[Federal Register Volume 60, Number 202 (Thursday, October 19, 1995)]
[Rules and Regulations]
[Pages 54030-54035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25900]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 773, 778 and 799

[Docket No. 951004245-5245-01]
RIN 0694-AB20


Revisions to the Export Administration Regulations: Exports of 
Sample Shipments Containing Precursor and Intermediate Chemicals; 
Revision to Australia Group Members; Aqueous Hydrofluoric Acid; and 
Clarifications

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration (BXA) maintains the 
Commerce Control List (CCL), as part of the Export Administration 
Regulations (EAR). The changes made by this rule are based on 
discussions in the Australia Group (AG) and suggested changes by 
industry. 

[[Page 54031]]

    This rule amends the CCL by revising Export Control Classification 
Number (ECCN) 1C60 to clarify that this entry controls aqueous 
hydrofluoric acid. ECCN 1C60 controls dual-use precursors and 
intermediate chemicals useful in the production of chemical warfare 
agents and certain mixtures containing such chemicals.
    In addition, this rule adds Poland, Romania and the Slovak Republic 
to the list of Australia Group countries, thereby making them eligible 
for the license exceptions accorded AG members.

DATES: This rule is effective October 19, 1995.

FOR FURTHER INFORMATION CONTACT:
    For general questions, call Sharron Cook, Bureau of Export 
Administration, Regulatory Policy Division, Telephone: (202) 482-2440.
    For questions on foreign policy controls, call Patricia Sefcik, 
Bureau of Export Administration, Chemical & Biological Controls 
Division, Telephone: (202) 482-0707.
    For questions of a technical nature on chemical weapon precursors, 
biological agents, and equipment that can be used to produce chemical 
and biological weapons agents, call James Seevaratnam, Bureau of Export 
Administration, Chemical & Biological Controls Division, Telephone: 
(202) 482-3343.

SUPPLEMENTARY INFORMATION:

Background

    The export control liberalization set forth in BXA's October 19, 
1994 Federal Register notice (59 FR 52685) provides relief to the 
chemical industry from the previous zero tolerance on chemical mixtures 
containing an Australia Group (AG) controlled chemical precursor. 
Before October 19, 1994, the U.S. did not permit any preferential 
licensing treatment for exports of chemical mixtures that contained any 
quantity of an AG-controlled chemical.
    In May 1994, the members of the AG agreed to harmonize licensing 
requirements for mixtures containing AG controlled chemicals in order 
to facilitate legitimate trade without allowing chemical weapons (CW) 
proliferators to circumvent AG controls. Accordingly, thresholds were 
agreed to for mixtures containing de minimis quantities, by weight, of 
AG controlled chemicals. In this regard, the ``solvent free basis'' 
provision for determining whether such chemical mixtures are subject to 
export licensing requirement was added to preclude proliferators from 
extracting meaningful quantities of AG controlled chemical precursors 
for use in the production of CW.
    At the November/December 1994 meeting of the Australia Group, the 
delegates discussed certain technical revisions in the AG's harmonized 
controls on chemical weapons precursors. The changes discussed at the 
meeting are contained in this final rule. These changes refine and 
clarify the scope of controls on exports of sample shipments and 
mixtures containing controlled precursor and intermediate chemicals. 
This rule does not address controls on biological agents that are 
controlled by ECCN 1C61.
    Consistent with an AG agreement, Commerce is adding a note to ECCN 
1C60 to clarify that a validated license is required for aqueous 
hydrofluoric acid.
    This rule also adds Poland, Romania and the Slovak Republic to the 
list of countries exempt from certain validated license requirements on 
the basis of their recent membership in the Australia Group. For 
consistency and conformity, Romania has been removed from Supplement 
No. 5 to Part 778.
    The chemical industry commented on the October 1994 rule, and 
requested that BXA clarify the terms ``solvent'' and ``solvent free 
basis.'' Therefore, in Supplement No. 3 to Part 778, this rule sets 
forth the definition of solvent and provides examples of mixtures 
containing AG-controlled chemicals, with and without solvents, to 
assist companies in determining whether such mixtures require validated 
export licenses.
    BXA also received comments concerning the reporting requirements 
for sample shipments. Many exporters recommended that reports for 
sample shipments should be submitted on a quarterly basis instead of 
within 30 days after each sample shipment. The reports and the 
reporting requirement have been under consideration and upon assessing 
the data, and in light of the revisions to sample shipments made by 
this rule, it was determined that the reporting requirement will be 
made quarterly, under OMB control number 0694-0086.
    BXA also received comments on the potential confusion caused by 
including in ECCN 1C60 both precursor chemicals that require a license 
to most countries and sample and mixtures that are exempt from a 
validated license requirement to most destinations. Therefore, this 
rule establishes a new ECCN 1C95F for mixtures meeting the de minimis 
mixtures exemptions found in ECCN 1C60. However, 1C60 chemicals that 
meet the samples exemption do not lose their identity and therefore 
will remain classified under ECCN 1C60.
    This final rule revises ECCN 1C60, which controls precursor and 
intermediate chemicals useful in the production of chemical warfare 
agents, as follows:

ECCN 1C60

    (1) Note 1 to ECCN 1C60 is revised to modify the general license 
treatment for sample shipments containing controlled chemical 
precursors to eligible destinations (all destinations except Iran, 
Syria and Country Groups S and Z). Previously, general license 
treatment for sample shipments to eligible destinations has been 
available for only a single sample shipment equal to or less than a 55-
gallon container or 200 kg of each chemical to any one consignee per 
calendar year. Exporters may now use General License G-DEST to make 
multiple sample shipments of any quantity of precursor or intermediate 
chemicals, listed in ECCN 1C60, as long as the cumulative annual amount 
of each chemical to any one consignee does not exceed either a 55 
gallon container or 200 kg. Reports on sample shipments must be made 
quarterly.
    (2) Note 2 to ECCN 1C60 is clarified by adding a definition of 
``Solvent''.
    Although the Export Administration Act (EAA) expired on August 20, 
1994, the President invoked the International Emergency Economic Powers 
Act and continued in effect, to the extent permitted by law, the 
provisions of the EAA and the EAR in Executive Order 12924 of August 
19, 1994.
    Notwithstanding any other provision of law, no person is required 
to respond to nor shall a person be subject to a penalty for failure to 
comply with a collection of information subject to the requirements of 
the Paperwork Reduction Act unless that collection of information 
displays a currently valid OMB Control Number.

Saving Clause

    Shipments of aqueous hydrofluoric acid that were on dock for 
loading, on lighter, laden aboard an exporting carrier, or en route 
aboard a carrier to a port of export pursuant to actual orders for 
export before October 19, 1995 may be exported under general license 
provisions up to and including November 16, 1995. Any aqueous 
hydrofluoric acid not actually exported before midnight November 16, 
1995, require a validated export license in accordance with this 
regulation. 

[[Page 54032]]


Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
the purposes of Executive Order 12866.
    2. This rule involves collections of information subject to the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). These 
collections have been approved by the Office of Management and Budget 
under control numbers 0694-0005, 0694-0010, 0694-0023, 0694-0067, and 
0694-0086. This rule makes a revision to an OMB collection, control 
number 0694-0086. The public burden for this collection contained 
within the rulemaking will remain an estimated average of one-half hour 
per response, although the frequency for reporting has been decreased. 
This includes the time for reviewing instructions, searching existing 
data sources, gathering and maintaining the data needed, and completing 
and reviewing the collection of information. Send comments regarding 
these burden estimates or any other aspect of the data requirements, 
including suggestions for reducing this burden, to the Office of 
Security and Management Support, Room 4513, Bureau of Export 
Administration, U.S. Department of Commerce, Washington, D.C. 20230; 
and to the Office of Information and Regulatory Affairs, Office of 
Management and Budget, Washington, D.C. 20503 (Attn: Paperwork 
Reduction Project--0694-0086).
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 12612.
    4. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by section 
553 of the Administrative Procedure Act (5 U.S.C. 553) or by any other 
law, under sections 3(a) of the Regulatory Flexibility Act (5 U.S.C. 
603(a) and 604(a)) no initial or final Regulatory Flexibility Analysis 
has to be or will be prepared.
    5. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States. Further, no other law requires that a 
notice of proposed rulemaking and an opportunity for public comment be 
given for this rule.
    Therefore, this regulation is issued in final form. Although there 
is no formal comment period, public comments on this regulation are 
welcome on a continuing basis. Comments should be submitted to Sharron 
Cook, Regulatory Policy Division, Office of Exporter Services, Bureau 
of Export Administration, Department of Commerce, P.O. Box 273, 
Washington, DC 20044.

List of Subjects

15 CFR Part 773 and 799

    Exports, Reporting and recordkeeping requirements.

15 CFR Part 778

    Exports, Nuclear energy, Reporting and recordkeeping requirements.
    Accordingly, Parts 773, 778 and 799 of the Export Administration 
Regulations (15 CFR Parts 730-799) are amended as follows:
    1. The authority citations for 15 CFR Part 773 and 778 continue to 
read as follows:

    Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et 
seq.), as amended; Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et 
seq.); Pub. L. 95-242, 92 Stat. 120 (22 U.S.C. 3201 et seq. and 42 
U.S.C. 2139a); Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et 
seq.), as amended; Pub. L. 102-484, 106 Stat. 2575 (22 U.S.C. 6004); 
E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 1977), as amended; 
E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 1978); E.O. 12214 
of May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 12851 of June 11, 
1993 (58 FR 33181, June 15, 1993); E.O. 12867 of September 30, 1993 
(58 FR 51747, October 4, 1993); E.O. 12924 of August 19, 1994 (59 FR 
43437 of August 23, 1994); E.O. 12938 of November 14, 1994 (59 FR 
59099 of November 16, 1994) and Notice of August 15, 1995 (60 FR 
42767).

    2. The authority citation for 15 CFR Part 799 continues to read as 
follows:

    Authority: 50 U.S.C. App. 5, as amended; Pub. L. 264, 59 Stat. 
619 (22 U.S.C. 287c), as amended; Pub. L. 90-351, 82 Stat. 197 (18 
U.S.C. 2510 et seq.), as amended; sec. 101, Pub. L. 93-153, 87 Stat. 
576 (30 U.S.C. 185), as amended; sec. 103, Pub. L. 94-163, 89 Stat. 
877 (42 U.S.C. 6212), as amended; secs. 201 and 201(11)(e), Pub. L. 
94-258, 90 Stat. 309 (10 U.S.C. 7420 and 7430(e)), as amended; Pub. 
L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et seq.); Pub. L. 95-242, 
92 Stat. 120 (22 U.S.C. 3201 et seq. and 42 U.S.C. 2139a); sec. 208, 
Pub. L. 95-372, 92 Stat. 668 (43 U.S.C. 1354); Pub. L. 96-72, 93 
Stat. 503 (50 U.S.C. App. 2401 et seq.), as amended; sec. 125, Pub. 
L. 99-64, 99 Stat. 156 (46 U.S.C. 466c); Pub. L. 102-484, 106 Stat. 
2575 (22 U.S.C. 6004); E.O. 11912 of April 13, 1976 (41 FR 15825, 
April 15, 1976); E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 
1977), as amended; E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 
1978); E.O. 12214 of May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 
12851 of June 11, 1993 (58 FR 33181, June 15, 1993); E.O. 12867 of 
September 30, 1993 (58 FR 51747, October 4, 1993); E.O 12918 of May 
26, 1994 (59 FR 28205, May 31, 1994); E.O. 12924 of August 19, 1994 
(59 FR 43437 of August 23, 1994); E.O. 12938 of November 14, 1994 
(59 FR 59099 of November 16, 1994); and Notice of August 15, 1995 
(60 FR 42767).

PART 773--[AMENDED]

    3. Section 773.9 is amended by:
    i. Revising paragraph (a)(1);
    ii. Revising the phrase ``ECCN 1C60B or 1C64E'' or ``ECCNs 1C60C or 
1C64E'' to read ``ECCN 1C60C'' in the following paragraphs:
    A. (f)(1)(iv), last sentence;
    B. (f)(2)(i)(B), last sentence; and
    C. (i)(2)(vii), last sentence; and
    iii. Revising the notice at the end of paragraph (l) to read as 
follows:


Sec. 773.9  Special Chemical License.

    (a) * * *
    (1) Precursor and intermediate chemicals controlled under ECCN 
1C60C; and
* * * * *
    (l) * * *

    These commodities were authorized for export from the United 
States under a Special Chemical License procedure on the condition 
that they may not be reexported without prior approval from the 
United States authorities. This prior approval is not required for 
reexports to Argentina, Australia, Austria, Belgium, Canada, Czech 
Republic, Denmark, Finland, France, Germany, Greece, Hungary, 
Iceland, Ireland, Italy, Japan, Luxembourg, the Netherlands, New 
Zealand, Norway, Poland, Portugal, Romania, Slovak Republic, Spain, 
Sweden, Switzerland, and the United Kingdom.
* * * * *

PART 778--[AMENDED]

    4. Section 778.8 is amended by revising:
    i. paragraph (a)(1) introductory text;
    ii. paragraph (a)(1)(i);
    iii. paragraph (a)(5)(i);
    iv. paragraph (a)(5)(iv)(B);
    v. paragraph (a)(5)(v), to read as follows:


Sec. 778.8  Chemical precursors and biological agents, and associated 
equipment, software, and technology.

    (a) * * *
    (1) Chemicals identified in ECCN 1C60 require a validated license 
for export from the United States to all destinations except Argentina, 
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, 
France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, 
Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, 
Romania, Slovak Republic, Spain, Sweden, Switzerland, and the United 
Kingdom.
    (i) A validated license is required for chemical mixtures 
containing any 

[[Page 54033]]
chemicals identified in ECCN 1C60. See Note 2 of ECCN 1C60 and ECCN 
1C95 on the Commerce Control List (Sec. 799.1 of this subchapter) for 
further details on the concentrations of chemicals that require a 
validated license.
* * * * *
    (5) * * *
    (i) General License GTDU, as authorized in ECCN 1E60C, is not 
available for technical data for the production of chemical precursors 
described in paragraph (a)(1) of this section, except to Argentina, 
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, 
France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, 
Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, 
Romania, Slovak Republic, Spain, Sweden, Switzerland, and the United 
Kingdom;
* * * * *
    (iv) * * *
    (B) This prohibition on use of General License GTDU, as authorized 
in ECCN 1E60C, does not apply to exports to Argentina, Australia, 
Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, 
the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak 
Republic, Spain, Sweden, Switzerland, and the United Kingdom.
    (v) General License GTDU, as authorized in ECCN 1D60C, is available 
only for process control software that is specifically configured to 
control or initiate the production of chemical weapons precursors 
controlled by ECCN 1C60 and only to Argentina, Australia, Austria, 
Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, 
Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, the 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak 
Republic, Spain, Sweden, Switzerland, and the United Kingdom.
* * * * *
    5. Section 778.9 is amended by revising paragraph (c) to read as 
follows:


Sec. 778.9  Activities of U.S. persons.

* * * * *
    (c) No U.S. person shall, without a validated license or other 
authorization by BXA, participate in the design, construction, or 
export of a whole plant to make chemical weapons precursors identified 
in ECCN 1C60, in countries other than Argentina, Australia, Austria, 
Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, 
Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, the 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak 
Republic, Spain, Sweden, Switzerland, and the United Kingdom.
* * * * *
    6. Supplement No. 3 to Part 778 (formally reserved) is added to 
read as follows:

Supplement No. 3 to Part 778--Chemical Mixtures: De Minimis Exceptions 
Examples

    This supplement contains examples on applying the de minimis 
exceptions for chemical mixtures containing precursor and 
intermediate chemicals controlled under ECCN 1C60.
    In ECCN 1C60, Note 2, paragraphs (c) and (d) within the Mixtures 
Exemptions state that a validated license is required when at least 
one of the listed chemicals constitutes more than 10% or 25%, 
respectively, of the weight of the mixture on a solvent free basis.

Example One

    A mixture contains the following components:

90% polymer polyol (a liquid raw material used to make polyurethane 
polymers)
10% Australia Group (AG)-controlled chemical eligible for 25% de 
minimis exemption

    Note: The polymer does not dissolve the AG-controlled chemical.

    In this example, the polymer polyol does not dissolve the AG-
controlled chemical (the only other component of the mixture). 
Therefore, the polyol is NOT considered a solvent, and the 
concentration of the polymer polyol is included in the concentration 
calculation. As a result, the AG-controlled chemical's concentration 
is 10% when calculated on a solvent-free basis (.10/1.00). 
Accordingly, this concentration is below the threshold concentration 
of 25% applicable to specific AG-controlled chemicals under the 
chemical mixtures rule and can be exported under the provisions of 
general license G-DEST to all destinations except Iran, Syria, and 
Country Groups S and Z.
    To determine the classification of this mixture, it is necessary 
to determine whether the polymer is capable of functioning as a 
solvent for the other components of the mixture. If the polymer 
polyol is capable of functioning as a solvent for the controlled AG 
chemical, then the polymer component is omitted from the 
concentration calculation. If the polymer polyol is not capable of 
functioning as a solvent for the AG chemical, then the polymer 
component is included in the concentration calculation.

Example Two

    An automotive coolant (antifreeze) is a mixture of the following 
components:

75% ethylene glycol
10% additive package
15% water

    Note: The ``additive package'' contains an AG-controlled 
chemical that is eligible for the 10% de minimis exemption. This 
chemical is added as a stabilizer and represents 9% of the total 
mixture. The remaining components of the additive package are 
various dyes and stabilizers that represent 1% of the total mixture. 
Ethylene glycol serves as the basic functional ingredient that 
prevents the engine block from freezing, and does not dissolve the 
other components of the mixture. The water is added to keep the 
mixture in solution.

    To determine if this mixture requires an individual validated 
license (IVL) it is necessary to calculate the concentration of the 
AG-controlled chemical on a solvent-free basis. Since the water 
dissolves all of the other components of the mixture, water is 
considered a ``solvent'' and the quantity of water present is not 
included in the calculation of the AG-chemical concentration. 
Consequently, the concentration of the AG chemical is approximately 
11% (.09/.85), and the mixture is classified under ECCN 1C60C. 
Accordingly, since this concentration is above the threshold 
concentration of 10% applicable to this category of AG-controlled 
chemical under the chemical mixtures rule, an IVL is required to all 
destinations except AG member countries.

Example Three

    A pesticide formulation consists of an AG-controlled chemical 
that is eligible for the 25% de minimis exemption, and an active 
ingredient that is not AG-controlled. The formulation is diluted 
with water to allow safe, effective, and economic application. The 
resulting mixture is 15% AG chemical, 40% active ingredient and 45% 
water. Although the water is added as a diluent, it dissolves the 
other components of the mixture.
    Since the water dissolves all components in the mixture, it is 
considered a solvent even though it was added as a diluent. The 
percent concentration of the AG-controlled chemical calculated on a 
solvent free basis is .15/.55 = 27%, and the mixture is therefore 
classified under ECCN 1C60C. Accordingly, since this concentration 
is above the threshold concentration of 25% applicable to this 
category of AG-controlled chemicals under the chemical mixtures 
rule, an IVL is required to all destinations except AG member 
countries.

Example Four

    A mixture contains the following components:

10% water
22% Chemical A
21% Chemical B
20% Chemical C
19% Chemical D
8% Chemical E

    Note: The water is added to dissolve the other components of the 
mixture. Chemicals A, B, C, and D are AG-controlled chemicals each 
eligible for 25% de minimis exemption. Chemical E is an AG-
controlled chemical eligible for 10% de minimis exemption.

    In this example, water is considered a solvent since it 
dissolves all components in the mixture. Therefore, the quantity of 
water present in the mixture is not included in calculating the 
concentrations of the controlled chemicals on a solvent-free basis. 
The concentrations of the controlled

[[Page 54034]]

chemicals are as follows: Chemical A 24%; Chemical B 23%; Chemical C 
22%; Chemical D 21%; Chemical E 9%. It is important to note that in 
this example, even though the cumulative amount of the mixture (90%) 
consists of controlled chemicals, each one of the controlled 
chemicals is below the de minimis level for its category. 
Consequently, this mixture can be exported under the provisions of 
general license G-DEST to all destinations except Iran, Syria, and 
Country Groups S and Z.

    7. Supplement No. 5 to Part 778 (Dual-Use Chemical and Biological 
Equipment; Regions, Countries, and Other Destinations), is amended by 
removing ``Romania'' from the list of countries.

PART 799--[AMENDED]

Supplement No. 1 to Sec. 799.1 [Amended]

    8. In Category 1 (Materials), ECCN 1C60C, 1D60C and 1E60C are 
amended by revising the Requirements section, and a new ECCN 1C95F is 
added after 1C94F, respectively, as follows:

1C60C  Precursor and Intermediate Chemicals Used in the Production of 
Chemical Warfare Agents and Certain Mixtures Containing Such Chemicals

Requirements

    Validated License Required: QSTVWYZ, except Argentina, 
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, 
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, 
Japan, Luxembourg, the Netherlands, New Zealand, Norway, Poland, 
Portugal, Romania, Slovak Republic,
Spain, Sweden, Switzerland, and the United Kingdom. (see Note 4)

    Unit: Liters or kilograms as appropriate
    Reason for Control: CB
    GLV: $0
    GCT: No
    GFW: No

    Notes: 1. Sample Shipments: Certain sample shipments of 
chemicals controlled under ECCN 1C60 may be made without a validated 
license, as provided by the following rules:
    a. The following chemicals are not eligible for sample 
shipments: 0-Ethyl-2-diisopropylaminoethyl methylphosphonite (QL) 
(C.A.S. #57856-11-8), Ethylphosphonyl difluoride (C.A.S. #753-98-0), 
and Methylphosphonyl difluoride (C.A.S. #676-99-3).
    b. The following countries are not eligible to receive sample 
shipments: Iran, Syria, and Country Groups S and Z.
    c. Sample Shipments: a validated license is not required for 
sample shipments when the cumulative total of these shipments does 
not exceed a 55-gallon container or 200 kg of each chemical to any 
one consignee per calendar year. Multiple sample shipments, in any 
quantity, not exceeding the totals indicated in this paragraph may 
be made under General License G-DEST, subject to the stipulations of 
this Note 1.
    d. The exporter is required to submit a quarterly written report 
for shipments of samples made under this Note 1. The report must be 
on company letterhead stationery identifying the chemical(s), 
Chemical Abstract Service Registry (C.A.S.) number(s), 
quantity(ies), the ultimate consignee's name and address, and the 
date exported. The report should be sent to the Bureau of Export 
Administration, Room 2705, Washington, DC 20230, clearly marked 
``Report of Sample Shipments of Chemical Precursors'' at the top of 
the first page and on the envelope.
    2. Mixtures: Mixtures that contain certain concentrations of 
precursor and intermediate chemicals are subject to the following 
licensing requirements under this ECCN:
    a. A Validated License is required, regardless of the 
concentrations in the mixture, for the following chemicals: 0-Ethyl-
2-diisopropylaminoethyl methylphosphonite (QL) (C.A.S.#57856-11-8), 
Ethylphosphonyl difluoride (C.A.S.#753-98-0) and Methylphosphonyl 
difluoride (C.A.S.#676-99-3);
    b. A Validated License is required when at least one of the 
following chemicals constitutes more than 10 percent of the weight 
of the mixture on a solvent free basis: Arsenic trichloride 
(C.A.S.#7784-34-1), Benzilic acid (C.A.S.#76-93-7), Diethyl 
ethylphosphonate (C.A.S.#78-38-6), Diethyl methylphosphonite 
(C.A.S.#15715-41-0), Diethyl-N,N-dimethylphosphoroamidate 
(C.A.S.#2404-03-7), N,N-Diisopropyl-beta-aminoethane thiol 
(C.A.S.#5842-07-9), N,N-Diisopropyl-2-aminoethyl chloride 
hydrochloride (C.A.S.#4261-68-1), N,N-Diisopropyl-beta-aminoethanol 
(C.A.S.#96-80-0), N,N-Diisopropyl-beta-aminoethyl chloride 
(C.A.S.#96-79-7), Dimethyl ethylphosphonate (C.A.S.#6163-75-3), 
Dimethyl methylphosphonate (C.A.S.#756-79-6), Ethylphosphonous 
dichloride [Ethylphosphinyl dichloride] (C.A.S.#1498-40-4), 
Ethylphosphonus difluoride [Ethylphosphinyl difluoride] (C.A.S.#430-
78-4), Ethylphosphonyl dichloride (C.A.S.#1066-50-8), 
Methylphosphonous dichloride [Methylphosphinyl dicloride] 
(C.A.S.#676-83-5), Methylphosphonous difluoride [Methylphosphinyl 
difluoride] (C.A.S.#753-59-3), Methylphosphonyl dichloride 
(C.A.S.#676-97-1), Pinacolyl alcohol (C.A.S.#464-07-3), 3-
Quinuclidinol (C.A.S.#1619-34-7), and Thiodiglycol (C.A.S.#111-48-
8); (Related ECCN: 1C95F)
    c. A Validated License is required when at least one of all 
other chemicals in the List of Items Controlled constitutes more 
than 25 percent of the weight of the mixture on a solvent free basis 
(related ECCN: 1C95F); and
    d. A Validated License is not required under this entry for 
mixtures when the controlled chemical is a normal ingredient in 
consumer goods packaged for retail sale for personal use. Such 
consumer goods are controlled by ECCN 1C96G.
    e. Calculation of concentrations of AG-controlled chemicals.
    1. Usual Commercial Purposes. In calculating the percentage of 
an AG controlled chemical in a mixture (solution), any other 
chemical must be excluded if it was not added for usual commercial 
purposes, but was added for the sole purpose of circumventing the 
Export Administration Regulations.
    2. ``Solvent Free Basis Requirement.'' When calculating the 
percentage, by weight, of components in a chemical mixture, you must 
exclude from the calculation any component of the mixture that acts 
as a solvent.
    3. Solvent--For purposes of this ECCN ``A substance capable of 
dissolving another substance to form a uniformly dispersed mixture 
(solution)''.
     Solvents are liquids at standard temperature and 
pressure (STP).
     In no instance is an AG controlled chemical considered 
a ``solvent''.
     All ingredients of mixtures are expressed in terms of 
weight.
     The solvent component of the mixture converts it into a 
solution.
    3. Compounds: A validated license is not required under this 
entry for chemical compounds created with any chemicals identified 
in this ECCN 1C60, unless those compounds are also identified in 
this entry.
    4. Special Chemical License Available: See Sec. 773.9 of this 
subchapter.

    Technical Notes: 1. For purposes of this ECCN 1C60, a 
``mixture'' is defined as a solid, liquid or gaseous product made up 
of two or more components that do not react together under normal 
storage conditions.
    2. The scope of this control applicable to Hydrogen Fluoride 
(Item 25 in List of Items Controlled) includes its liquid, gaseous, 
and aqueous phases, and hydrates.
    3. All de minimis exclusions of this entry extend to all 
mixtures including those that contain no solvents.
    4. A Solvent is defined as a substance capable of dissolving 
another substance to form a uniformly dispersed mixture (solution). 
For examples and clarification of the term ``solvent free'' basis, 
see Supplement No. 3 to Part 778.
* * * * *

1C95F  Mixtures Containing Precursor and Intermediate Chemicals Used in 
the Production of Chemical Warfare Agents That Are Not Controlled by 
ECCN 1C60

Requirements

Validated License Required: SZ, Iran
Unit: Liters or kilograms as appropriate
Reason for Control: FP
GLV: $0
GCT: No
GFW: No

    Note: For calculation of de minimis quantities of AG-controlled 
chemicals in mixtures, see ECCN 1C60 and Supplement 3 to Part 773.
* * * * *

1D60C  Software for Process Control That is Specifically Configured To 
Control or Initiate Production of the Chemical Precursors Controlled by 
ECCN 1C60

Requirements

    Validated License Required: QSTVWYZ, except Argentina, 
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, 
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, 
Japan, Luxembourg, the Netherlands, New Zealand, Norway, Poland, 
Portugal, Romania, Slovak Republic, 

[[Page 54035]]
Spain, Sweden, Switzerland, and the United Kingdom.
    Unit: $ value
    Reason for Control: CB
    GTDR: No
    GTDU: Only to countries listed above as not subject to validated 
license
* * * * *

1E60C  Technology for the Production and/or Disposal of Chemical 
Precursors Described in ECCN 1C60C, and Technology as Described in the 
List Below for Facilities Designed or Intended to Produce Chemicals 
Described in ECCN 1C60

Requirements

    Validated License Required: QSTVWYZ, except Argentina, 
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, 
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, 
Japan, Luxembourg, the Netherlands, New Zealand, Norway, Poland, 
Portugal, Romania, Slovak Republic, Spain, Sweden, Switzerland, and 
the United Kingdom.
    Reason for Control: CB
    GTDR: No
    GTDU: Only to countries listed above as not subject to validated 
license
* * * * *
    9. In Supplement No. 1 to Sec. 799.2, the introductory text to 
Interpretation 23 is revised to read as follows:

Supplement No. 1 to Sec. 799.2--Interpretations

* * * * *

Interpretation 23: Precursor Chemicals

    Following is a list of chemicals controlled by ECCN 1C60C that 
includes their Chemical Abstract Service Registry (C.A.S.) number 
and synonyms (i.e., alternative names). These chemicals require a 
validated license to all countries except Argentina, Australia, 
Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, 
Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, 
Romania, Slovak Republic, Spain, Sweden, Switzerland, and the United 
Kingdom.
* * * * *
    Dated: October 13, 1995.
Iain S. Baird,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 95-25900 Filed 10-18-95; 8:45 am]
BILLING CODE 3510-DT-P