will provide the results of complementary access to the 
owner, operator, occupant, or agent in charge of the inspected location 
to the extent practicable.



Sec.  784.4  Notification, duration and frequency of complementary access.

    (a) Complementary access notification. Complementary access will be 
provided only upon the issuance of a written notice by BIS to the owner, 
operator, occupant or agent in charge of the premises to be accessed. If 
BIS is unable to provide written notification to the owner, operator, or 
agent in charge, BIS may post a notice prominently at the location to be 
accessed.
    (1) Content of notice--(i) Pertinent information furnished by the 
IAEA. The notice shall include all appropriate information provided by 
the IAEA to the United States Government concerning:
    (A) The purpose of complementary access;
    (B) The basis for the selection of the location for complementary 
access;
    (C) The activities that will be carried out during complementary 
access;
    (D) The time and date that complementary access is expected to begin 
and its anticipated duration; and
    (E) The names and titles of the IAEA inspectors who will participate 
in complementary access.
    (ii) Request for location's consent to complementary access. The 
complementary access notification from BIS will request that the 
location inform BIS whether or not it will consent to complementary 
access. If a location does not agree to provide consent to complementary 
access within four hours of its receipt of the complementary access 
notification, BIS will seek an administrative warrant as provided in 
Sec.  784.2(a)(1).
    (iii) Availability of advance team from BIS. An advance team from 
BIS will be available to assist the location in preparing for 
complementary access. If the complementary access is a 24-hour advance 
notice, then the availability of an advance team may be limited. The 
location requesting advance team assistance will not be required to 
reimburse the U.S. Government for any costs associated with these 
activities. The location (in cooperation with the advance team, if 
available) will make preparations for complementary access, including 
the identification of any ITAR-controlled technology and/or national 
security information at the location (seeSec. 784.3(b)(3) of the APR).
    (2) Notification procedures. The following table sets forth the 
notification procedures for complementary access.

[[Page 944]]



                       Table toSec.  784.4(a)(2)
------------------------------------------------------------------------
            Activity                 Agency action      Location action
------------------------------------------------------------------------
IAEA notification of              BIS will transmit   Location must
 complementary access.             complementary       inform BIS,
                                   access              within 4 hours of
                                   notification via    its receipt of
                                   facsimile to the    complementary
                                   owner, operator,    access
                                   occupant, or        notification,
                                   agent in charge     whether or not
                                   of a location to    it:
                                   ascertain whether  (1) Grants consent
                                   or not the          to complementary
                                   location:           access; and
                                  (1) Grants consent  (2) Requests BIS
                                   to complementary    advance team
                                   access; and.        support (subject
                                  (2) Requests BIS     to availability)
                                   advance team        to prepare for
                                   support (subject    complementary
                                   to availability)    access. Location
                                   in preparing for    not required to
                                   complementary       reimburse U.S.
                                   access..            Government for
                                                       assistance from
                                                       the BIS advance
                                                       team.
                                  If the location
                                   does not inform
                                   BIS of its
                                   consent to
                                   complementary
                                   access, within 4
                                   hours of the time
                                   it receives
                                   notification from
                                   BIS, BIS will
                                   seek an
                                   administrative
                                   warrant.
Preparation for complementary     If a BIS advance    The location will
 access.                           team has been       engage in
                                   requested and is    activities that
                                   available, it       will prepare the
                                   will arrive at      location for
                                   the location to     complementary
                                   be accessed and     access (e.g.,
                                   assist the          identifying any
                                   location in         ITAR-controlled
                                   making logistical   technology or
                                   and                 national security
                                   administrative      information at
                                   preparations for    the location),
                                   complementary       either singularly
                                   access.             or in cooperation
                                                       with a BIS
                                                       advance team if
                                                       one has been
                                                       requested and is
                                                       available.
------------------------------------------------------------------------

    (3) Timing of notification. In accordance with the Additional 
Protocol, the IAEA shall notify the United States Government of a 
complementary access request not less than 24 hours prior to the arrival 
of the IAEA Team at the location. BIS will provide written notice to the 
owner, operator, occupant or agent in charge of the location as soon as 
possible after BIS has received notification from the IAEA.
    (b) Duration of complementary access. The duration of complementary 
access will depend upon the nature of the complementary access request 
and the activities that will be conducted at the location. (SeeSec. 
784.3(b) of the APR for a description of the types of complementary 
access activities authorized under the APR.)



Sec.  784.5  Subsidiary arrangements.

    (a) General subsidiary arrangement. The United States Government may 
conclude a general subsidiary arrangement with the IAEA that governs 
complementary access activities, irrespective of the location (i.e., an 
arrangement that is not location-specific).
    (b) Location-specific subsidiary arrangement--(1) Purpose. If 
requested by the location or deemed necessary by the U.S. Government, 
the U.S. Government will negotiate a location-specific subsidiary 
arrangement with the IAEA. The purpose of such an arrangement is to 
establish procedures for conducting managed access at a specific 
declared location. If the location requests, it may participate in 
preparations for the negotiation of a location-specific subsidiary 
arrangement with the IAEA and may observe the negotiations to the 
maximum extent practicable. The existence of a location-specific 
subsidiary arrangement does not in any way limit the right of the owner, 
operator, occupant, or agent in charge of the location to withhold 
consent to a request for complementary access.
    (2) Format and content. The form and content of a location-specific 
subsidiary arrangement will be determined by the IAEA and the U.S. 
Government, in consultation with the location, on a case-by-case basis.



Sec.  784.6  Post complementary access activities.

    Upon receiving the IAEA's final report on complementary access, BIS 
will forward a copy of the report to the location for its review, in 
accordance withSec. 784.3(k)(2) of the APR. Locations may submit 
comments concerning the IAEA's final report to BIS, and BIS

[[Page 945]]

will consider them, as appropriate, when preparing its comments to the 
IAEA on the final report. BIS also will send locations a post 
complementary access letter detailing the issues that require follow-up 
action (see, for example, the Amended Report requirements inSec. 
783.2(d) of the APR).



PART 785_ENFORCEMENT--Table of Contents



Sec.
785.1 Scope and definitions.
785.2 Violations of the Act subject to administrative and criminal 
          enforcement proceedings.
785.3 Initiation of administrative proceedings.
785.4 Request for hearing and answer.
785.5 Representation.
785.6 Filing and service of papers other than the Notice of Violation 
          and Assessment (NOVA).
785.7 Summary decision.
785.8 Discovery.
785.9 Subpoenas.
785.10 Matters protected against disclosure.
785.11 Prehearing conference.
785.12 Hearings.
785.13 Procedural stipulations.
785.14 Extension of time.
785.15 Post-hearing submissions.
785.16 Decisions.
785.17 Settlement.
785.18 Record for decision.
785.19 Payment of final assessment.
785.20 Reporting a violation.

    Authority: United States Additional Protocol Implementation Act of 
2006, Pub. Law No. 109-401, 120 Stat. 2726 (December 18, 2006) (to be 
codified at 22 U.S.C. 8101-8181); Executive Order 13458 (February 4, 
2008).

    Source: 73 FR 65128, Oct. 31, 2008, unless otherwise noted.



Sec.  785.1  Scope and definitions.

    (a) Scope. This Part 785 describes the sanctions that apply to 
violations of the Act and the APR. It also establishes detailed 
administrative procedures for certain violations of the Act. Violations 
for which the statutory basis is the Act are set forth inSec. 785.2 of 
the APR. BIS investigates these violations, prepares charges, provides 
legal representation to the U.S. Government, negotiates settlements, and 
initiates and resolves proceedings. The administrative procedures 
applicable to these violations are described in Sec.Sec. 785.3 through 
785.19 of the APR.
    (b) Definitions. The following are definitions of terms as used only 
in part 785 of the APR. For definitions of terms applicable to parts 781 
through 786 of the APR, unless otherwise noted in this paragraph or 
elsewhere in the APR, see part 781 of the APR.
    The Act. The U.S. Additional Protocol Implementation Act of 2006 
(Public Law 109-401, 120 Stat. 2726 (December 18, 2006)).
    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.
    Office of Chief Counsel. The Office of Chief Counsel for Industry 
and Security, United States Department of Commerce.
    Recommended decision. A decision of the administrative law judge in 
proceedings involving violations of part 785 that is subject to review 
by the Secretary of Commerce, or a designated United States Government 
official.
    Report. For the purposes of part 785 of the APR, the term ``report'' 
means any report required under parts 783 through 786 of the APR.
    Respondent. Any person named as the subject of a letter of intent to 
charge, a Notice of Violation and Assessment (NOVA), or order.
    Under Secretary, Bureau of Industry and Security. The Under 
Secretary, Bureau of Industry and Security, United States Department of 
Commerce.



Sec.  785.2  Violations of the Act subject to administrative and 
criminal enforcement proceedings.

    (a) Violations--(1) Refusal to permit entry or access. No person may 
willfully fail or refuse to permit entry or access, or willfully 
disrupt, delay or otherwise impede complementary access, or an entry in 
connection with complementary access, authorized by the Act.

[[Page 946]]

    (2) Failure to establish or maintain records. No person may 
willfully fail or refuse to do any of the following:
    (i) Establish or maintain any record required by the Act or the APR;
    (ii) Submit any report, notice, or other information to the United 
States Government in accordance with the Act or the APR; or
    (iii) Permit access to or copying of any record by the United States 
Government that is related to a person's obligations under the Act or 
the APR.
    (b) Civil penalties--(1) Civil penalty for refusal to permit entry 
or access. Any person that is determined to have willfully failed or 
refused to permit entry or access, or to have willfully disrupted, 
delayed or otherwise impeded an authorized complementary access, 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, submit any report or other information 
required by the Act or the APR, or permit access to or copying of any 
record related to a person's obligations under the Act or the APR, as 
set forth in paragraph (a)(2) of this section, shall pay a civil penalty 
in an amount not to exceed $25,000 for each violation.
    (c) Criminal penalty. Any person that is determined to have violated 
the Act by willfully failing or refusing to permit entry or access 
authorized by the Act; by willfully disrupting, delaying or otherwise 
impeding complementary access authorized by the Act; or by willfully 
failing or refusing to establish or maintain any required record, submit 
any required report or other information, or permit access to or copying 
of any record related to a person's obligations under the Act or the 
APR, as set forth in paragraph (a) of this section, 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 five 
years, or both.



Sec.  785.3  Initiation of administrative proceedings.

    (a) Issuance of a Notice of Violation and Assessment (NOVA). Prior 
to the initiation of an administrative proceeding through issuance of a 
NOVA, the Bureau of Industry and Security will issue a letter of intent 
to charge. The letter of intent to charge will advise a respondent that 
BIS has conducted an investigation. The letter will give the respondent 
a specified period of time to contact BIS to discuss settlement of the 
allegations set forth in the letter of intent to charge. If the 
respondent does not contact BIS in the time period specified in the 
letter of intent to charge, the Director of the Office of Export 
Enforcement, or such other Department of Commerce representative 
designated by the Assistant Secretary for Export Enforcement, may 
initiate an administrative enforcement proceeding under thisSec. 785.3 
by issuing a NOVA.
    (b) Content of a NOVA. The NOVA shall constitute a formal complaint 
and 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 maximum amount of the 
civil penalty that could be assessed. The NOVA also will inform the 
respondent of the requirement to request a hearing pursuant toSec. 
785.4 of the APR.
    (c) Service of a NOVA. Service of the NOVA shall be made by 
certified mail or courier delivery with signed acknowledgment of 
receipt. The date of signed acknowledgment of receipt shall be the 
effective date of service of the NOVA. One copy of each paper shall be 
provided to each party in the delivery. BIS files the NOVA with the 
Administrative Law Judge (ALJ) at the same time that it is sent to the 
respondent. The ALJ, in turn, will place the case on its docket and will 
notify both the respondent and BIS of the docket information.



Sec.  785.4  Request for hearing and answer.

    (a) Deadline for answering the NOVA. If the respondent wishes to 
contest the NOVA issued by BIS, the respondent must submit a written 
request for a

[[Page 947]]

hearing to BIS within 15 business days from the date of service of the 
NOVA. If the respondent requests a hearing, the respondent must answer 
the NOVA within 30 calendar days from the date of the request for 
hearing. The request for a hearing and the respondent's answer to the 
NOVA must be filed with the Administrative Law Judge (ALJ), along with a 
copy of the NOVA, and served on the Office of Chief Counsel, and any 
other address(es) specified in the NOVA, in accordance withSec. 785.6 
of the APR.
    (b) Content of respondent's answer. The respondent's answer must be 
responsive to the NOVA 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 this will serve as a denial. Failure to 
deny or controvert a particular allegation will be deemed to be an 
admission of that allegation. The answer must also set forth any 
additional or new matter that the respondent contends will support a 
defense or claim of mitigation. Any defense or partial defense not 
specifically set forth in the answer shall be deemed to be waived, and 
evidence supporting that defense or partial defense may be refused, 
except for good cause shown.
    (c) English required. The request for hearing, the answer to the 
NOVA, 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 prescribed in paragraph (a) of 
this section constitutes a waiver of the respondent's right to appear 
and contest the allegations set forth in the NOVA. If no hearing is 
requested and no answer is provided, a final order will be signed by the 
Secretary of Commerce, or by a designated United States Government 
official, and will constitute final agency action in the case.



Sec.  785.5  Representation.

    An individual respondent may appear, in person, or be represented by 
a duly authorized officer or employee. A partner may appear on behalf of 
a partnership, or a duly authorized officer or employee of a corporation 
may appear on behalf of the corporation. 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.



Sec.  785.6  Filing and service of papers other than the Notice of
Violation and Assessment (NOVA).

    (a) Filing. All papers to be filed with the ALJ shall be addressed 
to ``Additional Protocol Administrative Enforcement Proceedings,'' at 
the address set forth in the NOVA, or such other place as the ALJ may 
designate. Filing by United States certified mail, by express or 
equivalent parcel delivery service, via facsimile, or by hand delivery 
is acceptable. Filing from a foreign country shall be by airmail, via 
facsimile, or by express or equivalent parcel delivery service. A copy 
of each paper filed shall be simultaneously served on all parties.
    (b) Service. Service shall be made by United States certified mail, 
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. 
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, NW., Room H-3839, 
Washington, DC 20230, or sent via facsimile to (202) 482-0085. Service 
on a respondent shall be to the address to which the NOVA was sent, or 
to such other address as the respondent

[[Page 948]]

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, 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 is to be included in the computation 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 such instance, the period 
runs until the end of the next day that 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--there is no cap on the period of time to 
which this exclusion applies, whenever the period of time prescribed or 
allowed by this part is computed in business days, rather than calendar 
days.



Sec.  785.7  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.  785.8  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 may apply to the ALJ 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 30 
calendar 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 at least 5 business days before the 
scheduled date of the hearing. 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 business 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 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

[[Page 949]]

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.  785.9  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 a subpoena. Any failure to obey an 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 inSec. 785.6(b) of the APR.
    (c) Timing. Applications for subpoenas must be submitted at least 10 
business days before the scheduled hearing or deposition, unless the ALJ 
determines, for good cause shown, that extraordinary circumstances 
warrant a shorter time.



Sec.  785.10  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. 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 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 with the 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.  785.11  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;

[[Page 950]]

    (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.  785.12  Hearings.

    (a) Scheduling. Upon receipt of a valid request for a hearing, the 
ALJ shall, by agreement with all the parties or upon notice to all 
parties of at least 30 calendar days from the date of receipt of a 
request for a hearing, schedule a hearing. All hearings will be held in 
Washington, DC, 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 want 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 report as evidence, provided that any affidavits or reports 
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.  785.13  Procedural stipulations.

    Unless otherwise ordered and subject toSec. 785.14 of the APR, a 
written stipulation agreed to by all parties and filed with the ALJ will 
modify the procedures established by this part.



Sec.  785.14  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 calendar days, and the requirement that a final agency decision be 
made within 60 calendar days, may not be modified.



Sec.  785.15  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 orders and settlements.



Sec.  785.16  Decisions.

    (a) Recommended decision and order. After considering the entire 
record in the case, the ALJ will issue a recommended decision based on a 
preponderance of the evidence. The decision

[[Page 951]]

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, and such other 
matters as justice may require.
    (c) Referral of recommended decision and order. The ALJ shall 
immediately issue and serve the recommended decision (and order, if 
appropriate) to the Office of Chief Counsel, at the address inSec. 
785.6(b) of the APR, and to the respondent, by courier delivery or 
overnight mail. The recommended decision and order will also be referred 
to the head of the designated executive agency for final decision and 
order.
    (d) Final decision and order. The recommended decision and order 
shall become the final agency decision and order unless, within 60 
calendar days, the Secretary of Commerce, or a designated United States 
Government official, modifies or vacates it, or unless an appeal has 
been filed pursuant to paragraph (e) of this section.
    (e) Appeals. The respondent may appeal the final agency decision 
within 30 calendar days after the date of certification. Petitions for 
appeal may be filed in the Court of Appeals for the District of Columbia 
Circuit or in the Court of Appeals for the district in which the 
violation occurred.



Sec.  785.17  Settlement.

    (a) Settlements before issuance of a NOVA. When the parties have 
agreed to a settlement of the case prior to issuance of a NOVA, a 
settlement proposal consisting of a settlement agreement and order will 
be submitted to the Assistant Secretary for Export Enforcement 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 has been made. If the Assistant Secretary 
approves the proposal, he/she will issue an appropriate order, and no 
action will be required by the ALJ.
    (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 Assistant Secretary for Export Enforcement, forwarding 
a proposed settlement agreement and order, which the Assistant Secretary 
will approve and sign. If a NOVA has been filed, the Office of Chief 
Counsel will send a copy of the settlement proposal to the ALJ.
    (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. The government officials involved have neither the authority 
nor the responsibility for initiating, conducting, settling, or 
otherwise disposing of criminal proceedings. 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, absent a showing of good cause. Appeals and requests to reopen 
settled cases must be submitted to the Assistant Secretary for Export 
Enforcement within 30 calendar days of the execution of a settlement 
agreement.

[[Page 952]]



Sec.  785.18  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 underSec. 785.16 of the APR, the decision of 
the ALJ and such submissions as are provided for underSec. 785.16 of 
the APR 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 displayed on the BIS Freedom of Information Act (FOIA) Web site, 
at http://www.bis.doc.gov/foia, which is maintained by the Office of 
Administration, Bureau of Industry and Security, U.S. Department of 
Commerce. The Office of Administration does not maintain a separate 
inspection facility. 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.  785.19  Payment of final assessment.

    (a) Time for payment. Full payment of the civil penalty must be made 
within 30 days of the effective date of the order or within such longer 
period of time as may be 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 the APR. 
This suit will include a claim for interest at current prevailing rates 
from the date of expiration of the 60-day period referred to inSec. 
785.16(d), or the date of the final order, as appropriate.
    (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.  785.20  Reporting a violation.

    If a person learns that a violation of the Additional Protocol, the 
Act, or the APR 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, NW., Room 
H-4520, Washington, DC 20230; Tel: (202) 482-1208; Facsimile: (202) 482-
0964.



PART 786_RECORDS AND RECORDKEEPING--Table of Contents



Sec.
786.1 Inspection of records.
786.2 Recordkeeping.
786.3 Destruction or disposal of records.

    Authority: United States Additional Protocol Implementation Act of 
2006, Pub. Law No. 109-401, 120 Stat. 2726 (December 18, 2006) (to be 
codified at 22 U.S.C. 8101-8181); Executive Order 13458 (February 4, 
2008).

    Source: 73 FR 65128, Oct. 31, 2008, unless otherwise noted.



Sec.  786.1  Inspection of records.

    Upon request by BIS, you must permit access to and copying of any 
record relating to compliance with the requirements of the APR. This 
requires

[[Page 953]]

that you make available the equipment and, if necessary, knowledgeable 
personnel for locating, reading, and reproducing any record. Copies may 
be necessary to facilitate IAEA Team review of documents during 
complementary access. The IAEA Team may not remove these documents from 
the location without BIS authorization (seeSec. 784.3(j)(2) of the 
APR).



Sec.  786.2  Recordkeeping.

    (a) Requirements. Each person and location required to submit a 
report or correspondence under parts 782 through 784 of the APR must 
retain all supporting materials and documentation used to prepare such 
report or correspondence.
    (b) Three year retention period. All supporting materials and 
documentation required to be kept under paragraph (a) of this section 
must be retained for three years from the due date of the applicable 
report or for three years from the date of submission of the applicable 
report, whichever is later. Due dates for reports and correspondence are 
indicated in parts 782 through 784 of the APR.
    (c) Location of records. Records retained under this section must be 
maintained at the location or must be accessible at the location for 
purposes of complementary access at the location by IAEA Teams.
    (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, 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.  786.3  Destruction or disposal of records.

    If BIS or any other authorized U.S. government agency makes a formal 
or informal request for a certain record or records, such record or 
records may not

[[Page 954]]

be destroyed or disposed of without the written authorization of the 
requesting entity.

                        PARTS 787	799 [RESERVED]

[[Page 955]]



                              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 957]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 2013)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Circulars and Guidance 
                (200--299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300-- 
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)

[[Page 958]]

       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)
        II  Recovery Accountability and Transparency Board (Parts 
                200--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         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 (Parts 2100--2199)
       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 (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600-- 3699)
    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)

[[Page 959]]

    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)
     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
    LXXXII  Special Inspector General for Iraq Reconstruction 
                (Parts 9200--9299)

[[Page 960]]

   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
     XCVII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--99)

                         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)

[[Page 961]]

      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)
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      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 Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      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  National Institute of Food and 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)

[[Page 962]]

        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)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      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)
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research (Parts 1600--1699)
      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)

[[Page 963]]

               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 (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (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--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 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)

[[Page 964]]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  U.S. 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  U.S. 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  Office of Workers' Compensation Programs, 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 Service, Department of 
                Labor (Parts 1000--1099)

[[Page 965]]

                       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 (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millennium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                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)

[[Page 966]]

        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)
      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)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099)
       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)

[[Page 967]]

        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 (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           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)
       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)

[[Page 968]]

      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  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 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)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)

[[Page 969]]

         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)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     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)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education [Reserved]
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

[[Page 970]]

                          Title 35 [Reserved]

             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)
        VI  [Reserved]
       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 (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             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)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        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--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory 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)

[[Page 971]]

        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 A--Federal Procurement Regulations System 
                [Note]
            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)
   62--100  [Reserved]
            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)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System [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 303-1--303-99)
       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)

[[Page 972]]

        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--599)
         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 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             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
        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) 
                [Reserved]
         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)

[[Page 973]]

      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)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Health and Human Services (Parts 300--399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)

[[Page 974]]

        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)
        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 [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (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  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)

[[Page 975]]

       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  Research and Innovative Technology Administration, 
                Department of Transportation [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

[[Page 977]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 2013)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     22, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  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
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 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
  National Institute of Food and Agriculture      7, XXXIV
  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, L
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV, L
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII, L
  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

[[Page 978]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
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
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
Bureau of Ocean Energy Management, Regulation,    30, II
     and Enforcement
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazardous Investigation       40, VI
     Board
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                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               2, XIII; 44, IV; 50, VI
  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
  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
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       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 Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Office                                  37, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V

[[Page 979]]

Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I
Defense Contract Audit Agency                     32, I
Defense Department                                2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 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          5, LXX; 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                          2, XXXIV; 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
Election Assistance Commission                    2, LVIII; 11, II
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                             2, IX; 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                   2, XV; 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
[[Page 980]]

Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 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
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 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                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
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 Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
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
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
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

[[Page 981]]

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 Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  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 Accountability Office                  4, I
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          2, III; 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
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 6, I; 8, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 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
[[Page 982]]

Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
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
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
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department                               2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Bureau of Ocean Energy Management, Regulation,  30, II
       and Enforcement
  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
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  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 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
Investment Security, Office of                    31, VIII
Iraq Reconstruction, Special Inspector General    5, LXXXVII
     for
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                                2, XXVIII; 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

[[Page 983]]

  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  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
  Office of Workers' Compensation Programs        20, VII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  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
  Copyright Royalty Board                         37, III
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, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
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
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 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   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
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 Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I

[[Page 984]]

National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 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, IV
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Natural Resource Revenue, Office of               30, XII
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
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Offices of Independent Counsel                    28, VI
Office of Workers' Compensation Programs          20, VII
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
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                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory 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
Recovery Accountability and Transparency Board    4, II
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII, L

[[Page 985]]

Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV, L
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII, L
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                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 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                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 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; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  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                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A

[[Page 986]]

  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                       2, VIII; 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 987]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2008 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, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.fdsys.gov. For changes to this volume of the CFR 
prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 1964-
1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. The 
``List of CFR Sections Affected 1986-2000'' is available at 
www.fdsys.gov.

                                  2008

15 CFR
                                                                   73 FR
                                                                    Page
Chapter III
303.2 (a)(13)(ii) introductory text, (A), (14)(ii) introductory 
        text and (A) amended.......................................62881
303.15 Amended.....................................................34857
303.16 (a)(9)(ii) introductory text, (A), (10)(ii) introductory 
        text and (A) amended.......................................62881
303.20 (b) revised.................................................34857
336 Regulation at 72 FR 40237 confirmed............................39587
Chapter VII
700.21 (a) revised....................................................34
710.1 Amended......................................................78182
710.6 Amended......................................................78182
710 Supplement No. 1 amended.......................................78182
711.4 (a)(1) amended; (b) revised..................................78182
711.6 (a) amended..................................................78182
711.7 Revised......................................................78182
711.8 (b)(2)(iv)(A) amended........................................78182
712.2 (b) amended..................................................78183
712.6 (a)(2) revised...............................................78183
716.6 (d) amended..................................................78183
718.3 (a) and (b)(1) amended.......................................78183
719.1 (a) amended..................................................78183
720.2 (a) amended..................................................78183
720.3 (b) amended..................................................78183
720.4 Amended......................................................78183
730 Authority citation revised..............................49321, 75944
730.8 (c) amended..............................................35, 75944
730 Supplement No. 1 amended.........................49321, 56967, 75944
    Supplement No. 2 amended...................................35, 75945
732 Authority citation revised..............................56968, 57503
732.2 (d) revised; (e) removed.....................................56968
    (b) revised; interim...........................................57503
732.3 (e) revised..................................................56968
734 Authority citation revised.......................56968, 57503, 75945
734.3 (a)(3) revised...............................................56968
    (a)(4) note added; interim.....................................57503
734.4 (c) introductory text, (1), (d) introductory text and (1) 
        revised; (c)(3) and (d)(3) amended; (e) and (h) removed; 
        (f) and (g) redesignated as new (e) and (f); (a)(4), (5), 
        (c)(1) notes, (d)(1) notes and new (g) added...............56968
    (b)(4) removed.................................................75945
734 Supplement No. 1 amended..........................................35
    Supplement No. 1 amended; interim..............................57503
    Supplement No. 2 revised.......................................56969
736 Authority citation revised..............................54503, 75945
736.2 (b)(2) heading and (i) introductory text revised.............56970
    (b)(10) amended................................................68324
736 Supplement No. 1 amended.........................33673, 54503, 68324
738 Authority citation revised.....................................51218

[[Page 988]]

738.4 (a)(1) and (2)(ii)(B) revised; interim.......................57503
738 Supplement No. 1 correctly amended; CFR correction.............14687
    Supplement No. 1 amended.......................................51218
740 Authority citation revised..............................49328, 75945
    Technical correction...........................................65258
740.3 (d)(5) revised; interim......................................57504
740.5 (b)(1) amended...............................................68324
740.7 (d)(1) amended...............................................51218
    (b)(5) revised.................................................68324
740.8 (b)(2) revised...............................................49328
    Removed; interim...............................................57504
740.9 (b)(1)(iv) amended..............................................35
    (a)(2)(i)(B) revised...........................................10669
    (a)(4)(i) and (iii) amended....................................49328
    (a)(2)(ix)(A) revised..........................................68325
740.11 Supplement No. 1 amended....................................60919
    (c)(3) revised.................................................68325
740.12 (a)(1) amended.................................................35
    (a)(2)(i)(A)(1), (B)(1) and (iv) revised.......................33673
    (a)(2)(iii)(C) revised.........................................49328
740.13 (d)(1) amended.................................................35
    (d) heading, (1), footnote 1, (3)(i) and (ii) amended; interim
                                                                   57504
740.15 (c)(1) and (2) amended.........................................35
    (c) introductory text footnote 4 revised.......................49328
740.17 (d)(1) revised..............................................49328
    Revised; interim...............................................57504
740.18 (c)(2) revised..............................................49329
740 Supplement No. 1 amended...................................35, 51218
    Supplement No. 3 amended; interim..............................57507
742 Authority citation revised..............................49329, 75945
742.2 (e)(1) amended...............................................49329
742.6 (a)(1) correctly revised......................................6604
742.15 (b)(2)(i) revised...........................................49329
    Revised; interim...............................................57507
742 Supplement No. 4 removed; Supplement No. 6 amended; interim....57508
    Supplement No. 5 amended.......................................68325
    Supplement No. 6 amended.......................................49329
    Supplement No. 7 amended.......................................58037
743 Authority citation revised.....................................75945
743.1 (g)(1) revised..................................................35
743.2 (d) revised.....................................................35
744 Authority citation revised.......................49321, 49329, 74001
744.1 (a)(1) amended...............................................49321
    (a)(1) and (b)(2) revised......................................68325
744.2 (a) introductory text and (b) revised........................68326
744.3 (a) introductory text, (b) and (d)(1) revised................68326
744.4 (a) and (d)(1) revised.......................................68326
744.5 (a) amended..................................................68326
744.6 (a)(1)(i) introductory text, (ii), (3) and (b) revised.......68326
744.9 Removed; interim.............................................57509
744.11 Added.......................................................49321
744.16 Added.......................................................49322
744.17 (a) correctly amended........................................6605
744.21 (d) revised.................................................49329
    (a) introductory text revised..................................58037
744 Supplement No. 2 amended..........................................36
    Supplement No. 4 amended................................54503, 74001
    Supplement No. 5 added.........................................49322
745 Authority citation revised.................................36, 75945
745.1 (a)(2) and (b)(3) revised....................................38910
745.2 (a)(2) revised...............................................38910
745 Supplement No. 2 amended.......................................38910
746 Authority citation revised.....................................57509
746.1 (a)(1) amended..................................................36
746.3 (c) amended; interim.........................................57509
747 Authority citation revised.....................................75945
748 Authority citation revised.....................................49329
748.1 (a) revised; (d) added.......................................49329
748.2 (a) amended; (c) revised........................................36
    (c) removed....................................................49330
748.3 (b) introductory text and (2) revised; (b)(1) and (c) 
        amended....................................................49330
748.4 (b)(1) and (2)(ii) amended...................................49330
748.5 Introductory text and (b) amended............................49330
748.6 (a) and (e) revised; (b) amended.............................49330
748.7 (a)(1) amended..................................................36
748.10 (a) amended; (b) revised.......................................36
748.15 (a)(1), (f)(1)(i) introductory text, (A) and (B) amended.......37
748 Supplement No. 1 correctly amended.............................21036
    Supplement No. 2 amended; interim..............................57509
    Supplement No. 2 amended.......................................68327
    Supplements No. 4 and 5 amended...................................37
    Supplement No. 7 correctly amended..............................6605
750 Authority citation revised.....................................49330
750.3 (b)(2)(iii) revised; (b)(2)(iv) removed; (b)(2)(v) 
        redesignated as new (b)(2)(iv); interim....................57509

[[Page 989]]

750.7 (h)(3) amended...............................................49331
    (c)(2) removed; (d) introductory text amended; interim.........57510
750.8 (b) amended..................................................49331
750.9 (a) amended..................................................49331
750.11 (b)(1) amended.................................................37
752 Authority citation revised.....................................68327
752.5 Undesignated text following (c)(8)(ii) revised...............68327
752.8 (a) amended..................................................68327
752.16 (a)(1)(v) revised...........................................68327
752.17 Revised........................................................37
752 Supplement No. 3 amended.......................................68327
754 Authority citation revised..............................49331, 75945
754.2 (g)(1) revised; (j)(2) amended..................................37
    (g)(1) and (5)(i) revised......................................49331
754.4 (d)(1), (2) and (3) introductory text revised................49331
754.5 (b)(2) amended...............................................49331
754.6 (c) revised.....................................................37
754.7 (d) revised.....................................................38
754 Supplement No. 2 amended.......................................49331
756 Authority citation revised.....................................49323
756.1 (a)(3) added.................................................49323
758 Authority citation revised.....................................75945
760 Authority citation revised.....................................68327
760.1 (b)(4)(viii) amended.........................................68327
    (b)(4)(viii) correctly amended.................................74349
760.3 (f)(4)(i) amended............................................68327
762 Authority citation revised..............................56970, 57510
762.2 (b)(44) and (45) revised; (b)(46) added......................56970
    (b)(8) removed; interim........................................57510
764 Authority citation revised..............................49331, 75945
764.3 (a)(2) amended...............................................75945
764.7 (b)(2)(i) amended............................................49331
766 Authority citation revised.....................................75945
768 Authority citation revised.....................................75945
770 Authority citation revised..............................57510, 73548
770.2 (n) removed; interim.........................................57510
    (i) revised....................................................73548
772 Authority citation revised..............................49331, 75945
    Technical correction...........................................65258
772.1 Amended..........................33884, 49331, 60920, 68328, 75945
    Amended; interim...............................................57510
774 Authority citation revised.....................................51719
    Technical correction...........................................65258
    Supplement No. 1, Category 0 (ECCN 0A018) and Category 1 (ECCN 
1A001, 1A003, 1A005, 1B003, 1C004, 1C006) correctly amended........21037
    Supplement No. 1, Category 0 (ECCN 0A018) amended..............51719
    Supplement No. 1, Category 1 heading note added................58037
    Supplement No. 1, Category 1 (ECCN 1C202). Category 5 (Part I, 
ECCN 5B991; Part II, 5A001, 5A002, 5A992, 5D992) amended...........75946
    Supplement No. 1, Category 1 (ECCN 1C008, 1C009, 1C011, 1C012, 
1D001, 1D018, 1E002) and Category 2 (ECCN 2A983, 2B001) correctly 
amended............................................................21038
    Supplement No. 1, Category 1 (ECCN 1A002), Category 3 (ECCN 
3A001) and Category 6 (ECCN 6A004, 6A005, 6A995, 6E201) correctly 
amended.............................................................6605
    Supplement No. 1, Category 1 (ECCN 1A004, 1A006) amended.......60920
    Supplement No. 1, Category 1 (ECCN 1A007, 1E001, 1E201) and 
Category 2 (ECCN 2B001, 2B002, 2B003, 2B004, 2B005, 2B006, 2B007, 
2B008, 2B009 technical notes, 2B001) amended.......................60921
    Supplement No. 1, Category 1 (ECCN 1C350), Category 2 (ECCN 
2B999) and Category 9 (ECCN 9E001, 9E002) amended.....................38
    Supplement No. 1, Category 1 (ECCN 1C111, 1C116), Category 2 
(ECCN 2B116) and Category 9 (ECCN 9B106) amended...................33884
    Supplement No. 1, Category 1 (ECCN 1C352) amended..............38910
    Supplement No. 1, Category 1 (ECCN 1C353, 1C354, 1C360, 1E001, 
1E002) and Category 2 (ECCN 2B018) amended.........................58038
    Supplement No. 1, Category 1 (ECCN 1C350, 1C351, 1C352) 
amended............................................................58037
    Supplement No. 1, Category 2 (ECCN 2B003, 2B004, 2B005, 2E101, 
2E201) and Category 3 (ECCN 3A002, 3B002, 3B992, 3D002) correctly 
amended............................................................21039

[[Page 990]]

    Supplement No. 1, Category 2 (ECCN 2B119, 2B350) amended.......58039
    Supplement No. 1, Category 2 (ECCN 2B007, 2B008) and Category 
3 (ECCN 3A001) amended.............................................60923
    Supplement No. 1, Category 2 (ECCN 2B002, 2B006) amended.......60922
    Supplement No. 1, Category 2 (ECCN 2B351) and Category 4 (ECCN 
4A101, 4A980, 4A994) amended.......................................58040
    Supplement No. 1, Category 3 (ECCN 3A002) amended..............60926
    Supplement No. 1, Category 3 (ECCN 3C002, 3C005, 3C006) 
amended............................................................60928
    Supplement No. 1, Category 3 (ECCN 3D001, 3E001) and Category 
5 (ECCN 5A001) amended.............................................60929
    Supplement No. 1, Category 3 (ECCN 3A229, 3A232, 3A991, 3B001) 
amended............................................................60927
    Supplement No. 1, Category 4 (ECCN 4D993, 4E992), Category 5 
(ECCN 5A991), Category 6 (ECCN 6A995), Category 7 (ECCN 7D001, 
7E001, 7E002, 7E101) and Category 9 (ECCN 9E101) amended...........58041
    Supplement No. 1, Category 4 (ECCN 4A001, 4A003, 4A004, 
4D003), Category 5 (ECCN 5B001, 5E002), Category 6 (ECCN 6A002, 
6A004, 6A005, 6D003) and Category 8 (ECCN 8A001, 8D001) correctly 
amended............................................................21040
    Supplement No. 1, Category 5 (ECCN 5A002) amended..............60930
    Supplement No. 1, Category 5 (ECCN 5A992, 5D002, 5D992, 5E002, 
5E992) amended; interim............................................57511
    Supplement No. 1, Category 5 (ECCN 5A002) amended; interim.....57510
    Supplement No. 1, Category 6 (ECCN 6A001) amended..............60931
    Supplement No. 1, Category 6 (ECCN 6A005, 6A995) and Category 
7 (ECCN 7A002, 7A003) amended......................................60932
    Supplement No. 1, Category 7 (ECCN 7A008) and Category 9 (ECCN 
9A012, 9E003) amended..............................................60933
    Supplement No. 1, Category 7 (ECCN 7A101, 7D001, 7D003, 7E001, 
7E002) correctly amended............................................6606
    Supplement No. 1, Category 8 (ECCN 8E001) and Category 9 (ECCN 
9A004, 9B009) correctly amended....................................21041
    Supplement No. 1, Category 9 (ECCN 9A004) correctly amended....26001
    Supplement No. 1, Category 9 (ECCN 9A991) amended..............73549
    Supplement No. 3 amended.......................................56970
781--799 (Subchapter D) Added......................................65128

                                  2009

15 CFR
                                                                   74 FR
                                                                    Page
Chapter III
301 Authority citation revised.....................................30463
301.1 (c)(2) and (d) amended.......................................30463
301.2 (b), (c), (j), (k) and (o) amended...........................30463
301.3 (b) and (c) amended..........................................30463
301.4 Heading and (a) introductory text amended....................30463
301.5 (d)(1)(ii) amended...........................................30463
301.7 (b) amended..................................................30463
301.8 Heading, (a)(3), (b), (c) and (d) amended; (a)(4) revised....30463
301.9 (a) introductory text, (b) and (c) amended...................30463
301.10 (a) amended.................................................30463
Chapter VII
701 Authority citation revised.....................................68140
701.1 Amended; eff. 1-22-10........................................68140
701.2 (f), (g) and (h) revised; eff. 1-22-10.......................68140
701.4 Revised; eff. 1-22-10........................................68141
701.6 Added; eff. 1-22-10..........................................68142
730 Authority citation revised..............................48010, 68371
730.5 (d) amended..................................................52882
730 Supplement No. 1 amended.......................................23944
732 Authority citation revised.....................................48010
734 Authority citation revised..............................48010, 68371
734.4 (a)(5) redesignated as (a)(6); new (a)(5) added..............23945

[[Page 991]]

    (b)(1)(ii), (iii), (2) and note revised; (b)(1)(iv) added......52883
734.5 (c) removed..................................................52883
736 Authority citation revised................45988, 48010, 68144, 68371
736.2 (b)(8)(ii) amended...........................................68144
736 Supplement No. 1 amended.......................................45988
738 Authority citation revised..............................48010, 68371
738.4 (a)(2)(ii)(B) revised........................................52883
738 Supplement No. 1 amended................................23945, 68144
740 Authority citation revised..............................45988, 48010
740.2 (a)(11) added................................................23945
740.9 (c)(3) amended...............................................52883
740.12 (a)(2)(i), (iii), (iv) and (v) revised......................45988
740.13 (d)(2) amended..............................................52883
740.14 (b)(4) introductory text amended; (g) removed; (h) 
        redesignated as new (g)....................................45989
740.16 (a)(2), (3)(i), (ii) and (b) revised........................23945
    (b)(3) introductory text amended...............................68145
740.17 (b)(1)(i), (2)(ii), (3), (4) introductory text and 
        (e)(1)(i)(C) amended; (b)(1)(ii), (2) introductory text 
        and (4)(ii) revised........................................52883
    (b)(4)(i) amended; (b)(4)(iii) removed.........................66009
740.19 Added.......................................................45989
740 Supplement No. 1 amended.......................................68145
742 Authority citation revised.......................48010, 68145, 68371
742.2 (a)(2)(viii) and (ix) redesignated as (a)(2)(x) and (xi); 
        new (a)(2)(viii) and (ix) added............................31852
742.4 (a) amended...........................................23946, 68145
742.6 (a), (b)(1) and (2) revised..................................23946
    (a)(1) amended; (a)(4)(i) revised..............................66010
    (a)(2)(iii) and (v) amended; (a)(3) and (4)(ii) revised........68145
742.8 (a)(1), (4) and (c) revised; (a)(2) removed; interim..........2357
742.15 (b)(1) and (2) amended......................................52884
    (b)(3)(i) amended; (b)(3)(ii) removed..........................66010
742 Supplement No. 2 amended; interim...............................2357
    Supplement No. 6 amended.......................................52884
743 Authority citation revised.....................................48010
743.1 (c)(1)(iii), (v), (vi) introductory text and Note 2 revised 
                                                                   66010
743.3 Added........................................................23947
    (b) amended....................................................68146
744 Authority citation revised.......................45992, 48010, 68371
744.1 (a)(1) amended; interim.......................................2357
    (a)(1) amended.................................................52884
    (a)(1) correctly revised.......................................57062
744.8 Added; interim................................................2357
744.9 Added........................................................23948
744.10 (a) amended; (c) revised....................................45992
744.11 Introductory text and (a) amended; (b)(5) revised...........45992
744.20 Introductory text and (a) amended; (b) and (c) revised......45992
744.22 Revised.......................................................771
744 Supplement No. 2 amended.......................................23948
    Supplement No. 4 amended............8184, 11474, 35799, 45992, 68147
745 Authority citation revised.....................................68372
745 Supplement No. 2 amended.......................................31852
746 Authority citation revised..............................45990, 48011
746.2 (a)(1)(xiii) added; (b)(2) revised...........................45990
746.7 Revised; interim..............................................2357
746.8 (b)(1) amended...............................................23948
747 Authority citation revised.....................................48011
748 Authority citation revised.....................................48011
748 Supplement No. 7 amended.........................19383, 31621, 68149
750 Authority citation revised.....................................48011
752 Authority citation revised.....................................48011
754 Authority citation revised..............................48011, 68372
756 Authority citation revised.....................................48011
758 Authority citation revised.....................................48011
760 Authority citation revised.....................................48011
762 Authority citation revised.....................................48011
764 Authority citation revised.....................................48011
766 Authority citation revised.....................................48011
768 Authority citation revised.....................................48011
770 Authority citation revised.....................................48011
772 Authority citation revised.....................................48011
772.1 Amended..........................23948, 52884, 65666, 66010, 68146
774 Authority citation revised..............................48011, 68372
    Supplement No. 1, Category 0 (ECCN 0A919) amended..............23948
    Supplement No. 1, Category 1 heading revised...................66011
    Supplement No. 1, Category 1 (ECCN 1A001, 1B001, 1C001, 1C002) 
amended............................................................65666

[[Page 992]]

    Supplement No. 1, Category 1 (ECCN 1C003, 1C004, 1C005, 1C006) 
amended............................................................65667
    Supplement No. 1, Category 1 (ECCN 1D390) and Category 2 (ECCN 
2B350) amended.....................................................31852
    Supplement No. 1, Category 1 (ECCN 1C007, 1C009, 1C011, 1C012) 
and Category 2 (ECCN 2A001)........................................65668
    Supplement No. 1, Category 1 (ECCN 1B101, 1C011) amended.......57583
    Supplement No. 1, Category 1 (ECCN 1D003, 1E001, 1E002) 
amended............................................................66014
    Supplement No. 1, Category 1 (ECCN 1A007, 1A008, 1B001, 1B003, 
1C008) amended.....................................................66012
    Supplement No. 1, Category 1 (ECCN 1A001, 1A002, 1A003, 1A004) 
amended............................................................66011
    Supplement No. 1, Category 1 (ECCN 1C010, 1C018) amended.......66013
    Supplement No. 1, Category 1 Annex added.......................66015
    Supplement No. 1, Category 2 (ECCN 2B116, 2B120, 2B121, 
2B122), Category 6 (ECCN 6A108) and Category 7 (ECCN 7A003, 7A101) 
amended............................................................57584
    Supplement No. 1, Category 2 (ECCN 2B351, 2B352, 2D290, 2E001) 
amended............................................................31853
    Supplement No. 1, Category 2 (ECCN 2A983) and Category 3 (Nota 
Bene, ECCN 3A001) amended..........................................66015
    Supplement No. 1, Category 2 (ECCN 2B001, 2B004, 2B005, 2B009, 
2E003, Notes) amended..............................................65669
    Supplement No. 1, Category 3 (ECCN 3A002, 3B002, 3C001, 3C003, 
3D002, 3D003, 3D004, 3E002) amended................................65670
    Supplement No. 1, Category 3 (ECCN 3B001), Category 4 (ECCN 
4D001, 4D003, 4E001) and Category 5 (ECCN 5A001) amended...........66017
    Supplement No. 1, Category 3 (ECCN 3E003) and Category 4 (ECCN 
4A001, 4A003, 4A004, Technical Note) amended.......................65671
    Supplement No. 1, Category 3 (ECCN 3A002) amended..............66016
    Supplement No. 1, Category 5 (ECCN 5E002) and Category 6 (ECCN 
6A001, 6A004) amended..............................................66020
    Supplement No. 1, Category 5 (ECCN 5B001, 5D001, 5E001) 
amended............................................................66018
    Supplement No. 1, Category 5 (ECCN 5A002, 5B002, 5D002) 
amended............................................................66019
    Supplement No. 1, Category 5 (ECCN 5B002, 5E002, 5E992) 
amended............................................................52885
    Supplement No. 1, Category 6 (ECCN 6A006, 6A008) amended.......66023
    Supplement No. 1, Category 6 (ECCN 6A003, 6D994) amended.......23949
    Supplement No. 1, Category 6 (ECCN 6A996, 6D003, 6E993) and 
Category 7 (ECCN 7A003) amended....................................66024
    Supplement No. 1, Category 6 (ECCN 6A005) amended..............66021
    Supplement No. 1, Category 6 (ECCN 6A007, 6B004, 6B008, 6C002, 
6C004, 6C005, 6E003) amended.......................................65672
    Supplement No. 1, Category 7 (ECCN 7A102, 7A193)...............57585
    Supplement No. 1, Category 7 (ECCN 7D003, 7E001, 7E003, 7E004) 
and Category 8 (ECCN 8B001, 8C001, 8D001) amended..................65674
    Supplement No. 1, Category 7 (ECCN 7A001, 7A002, 7A004, 7A006, 
7A008, 7B001, 7B002, 7D002) amended................................65673
    Supplement No. 1, Category 8 (ECCN 8E001, 8E002) and Category 
9 (Product Group A Nota Bene, ECCN 9A001, 9A002, 9A003, 9A005, 
9A006, 9A010, 9A011, 9B001, 9B002, 9B003, 9B004, 9B005) amended....65675
    Supplement No. 1, Category 8 (ECCN 8A001, 8A002) amended.......66025
    Supplement No. 1, Category 9 (ECCN 9A018) amended..............20871
    Supplement No. 1, Category 9 (ECCN 9A012) amended..............66027

[[Page 993]]

    Supplement No. 1, Category 9 (ECCN 9B007, 9B009, 9B010, 9D001, 
9D003, 9D004, Product Group E Note, 9E001, 9E003) amended..........65676

                                  2010

15 CFR
                                                                   75 FR
                                                                    Page
Chapter VII
730 Authority citation revised..............................53865, 78155
730 Supplement No. 1 amended.......................................36489
732 Authority citation revised.....................................53865
732.2 (f)(1)(i) revised............................................44889
732.3 (f)(1)(i) revised............................................44889
734 Authority citation revised.......................53865, 54276, 78155
734.3 (b)(4) removed...............................................31680
    (d) added; interim.............................................45054
734.4 (b)(1)(ii), (iii) and (iv) revised; (b)(1)(v) added..........36489
    (a)(4) and (b)(1) introductory text revised....................36514
    (a)(4) amended.................................................54276
736 Authority citation revised..............................53865, 78155
736.2 (b)(3)(i) revised............................................44890
738 Authority citation revised.....................................53866
738.4 (a)(2)(ii)(B) amended........................................36490
738 Supplement No. 1 corrected......................................1020
    Supplement No. 1 amended.......................................36514
740 Authority citation revised.....................................53866
740.2 (a)(8) introductory text and (ii) revised....................14339
740.5 (d)(2) revised...............................................31680
740.6 (a)(1)(i), (ii), (iii), (2)(i) and (ii) amended..............44890
740.7 (d)(4)(ii) revised...........................................31680
    (b)(2)(i) removed; (c)(3)(ii) and (iii) revised................36514
740.10 (a)(3)(vi) redesignated as (a)(3)(vii); new (a)(3)(vi) 
        added; (c) heading and (1) introductory text revised.......14339
740.11 Heading and introductory text revised; (d) added.............6303
    (d)(3)(C) redesignated as (d)(3)(iii)..........................31681
740.13 (f) introductory text revised...............................14339
740.17 Revised.....................................................36490
    (b) introductory text correctly amended........................43820
740.18 (c)(5) amended..............................................17054
    (c)(5) revised.................................................31681
742 Authority citation revised.......................53866, 54276, 78155
742.6 (a)(4)(i) and (b)(2) revised; (c) redesignated as (c)(1); 
        (c)(2) added...............................................14339
742.7 (a)(5) redesignated as (a)(6); new (a)(5) added; heading and 
        (d) revised................................................41082
742.9 (b)(1)(xii), (xiii) and (xiv) added..........................14340
742.10 (b)(1)(xii), (xiii) and (xiv) added.........................14340
742.11 Heading and (d) revised.....................................41082
742.14 (a) amended.................................................36515
    (a) and (b) introductory text revised..........................54276
742.15 (a) Note and (b) revised; (c) and (d) added.................36494
    (b) correctly amended..........................................43821
742.19 (b)(1)(xxii), (xxiii) and (xxiv) added......................14340
742 Supplement No. 2 amended.......................................14340
    Supplements No. 5 and 6 revised................................36497
    Supplement No. 8 added.........................................36498
743 Authority citation revised..............................53866, 54276
743.1 (c)(1)(vi), (ix) and (2) revised.............................54276
744 Authority citation revised.......................53866, 54277, 78155
744.1 (a)(1) amended...............................................31681
744.15 Removed.....................................................31681
744 Supplement No. 2 amended.......................................54277
    Supplement No. 4 amended.............1701, 7359, 29885, 36519, 78887
745 Authority citation revised.....................................78155
746 Authority citation revised.....................................53866
747 Authority citation revised.....................................53866
748 Authority citation revised.....................................53866
748.1 (a) introductory text amended; (d) introductory text and 
        (1)(i) revised.............................................36499
748.3 Heading, (a) and (d) revised.................................36499
    (a) introductory text amended; (b)(3) and (c)(4) added; 
interim............................................................45054
748.7 (c) removed; (d) redesignated as new (c).....................17054
    (a)(1), (2)(i) and (iv)(A) amended.............................31681
748.8 (r) amended..................................................36500
748.9 (i)(1) revised...............................................31681

[[Page 994]]

748.13 (b) revised; (c)(2) amended.................................31681
748 Supplements No. 1 and 2 amended................................36500
    Supplement No. 2 amended................................14340, 44890
    Supplement No. 7 amended............2437, 25765, 27187, 62465, 67031
750 Authority citation revised.....................................53866
750.5 Removed......................................................31681
750.7 (a) amended; (b) and (h)(4) revised..........................17054
752 Authority citation revised.....................................53866
754 Authority citation revised.....................................53866
756 Authority citation revised.....................................53866
758 Authority citation revised.....................................53866
760 Authority citation revised.....................................53866
762 Authority citation revised.....................................53866
762.2 (a)(1) revised; (a)(9) amended; (a)(10) redesignated as 
        (a)(11); new (a)(10) added.................................17054
762.4 Amended......................................................17055
764 Authority citation revised.....................................53866
766 Authority citation revised.....................................53866
766.22 (e) removed.................................................33683
766.24 (e)(5) amended; (g) removed.................................33683
766 Supplement No. 1 amended.......................................31681
768 Authority citation revised.....................................53867
770 Authority citation revised.....................................53867
772 Authority citation revised..............................53867, 54277
772.1 Amended.................................20522, 36500, 36515, 54277
    Correctly amended..............................................62676
774 Authority citation revised..............................53867, 54277
    Supplement No. 1, Category 0 (ECCN 0A978, 0A981, 0A982) 
amended............................................................41082
    Supplement No. 1, Category 0 (ECCN 0A983, 0A984, 0A985, 0A987, 
0E984) and Category 3 (ECCN 3A981) amended.........................41083
    Supplement No. 1, Category 0 (ECCN 0E018), Category 3 (ECCN 
3A992) and Category 4 (ECCN 4A003, 4A994, 4B994, 4C994, 4E992, 
4E993) amended.....................................................36515
    Supplement No. 1, Category 1 (ECCN 1C011, 1C111, 1C117) and 
Category 9 (ECCN 9A101) amended....................................20522
    Supplement No. 1, Category 1 (ECCN 1A004) and Category 5 (ECCN 
5A001) corrected...................................................13675
    Supplement No. 1, Category 1 (ECCN 1C360, 1E998) amended........7550
    Supplement No. 1, Category 1 (ECCN 1A002, 1B001, 1C002, 1C006, 
1C007, 1C008, 1C010) amended.......................................54278
    Supplement No. 1, Category 1 (ECCN 1C011, 1E002, Annex) and 
Category 2 (ECCN 2B006) amended....................................54279
    Supplement No. 1, Category 1 (ECCN 1A001) amended..............54277
    Supplement No. 1, Category 1 (ECCN 1C351) and Category 2 (ECCN 
2B350) amended.....................................................13674
    Supplement No. 1, Category 2 (ECCN 2B001) and Category 4 
Technical Note amended.............................................31682
    Supplement No. 1, Category 2 (ECCN 2B001) and Category 4 
Technical Note correctly amended...................................33989
    Supplement No. 1, Category 2 (ECCN 2A984, 2D984, 2E001, 2E002, 
2E984) amended.....................................................14341
    Supplement No. 1, Category 3 (ECCN 3A001, 3A002, 3B001) and 
Category 4 (ECCN 4A001) amended....................................54280
    Supplement No. 1, Category 4 (ECCN 4A003, Product Group D 
Note, ECCN 4D001, 4D003, 4D993, 4E001) and Category 5 (Note 1, 
Nota bene, ECCN 5A001, 5B001, 5D001, 5E001) amended................54281
    Supplement No. 1, Category 5 (ECCN 5A002) amended..............36501
    Supplement No. 1, Category 5 (ECCN 5A992, 5D002, 5D992) 
amended; Supplement 3 revised......................................36502
    Supplement No. 1, Category 5 (ECCN 5A001), Category 7 (ECCN 
7A008), Category 8 (ECCN 8A018) and Category 9 (ECCN 9A018, 9A991, 
9E003) amended.....................................................36516
    Supplement No. 1, Category 5 (Note 3 and Note 5) amended.......36500
    Supplement No. 1, Category 6 (ECCN 6A001, 6A005) amended.......54282

[[Page 995]]

    Supplement No. 1, Category 6 (ECCN 6A008, 6C004, 6D003) 
amended............................................................54283
    Supplement No. 1, Category 6 (ECCN 6A005, 6A008) and Category 
9 (ECCN 9A001) correctly amended...................................62676
    Supplement No. 1, Category 7 (ECCN 7A005, 7B001, 7D003, 7E004) 
and Category 9 (ECCN 9A001, 9A003, 9B002, 9D003) amended...........54284
    Supplement No. 1, Category 9 (ECCN 9E003) amended..............54285

                                  2011

15 CFR
                                                                   76 FR
                                                                    Page
Chapter VII
730 Authority citation revised................21631, 40604, 58394, 76893
730.8 (c) amended..................................................40604
730 Supplement No. 1 amended.......................................40604
732 Authority citation revised.....................................58395
732.1 (d)(2) and (3) amended.......................................77116
732.2 (b) revised...................................................1062
    (b)(1), (2) and (3) added......................................23874
732.3 (d)(4) and (i) revised.......................................77116
732.4 (b)(3)(iii) amended; (b)(3)(iv) revised......................35287
734 Authority citation revised..............................58395, 76893
734.2 (b)(9)(ii) amended............................................1062
734.3 (b)(3) introductory text revised; (b)(2) and (3) Note 
        amended.....................................................1062
734.4 (a)(4) and (b)(1) introductory text amended..................29618
    Amended........................................................36988
734.7 (c) revised...................................................1062
734.8 (a) amended...................................................1062
734.9 Amended.......................................................1062
734 Supplement No. 1 amended........................................1062
736 Authority citation revised..............................58395, 76893
736 Supplement No. 1 amended.......................................77116
738 Authority citation revised.....................................58395
738.2 (d)(2)(ii) amended...........................................35287
738.3 (b) revised..................................................70339
738 Supplement No. 1 amended............4231, 23874, 41048, 70339, 77117
740 Authority citation revised.....................................58395
740.2 Correctly amended............................................34579
    (a)(4)(ii) and (iii) revised; (a)(4)(iv) added.................35287
    (a)(6) revised.................................................77117
740.7 (c)(1), (3)(ii), (d)(1) and (3)(i) amended...................36988
    (c)(1) amended.................................................70339
740.9 Heading revised; (a)(2)(i)(A) and (viii)(A) amended..........77117
740.11 Supplement No. 1 amended.............................29618, 35287
    Supplement No. 1 correctly amended.............................34579
740.13 (e) revised..................................................1062
740.16 (g) removed.................................................70339
740.17 Introductory text, (a)(1)(i), (2) and (b)(1) amended........29619
740.20 Added.......................................................35287
    (b)(2)(v) and (vi) introductory text revised...................56101
740 Supplement No. 1 amended..........................4231, 41048, 70339
742 Authority citation revised..............................58395, 76893
742.1 (d) amended..................................................77117
742.3 (a)(2) amended................................................4231
742.5 (d) revised...................................................4231
742.9 (e) revised..................................................77117
742.14 (a) and (b) introductory text revised.......................29619
742.15 (b) introductory text amended; (b) introductory text note 
        added.......................................................1063
    (a)(1) amended.................................................29619
742.18 (a)(1), (b)(1)(i) introductory text, (ii) and (iii) revised
                                                                   56101
743 Authority citation revised..............................29619, 58395
743.1 (c)(1)(ii) note, (v), (vi) introductory text and (viii) 
        revised....................................................29619
    (c)(1)(vi) notes correctly removed.............................34579
    (b)(4) added...................................................35289
743.2 Amended......................................................36988
743.3 (d) following (e) redesignated as (f)........................58397
744 Authority citation revised................21631, 50410, 58395, 76893
744 Supplement No. 4 amended....4231, 21631, 30000, 37633, 44261, 50410, 
                                              63186, 67062, 71869, 78148
745 Authority citation revised.....................................76894
746 Authority citation revised.....................................58395
746.1 (a) introductory text revised; (a)(3) added..................77117
746.9 Revised......................................................77117
747 Authority citation revised.....................................58395
748 Authority citation revised.....................................58395
748.2 (a) revised..................................................40604

[[Page 996]]

748.7 Revised.......................................................7105
748.9 (b)(2) amended...............................................70339
748 Supplement No. 4 amended.......................................70340
    Supplement No. 5 amended.......................................58397
    Supplement No. 7 amended...................2805, 37636, 40805, 69612
750 Authority citation revised.....................................58395
750.8 (a) amended..................................................12280
752 Authority citation revised.....................................58395
754 Authority citation revised.....................................58395
754.2 (j)(2) removed; (j)(3) redesignated as new (j)(2)............40605
756 Authority citation revised.....................................58395
758 Authority citation revised.....................................58395
760 Authority citation revised.....................................58396
762 Authority citation revised.....................................58396
764 Authority citation revised.....................................58396
766 Authority citation revised.....................................58396
768 Authority citation revised.....................................58396
770 Authority citation revised.....................................58396
770.2 (a)(1) revised...............................................23874
772 Authority citation revised.....................................58396
772.1 Amended.........................................1063, 29620, 58397
774 Authority citation revised.....................................58396
    Supplement No. 1, Category 0 (ECCN 0B002), Category 1 (ECCN 
1B233, 1C006, 1E201, 1E355), Category 2 (ECCN 2B005), Category 6 
(ECCN 6A995, 6D993), Category 7 (ECCN 7D001) and Category 9 (ECCN 
9D001, 9D002) amended..............................................23875
    Supplement No. 1, Category 1 (ECCN 1C351, 1C352) and Category 
2 (ECCN 2B350) amended.............................................22018
    Supplement No. 1, Category 1 (ECCN 1C011, 1C111) and Category 
2 (ECCN 2A001, 2B001, 2B005, 2B006) amended........................29622
    Supplement No. 1, Category 1 (ECCN 1C351) amended..............56102
    Supplement No. 1, Category 1 (ECCN 1A002, 1A004) amended.......29620
    Supplement No. 1, Category 1 (ECCN 1B001, 1C003, 1C006, 1C008, 
1C010) amended.....................................................29621
    Supplement No. 1, Category 1 (ECCN 1E001) correctly amended; 
CFR correction.....................................................79054
    Supplement No. 1, Category 1 (ECCN 1C352, 1C360, 1C991) 
amended............................................................56103
    Supplement No. 1, Category 1 (ECCN 1C118) correctly amended; 
CFR correction.....................................................66181
    Supplement No. 1, Category 1 (ECCN 1C350, 1C355) amended.......77118
    Supplement No. 1, Category 1 (ECCN 1A002, 1C001, 1C007, 1C010, 
1C012, 1D002, 1E001, 1E002) amended................................35289
    Supplement No. 1, Category 1 (ECCN 1C395) amended..............77119
    Supplement No. 1, Category 2 (ECCN 2B350) correctly amended....26583
    Supplement No. 1, Category 2 (ECCN 2B008) correctly amended; 
CFR correction.....................................................66181
    Supplement No. 1, Category 2 (ECCN 2A101), Category 3 (ECCN 
3A001, 3E001), Category 6 (ECCN 6D001, ECCN 6E001, 6E002) AND 
Category 8 (ECCN 8A002) correctly amended..........................34579
    Supplement No. 1, Category 2 (ECCN 2D001, 2E001, 2E002), 
Category 3 (ECCN 3A002, 3B001, 3D001, 3E001) and Category 4 (ECCN 
4A001, 4D001) amended..............................................35290
    Supplement No. 1, Category 3 (ECCN 3A991, 3B001, 3C001, 3E001) 
and Category 4 (ECCN 4A001) amended................................29625
    Supplement No. 1, Category 3 (ECCN 3A002) amended..............29624
    Supplement No. 1, Category 3 (ECCN 3A001) and Category 5, Part 
II amended.........................................................58397
    Supplement No. 1, Category 3 (ECCN 3A001) amended..............29623
    Supplement No. 1, Category 4 (ECCN 4E001), Category 5 (ECCN 
5A001, 5B001, 5D001, 5E001) and Category 6 (ECCN 6A001, 6A002, 
6A003, 6A004) amended..............................................35291
    Supplement No. 1, Category 4 (ECCN 4A003) amended..............36988
    Supplement No. 1, Category 5 (Part I Notes, ECCN 5A001, 5D001, 
5E001) amended.....................................................29626
    Supplement No. 1, Category 5 (ECCN 5D002) amended...............1063

[[Page 997]]

    Supplement No. 1, Category 5 (ECCN 5A002, 5D002, 5E002) and 
Category 6 (ECCN 6A001) amended....................................29627
    Supplement No. 1, Category 6 (ECCN 6A002, 6A003, 6A005, 6A006) 
amended............................................................29628
    Supplement No. 1, Category 6 (ECCN 6A008, 6D001, 6D003, 6E001, 
6E002) amended.....................................................29629
    Supplement No. 1, Category 6 (ECCN 6A006, 6A008, 6B008, 6D001, 
6D003, 6E001, 6E002) and Category 7 (ECCN 7D003, 7E001) amended....35292
    Supplement No. 1, Category 6 (ECCN 6E003), Category 7 (ECCN 
7A001, 7A002, 7A003, 7E004) and Category 8 (ECCN 8A001) amended....29630
    Supplement No. 1, Category 6 (ECCN 6A005) corrected............30538
    Supplement No. 1, Category 7 (ECCN 7E002) and Category 8 (ECCN 
8A001, 8A002, 8D001, 8D002, 8E001) amended.........................35293
    Supplement No. 1, Category 8 (ECCN 8A002) and Category 9 (ECCN 
9A001, 9A003, 9A991, 9B001, 9B002, 9B008, 9D003) amended...........29631
    Supplement No. 1, Category 8 (ECCN 8E002) and Category 9 (ECCN 
9B001, 9D001, 9D002, 9D004, 9E001, 9E002, 9E003) amended...........35294
    Supplement No. 1, Category 9 (ECCN 9D004, 9E001, 9E003) and 
Supplement No. 3 amended...........................................29632
    Supplement No. 9, Category 9 (ECCN 9D004) corrected; CFR 
correction.........................................................81793

                                  2012

15 CFR
                                                                   77 FR
                                                                    Page
Chapter III
336 Removed........................................................31183
Chapter IV
400 Revised........................................................12139
400.21 OMB number pending..........................................12139
400.22 OMB number pending..........................................12139
400.23 OMB number pending..........................................12139
400.25 OMB number pending..........................................12139
400.43 OMB number pending in part..................................12139
Chapter VII
730 Authority citation revised..............................10357, 56767
732 Authority citation revised.....................................56767
732.3 (b)(4) added.................................................22197
    (d)(4) amended; (i) introductory text revised..................42975
734 Authority citation revised.....................................56767
734.3 (c) revised..................................................22198
734.4 (a)(1) amended...............................................39367
736 Authority citation revised.....................................56767
738 Authority citation revised.....................................56767
738.3 (a)(1) revised...............................................39367
738 Supplement No. 1 amended.......................................42975
738.1 (a)(3) added.................................................22198
740 Technical correction............................................3386
    Authority citation revised.....................................56768
740.1 (d) heading correctly revised; CFR correction................40493
740.2 (a)(14) and note added.......................................22198
    (a)(3) and (7) revised.........................................39367
740.7 (c)(3)(ii), (iii), (d)(3)(i) and (ii) amended................39367
740.11 Supplement No. 1 amended....................................39367
740.16 (a)(2), (b)(2) and (3) introductory text revised............39367
740.20 (b)(2)(viii) added...........................................1018
    (b)(2)(ix) added...............................................39368
742 Technical correction............................................3386
    Authority citation revised.....................................56768
742.6 (a)(1) amended................................................1018
    (a)(7) added; (b)(1) amended...................................22198
    (a)(1) revised.................................................39368
742.13 Heading and (a)(1) revised..................................39368
742.15 (b) introductory text note correctly moved; (b)(3) 
        introductory text note correctly added; CFR correction.....40493
742 Supplement No. 2 correctly amended; CFR correction.............40493
743 Authority citation revised.....................................56768
743.1 (c)(1)(iii) and (vi) revised; (c)(1)(vi) Notes added.........39368
743.2 (b) amended..................................................39369
743 Supplement No. 1 amended.......................................39369
744 Authority citation revised................10358, 56768, 61256, 71098
744.9 (a) Heading revised; introductory text and (b) amended.......39369
744.19 Revised......................................................5388

[[Page 998]]

744 Supplement No. 4 amended....23116, 24590, 25057, 58011, 61256, 71098
    Supplement No. 4 correctly amended.............................28251
    Supplement No. 4 corrected.....................................72917
746 Authority citation revised.....................................56768
746.1 (b) revised..................................................42975
746.7 (a)(1) revised...............................................39369
746.8 Removed......................................................42975
747 Authority citation revised.....................................56768
748 Authority citation revised.....................................56768
748.5 (b) correctly amended; CFR correction........................40494
748.15 (g), (h) and (i) added; eff. 1-18-13........................75013
748 Supplement No. 7 amended.........................10955, 39369, 40260
    Supplement No. 7 correctly amended; CFR correction.............32010
    Supplement No. 2 correctly amended; CFR correction.............40494
750 Authority citation revised.....................................56768
750.7 (c)(1)(ii) correctly amended; CFR correction.................40494
752 Authority citation revised.....................................56768
752.3 (a)(7) revised...............................................39369
752 Supplements No. 1 and No. 3 correctly amended; CFR correction 
                                                                   40494
754 Authority citation revised.....................................56768
756 Authority citation revised.....................................56768
758 Authority citation revised.....................................56768
760 Authority citation revised.....................................56768
760 Supplement No. 7 correctly amended; CFR correction.............40494
762 Authority citation revised.....................................56768
764 Authority citation revised.....................................56768
766 Authority citation revised.....................................56768
768 Authority citation revised.....................................56768
770 Authority citation revised.....................................56768
770.2 (l)(1) revised...............................................39370
772 Authority citation revised.....................................56769
772.1 Correctly amended; CFR correction............................41670
    Amended........................................................39370
774 Authority citation revised.....................................56769
774.1 Revised......................................................22199
774 Supplement No. 1, Category 3 (ECCN 3A001, 3A981) amended........1018
    Supplement No. 1, Category 3 (ECCN 3D982, 3E982) amended........1019
    Technical correction............................................3386
    Supplement No. 1, Category 0 (ECCN 0A018) amended..............42975
    Supplement No. 1, Category 0 (ECCN 0A018, 0B001), Category 1 
(ECCN 1B999, 1C350, 1C999, EAR99), Category 2 (EAR99), Category 3 
(ECCN 3A991), Category 4 (ECCN 4D994) and Category 5 (Part 1) 
amended............................................................72919
    Supplement No. 1, Category 0 (ECCN 0A521, 0B521, 0C521, 0D521, 
0E521) amended.....................................................22199
    Supplement No. 1, Category 0 (ECCN 0A918, 0A919, 0A984, 0A985, 
0A986, 0A987, 0A988, 0B986, 0E018) amended.........................42976
    Supplement No. 1, Category 0 (ECCN 0A919), and Category 1 
(ECCN 1A004, 1A005, 1C006) amended.................................39370
    Supplement No. 1, Category 0 (ECCN 0A981, 0A985, 0A986, 
0B986), Category 1 (ECCN 1A004, 1B001, 1C351) and Category 2 (ECCN 
2B009, 2E003, 2E018, 2E101) corrected; CFR correction..............41670
    Supplement No. 1, Category 0 (ECCN 0E918, 0E984) and Category 
1 (ECCN 1A005, 1A008, 1B018, 1C018, 1D018) amended.................42977
    Supplement No. 1, Category 1 (ECCN 1C008, Annex), Category 2B 
Notes and Category 2 (ECCN 2B001) amended..........................39371
    Supplement No. 1, Category 1 (ECCN 1C351, 1C353) amended.......39163
    Supplement No. 1, Category 2 (ECCN 2B008, 2B009, 2B201, 2B991, 
2E001) amended.....................................................39372
    Supplement No. 1, Category 2 (ECCN 2B018, 2D018, 2E018), 
Category 5 (ECCN 5A980, 5E980) and Category 6 (ECCN 6A002, 6A003, 
6E001) amended.....................................................42978
    Supplement No. 1, Category 2 (ECCN 2B350, 2B352) amended.......39164
    Supplement No. 1, Category 3 (ECCN 3A001, 3A002, 3C001), 
Category 4 (ECCN 4A994, 4E993) and Category 5 (ECCN 5A001, 5A991, 
5A003, 5D002, 5E002) corrected; CFR correction.....................43711

[[Page 999]]

    Supplement No. 1, Category 3 (ECCN 3C001, 3E001, 3E002, 
3E003), and Category 4 (ECCN 4A003) amended........................39374
    Supplement No. 1, Category 3A Notes revised; Category 3 (ECCN 
3A001, 3A002, 3B001) amended.......................................39373
    Supplement No. 1, Category 4 (Notes), Category 5 (Part I, ECCN 
5A001, 5A980, 5B001) amended.......................................39375
    Supplement No. 1, Category 5 (Part I, ECCN 5D001, 5D980, 
5E001) amended.....................................................39376
    Supplement No. 1, Category 5 (Part I, ECCN 5E980), (Part II, 
ECCN 5A002), and Category 6 (ECCN 6A001, 6A002) amended............39377
    Supplement No. 1, Category 5 (Part 1, ECCN 5A101, 5A991, Part 
2), Category 6 (ECCN 6A005), Category 8 (ECCN 8A992) and Category 
9 (ECCN 9B116) amended.............................................72920
    Supplement No. 1, Category 5 (ECCN 5A003) corrected to (ECCN 
5A002); CFR correction.............................................48429
    Supplement No. 1, Category 6 (ECCN 6A003) amended..............39379
    Supplement No. 1, Category 6 (ECCN 6B008, 6D991, 6D994, 6E001, 
6E002, 6E101) amended..............................................39381
    Supplement No. 1, Category 6 (ECCN 6E002), Category 8 (ECCN 
8A018, 8A918) and Category 9 (ECCN 9A018, 9A991) amended...........42979
    Supplement No. 1, Category 7 (ECCN 7A002, 7A005, 7A008, 7B101, 
7E003) and Category 9 (9E003) corrected............................46948
    Supplement No. 1, Category 7 (ECCN 7A003, 7A004, 7A005, 7D002, 
7D003, 7E004), Category 8 (ECCN 8A002) and Category 9 (ECCN 9A012, 
9D004, Product Group E) amended....................................39382
    Supplement No. 1, Category 9 (ECCN 9D018, 9E018) amended.......42980
    Supplement No. 1, Category 9 (ECCN 9E003) amended..............39383
    Supplement No. 5 added.........................................22200


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