[Congressional Record Volume 165, Number 181 (Wednesday, November 13, 2019)]
[Senate]
[Pages S6549-S6562]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       Note to paragraph (d): Kinetic energy weapons systems 
     include but are not limited to launch systems and subsystems 
     capable of accelerating masses larger than 0.1g to velocities 
     in excess of 1.6 km/s, in single or rapid fire modes, using 
     methods such as: Electromagnetic, electrothermal, plasma, 
     light gas, or chemical. This does not include launch systems 
     and subsystems used for research and testing facilities 
     subject to the EAR, which are controlled on the CCL under 
     ECCN 2B232.
       (e) Signature reduction devices [control materials (e.g., 
     parasitic, structural, coatings, screening) techniques, and 
     equipment]specially [specifically]designed [developed, 
     configured, adapted or modified to alter or reduce the 
     signature (e.g., muzzle flash suppression, radar, infrared, 
     visual, laser/electro optical, acoustic) of] for the guns and 
     armament controlled in paragraphs (a), (b), and (d) of this 
     category (e.g., muzzle flash suppression devices)[defense 
     articles controlled by this category.]
       * (f)--(i) [Reserved][Engines specifically designed or 
     modified for the self-propelled guns and howitzers in 
     paragraph (a) of this category.]
       [(g) Tooling and equipment specifically designed or 
     modified for the production of defense articles controlled by 
     this category.
       [(h) Test and evaluation equipment and test models 
     specifically designed or modified for the articles controlled 
     by this category. This includes but is not limited to 
     diagnostic instrumentation and physical test models.
       [(i) Autoloading systems for electronic programming of 
     projectile function for the defense articles controlled in 
     this Category.]
       (j) [All other components, p]Parts, components, 
     accessories, and attachments, as follows: [and associated 
     equipment specifically designed or modified for the articles 
     in paragraphs (a) through (i) of this category. This includes 
     but is not limited to mounts and carriages for the articles 
     controlled in this category.]
       (1) Gun barrels, rails, tubes, and receivers specially 
     designed for the weapons controlled in paragraphs (a) and (d) 
     of this category;
       (2) Sights specially designed to orient indirect fire 
     weapons;
       (3) Breech blocks for the weapons controlled in paragraphs 
     (a) and (d) of this category;
       (4) Firing mechanisms for the weapons controlled in 
     paragraphs (a) and (d) of this category and specially 
     designed parts and components therefor;
       (5) Systems for firing superposed or stacked ammunition and 
     specially designed parts and components therefor;
       (6) Servo-electronic and hydraulic elevation adjustment 
     mechanisms;
       (7) Muzzle brakes;
       (8) Bore evacuators;
       (9) Independent ammunition handling systems for the guns 
     and armament controlled in paragraphs (a), (b), and (d) of 
     this category;
       (10) Components for independently powered ammunition 
     handling systems and platform interface, as follows:
       (i) Mounts;
       (ii) Carriages;
       (iii) Gun pallets;
       (iv) Hydro-pneumatic equilibration cylinders; or
       (v) Hydro-pneumatic systems capable of scavenging recoil 
     energy to power howitzer functions;
       Note to paragraph (j)(10): For weapons mounts specially 
     designed for surface vessels and special naval equipment, see 
     Category VI. For weapons mounts specially designed for ground 
     vehicles, see Category VII.
       (11) Ammunition containers/drums, ammunition chutes, 
     ammunition conveyor elements, ammunition feeder systems, and 
     ammunition container/drum entrance and exit units, specially 
     designed for the guns and armament controlled in paragraphs 
     (a), (b), and (d) of this category;
       (12) Systems and equipment for the guns and armament 
     controlled in paragraphs (a) and (d) of this category for use 
     in programming ammunition, and specially designed parts and 
     components therefor;
       (13) Aircraft/gun interface units to support gun systems 
     with a designed rate of fire greater than 100 rounds per 
     minute and specially designed parts and components therefor;
       (14) Recoil systems specially designed to mitigate the 
     shock associated with the firing process of guns integrated 
     into air platforms and specially designed parts and 
     components therefor;
       (15) Prime power generation, energy storage, thermal 
     management, conditioning, switching, and fuel-handling 
     equipment, and the electrical interfaces between the gun 
     power supply and other turret electric drive components 
     specially designed for kinetic weapons controlled in 
     paragraph (d) of this category;
       (16) Kinetic energy weapon target acquisition, tracking 
     fire control, and damage assessment systems and specially 
     designed parts and components therefor; or
       *(17) Any part, component, accessory, attachment, 
     equipment, or system that:
       (i) Is classified;
       (ii) Contains classified software; or
       (iii) Is being developed using classified information.
       ``Classified'' means classified pursuant to Executive Order 
     13526, or predecessor order, and a security classification 
     guide developed pursuant thereto or equivalent, or to the 
     corresponding classification rules of another government or 
     intergovernmental organization.
       (k) Technical data (see [as defined in] Sec. 120.10 of this 
     subchapter) and defense services (see [as defined in] 
     Sec. 120.9 of this subchapter) directly related to the 
     defense articles described in paragraphs (a) , (b), (d), (e), 
     and [through]
       (j) of this category and classified technical data directly 
     related to items controlled in ECCNs 0A602, 0B602, 0D602, and 
     0E602 and defense services using the classified technical 
     data. (See Sec. 125.4 of this subchapter for 
     exemptions.)[Technical data directly related to the 
     manufacture or production of any defense articles described 
     elsewhere in this category that are designated as Significant 
     Military Equipment (SME) shall itself be designed SME.]
       (1)-(w) [Reserved] [The following interpretations explain 
     and amplify the terms used in this category and elsewhere in 
     this subchapter:
       [(1) The kinetic energy weapons systems in paragraph (d) of 
     this category include but are not limited to:
       [(i) Launch systems and subsystems capable of accelerating 
     masses larger than 0.1g to velocities in excess of 1.6km/s, 
     in single or rapid fire modes, using methods such as: 
     electromagnetic, electrothermal, plasma, light gas, or 
     chemical;
       [(ii) Prime power generation, electric armor, energy 
     storage, thermal management; conditioning, switching or fuel 
     handling equipment; and the electrical interfaces between 
     power supply gun and other turret electric drive functions;
       [(iii) Target acquisition, tracking fire control or damage 
     assessment systems; and
       [(iv) Homing seeker, guidance or divert propulsion (lateral 
     acceleration) systems for projectiles.
       [(2) The articles in this category include any end item, 
     component, accessory, attachment part, firmware, software or 
     system that has been designed or manufactured using technical 
     data and defense services controlled by this category.
       [(3) The articles specifically designed or modified for 
     military application controlled in this category include any 
     article specifically developed, configured, or adpated for 
     military applications.]
       (x) Commodities, software, and technology subject to the 
     EAR (see Sec. 120.42 of this subchapter) used in or with 
     defense articles.
       Note to paragraph (x): Use of this paragraph is limited to 
     license applications for defense articles where the purchase 
     documentation includes commodities, software, or technology 
     subject to the EAR (see Sec. 123.1(b) of this subchapter).
     Category III--Ammunition and Ordnance
       *(a) Ammunition, as follows: [ordnance for the articles in 
     Categories I and II of this section.]
       *(1) Ammunition that incorporates a projectile controlled 
     in paragraph (d)(1) or (3) of this category;
       *(2) Ammunition preassembled into links or belts;
       *(3) Shotgun ammunition that incorporates a projectile 
     controlled in paragraph (d)(2) of this category;
       *(4) Caseless ammunition manufactured with smokeless 
     powder;
       Note to paragraph (a)(4): Caseless ammunition is ammunition 
     without a cartridge case that holds the primer, propellant, 
     and projectile together as a unit.
       *(5) Ammunition, except shotgun ammunition, based on non-
     metallic cases, or non-metallic cases that have only a 
     metallic base, which result in a total cartridge mass 80% or 
     less than the mass of a brass- or steel-cased cartridge that 
     provides comparable ballistic performance;
       *(6) Ammunition employing pyrotechnic material in the 
     projectile base or any ammunition employing a projectile that 
     incorporates tracer materials of any type having peak 
     radiance above 710 nm and designed to be observed primarily 
     with night vision optical systems;
       *(7) Ammunition for fully automatic firearms that fire 
     superposed or stacked projectiles or for guns that fire 
     superposed or stacked projectiles;
       *(8) Electromagnetic armament projectiles or billets for 
     weapons with a design muzzle energy exceeding 5 MJ;
       *(9) Ammunition, not specified above, for the guns and 
     armaments controlled in Category II; or
       (10) Developmental ammunition funded by the Department of 
     Defense and specially designed parts and components therefor.
       Note 1 to paragraph (a)(10): This paragraph does not 
     control ammunition: (a) in production; (b) determined to be 
     subject to the EAR via a commodity jurisdiction determination 
     (see Sec. 120.4 of this subchapter); or (c) identified in the 
     relevant Department of Defense contract or other funding 
     authorization as being developed for both civil and military 
     applications.
       Note 2 to paragraph (a)(10): Note 1 does not apply to 
     defense articles enumerated on the U.S. Munitions List, 
     whether in production or development.
       Note 3 to paragraph (a)(10): This provision is applicable 
     to those contracts or other funding authorizations that are 
     dated [INSERT DATE ONE YEAR AFTER PUBLICATION IN THE FEDERAL 
     REGISTER], or later.
       (b) Ammunition/ordnance handling equipment specially 
     [specifically] designed [or modified] for the articles 
     controlled in this category, as follows:, [such as, belting, 
     linking, and de-linking equipment.]
       (1) Belting, linking, and de-linking equipment; or
       (2) Fuze setting devices.
       (c) [Reserved] [Equipment and tooling specifically designed 
     or modified for the production of defense articles controlled 
     by this category.]
       (d) [Components, p] Parts and components, [accesories, 
     attachments and associated equipment specifically designed or 
     modified] for the articles in this category, as follows:
       *(1) Projectiles that use pyrotechnic tracer materials that 
     incorporate any material having

[[Page S6550]]

     peak radiance above 710 nm or are incendiary or explosive 
     [Guidance and control components for the articles in 
     paragraph (a) of this category];
       *(2) Shotgun projectiles that are flechettes, incendiary, 
     tracer, or explosive; [Safing, arming and fuzing components 
     (including target detection and localization devices) for the 
     articles in paragraph (a) of this category; and]
       Note to paragraph (d)(2): This paragraph does not include 
     explosive projectiles specially designed to produce noise for 
     scaring birds or other pests (e.g., bird bombs, whistlers, 
     crackers).
       (3) Projectiles of any caliber produced from depleted 
     uranium; All other components, parts, accessories, 
     attachments and associated equipment for the articles in 
     paragraphs (a) through (c) of this category.
       (4) Projectiles not specified above, guided or unguided, 
     for the items controlled in USML Category II, and specially 
     designed parts and components therefor (e.g., fuzes, rotating 
     bands, cases, liners, fins, boosters);
       (5) Canisters or sub-munitions (e.g., bomblets or 
     minelets), and specially designed parts and components 
     therefor, for the guns or armament controlled in USML 
     Category II;
       (6) Projectiles that employ tips (e.g., M855A1 Enhanced 
     Performance Round (EPR)) or cores regardless of caliber, 
     produced from one or a combination of the following: 
     tungsten, steel, or beryllium copper alloy;
       (7) Cartridge cases, powder bags, or combustible cases 
     specially designed for the items controlled in USML Category 
     II;
       (8) Non-metallic cases, including cases that have only a 
     metallic base, for the ammunition controlled in paragraph 
     (a)(5) of this category;
       (9) Cartridge links and belts for fully automatic firearms 
     and guns controlled in USML Categories I or II;
       (10) Primers other than Boxer, Berdan, or shotshell types;
       Note to paragraph (d)(10): This paragraph does not control 
     caps or primers of any type in use prior to 1890.
       (11) Safing, arming, and fuzing components (to include 
     target detection and proximity sensing devices) for the 
     ammunition in this category and specially designed parts 
     therefor;
       (12) Guidance and control components for the ammunition in 
     this category and specially designed parts therefor;
       (13) Terminal seeker assemblies for the ammunition in this 
     category and specially designed parts and components 
     therefor;
       (14) Illuminating flares or target practice projectiles for 
     the ammunition controlled in paragraph (a)(9) of this 
     category; or
       * (15) Any part, component, accessory, attachment, 
     equipment, or system that:
       (i) Is classified;
       (ii) Contains classified software; or
       (iii) Is being developed using classified information.
       ``Classified'' means classified pursuant to Executive Order 
     13526, or predecessor order, and a security classification 
     guide developed pursuant thereto or equivalent, or to the 
     corresponding classification rules of another government or 
     intergovernmental organization.
       (e) Technical data (see [as defined in] Sec. 120.10 of this 
     subchapter) and defense services (see [as defined in] 
     Sec. 120.9 of this subchapter) directly related to the 
     defense articles enumerated in paragraphs (a), (b), and 
     [through] (d) of this category and classified technical data 
     directly related to items controlled in ECCNs 0A505, 0B505, 
     0D505, and 0E505 and defense services using the classified 
     technical data. (See Sec. 125.4 of this subchapter for 
     exemptions.) [Technical data directly related to the 
     manufacture or production of any defense articles described 
     elsewhere in this category that are designated as Significant 
     Military Equipment (SME) shall itself be designated SME.]
       (f)-(w) [Reserved]
       (x) Commodities, software, and technology subject to the 
     EAR (see Sec. 120.42 of this subchapter) used in or with 
     defense articles. [The following explains and amplifies the 
     terms used in this category and elsewhere in this subchapter.
       [(1) The components, parts, accessories and attachments 
     controlled in this category include, but are not limited to 
     cartridge cases, powder bags (or other propellant charges), 
     bullets, jackets, cores, shells (excluding shotgun shells), 
     projectiles (including canister rounds and submunitions 
     therefor), boosters, firing components, therefor, primers, 
     and other detonating devices for the defense articles 
     controlled in this category.]
       Note to paragraph (x): Use of this paragraph is limited to 
     license applications for defense articles where the purchase 
     documentation includes commodities, software, or technology 
     subject to the EAR (see Sec. 123.1(b) of this subchapter).
       Note 1 to Category III: This category does not control 
     ammunition crimped without a projectile (blank star) and 
     dummy ammunition with a pierced powder chamber.
       Note 2 to Category III: [(2)]This category does not control 
     cartridge and shell casings that, prior to export, have been 
     rendered useless beyond the possibility of restoration for 
     use as a cartridge or shell casing by means of heating, flame 
     treatment, mangling, crushing, cutting, or popping. [(3) 
     Equipment and tooling in paragraph (c) of this category does 
     not include equipment for hand loading ammunition.
       [(4) The articles in this category include any end item, 
     component, accessory, attachment, part, firmware, software, 
     or system that has been designed or manufactured using 
     technical data and defense services controlled by this 
     category.
       [(5) The articles specifically designed or modified for 
     military application controlled in this category include any 
     article specifically developed, configured, or adapted for 
     military application]
       Note 3 to Category III: Grenades containing non-lethal or 
     less lethal projectiles are under the jurisdiction of the 
     Department of Commerce.
     *  *  *  *  *
     Billing Code: 3510-33-P
     DEPARTMENT OF COMMERCE
     Bureau of Industry and Security
     15 CFR Parts 732, 734, 736, 740, 742, 743, 744, 746, 748, 
         758, 762, 772, and 774
     [Docket No. 191107-0079]
     RIN 0694-AF47
     Control of Firearms, Guns, Ammunition and Related Articles 
         the President Determines No Longer Warrant Control under 
         the United States Munitions List (USML)
     AGENCY: Bureau of Industry and Security, Department of 
         Commerce.
     ACTION: Final rule.
       1. The authority citation for 15 CFR part 732 is revised to 
     read as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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 8, 2018, 83 FR 39871 (August 13, 2018).
       2. Section 732.2 is amended by adding one sentence to the 
     end of the paragraph (b) introductory text to read as 
     follows:

     Sec. 732.2 Steps regarding scope of the EAR.

     *  *  *  *  *
       (b) *  *  * The following also remains subject to the EAR: 
     ``software'' or ``technology'' for the production of a 
     firearm, or firearm frame or receiver, controlled under ECCN 
     0A501, as referenced in 734.7(c)).
     *  *  *  *  *
     PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS
       3. The authority citation for 15 CFR part 734 is revised to 
     read as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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; E.O. 13637, 78 
     FR 16129, 3 CFR, 2014 Comp., p. 223; Notice of August 8, 
     2018, 83 FR 39871 (August 13, 2018); Notice of November 8, 
     2018, 83 FR 56253 (November 9, 2018).
       4. Section 734.7 is amended by:
       a. Revising paragraph (a) introductory text; and
       b. Adding paragraph (c) to read as follows:

     Sec. 734.7 Published.

       (a) Except as set forth in paragraph (b) and (c) of this 
     section, unclassified ``technology'' or ``software'' is 
     ``published,'' and is thus not ``technology'' or ``software'' 
     subject to the EAR, when it has been made available to the 
     public without restrictions upon its further dissemination 
     such as through any of the following:
     *  *  *  *  *
       (c) The following remains subject to the EAR: ``software'' 
     or ``technology'' for the production of a firearm, or firearm 
     frame or receiver, controlled under ECCN 0A501, that is made 
     available by posting on the internet in an electronic format, 
     such as AMF or G-code, and is ready for insertion into a 
     computer numerically controlled machine tool, additive 
     manufacturing equipment, or any other equipment that makes 
     use of the ``software'' or ``technology'' to produce the 
     firearm frame or receiver or complete firearm.
     *  *  *  *  *
     PART 736--GENERAL PROHIBITIONS
       5. The authority citation for 15 CFR part 736 is revised to 
     read as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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 August 8, 2018, 83 FR 39871 (August 13, 2018); 
     Notice of November 8, 2018, 83 FR 56253 (November 9, 2018); 
     Notice of May 8, 2019, 84 FR 20537 (May 10, 2019).
       6. Supplement No. 1 to part 736 is amended by revising 
     paragraph (e)(3) to read as follows:
     SUPPLEMENT NO. 1 TO PART 736--GENERAL ORDERS
     *  *  *  *  *
       (e) *  *  *
       (3) Prior commodity jurisdiction determinations. If the 
     U.S. State Department has previously determined that an item 
     is not subject to the jurisdiction of the ITAR and the item 
     was not listed in a then existing ``018'' series ECCN (for 
     purposes of the ``600 series'' ECCNs, or the 0x5zz ECCNs) or 
     in a then existing ECCN 9A004.b or related software or 
     technology ECCN (for purposes of the 9x515 ECCNs), then the 
     item is per se not within the scope of a ``600 series'' ECCN, 
     a 0x5zz ECCN, or a 9x515 ECCN. If the item was not listed 
     elsewhere on the CCL at the time of such determination (i.e., 
     the item was designated EAR99), the item shall remain 
     designated as EAR99 unless specifically enumerated by BIS or 
     DDTC in an amendment to the CCL or to the USML, respectively.
     *  *  *  *  *
     PART 740--LICENSE EXCEPTIONS
       7. The authority citation for 15 CFR part 740 is revised to 
     read as follows:

[[Page S6551]]

       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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 8, 2018, 83 FR 
     39871 (August 13, 2018).
       8. Section 740.2 is amended by adding paragraphs (a)(21) 
     and (22) to read as follows:

     Sec. 740.2 Restrictions on all license exceptions.

       (a) *  *  *
       (21) The reexport or transfer (in-country) of firearms 
     classified under ECCNs 0A501 or 0A502 if a part or component 
     that is not ``subject to the ITAR,'' but would otherwise meet 
     the criteria in USML Category I(h)(2) (i.e., parts and 
     components specially designed for conversion of a 
     semiautomatic firearm to a fully automatic firearm) is 
     incorporated into the firearm or is to be reexported or 
     transferred (in-country) with the firearm with ``knowledge'' 
     the part or component will be subsequently incorporated into 
     the firearm. (See USML Category I(h)(2)). In such instances, 
     no license exceptions are available except for License 
     Exception GOV (740.11(b)(2)(ii)).
       (22) The export, reexport, or transfer (in-country) of any 
     item classified under a 0x5zz ECCN when a party to the 
     transaction is designated on the Department of the Treasury, 
     Office of Foreign Assets Control (OFAC), Specially Designated 
     Nationals and Blocked Persons (SDN) list under the 
     designation [SDNT], pursuant to the Narcotics Trafficking 
     Sanctions Regulations, 31 CFR part 536, or under the 
     designation [SDNTK], pursuant to the Foreign Narcotics 
     Kingpin Sanctions Regulations, 31 CFR part 598.
       9. Section 740.9 is amended by:
       a. Adding five sentences at the end of paragraph (a) 
     introductory text;
       b. Adding one sentence at the end of paragraph (b)(1) 
     introductory text;
       c. Adding paragraph (b)(5); and
       d. Redesignating notes 1 through 3 to paragraph (b) as 
     notes 2 through 4 to paragraph (b);
       The additions read as follows:

     Sec. 740.9 Temporary imports, exports, reexports, and 
       transfers (in-country) (TMP).

     *  *  *  *  *
       (a) *  *  * This paragraph (a) does not authorize any 
     export of a commodity controlled under ECCNs 0A501.a or .b, 
     or shotguns with a barrel length less than 18 inches 
     controlled under ECCN 0A502 to, or any export of such an item 
     that was imported into the United States from, a country in 
     Country Group D:5 (Supplement No. 1 of this part), or from 
     Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
     Turkmenistan, Ukraine, or Uzbekistan. The only provisions of 
     this paragraph (a) that are eligible for use to export such 
     items are paragraph (a)(5) of this section (``Exhibition and 
     demonstration'') and paragraph (a)(6) of this section 
     (``Inspection, test, calibration, and repair''). In addition, 
     this paragraph (a) may not be used to export more than 75 
     firearms per shipment. In accordance with the requirements in 
     Sec. 758.1(b)(9) and (g)(4) of the EAR, the exporter or its 
     agent must provide documentation that includes the serial 
     number, make, model, and caliber of each firearm being 
     exported by filing these data elements in an EEI filing in 
     AES. In accordance with the exclusions in License Exception 
     TMP under paragraph (b)(5) of this section, the entry 
     clearance requirements in Sec. 758.1(b)(9) do not permit the 
     temporary import of: firearms controlled in ECCN 0A501.a or 
     .b that are shipped from or manufactured in a Country Group 
     D:5 country, or that are shipped from or manufactured in 
     Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
     Turkmenistan, Ukraine, or Uzbekistan (except for any firearm 
     model designation (if assigned) controlled by 0A501 that is 
     specified under Annex A in Supplement No. 4 to part 740);); 
     or shotguns with a barrel length less than 18 inches 
     controlled in ECCN 0A502 that are shipped from or 
     manufactured in a Country Group D:5 country, or from Russia, 
     Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, 
     Ukraine, or Uzbekistan, because of the exclusions in License 
     Exception TMP under paragraph (b)(5) of this section.
     *  *  *  *  *
       (b) *  *  *
       (1) *  *  * No provision of paragraph (b) of this section, 
     other than paragraph (b)(3), (4), or (5), may be used to 
     export firearms controlled by ECCN 0A501.a, .b, or shotguns 
     with a barrel length less than 18 inches controlled in ECCN 
     0A502.
     *  *  *  *  *
       (5) Exports of firearms and certain shotguns temporarily in 
     the United States. This paragraph (b)(5) authorizes the 
     export of no more than 75 end item firearms per shipment 
     controlled by ECCN 0A501.a or .b, or shotguns with a barrel 
     length less than 18 inches controlled in ECCN 0A502 that are 
     temporarily in the United States for a period not exceeding 
     one year, provided that:
       (i) The firearms were not shipped from or manufactured in a 
     U.S. arms embargoed country, i.e., destination listed in 
     Country Group D:5 in Supplement No. 1 to part 740 of the EAR;
       (ii) The firearms were not shipped from or manufactured in 
     Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
     Turkmenistan, Ukraine, or Uzbekistan, except for any firearm 
     model controlled by 0A501 that is specified under Annex A in 
     Supplement No. 4 to part 740; and
       (iii) The firearms are not ultimately destined to a U.S. 
     arms embargoed country, i.e., destination listed in Country 
     Group D:5 in Supplement No. 1 to part 740 of the EAR, or to 
     Russia;
       (iv) When the firearms entered the U.S. as a temporary 
     import, the temporary importer or its agent:
       (A) Provided the following statement to U.S. Customs and 
     Border Protection: ``This shipment will be exported in 
     accordance with and under the authority of License cException 
     TMP (15 CFR 740.9(b)(5))'';
       (B) Provided to U.S. Customs and Border Protection an 
     invoice or other appropriate import-related documentation (or 
     electronic equivalents) that includes a complete list and 
     description of the firearms being temporarily imported, 
     including their model, make, caliber, serial numbers, 
     quantity, and U.S. dollar value; and
       (C) Provided (if temporarily imported for a trade show, 
     exhibition, demonstration, or testing) to U.S. Customs and 
     Border Protection the relevant invitation or registration 
     documentation for the event and an accompanying letter that 
     details the arrangements to maintain effective control of the 
     firearms while they are in the United States.
       (v) In addition to the export clearance requirements of 
     part 758 of the EAR, the exporter or its agent must provide 
     the import documentation related to paragraph (b)(5)(iv)(B) 
     of this section to U.S. Customs and Border Protection at the 
     time of export.
       Note 1 to paragraph (b)(5): In addition to complying with 
     all applicable EAR requirements for the export of commodities 
     described in paragraph (b)(5), exporters and temporary 
     importers should contact U.S. Customs and Border Protection 
     (CBP) at the port of temporary import or export, or at the 
     CBP website, for the proper procedures for temporarily 
     importing or exporting firearms controlled in ECCN 0A501.a or 
     .b or shotguns with a barrel length less than 18 inches 
     controlled in ECCN 0A502, including regarding how to provide 
     any data or documentation required by BIS.
     *  *  *  *  *
       10. Section 740.10 is amended by:
       a. Adding one sentence at the end of paragraph (b)(1); and
       b. Adding paragraph (b)(4).
       The additions read as follows:

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

       *  *  *  *  *
       (b) *  *  *
       (1) *  *  * The export of firearms controlled by ECCN 
     0A501.a or .b, or shotguns with a barrel length less than 18 
     inches controlled in ECCN 0A502 temporarily in the United 
     States for servicing and replacement may be exported under 
     paragraphs (b)(2) or (3) of this section only if the 
     additional requirements in paragraph (b)(4) of this section 
     are also met.
     *  *  *  *  *
       (4) Exports of firearms and certain shotguns temporarily in 
     the United States for servicing and replacement. This 
     paragraph (b)(4) authorizes the export of firearms controlled 
     by ECCN 0A501.a or .b, or shotguns with a barrel length less 
     than 18 inches controlled in ECCN 0A502 that are temporarily 
     in the United States for servicing or replacement for a 
     period not exceeding one year or the time it takes to service 
     or replace the commodity, whichever is shorter, provided that 
     the requirements of paragraphs (b)(2) or (3) of this section 
     are met and:
       (i) The firearms were not shipped from or manufactured in 
     Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
     Turkmenistan, Ukraine, or Uzbekistan, except for any firearm 
     model controlled by 0A501 that is specified under Annex A in 
     Supplement No. 4 to part 740;
       (ii) When the firearms entered the U.S. as a temporary 
     import, the temporary importer or its agent:
       (A) Provided the following statement to U.S. Customs and 
     Border Protection: ``This shipment will be exported in 
     accordance with and under the authority of License Exception 
     RPL (15 CFR 740.10(b))'';
       (B) Provided to U.S. Customs and Border Protection an 
     invoice or other appropriate import-related documentation (or 
     electronic equivalents) that includes a complete list and 
     description of the firearms being temporarily imported, 
     including their model, make, caliber, serial numbers, 
     quantity, and U.S. dollar value; and
       (C) Provided (if temporarily imported for servicing or 
     replacement) to U.S. Customs and Border Protection the name, 
     address and contact information (telephone number and/or 
     email) of the organization or individual in the U.S. that 
     will be receiving the item for servicing or replacement.
       (iii) In addition to the export clearance requirements of 
     part 758 of the EAR, the exporter or its agent must provide 
     the import documentation related to paragraph (b)(4)(iii)(B) 
     of this section to U.S. Customs and Border Protection at the 
     time of export.
       Note 1 to paragraph (b)(4): In addition to complying with 
     all applicable EAR requirements for the export of commodities 
     described in paragraph (b)(4), exporters and temporary 
     importers should contact U.S. Customs and Border Protection 
     (CBP) at the port of temporary import or export, or at the 
     CBP website, for the proper procedures for temporarily 
     importing or exporting firearms controlled in ECCN 0A501.a or 
     .b or shotguns with a barrel length less than 18 inches 
     controlled in ECCN 0A502, including regarding how to provide 
     any data or documentation required by BIS.

[[Page S6552]]

  

     *  *  *  *  *
       11. Section 740.11 is amended by:
       a. Adding two sentences at the end of the introductory 
     text;
       b. Adding Note 2 to paragraph (b)(2); and
       c. Redesignating note 1 to paragraph (c)(1) as note 3 to 
     paragraph (c)(1) and notes 1 and 2 to paragraph (e) as notes 
     4 and 5 to paragraph (e).
       The additions read as follows:

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

       *  *  * Commodities listed in ECCN 0A501 are eligible only 
     for transactions described in paragraphs (b)(2)(i) and (ii) 
     of this section. Any item listed in a Ox5zz ECCN for export, 
     reexport, or transfer (in-country) to an E:1 country is 
     eligible only for transactions described in paragraphs 
     (b)(2)(i) and (ii) solely for U.S. Government official use of 
     this section.
     *  *  *  *  *
       Note 2 to paragraph (b)(2): Items controlled for NS, MT, 
     CB, NP, FC, or AT reasons may not be exported, reexported, or 
     transferred (in-country) to, or for the use of military, 
     police, intelligence entities, or other sensitive end users 
     (e.g., contractors or other governmental parties performing 
     functions on behalf of military, police, or intelligence 
     entities) of a government in a Country Group E:1 or E:2 
     country.
     *  *  *  *  *
       12. Section 740.14 is amended by revising paragraph (b)(4) 
     introductory text, revising the heading to paragraph (e), and 
     by adding paragraphs (e)(3) and (4) to read as follows:

     Sec. 740.14 Baggage (BAG).

     *  *  *  *  *
       (b) *  *  *
       (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 firearms and ammunition, see 
     paragraph (e) of this section. 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 (b)(4), see 
     paragraph (g) of this section. For special provisions 
     regarding personal protective equipment under ECCN 1A613.c or 
     .d, see paragraph (h) of this section.
     *  *  *  *  *
       (e) Special provisions for firearms and ammunition. *  *  *
       (3) A United States citizen or a permanent resident alien 
     leaving the United States may export under this License 
     Exception firearms, ``parts,'' ``components,'' 
     ``accessories,'' or ``attachments'' controlled under ECCN 
     0A501 and ammunition controlled under ECCN 0A505.a, subject 
     to the following limitations:
       (i) Not more than three firearms and 1,000 rounds of 
     ammunition may be taken on any one trip.
       (ii) ``Parts,'' ``components,'' ``accessories,'' and 
     ``attachments'' exported pursuant to this paragraph must be 
     of a kind and limited to quantities that are reasonable for 
     the activities described in paragraph (e)(3)(iv) of this 
     section or that are necessary for routine maintenance of the 
     firearms being exported.
       (iii) The commodities must be with the person's baggage.
       (iv) The commodities must be for the person's exclusive use 
     and not for resale or other transfer of ownership or control. 
     Accordingly, except as provided in paragraph (e)(4) of this 
     section, firearms, ``parts,'' ``components,'' 
     ``accessories,'' ``attachments,'' and ammunition, may not be 
     exported permanently under this License Exception. All 
     firearms, ``parts,'' ``components,'' ``accessories,'' or 
     ``attachments'' controlled under ECCN 0A501 and all unused 
     ammunition controlled under ECCN 0A505.a exported under this 
     License Exception must be returned to the United States.
       (v) Travelers leaving the United States temporarily are 
     required to declare the firearms, ``parts,'' ``components,'' 
     ``accessories,'' ``attachments,'' and ammunition being 
     exported under this license exception to a Customs and Border 
     Protection (CBP) officer prior to departure from the United 
     States and present such items to the CBP officer for 
     inspection, confirming that the authority for the export is 
     License Exception BAG and that the exporter is compliant with 
     its terms.
       (4) A nonimmigrant alien leaving the United States may 
     export or reexport under this License Exception only such 
     firearms controlled under ECCN 0A501 and ammunition 
     controlled under ECCN 0A505 as he or she brought into the 
     United States under the relevant provisions of Department of 
     Justice regulations at 27 CFR part 478.
     *  *  *  *  *

     Sec. 740.16 [AMENDED]

       13. Section 740.16 is amended by:
       a. Revising paragraph (a)(2);
       b. Revising paragraphs (b)(2)(iv) and (v); and
       c. Adding paragraph (b)(2)(vi);
       The revisions and addition read as follows:

     Sec. 740.16 Additional permissive reexports (APR).

       *  *  *  *  *
       (a) *  *  *
       (2) The commodities being reexported are not controlled for 
     NP, CB, MT, SI, or CC reasons or described in ECCNs 0A919, 
     3A001.b.2 or b.3 (except those that are being reexported for 
     use in civil telecommunications applications), 6A002, 6A003; 
     or commodities classified under a 0x5zz ECCN; and
     *  *  *  *  *
       (b) *  *  *
       (2) *  *  *
       (iv) Commodities described in ECCN 0A504 that incorporate 
     an image intensifier tube;
       (v) Commodities described in ECCN 6A002; or
       (vi) Commodities classified under a Ox5zz ECCN.
     * * * * *
       14. Section 740.20 is amended by revising paragraph 
     (b)(2)(ii) to read as follows:

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

     *  *  *  *  *
       (b) * * *
       (2) * * *
       (ii) License Exception STA may not be used for:
       (A) Any item controlled in ECCNs 0A501.a, .b, .c, .d, or 
     .e; 0A981; 0A982; 0A983; 0A503; 0E504; 0E982; or
       (B) Shotguns with barrel length less than 18 inches 
     controlled in 0A502.
     *  *  *  *  *
       15. Add Supplement No. 4 to part 740 to read as follows:
     SUPPLEMENT NO. 4 TO PART 740--ANNEX A FIREARM MODELS
       (a) Pistols/revolvers.
       (1) German Model P08 Pistol = SMCR.
       (2) IZH 34M, .22 Target pistol.
       (3) IZH 35M, .22 caliber Target pistol.
       (4) Mauser Model 1896 pistol = SMCR.
       (5) MC-57-1 pistol.
       (6) MC-1-5 pistol.
       (7) Polish Vis Model 35 pistol = SMCR.
       (8) Soviet Nagant revolver = SMCR.
       (9) TOZ 35, .22 caliber Target pistol.
       (10) MTs 440.
       (11) MTs 57-1.
       (12) MTs 59-1.
       (13) MTs 1-5.
       (14) TOZ-35M (starter pistol).
       (15) Biathlon-7K.
       (b) Rifles.
       (1) BARS-4 Bolt Action carbine.
       (2) Biathlon target rifle, .22.
       (3) British Enfield rifle = SMCR.
       (4) CM2, .22 target rifle (also known as SM2, .22).
       (5) German model 98K = SMCR.
       (6) German model G41 = SMCR.
       (7) German model G43 = SMCR.
       (8) IZH-94.
       (9) LOS-7, bolt action.
       (10) MC-7-07.
       (11) MC-18-3.
       (12) MC-19-07.
       (13) MC-105-01.
       (14) MC-112-02.
       (15) MC-113-02.
       (16) MC-115-1.
       (17) MC-125/127.
       (18) MC-126.
       (19) MC-128.
       (20) Saiga.
       (21) Soviet Model 38 carbine = SMCR.
       (22) Soviet Model 44 carbine-SMCR.
       (23) Soviet Model 91/30 rifle = SMCR.
       (24) TOZ 18, .22 bolt action.
       (25) TOZ 55.
       (26) TOZ 78.
       (27) Ural Target, .221r.
       (28) VEPR rifle.
       (29) Winchester Model 1895, Russian Model rifle = SMCR.
       (30) Sever--double barrel.
       (31) IZH18MH single barrel break action.
       (32) MP-251 over/under rifle.
       (33) MP-221 double barrel rifle.
       (34) MP-141K.
       (35) MP-161K.
       (36) MTs 116-1.
       (37) MTs 116M.
       (38) MTs 112-02.
       (39) MTs 115-1.
       (40) MTs 113-02.
       (41) MTs 105-01.
       (42) MTs 105-05.
       (43) MTs 7-17 combination gun.
       (44) MTs 7-12-07 rifle/shotgun.
       (45) MTs 7-07.
       (46) MTs 109-12-07 rifle.
       (47) MTs 109-07 rifle.
       (48) MTs 106-07 combination.
       (49) MTs 19-97.
       (50) MTs 19-09.
       (51) MTs 18-3M.
       (52) MTs 125.
       (53) MTs 126.
       (54) MTs 127.
       (55) Berkut-2.
       (56) Berkut-2M1.
       (57) Berkut-3.
       (58) Berkut-2-1.
       (59) Berkut-2M2.
       (60) Berkut-3-1.
       (61) Ots-25.
       (62) MTs 20-07.
       (63) LOS-7-1.
       (64) LOS -7-2.
       (65) LOS-9-1.
       (66) Sobol (Sable).
       (67) Rekord.
       (68) Bars-4-1.
       (69) Saiga.
       (70) Saiga-M.
       (71) Saiga 308.
       (72) Saiga-308-1.
       (73) Saiga 308-2.

[[Page S6553]]

       (74) Saiga-9.
       (75) Korshun.
       (76) Ural-5-1.
       (77) Ural 6-1.
       (78) Ural-6-2.
       (79) SM-2.
       (80) Biatlon-7-3.
       (81) Biatlon-7-4.
       (82) Rekord-1.
       (83) Rekord-2.
       (84) Rekord-CISM.
       (85) Rekord-1-308.
       (86) Rekord-2-308.
       (87) Rekord-1-308-CISM.
       (88) VEPR.
       (89) VEPR Super.
       (90) VEPR Pioneer.
       (91) VEPR Safari.
       (92) TOZ 109.
       (93) KO 44-1.
       (94) TOZ 78-01.
       (95) KO 44.
       (96) TOZ 99.
       (97) TOZ 99-01.
       (98) TOZ 55-01 Zubr.
       (99) TOZ 55-2 Zubr.
       (100) TOZ 120 Zubr.
       (101) MTs 111.
       (102) MTs 109.
       (103) TOZ 122.
       (104) TOZ 125.
       (105) TOZ 28.
       (106) TOZ 300.
     PART 742--CONTROL POLICY--CCL BASED CONTROLS
       16. The authority citation for part 742 is revised to read 
     as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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, 68 FR 26459, 3 CFR, 2004 Comp., p. 
     320; Notice of August 8, 2018, 83 FR 39871 (August 13, 2018); 
     Notice of November 8, 2018, 83 FR 56253 (November 9, 2018).
       17. Section 742.6 is amended by revising the first and 
     sixth sentences of paragraph (b)(1)(i) and adding a seventh 
     sentence at the end of paragraph (b)(1)(i) to read as 
     follows:

     742.6 Regional stability.

     * * * * *
       (b) * * *
       (1) * * *
       (i) Applications for exports and reexports of ECCN 0A501, 
     0A504, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, and 
     0E505 items; 9x515 items and ``600 series'' items and will be 
     reviewed on a case-by-case basis to determine whether the 
     transaction is contrary to the national security or foreign 
     policy interests of the United States, including the foreign 
     policy interest of promoting the observance of human rights 
     throughout the world. * * * When destined to the People's 
     Republic of China or a country listed in Country Group E:1 in 
     Supplement No. 1 to part 740 of the EAR, items classified 
     under ECCN 0A501, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 
     0E504, and 0E505 or any 9x515 ECCN will be subject to a 
     policy of denial. In addition, applications for exports and 
     reexports of ECCN 0A501, 0A505, 0B501, 0B505, 0D501, 0D505, 
     0E501, 0E504, and 0E505 items when there is reason to believe 
     the transaction involves criminal organizations, rebel 
     groups, street gangs, or other similar groups or individuals, 
     that may be disruptive to regional stability, including 
     within individual countries, will be subject to a policy of 
     denial.
      *  *  *  *  *
       18. Section 742.7 is amended by revising paragraphs (a)(1) 
     through (4) and (c) to read as follows:

     Sec. 742.7 Crime control and detection.

       (a) * * *
       (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: 0A502, 0A504, 0A505.b, 0A978, 0A979 0E502, 
     0E505 (``technology'' for ``development'' or for 
     ``production'' of buckshot shotgun shells controlled under 
     ECCN 0A505.b), 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 0A502 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 to part 738 of the 
     EAR).
       (3) Shotguns with barrel length greater than or equal to 24 
     inches, identified in ECCN 0A502 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 to 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, 0A503, 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).
      *  *  *  *  *
       (c) Contract sanctity. Contract sanctity date: August 22, 
     2000. Contract sanctity applies only to items controlled 
     under ECCNs 0A982, 0A503, and 0E982 destined for countries 
     not listed in CC Column 1 of the Country Chart (Supplement 
     No. 1 to part 738 of the EAR).
      *  *  *  *  *
       19. Section 742.17 is amended by:
       a. Revising the first sentence of paragraph (a); and
       b. Revising paragraph (f) to read as follows:

     Sec. 742.17 Exports of firearms to OAS member countries.

       (a) License requirements. BIS maintains a licensing system 
     for the export of firearms and related items to all OAS 
     member countries. * * *
      *  *  *  *  *
       (f) Items/Commodities. Items requiring a license under this 
     section are ECCNs 0A501 (except 0A501.y), 0A502, 0A504 
     (except 0A504.f), and 0A505 (except 0A505.d). (See Supplement 
     No. 1 to part 774 of the EAR).
      *  *  *  *  *

     Sec. 742.19 [AMENDED]

       20. Section 742.19(a)(1) is amended by:
       a. Removing ``0A986'' and adding in its place ``0A505.c''; 
     and
       b. Removing ``0B986'' and adding in its place ``0B505.c''.
     PART 743--SPECIAL REPORTING AND NOTIFICATION
       21. The authority citation for 15 CFR part 743 is revised 
     to read as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
     U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 
     Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 
     223; 78 FR 16129; Notice of August 8, 2018, 83 FR 39871 
     (August 13, 2018).
       22. Section 743.4 is amended by:
       a. Adding four sentences to the end of paragraph (a);
       b. By redesignating Note to paragraph (a) as Note 1 to 
     paragraph (a);
       c. Revising paragraph (b);
       d. Adding paragraphs (c)(1)(i) and (c)(2)(i);
       e. By redesignating Note to paragraph (e)(1)(ii) as Note 2 
     to paragraph (e)(1)(ii);
       e. Revising paragraph (h); and
       f. Adding paragraph (i) to read as follows:

     Sec. 743.4 Conventional arms reporting.

       (a) * * * This section does not require reports when the 
     exporter uses the alternative submission method described 
     under paragraph (h) of this section. The alternative 
     submission method under paragraph (h) requires the exporter 
     to submit the information required for conventional arms 
     reporting in this section as part of the required EEI 
     submission in AES, pursuant to 
     Sec.  758.1(b)(9). Because of the requirements in 
     Sec.  758.1(g)(4)(ii) for the firearms that require 
     conventional arms reporting of all conventional arms, the 
     Department of Commerce believes all conventional arms 
     reporting requirements for firearms will be met by using the 
     alternative submission method. The Department of Commerce 
     leaves standard method for submitting reports in place in 
     case any additional items are moved from the USML to the CCL, 
     that may require conventional arms reporting.
       Note 1 to paragraph (a): * * *
       (b) Requirements. You must submit one electronic copy of 
     each report required under the provisions of this section, or 
     submit this information using the alternative submission 
     method specified in paragraph (h) of this section, and 
     maintain accurate supporting records (see Sec. 762.2(b) of 
     the EAR) for all exports of items specified in paragraph (c) 
     of this section for the following:
       (c) * * *
       (1) * * *
       (i) ECCN 0A501.a and .b.
     *  *  *  *  *
       (2) * * *
       (i) ECCN 0A501.a and .b.
     * * * * *
       (h) Alternative submission method. This paragraph (h) 
     describes an alternative submission method for meeting the 
     conventional arms reporting requirements of this section. The 
     alternative submission method requires the exporter, when 
     filing the required EEI submission in AES, pursuant to Sec.  
     758.1(b)(9), to include the six character ECCN classification 
     (i.e., 0A501.a or 0A501.b) as the first text to appear in the 
     Commodity description block. If the exporter properly 
     includes this information in the EEI filing in AES, the 
     Department of Commerce will be able to obtain that export 
     information directly from AES to meet the U.S. Government's 
     commitments to the Wassenaar Arrangement and United Nations 
     for conventional arms reporting. An exporter that complies 
     with the requirements in Sec.  758.1(g)(4)(ii) does not have 
     to submit separate annual and semi-annual reports to the 
     Department of Commerce pursuant to this section.
       (i) Contacts. General information concerning the Wassenaar 
     Arrangement and reporting obligations thereof is available 
     from the Office of National Security and Technology Transfer 
     Controls, Tel.: (202) 482-0092, Fax: (202) 482-4094. 
     Information concerning the reporting requirements for items 
     identified in paragraphs (c)(1) and (2) of this section is 
     available from the Office of Nonproliferation and Treaty 
     Compliance

[[Page S6554]]

     (NPTC), Tel.: (202) 482-4188, Fax: (202) 482-4145.
     PART 744--CONTROL POLICY: END-USER AND END-USE BASED
       23. The authority citation for 15 CFR part 744 is revised 
     to read as follows:
       Authority: 50 U.S.C. 4801-4582; 50 U.S.C. 4601 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. 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 August 8, 
     2018, 83 FR 39871 (August 13, 2018); Notice of September 19, 
     2018, 83 FR 47799 (September 20, 2018); Notice of November 8, 
     2018, 83 FR 56253 (November 9, 2018); Notice of January 16, 
     2019, 84 FR 127 (January 18, 2019).

     Sec. 744.9 [AMENDED]

       24. Section 744.9 is amended by removing ``0A987'' from 
     paragraphs (a)(1) and (b) and adding in its place ``0A504''.
     PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
       25. The authority citation for 15 CFR part 746 is revised 
     to read as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 
     FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
     Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 
     320; Presidential Determination 2007-7, 72 FR 1899, 3 CFR, 
     2006 Comp., p. 325; Notice of August 8, 2018, 83 FR 39871 
     (August 13, 2018); Notice of May 8, 2019, 84 FR 20537 (May 
     10, 2019).

     Sec. 746.3 [AMENDED]

       26. Section 746.3 is amended by removing ``0A986'' from 
     paragraph (b)(2) and adding in its place ``0A505.c''.

     Sec. 746.7 [AMENDED]

       27. Section 746.7 is amended in paragraph (a)(1) by:
       a. Adding ``0A503,'' immediately before ``0A980''; and
       b. Removing ``0A985,''.
     PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND 
         LICENSE) AND DOCUMENTATION
       28. The authority citation for 15 CFR part 748 is revised 
     to read as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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 8, 2018, 83 FR 39871 (August 13, 2018).
       29. Section 748.12 is amended by:
       a. Revising the heading;
       b. Adding introductory text;
       c. Revising paragraphs (a) introductory text and (a)(1);
       d. Redesignating the note to paragraph (c)(8) as note 1 to 
     paragraph (c)(8); and
       e. Adding paragraph (e).
       The revisions and additions read as follows.

     Sec. 748.12 Firearms import certificate or import permit.

       License applications for certain firearms and related 
     commodities require support documents in accordance with this 
     section. For destinations that are members of the 
     Organization of American States (OAS), an FC Import 
     Certificate or equivalent official document is required in 
     accordance with paragraphs (a) through (d) of this section. 
     For other destinations that require a firearms import or 
     permit, the firearms import certificate or permit is required 
     in accordance with paragraph (e) of this section.
       (a) Requirement to obtain document for OAS member states. 
     Unless an exception in Sec. 748.9(c) applies, an FC Import 
     Certificate is required for license applications for firearms 
     and related commodities, regardless of value, that are 
     destined for member countries of the OAS. This requirement is 
     consistent with the OAS Model Regulations described in 
     Sec. 742.17 of the EAR.
       (1) Items subject to requirement. Firearms and related 
     commodities are those commodities controlled for ``FC Column 
     1'' reasons under ECCNs 0A501 (except 0A501.y), 0A502, 0A504 
     (except 0A504.f), or 0A505 (except 0A505.d).
     *  *  *  *  *
       (e) Requirement to obtain an import certificate or permit 
     for other than OAS member states. If the country to which 
     firearms, parts, components, accessories, and attachments 
     controlled under ECCN 0A501, or ammunition controlled under 
     ECCN 0A505, are being exported or reexported requires that a 
     government-issued certificate or permit be obtained prior to 
     importing the commodity, the exporter or reexporter must 
     obtain and retain on file the original or a copy of that 
     certificate or permit before applying for an export or 
     reexport license unless:
       (1) A license is not required for the export or reexport; 
     or
       (2) The exporter is required to obtain an import or end-
     user certificate or other equivalent official document 
     pursuant to paragraphs (a) thorough (d) of this section and 
     has, in fact, complied with that requirement.
       (3)(i) The number or other identifying information of the 
     import certificate or permit must be stated on the license 
     application.
       (ii) If the country to which the commodities are being 
     exported does not require an import certificate or permit for 
     firearms imports, that fact must be noted on any license 
     application for ECCN 0A501 or 0A505 commodities.
       Note 2 to paragraph (e). Obtaining a BIS Statement by 
     Ultimate Consignee and Purchaser pursuant to Sec. 748.11 of 
     the EAR does not exempt the exporter or reexporter from the 
     requirement to obtain a certification pursuant to paragraph 
     (a) of this section because that statement is not issued by a 
     government.
       30. Supplement No. 2 to part 748 (Unique Application and 
     Submission Requirements) is amended by adding paragraph (z) 
     to read as follows:
     SUPPLEMENT NO. 2 TO PART 748--UNIQUE APPLICATION AND 
         SUBMISSION REQUIREMENTS
     *  *  *  *  *
       (z) Exports of firearms and certain shotguns temporarily in 
     the United States.
       (1) Certification. If you are submitting a license 
     application for the export of firearms controlled by ECCN 
     0A501.a or .b, or shotguns with a barrel length less than 18 
     inches controlled in ECCN 0A502 that will be temporarily in 
     the United States, e.g., for servicing and repair or for 
     intransit shipments, you must include the following 
     certification in Block 24:
       The firearms in this license application will not be 
     shipped from or manufactured in Russia, Georgia, Kazakhstan, 
     Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan, 
     except for any firearm model controlled by 0A501 that is 
     specified under Annex A in Supplement No. 4 to part 740. I 
     and the parties to this transaction will comply with the 
     requirements specified in paragraph (z)(2)(i) and (ii) of 
     Supplement No. 2 to part 748.
       (2) Requirements. Each approved license for commodities 
     described under paragraph (z) must comply with the 
     requirements specified in paragraphs (z)(2)(i) and (ii) of 
     this supplement.
       (i) When the firearms enter the U.S. as a temporary import, 
     the temporary importer or its agent must:
       (A) Provide the following statement to U.S. Customs and 
     Border Protection: ``This shipment is being temporarily 
     imported in accordance with the EAR. This shipment will be 
     exported in accordance with and under the authority of BIS 
     license number (provide the license number) (15 CFR 750.7(a) 
     and 758.4);''
       (B) Provide to U.S. Customs and Border Protection an 
     invoice or other appropriate import-related documentation (or 
     electronic equivalents) that includes a complete list and 
     description of the firearms being temporarily imported, 
     including their model, make, caliber, serial numbers, 
     quantity, and U.S. dollar value; and
       (C) Provide (if temporarily imported for servicing or 
     replacement) to U.S. Customs and Border Protection the name, 
     address, and contact information (telephone number and/or 
     email) of the organization or individual in the U.S. that 
     will be receiving the item for servicing or replacement).
       (ii) In addition to the export clearance requirements of 
     part 758 of the EAR, the exporter or its agent must provide 
     the import documentation related to paragraph (z)(2)(i)(B) of 
     this supplement to U.S. Customs and Border Protection at the 
     time of export.
       Note 1 to paragraph (z): In addition to complying with all 
     applicable EAR requirements for the export of commodities 
     described in paragraph (z), exporters and temporary importers 
     should contact U.S. Customs and Border Protection (CBP) at 
     the port of temporary import or export, or at the CBP 
     website, for the proper procedures for temporarily importing 
     or exporting firearms controlled in ECCN 0A501.a or .b or 
     shotguns with a barrel length less than 18 inches controlled 
     in ECCN 0A502, including regarding how to provide any data or 
     documentation required by BIS.
     PART 758--EXPORT CLEARANCE REQUIREMENTS
       31. The authority citation for part 758 is revised to read 
     as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
     U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 
     Comp., p. 783; Notice of August 8, 2018, 83 FR 39871 (August 
     13, 2018).
       32. Section 758.1 is amended by:
       a. Revising paragraphs (b)(7) (8), and adding paragraph 
     (b)(9);
       b. Revising paragraph (c)(1);
       c. Adding Note 1 to paragraph (c)(1);
       c. Adding paragraph (g)(4); and
       d. Redesignating Note to paragraph (h)(1) as Note 3 to 
     paragraph (h)(1); to read as follows:
     Sec. 758.1 The Electronic Export Enforcement (EEI) filing to 
         the Automated Export System (AES).
     *  *  *  *  *
       (b) * * *
       (7) For all items exported under authorization Validated 
     End-User (VEU);
       (8) For all exports of tangible items subject to the EAR 
     where parties to the transaction, as described in 748.5(d) 
     through (f) of the EAR, are listed on the Unverified List 
     (Supplement No. 6 to part 744 of the EAR), regardless of 
     value or destination; or
       (9) For all exports, except for exports authorized under 
     License Exception BAG, as set forth in Sec. 740.14 of the 
     EAR, of items controlled under ECCNs 0A501.a or .b, shotguns 
     with a barrel length less than 18 inches controlled under 
     ECCN 0A502, or ammunition

[[Page S6555]]

     controlled under ECCN 0A505 except for .c, regardless of 
     value or destination, including exports to Canada.
       (c) * * *
       (1) License Exception Baggage (BAG), as set forth in 
     Sec. 740.14 of the EAR. See 15 CFR 30.37(x) of the FTR;
       Note 1 to paragraph (c) (1): See the export clearance 
     requirements for exports of firearms controlled under ECCNs 
     0A501.a or .b, shotguns with a barrel length less than 18 
     inches controlled under ECCN 0A502, or ammunition controlled 
     under ECCN 0A505, authorized under License Exception BAG, as 
     set forth in Sec. 740.14 of the EAR.
     *  *  *  *  *
       (g) * * *
       (4) Exports of Firearms and Related Items. This paragraph 
     (g)(4) includes two separate requirements under paragraph 
     (g)(4)(i) and (ii) of this section that are used to better 
     identify exports of certain end item firearms under the EAR. 
     Paragraph (g)(4)(i) is limited to certain EAR authorizations. 
     Paragraph (g)(4)(ii) applies to all EAR authorizations that 
     require EEI filing in AES.
       (i) Identifying end item firearms by manufacturer, model, 
     caliber, and serial number in the EEI filing in AES. For any 
     export authorized under License Exception TMP or a BIS 
     license authorizing a temporary export of items controlled 
     under ECCNs 0A501.a or .b, or shotguns with a barrel length 
     less than 18 inches controlled under ECCN 0A502, in addition 
     to any other required data for the associated EEI filing, you 
     must report the manufacturer, model, caliber, and serial 
     number of the exported items. The requirements of this 
     paragraph also apply to any other export authorized under a 
     BIS license that includes a condition or proviso on the 
     license requiring the submission of this information 
     specified in paragraph (g) of this section when the EEI is 
     filed in AES.
       (ii) Identifying end item firearms by ``items''' level 
     classification or other control descriptor in the EEI filing 
     in AES. For any export of items controlled under ECCNs 
     0A501.a or .b, or shotguns with a barrel length less than 18 
     inches controlled under ECCN 0A502, in addition to any other 
     39 required data for the associated EEI filing, you must 
     include the six character ECCN classification (i.e., 0A501.a, 
     or 0A501.b), or for shotguns controlled under 0A502 the 
     phrase ``0A501 barrel length less than 18 inches''' as the 
     first text to appear in the Commodity description block in 
     the EEI filing in AES. (See 743.4(h) for the use of this 
     information for conventional arms reporting).
       Note 2 to paragraph (g)(4): If a commodity described in 
     paragraph (g)(4) is exported under License Exception TMP 
     under Sec. 740.9(a)(6) for inspection, test, calibration, or 
     repair is not consumed or destroyed in the normal course of 
     authorized temporary use abroad, the commodity must be 
     disposed of or retained in one of the ways specified in 
     Sec. 740.9(a)(14)(i), (ii), or (iii). For example, if a 
     commodity described in paragraph (g)(4) was destroyed while 
     being repaired after being exported under Sec. 740.9(a)(6), 
     the commodity described in paragraph (g)(4) would not be 
     required to be returned. If the entity doing the repair 
     returned a replacement of the commodity to the exporter from 
     the United States, the import would not require an EAR 
     authorization. The entity that exported the commodity 
     described in paragraph (g)(4) and the entity that received 
     the commodity would need to document this as part of their 
     recordkeeping related to this export and subsequent import to 
     the United States.
     *  *  *  *  *
       33. Add Sec. 758.10 to read as follows:

     Sec. 758.10 Entry clearance requirements for temporary 
       imports.

       (a) Scope. This section specifies the temporary import 
     entry clearance requirements for firearms ``subject to the 
     EAR'' that are on the United States Munitions Import List 
     (USMIL, 27 CFR 447.21), except for firearms ``subject to the 
     EAR'' that are temporarily brought into the United States by 
     nonimmigrant aliens under the provisions of Department of 
     Justice regulations at 27 CFR part 478 (See 740.14(e) of 
     License Exception BAG for information on the export of these 
     firearms ``subject to the EAR''). These firearms are 
     controlled in ECCN 0A501.a or .b or shotguns with a barrel 
     length less than 18 inches controlled in ECCN 0A502. Items 
     that are temporarily exported under the EAR must have met the 
     export clearance requirements specified in Sec. 758.1 of the 
     EAR.
       (1) An authorization under the EAR is not required for the 
     temporary import of ``items' '' that are ``subject to the 
     EAR,'' including for ``items' '' ``subject to the EAR'' that 
     are on the USMIL. Temporary imports of firearms described in 
     this section must meet the entry clearance requirements 
     specified in paragraph (b) of this section.
       (2) Permanent imports are regulated by the Attorney General 
     under the direction of the Department of Justice's Bureau of 
     Alcohol, Tobacco, Firearms and Explosives (see 27 CFR parts 
     447, 478, 479, and 555).
       (b) EAR procedures for temporary imports and subsequent 
     exports. To the satisfaction of U.S. Customs and Border 
     Protection, the temporary importer must comply with the 
     following procedures:
       (1) At the time of entry into the U.S. of the temporary 
     import:
       (i) Provide one of the following statements specified in 
     paragraphs (b)(1)(i)(A), (B), or (C) of this section to U.S. 
     Customs and Border Protection:
       (A) ``This shipment is being temporarily imported in 
     accordance with the EAR. This shipment will be exported in 
     accordance with and under the authority of License Exception 
     TMP (15 CFR 740.9(b)(5));''
       (B) ``This shipment is being temporarily imported in 
     accordance with the EAR. This shipment will be exported in 
     accordance with and under the authority of License Exception 
     RPL (15 CFR 740.10(b));'' or
       (C) ``This shipment is being temporarily imported in 
     accordance with the EAR. This shipment will be exported in 
     accordance with and under the authority of BIS license number 
     (provide the license number) (15 CFR 750.7(a) and 758.4);''
       (ii) Provide to U.S. Customs and Border Protection an 
     invoice or other appropriate import-related documentation (or 
     electronic equivalents) that includes a complete list and 
     description of the firearms being temporarily imported, 
     including their model, make, caliber, serial numbers, 
     quantity, and U.S. dollar value;
       (iii) Provide (if temporarily imported for a trade show, 
     exhibition, demonstration, or testing) to U.S. Customs and 
     Border Protection the relevant invitation or registration 
     documentation for the event and an accompanying letter that 
     details the arrangements to maintain effective control of the 
     firearms while they are in the United States;
       (iv) Provide (if temporarily imported for servicing or 
     replacement) to U.S. Customs and Border Protection the name, 
     address and contact information (telephone number and/or 
     email) of the organization or individual in the U.S. that 
     will be receiving the item for servicing or replacement).
       Note 1 to paragraph (b)(1): In accordance with the 
     exclusions in License Exception TMP under Sec. 740.9(b)(5) of 
     the EAR, the entry clearance requirements in Sec. 758.1(b)(9) 
     do not permit the temporary import of firearms controlled in 
     ECCN 0A501.a or .b that are shipped from or manufactured in a 
     Country Group D:5 country; or that are shipped from or 
     manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, 
     Moldova, Turkmenistan, Ukraine, or Uzbekistan (except for any 
     firearm model controlled by proposed 0A501 that is specified 
     under Annex A in Supplement No. 4 to part 740;); or shotguns 
     with a barrel length less than 18 inches controlled in ECCN 
     0A502 that are shipped from or manufactured in a Country 
     Group D:5 country, or from Russia, Georgia, Kazakhstan, 
     Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan, 
     because of the exclusions in License Exception TMP under 
     Sec. 740.9(b)(5).
       Note 2 to paragraph (b)(1): In accordance with the 
     exclusions in License Exception RPL under Sec. 740.10(b)(4) 
     and Supplement No. 2 to part 748 paragraph (z) of the EAR, 
     the entry clearance requirements in Sec. 758.1(b)(9) do not 
     permit the temporary import of: firearms controlled in ECCN 
     0A501.a or .b that are shipped from or manufactured in 
     Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
     Turkmenistan, Ukraine, or Uzbekistan (except for any firearm 
     model controlled by proposed 0A501 that is specified under 
     Annex A in Supplement No. 4 to part 740;); or shotguns with a 
     barrel length less than 18 inches controlled in ECCN 0A502 
     that are shipped from or manufactured in Russia, Georgia, 
     Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
     Uzbekistan, because of the exclusions in License Exception 
     RPL under Sec. 740.10(b)(4) and Supplement No. 2 to part 748 
     paragraph (z) of the EAR.
       (2) At the time of export, in accordance with the U.S. 
     Customs and Border Protection procedures, the eligible 
     exporter, or an agent acting on the filer's behalf, must as 
     required under Sec. 758.1(b)(9) of the EAR file the export 
     information with CBP by filing EEI in AES, noting the 43 
     applicable EAR authorization as the authority for the export, 
     and provide, upon request by CBP, the entry document number 
     or a copy of the CBP document under which the ``item'' 
     subject to the EAR'' on the USMIL was temporarily imported. 
     See also the additional requirements in Sec. 758.1(g)(4).
       34. Add Sec. 758.11 to read as follows:

     Sec. 758.11 Export clearance requirements for firearms and 
       related items.

       (a) Scope. The export clearance requirements of this 
     section apply to all exports of commodities controlled under 
     ECCNs 0A501.a or .b, shotguns with a barrel length less than 
     18 inches controlled under ECCN 0A502, or ammunition 
     controlled under ECCN 0A505 except for .c, regardless of 
     value or destination, including exports to Canada, that are 
     authorized under License Exception BAG, as set forth in 
     Sec. 740.14.
       (b) Required form. Prior to making any export described in 
     paragraph (a) of this section, the exporter is required to 
     submit a properly completed Department of Homeland Security, 
     CBP Form 4457, (Certificate of Registration for Personal 
     Effects Taken Abroad) (OMB Control Number 1651-0010), to the 
     U.S. Customs and Border Protection (CBP), pursuant to 19 CFR 
     148.1, and as required by this section of the EAR.
       (1) Where to obtain the form? The CBP Certification of 
     Registration Form 4457 can be found on the following CBP 
     website:
       https://www.cbp.gov/document/forms/form-4457-certificate-
registration-personal-effects-taken-abroad
       (2) Required ``description of articles' '' for firearms to 
     be included on the CBP Form 4457. For all exports of firearms 
     controlled under ECCNs 0A501.a or .b, or shotguns with a 
     barrel length less than 18 inches controlled under ECCN 
     0A502, the exporter must provide to CBP the serial number, 
     make, model, and caliber for each firearm being exported by 
     entering this information under the ``Description of 
     Articles'' field of the CBP Form 4457, Certificate of 
     Registration for Personal Effects Taken Abroad.

[[Page S6556]]

       (c) Where to find additional information on the CBP Form 
     4457? See the following CBP website page for additional 
     information: https:/ /help.cbp.gov/app/answers/detail/a_id/
     323//traveling-outside-of-the-u.s.-temporarily-taking-a-
     firearm%2C-rifle%2C-gun%2C.
       (d) Return of items exported pursuant to this section. The 
     exporter when returning with a commodity authorized under 
     License Exception BAG and exported pursuant this section, is 
     required to present a copy of the CBP Form 4457, Certificate 
     of Registration for Personal Effects Taken Abroad) (OMB 
     Control Number 1651-0010), to CBP, pursuant to 19 CFR 148.1, 
     and as required by this section of the EAR.
     PART 762--RECORDKEEPING
       35. The authority citation for part 762 is revised to read 
     as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
     U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 
     Comp., p. 783; Notice of August 8, 2018, 83 FR 39871 (August 
     13, 2018).
       36. Section 762.2 is amended by removing ``and,'' at the 
     end of paragraph (a)(10), redesignating paragraph (a)(11) as 
     paragraph (a)(12), and adding a new paragraph (a)(11) to read 
     as follows:

     Sec. 762.2 Records to be retained.

       (a) * * *
       (11) The serial number, make, model, and caliber for any 
     firearm controlled in ECCN 0A501.a and for shotguns with 
     barrel length less than 18 inches controlled in 0A502 that 
     have been exported. The ``exporter'' or any other party to 
     the transaction (see 758.3 of the EAR), that creates or 
     receives such records is a person responsible for retaining 
     this record; and
     *  *  *  *  *
       37. Section 762.3 is amended by revising paragraph (a)(5) 
     to read as follows:

     Sec. 762.3 Records exempt from recordkeeping requirements.

       (a) * * *
       (5) Warranty certificate, except for a warranty certificate 
     issued for an address located outside the United States for 
     any firearm controlled in ECCN 0A501.a and for shotguns with 
     barrel length less than 18 inches controlled in 0A502;
      *  *  *  *  *
     PART 772--DEFINITIONS OF TERMS
       38. The authority citation for part 772 is revised to read 
     as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
     U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 
     Comp., p. 783; Notice of August 8, 2018, 83 FR 39871 (August 
     13, 2018).

     Sec. 772.1--[AMENDED]

       39. In Sec. 772.1, in the definition of ``specially 
     designed,'' Note 1 is amended by removing ``0B986'' and 
     adding in its place ``0B505.c''; and the definition of 
     ``complete breech mechanisms'' is added as set forth below:

     Sec. 772.1 Definitions of terms as used in the Export 
       Administration Regulations (EAR).

      *  *  *  *  *
       Complete breech mechanisms. The mechanism for opening and 
     closing the breech of a breech-loading firearm, especially of 
     a heavy-caliber weapon.
     *  *  *  *  *
     PART 774--THE COMMERCE CONTROL LIST
       40. The authority citation for 15 CFR part 774 is revised 
     to read as follows:
       Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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; 42 
     U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C. 4305; 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 8, 2018, 83 FR 39871 (August 13, 2018).
       41. In Supplement No. 1 to part 774, Category 0, revise 
     Export Control Classification Number (ECCN) 0A018 to read as 
     follows:
     Supplement No. 1 to Part 774--The Commerce Control List
      *  *  *  *  *
     0A018 Items on the Wassenaar Munitions List (see List of 
         Items Controlled).
       No items currently are in this ECCN. See ECCN 0A505 for 
     ``parts'' and ``components'' for ammunition that, immediately 
     prior to [INSERT DATE 45 DAYS AFTER DATE OF PUBLICATION IN 
     THE FEDERAL REGISTER], were classified under 0A018.b.
       42. In Supplement No. 1 to part 774, Category 0, add, 
     between entries for ECCNs 0A018 and 0A521, entries for ECCNs 
     0A501, 0A502, 0A503, 0A504, and 0A505 to read as follows:
     0A501 Firearms (except 0A502 shotguns) and related 
         commodities as follows (see List of Items controlled).
     License Requirements
       Reason for Control: NS, RS, FC, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry except 0A501.y.  NS Column 1
RS applies to entire entry except 0A501.y.  RS Column 1
FC applies to entire entry except 0A501.y.  FC Column 1
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

       License Requirement Note: In addition to using the Commerce 
     Country Chart to determine license requirements, a license is 
     required for exports and reexports of ECCN 0A501.y.7 firearms 
     to the People's Republic of China.
     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $500 for 0A501.c, .d, and .x.
       $500 for 0A501.c, .d, .e, and .x if the ultimate 
     destination is Canada.
       GBS: N/A
       CIV: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any item 
     in this entry.
     List of Items Controlled
       Related Controls: (1) Firearms that are fully automatic, 
     and magazines with a capacity of greater than 50 rounds, are 
     ``subject to the ITAR.'' (2) See ECCN 0A502 for shotguns and 
     their ``parts'' and ``components'' that are subject to the 
     EAR. Also see ECCN 0A502 for shot-pistols. (3) See ECCN 0A504 
     and USML Category XII for controls on optical sighting 
     devices.
       Related Definitions: N/A
       Items:
       a. Non-automatic and semi-automatic firearms equal to .50 
     caliber (12.7 mm) or less.
       Note 1 to paragraph 0A501.a: `Combination pistols' are 
     controlled under ECCN 0A501.a. A `combination pistol' 
     (a.k.a., a combination gun) has at least one rifled barrel 
     and at least one smoothbore barrel (generally a shotgun style 
     barrel).
       b. Non-automatic and non-semi-automatic rifles, carbines, 
     revolvers or pistols with a caliber greater than .50 inches 
     (12.7 mm) but less than or equal to .72 inches (18.0 mm).
       c. The following types of ``parts'' and ``components'' if 
     ``specially designed'' for a commodity controlled by 
     paragraph .a or .b of this entry, or USML Category I (unless 
     listed in USML Category I(g) or (h)): barrels, cylinders, 
     barrel extensions, mounting blocks (trunnions), bolts, bolt 
     carriers, operating rods, gas pistons, trigger housings, 
     triggers, hammers, sears, disconnectors, pistol grips that 
     contain fire control ``parts'' or ``components'' (e.g., 
     triggers, hammers, sears, disconnectors) and buttstocks that 
     contain fire control ``parts'' or ``components.''
       d. Detachable magazines with a capacity of greater than 16 
     rounds ``specially designed'' for a commodity controlled by 
     paragraph .a or .b of this entry.
       Note 2 to paragraph 0A501.d: Magazines with a capacity of 
     16 rounds or less are controlled under 0A501.x.
       e. Receivers (frames) and ``complete breech mechanisms,'' 
     including castings, forgings stampings, or machined items 
     thereof, ``specially designed'' for a commodity by controlled 
     by paragraph .a or .b of this entry.
       f. through w. [Reserved]
       x. ``Parts'' and ``components'' that are ``specially 
     designed'' for a commodity classified under paragraphs .a 
     through .c of this entry or the USML and not elsewhere 
     specified on the USML or CCL.
       y. Specific ``parts,'' ``components,'' ``accessories'' and 
     ``attachments'' ``specially designed'' for a commodity 
     subject to control in this ECCN or common to a defense 
     article in USML Category I and not elsewhere specified in the 
     USML or CCL as follows, and ``parts,'' ``components,'' 
     ``accessories,'' and ``attachments'' ``specially designed'' 
     therefor.
       y.1. Stocks or grips, that do not contain any fire control 
     ``parts'' or ``components'' (e.g., triggers, hammers, sears, 
     disconnectors);''
       y.2. Scope mounts or accessory rails;
       y.3. Iron sights;
       y.4. Sling swivels;
       y.5. Butt plates or recoil pads;
       y.6. Bayonets; and
       y.7. Firearms manufactured from 1890 to 1898 and 
     reproductions thereof.
       Technical Note I to 0A501: The controls on ``parts'' and 
     ``components'' in ECCN 0A501 include those ``parts'' and 
     ``components'' that are common to firearms described in ECCN 
     0A501 and to those firearms ``subject to the ITAR.''
       Note 3 to 0A501: Antique firearms (i.e., those manufactured 
     before 1890) and reproductions thereof muzzle loading black 
     powder firearms except those designs based on centerfire 
     weapons of a post 1937 design, BB guns, pellet rifles, paint 
     ball, and all other air rifles are EAR99 commodities.
       Note 4 to 0A501: Muzzle loading (black powder) firearms 
     with a caliber less than 20 mm that were manufactured later 
     than 1937 that are used for hunting or sporting purposes that 
     were not ``specially designed'' for military use and are not 
     ``subject to the ITAR'' nor controlled as shotguns under ECCN 
     0A502 are EAR99 commodities.
       0A502 Shotguns; shotguns ``parts'' and ``components,'' 
     consisting of complete trigger mechanisms; magazines and 
     magazine extension tubes; ``complete breech mechanisms;'' 
     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: RS, CC, FC, UN, AT, NS

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to shotguns with a barrel        NS Column 1
 length less than 18 inches (45.72 cm).
RS applies to shotguns with a barrel        RS Column 1
 length less than 18 inches (45.72 cm).
FC applies to entire entry................  FC Column 1
CC applies to shotguns with a barrel        CC Column 1
 length less than 24 in. (60.96 cm) and
 shotgun ``components''' controlled by
 this entry regardless of end user.

[[Page S6557]]

 
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................  See Sec.  746.1(b) of the
                                             EAR for UN controls
AT applies to shotguns with a barrel        AT Column 1
 length less than 18 inches (45.72 cm).
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $500 for 0A502 shotgun ``parts'' and ``components,'' 
     consisting of complete trigger mechanisms; magazines and 
     magazine extension tubes.
       $500 for 0A502 shotgun ``parts'' and ``components,'' 
     consisting of complete trigger mechanisms; magazines and 
     magazine extension tubes, ``complete breech mechanisms'' if 
     the ultimate destination is Canada.
       GBS: N/A
       CIV: N/A
     List of Items Controlled
       Related Controls: Shotguns that are fully automatic are 
     ``subject to the ITAR.''
       Related Definitions: N/A
       Items: The list of items controlled is contained in the 
     ECCN heading.
       Note 1 to 0A502: Shotguns made in or before 1898 are 
     considered antique shotguns and designated as EAR99.
       Technical Note: Shot pistols or shotguns that have had the 
     shoulder stock removed and a pistol grip attached are 
     controlled by ECCN 0A502. Slug guns are also controlled under 
     ECCN 0A502.
       0A503 Discharge type arms; non-lethal or less-lethal 
     grenades and projectiles, and ``specially designed'' 
     ``parts'' and ``components'' of those projectiles; 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 
     ``specially designed'' ``parts'' and ``components,'' n.e.s.
     License Requirements
       Reason for Control: CC, UN

 
------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
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................  See 746.1(b) of the EAR for
                                             UN controls
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: N/A
       GBS: N/A
       C/V: N/A
     List of Items Controlled
       Related Controls: Law enforcement restraint devices that 
     administer an electric shock 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.
       0A504 Optical sighting devices for firearms (including 
     shotguns controlled by 0A502); and ``components'' as follows 
     (see List of Items Controlled).
     License Requirements
       Reason for Control: FC, RS, CC, UN

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
RS applies to paragraph.i.................  RS Column 1
FC applies to paragraphs .a, .b, .c, d,     FC Column 1
 .e, .g, and .i of this entry.
CC applies to entire entry................  CC Column 1
UN applies to entire entry................  See Sec.  746.1(b) of the
                                             EAR for UN controls
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $500 for 0A504.g.
       GBS: N/A
       CIV: N/A
     List of Items Controlled
       Related Controls: (1) See USML Category XII(c) for sighting 
     devices using second generation image intensifier tubes 
     having luminous sensitivity greater than 350 A/1m, 
     or third generation or higher image intensifier tubes, that 
     are ``subject to the ITAR.'' (2) See USML Category XII(b) for 
     laser aiming or laser illumination systems ``subject to the 
     ITAR.'' (3) Section 744.9 of the EAR imposes a license 
     requirement on certain commodities described in 0A504 if 
     being exported, reexported, or transferred (in-country) for 
     use by a military end-user or for incorporation into an item 
     controlled by ECCN 0A919.
       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 aiming devices or laser illuminators ``specially 
         designed'' for use on firearms, and having an operational 
         wavelength exceeding 400 nm but not exceeding 710 nm.
       Note 1 to 0A504.f: 0A504.f does not control laser 
     boresighting devices that must be placed in the bore or 
     chamber to provide a reference for aligning the firearms 
     sights.
       g. Lenses, other optical elements and adjustment mechanisms 
     for articles in paragraphs .a, .b, .c, .d, .e, or .i.
       h. [Reserved]
       i. Riflescopes that were not ``subject to the EAR'' as of 
     [INSERT DATE ONE DAY PRIOR TO THE EFFECTIVE DATE OF THE FINAL 
     RULE] and are ``specially designed'' for use in firearms that 
     are ``subject to the ITAR.''
       Note 2 to paragraph i: For purpose of the application of 
     ``specially designed'' for the riflescopes controlled under 
     0A504.i, paragraph (a)(1) of the definition of ``specially 
     designed'' in Sec. 772.1 of the EAR is what is used to 
     determine whether the riflescope is ``specially designed.''
       0A505 Ammunition as follows (see List of Items Controlled).
     License Requirements
       Reason for Control: NS, RS, CC, FC, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to 0A505.a and .x..............  NS Column 1
RS applies to 0A505.a and .x..............  RS Column 1
CC applies to 0A505.b.....................  CC Column 1
FC applies to entire entry except 0A505.d.  FC Column 1
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to 0A505.a, .d, and .x.........  AT Column 1
AT applies to 0A505.c.....................  A license is required for
                                             items controlled by
                                             paragraph .c of this entry
                                             to North Korea for
                                             antiterrorism reasons. The
                                             Commerce Country Chart is
                                             not designed to determine
                                             AT licensing requirements
                                             for this entry. See Sec.
                                             742.19 of the EAR for
                                             additional information.
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $500 for items in 0A505.x, except $3,000 for items in 
     0A505.x that, immediately prior to [INSERT DATE 45 DAYS AFTER 
     DATE OF PUBLICATION IN THE FEDERAL REGISTER], were classified 
     under 0A018.b. (i.e., ``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 ITAR''). (See 22 CFR parts 120 through 130))
       GBS: N/A
       CIV: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any item 
     in 0A505.
     List of Items Controlled
       Related Controls: (1) Ammunition for modern heavy weapons 
     such as howitzers, artillery, cannon, mortars and recoilless 
     rifles as well as inherently military ammunition types such 
     as ammunition preassembled into links or belts, caseless 
     ammunition, tracer ammunition, ammunition with a depleted 
     uranium projectile or a projectile with a hardened tip or 
     core and ammunition with an explosive projectile are 
     ``subject to the ITAR.'' (2) Percussion caps, and lead balls 
     and bullets, for use with muzzle-loading firearms are EAR99 
     items.
       Related Definitions: N/A
       Items:
     a. Ammunition for firearms controlled by ECCN 0A501 or USML 
         Category I and not enumerated in paragraph .b, .c, or .d 
         of this entry or in USML Category III.
       b. Buckshot (No. 4 .24'' diameter and larger) shotgun 
     shells.
       c. Shotgun shells (including less than lethal rounds) that 
     do not contain buckshot; and ``specially designed'' 
     ``parts''' and ``components'' of shotgun shells.
       Note 1 to 0A505.c: Shotgun shells that contain only 
     chemical irritants are controlled under ECCN 1A984.
       d. Blank ammunition for firearms controlled by ECCN 0A501 
     and not enumerated in USML Category III.
       e. through w. [Reserved]
       x. ``Parts'' and ``components'' that are ``specially 
     designed'' for a commodity subject to control in this ECCN or 
     a defense article in USML Category III and not elsewhere 
     specified on the USML, the CCL or paragraph .d of this entry.
       Note 2 to 0A505.x: The Controls on ``parts'' and 
     ``components'' in this entry include Berdan and boxer 
     primers, metallic catridge cases, and standard metallic 
     projectiles such as full metal jacket, lead core, and copper 
     projectiles.
       Note 3 to 0A505.x: The controls on ``parts'' and 
     ``components'' in this entry include those ``parts'' and 
     ``components'' that are common to ammunition and ordnance 
     described in this entry and to those enumerated in USML 
     Category III.
       Note 4 to 0A505: Lead shot smaller than No. 4 Buckshot, 
     empty and unprimed shotgun shells, shotgun wads, smokeless 
     gunpowder, `Dummy rounds' and blank rounds (unless linked or 
     belted), not incorporating a lethal or non-lethal 
     projectile(s) are designated EAR99. A `dummy round or drill 
     round' is a round that is completely inert, i.e., contains no 
     primer, propellant, or explosive charge. It is typically used 
     to check weapon function and for crew training.
       43. In Supplement No. 1 to part 774, Category 0, add, 
     between entries for ECCNs 0A521 and 0A604, an entry for ECCN 
     0A602 to read as follows:
       0A602 Guns and Armament as follows (see List of Items 
     Controlled).

[[Page S6558]]

  

     License Requirements

                   Reason for Control: NS, RS, UN, AT
------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

       List Based License Exceptions (See Part 740 for a 
     description of all license exceptions)
       LVS: $500
       GBS: N/A
       CIV: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any item 
     in 0A602.
     List of Items Controlled
       Related Controls: (1) Modern heavy weapons such as 
     howitzers, artillery, cannon, mortars, and recoilless rifles 
     are ``subject to the ITAR.'' (2) See ECCN 0A919 for foreign-
     made ``military commodities'' that incorporate more than a de 
     minimis amount of U.S.-origin ``600 series'' items. (3) See 
     ECCN 0A606 for engines that are ``specially designed'' for a 
     self-propelled gun or howitzer subject to control under 
     paragraph .a of this ECCN or USML Category VII.
       Related Definitions: N/A
       Items:
       a. Guns and armament manufactured between 1890 and 1919.
       b. Military flame throwers with an effective range less 
     than 20 meters.
       c. through w. [Reserved]
       x. ``Parts'' and ``components'' that are ``specially 
     designed'' for a commodity subject to control in paragraphs 
     .a or .b of this ECCN or a defense article in USML Category 
     II and not elsewhere specified on the USML or the CCL.
       Note 1 to 0A602.x: Engines that are ``specially designed'' 
     for a self-propelled gun or howitzer subject to control under 
     paragraph .a of this ECCN or a defense article in USML 
     Category VII are controlled under ECCN 0A606.x.
       Note 2 to 0A602: ``Parts,'' ``components,'' 
     ``accessories,'' and ``attachments'' specified in USML 
     subcategory II(j) are subject to the controls of that 
     paragraph.
       Note 3 to 0A602: Black powder guns and armament 
     manufactured in or prior to 1890 and replicas thereof 
     designed for use with black powder propellants are designated 
     EAR99.
     Supplement No. 1 to Part 774--[AMENDED]
       44. In Supplement No. 1 to part 774, Category 0, remove 
     ECCNs 0A918, 0A984, 0A985, 0A986, and 0A987.
       45. In Supplement No. 1 to part 774, Category 0, revise 
     ECCN 0A988 to read as follows: 0A988 Conventional military 
     steel helmets.
       No items currently are in this ECCN. See ECCN 1A613.y.1 for 
     conventional steel helmets that, immediately prior to July 1, 
     2014, were classified under 0A988.
       46. In Supplement No. 1 to part 774, Category 0, add, 
     before the entry for ECCN 0B521, entries for ECCNs 0B501 and 
     0B505 to read as follows:
       0B501 Test, inspection, and production ``equipment'' and 
     related commodities for the ``development'' or ``production'' 
     of commodities enumerated or otherwise described in ECCN 
     0A501 or USML Category I as follows (see List of Items 
     Controlled).
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry except           NS Column 1 for ECCN 0A501.y
 equipment.
RS applies to entire entry except           RS Column 1
 equipment for ECCN 0A501.y.
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $3000
       GBS: N/A
       CIV: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used to ship any 
     item in this entry.
     List of Items Controlled
       Related Controls: N/A
       Related Definitions: N/A
       Items:
       a. Small arms chambering machines.
       b. Small arms deep hole drilling machines and drills 
     therefor.
       c. Small arms rifling machines.
       d. Small arms spill boring machines.
       e. Production equipment (including dies, fixtures, and 
     other tooling) ``specially designed'' for the ``production'' 
     of the items controlled in 0A501.a through .x. or USML 
     Category I.
       0B505 Test, inspection, and production ``equipment'' and 
     related commodities ``specially designed'' for the 
     ``development'' or ``production'' of commodities enumerated 
     or otherwise described in ECCN 0A505 or USML Category III, 
     except equipment for the hand loading of cartridges and 
     shotgun shells, as follows (see List of Items Controlled).
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to paragraphs .a and .x........  NS Column 1
RS applies to paragraphs .a and .x........  RS Column 1
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to paragraphs .a, .d, and .x...  AT Column 1
AT applies to paragraph .c................  A license is required for
                                             export or reexport of these
                                             items to North Korea for
                                             anti-terrorism reasons.
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $3000
       GBS: N/A
       CIV: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (740.20(c)(2) of the EAR) may not be used for any item in 
     0B505.
     List of Items Controlled
       Related Controls: N/A
       Related Definitions: N/A
       Items:
       a. Production equipment (including tooling, templates, 
     jigs, mandrels, molds, dies, fixtures, alignment mechanisms, 
     and test equipment), not enumerated in USML Category III that 
     are ``specially designed'' for the ``production'' of 
     commodities controlled by ECCN 0A505.a or .x or USML Category 
     III.
       b. Equipment ``specially designed'' for the ``production'' 
     of commodities in ECCN 0A505.b.
       c. Equipment ``specially designed'' for the ``production'' 
     of commodities in ECCN 0A505.c.
       d. Equipment ``specially designed'' for the ``production'' 
     of commodities in ECCN 0A505.d.
       e. through .w [Reserved]
       x. ``Parts'' and ``components'' ``specially designed'' for 
     a commodity subject to control in paragraph .a of this entry.
       47. In Supplement No. 1 to part 774, Category 0, add, 
     between entries for ECCNs 0B521 and 0B604, an entry for ECCN 
     0B602 to read as follows:
       0B602 Test, inspection, and production ``equipment'' and 
     related commodities ``specially designed'' for the 
     ``development'' or ``production'' of commodities enumerated 
     or otherwise described in ECCN 0A602 or USML Category II as 
     follows (see List of Items Controlled).
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $3000
       GBS: N/A
       CIV: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any item 
     in 0B602.
     List of Items Controlled
       Related Controls: N/A
       Related Definitions: N/A
       Items:
       a. The following commodities if ``specially designed'' for 
     the ``development'' or``production'' of commodities 
     enumerated in ECCN 0A602.a or USML Category II:
       a.1. Gun barrel rifling and broaching machines and tools 
     therefor;
       a.2. Gun barrel rifling machines;
       a.3. Gun barrel trepanning machines;
       a.4. Gun boring and turning machines;
       a.5. Gun honing machines of 6 feet (183 cm) stroke or more;
       a.6. Gun jump screw lathes;
       a.7. Gun rifling machines; and
       a.8. Barrel straightening presses.
       b. Jigs and fixtures and other metal-working implements or 
     accessories of the kinds exclusively designed for use in the 
     manufacture of items in ECCN 0A602 or USML Category II.
       c. Other tooling and equipment, ``specially designed'' for 
     the ``production'' of items in ECCN 0A602 or USML Category 
     II.
       d. Test and evaluation equipment and test models, including 
     diagnostic instrumentation and physical test models, 
     ``specially designed'' for items in ECCN 0A602 or USML 
     Category II,
     Supplement No. 1 to Part 774--[AMENDED]
       48. In Supplement No. 1 to part 774, Category 0, remove 
     ECCN 0B986.
       49. In Supplement No. 1 to part 774, Category 0, add, 
     between the entries for ECCNs 0D001 and 0D521, entries for 
     ECCNs 0D501 and 0D505 to read as follows:
       0D501 ``Software'' ``specially designed'' for the 
     ``development,'' ``production,'' operation, or maintenance of 
     commodities controlled by 0A501 or 0B501.
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry except           NS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.
RS applies to entire entry except           RS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.

[[Page S6559]]

 
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
     CIV: N/A
     TSR: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any 
     ``software'' in 0D501.
     List of Items Controlled
       Related Controls: ``Software'' required for and directly 
     related to articles enumerated in USML Category I is 
     ``subject to the ITAR''.
       Related Definitions: N/A
       Items: The list of items controlled is contained in this 
     ECCN heading.
       0D505 ``Software'' ``specially designed'' for the 
     ``development,'' ``production,'' operation, or maintenance of 
     commodities controlled by 0A505 or 0B505.
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to ``software'' for commodities  NS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a and .x.
RS applies to ``software'' for commodities  RS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a and .x.
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to ``software'' for commodities  AT Column 1
 in ECCN 0A505.a, .d, or .x and equipment
 in ECCN 0B505.a, .d, or .x.
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any 
     ``software'' in 0D505.
     List of Items Controlled
       Related Controls: ``Software'' required for and directly 
     related to articles enumerated in USML Category III is 
     ``subject to the ITAR''.
       Related Definitions: N/A
       Items: The list of items controlled is contained in this 
     ECCN heading.
       50. In Supplement No. 1 to part 774, Category 0, add, 
     between the entries for ECCNs 0D521 and 0D604, an entry for 
     ECCN 0D602 to read as follows:
       0D602 ``Software'' ``specially designed'' for the 
     ``development,'' ``production,'' operation or maintenance of 
     commodities controlled by 0A602 or 0B602 as follows (see List 
     of Items Controlled).
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any item 
     in 0D602.
     List of Items Controlled
       Related Controls: (1) ``Software'' required for and 
     directly related to articles enumerated in USML Category II 
     is ``subject to the ITAR''. (2) See ECCN 0A919 for foreign-
     made ``military commodities'' that incorporate more than a de 
     minimis amount of U.S.-origin ``600 series'' items.
       Related Definitions: N/A
       Items: ``Software'' ``specially designed'' for the 
     ``development,'' ``production,'' operation, or maintenance of 
     commodities controlled by ECCN 0A602 and ECCN 0B602.
       51. In Supplement No. 1 to part 774, Category 0, remove 
     ECCN 0E018.
       52. In Supplement No. 1 to part 774, Category 0, add, 
     between the entries for ECCNs 0E001 and 0E521, entries for 
     ECCNs 0E501, 0E502, 0E504, and 0E505 to read as follows:
       0E501 ``Technology'' ``required'' for the ``development,'' 
     ``production,'' operation, installation, maintenance, repair, 
     or overhaul of commodities controlled by 0A501 or 0B501 as 
     follows (see List of Items Controlled).
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                             Country Chart (See Supp. No
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (740.20(c)(2) of the EAR) may not be used to ship any 
     ``technology'' in ECCN 0E501.
     List of Items Controlled
       Related Controls: Technical data required for and directly 
     related to articles enumerated in USML Category I are 
     ``subject to the ITAR.''
       Related Definitions: N/A
       Items:
       a. ``Technology'' ``required'' for the ``development'' or 
     ``production'' of commodities controlled by ECCN 0A501 (other 
     than 0A501.y) or 0B501.
       b. ``Technology'' ``required'' for the operation, 
     installation, maintenance, repair, or overhaul of commodities 
     controlled by ECCN 0A501 (other than 0A501.y) or 0B501.
       0E502 ``Technology'' ``required'' for the ``development'' 
     or ``production'' of commodities controlled by 0A502.
     License Requirements
       Reason for Control: CC, UN

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                 Controls                            1 part 738)
------------------------------------------------------------------------
CC applies to entire entry................  CC Column 1
UN applies to entire entry................  See Sec.  746.1(b) of the
                                             EAR for UN controls
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     List of Items Controlled
       Related Controls: Technical data required for and directly 
     related to articles enumerated in USML Category I are 
     ``subject to the ITAR''.
       Related Definitions: N/A
       Items: The list of items controlled is contained in the 
     ECCN heading.
       0E504 ``Technology'' ``required'' for the ``development'' 
     or ``production'' of commodities controlled by 0A504 that 
     incorporate a focal plane array or image intensifier tube.
     License Requirements
       Reason for Control: RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                 Controls                            1 part 738)
------------------------------------------------------------------------
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.  746.1(b) of the
                                             EAR for UN controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     List of Items Controlled
       Related Controls: N/A
       Related Definitions: N/A
       Items: The list of items controlled is contained in the 
     ECCN heading.
       0E505 ``Technology'' ``required'' for the ``development,'' 
     ``production,'' operation, installation, maintenance, repair, 
     overhaul, or refurbishing of commodities controlled by 0A505.
     License Requirements
       Reason for Control: NS, RS, UN, CC, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to ``technology'' for            NS Column 1
 ``development,'' ``production,''
 operation, installation, maintenance,
 repair, overhaul, or refurbishing
 commodities in 0A505.a and .x; for
 equipment for those commodities in OB505;
 and for ``software'' for that equipment
 and those commodities in OD505.
RS applies to entire entry except           RS Column 1
 ``technology'' for ``development,''
 ``production,'' operation, installation,
 maintenance, repair, overhaul, or
 refurbishing commodities in 0A505.a and
 .x; for equipment for those commodities
 in OB505 and for ``software'' for those
 commodities and that equipment in OD505.
UN applies to entire entry................  See Sec.  746.1 of the EAR
                                             for UN controls
CC applies to ``technology'' for the        CC Column 1
 ``development'' or ``production'' of
 commodities in 0A505.b.
AT applies to ``technology'' for            AT Column 1
 ``development,'' ``production,''
 operation, installation, maintenance,
 repair, overhaul, or refurbishing
 commodities in 0A505.a, .d, and .x.
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (Sec. 740.20(c)(2) of the EAR) may not be used for any 
     ``technology'' in 0E505.
     List of Items Controlled
       Related Controls: Technical data required for and directly 
     related to articles enumerated in USML Category III are 
     ``subject to the ITAR''.
       Related Definitions: N/A
       Items: The list of items controlled is contained in this 
     ECCN heading.
       53. In Supplement No. 1 to part 774, Category 0, add, 
     between the entries for ECCNs 0E521 and 0E604, an entry for 
     ECCN 0E602:
       0E602 ``Technology'' ``required'' for the ``development,'' 
     ``production,'' operation, installation, maintenance, repair, 
     overhaul, or refurbishing of commodities controlled by 0A602 
     or 0B602, or ``software'' controlled by 0D602 as follows (see 
     List of Items Controlled).
     License Requirements
       Reason for Control: NS, RS, UN, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 1

[[Page S6560]]

 
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See 746.1 of the EAR for UN
                                             controls
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     Special conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (740.20(c)(2) of the EAR) may not be used for any item in 
     0E602.
     List of Items Controlled
       Related Controls: Technical data directly related to 
     articles enumerated in USML Category II are ``subject to the 
     ITAR.''
       Related Definitions: N/A
       Items: ``Technology'' ``required'' for the ``development,'' 
     ``production,'' operation, installation, maintenance, repair, 
     or overhaul of commodities controlled by ECCN 0A602 or 0B602, 
     or ``software'' controlled by ECCN 0D602.
     Supplement No. 1 to Part 774--[AMENDED]
       54. In Supplement No. 1 to part 774, Category 0, remove 
     ECCN 0E918.
       55. In Supplement No. 1 to part 774, Category 0, revise 
     ECCN 0E982 to read as follows.
       0E982 ``Technology'' exclusively for the ``development'' or 
     ``production'' of equipment controlled by 0A982 or 0A503.
     License Requirements
       Reason for Control: CC

------------------------------------------------------------------------
                               Control(s)
-------------------------------------------------------------------------
CC applies to ``technology'' for items controlled by 0A982 or 0A503. 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.)
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: N/A
     List of Items Controlled
       Related Controls: N/A
       Related Definitions: N/A
       Items:
       The list of items controlled is contained in the ECCN 
     heading.
     Supplement No. 1 to Part 774--[AMENDED]
       56. In Supplement No. 1 to part 774, Category 0, remove 
     ECCNs 0E984 and 0E987.
       57. In Supplement No. 1 to part 774, Category 1, revise 
     ECCN 1A984 to read as follows:
       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 (excluding shotgun shells, unless the 
     shotgun shells contain only chemical irritants) having 
     dual military and commercial use, and ``parts'' and 
     ``components'' ``specially designed'' therefor, n.e.s.
     License Requirements
       Reason for Control: CC

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
CC applies to entire entry................  CC Column 1
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: N/A
       GBS: N/A
       CIV: N/A
     List of Items Controlled
       Related Controls: N/A
       Related Definitions: N/A
       Items:
       The list of items controlled is contained in the ECCN 
     heading.
       58. In Supplement No. 1 to part 774, Category 2, revise 
     ECCN 2B004 to read as follows:
       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

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
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
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: N/A
       GBS: N/A
       C/V: N/A
     List of Items Controlled
       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 0B501, 0B602, 0B606, 1B003, 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.
       59. In Supplement No. 1 to part 774, Category 2, revise 
     ECCN 2B018 to read as follows:
       2B018 Equipment on the Wassenaar Arrangement Munitions 
     List.
       No commodities currently are controlled by this entry. 
     Commodities formerly controlled by paragraphs .a through .d, 
     .m, and .s of this entry are controlled in ECCN 0B606. 
     Commodities formerly controlled by paragraphs .e through .1 
     of this entry are controlled by ECCN 0B602. Commodities 
     formerly controlled by paragraphs .o through .r of this entry 
     are controlled by ECCN 0B501. Commodities formerly controlled 
     by paragraph .n of this entry are controlled in ECCN 0B501 if 
     they are ``specially designed'' for the ``production'' of the 
     items controlled in ECCN 0A501.a through .x or USML Category 
     I and controlled in ECCN 0B602 if they are of the kind 
     exclusively designed for use in the manufacture of items 
     in ECCN 0A602 or USML Category II.
       60. In Supplement No. 1 to part 774, Category 2, revise 
     ECCN 2D018 to read as follows:
       2D018 ``Software'' for the ``development,'' ``production,'' 
     or ``use'' of equipment controlled by 2B018.
       No software is currently controlled under this entry. See 
     ECCNs OD501, OD602, and OD606 for software formerly 
     controlled under this entry.
       61. In Supplement No. 1 to part 774, Category 2, revise 
     ECCN 2E001 to read as follows:
       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, 2B998, or 2B999), or 2D 
     (except 2D983, 2D984, 2D991, 2D992, or 2D994).
     License Requirements
       Reason for Control: NS, MT, NP, CB, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to ``technology'' for items      NS Column 1
 controlled by 2A001, 2B001 to 2B009,
 2D0Of or 2D002.
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 2A225, 2A226, 2B001, 2B004,
 2B006, 2B007, 2B009, 2B104, 2B 109,
 2B116, 2B201, 2B204, 2B206, 2B207, 2B209,
 2B225 to 2B233, 2D001, 2D002, 2D101,
 2D201, or 2D202 for NP reasons.
NP applies to ``technology'' for items      NP Column 2
 controlled by 2A290, 2A291, or 2D290 for
 NP reasons.
CB applies to ``technology'' for equipment  CB Column 2
   controlled by 2B350 to 2B352, valves
      controlled by 2A226 having the
  characteristics of those controlled by
 2B350.g, and software controlled by 2D351
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     Reporting Requirements
       See Sec. 743.1 of the EAR for reporting requirements for 
     exports under License Exceptions, and Validated End-User 
     authorizations.
     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: Yes, except N/A for MT
     Special Conditions for STA
       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 destinations listed in Country Group A:6 (See 
     Supplement No.1 to part 740 of the EAR).
     List of Items Controlled
       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 1 to 2E001: ECCN 2E001 includes ``technology'' for the 
     integration of probe systems into coordinate measurement 
     machines specified by 2B006.a.
       62. In Supplement No. 1 to part 774, Category 2, revise 
     ECCN 2E002 to read as follows:
       2E002 ``Technology'' according to the General Technology 
     Note for the ``production''

[[Page S6561]]

     of equipment controlled by 2A (except 2A983, 2A984, 2A991, or 
     2A994), or 2B (except 2B991, 2B993, 2B996, 2B997, 2B998, or 
     2B999).
     License Requirements
       Reason for Control: NS, MT, NP, CB, AT

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                Control(s)                         1 to part 738)
------------------------------------------------------------------------
NS applies to ``technology'' for equipment  NS Column 1
 controlled by 2A001, 2B001 to 2B009.
MT applies to ``technology'' for equipment  MT Column 1
 controlled by 2B004, 2B009, 2B104, 2B105,
 2B109, 2B116, 2B117, or 2B119 to 2B122
 for MT reasons.
NP applies to ``technology'' for equipment  NP Column 1
 controlled by 2A225, 2A226, 2B001, 2B004,
 2B006, 2B007, 2B009, 2B104, 2B109, 2B116,
 2B201, 2B204, 2B206, 2B207, 2B209, 2B225
          to 2B233 for NP reasons
NP applies to ``technology'' for equipment  NP Column 2
    controlled by 2A290 or 2A291 for NP
                  reasons
CB applies to ``technology'' for equipment  CB Column 2
   controlled by 2B350 to 2B352 and for
   valves controlled by 2A226 having the
  characteristics of those controlled by
                  2B350.g
AT applies to entire entry................  AT Column 1
------------------------------------------------------------------------

     Reporting Requirements
       See Sec. 743.1 of the EAR for reporting requirements for 
     exports under License Exceptions, and Validated End-User 
     authorizations.
     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       CIV: N/A
       TSR: Yes, except N/A for MT

     SPECIAL CONDITIONS FOR STA

       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 
     destinations listed in Country Group A:6 (See Supplement No.1 
     to part 740 of the EAR).
     List of Items Controlled
       Related Controls: N/A
       Related Definitions: N/A
       Items:
       The list of items controlled is contained in the ECCN 
     heading.
       63. In Supplement No. 1 to part 774, Category 7, revise 
     ECCN 7A611 to read as follows:
       7A611 Military fire control, laser, imaging, and guidance 
     equipment, as follows (see List of Items Controlled).
     License Requirements
       Reason for Control: NS, MT, RS, AT, UN

------------------------------------------------------------------------
                                            Country Chart (See Supp. No.
                  Control                          1 to part 738).
------------------------------------------------------------------------
NS applies to entire entry except 7A611.y.   NS Column 1
MT applies to commodities in 7A611.a that   MT Column 1
 meet or exceed the parameters in 7A103.b
 or .c.
RS applies to entire entry except 7A611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7A611.y.  See Sec.  746.1(b) of the
                                             EAR for UN controls
------------------------------------------------------------------------

     List Based License Exceptions (See Part 740 for a description 
         of all license exceptions)
       LVS: $1500
       GBS. N/A
       C/V: N/A
     Special Conditions for STA
       STA: Paragraph (c)(2) of License Exception STA 
     (740.20(c)(2) of the EAR) may not be used for any item in 
     7A611.
     List of Items Controlled
       Related Controls: (1) Military fire control, laser, 
     imaging, and guidance equipment that are enumerated in USML 
     Category XII, and technical data (including software) 
     directly related thereto, are subject to the ITAR. (2) See 
     Related Controls in ECCNs 0A504, 2A984, 6A002, 6A003, 6A004, 
     6A005, 6A007, 6A008, 6A107, 7A001, 7A002, 7A003, 7A005, 
     7A101, 7A102, and 7A103. (3) See ECCN 3A611 and USML Category 
     XI for controls on countermeasure equipment. (4) See ECCN 
     0A919 for foreign-made ``military commodities'' that 
     incorporate more than a de minimis amount of U.S. origin 
     ``600 series'' controlled content.
       Related Definitions: N/A
       Items:
       a. Guidance or navigation systems, not elsewhere specified 
     on the USML, that are ``specially designed'' for a defense 
     article on the USML or for a 600 series item.
       b. to w. [RESERVED]
       x. ``Parts,'' ``components,'' ``accessories,'' and 
     ``attachments,'' including accelerometers, gyros, angular 
     rate sensors, gravity meters (gravimeters), and inertial 
     measurement units (IMUs), that are ``specially designed'' for 
     defense articles controlled by USML Category XII or items 
     controlled by 7A611, and that are NOT:
       1. Enumerated or controlled in the USML or elsewhere within 
     ECCN 7A611;
       2. Described in ECCNs 6A007, 6A107, 7A001, 7A002, 7A003, 
     7A101, 7A102, or 7A103; or
       3. Elsewhere specified in ECCN 7A611.y or 3A611.y.
       y. Specific ``parts,'' ``components,'' ``accessories,'' and 
     ``attachments'' ``specially designed'' for a commodity 
     subject to control in this ECCN or a defense article in 
     Category XII and not elsewhere specified on the USML or in 
     the CCL, as follows, and ``parts,'' ``components,'' 
     ``accessories,'' and ``attachments'' ``specially designed'' 
     therefor:
       y.1 [RESERVED]
       Dated:
                                                Richard E. Ashooh,
                    Assistant Secretary for Export Administration.

         Summary of Revisions to USML Categories I, II, and III

       In 2009, the interagency began a review of the U.S. export 
     control system, with the goal of strengthening national 
     security and the competitiveness of key U.S. manufacturing 
     and technology sectors by focusing on current threats, as 
     well as adapting to the changing economic and technological 
     landscape. This review determined that the then-current 
     export control system was overly complicated, contained too 
     many redundancies, and, in trying to protect too much, 
     diminished our ability to focus our efforts on the most 
     critical national security priorities.
       To this end, the Departments of State and Commerce have 
     been reviewing and revising the two primary lists of 
     controlled items, i.e., the United States Munitions List 
     (USML) and the Commerce Control List (CCL). A key strategy in 
     the reform effort has been to construct the lists so they 
     positively identify the items they control. Thus, for 
     example, the USML lists the specific types of parts, 
     components, accessories, and attachments that warrant control 
     under the International Traffic in Arms Regulations (ITAR) 
     rather than all generic ``parts,'' ``components,'' 
     ``accessories and attachments'' that are in any way 
     ``specifically designed, modified, adapted, or configured'' 
     for a defense article, regardless of military significance 
     (as is currently the case for unrevised USML categories). All 
     other generic parts, components, accessories, and attachments 
     and the technology for their ``production,'' ``development,'' 
     or ``use'' that are ``specially designed'' for an item 
     formerly on the USML but not specifically identified on the 
     USML will become subject to the jurisdiction of the Export 
     Administration Regulations (EAR) and identified on its CCL.
       In connection with this effort, the Department of State has 
     published 26 final, or interim final, rules revising 18 of 
     the 21 USML categories. In May 2018, the Department of State 
     published proposed revisions of the remaining three USML 
     Categories, including Category I (firearms and related 
     articles), II (guns and armaments) and III (ammunition and 
     ordnance), which follow this model of utilizing a ``positive 
     list'' for controls. Articles that are not positively 
     identified on the USML will continue to be controlled, albeit 
     under the jurisdiction of the EAR.
       In February 2019, the Department of State formally notified 
     Congress of the transfer of jurisdictional control of certain 
     classes of items in Categories, I, II, and III. The 
     Department of State is submitting a new notification to 
     Congress because the Department of Commerce has amended 
     certain controls in its draft companion rule. In particular, 
     in order to address concerns raised by some members of 
     Congress and the public regarding certain access to 3D 
     printing technology and software for firearms, the Department 
     of Commerce has revised its draft final rule to make certain 
     technology and software capable of producing firearms subject 
     to the EAR when posted on the internet under specified 
     circumstances. The Department of State has not made any 
     changes to the classes of items in Categories I, II, or III 
     that it is proposing to remove from the USML from the time 
     that the Department of State notified Congress in February 
     2019.
     Category I--Firearms and Related Articles
       Paragraph (a) is revised by limiting the scope of the 
     control to firearms using caseless ammunition. Non-automatic 
     and semi-automatic firearms that do not use caseless 
     ammunition will be controlled in Export Control 
     Classification Number (ECCN) 0A501 on the CCL, except for 
     firearms manufactured prior to 1890.
       Paragraph (b) is non-substantively revised.
       Paragraph (c) is revised by limiting the scope to firearms 
     specially designed to integrate fire control, automatic 
     tracking, or automatic firing (e.g., Precision Guided 
     Firearms). Other weapons that were controlled here will be 
     controlled in ECCN 0A501.
       Paragraph (d) is revised by limiting the scope to fully 
     automatic shotguns. Other shotguns that were controlled here 
     will be controlled in ECCN 0A502.
       Paragraph (e) is revised by removing flash suppressors and 
     moving certain parts and components for the remaining items 
     in paragraph (e) to paragraph (h)(3). Flash suppressors will 
     be controlled in ECCN 0A501.
       Paragraph (f) is reserved. Riflescopes with night vision or 
     infrared were moved to USML Category XII(c)(2) in 2016 
     through 81 FR 70340. All other rifle scopes that were 
     controlled here will be controlled in ECCN 0A504.
       Paragraph (g) is revised to more clearly delineate the 
     major components of USML firearms that are controlled. The 
     major parts and components of firearms that transition to the 
     CCL will be controlled in ECCN 0A501.
       Paragraph (h) is revised by adding four subparagraphs to 
     specifically enumerate the articles controlled. The parts, 
     components, accessories, and attachments of firearms that 
     transition to the CCL will be controlled in ECCN 0A501, as 
     will any parts, components, accessories, and attachments of 
     USML firearms that are not listed in paragraphs (g) or (h).
       Paragraph (i) is revised to add control for the classified 
     technical data directly related to items controlled in ECCNs 
     0A501, OB501, OD501, and 0E501 and defense services using the 
     classified technical data.

[[Page S6562]]

       A new paragraph (x) has been added to USML Category I, 
     allowing ITAR licensing on behalf of the Department of 
     Commerce for commodities, software, and technology subject to 
     the EAR, provided those commodities, software, and technology 
     are to be used in or with defense articles controlled in USML 
     Category XII and are described in the purchase documentation 
     submitted with the application.
     Category II--Guns and Armament
       Paragraph (a) is revised by adding five subparagraphs to 
     specifically enumerate the articles controlled, including 
     adding a control for DOD-funded development guns and 
     armaments and their specially designed parts and components. 
     Two notes are added to paragraph (a) in order to exclude from 
     the control certain items that do not warrant control on the 
     USML. Non-automatic and non-semi-automatic rifles, carbines, 
     and pistols between .50 (12.7 mm) and .72 caliber (18.288 mm) 
     will be controlled under ECCN 0A501. Black powder guns and 
     armaments manufactured between 1890 and 1919 will be 
     controlled under ECCN 0A602, except for black powder guns and 
     armaments manufactured earlier than 1890.
       Paragraph (b) is revised to control flame throwers based on 
     the technical parameter of a range 20 meters or greater.
       Paragraph (c) is reserved. The items that were controlled 
     in this paragraph that warrant USML control are now described 
     in paragraph (a)(4) and the rest are controlled in ECCN 
     0A602.
       Paragraph (d) is revised to control specially designed 
     kinetic energy weapons.
       Paragraph (e) is revised to more specifically describe the 
     items warranting control under this paragraph. Items that 
     were controlled in this paragraph as being for guns and 
     armaments controlled in paragraph (c) that did not move to 
     paragraph (a)(4) are controlled in ECCN 0A602.
       Paragraph (f) is reserved. The items that were controlled 
     here will be controlled in ECCN 0A606.
       Paragraph (g) is reserved. The items that were controlled 
     here will be controlled in ECCN 0B602.
       Paragraph (h) is reserved. The items that were controlled 
     here will be controlled in ECCN 0B602.
       Paragraph (i) is reserved. The items that were controlled 
     that continue to warrant USML control are moved to paragraphs 
     (j)(9) and components therefor to (j)(10) and the rest will 
     be controlled in ECCN 0B602.
       Paragraph (j) is revised by adding seventeen subparagraphs 
     to specifically enumerate the articles controlled. The parts, 
     components, accessories, and attachments that are not listed 
     in paragraph (j) will be controlled in ECCN 0A602.
       Paragraph (k) is revised to add control for the classified 
     technical data directly related to items controlled in ECCNs 
     0A602, 0B602, 0D602, and 0E602 and defense services using the 
     classified technical data.
       A new paragraph (x) has been added to USML Category II, 
     allowing ITAR licensing on behalf of the Department of 
     Commerce for commodities, software, and technology subject to 
     the EAR, provided those commodities, software, and technology 
     are to be used in or with defense articles controlled in USML 
     Category XII and are described in the purchase documentation 
     submitted with the application.
     Category III--Ammunition and Ordnance
       Paragraph (a) is revised by adding ten subparagraphs to 
     specifically enumerate the articles controlled, including 
     adding a control for DOD-funded development ammunition. 
     Ammunition not described will be controlled under ECCN 0A505. 
     Black powder guns and armaments manufactured between 1890 and 
     1919 will be controlled under ECCN 0A602, except for black 
     powder guns and armaments manufactured earlier than 1890.
       Paragraph (b) is revised to more specifically describe the 
     items warranting control under this paragraph by identifying 
     those items in two subparagraphs. Items that were controlled 
     in this paragraph but do not meet the more specific 
     description will be controlled in ECCN 0B505.
       Paragraph (c) is reserved. The items that were controlled 
     in this paragraph will be controlled in ECCN 0B505.
       Paragraph (d) is revised by adding fifteen subparagraphs to 
     specifically enumerate the articles controlled. Parts and 
     components of USML ammunition that are not described will be 
     controlled in ECCN 0A505.
       Paragraph (e) is revised to add control for the classified 
     technical data directly related to items controlled in ECCNs 
     0A505, 0B505, 0D505, and 0E505 and defense services using the 
     classified technical data.
       A new paragraph (x) has been added to USML Category II, 
     allowing ITAR licensing on behalf of the Department of 
     Commerce for commodities, software, and technology subject to 
     the EAR, provided those commodities, software, and technology 
     are to be used in or with defense articles controlled in USML 
     Category XII and are described in the purchase documentation 
     submitted with the application.
       A new note is added to Category III to provide that 
     ammunition crimped without a projectile (blank star) and 
     dummy ammunition with a pierced powder chamber are not on the 
     USML. These items will be controlled in ECCN 0A505. An 
     additional new note is added to provide that grenades 
     containing non-lethal or less lethal projectiles are not on 
     the USML. These grenades will be controlled in ECCN 0A505.
       For items that have transitioned to the CCL in a 600 series 
     entry, transactions destined for countries subject to a U.S. 
     arms embargo will not be eligible for license exceptions, 
     except for License Exception GOV under EAR 
     Sec. 740.11(b)(2)(ii). Multilateral regime-controlled items 
     moved from the USML to the CCL will retain their regime 
     control parameters and reasons for control.
       The Department of Commerce has created a License Exception 
     Strategic Trade Authorization (STA, Sec. 740.20), which 
     authorizes the export, re-export, and transfer (in-country) 
     of certain items on the CCL to ``countries of least concern'' 
     without a license (i.e., 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, and the United Kingdom). Parts, components, 
     accessories and attachments controlled under subparagraph 
     ``x'' of the relevant ECCNs will be automatically available 
     for this exception. However, end-items that will be 
     controlled under the new ECCNs will be subject to a ``first 
     time'' license requirement. Exporters will be able to request 
     a determination on STA eligibility for these items concurrent 
     with a license request. If the Departments of State, Defense, 
     and Commerce all agree, the end-item would be separately 
     posted, by model number, as eligible for STA in the future. 
     If the departments cannot reach consensus, the end-item would 
     continue to require a license to all destinations except 
     Canada.
       Existing License Exceptions LVS (Sec. 740.3), TMP 
     (Sec. 740.9), RPL (Sec. 740.10), and GOV 
     (Sec. 740.11(b)(2)(ii) or (b)(2)(iii)) will be eligible for 
     use for items controlled by these ECCNs.

          Categories I, II and III MDE Transitioning to the CCL
------------------------------------------------------------------------
 
ITEM DESCRIPTION                                CCL CONTROL
Cartridge, 5.56mm M855A1........  CCL...............  ECCN 0A505.a
------------------------------------------------------------------------

       Edited text set in black brackets. Revised text set in 
     italic.

                          ____________________