[Federal Register Volume 61, Number 58 (Monday, March 25, 1996)]
[Rules and Regulations]
[Pages 12714-13041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4173]



      

[[Page 12713]]

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Part II





Department of Commerce





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Bureau of Export Administration



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15 CFR Part 730, et al.



Export Administration Regulation; Simplification of Export 
Administration Regulations; Final Rule

  Federal Register / Vol. 61, No. 58 / Monday, March 25, 1996 / Rules 
and Regulations  

[[Page 12714]]


DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 730, 732, 734, 736, 738, 740, 742, 744, 746, 748, 750, 
752, 754, 756, 758, 760, 762, 764, 766, 768, 770, 772, and 774, 
768A, 769A, 770A, 771A, 772A, 773A, 774A, 775A, 776A, 777A, 778A, 
779A, 785A, 786A, 787A, 788A, 789A, 790A, 791A, 799A

[Docket No. 950407094-6022-02]
RIN 0694-AA67


Export Administration Regulation; Simplification of Export 
Administration Regulations

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Interim rule.

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SUMMARY: This interim rule restructures and reorganizes the Export 
Administration Regulations (EAR), the regulatory regime through which 
the Bureau of Export Administration imposes export and reexport 
controls on those items and activities within its jurisdiction. This 
interim rule clarifies the language of the EAR, simplifies their 
application, and generally makes the export control regulatory regime 
more user-friendly.

DATES: Effective Dates: This interim rule is effective April 24, 1996, 
except part 752, which shall be effective March 25, 1996. Removal of 
newly designated Sec. 771A.25(d) shall be effective March 25, 1996. 
Removal of newly designated parts 768A through 779A, 785A through 791A, 
and 799A will be effective November 1, 1996.

COMMENTS: Comments on this rule must be received on or before May 24, 
1996.

USE OF FORMS: On June 15, 1996 BXA will begin requiring applicants to 
submit certain new forms to implement this interim rule. The new Form 
BXA-748P, Multipurpose Application will be effective June 15, 1996. 
Before June 15, 1996 BXA will not accept Form BXA-748P. After June 15, 
1996 BXA will not accept existing Forms BXA-622P or BXA-699P. See 
SUPPLEMENTARY INFORMATION for guidance on which forms to use before 
June 15, 1996, and which forms to use after that date.

ADDRESSES: Written comments should be sent to Cecil Hunt, Deputy Chief 
Counsel for Export Administration, United States Department of 
Commerce, Bureau of Export Administration, Fourteenth Street and 
Constitution Avenue, N.W., Room 3839, Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT: Larry E. Christensen, Director, 
Regulatory Policy Division, Bureau of Export Administration, (202) 482-
2440.

SUPPLEMENTARY INFORMATION:

Background

    On September 30, 1993, the Secretary of Commerce submitted to the 
Congress a report of the Trade Promotion Coordinating Committee (TPCC), 
entitled Toward a National Export Strategy. The report included the 
following among its goals:

    Undertake a comprehensive review of the Export Administration 
Regulations to simplify, clarify, and make the regulations more 
user-friendly.

    In November 1993, BXA organized a Task Group, drawn from several of 
its offices, to carry out the TPCC recommendation. The Task Group 
launched its review project by publishing an advance notice of proposed 
rulemaking (ANPRM) in the Federal Register on February 10, 1994 (59 FR 
6528). This notice was designed to solicit comments from industry and 
the interested public. The ANPRM asked for suggestions concerning 
improvements BXA could make to the EAR and described several specific 
issues on which BXA was particularly interested in receiving public 
input.
    Over seven months during the development of a proposed rule with 
request for comments that was published in the Federal Register on May 
11, 1995, titled ``Export Administration Regulations; Simplification of 
Export Administration Regulations'' (60 FR 25268) (hereafter referred 
to as proposed rule), BXA shared four discussion packages with and 
sought comments from the Regulations & Procedures Technical Advisory 
Committee (RPTAC), an advisory committee consisting of industry 
representatives intimately familiar with the private sector's role in 
using the EAR. The packages were also made available to other 
interested members of the public, with the last two being made 
available electronically on FedWorld. The four discussion packages were 
dated August 2, 1994, September 29, 1994, January 12, 1995, and 
February 28, 1995.
    The May 11 proposed rule reflected several new features based upon 
the comments received from the public pursuant to the ANPRM, and the 
RPTAC, and BXA's own assessment of how the EAR could be improved. Such 
features include:
     No license or other authorization would be required for 
any transaction under BXA jurisdiction unless the regulations 
affirmatively state the requirement. (Existing regulations state that 
all exports are prohibited unless an applicable general license has 
been established or a validated license or other authorization has been 
granted by BXA.)
     The terms ``general'' license and ``validated'' license 
would be dropped. The term ``license'' would be used to refer only to 
authorization issued by BXA upon application. The proposed regulations 
would convert the many existing general licenses into a smaller number 
of ``exceptions'' to require the obligation to seek a license when the 
Commerce Control list indicates that the particular item going to the 
stated country generally requires a license.
     The parts of the EAR would be arranged to give the reader 
a logical path to follow.
     The affirmative statements of the need to obtain a 
license, scattered throughout various parts of the existing EAR, would 
be consolidated into ten general prohibitions and described in a 
separate part. One part would contain the license review policy for all 
list-based license requirements; another part would provide for the 
requirements and review policies of licenses based on the end-use or 
end-user involved in a proposed export or reexport; and the list-based 
license requirements would be contained in the Commerce Control List 
(CCL) indicating the reason for control and the Country Chart 
indicating the country scope of each reason for control.
     The Country Groups used in the existing regulations would 
be revised in favor of Groups which better reflect post-Cold War 
circumstances.
     The CCL would be redesigned to state the reasons for 
control more specifically within each Export Control Classification 
Number (ECCN).
     The redesigned CCL would be used in tandem with a new 
Country Chart that would indicate whether a license is required for any 
ECCN to any country in the world and the reason or reasons for control.
    Over 80 commenters responded to the proposed rule. Many commenters 
recommended that BXA take sufficient time to draft an interim rule to 
ensure ample opportunity to review and discuss with industry their 
comments on the May 11 proposed rule, and incorporate them into an 
interim rule. BXA has taken the time necessary to thoroughly review, 
analyze, and discuss industry comments on the proposed rule. In 
addition, BXA conducted 18 town-hall style fora (hereafter referred to 
as town-hall fora) that reached over 1,000 industry representatives, 
and met with the RPTAC and other interested

[[Page 12715]]
public to discuss their comments and concerns in more detail.
    Following is a detailed part-by-part description of this interim 
rule, and a review of comments received pursuant to the May 11 proposed 
rule:

Implementation

    This interim rule will become effective April 24, 1996; however, 
final compliance with this interim rule is not compelled until November 
1, 1996. During the period between the effective date and the final 
compliance date of this interim rule, you must comply with the 
provisions of either the existing Export Administration Regulations 
(EAR) (redesignated 15 CFR 768A through 799A by this interim rule) 
including any amendments thereto that are published in the Federal 
Register or the provisions of this interim rule including any 
amendments thereto that are published in the Federal Register.
    Notwithstanding the general effective date of this interim rule, 
the repeal of the importer statement requirement for General License 
GCT is effective immediately, and the Special Comprehensive License 
provisions in part 752 are effective immediately. For up to March 25, 
1997, holders of issued and outstanding special licenses may continue 
to use those special licenses according to their terms and conditions 
and according to the special license provisions of the existing EAR.
    The majority of the commenters requested a 90 day delayed effective 
date plus an additional six to twelve months during which one must 
comply with either the existing Export Administration Regulations or 
this interim rule. The cost of changes to internal information systems 
and the time to train personnel on the new system were the main reasons 
cited for requesting a delayed effective date and a transition period. 
Several large companies said that their computer systems will require 
substantial reprogramming for the new License Exception group symbols, 
the new Destination Control Statement (DCS), and the renumbering of 
entries on the Commerce Control List in part 774 to conform to the 
European Union numbering system.
    Some firms indicated that implementation costs would be reduced if 
they were allowed a span of time in which to implement the changes made 
by this interim rule. Costs would be higher if a single implementation 
date were required because their information systems departments would 
not have flexibility regarding scheduling and might be required to hire 
additional temporary employees or pay overtime. Many large firms cannot 
implement the computer changes on one given day. After receiving the 
above comments in writing and during the town-hall fora, BXA made 
additional contacts with several firms. All acknowledge that they can 
efficiently implement the changes required by this interim rule within 
six months. Since those discussions, BXA has determined to modify the 
Destination Control Statement (DCS) as noted below to closely following 
the existing DCS widely used by many firms. BXA is hopeful that this 
decision will further reduce the costs of implementation of this 
interim rule.
    BXA is sensitive to the costs of implementation, and that is the 
reason this interim rule provides for a rather long implementation 
period. Through this mechanism, BXA hopes to reduce the marginal costs 
of implementation by reducing necessary overtime, contracting, and 
training beyond that regularly scheduled. BXA will also assist the 
business community in training for this interim rule. BXA has already 
announced a substantial program to conduct training sessions around the 
United States to make it convenient for firms to train their personnel.
    The new Multipurpose Application Form, BXA-748P, will replace the 
Application for Export License (BXA-622P) and the Request for Reexport 
Authorization (BXA-699P). It will also serve as an application for the 
Special Comprehensive License. Additionally, the BXA-748P will 
accommodate Commerce Classification Requests, thus allowing item 
classifications to be handled electronically.
    BXA will not accept the new forms listed in this paragraph for 
applications and requests received before June 15. BXA will not accept 
existing forms listed in this paragraph for applications and requests 
received on or after June 15. The existing Form BXA-622P Application 
for Export License, existing Form BXA-685P, Request for Amendment 
Action, and existing Form BXA-699P, Request for Reexport Authorization 
will all be replaced by new Form BXA 748P, Multipurpose Application. 
The existing Form BXA-622P-A, Commodity Description Supplement will be 
replaced by new Form BXA-748P-A, Item Appendix. Existing Form 622P-B, 
End-user Supplement will be replaced by new Form 748P-B, End-user 
Appendix. Form BXA-6052P, Statement by Foreign Consignee in Support of 
Special License Application will be replaced by Form BXA-752P, 
Statement by Consignee in Support of Special Comprehensive License.
    Existing Form BXA-629P, Statement by Ultimate Consignee and 
Purchaser will be replaced by new Form BXA-711, Statement by Ultimate 
Consignee and Purchaser. However, Form BXA-629P may be used until 
November 1, 1996.
    Use of Existing Form BXA 686-P, Statement by Foreign Importer of 
Aircraft or Vessel Repair Parts and Form BXA 6026-P, Service Supply 
(SL) Statement by U.S. Exporter will be discontinued on March 25, 1996, 
because the Aircraft and Vessel Repair Station Procedure at Sec. 773A.8 
and the Service Supply (SL) Procedure at Sec. 773A.7 of the existing 
EAR will be replaced by the Special Comprehensive License in part 752 
of this interim rule.
    BXA will stop issuing BXA Form-648P, Notification of Delivery 
Verification Requirement on June 15, 1996. For licenses issued on or 
after that date, the delivery verification requirement will be printed 
on the license itself.

The Knowledge Standard

    One step is being taken in this interim rule that changes language 
in many parts of the EAR, but without changing the intended meaning. 
Several commenters noted that the proposed rule continued use in the 
EAR of differing expressions as to knowledge, such as ``know'' or 
``know or have reason to know''. Three commenters called for the 
removal of the term ``reason to know'' and one commenter requested a 
uniform adoption of ``know or have reason to know''. BXA has decided to 
adopt the term ``knowledge'' (together with variants, such as ``know'' 
or ``knowing'') as the standard usage and defines this term in the EAR. 
This definition is added to part 772--Definitions. Variants, such as 
``reason to believe'' are being retained in the EAR where they are used 
to follow statutory wording. This definition confirms the intention of 
BXA that ``know'' and terms such as ``know or have reason to know'' be 
given the same meaning and that this meaning include more than positive 
knowledge. This definition is not being applied to part 760--
Restrictive Practices and Boycotts, leaving the interpretation of such 
terms in this distinct part of the EAR to be independent of export 
control usage.

Part-by-Part Analysis

Part 730--General Information

    Part 730 provides a general introduction to the EAR. It is intended 
for the first-time reader and is not regulatory.
    Seven of the public comments referred to part 730. There was broad

[[Page 12716]]
support for the listing of other control agencies, together with 
telephone and fax numbers for obtaining information. Four commenters 
noted that similar information was provided in a supplement to the 
scope part of the proposed rule, with duplication and some 
inconsistency. BXA has eliminated that supplement and includes the 
agency information in this part 730. Three commenters requested that 
the listing be broadened, and noted the absence of reference to certain 
controls of other agencies listed in the existing EAR. This listing has 
been updated and extended. BXA is not, however, acting on requests to 
add more detailed information on controls administered by other 
agencies, nor on areas of possible overlap, as this would unduly 
complicate this brief introduction to the EAR.
    Three commenters called for combining part 730 with the Steps part 
in some way. BXA concluded that a merger of the two parts is not 
advisable, as the amount of detail needed in steps would obscure the 
more general introductory information offered in part 730. Many 
comments on the two parts called for flow charts and wiring diagrams. 
BXA has recently received authorization from the Office of the Federal 
Register to include such additional aids, and BXA will develop those 
materials for inclusion in the EAR at a later date.
    Two commenters questioned the basic, non-regulatory, approach taken 
in part 730, citing such elements as the Sec. 730.6 reference to the 
benefits from multilateral controls and the Sec. 730.8 explanation of 
why the EAR are lengthy and detailed. BXA continues to believe that 
this kind of introduction to the EAR will be helpful to persons new to 
the field.

Part 732--Steps

    By cross-references to the relevant provisions, part 732 describes 
the suggested steps for you to determine applicability of (1) the scope 
of the EAR described in part 734, (2) each of the general prohibitions 
in part 736, (3) the License Exceptions in part 740, and (4) other 
requirements such as clearing the U.S. Customs Service, keeping 
records, and completing license applications. This part 732 describes 
the organization of the EAR, informs you of the relationship among the 
parts and provisions, and describes the appropriate order in which to 
consider the various provisions of the EAR by cross-referencing those 
provisions. Supplement No. 1 to this part 732, contains the ``Know Your 
Customer'' Guidance, which has been moved from part 744--Control 
Policy--End-user and End-use Based Control. In this interim rule, BXA 
has also added examples of Red Flags referred to in the ``Know Your 
Customer'' Guidance.
    Over thirty commenters referred to the part on steps in the 
proposed rule, and all but one supported the inclusion of steps to 
guide the reader. Of these commenters, more than half stated that the 
steps part should be relocated so that it could serve as a type of 
road-map in the use of the entire EAR. The proposed rule provided for 
steps at part 736 after the parts on scope and general prohibitions. 
BXA agrees that the steps part is more useful if relocated closer to 
the beginning of the EAR. Therefore, in this interim rule, the steps 
part is renumbered as part 732; and it precedes the part on scope that 
is renumbered as part 734 and the part on prohibitions that is 
renumbered as part 736.
    About one quarter of the commenters on this part urged some type of 
restructuring or reordering of the steps within the part; however, the 
comments were varied. Based upon these written comments and a 
substantial number of oral comments made during the town-hall fora, BXA 
believes that it is useful to organize the steps in categories 
regarding the scope of the EAR, the ten general prohibitions, the 
License Exceptions, and additional requirements such as keeping 
records, documentation for clearing the U.S. Customs Service, and 
completing license applications. In addition, one commenter urged that 
the steps regarding prohibitions at part 736 make clear the distinction 
between the first three prohibitions that are shaped by product 
parameters on the Commerce Control List versus the last seven 
prohibitions that address certain types of activities without regard to 
the product parameters on the Commerce Control List. Another common 
suggestion was to give greater prominence and clarity to the 
determination of the proper ECCN for items, a process referred to as 
classification. This interim rule adopts those recommendations.
    One commenter suggested that the steps part in the proposed rule 
included too many cross-references to the other parts and required the 
reader to flip too many pages. Several other commenters recommended 
additional cross-references in the EAR. BXA believes that the part on 
steps should continue to contain cross-references for fundamental 
reasons. The part on steps is not a substitute for the language of 
other parts of the EAR and the part on steps would be much too long if 
it contained a complete explanation or repetition of every other 
provision of the EAR. Rather, it is a type of road-map, guide, or 
written decision tree that helps the reader understand the order in 
which to read the various provisions and to determine which provisions 
are relevant to a given transaction or activity. By this means, the 
part on steps serves the purpose of describing the relationship among 
the provisions of the EAR, something that was not done in the EAR 
before the proposed rule. When these steps are followed in the proper 
order, the reader will consider those provisions of the EAR necessary 
to determine his or her rights and duties.
    It would be impossible to develop a useful series of steps without 
use of cross-references to the various provisions of the EAR; however, 
BXA is sensitive to a reader's understandable desire for steps that may 
be read with an easy flow and with no more cross-referencing than 
necessary to specify the language that creates regulatory rights and 
obligations. To this end, where possible, we have inserted brief 
explanatory references that give the reader an indication of the 
substance of the referenced provision. One comment made often by the 
public is that the steps part must contain guidance and not create 
additional regulatory duties. BXA agrees that part 732 is not 
controlling for purposes of describing the requirements of the EAR; the 
parts of the EAR referenced in the steps are controlling. For this 
reason, part 732 must reference the regulatory provisions in the other 
parts of the EAR.
    An organization of trade associations, supported by several other 
commenters, suggested several additional drafting changes to improve 
the part on steps. Nearly all of those recommendations are included in 
this interim rule.

Part 734--Scope

    This part establishes the rules for determining whether 
commodities, software, technology, software and activities of U.S. and 
foreign persons are subject to the EAR. ``Subject to the EAR'' is a 
term used to identify the items and activities that BXA regulates under 
the EAR. Those items and activities not so identified are not regulated 
under the EAR.
    The term ``subject to the EAR'' does not imply that a license is 
required for any particular item or activity. Licensing requirements 
are spelled out in other parts of the EAR. The term does define the 
bounds of the authority that BXA has exercised under the EAR. The term 
is particularly useful to define the limits of the recordkeeping 
requirements, certain denial orders, and the end use and end user 
obligations related to proliferation controls.

[[Page 12717]]

    This part also provides certain key terms and principles used 
throughout this interim rule. These include definitions for the terms 
``export'' and ``reexport.'' A comprehensive listing of definitions is 
included in part 772.
    In addition to a change in designation from part 732 in the 
proposed rule to part 734 in this interim rule, this interim rule makes 
substantial changes in part 734 as a result of comments received on the 
proposed rule. BXA received 31 comments on this part. BXA has adopted 
many of the recommendations contained in the public comments and they 
are reflected in the interim rule.
    Section 734.1 has been substantially revised. The proposed rule 
included a list of all the contents to part 734 with specificity. One 
commenter urged that this listing amounted to a table of contents and 
recommended deletion. This interim rule follows this recommendation 
and, and includes an introduction that explains the contents of this 
part and how it fits into the overall structure of the EAR.
    Certain commenters recommended that definitions be included in part 
772, Definitions, rather than in this part. This interim rule removes 
the definitions for the terms ``item'' and ``you'', and moves them to 
part 772. Because the terms ``export'' and ``reexport'' are so key to 
the EAR, these terms have been retained in this section, with certain 
modifications. Section 732.2(d) of the proposed rule defined exports 
and reexports of technology and software, but did not include a 
definition of exports and reexports of commodities. This interim rule 
amends the definition of ``export'' and ``reexport'' to apply to 
commodities, technology, and software.
    A number of commenters also noted that, as written in the proposed 
rule, the reexport in a foreign country of technology by release by one 
foreign national to another foreign national could be read to include 
release of foreign-origin technology, with no United States nexus. This 
interim rule limits this provision to ``items subject to the EAR'' and 
thereby limits the provision to U.S.-origin technology.
    This interim rule adds three additional provisions to part 734. 
Section 734.2(d)(5) reflects the principle that exports that will 
transit a country on their way to a third country or are intended to be 
reexported to a third country are deemed under the EAR to be exports to 
the third country. This principle was not included in the proposed 
rule, except as it relates to Canada (Sec. 732.12 of the proposed 
rule). Section 734.2(d)(6) reflects the principle that appeared in 
Sec. 732.15 of the proposed rule that an export to a territory, 
possession, or department of a country is deemed under the EAR to be an 
export to that country. Finally Sec. 734.2(d)(7) clarifies that 
shipments among the states of the United States and its territories, 
dependencies, and possessions do not constitute exports or reexports.
    A significant number of commenters indicated that the provision 
regarding Canada in Sec. 732.15 of the proposed rule was misleading and 
tended to confuse the distinction between the scope of the EAR and 
licensing requirements with respect to Canada. BXA agrees, and this 
interim rule omits this provision. The minimal number of instances 
where licenses are required for Canada is reflected on the CCL and does 
not need to be recited in this part. As noted above, the in-transit and 
intended reexport principles contained in the Canada provision are 
retained in this interim rule and are made applicable to all 
destinations. Finally, any License Exceptions that apply to Canada are 
reflected in part 740, License Exceptions.
    In the proposed rule, BXA invited comments on the implementation of 
a de minimis rule for software and technology. In particular, BXA said 
that we were considering a requirement for a one-time report on 
calculations under the de minimis rule. Throughout the comment period, 
BXA made clear at the town-hall fora that there are three criteria of 
concern in carrying out the proposal without a reporting requirement. 
First, for transfers between related parties, the export price of the 
software or technology exported from the United States must reflect an 
arms-length price or fair market value. Second, estimates of future 
sales of foreign-made software must be reasonable. Third, selection of 
the scope of foreign technology for measuring U.S.-content must be 
reasonable.
    BXA sought comments and suggestions on a one-time report. This was 
to determine how to avoid the potential misuse of the above criteria 
without requiring a one-time report. BXA also sought comments on 
whether the calculations should be made only under United States-based 
generally accepted accounting principles. From the outset, BXA 
concluded that strict accounting standards would be useful to prevent 
misuse of the rule through unreasonably low transfer prices for U.S. 
software or technology transferred to related parties. BXA also 
believed there is no need to create a new U.S. accounting standard for 
implementation of this rule.
    No commenter offered a solution to avoid misuses in the choice 
amortization assumptions for software and the selection of an 
appropriate universe to measure U.S.-content in foreign commingled 
technology. All comments on the report opposed its requirement. 
Commenters supported the rule with the hope that the de minimis 
exclusion might be granted by BXA without requiring a report. However, 
many of these same firms acknowledge that they and foreign parents, 
subsidiaries and customers will invariably make de minimis calculations 
on valuation assumptions most likely to result in a finding that U.S. 
content is below the relevant de minimis level. The tenor of the 
comments also suggests that most commenters did not fully appreciate 
that the de minimis relief could not likely be granted without either a 
one-time report or some other means to avoid the potential misuses of 
the criteria.
    Some commenters called the report a burden almost as heavy as the 
license requirement. Some of those commenters stated expresses a belief 
that the existing rule is simply not enforced and likely is not 
enforceable. They also concluded that compliance with the existing 
commingled rule is weak. However, some commenters acknowledged that 
without a report requirement in this interim rule, they would 
nonetheless submit advisory requests before relying on the de minimis 
exclusions. Such advisory requests would require the same information 
as the report required by this interim rule. Therefore for such 
companies, the report requirement of this interim rule does not add 
costs for use of the relief granted by this interim rule.
    Almost all foreign commenters on the de minimis rule opposed a 
requirement for U.S. accounting standards. They argued that they should 
be permitted to use their home-country accounting standards and that 
use of U.S. accounting standards would be too costly.
    BXA has determined to require a one-time report and to permit 
various accounting standards so long as the export price is not 
depreciated or otherwise reduced by accounting conventions. With the 
requirement of a one-time report, there is far less need for a single, 
strict accounting standard.
    The report will require a description of the nature and export 
price of the item exported from the United States, the estimate of 
future software sales in units and value along with the basis for those 
estimates within the relevant market category, and a description of the 
technology and its value for

[[Page 12718]]
purposes of determining the U.S.-content of technology. The report will 
not require information regarding destinations and end-users for 
reexport.
    BXA has concluded after interagency consultations and review of all 
the comments that the so-called amortization problem exists for 
software and does not exist for commodities. Several commenters have 
asked why.
    Unlike parts incorporated into end products, the cost of U.S. 
software code will be attributed or allocated to the future sales of 
foreign-made software incorporating the U.S. code. In making this 
calculation for foreign software, you must make an estimate of future 
software sales of that software if it is commingled with or 
incorporated with the U.S. code. Unless there is a one-time report 
revealing the assumptions of such calculations, foreign firms may 
misuse the de minimis rule and make unrealistic assumptions of large 
future sales. Such a misuse can result in U.S.-content that is unfairly 
estimated to be below the de minimis level.
    BXA has concluded after interagency consultations and review of all 
the comments that the so-call universe problem exists for technology 
and not for commodities. Several commenters have asked why.
    There is the risk that foreign firms will select excessively large 
categories of foreign technology for division into the U.S.-origin 
technology content. There is no regulatory criteria or standard that is 
sufficient to describe the scope of foreign technology that must be 
divided into the U.S. technology to determine the percentage of U.S.-
content. The possible choices of a universe by the reexporter are many 
and varied.
    Some commenters wanted BXA to select one U.S. transfer pricing 
standard such as the standard of the Internal Revenue Service found in 
section 482 of the Internal Revenue Code. One software producer 
indicated that it will have very difficult decisions to make in the 
calculation of U.S.-content for purposes of foreign-made software and 
asked BXA how it would be done. In this interim rule, we indicate that 
accepted accounting standards such as section 482, its implementing 
rules, and related ruling provide one option the exporter or reexport 
may follow. The Organization for Economic Cooperation and Development 
(OECD) is considering uniform transfer pricing rules, and such 
international standards would present an attractive option in the 
future. However, it will likely be at least a year before they put such 
OECD standards in place. Other commenters said that their firms do not 
maintain adequate records to perform calculations of U.S.-content. Of 
course, for such firms, any value-based de minimis rule will not 
relieve existing burdens regardless of the report requirement.
    For decades, all reexport controls under the EAR extended to 
foreign software and technology incorporating any level of U.S.-
content. BXA refers to this as the commingled rule. In 1988, BXA 
proposed giving some relief from the commingled rule with a type of 
shifting of presumptions regarding country of origin after a period of 
time. With one exception, commenters opposed that proposed rule and 
urged a value-based de minimis exclusion. BXA addressed the issue in 
its February 1994 proposed renewal of the Export Administration Act. 
That proposal would have compelled a de minimis exclusion from the 
commingled rule and reserved the authority of the Executive Branch to 
require a one-time report.
    BXA believes that it is appropriate to put reasonable limits on the 
reach of U.S. reexport controls for foreign-made software and 
technology. This is to recognize the sensitivities of other nations and 
to put some outer limits on the obligations of foreign firms doing 
business with U.S. firms. However, it is not the purpose of this 
exercise to eliminate reexport controls on software and technology. 
Reexport controls remain tools of the EAR to prevent diversion contrary 
to vital national security, nonproliferation, and foreign policy 
interests of the United States.
    BXA understands that some foreign firms will benefit from the 
relief offered in this interim rule and will use this relief by filing 
the necessary report. For such firms, the de minimis rule and related 
report is not a new licensing requirement. Rather, it is a means for 
BXA to assure that the above described three criteria are not misused 
in a given set of calculations and assumptions. The report is required 
under a ``report and wait'' procedure. If the reporting firm does not 
hear from BXA within thirty days, then the reporting firm may 
thereafter rely upon its reported calculations, and its foreign 
technology or software described in the filed report is not subject to 
the EAR.
    For those reexporters without the desire or ability to take 
advantage of the de minimis rule, their position under the EAR remains 
unchanged in any respect by this interim rule. The commingled rule 
continues to apply as it has for decades. One commenter said that the 
report requirement would make enforcement easier for BXA than under the 
existing rule. BXA does not believe that to be true. The existing rule 
is clear.
    Reexporters should also be mindful that many authorities for 
permissive reexports remain available to overcome reexport 
prohibitions. The de minimis exclusion from the commingle rule 
determines whether foreign technology or software is subject to the 
EAR. If certain commingled foreign technology or software is subject to 
the EAR, then the general prohibitions and License Exceptions define 
the obligations of the holder of that technology and software.
    This interim rule also makes several changes to Sec. 734.3, Items 
Subject to the EAR. In the proposed rule, foreign made products subject 
to the EAR were separately in Sec. 732.4. These provisions dealing with 
foreign made products are now included in Sec. 734.3, together with 
other items subject to the EAR. This interim rule consolidates all 
related principles in one section.
    A number of commenters questioned whether BXA intended to limit the 
coverage of items subject to the EAR only to ``U.S.-origin'' items as 
reflected in Sec. 732.2(a) of the proposed rule. This interim rule 
clarifies the intent of the proposed rule and the BXA practice related 
to this issue. Specifically, this interim rule has asserted 
jurisdiction over all items subject to the EAR exported from the United 
States, whether of U.S. or foreign origin, but in practice has limited 
other controls, such as reexport controls, over EAR-controlled items to 
those of U.S. origin. Section 734.3(a) of this interim rule reflects 
these provisions. Section 734.3 also applies to all covered items in 
the United States, and to all such items that are of U.S.-origin, 
wherever located.
    This interim rule also specifically states that foreign origin 
items in-transit through the United States and in U.S. foreign trade 
zones are subject to the EAR. For any special licensing treatment that 
may be accorded such shipments on their export from the United States, 
exporters should look at the License Exceptions in part 740.
    This interim rule makes five changes to the proposed rule that are 
reflected in the provisions of Sec. 734.3(b), which lists the 
exclusions from items subject to the EAR.
    1. In proposed Sec. 732.3(a)(1), BXA excluded items exclusively 
controlled for export or reexport by other agencies which maintain 
controls for national security or foreign policy purposes. The agencies 
were identified in Supplement No. 2 to proposed part 732. To reduce 
cross-referencing, the agencies are now listed in part 734, and the 
Supplement has been removed.
    2. This interim rule also adds a new provision that excludes from 
the definition of ``items subject to the EAR''

[[Page 12719]]
items included in ECCN 0A98 in the existing EAR, such as films, 
records, books, and periodicals. This provision was not included in the 
proposed rule. Under the existing EAR, items included in that ECCN do 
not require authorization to any destination. This interim rule has the 
same result.
    3. Section 732.2(a)(3) of the proposed rule excluded security-
classified technology and software from the coverage of items ``subject 
to the EAR.'' This provision was based on the theory that classified 
items are controlled by the Nuclear Regulatory Commission and the 
Department of State's Office of Defense Trade Controls. One commenter 
observed that because these agencies control the export of classified 
items as part of their ``exclusive'' jurisdiction, no specific 
provision needs to appear for classified items. To avoid confusion, 
this interim rule omits the reference to classified items. The 
provision is already implicitly included in part 734 because items 
controlled exclusively for export by another agency are not subject to 
the EAR (Sec. 734.3(b)(1)).
    4. This interim rule also adopts the term ``publicly available 
information'' to refer to all information included in General License 
GTDA of the existing EAR. Such information is listed in 
Sec. 734.3(b)(3). In the proposed rule, the term ``publicly available'' 
applied solely to information that was ``generally accessible to the 
interested public in any form''. This interim rule adopts the term 
``published information'' to represent such generally accessible 
information.
    5. A number of commenters objected to the use of the term ``Not on 
List'' or ``NOL'' to designate and clear for export those items which 
are subject to the EAR but which do not appear on the CCL. This interim 
rule drops this term, which will be discussed in greater detail under 
part 758, General Export Clearance Requirements. However, in response 
to written comments and audience comments at the town-hall fora, BXA 
will designate such items under ``EAR99.'' This designation, discussed 
in Sec. 734.3(c) of this interim rule, will be used for classification 
and reference purposes only, and will not be required for clearing 
exports.
    One commenter recommended that items subject to the EAR be 
specifically limited to exports and reexports because BXA's statutory 
authority relates to controlling exports and reexports. This interim 
rule does not adopt this recommendation because the term ``subject to 
the EAR'' defines the scope of EAR jurisdiction. The prohibition on 
exports and reexports of such items based on BXA's statutory authority 
is reflected in part 736, Prohibitions.
    Finally, this interim rule expands Supplement No. 2 to include a 
requirement for the submission of a report to be submitted to BXA if an 
exporter uses the de minimis for technology or software.

Part 736--General Prohibitions

    Part 736 includes ten general prohibitions. These are the 
prohibitions that may apply to items subject to the scope of the EAR as 
described in part 734, Scope. General Prohibitions One, Two, and Three 
are product controls. The Commerce Control List in Supplement No. 1 to 
part 774 and the Country Chart in Supplement No. 1 to part 738 are used 
together to define the product scope and destinations for the license 
requirements of General Prohibitions One, Two, and Three. General 
Prohibitions Four through Ten describe certain activities that are not 
permitted without authorization from BXA.
    Several commenters recommended liberalization of the existing 
reexport controls. For example, one commenter suggested a license free 
zone for all members of the former Coordinating Committee on Export 
Controls (COCOM), the Missile Technology Control Regime (MTCR), the 
Nuclear Suppliers Group (NSG), and the Australia Group (AG). BXA notes 
that a provision in the Export Administration Act of 1979 compels 
individual validated licenses for items controlled cooperatively by 
members of the MTCR. BXA is aware of the interest of the exporting 
community in the further expansion of license free zones. However, this 
interim rule is not intended to address such fundamental policy 
decisions and is not an appropriate vehicle to make such changes.
    Some commenters urged BXA to create a separate part for reexport 
controls or a separate guideline for reexports. Others supported this 
view and indicated that it was convenient for them to photocopy newly 
designated part 774A and send this to firms abroad. BXA believes that 
part 774A of the EAR does not describe all the duties of reexporters; 
and reliance upon a reading of only that portion of the regulations 
could well lead to violations of other portions of the EAR. In response 
to these comments, BXA has taken care in this interim rule to indicate 
which requirements of the EAR apply to reexporters and which 
requirements do not. Part 732, Steps contains explicit indications of 
applicability of various provisions to reexporters. As suggested by 
several commenters, part 732, Steps has been substantially expanded to 
present a road map for the use of these provisions by reexporters.
    The foreign-produced direct product control described in General 
Prohibition Three reflects a policy prompted by the Cold War. The 
Regulations and Procedures Technical Advisory Committee (RPTAC) 
recommended that BXA not revise this policy during the drafting period 
that led to the proposed rule. After publication of this interim rule, 
BXA will initiate a policy review of the foreign-produced direct 
product rule.
    All ten general prohibitions in this part 736 apply to firms abroad 
under some circumstances. Part 734, Scope defines the scope of the 
regulations for foreign as well as domestic firms. The key factors that 
make all ten general prohibitions applicable to foreign firms are the 
scope of the parts and components rule, the foreign-produced direct 
product rule, and the general prohibition regarding reexports of U.S.-
origin items. These are described in detail in part 732, Steps; part 
734, Scope; and part 736, General Prohibitions with specific references 
to reexporters.
    One commenter asked if we would add a provision regarding the 
applicability of License Exceptions to General Prohibition Eight 
concerning the unlading of goods in certain countries. The structure of 
this prohibition is that it applies only to exports and reexports that 
require a license. By definition, if you properly use a License 
Exception authorized by the EAR, General Prohibition Eight does not 
apply. Rather, it is a prohibition against unlading items that are 
shipped under a license. Exporters and carriers should note that BXA 
plans to conduct a policy review of the country scope of General 
Prohibition Eight following the publication of this interim rule.
    Several commenters stated that the proposed rule continued to 
present a complex set of requirements, and many commenters suggested 
fundamental decontrols and elimination of longstanding regulatory 
requirements. Such recommendations would necessary entail changes to 
the general prohibitions. However, the Regulation Reform exercise was 
not intended to address such fundamental policy decisions, and this 
interim rule is not an appropriate vehicle to make such changes.
    Supplement No. 1 to part 736 on General Prohibitions provides for 
certain General Orders. At this time, Supplement No. 1 is reserved. 
Supplement No. 2 to part 736 provides

[[Page 12720]]
for three Administrative Orders. These Administrative Orders continue 
polices of the existing regulations regarding the technical advisory 
committees, business conduct before BXA, and certain confidentiality 
provisions.

Part 738--Commerce Control List Overview and Country Chart

    Part 738 provides an overview of the Commerce Control List (CCL) 
and the Country Chart. The complete CCL is contained in Supplement No. 
1 to part 774, while the Country Chart is contained in this part.
    A significant change to the proposed rule as it relates to the CCL 
is the modification of the numbering system used to identify Export 
Control Classification Numbers (ECCNs) to conform with the European 
Union (EU) numbering system as described in the supplementary 
information regarding the CCL. This part provides an overview of the 
new CCL structure and ECCN numbering system along with a thorough 
discussion of the components that make up an ECCN.
    This interim rule eliminates the use of the term ``License 
Alternative'' and the ``Special Comprehensive License'' reference as 
described in the proposed rule. In addition, this interim rule adopts 
the revised reasons for control as identified in the proposed rule 
(i.e., use of the broad term ``FP'' has been discontinued). New 
``Related Definition'' and ``Related Controls'' sections contained in 
the proposed rule have also been adopted in this interim rule.
    Several commenters described use of the Country Chart column 
identifier in the ``License Requirement'' section of each ECCN as a 
rational model and fundamental to simplifying the task of determining 
licensing requirements. This interim rule retains this very valuable 
tool with few modifications.
    The Country Chart, as described in the proposed rule, has been 
modified to incorporate columns for destinations eligible for General 
License GCT and GNSG under the existing EAR. General License GCT 
eligibility is now determined by NS Column 2, while NP Column 1 now 
reflects General License GNSG eligibility. NP Column 2 is retained in 
its original format as reflected in the proposed rule. Accordingly, 
references to License Exceptions CSR and NSG in the ``License 
Exceptions'' section within each entry on the Commerce Control List do 
not appear in this interim rule.
    A few commenters noted that the proposed title to part 738, 
Commerce Control List and Country Chart implies that the entire CCL is 
contained in part 738. The title to this part has been modified to 
state this part contains an overview of the CCL structure and its 
relationship to the Country Chart, rather than the actual CCL.
    Two commenters noted that the cross-reference to part 742, Control 
Policy--CCL Based Controls should be clarified. This interim rule 
contains a more descriptive cross-reference to part 742 and is placed 
in a more appropriate location.
    A few commenters expressed confusion over the use of UN Column 1. 
This interim rule removes UN Column 1, because of its limited scope of 
control and for added clarity. In addition, this interim rule revises 
the two instances in which the Country Chart is not consulted to 
determine license requirements. This interim rule expands the proposed 
list of ECCNs in which the Country Chart cannot be used from 5A80D 
(5A980) to include 1A988, 2A994, 2D994, 2E994, 2B985, 0A983, 0A986, and 
0A988.
    This interim rule does not adopt the request made by a few 
commenters that the Country Chart be expanded to incorporate the 
Country Group identification as described in part 740, License 
Exceptions. These two lists were developed for separate purposes and 
allow for systematic licensing determinations (e.g., Country Groups are 
not reviewed unless a license is required by the Country Chart). In 
addition, incorporation increases the possibility that readers will 
make incorrect license determinations.
    This interim rule expands the example for using the CCL and Country 
Chart to illustrate more complex fact patterns, as requested by a 
commenter.

Part 740--License Exceptions

    Part 740 provides for exceptions from license requirements similar 
to the General Licenses contained in the existing regulations. In 
addition to License Exceptions for commodities, this part contains 
License Exceptions for software and technology and permissive 
reexports. Previously, both technical data and reexports had separate 
parts. License Exceptions for short supply commodities appear in part 
754.
    Eligibility for License Exceptions may be based on the item to be 
exported or reexported, the country of ultimate destination, the end-
use of the item, or the end-user. If a License Exception is available 
for a particular transaction, the exporter or reexporter may proceed 
with the export or reexport without a license. However, the exporter or 
reexporter is required to meet all the terms of the License Exception; 
in using a License Exception, the exporter or reexporter will be 
certifying that all terms, conditions, and provisions for the use of 
that License Exception have been met.
    The most significant departure in this interim rule from the 
proposed rule is the changed relationship between the determination of 
the applicability of a License Exception to a particular transaction 
and the documenting of that transaction for export clearance purposes. 
Previously, each License Exception bore a three-character symbol that 
transferred directly to shipping documents to certify that the 
transaction did not require a license and that it met the terms and 
condition of the stated License Exception. In this interim rule, each 
three-character symbol that will be used on shipping documents 
represents a group of License Exceptions rather than a single License 
Exception. This change means that a few symbols will cover a large 
percentage of shipments from the United States. Each symbol bears an 
intuitive relationship to its group of License Exceptions; for example, 
those based on the Commerce Control List bear the symbol ``LST.'' Some 
commenters wished to retain the old General License symbols, but a 
preponderance of exporters preferred intuitive symbols and expressed 
that preference at the numerous town-hall fora held around the country.
    Many commenters on the proposed rule protested that certain 
existing General Licenses--specifically GLR and GTDU--had been 
needlessly fragmented. In this interim rule, these License Exceptions 
have been consolidated into Servicing and Replacement (RPL) and 
Technology and Software--Unrestricted (TSU), respectively. General 
Licenses GCT and GNSG in the existing EAR, which appeared as License 
Exceptions CSR and NSG in the proposed rule, have in this interim rule 
been incorporated into the Country Chart in part 738.
    Changes made in General Licenses in the intervening period between 
publication of the proposed rule and this interim rule, including G-
BETA for beta test software, G-CTP for computers, and a modification of 
GCG (shipments to cooperating governments), are reflected in part 740. 
The former Humanitarian License Procedure, which was included in the 
Embargo part of the proposed rule, has become a License Exception for 
humanitarian donations.

Part 742--Control Policy--CCL-Based Controls

    If you have determined that a license application must be filed 
after reviewing the Country Chart in part 738 and the Commerce Control 
List (CCL) in part 774, this part 742 provides the licensing

[[Page 12721]]
policy that BXA will apply in reviewing your application. This part 
contains licensing review policies for all items listed on the CCL 
except items controlled for ``short supply'' reasons or to implement 
``U.N. Sanctions.'' It consolidates most of newly designated part 785A, 
Special Country Policies, portions of newly designated part 776A, 
Special Commodity Policies and all the CCL-based controls described in 
newly designated part 778A, Proliferation Controls. It also includes 
control policies for items included on the CCL but not reflected in the 
Country Chart. Specifically, these items are high performance 
computers, implements of torture, and communications intercepting 
devices.
    Part 742 does not include controls and licensing polices that apply 
to exports and reexports to embargoed destinations (currently, Cuba, 
Libya, North Korea, Iraq, Iran, and the Bosnian-Serb controlled areas 
of Bosnia-Herzegovina), except a description of anti-terrorism controls 
applicable to Iran (Sec. 742.8) and other terrorist-designated 
countries (Supplement No. 2 to part 742). Part 746, Embargoes and Other 
Special Controls, covers the licensing policies for embargoed 
destinations.
    This part is structured to assist exporters to easily retrieve 
licensing information related to the reason for control for each item 
listed on the CCL. Each ``Reason for Control'' column on the Country 
Chart in part 738 has a counterpart section in part 742. The sections 
in this part appear consecutively in the same order as the columns on 
the chart, reading from left to right. In addition, each section is 
similarly structured:

--Paragraph (a) lists the licensing requirements as stated on the CCL;
--Paragraph (b) provides the licensing policy for specific controls on 
the CCL;
--Paragraph (c) describes any contract sanctity dates that apply to 
particular controls; and
--paragraph (d) provides information concerning any multilateral 
cooperation that may apply to a particular control.

    BXA believes that the structure and organization of this part is a 
significant improvement over the existing EAR. It enables an exporter 
to retrieve specific licensing information relevant to each ECCN on the 
CCL without having to review extraneous material.
    Changes were made in Sec. 742.1, Introduction, to accurately 
describe the structure of this interim rule. Paragraph (c) was added to 
make clear that controls on embargoed destinations, other than anti-
terrorism controls, are covered in part 746, Embargoes and Other 
Special Controls and do not appear in this part 742. Paragraph (d) 
generally describes anti-terrorism controls maintained by BXA. 
Paragraph (e) reminds the reader that items not listed on the CCL are 
nonetheless subject to the end-use and end-user provisions described in 
part 744, Control Policy--End-user/End-use Based.
    In addition, this interim rule contains changes that implement 
regulations which were issued by BXA but were not reflected in the 
proposed rule. The interim rule also reflects changes made in response 
to public comments on the proposed rule.
    On May 6, 1995, the President issued Executive Order 12959, 
imposing a virtual embargo on exports of any goods, technology or 
devices to Iran and on certain reexports of U.S.-origin goods or 
technology. (The Treasury Department, Office of Foreign Assets Control 
(OFAC), has principal responsibility for implementing E.O. 12959.) 
Because of the virtual embargo on exports to Iran, provisions dealing 
with Iran, except anti-terrorism controls, have been shifted to part 
746, Embargoes and Other Special Controls. In this interim rule, 
Sec. 742.8 describes anti-terrorism controls on exports and reexports 
to Iran that BXA continues to maintain while the comprehensive embargo 
administered by OFAC is in effect.
    This interim rule also includes new anti-terrorism controls on 
Sudan, described in Sec. 742.10 and in Supplement No. 2 to part 742. 
The Department will also publish these controls in the format of newly 
designated part 785A and related parts. The items controlled for anti-
terrorism reasons to Sudan include explosive device detectors, which 
have been moved into a new ECCN. The anti-terrorism control on 
explosive device detectors also applies to Syria and Iran.
    Since the publication of the proposed rule, the Department has 
issued a new regulation on exports of specially designed implements of 
torture (60 FR 58512). This regulation moved specially designed 
implements of torture from Export Commerce Control Number (ECCN) 0A82C 
to a new ECCN, 0A83D, and required a license to all destinations, 
including Canada. The changes made by that regulation are reflected in 
the interim rule. Proposed Sec. 742.7 (Crime Control) is revised to 
eliminate references to implements of torture, and a new Sec. 742.11 
(Specially Designed Implements of Torture) is added to this interim 
rule.
    The President announced a revision of U.S. export controls on 
computers on October 6, 1995 that affects the supercomputer controls 
contained in part 742 (Sec. 742.12) of the proposed rule. The 
Department published the revised regulations on January 25, 1996 (61 FR 
2099). Section 742.12 has been retitled ``High performance computers'' 
in this interim rule and describes the license requirements and 
licensing policies applicable to four ``tiers'' of countries. 
Supplement No. 3 to part 742 describes licensing safeguard conditions 
that may be imposed on exports of high performance computers to certain 
destinations.
    Twelve commenters included comments on part 742 in their 
submissions. A number of commenters pointed out technical mistakes and 
omissions in part 742. These are corrected in this interim rule. 
Following is a discussion of other comments submitted.
    Two commenters questioned the appropriateness of continuing 
controls on exports to members of a given multilateral control regime 
of items controlled by that regime. No License Exceptions are available 
for items controlled for missile technology reasons because a provision 
in the Export Administration Act requires individual validated licenses 
to all destinations. Section 742.2(a)(2) of this interim rule states 
that licenses are not required for exports of the listed chemicals to 
Australia Group member countries. This interim rule revises 
Sec. 742.3(a)(1) to inform the exporter that no license is required for 
exports of certain nuclear proliferation controlled items to Nuclear 
Suppliers Group (NSG) member countries. Finally, this interim rule 
describes, in Sec. 742.4(a), a new national security control level, 
denoted by ``NS Column 2'' in the Country Chart, which indicates that 
no license is required for exports to Country Group A:1 and cooperating 
countries.
    One commenter noted that proposed Supplement No. 2, listing 
countries that are party to the Treaty on the Nonproliferation of 
Nuclear Weapons and to the Treaty for the Prohibition of Nuclear 
Weapons in Latin America, required updating. Because the list of 
countries party to these treaties is constantly changing, BXA decided 
to remove this Supplement rather than risk publishing an inaccurate or 
outdated list. BXA will maintain and make available to interested 
persons a current list of the countries party to these treaties.
    One commenter suggested that part 738, Commerce Control List 
Overview; part 742, Control Policy--CCL Based

[[Page 12722]]
Controls; and part 774, The Commerce Control List be combined, since 
they all concern the Commerce Control List. BXA did not adopt this 
recommendation. Each of the three parts provides a view of controls 
from a different vantage point: Part 738 by country; part 742 by type 
of control; and part 774 by type of item. BXA believes that 
consolidating the three parts into one would make the interim rule more 
unwieldy and difficult to use.
    Two commenters recommended that contract sanctity provisions be 
established for nuclear nonproliferation, national security, regional 
stability, crime control or computer controls. BXA did not establish 
contract sanctity in this interim rule. Decisions on contract sanctity 
dates are made when new controls are imposed. This interim rule does 
not impose any new controls. Accordingly, no changes have been made in 
contract sanctity provisions.
    Two commenters stated that Sec. 742.2(d) (chemical and biological 
weapons), Sec. 742.4(d) (national security) and Sec. 742.5(d) (missile 
technology) incorrectly state that U.S. controls are consistent with 
multilateral agreements. BXA does not agree with this comment. The only 
change that BXA is making in this interim rule is to reserve 
Sec. 742.4(d). On December 19, 1995, the United States and twenty-seven 
other countries, including its NATO allies and Russia, agreed to 
establish a new multilateral export control arrangement. The Wassenaar 
Arrangement for Export Controls for Conventional Arms and Dual-use 
Goods and Technologies (``Wassenaar Arrangement'') is expected to be 
operational later in 1996. Any EAR changes that may be needed to carry 
out the Wassenaar Arrangement will be made at the appropriate time.
    A commenter suggested that License Exception NSG be extended to 
South Korea, Taiwan and Mexico. License Exception NSG has been removed 
in this interim rule. Instead, items on the CCL with ``NP Column 1'' in 
the Country Chart column of the ``License Requirements'' section of an 
ECCN do not require a license to NSG member countries. The commenter's 
suggestion has not been adopted by BXA for Taiwan and Mexico because 
the regulations simplification initiative was not intended to make 
substantive changes in license requirements. However, recent regulatory 
changes have extended such treatment to South Korea, and that change is 
incorporated into this interim rule.
    One commenter questioned why ECCN 5A80 (communications intercepting 
devices) of the proposed rule is not included in Sec. 742.7 (Crime 
Control). These items are regulated under separate statutory authority 
and licensing criteria. Items controlled under Sec. 742.7 are those 
agreed to pursuant to section 6(n) of the Export Administration Act. 
Controls on communications intercepting devices are maintained in 
accordance with the Omnibus Crime Controls and Safe Streets Act of 
1968, and are therefore separately controlled under Sec. 742.13.

Part 744--Control Policy--End-User/End-Use Based

    This part contains prohibitions against exports, reexports, and 
activities related to certain end-uses and end-users. Specifically, 
Sec. 744.2 prohibits exports and reexports of items subject to the EAR, 
without a license, if at the time of the export or reexport you know 
that the item will be used in nuclear explosive, or other safeguarded 
or unsafeguarded nuclear activities. Section 744.3 prohibits the export 
or reexport, without a license, of certain items to be used for missile 
end-uses. Similarly, Sec. 744.4 prohibits the export or reexport of 
items with certain chemical and biological weapon end-uses. Next, 
Sec. 744.5 prohibits the export or reexport of items to be used for 
specified nuclear maritime end-uses.
    Section 744.6 places restrictions on certain proliferation-related 
activities of U.S. persons. For purposes of this prohibition the term 
``U.S. person'' means citizens, permanent resident aliens, or protected 
individuals as defined in the immigration laws; any juridical person 
organized under the laws of the United States or any U.S. jurisdiction; 
and any person physically in the United States. This part also contains 
prohibitions against exports, reexports, and certain transfers to 
specified end-users. Section 744.7 imposes restrictions on certain 
exports to and for the use of certain foreign vessels or aircraft, and 
Sec. 744.8 places restrictions on certain exports to all countries for 
Libyan aircraft.
    Commenters urged BXA to publish a positive list of items and limit 
the applicability of the nonproliferation related end-use restrictions 
to items on such a positive list. In addition, commenters asked BXA to 
publish certain names of end-users as to which individual exporters 
have been ``informed'' that a license is required by reason of 
Sec. 744.2(b), Sec. 744.3(b), Sec. 744.4(b), and Sec. 744.6(b). BXA is 
working within the Administration toward these objectives; however, 
these are major policy initiatives, they are not part of this interim 
rule, and they are not necessary to achieve the goals of the 
Regulations Reform exercise.
    Commenters suggested that under Sec. 744.2(b) the discretion of BXA 
to inform an exporter of the trustworthiness of certain end users 
should be a duty of BXA rather than an option of BXA. The U.S. 
Government will retain this discretion because of the overriding 
interests in protecting sources and methods of intelligence gathering 
and the interests in law enforcement objectives that on occasion 
require flexibility on the part of the government.
    One commenter urged BXA to make clearer the treatment of technology 
that historically was authorized for export under General License GTDA. 
In the proposed rule, BXA excluded such information from the scope of 
the EAR. That approach is retained in this interim rule and clarified 
in the steps that have been added to part 732, Steps to suggest methods 
for using part 734, Scope of the EAR. Items not subject to the scope of 
the EAR are not subject to any prohibition of the EAR.
    Section 744.2(b) contains provisions designed to standardize the 
procedure for informing exporters that a particular party may present 
an unacceptable risk of diversion contrary to nuclear policies. Some 
commenters applauded this addition, and one opposed it. BXA will 
maintain this provision because the procedural discipline it provides 
should prove useful for both BXA and exporters. This provision does not 
change BXA's substantive authorities under the EAR.
    One commenter suggested additional cross-references to the license 
review policies for items subject to, for example, missile technology 
controls identified on the CCL based upon product parameters rather 
than a prohibited end-use. In the proposed rule and in this interim 
rule, the license review standard for applications required by reason 
of the product parameters designated on the CCL are listed in part 742, 
Control Policy--CCL Based Controls. The license review standards for 
license requirements defined by end-uses described in part 744 are 
contained in part 744. Because of the criticism of some commenters that 
the proposed rule contained too many cross-references, BXA has 
concluded in this instance that additional cross-references are not 
advisable.
    This interim rule continues existing policy regarding the country 
scope of the nuclear end-use prohibition. A new Supplement No. 3 is 
added to the part and referenced at Sec. 744.2(a) to exempt designated 
countries from this prohibition, and those are the same countries that 
are exempt under the

[[Page 12723]]
existing EAR. This is a change from the proposed rule.
    One commenter suggested that BXA remove from Sec. 744.6 words that 
indicate defined activities are prohibited in the United States. This 
interim rule accepts this recommendation. One commenter complained that 
Sec. 744.6 applies to less than all countries in Country Group D:1. The 
exclusion of Romania and China is consistent with current policy, and 
is maintained in this interim rule. BXA recognizes that such policy 
decisions make the use of the Country Groups and the EAR itself more 
complex. BXA hopes reviewing of provisions of the EAR in the order 
recommended by the steps in part 732 will minimize this problem. BXA 
intends to further address such issues in the future. However, policy 
making in export controls will always present trade offs for exporters 
when petitioning the government for fairness and precision of export 
control policy on the one hand versus simplicity and ease of 
administration for the public on the other.
    The proposed Sec. 744.6(a)(2) prohibited certain U.S. person 
activities related to nuclear explosives devices. It was removed from 
this interim rule because such activity is prohibited under the 
International Traffic in Arms Regulations (22 CFR 120-130), which 
regulate defense services for all destinations.

Part 746--Embargoes and Other Special Controls

    Part 746 of the proposed rule contained controls for Cuba, Libya, 
Iraq, North Korea, and the Federal Republic of Yugoslavia (Serbia and 
Montenegro), indicating where jurisdiction was divided between BXA and 
the Department of the Treasury's Office of Foreign Assets Control. It 
also contained controls implementing U.N. sanctions resulting in 
additional EAR controls on Rwanda.
    Controls on Iran, embargoed because of Executive Order 12959 of May 
6, 1995, have been added to part 746 in this interim rule. With the 
suspension of the embargo on the Federal Republic of Yugoslavia (Serbia 
and Montenegro), controls on that country, as well as on certain areas 
of Croatia and Bosnia-Herzgovina, have been shifted to a Supplement to 
part 746. Commenters pointed out that ECCN 0A95, which released food 
and medical supplies to Libya from reexport control, was unaccounted 
for in the proposed rule; that oversight has been corrected. The former 
Humanitarian License Procedure, which was included in the Embargo part 
of the proposed rule, has become a License Exception for humanitarian 
donations and is in part 740 of this interim rule.
    Finally, this part includes Supplements containing general 
information on embargoes and sanctions administered by other federal 
agencies.

Part 748--Applications (Classification, Advisory, and License) and 
Documentation

    Part 748 describes the procedures for submitting license 
applications, classification requests and advisory opinions. This 
interim rule places information from throughout the existing EAR into 
one part. It is intended to provide the reader with all information 
necessary to submit an application to BXA.
    This interim rule adopts use of the new Form BXA-748P for the 
submission of license applications and classification requests, but not 
advisory opinions. Most commenters favored the use of one form for both 
exports and reexports. This interim rule clarifies the definition of 
advisory opinions and states they must be submitted in writing via 
letter. Commenters were evenly split regarding the proposal to require 
use of Form BXA-748P for advisory opinions. One commenter proposed 
adopting the form for use when submitting end-user requests. This 
suggestion along with one recommending the elimination of unit and 
total price boxes are not adopted in this interim rule. A number of 
commenters also queried whether BXA intends to republish the Forms 
Supplement contained in the existing loose leaf EAR subscription. BXA 
will republish the Forms Supplement in the subscription to the EAR 
offered by the National Technical Information Service (NTIS). The Forms 
Supplement is not published in the Code of Federal Regulations.
    Sections in part 748 have been redesignated to better describe each 
section's contents. The addresses in Sec. 748.2 and Sec. 748.14 have 
been placed in one section. Procedures for submitting applications 
electronically have been placed in a separate section for easier 
access. For continuity, the unique license requirements for specific 
items or transactions have been placed in a separate Supplement No. 2 
to this part. This change will allow readers to determine quickly 
whether the unique requirements apply to their transaction, and if not, 
to continue quickly with sections relating to support documents. 
Instructions for completing Form BXA-748P contained in Supplement No. 1 
to part 748 have been clarified in response to comments posed by both 
the public and BXA employees.
    On the suggestion of one commenter, a reminder that information 
submitted under the Export Administration Act will be treated in 
accordance with provisions stated in section 12(c) of the act has been 
added in this interim rule in Sec. 748.1(c).
    The section on license application support documents has been 
revised to eliminate one step in the decision tree. The questions 
contained in Sec. 748.10(a)(3) in the proposed rule have been combined 
into one question in this interim rule. Some commenters noted that 
exceptions for obtaining support documents have decreased in certain 
circumstances. The changes announced in the proposed rule were due 
largely to the changing export control environment and proliferation 
credentials of various countries. Accordingly, this interim rule adopts 
the requirements contained in the proposed rule with a few 
modifications. This interim rule also adopts the two year validity 
period for the Statement by Ultimate Consignee and Purchaser.
    A few commenters noted that though the development of decision 
trees will assist in determining support document requirements, BXA 
should consider the development of a matrix or chart similar to that 
contained in part 775 of the existing rule. Though a chart has not been 
included in this interim rule, BXA will explore development of a new 
matrix/chart based on the support document decision tress in this part. 
This interim rule also eliminates the last letter in the Export Control 
Classification Number contained in the existing rule. This letter had 
been used previously to designate support document requirements, but is 
no longer necessary.
    A few commenters requested additional guidance on what constitutes 
an emergency and clarification of validity periods as they relate to 
licenses approved under emergency processing. This interim rule 
clarifies the validity period by cross-referencing the appropriate 
section in part 750, but does not provide additional language to be 
used by applicants when submitting emergency requests. In order to 
retain the emergency nature of these requests, this interim rule does 
not adopt the suggestion by one commenter to increase the validity 
period from 30 to 60 days for applications involving reexports.
    Commenters were evenly split regarding the elimination of Form BXA-
685P for amendments with a few stating the elimination of this form is 
long overdue. This interim rule adopts the intent to eliminate Form 
BXA-685P along with Form BXA-648. Changes not

[[Page 12724]]
listed in Sec. 750.7(c) will require the submission of a Replacement 
application. One commenter stated the time period for the return of 
Delivery Verifications to BXA was reduced with elimination of Form BXA-
648. The existing rule states the time frame as ``a reasonable time 
after the last shipment'' while the instructions contained in the 
existing Form BXA-648 stated the time frame as ``90 days after the last 
shipment''. This interim rule eliminates this inconsistency by 
establishing a 90 day time frame.
    Form BXA-711 along with its written counterpart is adopted in this 
interim rule. Commenters stated the ability to use a form or letter was 
a good idea.

Part 750--Application Processing, Issuance and Denial

    Part 750 describes the processing procedures and time frames for 
classification requests, advisory opinion requests and license 
applications. Once an applicant has prepared documents in accordance 
with part 748, this part describes how the application will be handled 
by BXA. The time frames detailed in this interim rule are drawn from 
Executive Order No. 12981 of December 6, 1995 and the draft 1994 Export 
Administration Act bill written by the Clinton Administration.
    This interim rule provides a detailed description of the 
relationship between all agencies and departments involved in the 
license review process as well as a description of the interagency 
dispute resolution process. This part also addresses actual issuance, 
validity periods, denial, revocations, suspensions, transfers, 
duplicates, and shipping tolerances.
    This interim rule also eliminates the proposed exceptions to the 
license processing time frames and limits all license applications to a 
90 day processing time frame. A number of commenters made 
recommendations for revising the time frames for the processing of 
license applications as well as the types of applications subject to 
Congressional notification. This interim rule incorporates the 
processing time frames provided in Executive Order No. 12981. 
Accordingly, recommendations to establish different time frames have 
not been adopted. In addition, congressional notification requirements 
for crude oil and refined petroleum products have not been adopted 
since they no longer apply to the types of licenses reviewed by the 
Department.
    Most commenters supported the clarification of the license 
processing system and time frames. These commenters agreed that BXA has 
met the goal of making the process more transparent for the exporter.
    A number of commenters requested that applicants be given the 
opportunity to express their views during the license escalation 
process. These commenters also requested clarification of the term 
``registration'' to include language that would require prompt action 
by BXA upon receipt of a license application. Both of these 
recommendations have been adopted in this interim rule.
    One commenter suggested that part 756, Appeals, be combined with 
this part 750 since most appeals involve license applications. This 
recommendation was not adopted because the appeals process is open to 
all administrative actions, not only those relating to license 
applications.
    One commenter recommended simplification in the provisions for 
shipping tolerances. While this recommendation has merit and may be 
considered at a later date, it was not adopted in this interim rule.

Part 752--Special Comprehensive License

    Part 752 describes the provisions of the Special Comprehensive 
License (SCL). The SCL consolidates the activities authorized under the 
Project, Distribution, Service Supply, Service Facilities, Aircraft and 
Vessel Repair Station Procedure, and Special Chemical Licenses, and 
provides for additional flexibility to BXA in shaping appropriate SCLs 
and internal control programs (ICPs). For example, the Project License 
and Service Supply Procedure authorize exports and reexports to 
countries of the former Soviet Union, Eastern Europe, and the People's 
Republic of China, but the Distribution License, which includes an 
extensive mandatory ICP that is not required for the Project License or 
the Service Supply Procedure, does not allow exports and reexports for 
distribution in these countries. This interim rule conforms item and 
country eligibility under the SCL. All items subject to the EAR are 
also eligible for export and reexport under the SCL, except a few 
specified items. Form BXA-686P, Statement by Foreign Importer of 
Aircraft or Vessel Repair Parts, which was used for certain exports 
under the Aircraft and Vessel Repair Station Procedure, and Form BXA-
6026P, Service Supply License Statement by U.S. Exporter, are not used 
under the SCL.
    BXA received fourteen comments on part 752. Overall, several 
commenters stated that the SCL is a significant improvement over the 
existing special license eligibility because it provides broader 
authority to allow exports of items such as software and technology.
    Five commenters suggested that existing special license holders 
retain the right to use existing special licenses until they expire, 
but apply for amendments to take advantage of the increased item and 
country scope of the SCL.
    This interim rule makes the SCL effective March 25, 1996. All 
existing special licenses will expire on March 25, 1997, unless the 
special license expires before that time by its own terms. BXA will not 
grant extensions to existing special licenses. Existing special license 
holders who want to take advantage of the SCL benefits, must apply for 
an SCL according to part 752. BXA will not accept amendments to 
outstanding special licenses.
    Eight commenters provided comments on item scope for the SCL. Most 
commenters stated that the proposed rule would not authorize exports 
under the SCL of items eligible for a License Exception. The proposed 
rule allowed exports under the SCL of all items subject to the EAR, 
including items eligible for a License Exception. However, to prevent 
confusion, the interim rule specifically states in Sec. 752.1 that you 
may apply for an SCL, when appropriate, in lieu of a license described 
in part 748 or a License Exception described in part 740.
    Two commenters stated that the SCL should not exclude any items 
because it defeats the purpose of the SCL, which is designed to allow 
greater flexibility in return for increased monitoring of each shipment 
by the SCL holder and consignees. One commenter added that other 
agencies have the right to review the applications for an SCL, and 
restrictions may be placed on a license on a case-by-case basis. 
However, two commenters stated that there should be no ad-hoc 
restrictions, adding that the only item restrictions should be those 
published in the Federal Register, which would be applicable to all 
companies.
    This interim rule retains the list of items not eligible for the 
SCL in Sec. 752.3 to ensure that potential applicants are aware of the 
few item restrictions before they consider applying for an SCL. If BXA 
determines that an item must be added to the list to protect national 
security, nonproliferation, or foreign policy interests, or determines 
that an item need no longer be prohibited under the SCL, BXA will 
publish a change in the Federal Register, at which time the change will 
become effective and apply to all SCL and potential SCL holders.
    Another commenter was concerned about the general policy of denial 
for

[[Page 12725]]
exports to destinations in Country Group D:2 of items controlled for 
nuclear nonproliferation reasons, and suggested that the SCL 
specifically state that items controlled for nuclear nonproliferation 
reasons be authorized on a case-by-case basis provided that the 
exporter has appropriate controls in place to screen for proscribed 
end-uses or end-users. The Internal Control Procedures (ICPs) required 
for most activities authorized under the SCL include screening elements 
for proliferation end-uses. This interim rule revises the policy of 
denial language found in Sec. 752.3(b) of the proposed rule to a policy 
of case-by-case review. In addition, this rule retains the discretion 
to deny or limit the export or reexport of all items, including those 
controlled for nonproliferation reasons.
    Most commenters applauded the expansion of country scope to include 
the newly independent states and Russia. However, several commenters 
requested clarification that the SCL is eligible for countries such as 
Slovenia, Rwanda, Bosnia, and Croatia, which are eligible under 
existing special licenses . One commenter stated that when BXA declares 
a country ineligible to receive items under the SCL, BXA should 
simultaneously list the country in the EAR, and remove it from all 
SCLs.
    It is not BXA's intent to roll-back special license country 
eligibility. This interim rule therefore clarifies that all countries 
are eligible to receive items under the SCL except Cuba, Iran, Iraq, 
Libya, North Korea, Syria, and Sudan. If BXA determines that additional 
countries should become ineligible to receive items under the SCL, it 
will publish the change in the Federal Register, and notify all SCL 
holders.
    Four commenters suggested consolidating Sec. 752.2 into one generic 
paragraph that describes the representative activities. Another 
commenter stated that the SCL should not prohibit the export of service 
parts or upgrades as long as it does not exceed the limits of the SCL 
parameters. Section 752.2 is intended to provide illustrative examples 
of the types of activities that may be approved under the SCL. It is 
not intended to be an inclusive list, and other activities may be 
approved on a case-by-case basis. This interim rule revises Sec. 752.2 
to provide a general description of the types of activities that BXA 
may approve the under the SCL. These activities fall under the general 
categories of ``service'', ``end-user'', ``distribution'', and 
``other'' activities.
    Four commenters provided comments on the requirement for a letter 
of assurance for exports under the SCL of certain technology. One 
commenter stated that the SCL expands the scope of the existing letter 
of assurance required for exports under General License GTDR because it 
would require the letter of assurance from each new recipient overseas. 
One commenter specifically requested that the letter of assurance be 
required from only one party overseas. The proposed rule did not expand 
current policy. Under the existing EAR, any transfers of technical data 
covered by a letter of assurance would require such assurances from any 
new recipient of the technology. Two commenters indicated that 
assurances are not required for exports of technology under a validated 
license. But, if an assurance must be required, the assurance should be 
included in the SCL certifications.
    This interim rule removes the letter of assurance requirement from 
Sec. 752.5. BXA intends to review requests to export controlled 
software and technology under the SCL on a case-by-case basis, and 
impose conditions or restrictions as appropriate. Depending upon the 
level of software or technology requested for export under the SCL, 
this may include restrictions on reexport of software or technology, or 
exports of direct products of the technology.
    Comments on Sec. 752.5, steps you must follow to apply for an SCL, 
focused on the comprehensive narrative statement. Many commenters 
stated that much of the information required in the comprehensive 
narrative statement is already required on Form BXA-748P, Multipurpose 
Application, or Form BXA-752, Statement by Consignee in Support of 
Special Comprehensive License. Five commenters specifically requested 
that the requirement to state the ratio and dollar volumes of 
controlled items to those not subject to the EAR be removed, because it 
is impractical to calculate and fundamentally unreliable. BXA agrees 
that SCL applicants should not be required to repeat information in a 
comprehensive narrative statement that is also required on Form BXA-
748P or Form BXA-752. Therefore, this interim rule includes major 
revisions to the comprehensive narrative statement requirements, 
limiting that statement to the information that is not required 
elsewhere. This interim rule also removes the requirement to list the 
items eligible for a License Exception that will be exported under the 
SCL because the ICP requirements assure that appropriate controls are 
in place to prevent diversion.
    One commenter stated that the application stage was too early to 
provide BXA a copy of the proposed ICP, and to do so conflicts with the 
certification requirements that an ICP must be in place upon approval 
of the SCL. This interim rule retains, under Sec. 752.5(c)(3), the 
requirement that applicants and consignees submit ICPs at the time of 
application. This information is necessary for BXA to determine whether 
to approve the items, activities, or countries requested on the SCL 
application, or to modify your proposed ICP depending upon the nature 
of the request.
    One commenter stated that BXA should not require an SCL holder to 
inform all consignees of license conditions. Certain conditions may 
only have relevance to one or two consignees. BXA agrees, and has 
clarified in Sec. 752.9(a)(4) to state that the SCL holder must inform 
all relevant consignees of all license conditions prior to making any 
shipments under the SCL. Four commenters objected to the language that 
refers to prior reporting of exports of certain items, which is was 
included in Sec. 752.9(a)(4). This interim rule retains this language. 
Exporters should note that the list of the special conditions that may 
be placed on your SCL included in this section only provides examples, 
and such conditions may not be included on your SCL.
    Section 752.11 describes the elements of the Internal Control 
Programs (ICPs) that the SCL holder and consignee must implement upon 
approval of the SCL to assure that exports and reexports are not made 
contrary to the EAR. Two commenters stated that the ICP requirements 
included in the proposed rule should be clear and defined, not 
generalized. Three commenters suggested that EPCI screening be limited 
to certain countries. Two commenters requested that BXA clarify when 
the parties to the application must submit the ICP to BXA. One 
commenter also requested that upon publication of the SCL, BXA publish 
guidelines that further define ICP requirements.
    This interim rule also restructures Sec. 752.11 to consolidate the 
elements of all three ICPs into one list, and to remove the different 
levels of ICPs. This simplifies the text, and makes it more user-
friendly. This interim rule does not place country limits on screens 
against customers who are known to have, or suspected of having, 
unauthorized dealings with specially designated regions and countries 
for which nonproliferation controls apply. Any such limits must be 
approved by BXA, and are dependent upon the specific nature of your SCL 
request. This interim rule also includes information in 
Sec. 752.11(a)(2) on where you may obtain

[[Page 12726]]
guidelines to assist you in developing an adequate ICP.
    This interim rule also makes several other editorial changes to 
part 752 to consolidate provisions and simplify the text. Section 
752.10, Changes to the SCL, has been revised to clearly define the 
requirements for changing an SCL. Detailed instructions on how to 
complete Forms BXA-748P, Multipurpose Application, and Form BXA-752, 
Statement by Consignee in Support of Special Comprehensive License, and 
other forms related to applying for an SCL are included in supplements 
to part 752. The servicing provision in Sec. 752.4(b) has been revised 
to conform with the standard used throughout the EAR. This provision 
prohibits you from servicing, under the SCL, any item when you know 
that the item is owned or controlled by, or under the lease or charter 
of, entities in countries not eligible for the SCL, or any nationals of 
such countries. Finally, the recordkeeping provisions of Sec. 752.12 
have been clarified by providing the appropriate cross-references to 
part 762, which applies to all transactions subject to the EAR.

Part 754--Short Supply

    This part implements section 7 of the EAA and similar provisions in 
other laws that authorize or require restrictions on exports for 
reasons dealing with adequacy of supply of commodities in the United 
States, as opposed to reasons based on foreign policy, national 
security, or nonproliferation considerations. Specifically, this part 
implements controls on exports of crude oil restricted under the EAA 
and a number of other laws; on exports of petroleum products produced 
or derived from the Naval Petroleum Reserves; on exports of western red 
cedar as required by provisions in the EAA; and on exports of horses by 
sea for the purpose of slaughter. It also provides information relating 
to two provisions contained in EAA section 7: The registration of 
agricultural commodities for exemption from short supply controls, and 
the filing of petitions for the imposition of controls on recyclable 
metallic materials.
    Consistent with the revised structure of the proposed and interim 
rules, this part contains all of the requirements that apply uniquely 
to commodities controlled for short supply reasons. It sets forth all 
of the licensing requirements, licensing policy, License Exceptions, 
and other unique requirements that apply to commodities controlled for 
short supply reasons on the CCL. Short supply controlled commodities 
are identified with ``SS'' under ``Reason for Control'' in each 
relevant ECCN on the CCL. Other requirements of the EAR that are not 
unique to short supply controls, such as recordkeeping in part 762, 
also apply to items covered by this part.
    Six commenters provided comments on this part. A number of 
revisions have been made to implement the recommendations contained in 
the comments. Additional revisions were made to incorporate the heavy 
California crude oil rule published in the Federal Register but not 
included in the proposed rule.
    Commenters recommended that the definition of ``crude oil'' in 
Sec. 754.2 be moved to the front of this section from paragraph (g). 
The definition of ``crude oil'' is now included in paragraph (a).
    Section 754.2(b) deals with licensing policy for crude oil. It has 
been revised significantly to distinguish BXA's licensing policy for 
shipments of crude oil which have already been found to be in the 
national interest, by Presidential decision or otherwise, e.g., crude 
oil from Cook Inlet or California heavy crude, and those which will be 
approved if BXA makes the necessary findings on a case-by-case review 
of applications. In the proposed rule all crude oil applications would 
be reviewed by BXA and approved if the crude oil was not subject to 
certain statutory restrictions and BXA made a finding that the export 
was in the national interest and consistent with the purposes of the 
Energy Policy and Conservation Act. In this interim rule, paragraph 
(b)(1) of Sec. 754.2 lists the exports that have already been found to 
be in the national interest and paragraph (b)(2) lists the exports for 
which BXA must make the necessary findings.
    Section 754.2(b)(2) also reflects a revision relating to the kinds 
of transactions that BXA will find to be in the national interest. The 
proposed rule had cited examples of crude-for-crude and crude-for-
product exchanges that would be found to be in the national interest. 
The language of the proposed rule, however, could have been interpreted 
as limiting the national interest to these examples. The interim rule 
makes clear that the cited exchanges are only examples.
    This interim rule also adds a new paragraph (g) to Sec. 754.2, 
reflecting regulations that were published in the Federal Register (60 
FR 15669, March 27, 1995).
    Finally, this interim rule creates two new License Exceptions which 
apply to the exports of crude oil. Section 754.2(h) implements a new 
License Exception SS-SPR, intended to permit the export of foreign 
origin oil stored for emergency use by a foreign government in the 
Strategic Petroleum Reserves (SPR). License Exception SS-SPR permits 
the export even if the foreign origin oil is commingled with other SPR 
oil, provided that the Department of Energy certifies that the crude 
oil being exported is of the same quantity and of comparable quality as 
the foreign origin oil imported by the foreign government for storage 
in the SPR.
    Section 754.2(i) of this interim rule creates a new License 
Exception, SS-SAMPLE, to permit limited quantities of crude oil for 
analytical or testing purposes. This revision implements 
recommendations included in the public comments. Under this License 
Exception you may ship up to ten barrels of crude oil to any one end-
user annually, up to a cumulative limit of 100 barrels per exporter 
annually. This License Exception codifies a BXA licensing policy for 
sample shipments that has been in effect for several years. This 
licensing policy has been included in BXA's annual report to the 
Congress, but has not been reflected in the EAR. Such de minimis sample 
shipments have no measurable effect on U.S. oil supplies.
    Section 754.3 of this interim rule reflects a significant change in 
the way that the Naval Petroleum Reserves Production Act (NPRPA) 
restriction on non-crude oil products are implemented. The NPRPA 
prohibits the export of petroleum origination or derived from the Naval 
Petroleum Reserve (NPR), unless the President approves the export. 
Under existing EAR, licenses are required for all petroleum products, 
and General License G-NNR authorizes shipments of all such product of 
non-NPR origin or derivation. The proposed rule continued this approach 
and provided License Exception SS-NPR.
    Commenters noted that if all NPR crude oil produced in fiscal year 
1994 were refined, it would amount to less than one percent of all the 
crude oil refined in the United States. The commenters recommended that 
the existing approach be changed to require a license only for 
petroleum products which were NPR produced or derived. BXA adopted this 
recommendation and this provision reflects the change.
    The relevant ECCNs on the CCL have been revised to apply only to 
petroleum products that were produced or derived from the NPR or became 
available for export as a result of an exchange of any NPR produced or 
derived commodities. With this change, General License SS-NNR is no 
longer necessary and is removed.

[[Page 12727]]

    Section 754.4, unprocessed western red cedar, has been reorganized 
consistent with a recommendation included in the comments. In the 
proposed rule, Sec. 754.4(a)(2) contained instructions for filing a 
license application, and preceded provisions on license policy and 
exceptions. A commenter noted that an exporter will first look for 
licensing policy and license exceptions before looking for information 
on how to fill out a license application. The commenter observed that 
there is no point in instructing the exporter how to complete a license 
application if subsequent text informs the exporter either that a 
license will not be approved or is not necessary. This interim rule 
adopts this comment and has restructured Sec. 754.4 accordingly.

Part 756--Appeals

    This part describes the procedures applicable to appeals from 
administrative actions taken by BXA. An administrative action is any 
action (not including an administrative enforcement proceeding) taken 
under the EAA or EAR with respect to a particular person, including 
denial of a license application, return of a license application for 
other than procedural deficiencies or additional information, or 
classification of an appellant's item. Essentially, any person directly 
and adversely affected by an administrative action would be allowed to 
appeal to the Under Secretary for Export Administration for 
reconsideration of that administrative action.
    No substantial comments were received on this part 756. One 
commenter suggested the possibility of combining this part with part 
748, Applications. This interim rule does not adopt the suggestion.
    With the exception of minor editorial revisions and clarifications, 
the provisions of part 756 remain unchanged from the proposed rule.

Part 758--General Export Clearance Requirements

    This part deals with requirements imposed on exporters and others 
regarding the movement of items subject of the Export Administration 
Regulations (EAR) out of the United States. The purpose of this part is 
to assure that the movement of items subject to these EAR conforms to 
the requirements of the export license or other authorization for their 
export.
    This part imposes specific responsibilities on the different 
persons involved in export transactions to ensure compliance with other 
provisions of the EAR and of the Foreign Trade Statistics Regulations 
(FTSR) (15 CFR Part 30), including exporters, freight forwarders, 
exporters' agents, carriers and all other persons. It prohibits any 
person from engaging in certain proscribed conduct. This part governs 
some of the same conduct that is governed by the FTSR.
    This part imposes specific responsibilities for assuring that 
Shipper's Export Declarations (SEDs), bills of lading and air waybills 
are accurately filled out and are consistent with the export license or 
other authorization for the export to which they correspond. It 
restricts the conduct of exporters, forwarders, carriers and others to 
assure that the delivery abroad of items subject to the EAR is in 
accordance with the terms of the export license, exception to the 
licensing requirement or other authorization. In some cases, it imposes 
duties on parties to the transaction to return the items to the United 
States or take steps to prevent them from entering the commerce of a 
foreign country.
    The proposed rule made several changes to this part. Approximately 
25 commenters made comments on the proposed part 758.
    A majority of those who commented on part 758 recommended that we 
eliminate the requirement to place the symbol ``NOL'' on Shippers 
Export Declarations (SEDs) for transactions involving items not on the 
CCL. Most of those commenters suggested that we adopt a single symbol 
``NLR'' for all transactions where the export does not require a 
license either because it is on the CCL but does not require a license 
to the destination in question or because it is not on the CCL. Several 
commenters went further and recommended that we authorize the use of 
the symbol ``NLR'' for transactions that are authorized by a License 
Exception instead of requiring that the License Exception symbol be 
listed on the SED. We adopted the suggestion to eliminate the symbol 
``NOL''. However, this interim rule includes a designator (EAR99) for 
items that in the proposed rule were subject to the EAR but not on the 
CCL, that will be used by BXA in responding to classification requests 
and by exporters for their management systems. The designator will not 
be used on SEDs. We have also reduced the number of License Exception 
symbols from which parties filling out SEDs must choose. As noted above 
in the discussion of License Exceptions, we have created a small number 
of symbols for various groups of License Exceptions, and it is these 
symbols for groups of License Exceptions that must appear on the SED.
    Several commenters suggested that the choice of Destination Control 
Statements (DCSs) in the proposed rule was unduly complex. In addition, 
some commenters suggested that the proposed rule on DCSs did not make 
it clear that the most restrictive DCS could be used for any 
transaction. This interim rule adopts a single simplified DCS.
    A number of commenters raised the issue of what information should 
be shown on SEDs for items which in the proposed rule were not subject 
to the EAR, but which in the existing EAR are eligible for general 
license GTDA. In response to these comments this interim rule creates 
an optional designator TSPA which exporters may use on SEDs for 
software or technology that the proposed rule and this interim rule 
define as outside the scope of the EAR.
    The proposed rule eliminated some information about authority and 
status of forwarding agents and procedures for correcting SEDs on the 
grounds that those points are covered in the FTSR (15 CFR part 30) and 
including them in the EAR was redundant of the FTSR. Some trade 
associations recommended that we retain these procedures. We did not 
adopt this suggestion because the FTSR applies to all exports from the 
United States including those subject to the EAR and those that are 
not. These procedures need to be in the FTSR because exporters who have 
no transactions subject to the EAR must follow them. Retaining 
duplicate language in a regulation that applies to only a portion of 
the exports from the United States would be redundant and creates the 
burden of keeping two different sets of regulations identical whenever 
amendments are adopted.
    Two commenters suggested that proposed Sec. 758.1 was too long and 
portions were redundant. They suggested breaking it up into several 
sections. We did not adopt this suggestion in this interim rule. The 
section has been shortened because of the elimination of the NOL 
provisions.
    Several commenters suggested that the use of the word ``you'' in 
the proposed rule under Sec. 758.1(a)(1) shifted responsibility from 
exporters to forwarders. This interim rule does not change that 
language. The proposed rule, by its terms makes those who obtain 
licenses from BXA or rely on License Exceptions in their export 
transactions responsible for the proper use of that license or License 
Exception. This is a reasonable policy and is retained in this interim 
rule.
    Two commenters proposed that forwarding agents not be required to 
keep a record of the delegation of authority to them unless the

[[Page 12728]]
responsibility to do so was delegated by the exporter. This interim 
rule does not adopt this suggestion. The proposed rule and this interim 
rule conform with the existing EAR and with the FTSR on this issue.
    Two commenters stated that the use of the phrase ``exporter and the 
person submitting the document'' in the proposed Secs. 758.3(e) and 
758.3(l)(1) expands the scope of the persons making representations to 
the U.S. Government to include forwarders in instances where the 
existing EAR does not impose responsibility on forwarders. We accepted 
this recommendation. This interim rule adopts language from the 
existing EAR. However, other sections of this interim rule, like the 
existing EAR, impose liability on forwarders who make 
misrepresentations to the government.
    Two commenters recommended that the HTSUS numbers be permitted on 
SEDs in lieu of Schedule B numbers. We did not adopt this 
recommendation in this interim rule. The FTSR (15 CFR part 30) which 
govern all exports from the United States require Schedule B numbers. 
To the extent that there are differences between the HTSUS and the 
Schedule B numbers, errors in compiling foreign trade statistics would 
occur if either classification numbering system were permitted for 
exports subject to the EAR.
    One commenter recommended that this rule eliminate the 
responsibility of exporters and forwarders who file summary monthly 
reports in lieu of SEDs to ensure that carriers place the destination 
control statement on bills of lading and air waybills. We did not adopt 
this suggestion. The proposed rule and this interim rule follow the 
existing EAR which was designed to assure that exports made under the 
privileged monthly procedure were totally in compliance with the EAR.
    Two commenters recommended that the regulations impose a limit on 
the time that the Government may hold up export shipments for 
inspection. We did not adopt that suggestion because it was beyond the 
scope of the regulations reform exercise. Input from a number of other 
government agencies would be necessary to develop a rational time 
limit.
    One commenter recommended that when the government orders a carrier 
to return or unload a shipment that the government be required to 
notify the exporter. We did not adopt this suggestion. In some cases 
the exporter may be the target of an investigation and a notification 
requirement could jeopardize legitimate law enforcement activities. 
More than one agency has authority to order return or unloading and 
developing a rule would require the coordinated input of several 
agencies. That coordination would be beyond the scope of the 
regulations reform exercise.
    One commenter recommended that we require that exporters show the 
Export Control Classification Number (ECCN) on the SED for all exports. 
We did not adopt this suggestion. Although exporters need to determine 
the proper ECCN in order to determine whether they need an export 
license, requiring them to show that number on SED's for all exports 
would unduly increase the paperwork burden.
    To assist in defining parties to an export transaction, one 
association recommended we adopt as a guide a Power of Attorney 
utilized by Customs. We did not adopt this recommendation. The EAR 
defines parties to a transaction in an adequate manner. Parties to 
transactions additionally are free to adopt any Power of Attorney 
arrangement that addresses pertinent roles and is not inconsistent with 
the EAR or other applicable regulations.
    One commenter questioned the proposed requirement to place the 
various EAR authorizations for each item being exported under its 
corresponding line item description. This commenter pointed out that 
the FTSR requires that same information to be placed in blocks 21 and 
22 on the SED form or continuation sheet. This interim rule adopts the 
FTSR procedure and eliminates the requirement to repeat the 
authorization under the line item description.
    This same commenter also recommended that the ``Conformity'' 
provisions in Sec. 758.4(c)(2)(iii) be changed to allow a name of a 
party other that the licensee/shipper on the SED to be shown on the 
bill of lading as shipper. We did not adopt this recommendation. These 
provisions are designed to assure that new parties are not introduced 
in transactions contrary to the EAR and that exports are completed in 
an orderly and legal manner. Additionally, the situation described may 
be appropriately addressed in the application for license process, by 
showing the foreign subsidiary as exporter/licensee and the United 
States affiliated/related company as agent for the exporter.
    Two commenters recommended eliminating the proposed rule 
requirements concerning commodity descriptions on the SED 
(Sec. 758.3(g)(2)(ii)) and the requirement that a copy of the 
commercial invoice with a DCS be sent to the ultimate consignee 
(Sec. 758.6(c)(4)). They claimed that these were new requirements. We 
did not adopt the recommendations in this interim rule because the 
proposed rule merely retained the requirements of the existing EAR.

Part 760--Restrictive Trade Practices or Boycotts

    This part revises the existing part 769. The recordkeeping 
requirement found in Sec. 760.5(b)(8) of this interim rule requires the 
recipient of records relating to a reportable boycott request to keep 
those records for five years after receipt of the request. The existing 
EAR Sec. 769.6(b)(8) requires the recipient of records relating to a 
reportable boycott request to keep those records for three years after 
receipt of the request.
    Two sections that were reserved in the existing EAR (769.5 and 
769.7) have been removed. As a result of this change, Sec. 769.6 in the 
existing EAR has been renumbered as Sec. 760.5 in this interim rule. In 
addition two grace period provisions in the existing EAR have been 
removed. They are; Sec. 760.2(f)(11) (along with its accompanying 
example xi) in which certain actions to implement letters of credit 
prior to the expirations of grace periods and Sec. 769.8 which 
established a grace period for agreements entered into on or before May 
16, 1977 could be complied with. The last such grace period expired on 
December 31, 1978. Supplement No. 14 which relates to U.S. sanctions 
against South Africa that have been repealed has also been removed and 
subsequent supplements renumbered.
    A new Supplement No. 16 interpreting antiboycott policy in light of 
recent developments in Jordan has been added by this interim rule.
    None of the changes made to this part by this interim rule were 
published in the proposed rule.

Part 762--Recordkeeping

    In this interim rule, this part has been reorganized and revised to 
eliminate the requirement that regulated persons obtain BXA approval 
prior to destroying original documents and replacing them with 
electronic, magnetic, photographic or other images. This interim rule 
also makes it clear that persons required to keep records may always 
keep the records in the form in which that person receives or creates 
it. It extends the recordkeeping period to five years to coincide with 
the applicable statute of limitations and sets standards of legibility 
and retrievability for reproductions that are kept in lieu of 
originals.
    Several commenters objected to the extension of the recordkeeping 
requirement to five years in the

[[Page 12729]]
proposed rule. This interim rule adopts the five year record retention 
period. A record retention period that coincides with the applicable 
statute of limitations is needed to promote effective enforcement. In 
addition, such a retention period benefits firms that comply with the 
regulations because the EAR require that those who export under a 
License Exception justify the use of that exception. Such persons will 
need the records of the transaction to do so.
    Three commenters suggested that recordkeeping requirements be 
eliminated for certain categories of exports that do not require a 
license from BXA. We did not adopt this suggestion. Many transactions 
that are subject to the EAR do not require a license from BXA. 
Comprehensive records are necessary for effective enforcement and 
administration of the EAA and EAR.
    One commenter objected to a requirement in the proposed rule that 
records which are the subject of a request for production of records by 
the government may not be destroyed even if the record retention period 
has otherwise expired. This provision is a requirement under the 
existing EAR and is retained in this interim rule. Enforcement and 
compliance efforts would be undermined if parties were allowed to 
destroy records after they have been notified that those records are 
wanted in connection with an audit or investigation.
    Several commenters recommended that we eliminate the specific 
requirements for legibility and retrievability of reproduced records 
that are kept in lieu of originals that appeared in the proposed rule. 
We did not adopt this suggestion. This interim rule does not impose any 
requirements of legibility on original records. However, standards of 
legibility and retrievability are necessary when the originals are 
destroyed and copies are retained in lieu thereof. BXA will continue to 
review this issue to ascertain if the standards might be simplified 
without compromising record integrity.
    Two commenters recommended that the EAR specifically state that 
records of certain activities of U.S. persons in connection with the 
proliferation controls described in Secs. 734.2(b)(7) and 744.6 are 
subject to the recordkeeping requirement. Although the proposed rule 
stated that all transactions that are subject to the EAR are subject to 
these recordkeeping requirements, we adopted this suggestion to make 
more explicit the fact that activities subject to the proliferation 
controls are covered.

Part 764--Enforcement

    Eleven of the commenters dealt with part 764. This interim rule 
makes numerous changes to the proposed rule based upon these comments.
    This interim rule accepts the suggestion of one commenter and 
revises Sec. 764.2(e) expressly to limit the offense of acting with 
knowledge of a violation to actions that are connected with an item 
that is the object of the violation of the EAA or EAR.
    Section 764.2(j) is revised to remove from the list of violations a 
number of actions characterized as ``trafficking and advertising export 
control documents''. BXA accepted the suggestion that some of the 
restrictions on the creation of an interest in a licensed transaction 
are inconsistent with normal trade practice in financing and insuring 
exports. BXA is eliminating other parts of this section as unnecessary 
because limitations on license transfer and use are effectively covered 
by other EAR provisions, such as Sec. 750.10, and concerns regarding 
disclosure of a person's relationship to a transaction are covered by 
provisions such as Sec. 764.2(g). This interim rule limits 
Sec. 764.2(j) to the offense of license, other export control documents 
or other alteration.
    Some commenters called for distinguishing between ``substantive'' 
and ``minor'' violations. BXA did not adopt this suggestion. BXA 
concludes that such distinctions are not feasible or appropriate with 
respect to the type of activity covered by the EAR.
    Some commenters urged BXA to list factors that would mitigate 
sanctions for violations. BXA did not adopt this suggestion. BXA notes 
that its practice shows that it is open to the consideration of a wide 
range of mitigating factors, and it does not believe that a listing of 
such factors is needed to enhance compliance or to ensure that 
sanctions will be appropriate.
    Some commenters called for BXA to include in the EAR a 
comprehensive denial list that would include the names not only of 
persons denied export privileges by BXA, but of persons covered by 
denial orders or designations by other agencies. This interim rule does 
not contain such a list. BXA cannot make its regulations an official 
repository of legal action by other agencies. BXA will work with other 
agencies to try to improve coordination of and access to the lists.
    This interim rule describes certain measures such as license 
suspensions and temporary denial orders and places them in a new 
Sec. 764.6, entitled ``protective administrative measures''. These 
measures are not punitive, but are intended to protect against activity 
contrary to the purposes of the EAR. Although these measures were 
included in the existing EAR and in the proposed rule, they were not 
all in a single section. Placing these measures in a single section 
distinguishes them from the sanctions which are covered elsewhere in 
part 764.

Part 766--Administration Enforcement Proceedings

    Five commenters specifically addressed part 766. Three of these 
commenters addressed substantially the same points.
    Three commenters called for changes to protect the interests of 
persons BXA seeks to add to a denial order on the basis of relationship 
to the respondent. This interim rule makes three such changes. It 
revises Sec. 766.23 to clarify that prevention of evasion is the basis 
for making an order applicable to a related person, to provide more 
specifically and uniformly for notice to persons that BXA seeks to have 
named as related, and provides that such persons may oppose or appeal 
not only the issue of relationship, but also whether the order is 
justified to prevent evasion. These commenters suggested, further, that 
related persons be allowed to challenge the order on the merits, that 
is, as to whether or not there has been a violation or a temporary 
denial order is necessary in the public interest in order to prevent an 
imminent violation. BXA did not adopt this suggestion. BXA believes 
that it is proper to limit contests on the merits to respondents, as it 
is the alleged conduct of respondents that is the basis for the order.
    One commenter expressed concern that having the Under Secretary 
decide appeals from Administrative Law Judge (ALJ) decisions in 
enforcement proceedings raises doubts about impartiality, due process 
and fairness. This commenter called for direct appeal from the ALJ to 
the U.S. Court of Appeals. No such change has been made, as it would be 
contrary to specific EAA provisions and to general administrative law 
practice that makes final agency action subject to judicial review. An 
ALJ decision cannot be final agency action under 50 U.S.C. app. 2412(c) 
or (d). Moreover, BXA believes that its conduct of administrative 
proceedings has been marked by fairness and the careful observance of 
due process.
    Three commenters called for stating that ``clear and convincing 
evidence'' is required to sustain an administrative enforcement case. 
BXA did not adopt this suggestion. The EAA (50 U.S.C.

[[Page 12730]]
app. 2412(c)) makes the Administrative Procedure Act (5 U.S.C. 556) 
evidence standard (``reliable, probative, and substantial'') 
applicable. BXA does not believe that any different EAR standard is 
needed.
    Three commenters called for detailed provisions on how much 
evidence is needed to support a summary decision under Sec. 766.8.
    BXA did not adopt this suggestion. BXA concludes that the use of 
the standard ``there is no genuine issue as to any material fact'' is 
proper and sufficient.
    Another commenter stated that Sec. 766.24(b) should be revised to 
define the ``imminent violation'' criterion for issuance of a temporary 
denial order as requiring a showing of imminence both in nearness of 
time and in likelihood of occurrence. BXA did not adopt this 
suggestion. BXA retains its longstanding definition from the existing 
EAR, consistent with the legislative history of the 1985 amendments to 
the EAA, that either time or probability imminence will support the 
issuance or renewal of a temporary denial order.
    This interim rule adopts many improvements in drafting clarity and 
precision that were suggested in the comments, along with numerous 
others that BXA developed. This interim rule revises Sec. 766.7 to make 
default procedures available in antiboycott proceedings. There were no 
public comments suggesting this change, but it makes the procedures for 
imposing administrative sanctions and other measures in antiboycott 
cases more consistent with other proceedings under the EAR. Finally, 
BXA decided to remove from this interim rule one provision that 
appeared in the proposed rule even though no comments on it were 
received. This interim rule eliminates a provision from Sec. 766.18 of 
the proposed rule that would have barred reference in a settlement 
order to a finding of a violation, as the content of such an order is 
consensual. This deletion makes this interim rule consistent with the 
existing EAR.

Part 768--Foreign Availability

    Part 768 reflects the provisions described in part 791A of the 
existing EAR. It implements section 5(h) of the Export Administration 
Act (EAA) and contains procedures and criteria relating to 
determinations of foreign availability for national security controlled 
items. It is substantively unchanged from the existing part 791A. This 
revised version contains several technical changes, such as use of the 
term ``claimant'' instead of ``applicant,'' intended to make part 768 
easier to read and understand.
    Only three commenters mentioned this part in their submissions, 
possibly because the Federal Register notice soliciting comments had 
stated that BXA did not intend to make any significant changes in this 
part.
    One commenter questioned why Cuba is included in the definition of 
``controlled countries'' for foreign availability purposes under 
Sec. 768.1(d) and not for general purposes by inclusion in Country 
Group D:1, as described in Supplement No. 1 to part 740. Cuba is a 
``controlled country'' pursuant to determination made by BXA under 
section 5(b) of the EAA. (See Export Administration Annual Report 1994, 
at II-8.) Country Group D:1 does not include countries subject to broad 
based embargoes, such as Cuba and North Korea, even though they are 
controlled countries. This interim rule adds a clarifying notation 
stating that since virtually all exports to Cuba and North Korea 
currently are subject to an embargo, the foreign availability 
procedures do not apply to these two controlled countries. A similar 
notation is included in Supplement No. 1 to part 740.
    Another commenter suggested that Sec. 768.7(d) be revised to 
clearly reflect the provision of section 5(f)(3) of the EAA that ``the 
Secretary shall accept the representations of applicants * * * 
supported by reasonable evidence, unless contradicted by reliable 
evidence * * *''. BXA did not make any revisions because Sec. 768.7 
paragraphs (c), (d)(1), (d)(2), and (d)(3) of this interim Rule already 
implement this provision.
    One comment suggested that the provision in Sec. 768.7(f)((1)(i)(C) 
for submitting foreign availability determinations to COCOM or a 
successor regime was unnecessary and should be deleted. When COCOM 
ceased functioning on March 31, 1994, the United States and other 
member countries agreed to maintain the control lists that were in 
place at that time until a successor regime was in place. A change has 
been made in this interim rule to reflect BXA's intention to conduct 
any necessary consultations with former member countries.
    Another commenter questioned why foreign availability procedures do 
not apply to foreign policy controlled items. Foreign availability is 
always taken into account whenever foreign policy controls are imposed, 
expanded, or extended. Because the purposes of foreign policy controls 
vary, strict procedures for conducting assessments have not been deemed 
to be warranted. Finally, one commenter suggested that part 768 be 
revised to reflect the expanded role of the Strategic Industries and 
Economic Security Office's Economic Analysis Division in considering 
unfair impact, effectiveness of controls, and foreign availability, and 
to discuss how exporters may contribute to this work and analysis. BXA 
will consider such an addition to the EAR in future revisions.

Part 770--Interpretations

    Part 770 contains certain interpretations concerning commodities, 
software, technology, and de minimis exceptions for chemical mixtures. 
These are designed to clarify the scope of the controls. BXA intends to 
add interpretations to this part over time to aid you in interpreting 
the EAR. Since the publication of the proposed rule, BXA has issued 
certain interpretations on the application of the de minimis exclusion 
for certain mixtures of chemicals. Those interpretations are added to 
part 770 in this interim rule.
    Some commenters suggested that the part numbers of this chapter and 
others will overlap with the part numbers of different chapters in 
earlier versions of the EAR and therefore BXA should use both odd and 
even numbers for the parts of this interim rule. BXA does not believe 
that using only even numbers for the parts of this interim rule will 
cause confusion. BXA further believes that is it useful to retain only 
even numbers in this interim rule so as to leave room for future parts 
that cannot now be anticipated.
    Certain commenters urged BXA to add interpretations of certain 
issues; and BXA will review those recommendations for inclusion in the 
future.
    Commenters also asked BXA to include an interpretation of the 
phrase ``specially designed.'' BXA is not responding to this 
recommendation due to pending criminal enforcement action and for other 
reasons.
    This part contains certain interpretations regarding the de minimis 
content of certain chemical mixtures. These reflect amendments to the 
EAR adopted after the publication of the proposed rule.

Part 772--Definitions

    This part defines terms as used in the EAR.
    In response to comments, this interim rule combines the definitions 
part from the proposed rule with the multilaterally-agreed definitions 
found on the Commerce Control List that are found in Supplement No. 3 
to Sec. 799A.1 of the existing EAR. These definitions may be 
distinguished from other definitions by the fact that they appear in 
quotation marks.

[[Page 12731]]


Part 774--The Commerce Control List

    On May 11, 1995, BXA published an advance notice of public 
rulemaking in the Federal Register, (60 FR 25480), soliciting comments 
from industry and interested public on whether and how to conform the 
numbering system used to identify items controlled by the Export 
Administration Regulations, or Export Control Classification Numbers 
(ECCNs), with the numbering system used by the European Union (EU) to 
identify such items.
    BXA received a total of eighteen responses to the May 11 notice. 
Ten commenters responded directly to this notice, while the remaining 
commenters included comments on the May 11 notice with their comments 
on the proposed rule. Additional verbal comments were also provided at 
the town-hall fora conducted throughout the United States by BXA.
    Overall, industry supports harmonizing the U.S. ECCN system with 
the EU numbering system. The following is an analysis of the responses 
to the five questions posed by BXA in the Federal Register notice, 
followed by other general comments.
1. Should the U.S. Harmonize the ECCNs With the EC Numbers and 
Encourage Other Countries To Adopt a Uniform Numbering System?
    Most commenters stated that they were very supportive of adopting 
the EU numbering system. Four stated that if such a change were to be 
made, there should be a grace period during which either the ECCN or EU 
number could be used. One of these commenters stated that the grace 
period should be six months, and another stated that a minimum of nine 
months should be allowed for a smooth transition to the new system. One 
company stated that it would be less costly to plan for such a change 
now rather than sometime in the ``years ahead''. Another commenter 
stated that although the initial computerization of the new numbers 
could be costly, they will be able to use the information to process 
export declarations electronically, which will make processing the 
information much more timely.
    One foreign-based company stated that they do not support 
converting the ECCNs to the EU numbering system because the U.S.-based 
ECCN automatically shows that the item is U.S.-origin, and that there 
are just too many discrepancies between the items controlled by ECCNs 
and the corresponding EU numbers. Another commenter who does not 
support conversion to the EU numbering system stated that the use of a 
common ECCN has little benefit in the export documentation and should 
not be considered an advantage to exporters. This commenter further 
stated that it was only recently that they incurred costs of 
administering the changes BXA made to the ECCNs to implement the 
Coordinating Committee on Multilateral Export Control's (COCOM) ``Core 
List'' in 1991 (56 FR 42824, August 29, 1991), and would not want to do 
it again. Another commenter stated that the ECCN system is a good 
system that works and that they see no advantage of a world-wide system 
in this area.
    One commenter, that supported the conversion of ECCNs to the EU 
system, stated that BXA should not require conversion to the EU system 
until the differences between the existing ECCNs and the numbering 
system used by the EU are resolved, and also until the COCOM successor 
regime and control lists are finalized and all export destinations 
agree to adopt the system. Another commenter echoed this opinion, and 
added that the new U.S. ECCNs should only be developed for U.S.-
controlled items now controlled by the EU. One commenter stated that 
unless the U.S. and EU numbers are identical, there will still be a 
need for exporters to classify U.S. and EU separately.
    BXA agrees that complete harmonization between the new ECCN system 
and the EU system is desirable. Without such harmonization, any 
resulting list may be confusing for industry and difficult to 
implement. For multilaterally controlled items, the new ECCNs described 
in this interim rule are renumbered according to the comparable entry 
on the EU list. The scope of such controls are generally the same on 
both lists, however the style of the text may be different.
    It is important to note that the EU list provides guidance to 
member states on the control parameters for items controlled by on the 
Industrial List, the International Atomic Energy List, Missile 
Technology Control Regime Annex, the Nuclear Supplier's Group, and the 
list of items controlled by the Australia Group. Each EU member 
publishes its own national list to implement such controls and any 
other unilateral controls. Many national lists are therefore different 
from the EU list, except for the scope of multilateral controls. The 
U.S. also uses discretion in developing its national list, the CCL, for 
dual-use items. Certain entries on the CCL have been created for those 
items that are not controlled multilaterally on the EU list. Such items 
are identified an unilateral controls. In those few instances where the 
multilateral entries differ, the U.S. will ask its trading partners to 
adopt the CCL.
2. What are the Specific Implications If We Change the ECCNs To Conform 
With the EC Numbering System? For Example, if You Currently Have 
Computer Programs That Aid in Facilitating Exports and Reexports, What 
Will be the Programming Implications for Your Firm if We Make This 
Change?
    Most of the commenters stated that the reprogramming of computer 
systems would be a significant undertaking to convert to a EU numbering 
system. One commenter stated that they estimate it would take 
approximately 2 person years of effort and $300,000 to change the data 
base and ancillary associated systems worldwide. The time for 
performing this effort would be approximately three to four months. Two 
commenters stated that consideration would need to be given to the 
diversion of human resources from current tasks to the review of entire 
product lines against the proposed new classification numbers. This 
would involve the review of several thousand product part numbers and 
the time required to enter each new EU-based number into the computer 
system. Three commenters remarked on the export control personnel 
retraining requirements requisite to use of the new numbering system. 
Another commenter stated that changes to their current system would be 
minimal, but they are now in the process of upgrading relevant programs 
and processes, and would like to see a change in numbering system now.
    One commenter stated that they currently give dual classifications 
(ECCN and EU number) to items on their product matrices, and that the 
matrices are computerized. Changes to the matrices will be required for 
the implementation of the EAR simplification project, so it would be 
beneficial if the ECCN harmonization could be carried out at the same 
time.
    BXA is sympathetic to the time and cost involved in implementing a 
new numbering system. However, as many companies have stated, the 
benefits of a global numbering system far outweigh the costs of 
implementing such a system. The new ECCNs identified in this interim 
rule implement the first steps toward a global control list.

[[Page 12732]]

3. What Problems Have You Had in the Past in Tracking Two or More 
Numbering Systems for Identical Items Controlled by Two or More 
Countries?
    One commenter stated that a uniform numbering system would 
eliminate a potential area for misunderstanding or confusion in 
references to a specific item while another stated that the current 
need to track multiple numbering systems adds cost and unnecessary 
complexity to their compliance programs. This latter commenter also 
stated that there is added confusion caused by changes on different 
dates by different countries to the various lists. Another commenter 
stated that the lack of correlation between the various lists has made 
it all but impossible to develop a computerized correlation between the 
various numbers that may apply to one unique product. This commenter 
also stated there is no correlation in the EU numbering system for 
ECCNs designated for unilateral controls.
4. What Are the Specific Ways in Which a Uniform Numbering System Would 
Help Your Company?
    Five commenters responded to this question. One commenter stated 
that it would simplify their product matrices, while another two stated 
that it would streamline their training procedures. One of these 
commenters also stated that it would also increase their ability to 
maintain high levels of export control compliance. Another commenter 
agreed that standardization would allow the company to avoid building 
and maintaining cross-reference tables as they communicate order 
requirements and status on U.S. export orders with importing foreign 
entities.
    Another commenter also cited simplification as the major benefit of 
a uniform system, and highlighted the specific benefit of consistency 
in classification of items. Only one commenter stated that a uniform 
numbering system would not benefit their company, but provided no 
further explanation as to why it would not be beneficial.
5. Are There Numbering Systems of Other Countries That You Prefer to 
the EC System? If So, State Which Ones and Exactly How You Would 
Reconcile Any Differences in Scope?
    Two of the ten commenters supported maintaining the current ECCN 
system. Of the seven commenters that specifically supported a unified 
numbering system, none identified a system other than the EU as 
preferable.
    Four commenters provided additional comments other than those 
supporting the four specific questions posed in the May 11 Federal 
Register notice. One commenter, who did not support a conversion to the 
EU numbering system, stated that the fourth and fifth digits of the EU 
number do not provide any real benefit or added clarity. This commenter 
further stated that the alpha-character used at the end of the current 
ECCNs has been useful in internal control procedures. For example, an 
``A'' at the end of a ECCN easily indicates a highly sensitive item, 
while a ``G'' indicates greater range of exportability.
    Two commenters, who were supportive of the EU numbering system, 
also supported the elimination of basket categories. One of these 
commenters stated that the continued use of such categories would 
conflict with the objective of harmonizing the ECCNs with the EU list. 
Another commenter stated that elimination of the ``G'' level basket 
categories was not favorable.
    One commenter also stated that there should be no interim or 
intermediate changes to the ECCN numbering system, and future changes 
to the control list should be effective on the same date in all 
countries that are a party to the control regimes using the list. The 
EU provides guidance to member states for drafting national control 
lists. Each state is responsible for implementing changes to 
multilateral control lists based upon agreements reached by the 
Wassenaar Arrangement, the Missile Technology Control Regime, the 
Nuclear Suppliers Group, and the Australia Group. BXA will continue to 
implement agreements reached by each of the regimes through prompt 
publication in the Federal Register.
    Another commenter suggested that if the United States were to adopt 
the EU numbering system, BXA should clarify whether new control numbers 
(not included on the EU control list) represent new controls, and if 
so, what items are being suggested for control and the policy basis for 
such controls. A comprehensive cross-reference will be included in 
Supplement No. 3 to this part. The Supplement will provide cross-
references for both new format to old format and old to new, so that 
readers will be able to locate new numbers based on their current 
ECCNs. In this manner, readers will be able to determine the origin of 
all numbers that do not currently appear on the EU list. Further, the 
revised CCL implements recent multilateral agreements that have not yet 
been incorporated in the EU list, such as the NSG revisions published 
February 1, 1996 (61 FR 3555).
    Under the new numbering system adopted by this interim rule, it 
will be easy to identify whether an item is controlled multilaterally 
(e.g., for national security, missile technology, nuclear 
nonproliferation, or chemical and biological reasons) or unilaterally, 
based upon the third digit of the number. ECCNs having a ``9'' as their 
third digit (i.e., 5A980, surreptitious listening devices) are controls 
unique to the United States, just as other countries may have their own 
unique controls. Further, Category 10 has been renumbered, and will 
appear as Category 0 in conformance with the EU list. Titles of the 
various categories have also been revised in conformance with the EU.
    This interim rule retains one ``basket'' entry (EAR99), referenced 
at the end of each category in the Commerce Control List, which 
contains all the items that used to be classified under those ECCNs 
ending with ``96G'' and were thus eligible for General License G-DEST 
to most destinations. Items classified as EAR99 are those items not 
specified on the CCL, but still subject to the EAR. Therefore, 
exporters first must determine that their items are not, in fact, on 
the CCL; only then may they classify their items as EAR99.
    As in the existing EAR, terms enclosed in quotation marks (i.e., 
``aircraft'' or ``production'') are those with multilaterally agreed 
definitions that appear throughout the CCL. These definitions, found in 
Supplement No. 3 to part 799A of the existing EAR, are in this interim 
rule integrated into part 772 (Definitions). By contrast, definitions 
or parameters not enclosed in quotation marks and identified by the 
Related Definitions header in individual ECCNs are unique to particular 
entries, and therefore appear only in those entries.
    Administrative Exception Notes, denoting ``favorable 
consideration'' of licenses for certain items to certain destinations 
in the existing Supplement No. 1 to part 799A, became meaningless when 
COCOM disbanded, and they have been removed from the CCL in this 
interim rule.
    With the harmonization of the CCL and the EU list, most items will 
need to be reclassified. Exporter and reexporters may submit requests 
for reclassification beginning on the effective date of this interim 
rule. BXA will publish a list of those ECCNs where reclassification is 
not necessary prior to November 1, 1996.

Forms Supplement

    The new Multipurpose Application Form, BXA-748P, will replace the 
Application for Export License (BXA-622P) and the Request for Reexport 
Authorization (BXA-699P). It will also

[[Page 12733]]
serve as an application for the Special Comprehensive License. 
Additionally, the BXA-748P will accommodate Commerce Classification 
Requests, thus allowing item classifications to be handled 
electronically.
    The BXA-711P replaces BXA-629P, Statement by Ultimate Consignee and 
Purchaser. A letter from the ultimate consignee or purchaser may now be 
substituted for this form, provided the letter contains the same 
information. The BXA-752P will be required as support documentation for 
the Special Comprehensive License, replacing the Statement by Foreign 
Consignee in Support of Special License Application (BXA-6052P).
    The International Import Certificate (BXA-645P/ATF-4522/DSP-53), 
the Delivery Verification Certificate (BXA-647P), and the Notification 
of Delivery Verification Requirement (BXA-648P) remain unchanged. 
Applicants will now submit replacement licenses rather than amendment 
requests when their situations change; therefore, the Request for 
Amendment Action (BXA-685P) will be discontinued.
    Exporters and reexporters may find instructions for completing 
forms in part 748, while applicants for the Special Comprehensive 
License may find instructions in part 752.
    Applicants must begin using the new forms as of June 15, 1996. Due 
to the requirements of electronic submission and processing systems, 
there will be no transition period during which either version of each 
form may be used. Old forms received after the changeover date will be 
returned without action to the applicant. Forms may be obtained from 
U.S. Department of Commerce District Offices or from: Exporter 
Counselling Division, Bureau of Export Administration, Room 1099, U.S. 
Department of Commerce, 14th Street and Pennsylvania Avenue, NW., 
Washington, DC 20230. Telephone (202) 482-4811.

Rulemaking Requirements

    1. For purposes of Executive Order 12866, this interim rule has 
been determined to be significant.
    2. 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. This interim 
rule contains five new collections of information subject to the 
requirements of the Paperwork Reduction Act, 44 U.S.C. ch. 35, which 
were cleared by the Office of Management and Budget. The new 
``Multipurpose Application'' is cleared under OMB Control Number 0694-
0088, the ``Special Comprehensive License'' is cleared under OMB 
Control Number 0694-0089, five year record retention is cleared under 
OMB Control Number 0694-0096, the one-time report on calculations under 
the de minimis rule for software and technology is cleared under OMB 
Control Number 0694-0101, requests for appointment of a Technical 
Advisory Committee is cleared under OMB Control Number 0694-0100, 
miscellaneous activities are cleared under OMB Control Number and 0694-
0102. All other collections of information contained in the rulemaking 
have been previously approved by OMB. Supplement No. 2 to part 730 of 
the EAR contains a table of the current OMB Control Numbers. The public 
reporting burdens for the new collections of information are estimated 
to average 45 minutes for the Multipurpose Application, between 20 and 
40 hours for the Special Comprehensive License, 10 seconds for 
recordkeeping, 25 hours for the one-time report, 5 hours for requests 
for appointment of Technical Advisory Committee, and 5 hours for 
petitions covered under miscellaneous activities. These estimates 
include the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collections of information. Send comments regarding these 
burden estimates or any other aspect of these collections of 
information, including suggestions for reducing the burden, to Larry E. 
Christensen, Director, Regulatory Policy Division, Bureau of Export 
Administration, U.S. Department of Commerce, Washington, D.C. 20230.
    3. For purposes of Executive Order 12612, this interim rule does 
not contain policies with Federalism implications sufficient to warrant 
preparation of a Federalism Assessment.
    4. Pursuant to authority at 5 U.S.C. 553(a)(1) and section 13(a) of 
the Export Administration Act, 50 U.S.C. 2401-2420 et seq., though 
prior notice and an opportunity for public comment are provided, such 
procedures are not required for this regulatory action. As such, no 
Initial or Final Regulatory Flexibility Analysis is required under 
sections 3 and 4 of the Regulatory Flexibility Act, 5 U.S.C. 603(a) and 
604(a), and none has been prepared.
    5. Although the Export Administration Act expired on August 20, 
1994, the President invoked his authority under the International 
Emergency Economic Powers Act, through Executive Order 12924, August 
19, 1994, as extended on August 15, 1995, and determined that, to the 
extent permitted by law, the provisions of the Export Administration 
Act shall be extended so as to continue in full force and effect and 
amend, as necessary, the export control system previously implemented, 
as the Export Administration Regulations, pursuant to the Export 
Administration Act.
    However, because of the importance of the issues raised by these 
regulations, this rule is issued in interim form and comments will be 
considered in the development of final regulations. Accordingly, the 
Department encourages interested persons who wish to comment to do so 
at the earliest possible time to permit the fullest consideration of 
their views.
    The period for submission of comments will close May 24, 1996. The 
Department will consider all comments received before the close of the 
comment period in developing final regulations. Comments received after 
the end of the comment period will be considered if possible, but their 
consideration cannot be assured. The Department will not accept public 
comments accompanied by a request that a part or all of the material be 
treated confidentially because of its business proprietary nature or 
for any other reason. The Department will return such comments and 
materials to the person submitting the comments and will not consider 
them in the development of final regulations. All public comments on 
these regulations will be a matter of public record and will be 
available for public inspection and copying. In the interest of 
accuracy and completeness, the Department requires comments in written 
form.
    Oral comments must be followed by written memoranda, which will 
also be a matter of public record and will be available for public 
review and copying. Communications from agencies of the United States 
Government or foreign governments will not be made available for public 
inspection.
    The public record concerning these regulations will be maintained 
in the Bureau of Export Administration Freedom of Information Records 
Inspection Facility, Room 4525, Department of Commerce, 14th Street and 
Pennsylvania Avenue, N.W., Washington, DC 20230. Records in this 
facility, including written public comments and memoranda summarizing 
the substance of oral communications, may be inspected and copied in 
accordance with regulations published in Part 4 of Title 15 of the Code 
of Federal Regulations.

[[Page 12734]]
Information about the inspection and copying of records at the facility 
may be obtained from Margaret Cornejo, Bureau of Export Administration 
Freedom of Information Officer, at the above address or by calling 
(202) 482-5653.

List of Subjects

15 CFR Part 730

    Administrative practice and procedure, Advisory committees, 
Exports, Foreign trade, Reporting and recordkeeping requirements, 
Strategic and critical materials.

15 CFR Part 732

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 734

    Administrative practice and procedure, Exports, Foreign trade.

15 CFR Part 736

    Exports, Foreign trade.

15 CFR Part 738

    Exports, Foreign trade.

15 CFR Part 740

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 742

    Exports, Foreign trade.

15 CFR Part 744

    Exports, Foreign trade, Reporting and recordkeeping requirements.

15 CFR Part 746

    Embargoes, Exports, Foreign trade, Reporting and recordkeeping 
requirements.

15 CFR Part 748

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 750

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 752

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 754

    Exports, Foreign trade, Forests and forest products, Petroleum, 
Reporting and recordkeeping requirements.

15 CFR Part 756

    Administrative practice and procedure, Exports, Foreign trade, 
Penalties.

15 CFR Part 758

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 760

    Boycotts, Exports, Foreign trade, Reporting and recordkeeping 
requirements.

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Foreign trade, Reporting 
and recordkeeping requirements.

15 CFR Part 764

    Administrative practice and procedure, Exports, Foreign trade, Law 
enforcement, Penalties.

15 CFR Part 766

    Administrative practice and procedure, Confidential business 
information, Exports, Foreign trade, Law enforcement, Penalties.

15 CFR Part 768

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 770

    Exports, Foreign trade.

15 CFR Part 772

    Exports, Foreign trade.

15 CFR Part 774

    Exports, Foreign trade.

    Under authority set forth at 50 U.S.C. 2401 et seq., and for the 
reasons set forth in the preamble, Subchapter C, Chapter 7 of Title 15, 
Code of Federal Regulations is amended as follows:
    1. In Subchapter C, the following parts are redesignated with an A 
as set forth in the table below:

------------------------------------------------------------------------
                 Old part                             New part          
------------------------------------------------------------------------
768.......................................  768A                        
769.......................................  769A                        
770.......................................  770A                        
771.......................................  771A                        
772.......................................  772A                        
773.......................................  773A                        
774.......................................  774A                        
775.......................................  775A                        
776.......................................  776A                        
777.......................................  777A                        
778.......................................  778A                        
779.......................................  779A                        
785.......................................  785A                        
786.......................................  786A                        
787.......................................  787A                        
788.......................................  788A                        
789.......................................  789A                        
790.......................................  790A                        
791.......................................  791A                        
799.......................................  799A                        
------------------------------------------------------------------------

    2. All internal references appearing in newly designated parts 768A 
through 779A, 785A through 791A, and 799A are revised as set forth in 
the redesignation table set forth above.
    3. Effective November 1, 1996, the newly designated parts are 
removed.
    4. Newly designated Sec. 771A.25(d) is removed effective March 25, 
1996.
    5. Parts 730, 732, 734, 736, 738, 740, 742, 744, 746, 748, 750, 
752, 754, 756, 758, 760, 762, 764, 766, 768, 770, 772, and 774 are 
added to read as follows:

PART 730--GENERAL INFORMATION

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

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

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

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

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 
287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; Sec. 201, Pub. L. 104-
58, 109 Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 
2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 
U.S.C. app. 5; E.O. 11912, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 3 
CFR, 1977 Comp., p. 133; E.O. 12058, 3 CFR, 1978 Comp., p. 179; E.O. 
12214, 3 CFR, 1980 Comp., p. 256; E.O. 12851, 3 CFR, 1993 Comp., p. 
608; E.O. 12867, 3 CFR, 1993 Comp., p. 649; E.O. 12918, 3 CFR, 1994 
Comp., p. 899; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3 
CFR, 1994 Comp., p. 950; Notice of

[[Page 12735]]
August 15, 1995 (60 FR 42767, August 17, 1995); E.O. 12981, 60 FR 
62981.


Sec. 730.1  What these regulations cover.

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


Sec. 730.2  Statutory authority.

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


Sec. 730.3  Dual use exports.

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


Sec. 730.4  Other control agencies and departments.

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


Sec. 730.5  Coverage of more than exports.

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


Sec. 730.6  Control purposes.

    The export control provisions of the EAR are intended to serve the 
national security, foreign policy, nonproliferation, and short supply 
interests of the United States and, in some cases, to carry out its 
international obligations. Some controls are designed to restrict 
access to dual use items by countries or persons that might apply such 
items to uses inimical to U.S. interests. These include controls 
designed to stem the proliferation of weapons of mass destruction and 
controls designed to limit the military and terrorism support 
capability of certain countries. The effectiveness of many of the 
controls under the EAR is enhanced by their being maintained as part of 
multilateral control arrangements. Multilateral export control 
cooperation is sought through arrangements such as the Nuclear 
Suppliers Group, the Australia Group, and the Missile Technology 
Control Regime. The EAR also include some export controls to protect 
the United States from the adverse impact of the unrestricted export of 
commodities in short supply.


Sec. 730.7  License requirements and exceptions.

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


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

    (a) How the EAR are organized. The Export Administration 
Regulations (EAR) are structured in a logical manner. In dealing with 
the EAR you may find it helpful to be aware of the overall organization 
of these regulations. In order to determine what the rules are and what 
you need to do, review the titles and the introductory sections of the 
parts of the EAR.

[[Page 12736]]

    (1) How do you go about determining your obligations under the EAR? 
Part 732 of the EAR provides steps you may follow to determine your 
obligations under the EAR. You will find guidance to enable you to tell 
whether or not your transaction is subject to the EAR and, if it is, 
whether it qualifies for a License Exception or must be authorized 
through issuance of a license.
    (2) Are your items or activities subject to the EAR at all? Part 
734 of the EAR defines the items and activities that are subject to the 
EAR. Note that the definition of ``items subject to the EAR'' includes, 
but is not limited to, items listed on the Commerce Control List in 
part 774 of the EAR.
    (3) If subject to the EAR, what do the EAR require? Part 736 of the 
EAR lists all the prohibitions that are contained in the EAR. Note that 
certain prohibitions (General Prohibitions One through Three) apply to 
items as indicated on the CCL, and others (General Prohibitions Four 
through Ten) prohibit certain activities and apply to all items subject 
to the EAR unless otherwise indicated.
    (4) Do you need a license for your item or activity? What policies 
will BXA apply if you do need to submit license application? The EAR 
have four principal ways of describing license requirements:
    (i) The EAR may require a license to a country if your item is 
listed on the CCL and the Country Chart in part 738 of the EAR tells 
that a license is required to that country. Virtually all Export 
Control Classification Numbers (ECCN) on the CCL are covered by the 
Country Chart in part 738 of the EAR. That part identifies the limited 
number of entries that are not included on the Chart. These ECCNs will 
state the specific countries that require a license or refer you to a 
self-contained section, i.e., Short Supply in part 754 of the EAR, or 
Embargoes in part 746 of the EAR. If a license is required, you should 
consult part 740 of the EAR which describes the License Exception that 
may be available for items on the CCL. Part 742 of the EAR describes 
the licensing policies that BXA will apply in reviewing an application 
you file. Note that part 754 of the EAR on short supply controls and 
part 746 on embargoes are self-contained parts that include the 
available exceptions and licensing policy.
    (ii) A license requirement may be based on the end-use or end-user 
in a transaction, primarily for proliferation reasons. Part 744 of the 
EAR describes such requirements and relevant licensing policies and 
includes both restrictions on items and restrictions on the activities 
of U.S. persons.
    (iii) A license is required for virtually all exports to embargoed 
destinations, such as Cuba. Part 746 of the EAR describes all the 
licensing requirements, license review policies and License Exceptions 
that apply to such destinations. If your transaction involves one of 
these countries, you should first look at this part. This part also 
describes controls that may be maintained under the EAR to implement UN 
sanctions.
    (iv) In addition, under Secs. 736.2(b)(9) and (10) of the EAR, you 
may not engage in a transaction knowing a violation is about to occur 
or violate any orders, terms, and conditions under the EAR. Part 764 of 
the EAR describes prohibited transactions with a person denied export 
privileges or activity that violates the terms or conditions of a 
denial order.
    (5) How do you file a license application and what will happen to 
the application once you do file it? What if you need authorization for 
multiple transactions? Parts 748 and 750 of the EAR provide information 
on license submission and processing. Part 752 of the EAR provides for 
a Special Comprehensive License that authorizes multiple transactions. 
If your application is denied, part 756 of the EAR provides rules for 
filing appeals.
    (6) How do you clear shipments with the U.S. Customs Service? Part 
758 of the EAR describes the requirements for clearance of exports.
    (7) Where do you find the rules on restrictive trade practices and 
boycotts? Part 760 of the EAR deals with restrictive trade practices 
and boycotts.
    (8) Where are the rules on recordkeeping and enforcement? Part 762 
of the EAR sets out your recordkeeping requirements, and parts 764 and 
766 of the EAR deal with violations and enforcement proceedings.
    (9) What is the effect of foreign availability? Part 768 of the EAR 
provides rules for determining foreign availability of items subject to 
controls.
    (10) Do the EAR provide definitions and interpretations? Part 770 
of the EAR contains interpretations and part 772 of the EAR lists 
definitions used.
    (b) Why the EAR are so detailed. Some people will find the great 
length of the EAR and their extensive use of technical terms 
intimidating. BXA believes, however, that such detail and precision can 
and does serve the interests of the public. The detailed listing of 
technical parameters in the CCL establishes precise, objective 
criteria. This should, in most cases, enable you to ascertain the 
appropriate control status. Broader, more subjective criteria would 
leave exporters and reexporters more dependent upon interpretations and 
rulings by BXA officials. Moreover, much of the detail in the CCL is 
derived from multilaterally adopted lists, and the specificity serves 
to enhance the uniformity and effectiveness of international control 
practices and to promote a ``level playing field''. The detailed 
presentation of such elements as licensing and export clearance 
procedures enables you to find in one place what you need to know to 
comply with pertinent requirements. Of special importance is the 
detailed listing of License Exception criteria, as these will enable 
you to determine quickly, and with confidence, that you may proceed 
with a transaction without delay. Finally, some of the detail results 
from the need to draft the EAR with care in order to avoid loop-holes 
and to permit effective enforcement.
    (c) Where to get help. Throughout the EAR you will find information 
on offices you can contact for various purposes and types of 
information. General information including; assistance in understanding 
the EAR, information on how to obtain forms, electronic services, 
publications, and information on training programs offered by BXA, is 
available from the Office of Exporter Services at the following 
locations:

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


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

    Functionally, the Bureau of Export Administration is divided into 
two branches, Export Administration and Export Enforcement. Also, BXA 
manages a number of Technical Advisory Committees consisting of 
industry and government representatives which advise and assist BXA and 
other agencies with respect to actions designed to implement the EAR.
    (a) Export Administration. Export Administration implements and

[[Page 12737]]
administers the export controls reflected in the EAR. Export 
Administration consists of five offices located in Washington D.C. and 
two field offices in California under the supervision of the Assistant 
Secretary for Export Administration:
    (1) The Office of Nuclear and Missile Technology Controls is 
responsible for policy and technical issues and license applications 
related to the Nuclear Suppliers Group and the Missile Technology 
Control Regime. This office has responsibility for items associated 
with those regimes, and missile and nuclear related exports and 
reexports subject to the Enhanced Proliferation Control Initiative.
    (2) The Office Chemical/Biological Controls and Treaty Compliance 
is responsible for implementing multilateral export controls under the 
Australia Group. This office has licensing responsibility for items 
associated with the Australia Group and related exports and reexports 
subject to the Enhanced Proliferation Control Initiative.
    (3) The Office of Strategic Trade and Foreign Policy Controls is 
responsible for implementing multilateral export controls dealing with 
conventional arms and related dual use items. This office is also 
responsible for computer export control policies, and implements U.S. 
foreign policy controls (e.g., crime control, anti-terrorism, and 
regional stability). It also has licensing responsibility for items 
controlled for national security and foreign policy reasons.
    (4) The Office of Exporter Services is responsible for the Special 
Comprehensive License, processing and routing all license applications, 
and preparing responses to requests for advisory opinions and commodity 
classifications. This office also provides counselling to exporters and 
reexporters, conducts educational seminars for the business community, 
maintains the Export Administration Regulations, and coordinates the 
operations of two field offices listed in Sec. 730.8(c) of this part.
    (5) The Office of Strategic Industries and Economic Security 
implements programs to ensure the continued health of the U.S. defense 
industrial base, facilitating diversification of U.S. defense related 
industries into civilian markets, and promoting the conversion of 
military enterprises. This office is also responsible for analyzing the 
economic impact of U.S. export controls on industrial competitiveness.
    (b) Export Enforcement. Export Enforcement implements the 
enforcement provisions of the EAR, including part 760 of the EAR 
(Restrictive Trade Practices and Boycotts). This office also conducts 
outreach programs to assist members of the public in understanding 
their obligation under EAR. The Office of Export Enforcement is 
organized into three offices under the supervision of the Assistant 
Secretary for Export Enforcement.
    (1) The Office of Export Enforcement (OEE) is comprised of an 
office in Washington, D.C. and eight field offices. OEE is staffed with 
criminal investigators and analysts. This office investigates 
allegations of violations and supports administrative and criminal 
enforcement proceedings. The addresses and telephone numbers of the 
eight field offices are listed in Sec. 764.5(c)(7) of the EAR.
    (2) The Office of Enforcement Support (OES) is located in 
Washington, D.C. OES supports BXA's preventive enforcement efforts, 
including conducting pre-license checks and post-shipment 
verifications. OES also provides administrative and analytical support 
for OEE.
    (3) The Office of Antiboycott Compliance administers and enforces 
the provisions of part 760 of the EAR (Restrictive Trade Practices and 
Boycotts). It investigates and prepares cases on alleged violations of 
this part.
    (c) Technical Advisory Committees. The Technical Advisory 
Committees (TACs) provide advice and assistance to BXA from U.S. 
industry regarding the creation and implementation of export controls. 
For further information regarding establishment of TACs and other 
information, see Supplement No. 2 to part 730. Existing TACs include 
the following:
    (1) The Computer Systems Technical Advisory Committee;
    (2) The Electronics Technical Advisory Committee;
    (3) The Materials Technical Advisory Committee;
    (4) The Materials Processing Equipment Technical Advisory 
Committee;
    (5) The Regulations and Procedures Technical Advisory Committee;
    (6) The Sensors Technical Advisory Committee;
    (7) The Telecommunications Equipment Technical Advisory Committee; 
and
    (8) The Transportation and Related Equipment Technical Advisory 
Committee.


Sec. 730.10  Advisory information.

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

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

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

------------------------------------------------------------------------
                                            15 CFR part or section where
          Current OMB control No.            collections of information 
                                             are identified or described
------------------------------------------------------------------------
0694-0001.................................  Sec.  748.12(d) of the EAR. 
0694-0004.................................  Part 768 of the EAR.        
0694-0008.................................  Sec.  748.13, Supplement No.
                                             5 to part 748 of the EAR.  
0694-0009.................................  Sec.  748.10(e) of the EAR. 
0694-0012.................................  Part 760 and Sec.  762.2(b) 
                                             of the EAR.                
0694-0013.................................  Part 774 of the EAR.        
0694-0015.................................  Sec.  773.3 of the EAR.     
0694-0016.................................  Secs.  748.13 and 762.2(b)  
                                             of the EAR.                
0694-0017.................................  Sec.  748.10 of the EAR.    
0694-0021.................................  Secs.  748.11 and 762.2(b)  
                                             of the EAR.                
0694-0023.................................  Secs.  740.3(d) and 740.4(c)
                                             of the EAR.                
0694-0025.................................  Secs.  754.4 and 762.2(b) of
                                             the EAR.                   
0694-0026.................................  Sec.  754.3 of the EAR.     
0694-0027.................................  Sec.  754.2 of the EAR.     
0694-0029.................................  Sec.  740.4(a) of the EAR.  
0694-0030.................................  Supplement No. 2 to part    
                                             748, paragraph (p) of the  
                                             EAR.                       
0694-0031.................................  Sec.  750.9 of the EAR.     
0694-0032.................................  Sec.  748.4(d)(2) of the    
                                             EAR.                       
0694-0033.................................  Secs.  740.7(b) and 762.2(b)
                                             of the EAR.                
0694-0038.................................  Sec.  758.6(e)(2) of the    
                                             EAR.                       
0694-0040.................................  Secs.  758.5(c)(2) and 758.8
                                             of the EAR.                
0694-0047.................................  Supplement No. 2 to part    
                                             748, paragraph (o)(2) of   
                                             the EAR.                   
0694-0048.................................  Sec.  748.3 of the EAR.     
0694-0050.................................  Sec.  752.5(c)(5) of the    
                                             EAR.                       

[[Page 12738]]
                                                                        
0694-0051.................................  Sec.  750.10 of the EAR.    
0694-0058.................................  Secs.  762.2(b) and 764.5 of
                                             the EAR.                   
0694-0064.................................  Secs.  748.9 and 762.2(b) of
                                             the EAR.                   
0694-0065.................................  Sec.  754.4(c) of the EAR of
                                             the EAR.                   
0694-0073.................................  Sec.  742.12, Supplement No.
                                             3 to part 742, and Sec.    
                                             762.2(b) of the EAR.       
0694-0078.................................  Supplement No. 1 to part 774
                                             of the EAR.                
0694-0086.................................  Supplement No. 1 to part 774
                                             of the EAR.                
0694-0088.................................  Parts 746, 748, and 752;    
                                             Sec.  762.2(b) of the EAR. 
0694-0089.................................  Part 752 and Sec.  762.2(b) 
                                             of the EAR.                
0694-0093.................................  Secs.  748.10 and 762.2(b)  
                                             of the EAR.                
0694-0094.................................  Part 758 of the EAR of the  
                                             EAR.                       
0694-0095.................................  Secs.  740.7(a)(3)(ii) and  
                                             758.1(d) of the EAR.       
0694-0096.................................  Part 760, Sec.  762.6(a) of 
                                             the EAR.                   
0694-0097.................................  Secs.  752.15(b), 758.6, and
                                             762.2(b) of the EAR.       
0694-0102.................................  Secs.  754.6 and 754.7 of   
                                             the EAR.                   
0694-0101.................................  Sec.  734.4 of the EAR.     
0694-0100.................................  Supplement No. 1 to part    
                                             730.                       
0607-0001.................................  Sec.  758.2(m) of the EAR.  
0607-0018.................................  Secs.  740.1(d),            
                                             740.3(a)(3), 752.7(b), Sec.
                                              752.15(a) of the EAR.     
                                            Secs.  754.2(h) and (i),    
                                             754.4(c) 758.1, Secs.      
                                             758.2(m) and 758.3 of the  
                                             EAR.                       
0607-0152.................................  Secs.  740.1(d),            
                                             740.3(a)(3), 752.7(b),     
                                             Secs.  752.15(a) of the    
                                             EAR.                       
                                            Secs.  754.2(h) and (i),    
                                             754.4(c), 758.1, Secs.     
                                             758.2(m), and 758.3 of the 
                                             EAR.                       
------------------------------------------------------------------------



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

    (a) Purpose. The purpose of this Supplement is to describe the 
procedures and criteria for the establishment and operation of 
Technical Advisory Committees.
    (b) Technical advisory committees. Any producer of articles, 
materials, or supplies, including technology, software, and other 
information, that are subject to export controls, or are being 
considered for such controls because of their significance to the 
national security of the United States, may request the Secretary of 
Commerce to establish a technical advisory committee, under the 
provisions of section 5(h) of the Export Administration Act of 1979, 
as amended (EAA) to advise and assist the Department of Commerce and 
other appropriate U.S. Government agencies or officials with respect 
to questions involving technical matters; worldwide availability and 
actual utilization of production technology; licensing procedures 
that affect the level of export controls applicable to a clearly 
defined grouping of articles, materials, or supplies, including 
technology, software, or other information; and exports and 
reexports subject to all controls that the United States maintains 
including proposed revisions of any such controls. If producers of 
articles, materials, or supplies, including technology, software, 
and other information, that are subject to export controls because 
of their significance to the national security of the United States, 
wish a trade association or other representative to submit a written 
request on their behalf for the appointment to a TAC, such request 
shall be submitted in accordance with paragraph (b)(4) of this 
Supplement.
    (1) Form and substance of requests. Each request for the 
appointment of a TAC shall be submitted in writing to: Assistant 
Secretary for Export Administration, P.O. Box 273, Washington, DC 
20044.
    The request shall include:
    (i) A description of the articles, materials, or supplies 
including technology and software, in terms of a clear, cohesive 
grouping (citing the applicable Export Control Classification 
Numbers where practical);
    (ii) A statement of the reasons for requesting the appointment 
of a TAC; and
    (iii) Any information in support of any contention that may be 
made that the request meets the criteria described in paragraph 
(b)(2) of this Supplement.
    (2) Consideration of request for establishment of a TAC. The 
Department of Commerce will review all requests for the 
establishment of a TAC to determine if the following criteria are 
met:
    (i) That a substantial segment of the industry producing the 
specified articles, materials, or supplies including technology 
desires such a committee; and
    (ii) That the evaluation of such articles, materials, or 
supplies including technology and software for export control 
purposes is difficult because of questions involving technical 
matters, worldwide availability and actual utilization of production 
and software technology, or licensing procedures.
    (3) Requests by a substantial segment of an industry. In 
determining whether or not a substantial segment of any industry has 
requested the appointment of a TAC, the Department of Commerce will 
consider:
    (i) The number of persons or firms requesting the establishment 
of a TAC for a particular grouping of commodities, software and 
technology in relation to the total number of U.S. producers of such 
items; and
    (ii) The volume of annual production by such persons or firms of 
each item in the grouping in relation to the total U.S. production. 
Generally, a substantial segment of an industry (for purposes of 
this Supplement) shall consist of:
    (A) Not less than 30 percent of the total number of U.S. 
producers of the items concerned; or
    (B) Three or more U.S. producers who produce a combined total of 
not less than 30 percent of the total U.S. annual production, by 
dollar value of the items concerned; or
    (C) Not less than 20 percent of the total number of U.S. 
producers of the items concerned, provided that the total of their 
annual production thereof is not less than 20 percent of the total 
U.S. annual production, by dollar value.
    (iii) If it is determined that a substantial segment of the 
industry concerned has requested the establishment of a TAC 
concerning a specific grouping of items that the Department of 
Commerce determines difficult to evaluate for export control 
purposes, BXA will establish and use the TAC requested.
    (4) Requests from trade associations or other representatives. 
Requests from trade associations or other representatives of U.S. 
producers for the establishment of a TAC must comply with the 
provisions of paragraphs (b) (1) through (3) of this Supplement. In 
addition, in order to assist BXA in determining whether the criteria 
described in paragraph (b)(3) of this Supplement have been met, a 
trade association or other representative submitting a request for 
the establishment of a TAC should include the following information:
    (i) The total number of firms in the particular industry;
    (ii) The total number of firms in the industry that have 
authorized the trade association or other representative to act in 
their behalf in this matter;
    (iii) The approximate amount of total U.S. annual production by 
dollar value of the items concerned produced by those firms that 
have authorized the trade association or other representative to act 
in their behalf; and
    (iv) A description of the method by which authorization to act 
on behalf of these producers was obtained.
    (5) Nominations for membership on TACs. When the Department of 
Commerce determines that the establishment of a TAC is warranted, it 
will request nominations for membership on the committee among the 
producers of the items and from any other sources that may be able 
to suggest well-qualified nominees.
    (6) Selection of industry members of committee. Industry members 
of a TAC will be selected by the Department of Commerce from a list 
of the nominees who have indicated their availability for service on 
the committee. To the extent feasible, the Department of Commerce 
will select a committee balanced to represent all significant facets 
of the industry involved, taking into consideration such factors as 
the size of the firms, their geographical distribution, and their 
product lines. No industry representative shall serve on a TAC for 
more than four consecutive years. The membership of a member who is 
absent from four consecutive meetings shall be terminated.
    (7) Government members. Government members of a TAC will be 
selected by the Department of Commerce from the agencies having an 
interest in the subject matter concerned.
    (8) Invitation to serve on committee. Invitations to serve on a 
TAC will be sent by letter to the selected nominees.
    (9) Election of Chair. The Chair of each TAC shall be elected by 
a vote of the majority of the members of the committee present and 
voting.
    (c) Charter. (1) No TAC established pursuant to this Supplement 
shall meet or take any action until an advisory committee charter 
has been filed with the Assistant

[[Page 12739]]
Secretary for Export Administration of the Department of Commerce 
and with the standing committees of the Senate and of the House of 
Representatives having legislative jurisdiction over the Department. 
Such charter shall contain the following information:
    (i) The committee's official designation;
    (ii) The committee's objectives and the scope of its activities;
    (iii) The period of time necessary for the committee to carry 
out its purposes;
    (iv) The agency or official to whom the committee reports;
    (v) The agency responsible for providing the necessary support 
for the committee;
    (vi) A description of the duties for which the committee is 
responsible, and, if such duties are not solely advisory, a 
specification of the authority for such functions;
    (vii) The estimated annual operating costs in dollars and years 
for such committee;
    (viii) The estimated number and frequency of committee meetings;
    (ix) The committee's termination date, if less than two years 
from the date of the committee's establishment; and
    (x) The date the charter is filed.
    (d) Meetings. (1) Each TAC established under the provisions of 
the EAA and paragraph (b) of this Supplement shall meet at least 
once every three months at the call of its Chair unless it is 
specifically determined by the Chair, in consultation with other 
members of the committee, that a particular meeting is not 
necessary.
    (2) No TAC may meet except at the call of its Chair.
    (3) Each meeting of a TAC shall be conducted in accordance with 
an agenda approved by a designated Federal government employee.
    (4) No TAC shall conduct a meeting in the absence of a 
designated Federal government employee who shall be authorized to 
adjourn any advisory committee meeting, whenever the Federal 
government employee determines adjournment to be in the public 
interest.
    (e) Public notice. Notice to the public of each meeting of a TAC 
will be issued at least 20 days in advance and will be published in 
the Federal Register. The notice will include the time and place of 
the meeting and the agenda.
    (f) Public attendance and participation. (1) Any member of the 
public who wishes to do so may file a written statement with any TAC 
before or after any meeting of a committee.
    (2) A request for an opportunity to deliver an oral statement 
relevant to matters on the agenda of a meeting of a TAC will be 
granted to the extent that the time available for the meeting 
permits. A committee may establish procedures requiring such persons 
to obtain advance approval for such participation.
    (3) Attendance at meetings of TACs will be open to the public 
unless it is determined pursuant to section 10(d) of the Federal 
Advisory Committee Act to be necessary to close all, or some 
portion, of the meeting to the public. A determination that a 
meeting or portion thereof be closed to the public may be made if 
all or a specific portion of a meeting of a TAC is concerned with 
matters described in section 552(b) of Title 5, U.S.C.
    (4) Participation by members of the public in open TAC meetings 
or questioning of committee members or other participants shall not 
be permitted except in accordance with procedures established by the 
committee.
    (5) Every effort will be made to accommodate all members of the 
public who wish to attend.
    (g) Minutes. (1) Detailed minutes of each meeting of each TAC 
will be kept and will contain a record of the persons present, a 
complete and accurate description of the matters discussed and 
conclusions reached, and copies of all reports received, issued, or 
approved by the TAC.
    (2) The accuracy of all the minutes will be certified to by the 
TAC Chair.
    (h) Records. (1) Subject to section 552 of Title 5, U.S.C. and 
Department of Commerce Administrative Order 205-12, ``Public 
Information,'' and ``Public Information'' regulations issued by the 
Department of Commerce that are contained in 15 CFR part 4, Subtitle 
A, the records, reports, transcripts, minutes, appendices, working 
papers, draft, studies, agenda, or other documents that were made 
available to or prepared for or by each TAC will be available for 
public inspection and copying.
    (2) Each TAC will prepare once each year a report describing its 
membership, functions, activities, and such related matters as would 
be informative to the public consistent with the policy of section 
552(b) of Title 5, U.S.C.
    (3)(i) Requests for records should be addressed to: Bureau of 
Export Administration, Freedom of Information, Records Inspection 
Facility, U.S. Department of Commerce, Room 4513, Washington, DC 
20230, Telephone (202) 482-2593.
    (ii) Rules concerning the use of the Records Inspection Facility 
are contained in 15 CFR part 4, Subtitle A, or may be obtained from 
this facility.
    (i) Compensation. If the Department of Commerce deems it 
appropriate, a member of a TAC may be reimbursed for travel, 
subsistence, and other necessary expenses incurred in connection 
with the member's duties.
    (j) Scope of advisory committee functions. All TACs are limited 
to the functions described in their charters.
    (k) Duration of committees. Each TAC will terminate at the end 
of two years from the date the committee was established or two 
years from the effective date of its most recent extension, 
whichever is later. Committees may be continued only for successive 
two-year periods by appropriate action taken by the authorized 
officer of the Department of Commerce prior to the date on which 
such advisory committee would otherwise terminate. TACs may be 
extended or terminated only after consultation with the committee.
    (l) Miscellaneous. (1) TACs established in accordance with 
paragraph (b) of this supplement must conform to the provisions of 
the Federal Advisory Committee Act (Pub. L. 92-463), Office of 
Management and Budget Circular A-63 (Revision of March 1974), 
``Advisory Committee Management,'' Department of Commerce 
Administrative Order 205-12, ``Public Information,'' the applicable 
provisions of the EAA, and any other applicable Department of 
Commerce regulations or procedures affecting the establishment or 
operation of advisory committees.
    (2) Whenever the Department of Commerce desires the advice or 
assistance of a particular segment of an industry with respect to 
any export control problem for which the service of a TAC, as 
described in paragraph (b) of this Supplement is either unavailable 
or impracticable, an advisory committee may be established pursuant 
to the provisions of section 9 of the Federal Advisory Committee 
Act. Such committees will be subject to the requirements of the 
Federal Advisory Committee Act, OMB Circular A-63 (Revision of March 
1974), ``Advisory Committee Management,'' Department of Commerce 
Administrative Order 205-12, ``Public Information,'' and any other 
applicable Department of Commerce regulations or procedures 
affecting the establishment or operation of advisory committees.
    (3) Nothing in the provisions of this Supplement shall be 
construed to restrict in any manner the right of any person or firm 
to discuss any export control matter with the Department of Commerce 
or to offer advice or information on export control matters. 
Similarly, nothing in these provisions shall be construed to 
restrict the Department of Commerce in consulting any person or firm 
relative to any export control matter.

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

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

Defense Services and Defense Articles

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

Drugs, Chemicals and Precursors

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

Fish and Wildlife Controls; Endangered Species

    Department of the Interior, Chief Office of Management 
Authority, Tel. (703) 358-2093, Fax: (703) 358-2280.
    50 CFR 17.21, 17.22, 17.31, 17.32.
    
[[Page 12740]]


Foreign Assets and Transactions Controls

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

Medical Devices

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

Natural Gas and Electric Power

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

Nuclear Materials and Equipment

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

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

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

Ocean Freight Forwarders

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

Patent Filing Data Sent Abroad

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

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

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

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

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

PART 732--STEPS FOR USING THE EAR

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

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

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 732.1  Steps overview.

    (a)(1) Introduction. In this part, references to the EAR are 
references to 15 CFR chapter VII, subchapter C. This part is intended 
to help you determine your obligations under the EAR by listing logical 
steps in Sec. 732.2 through Sec. 732.5 of this part that you can take 
in reviewing these regulations. By cross-references to the relevant 
provisions of the EAR, this part describes the suggested steps for you 
to determine applicability of the following:
    (i) The scope of the EAR (part 734 of the EAR);
    (ii) Each of the general prohibitions (part 736 of the EAR);
    (iii) The License Exceptions (part 740 of the EAR); and
    (iv) Other requirements such as clearing your export with the U.S. 
Customs Service, keeping records, and completing and documenting 
license applications.
    (2) These steps describe the organization of the EAR, the 
relationship among the provisions of the EAR, and the appropriate order 
for you to consider the various provisions of the EAR.
    (b) Facts about your transaction. The following five types of facts 
determine your obligations under the EAR and will be of help to you in 
reviewing these steps:
    (1) What is it? What an item is, for export control purposes, 
depends on its classification, which is its place on the Commerce 
Control List (see part 774 of the EAR).
    (2) Where is it going? The country of ultimate destination for an 
export or reexport also determines licensing requirements (see parts 
738 and 774 of the EAR concerning the Country Chart and the Commerce 
Control List).
    (3) Who will receive it? The ultimate end-user of your item cannot 
be a bad end-user. See General Prohibition Four (Denial Orders) in 
Sec. 736.2(b)(4) and parts 744 and 764 of the EAR for a reference to 
the list of persons you may not deal with.
    (4) What will they do with it? The ultimate end-use of your item 
cannot be a bad end-use. See General Prohibition Five (End-Use End-
User) in Sec. 736.2(b)(5) and part 744 of the EAR for general end-use 
and end-user restrictions.
    (5) What else do they do? Conduct such as contracting, financing, 
and freight forwarding in support of a proliferation project (as 
described in Sec. 744.6 of the EAR) may prevent you from dealing with 
someone.
    (c) Are your items and activities subject to the EAR? You should 
first determine whether your commodity, software, or technology is 
subject to the EAR (see part 734 of the EAR concerning scope), and 
Steps 1 through 6 help you do that. For exports from the United States, 
only Steps 1 and 2 are relevant. If you already know that your item or 
activity is subject to the EAR, you should go on to consider the ten 
general prohibitions in part 736 of the EAR. If your item or activity 
is not subject to the EAR, you have no obligations under the EAR and 
may skip the remaining steps.
    (d) Does your item or activity require a license under one or more 
of the ten general prohibitions?
    (1) Brief summary of the ten general prohibitions. The general 
prohibitions are found in part 736 of the EAR and referred to in these 
steps. They consist, very briefly, of the following:
    (i) General Prohibition One (Exports and Reexports): Export and 
reexport of controlled items to listed countries.
    (ii) General Prohibition Two (Parts and Components Reexports): 
Reexport and export from abroad of foreign-made items incorporating 
more than a de minimis amount of controlled U.S. content.
    (iii) General Prohibition Three (Foreign-produced Direct Product 
Reexports): Reexport and export from abroad of the foreign-produced 
direct product of U.S. technology and software.
    (iv) General Prohibition Four (Denial Orders): Engaging in actions 
prohibited by a denial order.
    (v) General Prohibition Five (End-Use End-User): Export or reexport 
to prohibited end-user or end-users.
    (vi) General Prohibition Six (Embargo): Export or reexport to 
embargoed destinations.
    (vii) General Prohibition Seven (U.S. Person Proliferation 
Activity): Support of proliferation activities.
    (viii) General Prohibition Eight (In-Transit): In-transit shipments 
and items to be unladen from vessels and aircraft.
    (ix) General Prohibition Nine (Orders, Terms and Conditions): 
Violation of any orders, terms, or conditions.
    (x) General Prohibition Ten (Knowledge Violation to Occur): 
Proceeding with transactions with knowledge that a violation has 
occurred or is about to occur.
    (2) Controls on items on the Commerce Control List (CCL). If your 
item or activity is subject to the EAR, you should determine whether 
any one

[[Page 12741]]
or more of the ten general prohibitions require a license for your 
export, reexport, or activity. Steps 7 through 11 refer to 
classification of your item on the Commerce Control List (CCL) (part 
774 of the EAR) and how to use the Country Chart (Supplement No. 1 to 
part 738 of the EAR) to determine whether a license is required based 
upon the classification of your item. These steps refer to General 
Prohibitions One (Exports and Reexports), Two (Parts and Components 
Reexports), and Three (Foreign-Produced Direct Product Reexports) for 
all countries except: Cuba, Iran, Iraq, Libya, and North Korea. For 
these countries, you may skip Steps 7 through 11 and go directly to 
Step 12.
    (3) Controls on activities. Steps 12 through 18 refer to General 
Prohibitions Four through Ten. Those general prohibitions apply to all 
items subject to the EAR, not merely those items listed on the CCL in 
part 774 of the EAR. For example, they refer to the general 
prohibitions for persons denied export privileges, prohibited end-uses 
and end-users, embargoed countries (e.g., Cuba, Iran, Iraq, Libya, and 
North Korea), prohibited activities of U.S. persons in support of 
proliferation of weapons of mass destruction, prohibited unlading of 
shipments, compliance with orders, terms and conditions, and activities 
when a violation has occurred or is about to occur.
    (4) General prohibitions. If none of the ten general prohibitions 
applies, you should skip the steps concerning License Exceptions and 
for exports from the United States, review Steps 27 through 29 
concerning Shipper's Export Declarations to be filed with the U.S. 
Customs Service, Destination Control Statements for export control 
documents, and recordkeeping requirements.
    (e) Is a License Exception available to overcome the license 
requirement? If you decide by reviewing the CCL in combination with the 
Country Chart that a license is required for your destination, you 
should determine whether a License Exception will except you from that 
requirement. Steps 20 through 24 help you determine whether a License 
Exception is available. Note that generally License Exceptions are not 
available to overcome General Prohibitions Four through Ten. However, 
selected License Exceptions for embargoed destinations are specified in 
part 746 of the EAR and License Exceptions for short supply controls 
are specified in part 754 of the EAR. If a License Exception is 
available and the export is from the United States, you should review 
Steps 26 through 28 concerning Shipper's Export Declarations to be 
filed with the U.S. Customs Service, Destination Control Statements for 
export control documents and recordkeeping requirements. If a License 
Exception is not available, go on to Steps 25 through 29.
    (f) How do you apply for a license? If you must file a license 
application, you should review the requirements of part 748 of the EAR 
as suggested by Step 26. Then you should review Steps 27 through 29 
concerning Shipper's Export Declarations to be filed with the U.S. 
Customs Service, Destination Control Statements for export control 
documents, and recordkeeping requirements.


Sec. 732.2  Steps regarding scope of the EAR.

    Steps 1 through 6 aid you in determining the scope of the EAR.
    (a) Step 1: Items subject to the exclusive jurisdiction of another 
Federal agency. This step is relevant for both exports and reexports. 
Determine whether your item is subject to the exclusive jurisdiction of 
another Federal Agency as provided in Sec. 734.3 of the EAR.
    (1) If your item is subject to the exclusive jurisdiction of 
another Federal agency, comply with the regulations of that agency. You 
need not comply with the EAR and may skip the remaining steps.
    (2) If your item is not subject to the exclusive jurisdiction of 
another federal agency, then proceed to Step 2 in paragraph (b) of this 
section.
    (b) Step 2: Publicly available technology and software. This step 
is relevant for both exports and reexports. Determine if your 
technology or software is publicly available as defined and explained 
at part 734 of the EAR. Supplement No. 1 to part 734 of the EAR 
contains several practical examples describing publicly available 
technology and software that is outside the scope of the EAR. The 
examples are illustrative, not comprehensive.
    (1) If your technology or software is publicly available, and 
therefore outside the scope of the EAR, you may proceed with the export 
or reexport. You have no obligations under the EAR and need not comply 
with the EAR. You may skip the remaining steps.
    (2) If your technology or software is not publicly available and 
you are exporting from the United States, skip to Step 7 in 
Sec. 732.3(b) of this part concerning the general prohibitions.
    (3) If you are exporting items from a foreign country, you should 
then proceed to Step 3 in paragraph (c) of this section and the other 
steps concerning the scope of the EAR.
    (c) Step 3: Reexport of U.S.-origin items. This step is appropriate 
only for reexporters. For an item in a foreign country, you should 
determine whether the item is of U.S. origin. If it is of U.S.-origin, 
skip to Step 7 in Sec. 732.3(b) of this part. If it is not of U.S. 
origin, then proceed to Step 4 in paragraph (d) of this section.
    (d) Step 4: Foreign-made items incorporating less than the de 
minimis level of U.S. parts, components, and materials. This step is 
appropriate only for items that are made outside the United States.
    (1) For an item made in a foreign country, you should determine 
whether controlled U.S.-origin parts, components, or materials are 
incorporated as provided in Sec. 734.4 of the EAR. Also, determine the 
value of the U.S.-origin controlled content as provided in Supplement 
No. 2 to part 734 of the EAR.
    (2) To determine the value of the U.S.-origin controlled content, 
you should classify the U.S.-origin content on the CCL, determine those 
items that would require a license from BXA for reexport to the 
ultimate destination of the foreign-made product if such parts, 
components, or materials were reexported to that destination in the 
form received, and divide the total value of the controlled U.S. parts, 
components, and materials incorporated into the foreign-made item by 
the sale price of the foreign-made item.
    (3) If no U.S. parts, components, or materials are incorporated or 
if the incorporated U.S. parts, components, and materials are below the 
de minimis level described in Sec. 734.4 of the EAR, then the foreign-
made item is not subject to the EAR by reason of the parts and 
components rule, the classification of a foreign-made item is 
irrelevant in determining the scope of the EAR, and you should skip 
Step 4 and go on to consider Step 5 regarding the foreign-produced 
direct product rule.
    (4) If controlled parts, components, or materials are incorporated 
and are above the de minimis level, then you should go on to Step 5.
    (e) Step 5: Foreign-made items incorporating more than the de 
minimis level of U.S. parts, components, or materials. This step is 
appropriate only for foreign-made items incorporating certain U.S. 
parts. If the incorporated U.S. parts exceed the relevant de minimis 
level, then your export from abroad is subject to the EAR. You then 
should skip to Step 7 at Sec. 732.3 of this part and consider the steps 
regarding all other general prohibitions, License Exceptions, and other 
requirements.

[[Page 12742]]

    (f) Step 6: Foreign-made items produced with certain U.S. 
technology for export to specified destinations. This step is 
appropriate for foreign-made items in foreign countries.
    (1) If your foreign-produced item is described in an entry on the 
CCL and the Country Chart requires a license to your export or reexport 
destination for national security reasons, you should determine whether 
your item is subject to General Prohibition Three (Foreign-Produced 
Direct Product Reexports) (Sec. 736.2(b)(3) of the EAR). Your item is 
subject to the EAR if it is captured by General Prohibition Three 
(Foreign-Produced Direct Product Reexports), and that prohibition 
applies if your transaction meets each of the following conditions:
    (i) Country scope of prohibition. Your export or reexport 
destination for the direct product is Cuba, North Korea, Libya, or a 
destination in Country Group D:1 (see Supplement No. 1 to part 740 of 
the EAR) (reexports of foreign-produced direct products exported to 
other destinations are not subject to General Prohibition Three);
    (ii) Scope of technology or software used to create direct products 
subject to the prohibition. Technology or software that was used to 
create the foreign-produced direct product, and such technology or 
software that was subject to the EAR and required a written assurance 
as a supporting document for a license or as a precondition for the use 
of License Exception TSR at Sec. 740.3(d) of the EAR (reexports of 
foreign-produced direct products created with other technology and 
software are not subject to General Prohibition Three); and
    (iii) Scope of direct products subject to the prohibition. The 
foreign-produced direct products are subject to national security 
controls as designated on the proper ECCN of the Commerce Control List 
in part 774 of the EAR (reexports of foreign-produced direct products 
not subject to national security controls are not subject to General 
Prohibition Three).
    (2) License Exceptions. Each License Exception described in part 
740 of the EAR overcomes this General Prohibition Three if all terms 
and conditions of a given License Exception are met by the exporter or 
reexporter.
    (3) Subject to the EAR. If your item is captured by the foreign-
produced direct product control at General Prohibition Three, then your 
export from abroad is subject to the EAR. You should next consider the 
steps regarding all other general prohibitions, License Exceptions, and 
other requirements. If your item is not captured by General Prohibition 
Three, then your export from abroad is not subject to the EAR. You have 
completed the steps necessary to determine whether your transaction is 
subject to the EAR, and you may skip the remaining steps. Note that in 
summary, items in foreign countries are subject to the EAR when they 
are:
    (i) U.S.-origin commodities, software and technology unless 
controlled for export exclusively by another Federal agency or unless 
publicly available;
    (ii) Foreign-origin commodities, software, and technology that are 
within the scope of General Prohibition Two (Parts and Components 
Reexports), or General Prohibition Three (Foreign-Produced Direct 
Product Reexports). (However, such foreign-made items are also outside 
the scope of the EAR if they are controlled for export exclusively by 
another Federal agency or unless publicly available.)


Sec. 732.3  Steps regarding the ten general prohibitions.

    (a) Introduction. If your item or activity is subject to the scope 
of the EAR, you should then consider each of the ten general 
prohibitions listed in part 736 of the EAR. General Prohibitions One 
((Exports and Reexports), Two (Parts and Components Reexports), and 
Three (Foreign-Produced Direct Product Reexports) (Sec. 736.2(b) (1), 
(2), and (3) of the EAR) are product controls that are shaped and 
limited by parameters specified on the CCL and Country Chart. General 
Prohibitions Four through Ten are prohibitions on certain activities 
that are not allowed without authorization from BXA, and these 
prohibitions apply to all items subject to the EAR unless otherwise 
specified (Sec. 736.2(b) (4) through (10) of the EAR).
    (b) Step 7: Classification. (1) You should classify your items in 
the relevant entry on the CCL, and you may do so on your own without 
the assistance of BXA. You are responsible for doing so correctly, and 
your failure to correctly classify your items does not relieve you of 
the obligation to obtain a license when one is required by the EAR.
    (2) You have a right to request the applicable classification of 
your item from BXA, and BXA has a duty to provide that classification 
to you. For further information on how to obtain classification 
assistance from BXA, see part 748 of the EAR.
    (3) For items subject to the EAR but not listed on the CCL, the 
proper classification is EAR99. This number is a ``basket'' for items 
not specified under any CCL entry and appears at the end of each 
Category on the CCL.
    (c) Step 8: Country of ultimate destination. You should determine 
the country of ultimate destination. The country of destination 
determines the applicability of several general prohibitions, License 
Exceptions, and other requirements. Note that part 754 of the EAR 
concerning short supply controls is self-contained and is the only 
location in the EAR that contains both the prohibitions and exceptions 
applicable to short supply controls.
    (d) Step 9: Reason for control and the Country Chart. (1) Reason 
for control and column identifier within the Export Control 
Classification Number (ECCN). Once you have determined that your item 
is controlled by a specific ECCN, you must use information contained in 
the ``License Requirements'' section of that ECCN in combination with 
the Country Chart to decide whether a license is required under General 
Prohibitions One, Two, or Three to a particular destination. The CCL 
and the Country Chart are taken together to define these license 
requirements. The applicable ECCN will indicate the reason or reasons 
for control for items within that ECCN. For example, ECCN 6A007 is 
controlled for national security, missile technology, and anti-
terrorism reasons.
    (2) Reason for control within the Country Chart. With each of the 
applicable Country Chart column identifiers noted in the correct ECCN, 
turn to the Country Chart. Locate the correct Country Chart column 
identifier on the horizontal axis, and determine whether an ``X'' is 
marked in the cell next to the destination in question. Consult 
Sec. 738.4 of the EAR for comprehensive instructions on using the 
Country Chart and a detailed example.
    (i) An ``X'' in the cell or cells for the relevant country and 
reason(s) for control column indicates that a license is required for 
General Prohibitions One (Exports and Reexports in the Form Received), 
Two (Parts and Components Reexports), and Three (Foreign-Produced 
Direct Product Reexports). (See Sec. 736.2 (b)(1), (b)(2), and (b)(3) 
of the EAR).
    (ii) If one or more cells have an ``X'' in the relevant column, a 
license is required unless you qualify for a License Exception 
described in part 740 of the EAR. If a cell does not contain an ``X'' 
for your destination in one or more relevant columns, a license is not 
required under the CCL and the Country Chart.
    (iii) Additional controls may apply to your export. You must go on 
to steps 12 through 18 described in paragraphs (g) to (m) of this 
section to determine

[[Page 12743]]
whether additional limits described in General Prohibition Two (Parts 
and Components Reexports) and General Prohibition Three (Foreign-
Produced Direct Product Reexports ) apply to your proposed transaction. 
If you are exporting an item from the United States, you should skip 
Step 10 and Step 11. Proceed directly to Step 12 in paragraph (g) of 
this section.
    (3) License requirements not on the Country Chart. There are two 
instances where the Country Chart cannot be used to determine if a 
license is required. Items controlled for short supply reasons are not 
governed by the Country Chart. Part 754 of the EAR contains license 
requirements and License Exceptions for items subject to short supply 
controls. A limited number of ECCNs contained on the CCL do not 
identify a Country Chart column identifier. In these instances, the 
ECCN states whether a license is required and for which destinations. 
See Sec. 738.3(a) of the EAR for a list of the ECCNs for which you do 
not need to consult the Country Chart to determine licensing 
requirements.
    (4) Destinations subject to embargo provisions. The Country Chart 
does not apply to Cuba, Iran, Iraq, Libya, and North Korea; and for 
those countries you should review the embargo provisions at part 746 of 
the EAR and may skip this step concerning the Country Chart. For 
Angola, Bosnia-Herzegovina, Croatia, Rwanda, and Serbia and Montenegro 
the Country Chart provides for certain license requirements, and part 
746 of the EAR provides additional requirements.
    (5) Items subject to the EAR but not on the CCL. Items subject to 
the EAR that are not on the CCL are properly classified EAR99. For such 
items, you may skip this step and proceed directly with Step 12 in 
paragraph (g) of this section.
    (e) Step 10: Foreign-made items incorporating U.S.-origin items and 
the de minimis rule. (1) Parts and components rule. The following 
considerations are appropriate for items abroad and are the same steps 
necessary to determine whether a foreign-made item incorporating U.S. 
parts, components, or materials is subject to the EAR. If your foreign-
made item is described in an entry on the CCL and the Country Chart 
requires a license to your export or reexport destination, you should 
determine whether the controlled U.S.-origin commodities, software, or 
technology incorporated into the foreign-made item exceeds the de 
minimis level applicable to the ultimate destination of the foreign-
made item, as follows:
    (i) A 10% de minimis level to embargoed and terrorist-supporting 
countries; or
    (ii) A 25% de minimis level to all other countries.
    (2) Guidance for calculations. For guidance on how to calculate the 
U.S.-controlled content, refer to Supplement No. 2 to part 734 of the 
EAR. Note that certain rules issued by the Office of Foreign Assets 
Control, certain exports from abroad by U.S.-owned or controlled 
entities may be prohibited notwithstanding the de minimis provisions of 
the EAR. In addition, the de minimis exclusions from the parts and 
components rule do not relieve U.S. persons of the obligation to 
refrain from supporting the proliferation of weapons of mass-
destruction and missiles as provided in General Prohibition Seven (U.S. 
Person Proliferation Activity) described in Sec. 736.2(b)(7) of the 
EAR.
    (f) Step 11: Foreign-produced direct product. The following 
considerations are appropriate for items abroad and are the same 
considerations necessary to determine whether a foreign-produced direct 
product is subject to the EAR under Step 6 in Sec. 732.2(f) of this 
part.
    (1) If your foreign-produced item is described in an entry on the 
CCL and the Country Chart requires a license to your export or reexport 
destination for national security reasons, you must determine whether 
your item is subject to General Prohibition Three (Foreign-Produced 
Direct Product Reexports) (Sec. 736.2(b)(3) of the EAR). Your item is 
subject to this general prohibition if your transaction meets each of 
the following conditions:
    (i) Country scope of prohibition. Your export or reexport 
destination for the direct product is Cuba, Libya, North Korea, or a 
destination in Country Group D:1 (see Supplement No. 1 to part 740 of 
the EAR) (reexports of foreign-produced direct products exported to 
other destinations are not subject to General Prohibition Three 
described in Sec. 736.2(b)(3) of the EAR);
    (ii) Scope of technology or software used to create direct products 
subject to the prohibition. Technology or software that was used to 
create the foreign-produced direct product, and such technology or 
software that was subject to the EAR and required a written assurance 
as a supporting document for a license or as a precondition for the use 
of License Exception TSR described Sec. 740.19 of the EAR (reexports of 
foreign-produced direct products created with other technology and 
software are not subject to General Prohibition Three); and
    (iii) Scope of direct products subject to the prohibition. The 
foreign-produced direct products are controlled for national security 
reasons indicated in an ECCN on the CCL (reexports of foreign-produced 
direct products not subject to national security controls are not 
subject to General Prohibition Three).
    (2) License Exceptions. Each License Exception described in part 
740 of the EAR overcomes General Prohibition Three (Foreign-Produced 
Direct Product Reexports) if all terms and conditions of a given 
License Exception are met by the exporter or reexporter.
    (g) Step 12: Persons denied export privileges. (1) Determine 
whether your transferee, ultimate end-user, any intermediate consignee, 
or any other party to a transaction is a person denied export 
privileges. (See part 764 of the EAR). While it is not a violation of 
General Prohibition Four (Denial Orders) (Sec. 736.2(b)(4) of the EAR) 
to fail to check the Denied Persons List prior to a transfer, it is 
nonetheless a violation of the EAR to engage in any activity that 
violates the terms or conditions of a denial order. General Prohibition 
Four (Denial Orders) applies to all items subject to the EAR, i.e. both 
items on the CCL and within EAR99.
    (2) There are no License Exceptions to General Prohibition Four 
(Denial Orders). The prohibition concerning persons denied export 
privileges may be overcome only by a specific authorization from BXA, 
something that is rarely granted.
    (h) STEP 13: Prohibited end-uses and end-users. (1) Review the end-
uses and end-users prohibited under General Prohibition Five (End-Use 
and End-User) (Sec. 736.2(b)(5) of the EAR) described in part 744 of 
the EAR. Part 744 of the EAR contains all the end-use and end-user 
license requirements, and those are in addition to the license 
requirements under General Prohibitions One (Exports and Reexports), 
Two (Parts and Components Reexports), and Three (Foreign-produced 
Direct Product Reexports). Unless otherwise indicated, the license 
requirements of General Prohibition Five (End-Use and End-User) 
described in part 744 of the EAR apply to all items subject to the EAR, 
i.e. both items on the CCL and within EAR99. Moreover, the requirements 
of General Prohibition Five (End-Use and End-User) are in addition to 
various end-use and end-user limitations placed on certain License 
Exceptions.
    (2) There are no License Exceptions to General Prohibition Five 
(End-Use and End-User) (Sec. 736.2(b)(5) of the EAR) described in part 
740 of the EAR.
    (i) Step 14: Embargoed countries and special destinations. If your 
destination for any item is Bosnia-Herzegovina,

[[Page 12744]]
Croatia, Cuba, Iran, Iraq, Libya, North Korea, Rwanda, or Serbia and 
Montenegro, you must consider the requirements of part 746 of the EAR. 
Unless otherwise indicated, General Prohibition Six (Embargo) applies 
to all items subject to the EAR, i.e. both items on the CCL and within 
EAR99. You may not make an export or reexport contrary to the 
provisions of part 746 of the EAR without a license unless:
    (1) You are exporting or reexporting only publicly available 
technology or software or other items outside the scope of the EAR, or
    (2) You qualify for a License Exception referenced in part 746 of 
the EAR concerning embargoed destinations. You may not use a License 
Exception described in part 740 of the EAR to overcome General 
Prohibition Six (Embargo) (Sec. 736.2(b)(6) of the EAR) unless it is 
specifically authorized in part 746 of the EAR. Note that part 754 of 
the EAR concerning short supply controls is self-contained and is the 
only location in the EAR for both the prohibitions and exceptions 
applicable to short supply controls.
    (j) Step 15: Proliferation activity of U.S. persons unrelated to 
exports and reexports. (1) Review the scope of activity prohibited by 
General Prohibition Seven (U.S. Person Proliferation Activity) 
(Sec. 736.2(b)(7) of the EAR) as that activity is described in 
Sec. 744.6 of the EAR. Keep in mind that such activity is not limited 
to exports and reexports and is not limited to items subject to General 
Prohibition One (Exports and Reexports), Two (Parts and Components 
Reexports), and Three (Foreign-Produced Direct Product Reexports). 
Moreover, such activity extends to services and dealing in wholly 
foreign-origin items in support of the specified proliferation activity 
and is not limited to items listed on the CCL or included in EAR99.
    (2) Review the definition of U.S. Person in part 744 of the EAR.
    (k) Step 16: In-transit. Shippers and operators of vessels or 
aircraft should review General Prohibition Eight (In-Transit) to 
determine the countries in which you may not unladen or ship certain 
items in-transit. General Prohibition Eight applies to all items 
subject to the EAR, i.e. both items on the CCL and within EAR99.
    (l) Step 17: Review orders, terms, and conditions. Review the 
orders, terms, and conditions applicable to your transaction. General 
Prohibition Nine (Orders, Terms, and Conditions) prohibits the 
violation of any orders, terms, and conditions imposed under the EAR. 
Terms and conditions are frequently contained in licenses. In addition, 
the ten general prohibitions (part 736 of the EAR) and the License 
Exceptions (part 740 of the EAR) impose terms and conditions or 
limitations on your proposed transactions and use of License 
Exceptions. A given license or License Exception may not be used unless 
each relevant term or condition is met.
    (m) Step 18: Review the ``Know Your Customer'' Guidance and General 
Prohibition Ten (Knowledge Violation to Occur). License requirements 
under the EAR are determined solely by the classification, end-use, 
end-user, ultimate destination, and conduct of U.S. persons. Supplement 
No. 1 to part 732 of the EAR is intended to provide helpful guidance 
regarding the process for the evaluation of information about 
customers, end-uses, and end-users. General Prohibition Ten (Knowledge 
Violation to Occur) prohibits anyone from proceeding with a transaction 
with knowledge that a violation of the EAR has occurred or is about to 
occur. It also prohibits related shipping, financing, and other 
services. General Prohibition Ten applies to all items subject to the 
EAR, i.e. both items on the CCL and within EAR99.
    (n) Step 19: Complete the review of the general prohibitions. After 
completion of Steps described in this section and review of all ten 
general prohibitions in part 736 of the EAR, including cross-referenced 
regulations in the EAR, you will know which, if any, of the ten general 
prohibitions of the EAR apply to you and your contemplated transaction 
or activity.
    (1) If none of the ten general prohibitions is applicable to your 
export from the United States, no license from BXA is required, you do 
not need to qualify for a License Exception under part 740 of the EAR. 
You should skip the Steps in Sec. 732.4 of this part regarding License 
Exceptions and proceed directly to the Steps in Sec. 732.5 of this part 
regarding recordkeeping, clearing the U.S. Customs Service with the 
appropriate Shipper's Export Declaration, and using the required 
Destination Control Statement.
    (2) If none of the ten general prohibitions is applicable to your 
reexport or export from abroad, no license is required and you should 
skip all remaining Steps.
    (3) If one or more of the ten general prohibitions are applicable, 
continue with the remaining steps.


Sec. 732.4  Steps regarding License Exceptions.

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

[[Page 12745]]
Exception until you have determined that no License Exception is 
available.
    (iii) License Exception groupings TMP, RPL, BAG, AVS, GOV, and TSU 
authorize exports notwithstanding the provisions of the CCL. License 
Exceptions in the list-based grouping (LST) are available only to the 
extent specified on the CCL. Part 740 of the EAR provides authorization 
for reexports only to the extent each License Exception expressly 
authorizes reexports. License Exception APR authorizes reexports only.
    (4) Step 23: Scope of License Exceptions. Some License Exceptions 
are limited by country or by type of item.
    (i) Countries are arranged in country groups for ease of reference. 
For a listing of country groups, please refer to Supplement No. 1 to 
part 740 of the EAR. Unless otherwise indicated in a License Exception, 
License Exceptions do not apply to any exports or reexports to 
embargoed destinations. If your export or reexport is subject to 
General Prohibition Six (Embargo) for embargoed destinations, License 
Exceptions are only available to the extent specifically provided in 
part 746 of the EAR concerning embargoed destinations.
    (ii) Special commodity controls apply to short supply items. No 
License Exceptions described in part 740 of the EAR may be used for 
items listed on the CCL as controlled for Short Supply reasons. License 
Exceptions for short supply items are found in part 754 of the EAR.
    (5) Step 24: Compliance with all terms and conditions. If a License 
Exception is available, you may proceed with your export or reexport. 
However, you must meet all the terms and conditions required by the 
License Exception that you determined authorized your export or 
reexport. You must also consult part 758 and 762 of the EAR to 
determine your recordkeeping and documentation requirements.
    (6) Step 25: License requirements. If no License Exception is 
available, then you must either obtain a license before proceeding with 
your export or reexport or you must refrain from the proposed export or 
reexport.
    (7) Step 26: License applications. If you are going to file a 
license application with BXA, you should first review the requirements 
at part 748 of the EAR. Exporters, reexporters, and exporters from 
abroad should review the instructions concerning applications and 
required support documents prior to submitting an application for a 
license.


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

    (a) Step 27--Shipper's Export Declaration. You should review 
Sec. 758.3 of the EAR to determine what notations you must enter on the 
Shipper's Export Declaration (SED). These steps should be reviewed by 
exporters. Reexporters and firms exporting from abroad may skip Steps 
27 through 29 and proceed directly to Sec. 732.6 of this part.
    (1) NLR. The term ``NLR'' represents exports of listed items when 
no license is required. Such exports do not require that you qualify 
for a License Exception. The symbol ``NLR'' is required on the SED 
under two circumstances. First, NLR is the correct symbol when 
exporting an item subject to the EAR not listed on the CCL. Such items 
are classified EAR99. Secondly, certain items are listed on the CCL but 
do not require a license to all destinations under General Prohibitions 
One (Exports and Reexports in the Form Received), Two (Parts and 
Components Reexports), or Three (Foreign-Produced Direct Product 
Reexports) (Sec. 736.2 (b)(1), (b)(2), or (b)(3) of the EAR). Such 
items do not have an ``X'' in the appropriate cell on the Country 
Chart. If General Prohibitions Four through Ten (Sec. 736.2 (b)(4) of 
the EAR) through (b)(10) of the EAR) also do not apply, you must clear 
exports of such items by entering the symbol ``NLR'' in the appropriate 
place on the SED.
    (2) License Exception group symbol. You must enter on any required 
SED the letter code (e.g., LST, TMP) of the group of License Exceptions 
under which you are exporting. In the case of License Exceptions 
grouped under LST, the ECCN of the item being exported must also be 
entered when an SED is required. Please refer to Sec. 758.3 of the EAR 
for detailed information on use of SEDs.
    (3) License number. If you are exporting under a license, enter the 
license number on the SED as required by Sec. 758.3 of the EAR.
    (b) Step 28: Destination Control Statement. You are required to 
enter an appropriate Destination Control Statement (DCS) on commercial 
documents in accordance with the DCS requirements of Sec. 758.6 of the 
EAR. Exporters should review Sec. 758.6 of the EAR and use the DCS as 
required. Reexporters and exporters from abroad should review 
Sec. 752.6 for DCS requirements when using a Special Comprehensive 
License. Otherwise, DCS requirements do not apply to reexports and 
exports from abroad.
    (c) Step 29: Recordkeeping. Records of transactions involving 
exports under any license or License Exception must be maintained in 
accordance with the recordkeeping requirements of part 762 of the EAR.


Sec. 732.6  Steps for other requirements.

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

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

``Know Your Customer'' Guidance

    Various requirements of the EAR are dependent upon a person's 
knowledge of the end-use, end-user, ultimate destination, or other 
facts relating to a transaction or activity. These provisions 
include the nonproliferation-related ``catch-all'' sections and the 
prohibition against proceeding with a transaction with knowledge 
that a violation of the EAR has occurred or is about to occur.
    (a) BXA provides the following guidance on how individuals and 
firms should act under this knowledge standard. This guidance does 
not change or interpret the EAR.
    (1) Decide whether there are ``red flags''. Take into account 
any abnormal circumstances in a transaction that indicate that the 
export may be destined for an inappropriate end-use, end-user, or 
destination. Such circumstances are referred to as ``red flags''. 
Included among examples

[[Page 12746]]
of red flags are orders for items that are inconsistent with the 
needs of the purchaser, a customer declining installation and 
testing when included in the sales price or when normally requested, 
or requests for equipment configurations that are incompatible with 
the stated destination (e.g., 120 volts in a country with 220 
volts). Commerce has developed lists of such red flags that are not 
all-inclusive but are intended to illustrate the types of 
circumstances that should cause reasonable suspicion that a 
transaction will violate the EAR.
    (2) If there are ``red flags'', inquire. If there are no ``red 
flags'' in the information that comes to your firm, you should be 
able to proceed with a transaction in reliance on information you 
have received. That is, absent ``red flags'' (or an express 
requirement in the EAR), there is no affirmative duty upon exporters 
to inquire, verify, or otherwise ``go behind'' the customer's 
representations. However, when ``red flags'' are raised in 
information that comes to your firm, you have a duty to check out 
the suspicious circumstances and inquire about the end-use, end-
user, or ultimate country of destination. The duty to check out 
``red flags'' is not confined to the use of License Exceptions 
affected by the ``know'' or ``reason to know'' language in the EAR. 
Applicants for licenses are required by part 748 of the EAR to 
obtain documentary evidence concerning the transaction, and 
misrepresentation or concealment of material facts is prohibited, 
both in the licensing process and in all export control documents. 
You can rely upon representations from your customer and repeat them 
in the documents you file unless red flags oblige you to take 
verification steps.
    (3) Do not self-blind. Do not cut off the flow of information 
that comes to your firm in the normal course of business. For 
example, do not instruct the sales force to tell potential customers 
to refrain from discussing the actual end-use, end-user, and 
ultimate country of destination for the product your firm is seeking 
to sell. Do not put on blinders that prevent the learning of 
relevant information. An affirmative policy of steps to avoid 
``bad'' information would not insulate a company from liability, and 
it would usually be considered an aggravating factor in an 
enforcement proceeding.
    (4) Employees need to know how to handle ``red flags''. 
Knowledge possessed by an employee of a company can be imputed to a 
firm so as to make it liable for a violation. This makes it 
important for firms to establish clear policies and effective 
compliance procedures to ensure that such knowledge about 
transactions can be evaluated by responsible senior officials. 
Failure to do so could be regarded as a form of self-blinding.
    (5) Reevaluate all the information after the inquiry. The 
purpose of this inquiry and reevaluation is to determine whether the 
``red flags'' can be explained or justified. If they can, you may 
proceed with the transaction. If the ``red flags'' cannot be 
explained or justified and you proceed, you run the risk of having 
had ``knowledge'' that would make your action a violation of the 
EAR.
    (6) Refrain from the transaction or advise BXA and wait. If you 
continue to have reasons for concern after your inquiry, then you 
should either refrain from the transaction or submit all the 
relevant information to BXA in the form of an application for a 
validated license or in such other form as BXA may specify.
    (b) Industry has an important role to play in preventing exports 
and reexports contrary to the national security and foreign policy 
interests of the United States. BXA will continue to work in 
partnership with industry to make this front line of defense 
effective, while minimizing the regulatory burden on exporters. If 
you have any question about whether you have encountered a ``red 
flag'', you may contact the Office of Export Enforcement at 1-800-
424-2980 or the Office of Exporter Services at (202) 482-4532.

Red Flags

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

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

Sec.
734.1  Introduction.
734.2  Important EAR terms and principles.
734.3  Items subject to the EAR.
734.4  De minimis U.S. content.
734.5  Activities of U.S. and foreign persons subject to the EAR.
734.6  Assistance available from BXA for determining licensing and 
other requirements.
734.7  Published information and software.
734.8  Information resulting from fundamental research.
734.9  Educational information.
734.10  Patent applications.
734.11  Government-sponsored research covered by contract controls.
734.12  Effect on foreign laws and regulations.

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

Supplement No. 2 to Part 734--Calculation of Values for DE MINIMIS 
Rules

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 734.1  Introduction.

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


Sec. 734.2  Important EAR terms and principles.

    (a) Subject to the EAR--Definition. (1) ``Subject to the EAR'' is a 
term used in the EAR to describe those items and

[[Page 12747]]
activities over which BXA exercises regulatory jurisdiction under the 
EAR. Conversely, items and activities that are not subject to the EAR 
are outside the regulatory jurisdiction of the EAR and are not affected 
by these regulations. The items and activities subject to the EAR are 
described in Sec. 734.2 through Sec. 734.5 of this part. You should 
review the Commerce Control List (CCL) and any applicable parts of the 
EAR to determine whether an item or activity is subject to the EAR. 
However, if you need help in determining whether an item or activity is 
subject to the EAR, see Sec. 734.6 of this part. Publicly available 
technology and software not subject to the EAR are described in 
Sec. 734.7 through Sec. 734.11 and Supplement No. 1 to this part.
    (2) Items and activities subject to the EAR may also be controlled 
under export-related programs administered by other agencies. Items and 
activities subject to the EAR are not necessarily exempted from the 
control programs of other agencies. Although BXA and other agencies 
that maintain controls for national security and foreign policy reasons 
try to minimize overlapping jurisdiction, you should be aware that in 
some instances you may have to comply with more than one regulatory 
program.
    (3) The term ``subject to the EAR'' should not be confused with 
licensing or other requirements imposed in other parts of the EAR. Just 
because an item or activity is subject to the EAR does not mean that a 
license or other requirement automatically applies. A license or other 
requirement applies only in those cases where other parts of the EAR 
impose a licensing or other requirement on such items or activities.
    (b) Export and reexport. (1) Definition of export. ``Export'' means 
an actual shipment or transmission of items subject to the EAR out of 
the United States; or release of technology or software subject to the 
EAR to a foreign national in the United States, as described in 
paragraph (b)(2)(ii) of this section. See part 772 of the EAR for the 
definition that applies to exports of satellites subject to the EAR.
    (2) Export of technology or software. ``Export'' of technology or 
software includes:
    (i) Any release of technology or software subject to the EAR in a 
foreign country; or
    (ii) Any release of technology or source code subject to the EAR to 
a foreign national. Such release is deemed to be an export to the home 
country or countries of the foreign national. This deemed export rule 
does not apply to persons lawfully admitted for permanent residence in 
the United States and does not apply to persons who are protected 
individuals under the Immigration and Naturalization Act (8 U.S.C. 
1324b(a)(3)). Note that the release of any item to any party with 
knowledge a violation is about to occur is prohibited by 
Sec. 736.2(b)(10) of the EAR.
    (3) Definition of ``release'' of technology or software. Technology 
or software is ``released'' for export through:
    (i) Visual inspection by foreign nationals of U.S.-origin equipment 
and facilities;
    (ii) Oral exchanges of information in the United States or abroad; 
or
    (iii) The application to situations abroad of personal knowledge or 
technical experience acquired in the United States.
    (4) Definition of reexport. ``Reexport'' means an actual shipment 
or transmission of items subject to the EAR from one foreign country to 
another foreign country; or release of technology or software subject 
to the EAR to a foreign national outside the United States, as 
described in paragraph (b)(5) of this section. See part 772 of the EAR 
for the definition that applies to reexports of satellites subject to 
the EAR.
    (5) Reexport of technology or software. Any release of technology 
or source code subject to the EAR to a foreign national of another 
country is a deemed reexport to the home country or countries of the 
foreign national. However, this deemed reexport definition does not 
apply to persons lawfully admitted for permanent residence. The term 
``release'' is defined in paragraph (b)(3) of this section. Note that 
the release of any item to any party with knowledge or reason to know a 
violation is about to occur is prohibited by Sec. 736.2(b)(10) of the 
EAR.
    (6) For purposes of the EAR, the export or reexport of items 
subject to the EAR that will transit through a country or countries or 
be transshipped in a country or countries to a new country or are 
intended for reexport to the new country, are deemed to be exports to 
the new country.
    (7) If a territory, possession, or department of a foreign country 
is not listed on the Country Chart in Supplement No. 1 to part 738 of 
the EAR, the export or reexport of items subject to the EAR to such 
destination is deemed under the EAR to be an export to the foreign 
country. For example, a shipment to the Cayman Islands, a dependent 
territory of the United Kingdom, is deemed to be a shipment to the 
United Kingdom.
    (8) Export or reexport of items subject to the EAR does not include 
shipments among any of the states of the United States, the 
Commonwealth of Puerto Rico, or the Commonwealth of the Northern 
Mariana Islands or any territory, dependency, or possession of the 
United States. These destinations are listed in Schedules C & E, 
Classification of Country and Territory Designations for U.S. Export 
Statistics, issued by the Bureau of the Census.


Sec. 734.3  Items subject to the EAR.

    (a) Except for items excluded in paragraph (b) of this section, the 
following items are subject to the EAR:
    (1) All items in the United States, including in a U.S. Foreign 
Trade Zone or moving intransit through the United States from one 
foreign country to another;
    (2) All U.S. origin items wherever located;
    (3) U.S. origin parts, components, materials or other commodities 
incorporated abroad into foreign-made products, U.S. origin software 
commingled with foreign software, and U.S. origin technology commingled 
with foreign technology, in quantities exceeding de minimis levels as 
described in Sec. 734.4 and Supplement No. 2 of this part;
    (4) Certain foreign-made direct products of U.S. origin technology 
or software, as described in Sec. 736.2(b)(3) of the EAR. The term 
``direct product'' means the immediate product (including processes and 
services) produced directly by the use of technology or software; and
    (5) Certain commodities produced by any plant or major component of 
a plant located outside the United States that is a direct product of 
U.S.-origin technology or software, as described in Sec. 736.2(b)(3) of 
the EAR.
    (b) The following items are not subject to the EAR:
    (1) Items that are exclusively controlled for export or reexport by 
the following departments and agencies of the U.S. Government which 
regulate exports or reexports for national security or foreign policy 
purposes:
    (i) Department of State. The International Traffic in Arms 
Regulations (22 CFR part 121) administered by the Office of Defense 
Trade Controls relate to defense articles and defense services on the 
U.S. Munitions List. Section 38 of the Arms Export Control Act (22 
U.S.C. 2778).
    (ii) Treasury Department, Office of Foreign Assets Control (OFAC). 
Regulations administered by OFAC implement broad controls and embargo 
transactions with certain foreign countries. These regulations include 
controls on exports and reexports to

[[Page 12748]]
certain countries (31 CFR chapter V). Trading with the Enemy Act (50 
U.S.C. app. section 1 et seq.), and International Emergency Economic 
Powers Act (50 U.S.C. 1701, et seq.)
    (iii) U.S. Nuclear Regulatory Commission (NRC). Regulations 
administered by NRC control the export and reexport of commodities 
related to nuclear reactor vessels (10 CFR part 110). Atomic Energy Act 
of 1954, as amended (42 U.S.C. part 2011 et seq.).
    (iv) Department of Energy (DOE). Regulations administered by DOE 
control the export and reexport of technology related to the production 
of special nuclear materials (10 CFR part 810). Atomic Energy Act of 
1954, as amended (42 U.S.C. section 2011 et seq.).
    (v) Patent and Trademark Office (PTO). Regulations administered by 
PTO provide for the export to a foreign country of unclassified 
technology in the form of a patent application or an amendment, 
modification, or supplement thereto or division thereof (37 CFR part 
5). BXA has delegated authority under the Export Administration Act to 
the PTO to approve exports and reexports of such technology which is 
subject to the EAR. Exports and reexports of such technology not 
approved under PTO regulations must comply with the EAR.
    (2) Prerecorded phonograph records reproducing in whole or in part, 
the content of printed books, pamphlets, and miscellaneous 
publications, including newspapers and periodicals; printed books, 
pamphlets, and miscellaneous publications including bound newspapers 
and periodicals; children's picture and painting books; newspaper and 
periodicals, unbound, excluding waste; music books; sheet music; 
calendars and calendar blocks, paper; maps, hydrographical charts, 
atlases, gazetteers, globe covers, and globes (terrestrial and 
celestial); exposed and developed microfilm reproducing, in whole or in 
part, the content of any of the above; exposed and developed motion 
picture film and soundtrack; and advertising printed matter exclusively 
related thereto.
    (3) Publicly available technology and software that:
    (i) Are already published or will be published as described in 
Sec. 734.7 of this part;
    (ii) Arise during, or result from, fundamental research, as 
described in Sec. 734.8 of this part;
    (iii) Are educational, as described in Sec. 734.9 of this part; or
    (iv) Are included in certain patent applications, as described in 
Sec. 734.10 of this part.
    (4) Foreign made items that have de minimis U.S. content based on 
the principles described in Sec. 734.4 of this part.
    (c) ``Items subject to the EAR'' consist of the items listed on the 
Commerce Control List (CCL) in part 774 of the EAR and all other items 
which meet the definition of that term. For ease of reference and 
classification purposes, items subject to the EAR which are not listed 
on the CCL are designated as ``EAR99.''


Sec. 734.4  De minimis U.S. content.

    (a) There is no de minimis level for the export from a foreign 
country of a foreign-made computer exceeding 7000 MTOPS containing 
U.S.-origin controlled semiconductors (other than memory circuits) 
classified under ECCN 3A001 or high speed interconnect devices (ECCN 
4A003.g) to Computer Tier 3 and 4 countries described in Sec. 742.12 of 
the EAR.
    (b) Except as provided in paragraph (a) of this section for certain 
computers, for embargoed countries in part 746 of the EAR, and for 
countries named as terrorist-supporting countries in part 744 of the 
EAR, the following are not subject to the EAR:
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 10% or less of the total value of the 
foreign-made commodity;
    (2) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 10% or less of the total value of the 
foreign-made software; or
    (3) Reexports of foreign technology commingled with or drawn from 
controlled U.S. origin technology valued at 10% or less of the total 
value of the foreign technology.
    (c) Except as provided in paragraph (a) of this section for certain 
computers, for all other countries not included in paragraph (b) of 
this section, the following are not subject to the EAR:
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 25% or less of the total value of the 
foreign-made commodity;
    (2) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 25% or less of the total value of the 
foreign-made software; or
    (3) Reexports of foreign technology commingled with or drawn from 
controlled U.S.-origin technology valued at 25% or less of the total 
value of the foreign technology.
    (d) For purposes of determining de minimis levels, technology and 
source code used to design or produce foreign-made commodities or 
software are not considered to be incorporated into such foreign-made 
commodities or software. Commodities subject only to short supply 
controls are not included in calculating U.S. content.
    (e) You are responsible for making the necessary calculations to 
determine whether the de minimis provisions apply to your situation. 
See Supplement No. 2 to part 734 for guidance regarding calculation of 
U.S. controlled content.
    (f) See Sec. 770.3 of the EAR for principles that apply to 
commingled U.S.-origin technology and software.


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

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


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

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

[[Page 12749]]
is subject to the EAR and, if so, what licensing or other requirements 
apply under the EAR. Such a determination only affects EAR 
requirements, and does not affect the applicability of any other 
regulatory programs.
    (c) If you need help in determining BXA licensing or other 
requirements you may ask BXA for help by following the procedures 
described in Sec. 748.3 of the EAR.


Sec. 734.7  Published information and software.

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


Sec. 734.8  Information resulting from fundamental research.

    (a) Fundamental research. Paragraphs (b) through (d) of this 
section and Sec. 734.11 of this part provide specific rules that will 
be used to determine whether research in particular institutional 
contexts qualifies as ``fundamental research''. The intent behind these 
rules is to identify as ``fundamental research'' basic and applied 
research in science and engineering, where the resulting information is 
ordinarily published and shared broadly within the scientific 
community. Such research can be distinguished from proprietary research 
and from industrial development, design, production, and product 
utilization, the results of which ordinarily are restricted for 
proprietary reasons or specific national security reasons as defined in 
Sec. 732.10 of this part. (See Supplement No. 1 to this part, Question 
D(8)).
    (b) University based research. (1) Research conducted by 
scientists, engineers, or students at a university normally will be 
considered fundamental research, as described in paragraphs (b) (2) 
through (6) of this section. (``University'' means any accredited 
institution of higher education located in the United States.)
    (2) Prepublication review by a sponsor of university research 
solely to insure that the publication would not inadvertently divulge 
proprietary information that the sponsor has furnished to the 
researchers does not change the status of the research as fundamental 
research. However, release of information from a corporate sponsor to 
university researchers where the research results are subject to 
prepublication review, is subject to the EAR. (See Supplement No. 1 to 
this part, Questions D(7), D(9), and D(10).)
    (3) Prepublication review by a sponsor of university research 
solely to ensure that publication would not compromise patent rights 
does not change the status of fundamental research, so long as the 
review causes no more than a temporary delay in publication of the 
research results.
    (4) The initial transfer of information from an industry sponsor to 
university researchers is subject to the EAR where the parties have 
agreed that the sponsor may withhold from publication some or all of 
the information so provided. (See Supplement No. 1 to this part, 
Question D(2).)
    (5) University based research is not considered ``fundamental 
research'' if the university or its researchers accept (at the request, 
for example, of an industrial sponsor) other restrictions on 
publication of scientific and technical information resulting from the 
project or activity. Scientific and technical information resulting 
from the research will nonetheless qualify as fundamental research once 
all such restrictions have expired or have been removed. (See 
Supplement No. 1 to this part, Question D(7) and D(9).)
    (6) The provisions of Sec. 734.11 of this part will apply if a 
university or its researchers accept specific national security 
controls (as defined in Sec. 732.11 of this part) on a research project 
or activity sponsored by the U.S. Government. (See Supplement No. 1 to 
this part, Questions E(1) and E(2).)
    (c) Research based at Federal agencies or FFRDCs. Research 
conducted by scientists or engineers working for a Federal agency or a 
Federally Funded Research and Development Center (FFRDC) may be 
designated as ``fundamental research'' within any appropriate system 
devised by the agency or the FFRDC to control the release of 
information by such scientists and engineers. (See Supplement No. 1 to 
this part, Questions D(8) and D(11).)
    (d) Corporate research. (1) Research conducted by scientists or 
engineers working for a business entity will be considered 
``fundamental research'' at such time and to the extent that the 
researchers are free to make scientific and technical information 
resulting from the research publicly available without restriction or 
delay based on proprietary concerns or specific national security 
controls as defined in Sec. 734.11 of this part.
    (2) Prepublication review by the company solely to ensure that the 
publication would compromise no proprietary information provided by the 
company to the researchers is not considered to be a proprietary 
restriction under paragraph (d)(1) of this section. However, paragraph 
(d)(1) of this section does not authorize the release of information to 
university researchers where the research results are subject to 
prepublication review. (See Supplement No. 1 to this part, Questions 
D(8), D(9), and D(10).)
    (3) Prepublication review by the company solely to ensure that 
prepublication would compromise no patent rights will not be considered 
a proprietary restriction for this purpose, so long as the review 
causes no more

[[Page 12750]]
than a temporary delay in publication of the research results.
    (4) However, the initial transfer of information from a business 
entity to researchers is not authorized under the ``fundamental 
research'' provision where the parties have agreed that the business 
entity may withhold from publication some or all of the information so 
provided.
    (e) Research based elsewhere. Research conducted by scientists or 
engineers who are not working for any of the institutions described in 
paragraphs (b) through (d) of this section will be treated as corporate 
research, as described in paragraph (d) of this section. (See 
Supplement No. 1 to this part, Question D(8).)


Sec. 734.9  Educational information.

    ``Educational information'' referred to in Sec. 734.3(b)(3)(iii) of 
this part is not subject to the EAR if it is released by instruction in 
catalog courses and associated teaching laboratories of academic 
institutions. Dissertation research is discussed in Sec. 734.8(b) of 
this part. (See Supplement No. 1 to this part, Question C(1) through 
C(6).)


Sec. 734.10  Patent applications.

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

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

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


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

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


Sec. 734.12  Effect on foreign laws and regulations.

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

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

    This Supplement No. 1 contains explanatory questions and answers 
relating to technology and software that is subject to the EAR. It 
is intended to give the public guidance in understanding how BXA 
interprets this part, but is only illustrative, not comprehensive. 
In addition, facts or circumstances that differ in any material way 
from those set forth in the questions or answers will be considered 
under the applicable provisions of the EAR. This Supplement is 
divided into nine sections according to topic as follows:
    Section A: Publication of technology and exports and reexports 
of technology that has been or will be published.
    Section B: Release of technology at conferences.
    Section C: Educational instruction.
    Section D: Research, correspondence, and informal scientific 
exchanges.
    Section E: Federal contract controls.
    Section F: Commercial consulting.
    Section G: Software.
    Section H: Availability in a public library.
    Section I: Miscellaneous.

Section A: Publication

    Question A(1): I plan to publish in a foreign journal a 
scientific paper describing the results of my research, which is in 
an area listed in the EAR as requiring a license to all countries 
except Canada. Do I need a license to send a copy to my publisher 
abroad?
    Answer: No. This export transaction is not subject to the EAR. 
The EAR do not cover technology that is already publicly available, 
as well as technology that is made public by the transaction in 
question (Secs. 734.3 and 734.7 of this part). Your research results 
would be made public by the planned publication. You would not need 
a license.
    Question A(2): Would the answer differ depending on where I work 
or where I performed the research?
    Answer: No. Of course, the result would be different if your 
employer or another sponsor of your research imposed restrictions on 
its publication (Sec. 734.8 of this part).
    Question (A)3: Would I need a license to send the paper to the 
editors of a foreign journal for review to determine whether it will 
be accepted for publication?
    Answer: No. This export transaction is not subject to the EAR 
because you are submitting the paper to the editors with the 
intention that the paper will be published if favorably received 
(Sec. 734.7(a)(4)(iii) of this part).
    Question A(4): The research on which I will be reporting in my 
paper is supported by a grant from the Department of Energy (DOE). 
The grant requires prepublication clearance by DOE. Does that make 
any difference under the Export Administration Regulations?
    Answer: No, the transaction is not subject to the EAR. But if 
you published in violation of any Department of Energy controls you 
have accepted in the grant, you may be subject to appropriate 
administrative, civil, or criminal sanctions under other laws.
    Question A(5): We provide consulting services on the design, 
layout, and construction of integrated circuit plants and production 
lines. A major part of our business is the publication for sale to 
clients of detailed handbooks and reference manuals on key aspects 
on the design and manufacturing processes. A typical cost of 
publishing such a handbook and manual might be $500; the typical 
sales price is about $15,000. Is the publication and sale of such 
handbooks or manuals subject to the EAR?
    Answer: Yes. The price is above the cost of reproduction and 
distribution (Sec. 734.7(a)(1) of this part). Thus, you would need 
to obtain a license or qualify for a License Exception before you 
could export or reexport any of these handbooks or manuals.
    Question A(6): My Ph.D. thesis is on technology, listed in the 
EAR as requiring a license to all destinations except Canada, which 
has never been published for general distribution. However, the 
thesis is available at the institution from which I took the degree. 
Do I need a license to send another copy to a colleague overseas?
    Answer: That may depend on where in the institution it is 
available. If it is not readily available in the university library 
(e.g., by filing in open stacks with a reference in the

[[Page 12751]]
catalog), it is not ``publicly available'' and the export or 
reexport would be subject to the EAR on that ground. The export or 
reexport would not be subject to the EAR if your Ph.D. research 
qualified as ``fundamental research'' under Sec. 734.8 of this part. 
If not, however, you will need to obtain a license or qualify for a 
License Exception before you can send a copy out of the country.
    Question A(7): We sell electronically recorded information, 
including software and databases, at wholesale and retail. Our 
products are available by mail order to any member of the public, 
though intended for specialists in various fields. They are priced 
to maximize sales to persons in those fields. Do we need a license 
to sell our products to foreign customers?
    Answer: You would not need a license for otherwise controlled 
technology or software if the technology and software are made 
publicly available at a price that does not exceed the cost of 
production and distribution to the technical community. Even if 
priced at a higher level, the export or reexport of the technology 
or software source code in a library accessible to the public is not 
subject to the EAR (Sec. 734.7(a) of this part).

Section B: Conferences

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

Section C: Educational Instruction

    Question C(1): I teach a university graduate course on design 
and manufacture of very high-speed integrated circuitry. Many of the 
students are foreigners. Do I need a license to teach this course?
    Answer: No. Release of information by instruction in catalog 
courses and associated teaching laboratories of academic 
institutions is not subject to the EAR (Sec. 734.9 of this part).
    Question C(2): Would it make any difference if some of the 
students were from countries to which export licenses are required?
    Answer: No.
    Question C(3): Would it make any difference if I talk about 
recent and as yet unpublished results from my laboratory research?
    Answer: No.
    Question C(4): Even if that research is funded by the 
Government?
    Answer: Even then, but you would not be released from any 
separate obligations you have accepted in your grant or contract.
    Question C(5): Would it make any difference if I were teaching 
at a foreign university?
    Answer: No.
    Question C(6): We teach proprietary courses on design and 
manufacture of high-performance machine tools. Is the instruction in 
our classes subject to the EAR?
    Answer: Yes. That instruction would not qualify as ``release of 
educational information'' under Sec. 734.9 of this part because your 
proprietary business does not qualify as an ``academic institution'' 
within the meaning of Sec. 734.9 of this part. Conceivably, however, 
the instruction might qualify as ``release at an open * * * seminar, 
* * * or other open gathering'' under Sec. 734.7(d) of this part. 
The conditions for qualification of such a seminar or gathering as 
``open'', including a fee ``reasonably related to costs (of the 
conference, not of producing the data) and reflecting an intention 
that all interested and technically qualified persons be able to 
attend,'' would have to be satisfied.

Section D: Research, Correspondence, and Informal Scientific 
Exchanges

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

[[Page 12752]]

    Question D(5): Could I properly do some work with him in his 
research laboratory inside China?
    Answer: Application abroad of personal knowledge or technical 
experience acquired in the United States constitutes an export of 
that knowledge and experience, and such an export may be subject to 
the EAR. If any of the knowledge or experience you export in this 
way requires a license under the EAR, you must obtain such a license 
or qualify for a License Exception.
    Question D(6): I would like to correspond and share research 
results with an Iranian expert in my field, which deals with 
technology that requires a license to all destinations except 
Canada. Do I need a license to do so?
    Answer: Not as long as we are still talking about information 
that arose during or resulted from research that qualifies as 
``fundamental'' under the rules spelled out in Sec. 734.8(a) of this 
part.
    Question D(7): Suppose the research in question were funded by a 
corporate sponsor and I had agreed to prepublication review of any 
paper arising from the research?
    Answer: Whether your research would still qualify as 
``fundamental'' would depend on the nature and purpose of the 
prepublication review. If the review is intended solely to ensure 
that your publications will neither compromise patent rights nor 
inadvertently divulge proprietary information that the sponsor has 
furnished to you, the research could still qualify as 
``fundamental.'' But if the sponsor will consider as part of its 
prepublication review whether it wants to hold your new research 
results as trade secrets or otherwise proprietary information (even 
if your voluntary cooperation would be needed for it to do so), your 
research would no longer qualify as ``fundamental.'' As used in 
these regulations it is the actual and intended openness of research 
results that primarily determines whether the research counts as 
``fundamental'' and so is not subject to the EAR.
    Question D(8): In determining whether research is thus open and 
therefore counts as ``fundamental,'' does it matter where or in what 
sort of institution the research is performed?
    Answer: In principle, no. ``Fundamental research'' is performed 
in industry, Federal laboratories, or other types of institutions, 
as well as in universities. The regulations introduce some 
operational presumptions and procedures that can be used both by 
those subject to the regulations and by those who administer them to 
determine with some precision whether a particular research activity 
is covered. Recognizing that common and predictable norms operate in 
different types of institutions, the regulations use the 
institutional locus of the research as a starting point for these 
presumptions and procedures. Nonetheless, it remains the type of 
research, and particularly the intent and freedom to publish, that 
identifies ``fundamental research,'' not the institutional locus 
(Sec. 734.8(a) of this part).
    Question D(9): I am doing research on high-powered lasers in the 
central basic-research laboratory of an industrial corporation. I am 
required to submit the results of my research for prepublication 
review before I can publish them or otherwise make them public. I 
would like to compare research results with a scientific colleague 
from Vietnam and discuss the results of the research with her when 
she visits the United States. Do I need a license to do so?
    Answer: You probably do need a license (Sec. 734.8(d) of this 
part). However, if the only restriction on your publishing any of 
that information is a prepublication review solely to ensure that 
publication would compromise no patent rights or proprietary 
information provided by the company to the researcher your research 
may be considered ``fundamental research,'' in which case you may be 
able to share information because it is not subject to the EAR. Note 
that the information will be subject to the EAR if the 
prepublication review is intended to withhold the results of the 
research from publication.
    Question D(10): Suppose I have already cleared my company's 
review process and am free to publish all the information I intend 
to share with my colleague, though I have not yet published?
    Answer: If the clearance from your company means that you are 
free to make all the information publicly available without 
restriction or delay, the information is not subject to the EAR. 
(Sec. 734.8(d) of this part)
    Question D(11): I work as a researcher at a Government-owned, 
contractor-operated research center. May I share the results of my 
unpublished research with foreign nationals without concern for 
export controls under the EAR?
    Answer: That is up to the sponsoring agency and the center's 
management. If your research is designated ``fundamental research'' 
within any appropriate system devised by them to control release of 
information by scientists and engineers at the center, it will be 
treated as such by the Commerce Department, and the research will 
not be subject to the EAR. Otherwise, you would need to obtain a 
license or qualify for a License Exception, except to publish or 
otherwise make the information public (Sec. 734.8(c) of this part).

Section E: Federal Contract Controls

    Question E(1): In a contract for performance of research entered 
into with the Department of Defense (DOD), we have agreed to certain 
national security controls. DOD is to have ninety days to review any 
papers we proposed before they are published and must approve 
assignment of any foreign nationals to the project. The work in 
question would otherwise qualify as ``fundamental research'' section 
under Sec. 734.8 of this part. Is the information arising during or 
resulting from this sponsored research subject to the EAR?
    Answer: Under Sec. 734.11 of this part, any export or reexport 
of information resulting from government-sponsored research that is 
inconsistent with contract controls you have agreed to will not 
qualify as ``fundamental research'' and any such export or reexport 
would be subject to the EAR. Any such export or reexport that is 
consistent with the controls will continue to be eligible for export 
and reexport under the ``fundamental research'' rule set forth in 
Sec. 734.8(a) of this part. Thus, if you abide by the specific 
controls you have agreed to, you need not be concerned about 
violating the EAR. If you violate those controls and export or 
reexport information as ``fundamental research'' under Sec. 734.8(a) 
of this part, you may subject yourself to the sanctions provided for 
under the EAR, including criminal sanctions, in addition to 
administrative and civil penalties for breach of contract under 
other law.
    Question E(2): Do the Export Administration Regulations restrict 
my ability to publish the results of my research?
    Answer: The Export Administration Regulations are not the means 
for enforcing the national security controls you have agreed to. If 
such a publication violates the contract, you would be subject to 
administrative, civil, and possible criminal penalties under other 
law.

Section F: Commercial Consulting

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

Section G: Software 2

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

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

[[Page 12753]]

    Question G(3): Is the export or reexport of software subject to 
the EAR if it is sold at a price BXA concludes in a classification 
letter to be sufficiently low so as not to subject it to the EAR?
    Answer: In response to classification requests, BXA may choose 
to classify certain software as not subject to the EAR even though 
it is sold at a price above the costs of reproduction and 
distribution as long as the price is nonetheless sufficiently low to 
qualify for such a classification in the judgment of BXA.

Section H: Available in a Public Library

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

Section I: Miscellaneous

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

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

    (a) Use the following guidelines in determining values for 
establishing exemptions or for submission of a request for 
authorization:
    (1) U.S. content value.
    (i) U.S. content value is the delivered cost to the foreign 
manufacturer of the U.S. origin parts, components, or materials. 
(When affiliated firms have special arrangements that result in 
lower than normal pricing, the cost should reflect ``fair market'' 
prices that would normally be charged to similar, unaffiliated 
customers.)
    (ii) In calculating the U.S. content value, do not include 
parts, components, or materials that, according to the CCL (part 774 
of the EAR) and the Country Chart (part 738 of the EAR), could be 
exported from the United States to the new country of destination 
without a license (designated as ``NLR'') or under License Exception 
GBS (see part 740 of the EAR).
    (2) The foreign-made product value is the normal selling price 
f.o.b. factory (excluding value added taxes or excise taxes).
    (3) To determine the value of the U.S.-origin controlled 
content, you should classify the U.S.-origin content on the Commerce 
Control List, determine those items that would require a license 
from BXA for reexport to the ultimate destination of the foreign-
made product if such parts, components, or materials were reexported 
to that destination in the form received, and divide the total value 
of the controlled U.S. parts, components, and materials incorporated 
into the foreign-made item by the sale price of the foreign-made 
item.
    (4) If no U.S. parts, components or materials are incorporated 
or if the incorporated U.S. parts, components, and materials are 
below the de minimis level, then the foreign-made item is not 
subject to the EAR by reason of Sec. 734.4 of this part, the 
classification of a foreign-made item is irrelevant in determining 
the scope of the EAR, and you should skip Step 4 in Sec. 732.2(d) 
and go on to consider Step 6 in Sec. 732.2(f) of the EAR regarding 
the foreign-produced direct product rule.
    (b) One-time report prior to reliance upon the de minimis 
exclusion.
    (1) Report requirement. Before you may rely upon the de minimis 
exclusion for foreign software and technology commingled with U.S. 
software or technology, you must file a one-time report for the 
foreign software or technology. The report must include the 
percentage of U.S.-content by value and a description of your 
calculations including relevant values, assumptions, and the basis 
or methodologies for making the percentage calculation. The three 
criteria important to BXA in its review of your report will be the 
export price of the U.S.-content, the assumption regarding future 
sales of software, and the choice of the scope of foreign 
technology. Your methodologies must be based upon the accounting 
standards used in the operation of your business, and you must 
specify that standard in your report. Regardless of the accounting 
systems,

[[Page 12754]]
standard, or conventions you use in the operation of your business, 
you may not depreciate the fair market values reported or otherwise 
reduce the fair market values by other accounting conventions such 
as depreciation. You may rely upon the de minimis exclusion from the 
commingled rule only to the extent you have reported the relevant 
calculations, values, assumptions, and the basis or methodologies 
for the calculations. These values may be historic or projected. You 
may rely on projected values only to the extent that and for so long 
as they remain consistent with your report or future values reduce 
the U.S.-content under your reported assumptions, basis, and 
methodologies. You are not required to file the above report if you 
do not choose to take advantage of the de minimis exclusion from the 
commingled rule.
    (2) Export price. The report must include a description of the 
U.S.-content including its classification on the Commerce Control 
List, its performance characteristics and features, and the method 
of calculating its fair market value. The fair market value shall be 
the arms-length transaction price, if it is available. If an arms-
length transaction price is unavailable, then the report will 
describe the valuation method chosen to calculate or derive the fair 
market value. Such methods may include comparable market prices or 
costs of production and distribution. This rule does not require 
calculations based upon any one accounting system or U.S. accounting 
standards. However, you must specify the accepted accounting 
standards you have chosen, and cost-based methods of valuation must 
be based upon records you maintain in the normal course of business. 
You should also indicate whether reported values are actual arms-
length market prices or derived from comparable transactions or 
costs of production, overhead, and profit. For example, if you chose 
to make calculations under the transfer pricing rules of the United 
States Internal Revenue Code at section 482, your report should 
indicate that this is the source for your methodology, and you 
should also indicate which of the several methodologies in these 
transfer pricing rules you have chosen.
    (3) Future software sales. For calculations of U.S.-content in 
foreign software, you shall include your estimate of future software 
sales in units and value along with the rationale and basis for 
those estimates in the report.
    (4) Foreign technology and software. For calculations of U.S.-
content in foreign technology and software, you shall include in the 
report a description of the foreign technology or software and a 
description of its fair market value along with the rationale and 
basis for the selection and valuation of such foreign software or 
technology. The report does not require information regarding 
destinations and end users for reexport. The purpose of the report 
is solely to permit the U.S. Government to evaluate the 
reasonableness of U.S.-content calculations.
    (5) Report and wait. If you have not been contacted by BXA 
concerning your report within thirty days after filing the report 
with BXA, you may rely upon the calculations in your report and the 
de minimis exclusions for software and technology for so long as you 
are not contacted by BXA. BXA may contact you concerning your report 
to inquire of you further or to indicate that BXA does not accept 
the assumptions or rationale for your calculations. If you receive 
such a contact or communication from BXA, you may not rely upon the 
de minimis exclusions for software and technology in Sec. 734.4 of 
this part until BXA has indicated whether or not you may do so in 
the future. You must include in your report the name, title, 
address, telephone number, and facsimile number of the person BXA 
may contact concerning your report.

PART 736--GENERAL PROHIBITIONS

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

Supplement No. 1--General Orders

Supplement No. 2--Administrative Orders

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3 CFR, 1994 
Comp., p. 950; Notice of August 15, 1995 (60 FR 42767, August 17, 
1995).


Sec. 736.1  Introduction.

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


Sec. 736.2  General prohibitions and determination of applicability.

    (a) Information or facts that determine the applicability of the 
general prohibitions. The following five types of facts determine your 
obligations under the ten general prohibitions and the EAR generally:
    (1) Classification of the item. The classification of the item on 
the Commerce Control List (see part 774 of the EAR);
    (2) Destination. The country of ultimate destination for an export 
or reexport (see parts 738 and 774 of the EAR concerning the Country 
Chart and the Commerce Control List);
    (3) End-user. The ultimate end-user (see General Prohibition Four 
(paragraph (b)(4) of this section) and parts 744 and 764 of the EAR for 
a reference to the list of persons you may not deal with);
    (4) End-use. The ultimate end-use (see General Prohibition Five 
(paragraph (b)(5) of this section) and part 744 of the EAR for general 
end-use restrictions); and
    (5) Conduct. Conduct such as contracting, financing, and freight 
forwarding in support of a proliferation project as described in part 
744 of the EAR.
    (b) General prohibitions. The following ten general prohibitions 
describe certain exports, reexports, and other conduct, subject to the 
scope of the EAR, in which you may not engage unless you either have a 
license from the Bureau of Export Administration (BXA) or qualify under 
part 740 of the EAR for a License Exception from each applicable 
general prohibition in this paragraph. The License Exceptions at part 
740 of the EAR apply only to General Prohibitions One (Exports and 
Reexports in the Form Received), Two (Parts and Components Reexports), 
and Three (Foreign-Produced Direct Product Reexports); however, 
selected License Exceptions are specifically referenced and authorized 
in part 746 of the EAR concerning embargo destinations and in 
Sec. 744.2(c) of the EAR regarding nuclear end-uses.

[[Page 12755]]

    (1) General Prohibition One--Export and reexport of controlled 
items to listed countries (Exports and Reexports). You may not, without 
a license or License Exception, export any item subject to the EAR to 
another country or reexport any item of U.S.-origin if each of the 
following is true:
    (i) The item is controlled for a reason indicated in the applicable 
Export Control Classification Number (ECCN), and
    (ii) Export to the country of destination requires a license for 
the control reason as indicated on the Country Chart at part 738 of the 
EAR. (The scope of this prohibition is determined by the correct 
classification of your item and the ultimate destination as that 
combination is reflected on the Country Chart.) 1 Note that each 
License Exception described at part 740 of the EAR supersedes General 
Prohibition One if all terms and conditions of a given License 
Exception are met by the exporter or reexporter.

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

    (2) General Prohibition Two--Reexport and export from abroad of 
foreign-made items incorporating more than a de minimis amount of 
controlled U.S. content (Parts and Components Reexports).
    (i) You may not, without a license or License Exception, export, 
reexport or export from abroad any foreign-made commodity, software, or 
technology incorporating U.S.-origin commodities, software, or 
technology respectively that is controlled to the country of ultimate 
destination if the foreign-made item meets all three of the following 
conditions:
    (A) It incorporates more than the de minimis amount of controlled 
U.S. content, as defined in Sec. 734.4 of the EAR concerning the scope 
of the EAR;
    (B) It is controlled for a reason indicated in the applicable ECCN; 
and
    (C) Its export to the country of destination requires a license for 
that control reason as indicated on the Country Chart. (The scope of 
this prohibition is determined by the correct classification of your 
foreign-made item and the ultimate destination, as that combination is 
reflected on the Country Chart.)
    (ii) Each License Exception described at part 740 of the EAR 
supersedes General Prohibition One if all terms and conditions of a 
given License Exception are met by the exporter or reexporter.
    (3) General Prohibition Three--Reexport and export from abroad of 
the foreign-produced direct product of U.S. technology and software 
(Foreign-Produced Direct Product Reexports).
    (i) Country scope of prohibition. You may not export, reexport, or 
export from abroad items subject to the scope of this General 
Prohibition Three to Cuba, North Korea, Libya, or a destination in 
Country Group D:1 (See Supplement No. 1 to part 740 of the EAR).
    (ii) Product scope of foreign-made items subject to prohibition. 
This General Prohibition 3 applies if an item meets either the 
Conditions defining the direct product of technology or the Conditions 
defining the direct product of a plant in paragraph (b)(3)(ii)(A) of 
this section:
    (A) Conditions defining direct product of technology. Foreign-made 
items are subject to this General Prohibition 3 if they meet both of 
the following conditions:
    (1) They are the direct product of technology or software that 
requires a written assurance as a supporting document for a license or 
as a precondition for the use of License Exception TSR at Sec. 740.3(d) 
of the EAR, and
    (2) They are subject to national security controls as designated on 
the applicable ECCN of the Commerce Control List at part 774 of the 
EAR.
    (B) Conditions defining direct product of a plant. Foreign-made 
items are also subject to this General Prohibition 3 if they are the 
direct product of a complete plant or any major component of a plant if 
both of the following conditions are met:
    (1) Such plant or component is the direct product of technology 
that requires a written assurance as a supporting document for a 
license or as a precondition for the use of License Exception TSR at 
Sec. 740.3(d) of the EAR, and
    (2) Such foreign-made direct products of the plant or component are 
subject to national security controls as designated on the applicable 
ECCN of the Commerce Control List at part 774 of the EAR.
    (iii) License Exceptions. Each License Exception described at part 
740 of the EAR supersedes this General Prohibition Three if all terms 
and conditions of a given exception are met by the exporter or 
reexporter.
    (4) General Prohibition Four (Denial Orders)--Engaging in actions 
prohibited by a denial order. (i) You may not take any action that is 
prohibited by a denial order issued under part 766 of the EAR, 
Administrative Enforcement Proceedings. These orders prohibit many 
actions in addition to direct exports by the person denied export 
privileges, including some transfers within a single country either in 
the United States or abroad by other persons. You are responsible for 
ensuring that any of your transactions in which a person who is denied 
export privileges is involved do not violate the terms of the order. 
The names of persons denied export privileges are published in the 
Federal Register and are also included on the Denied Persons List, 
which is referenced in Supplement No. 2 to part 764 of the EAR, 
Enforcement. The terms of the standard denial order are set forth in 
Supplement No. 1 to part 764. You should note that some denial orders 
differ from the standard denial order. BXA may, on an exceptional 
basis, authorize activity otherwise prohibited by a denial order. See 
Sec. 764.3(a)(3) of the EAR.
    (ii) There are no License Exceptions described in part 740 of the 
EAR that authorize conduct prohibited by this General Prohibition Four.
    (5) General Prohibition Five--Export or reexport to prohibited end-
uses or end-users (End-Use End-User). You may not, without a license, 
knowingly export or reexport any item subject to the EAR to an end-user 
of end-use that is prohibited by part 744 of the EAR.
    (6) General Prohibition Six--Export or reexport to embargoed 
destinations (Embargo). (i) You may not, without a license or License 
Exception authorized under part 746, export or reexport any item 
subject to the EAR to a country that is embargoed by the United States 
or otherwise made subject to controls as both are described at part 746 
of the EAR.
    (ii) License Exceptions to this General Prohibition Six are 
described at part 746 of the EAR on Embargoes and Other Special 
Controls; and unless a License Exception is authorized in part 746 of 
the EAR, the License Exceptions at part 740 of the EAR are not 
available to overcome this general prohibition.
    (7) General Prohibition Seven--Support of Proliferation Activities 
(U.S. Person Proliferation Activity). If you are a U.S. Person as that 
term is defined at Sec. 744.6(c) of the EAR, you may not engage in any 
activities prohibited by Sec. 744.6 (a) or (b) of the EAR which 
prohibits the performance, without a license from BXA, of certain 
financing, contracting, service, support, transportation, freight 
forwarding, or employment that you know will assist in certain 
proliferation activities described further at part 744 of the EAR. 
There are no License Exceptions to this General Prohibition Seven in 
part 740 of the EAR unless specifically authorized in that part.
    (8) General Prohibition Eight--In transit shipments and items to be

[[Page 12756]]
unladen from vessels or aircraft (Intransit). (i) Unlading and shipping 
in transit. You may not export an item through or transit through a 
country listed in (b)(8)(ii) of this section unless a License Exception 
or license authorizes such an export directly to such a country of 
transit.
    (ii) Country scope. This General Prohibition Eight applies to 
Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, Cuba, 
Estonia, Georgia, Kazakhstan, Kyrgyzstan, Laos, Latvia, Lithuania, 
Mongolia, North Korea, Russia, Tajikistan, Turkmenistan, Ukraine, 
Uzbkeistan, Vietnam.
    (9) General Prohibition Nine--Violation of any order, terms, and 
conditions (Orders, Terms, and Conditions). You may not violate terms 
or conditions of a license or of a License Exception issued under or 
made a part of the EAR, and you may not violate any order issued under 
or made a part of the EAR. There are no License Exceptions to this 
General Prohibition Nine in part 740 of the EAR. Supplements Nos. 1 and 
2 to this part provide for certain General Orders and Administrative 
Orders.
    (10) General Prohibition Ten--Proceeding with transactions with 
knowledge that a violation has occurred or is about to occur (Knowledge 
Violation to Occur). You may not sell, transfer, export, reexport, 
finance, order, buy, remove, conceal, store, use, loan, dispose of, 
transfer, transport, forward, or otherwise service, in whole or in 
part, any item subject to the EAR and exported or to be exported with 
knowledge that a violation of the Export Administration Regulations, 
the Export Administration Act or any order, license, License Exception, 
or other authorization issued thereunder has occurred, is about to 
occur, or is intended to occur in connection with the item. Nor may you 
rely upon any license or License Exception after notice to you of the 
suspension or revocation of that license or exception. There are no 
License Exceptions to this General Prohibition Ten in part 740 of the 
EAR.

Supplement No. 1 to Part 736--General Orders

[Reserved]

Supplement No. 2 to Part 736--Administrative Orders

    Administrative Order One: Disclosure of License Issuance and 
Other Information. Consistent with section 12(c) of the Export 
Administration Act of 1979, as amended, information obtained by the 
U.S. Department of Commerce for the purpose of consideration of or 
concerning license applications, as well as related information, 
will not be publicly disclosed without the approval of the Secretary 
of Commerce. Shipper's Export Declarations also are exempt from 
public disclosure, except with the approval of the Secretary of 
Commerce, in accordance with Sec. 301(g) of Title 13, United States 
Code.
    Administrative Order Two: Conduct of Business and Practice in 
Connection with Export Control Matters.
    (a) Conduct of business and practice in connection with export 
control matters.
    (1) Exclusion of persons guilty of unethical conduct or not 
possessing required integrity and ethical standards.
    (i) Who may be excluded. Any person, whether acting on his own 
behalf or on behalf of another, who shall be found guilty of 
engaging in any unethical activity or who shall be demonstrated not 
to possess the required integrity and ethical standards, may be 
excluded from (denied) export privileges on his own behalf, or may 
be excluded from practice before BXA on behalf of another, in 
connection with any export control matter, or both, as provided in 
part 764 of the EAR.
    (ii) Grounds for exclusion. Among the grounds for exclusion are 
the following:
    (A) Inducing or attempting to induce by gifts, promises, bribes, 
or otherwise, any officer or employee of BXA or any customs or post 
office official, to take any action with respect to the issuance of 
licenses or any other aspects of the administration of the Export 
Administration Act, whether or not in violation of any regulation;
    (B) Offering or making gifts or promises thereof to any such 
officer or employee for any other reason;
    (C) Soliciting by advertisement or otherwise the handling of 
business before BXA on the representation, express or implied, that 
such person, through personal acquaintance or otherwise, possesses 
special influence over any officer or employee of BXA;
    (D) Charging, or proposing to charge, for any service performed 
in connection with the issuance of any license, any fee wholly 
contingent upon the granting of such license and the amount or value 
thereof. This provision will not be construed to prohibit the charge 
of any fee agreed to by the parties; provided that the out-of-pocket 
expenditures and the reasonable value of the services performed, 
whether or not the license is issued and regardless of the amount 
thereof, are fairly compensated; and
    (E) Knowingly violating or participating in the violation of, or 
an attempt to violate, any regulation with respect to the export of 
commodities or technical data, including the making of or inducing 
another to make any false representations to facilitate any export 
in violation of the Export Administration Act or any order or 
regulation issued thereunder.
    (iii) Definition. As used in this Administration Order, the 
terms ``practice before BXA'' and ``appear before BXA'' include:
    (A) The submission on behalf of another of applications for 
export licenses or other documents required to be filed with BXA, or 
the execution of the same;
    (B) Conferences or other communications on behalf of another 
with officers or employees of BXA for the purpose of soliciting or 
expediting approval by BXA of applications for export licenses or 
other documents, or with respect to quotas, allocations, 
requirements or other export control actions, pertaining to matters 
within the jurisdiction of BXA;
    (C) Participating on behalf of another in any proceeding pending 
before BXA; and
    (D) Submission to a customs official on behalf of another of a 
license or Shipper's Export Declaration or other export control 
document.
    (iv) Proceedings. All proceedings under this Administrative 
Order shall be conducted in the same manner as provided in part 766 
of the EAR.
    (2) Employees and former employees. Persons who are or at any 
time have been employed on a full-time or part-time, compensated or 
uncompensated, basis by the U.S. Government are subject to the 
provisions of 18 U.S.C. 203, 205, and 207 (Pub. L. 87-849, 87th 
Congress) in connection with representing a private party or 
interest before the U.S. Department of Commerce in connection with 
any export control matter.

PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART

Sec.
738.1  Introduction.

738.2  Commerce Control List (CCL) structure.

738.3  Commerce Country Chart structure.

738.4  Determining whether a license is required.

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

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

Sec. 738.1  Introduction.

    (a) Commerce Control List scope. (1) In this part, references to 
the EAR are references to 15 CFR chapter VII, subchapter C. The Bureau 
of Export Administration (BXA) maintains the Commerce Control List 
(CCL) within the Export Administration Regulations (EAR), which 
includes items (i.e., commodities, software, and technology) subject to 
the export licensing authority of BXA. The CCL does not include those 
items exclusively controlled for export or reexport by another 
department or agency of the U.S. Government. In instances where 
agencies other than the Department of Commerce administer

[[Page 12757]]

controls over related items, entries in the CCL contain a reference to 
these controls.
    (2) The CCL is contained in Supplement No. 1 to part 774 of the 
EAR. Supplement No. 2 to part 774 of the EAR contains the General 
Technology and Software Notes relevant to entries contained in the CCL.
    (b) Commerce Country Chart scope. BXA also maintains the Commerce 
Country Chart. The Commerce Country Chart, located in Supplement No. 1 
to part 738, contains licensing requirements based on destination and 
Reason for Control. In combination with the CCL, the Commerce Country 
Chart allows you to determine whether a license is required for items 
on the CCL to any country in the world.


Sec. 738.2  Commerce Control List (CCL) structure.

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

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

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

A--Equipment, Assemblies and Components
B--Test, Inspection and Production Equipment
C--Materials
D--Software
E--Technology

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

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

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

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

    (B) The ``Country Chart'' header identifies, for each applicable 
Reason for Control, a column name and number (e.g., CB Column 1). These 
column identifiers are used to direct you from the CCL to the 
appropriate column identifying the countries requiring a license. 
Consult part 742 of the EAR for an indepth discussion of the licensing 
requirements and policies applicable to each Country Chart column.
    (ii) License Exceptions. This section provides a brief eligibility 
statement for each ECCN-driven License Exception that may be applicable 
to your transaction, and should be consulted only AFTER you have 
determined a license is required based on an analysis of the entry and 
the Country Chart. The brief eligibility statement in this section is 
provided to assist you in deciding which ECCN-driven License Exception 
related to your particular item and destination you should explore 
prior to submitting an application. The word ``Yes'' (followed in some 
instances by the scope of Yes) appears next to each available ECCN-
driven License Exception. ``N/A'' will be noted for License Exceptions 
that are not available within a particular entry. If one or more 
License Exceptions appear to apply to your transaction, you must 
consult part 740 of the EAR to review the conditions and restrictions 
applicable to each available License Exception.
    (iii) List of Items Controlled. (A) Units. The unit of measure 
applicable to each entry is identified in the ``Units'' header. Most 
measurements used in the CCL are expressed in metric units with an 
inch-pound conversion where appropriate. Note that in some ECCNs the 
inch-pound unit will be listed first. In instances where other units 
are in general usage or specified by law, these will be used instead of 
metric. Generally, when there is a difference

[[Page 12758]]
between the metric and inch-pound figures, the metric standard will be 
used for classification and licensing purposes.
    (B) Related definitions. This header identifies, where appropriate, 
definitions or parameters that apply to all items controlled by the 
entry. The information provided in this section is unique to the entry, 
and hence not listed in the definitions contained in part 772 of the 
EAR.
    (C) Related controls. If another U.S. government agency or 
department has export licensing authority over items related to those 
controlled by an entry, a statement is included identifying the agency 
or department along with the applicable regulatory cite. An additional 
cross-reference may be included in instances where the scope of 
controls differs between a CCL entry and its corresponding entry on 
list maintained by the European Union. This information is provided to 
assist readers who use both lists.
    (D) Items. This header contains a positive list of all items 
controlled by a particular entry and must be reviewed to determine 
whether your item is controlled by that entry. In some entries, the 
list is contained within the entry heading. In these entries a note is 
included to direct you to the entry heading.


Sec. 738.3  Commerce Country Chart structure.

    (a) Scope. The Commerce Country Chart (Country Chart) allows you to 
determine, based on the Reason(s) for Control associated with your 
item, if you need a license to export or reexport your item to a 
particular destination. There are only two instances where the chart 
cannot be used for this purpose:
    (1) Items controlled for short supply reasons. Due to the unique 
nature of these controls, entries controlled for Short Supply reasons 
will send you directly to part 754 of the EAR. Part 754 of the EAR is 
self-contained and includes information on licensing requirements, 
licensing policies, and all available License Exceptions, for items 
controlled for Short Supply reasons.
    (2) Unique entries. The following are unique entries where you do 
not need to consult the Country Chart to determine whether a license is 
required.
    (A) ECCNs 0A983 and 5A980. A license is required for all 
destinations of items controlled under these entries. No License 
Exceptions apply. If your item is controlled by 0A983 or 5A980 you 
should proceed directly to part 748 of the EAR for license application 
instructions and Sec. 742.11 or Sec. 742.13 of the EAR for information 
on the licensing policy relevant to these types of applications.
    (B) ECCNs 0A986, 0A988, 1A988, 2A994, 2D994, 2E994 and 2B985. A 
license is required for items controlled under these entries only to 
the specific countries identified within each entry.
    (b) Countries. The first column of the Country Chart lists all 
countries in alphabetical order. There are a number of destinations 
that are not listed in the Country Chart contained in Supplement No. 1 
to part 738. If your destination is not listed on the Country Chart and 
such destination is a territory, possession, or department of a country 
included on the Country Chart, the EAR accords your destination the 
same licensing treatment as the country of which it is a territory, 
possession, or department. For example, if your destination is the 
Cayman Islands, a dependent territory of the United Kingdom, consult 
the United Kingdom on the Country Chart for licensing requirements.
    (c) Columns. Stretching out to the right are horizontal headers 
identifying the various Reasons for Control. Under each Reason for 
Control header are diagonal column identifiers capping individual 
columns. Each column identifier consists of the two letter Reason for 
Control and a column number. (e.g., CB Column 1). The column 
identifiers correspond to those listed in the ``Country Chart'' header 
within the ``License Requirements'' section of each ECCN.
    (d) Cells. The symbol ``X'' is used to denote licensing 
requirements on the Country Chart. If an ``X'' appears in a particular 
cell, transactions subject to that particular Reason for Control/
Destination combination require a license. There is a direct 
correlation between the number of ``X''s applicable to your transaction 
and the number of licensing reviews your application will undergo.


Sec. 738.4  Determining whether a license is required.

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

[[Page 12759]]

    (b) Sample analysis using the CCL and Country Chart. (1) Scope. The 
following sample entry and related analysis is provided to illustrate 
the type of thought process you must complete in order to determine 
whether a license is required to export or reexport a particular item 
to a specific destination using the CCL in combination with the Country 
Chart.
    (2) Sample CCL entry.
    2A000: Entry heading.

License Requirements

    Reason for Control: NS, NP, AT

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

License Exceptions

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

List of Items Controlled

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

    a. Having x.
    b. Having z.
    (3) Sample analysis. After consulting the CCL, I determine my item, 
valued at $10,000, is classified under ECCN 2A000.a. I read that the 
entire entry is controlled for national security, and anti-terrorism 
reasons. Since my item is classified under paragraph .a, and not .b, I 
understand that though nuclear nonproliferation controls apply to a 
portion the entry, they do not apply to my item. I note that the 
appropriate Country Chart column identifiers are NS Column 2 and AT 
Column 1. Turning to the Country Chart, I locate my specific 
destination, India, and see that an ``X'' appears in the NS Column 2 
cell for India, but not in the AT Column 1 cell. I understand that a 
license is required, unless my transaction qualifies for a License 
Exception or Special Comprehensive License. From the License Exception 
LVS value listed in the entry, I know immediately that my proposed 
transaction exceeds the value limitation associated with LVS. Noting 
that License Exception GBS is ``Yes'' for this entry, I turn to part 
740 of the EAR to review the provisions related to use of GBS.
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[[Page 12768]]


PART 740--LICENSE EXCEPTIONS

Sec.
740.1  Introduction.
740.2  Restrictions on all License Exceptions.
740.3  License Exceptions based on the Commerce Control List (LST).
740.4  Temporary imports, exports, and reexports (TMP).
740.5  Servicing and replacement of parts and equipment (RPL).
740.6  Governments and international organizations (GOV).
740.7  Gift parcels and humanitarian donations (GFT).
740.8  Technology and software--unrestricted (TSU).
740.9  Baggage (BAG).
740.10  Aircraft and vessels (AVS).
740.11  Additional Permissive Reexports (APR).

Supplement No. 1 to Part 740--Country Groups

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

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 740.1  Introduction.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C.
    (a) Scope. A ``License Exception'' is an authorization contained in 
this part that allows you to export or reexport, under stated 
conditions, items subject to the Export Administration Regulations 
(EAR) that would otherwise require a license under General Prohibitions 
One, Two, or Three, as indicated under one or more of the Export 
Control Classification Numbers (ECCN) in the Commerce Control List 
(CCL) in part 774 of the EAR. If your export or reexport is subject to 
General Prohibition Six for embargoed destinations, refer to part 746 
of the EAR concerning embargoed destinations to determine the 
availability of any License Exception. Special commodity controls apply 
to short supply items. Exceptions for items listed on the CCL as 
controlled for Short Supply reasons are found in part 754 of the EAR. 
If your export or reexport is subject General Prohibition Seven, 
consult part 744 of the EAR. If your export or reexport is subject to 
General Prohibitions Four, Five, Eight, Nine, or Ten, then no License 
Exceptions apply.
    (b) Certification. By using any of the License Exceptions you are 
certifying that the terms, provisions, and conditions for the use of 
the License Exception described in the EAR have been met. Please refer 
to part 758 of the EAR for clearance of shipments and documenting the 
use of License Exceptions.
    (c) License Exception groupings and symbols. License Exceptions are 
grouped together; each grouping bears a three letter symbol that will 
be used for export clearance purposes (see paragraph (d) of this 
section). Additionally, each License Exception bears a separate 
designator, of three or four letters, for convenience in distinguishing 
between License Exceptions and for recordkeeping purposes.
    (d) Shipper's Export Declaration. (1) Clearing exports under 
License Exceptions. You must enter on any required Shipper's Export 
Declaration (SED) the letter code (e.g., LST, TMP) of the grouping of 
License Exceptions under which you are exporting. In the case of 
License Exceptions available under LST, except License Exception TSR 
(Technology and Software under Restriction), the ECCN of the item being 
exported must also be entered. Please refer to Sec. 758.3 of the EAR 
for the use of SEDs.
    (2) Clearing exports when no license is required (NLR). Certain 
items are listed on the CCL but do not require a license to certain 
destinations under General Prohibitions One, (Exports and Reexports in 
the Form Received), Two (Parts and Components Reexports), or Three 
(Foreign Produced Direct Product Reexports) (Sec. 732.6 (b)(1), (b)(2), 
or (b)(3) of the EAR). (You will have determined this by consulting the 
Country Chart and finding no ``X'' in the box(es) at the 
intersection(s) of your country of destination and the column headings 
assigned to your item by the CCL.) If General Prohibitions Four through 
Ten (Sec. 732.6 (b)(4) through (b)(10) of the EAR) also do not apply, 
you must clear exports of such items by entering the symbol ``NLR'' in 
the appropriate place on the Shippers Export Declaration. The term 
``NLR'' represents exports of listed items when no license is required. 
Such exports do not require that you qualify for a License Exception.
    (e) Destination Control Statement. You may be required to enter an 
appropriate Destination Control Statement on commercial documents in 
accordance with the Destination Control Statement requirements of 
Sec. 758.5 of the EAR.
    (f) Recordkeeping. Records of transactions involving exports under 
any of the License Exceptions must be maintained in accordance with the 
recordkeeping requirements of part 762 of the EAR.


Sec. 740.2  Restrictions on all License Exceptions.

    (a) You may not use any License Exception if any one or more of the 
following apply:
    (1) Your authorization to use a License Exception has been 
suspended or revoked, or your intended export does not qualify for a 
License Exception.
    (2) The export is contrary to a Denial Order. See part 764 of the 
EAR for a description of Denial Orders.
    (3) You know that the item will be reexported and such reexport is 
subject to one of the ten General Prohibitions, is not eligible for a 
License Exception, and has not been authorized by BXA.
    (4) You know that the export will be used for certain end-uses or 
is for certain end-users as provided and prohibited in part 744 of the 
EAR.
    (5) The item is for surreptitious interception of wire or oral 
communications controlled under ECCN 5A980, unless you are a U.S. 
Government agency (see Sec. 740.6(b)(2)(ii) of this part, Governments 
(GOVT)).
    (6) The commodity you are shipping is a specially designed crime 
control and detection instrument or equipment as described in 
Sec. 742.7 of the EAR and you are not shipping to Iceland, New Zealand, 
or countries listed in Country Group A:1 (see Supplement No. 1 to part 
740), unless the shipment is authorized under License Exception BAG, 
Sec. 740.9(e) of this part (shotguns and shotgun shells).
    (b) All License Exceptions are subject to revision, suspension, or 
revocation, in whole or in part, without notice. It may be necessary 
for BXA to stop a shipment or an export transaction at any stage of its 
progress, e.g., in order to prevent an unauthorized export or reexport. 
If a shipment is already en route, it may be further necessary to order 
the return or unloading of the shipment at any port of call.


Sec. 740.3  License Exceptions based on the Commerce Control List 
(LST).

    These License Exceptions are listed on the CCL. Each is designated 
by a three-letter symbol that appears both in the paragraph of this 
section describing its terms and on the CCL. All list-based License 
Exceptions use the symbol ``LST'' on shipping documentation for export 
clearance purposes.
    (a) Shipments of Limited Value (LVS). (1) Scope. License Exception 
LVS authorizes the export and reexport in a single shipment of eligible 
commodities as identified by ``LVS--$(value limit)'' on the CCL.
    (2) Eligible Destinations. This License Exception is available for 
all destinations in Country Group B (see

[[Page 12769]]
Supplement No. 1 to part 740), provided that the net value of the 
commodities included in the same order and controlled under the same 
ECCN entry on the CCL does not exceed the amount specified in the LVS 
paragraph for that entry.
    (3) Definitions. (i) Order. The term ``order'' as used in this 
Sec. 740.3 means a communication from a person in a foreign country, or 
that person's representative, expressing an intent to import 
commodities from the exporter. Although all of the details of the order 
need not be finally determined at the time of export, terms relating to 
the kinds and quantities of the commodities to be exported, as well as 
the selling prices of these commodities, must be finalized before the 
goods can be exported under License Exception LVS.
    (ii) Net value: for LVS shipments. The actual selling price of the 
commodities that are included in the same order and are controlled 
under the same entry on the CCL, less shipping charges, or the current 
market price of the commodities to the same type of purchaser in the 
United States, whichever is the larger. In determining the actual 
selling price or the current market price of the commodity, the value 
of containers in which the commodity is being exported may be excluded. 
The value for LVS purposes is that of the controlled commodity that is 
being exported, and may not be reduced by subtracting the value of any 
content that would not, if shipped separately, be subject to licensing. 
Where the total value of the containers and their contents must be 
shown on Shipper's Export Declarations under one Schedule B Number, the 
exporter, in effecting a shipment under this License Exception, must 
indicate the ``net value'' of the contained commodity immediately below 
the description of the commodity.
    (iii) Single shipment. All commodities moving at the same time from 
one exporter to one consignee or intermediate consignee on the same 
exporting carrier even though these commodities will be forwarded to 
one or more ultimate consignees. Commodities being transported in this 
manner will be treated as a single shipment even if the commodities 
represent more than one order or are in separate containers.
    (4) Additional eligibility requirements and restrictions. (i) 
Eligible orders. To be eligible for this License Exception, orders must 
meet the following criteria:
    (A) Orders must not exceed the applicable ``LVS'' dollar value 
limits. An order is eligible for shipment under LVS when the ``net 
value'' of the commodities controlled under the same entry on the CCL 
does not exceed the amount specified in the ``LVS'' paragraph for that 
entry. An LVS shipment may include more than one eligible order because 
LVS eligibility is based on the ``net value'' of the commodities in 
each order, instead of the ``net value'' of the commodities in the 
shipment.
    (B) Orders may not be split to meet the applicable LVS dollar 
limits. An order that exceeds the applicable LVS dollar value limit may 
not be misrepresented as two or more orders, or split among two or more 
shipments, to give the appearance of meeting the applicable LVS dollar 
value limit. However an order that meets all the LVS eligibility 
requirements, including the applicable LVS dollar value limit, may be 
split among two or more shipments.
    (C) Orders must be legitimate. Exporters and consignees may not, 
either collectively or individually, structure or adjust orders to meet 
the applicable LVS dollar value limits.
    (ii) Restriction on annual value of LVS orders. The total value of 
exports per calendar year to the same ultimate or intermediate 
consignee of commodities classified under a single ECCN may not exceed 
12 times the LVS value limit for that ECCN. This annual value limit 
applies to shipments to the same ultimate consignee even though the 
shipments are made through more than one intermediate consignee. There 
is no restriction on the number of orders that may be included in a 
shipment, except that the annual value limit per ECCN must not be 
exceeded.
    (iii) Orders where two or more LVS dollar value limits apply. An 
order may include commodities that are controlled under more than one 
entry on the CCL. In this case, the net value of the entire order may 
exceed the LVS dollar value for any single entry on the CCL. However, 
the net value of the commodities controlled under each ECCN entry shall 
not exceed the LVS dollar value limit specified for that entry.
    Example to paragraph (iii): An order includes commodities valued at 
$8,000. The order consists of commodities controlled under two ECCN 
entries, each having an LVS value limit of $5000. Commodities in the 
order controlled under one ECCN are valued at $3,500 while those 
controlled under the other ECCN are valued at $4,500. Since the net 
value of the commodities controlled under each entry falls within the 
LVS dollar value limits applicable to that entry, the order may be 
shipped under this License Exception.
    (iv) Prohibition against evasion of license requirements. Any 
activity involving the use of this License Exception to evade license 
requirements is prohibited. Such devices include, but are not limited 
to, the splitting or structuring of orders to meet applicable LVS 
dollar value limits, as prohibited by paragraphs (a)(4)(i) (B) and (C) 
of this section.
    (5) Reexports. Commodities may be reexported under this License 
Exception, provided that they could be exported from the United States 
to the new country of destination under LVS.
    (b) Shipments to Country Group B countries (GBS). License Exception 
GBS authorizes exports and reexports to Country Group B (see Supplement 
No. 1 to part 740) of those commodities controlled for national 
security reasons and identified by ``GBS--Yes'' on the CCL.
    (c) Civil end-users (CIV). (1) Scope. License Exception CIV 
authorizes exports and reexports of national security controlled items 
identified by ``CIV--Yes'' on the CCL only to civil end-users for civil 
end-uses in Country Group D:1. (See Supplement No. 1 to part 740.) CIV 
may not be used for exports and reexports to military end-users or to 
known military uses. Such exports and reexports will continue to 
require a license. In addition to conventional military activities, 
military uses include any proliferation activities described and 
prohibited by part 744 of the EAR. A license is also required for 
transfer to military end-users or end-uses in eligible countries of 
items exported under CIV.
    (d) Technology and software under restriction (TSR). (1) Scope. 
License Exception TSR permits exports and reexports of technology and 
software subject to national security controls and identified by 
``TSR--Yes'' in entries on the CCL only to the destinations in Country 
Group B. (See Supplement No. 1 to part 740.) A written assurance is 
required from the consignee before exporting under this License 
Exception.
    (i) Required assurance for export of technology. You may not export 
or reexport technology under this License Exception until you have 
received from the importer a written assurance that, without a BXA 
license or License Exception, the importer will not:
    (A) Reexport or release the technology to a national of a country 
in Country Groups D:1 or E:2; or
    (B) Export to Country Groups D:1 or E:2 the direct product of the 
technology, if such foreign produced direct product is subject to 
national security controls as identified on the CCL (See General 
Prohibition Three, Sec. 736.2(b)(3) of the EAR); or

[[Page 12770]]

    (C) If the direct product of the technology is a complete plant or 
any major component of a plant, export to Country Groups D:1 or E:2 the 
direct product of the technology, if such foreign produced direct 
product is subject to national security controls as identified on the 
CCL or is subject to State Department controls under the U.S. Munitions 
List (22 CFR part 121).
    (ii) Required assurance for export of software. You may not export 
or reexport software under this License Exception until you have 
received from the importer a written assurance that, without a BXA 
license or License Exception, the importer will neither:
    (A) Reexport or release the software or the source code for the 
software to a national of a country in Country Groups D:1 or E:2; nor
    (B) Export to Country Groups D:1 or E:2 the direct product of the 
software, if such foreign produced direct product is subject to 
national security controls as identified on the CCL. (See General 
Prohibition Three, Sec. 736.2(b)(3) of the EAR).
    (iii) Form of written assurance. The required assurance may be made 
in the form of a letter or any other written communication from the 
importer, or the assurance may be incorporated into a licensing 
agreement that specifically includes the assurances. An assurance 
included in a licensing agreement is acceptable only if the agreement 
specifies that the assurance will be honored even after the expiration 
date of the licensing agreement. If such a written assurance is not 
received, License Exception TSR is not applicable and a license is 
required. The license application must include a statement explaining 
why assurances could not be obtained.
    (iv) Other License Exceptions. The requirements in this License 
Exception do not apply to the export of technology or software under 
other License Exceptions, or to the export of technology or software 
included in an application for the foreign filing of a patent, provided 
the filing is in accordance with the regulations of the U.S. Patent 
Office.
    (2) Reserved.
    (e) Computers (CTP). (1) Scope. License Exception CTP authorizes 
exports and reexports of computers and specially designed components 
therefor, exported or reexported separately or as part of a system, and 
related equipment therefor when exported or reexported with these 
computers as part of a system, for consumption in Computer Tier 
countries as provided by this section. You may not use this License 
Exception to export or reexport items that you know will be used to 
enhance the CTP beyond the eligibility limit allowed to your country of 
destination. When evaluating your computer to determine License 
Exception CTP eligibility, use the CTP parameter to the exclusion of 
other technical parameters for computers classified under ECCN 4A003, 
except of parameters specified as Missile Technology (MT) concerns, 
4A003.e (equipment performing analog-to-digital conversions exceeding 
the limits in ECCN 3A001.a.5), and graphic accelerators or graphic 
coprocessors exceeding a ``3-D vector rate'' of 10,000,000. This 
License Exception does not authorize export or reexport of such graphic 
accelerators or coprocessors, or of computers controlled for MT 
reasons.
    (2) Computer Tier 1. (i) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Australia, Austria, Belgium, Denmark, Finland, France, Germany, 
Greece, the Holy See, Iceland, Ireland, Italy, Japan, Liechtenstein, 
Luxembourg, Mexico, Monaco, Netherlands, New Zealand, Norway, Portugal, 
San Marino, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
    (ii) Eligible Computers. The computers eligible for License 
Exception CTP are those with a CTP greater than 2,000 MTOPS.
    (3) Computer Tier 2. (i) Eligible countries. The countries that are 
eligible to receive exports under this License Exception include 
Antigua and Barbuda, Argentina, Bahamas, Barbados, Bangladesh, Belize, 
Benin, Bhutan, Bolivia, Botswana, Brazil, Brunei, Burkina Faso, Burma, 
Burundi, Cambodia, Cameroon, Cape Verde, Central Africa, Chad, Chile, 
Colombia, Congo, Costa Rica, Cote d'Ivoire, Cyprus, Czech Republic, 
Dominica, Dominican Republic, Ecuador, El Salvador, Equatorial Guinea, 
Eritrea, Ethiopia, Fiji, Gabon, Gambia (The), Ghana, Grenada, 
Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong, 
Hungary, Indonesia, Jamaica, Kenya, Kiribati, Korea (Republic of), 
Laos, Lesotho, Liberia, Madagascar, Malawi, Malaysia, Maldives, Mali, 
Malta, Marshall Islands, Mauritius, Micronesia (Federated States of), 
Mozambique, Namibia, Nauru, Nepal, Nicaragua, Niger, Nigeria, Palau, 
Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Rwanda, 
St. Kitts & Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome & 
Principe, Senegal, Seychelles, Sierra Leone, Singapore, Slovak 
Republic, Slovenia, Solomon Islands, Somalia, South Africa, Sri Lanka, 
Surinam, Swaziland, Taiwan, Tanzania, Togo, Tonga, Thailand, Trinidad 
and Tobago, Tuvalu, Uganda, Uruguay, Venezuela, Western Sahara, Western 
Samoa, Zaire, Zambia, and Zimbabwe.
    (ii) Eligible computers. The computers eligible for License 
Exception CTP are those having a Composite Theoretical Performance 
(CTP) greater than 2000, but equal to or less than 10,000 Millions of 
Theoretical Operations Per Second (MTOPS).
    (4) Computer Tier 3. (i) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, 
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina,1 Bulgaria, 
China (People's Republic of), Comoros, Croatia,2 Djibouti, Egypt, 
Estonia, Georgia, India, Israel, Jordan, Kazakhstan, Kuwait, 
Kyrgyzstan, Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav 
Republic of), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, 
Qatar, Romania, Russia, Saudi Arabia, Serbia & Montenegro, Tajikistan, 
Tunisia, Turkmenistan, Ukraine, United Arab Emirates, Uzbekistan, 
Vanuatu, Vietnam, and Yemen.

    \1\ Except as provided in 31 CFR part 585.
    \2\ Except as provided in 31 CFR part 585.
---------------------------------------------------------------------------

    (ii) Eligible computers. The computers eligible for License 
Exception CTP are those having a Composite Theoretical Performance 
(CTP) greater than 2,000 Millions of Theoretical Operations Per Second 
(MTOPS), but less than or equal to 7,000 MTOPS.
    (iii) Eligible exports. Only exports and reexports to permitted 
end-users and end-uses located in countries in Computer Tier 3. License 
Exception CTP does not authorize exports and reexports to Computer Tier 
3 for military end-users and end-uses and nuclear, chemical, 
biological, or missile end-users and end-uses defined in part 744 of 
the EAR. Exports and reexports under this License Exception may not be 
made to known military end-users or to known military end-uses or known 
proliferation end-uses or end-users defined in part 744 of the EAR. 
Such exports and reexports will continue to require a license and will 
be considered on a case-by-case basis. Retransfers to military end-
users or end-uses and defined proliferation end-users and end-uses in 
eligible countries are strictly prohibited without prior authorization.
    (5) Restrictions. (i) Computers eligible for License Exception CTP 
may not be accessed either physically or computationally by nationals 
of Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria, except that 
commercial

[[Page 12771]]
consignees described in Sec. 742.12 of the EAR are prohibited only from 
giving such nationals user-accessible programmability.
    (ii) Computers, software and specially designed technology eligible 
for License Exception CTP may not be reexported/retransferred without 
prior authorization from BXA i.e., a license, a permissive reexport, 
another License Exception, or ``No License Required''. This restriction 
must be conveyed to the consignee, via the Destination Control 
Statement, see Sec. 758.5 of the EAR.
    (6) Recordkeeping requirements. In addition to the recordkeeping 
requirements in part 762 of the EAR, you must keep records of each 
export under License Exception CTP. These records will be made 
available to the U.S. Government on request. The records must include 
the following information:
    (i) Date of shipment;
    (ii) Name and address of the end-user and each intermediate 
consignee;
    (iii) CTP of each computer in shipment;
    (iv) Volume of computers in shipment;
    (v) Dollar value of shipment; and
    (vi) End-use.


Sec. 740.4  Temporary imports, exports, and reexports (TMP).

    These License Exceptions authorize various temporary exports and 
reexports (TEMP); exports and reexports of items temporarily in the 
United States (TUS); and exports and reexports of beta test software 
(BETA). License Exceptions in Sec. 740.4 of this part use the symbol 
``TMP'' for export clearance purposes.
    (a) Temporary exports (TEMP). (1) Scope. You may export and 
reexport commodities and software for temporary use abroad (including 
use in international waters) subject to the conditions and exclusions 
described in paragraph (a)(4) of this section. Commodities and software 
shipped under this License Exception must be returned to the country 
from which they were exported as soon as practicable but, except in 
circumstances described in this section, no later than one year from 
the date of export. This requirement does not apply if the commodities 
and software are consumed or destroyed in the normal course of 
authorized temporary use abroad or an extension or other disposition is 
permitted by the EAR or in writing by BXA.
    (2) Eligible commodities and software. The following commodities 
and software are eligible to be shipped under this License Exception:
    (i) Tools of trade. Usual and reasonable kinds and quantities of 
commodities and software for use by employees of the exporter in a 
lawful enterprise or undertaking of the exporter. Eligible commodities 
and software may include, but are not limited to, such equipment as is 
necessary to commission or service goods, provided that the equipment 
is appropriate for this purpose and that all goods to be commissioned 
or serviced are of foreign origin, or if subject to the EAR, have been 
legally exported or reexported. The commodities and software must 
remain under the effective control of the exporter or the exporter's 
employee. The shipment of commodities and software may accompany the 
individual departing from the United States or may be shipped 
unaccompanied within one month before the individual's departure from 
the United States, or at any time after departure. No tools of the 
trade may be taken to Country Group E:2, and only equipment necessary 
to commission or service goods may be taken as tools of trade to 
Country Group D:1. (See Supplement No. 1 to part 740.)
    (ii) Kits consisting of replacement parts. Kits consisting of 
replacement parts may be exported or reexported under this section to 
all destinations, except Country Group E:2 (see Supplement No. 1 to 
part 740), provided that:
    (A) The parts would qualify for shipment under paragraph (c) of 
this section if exported as one-for-one replacements;
    (B) The kits remain under effective control of the exporter or an 
employee of the exporter; and
    (C) All parts in the kit are returned, except that one-for-one 
replacements may be made in accordance with the requirements of License 
Exception RPL and the defective parts returned (see PTS, Sec. 740.5(a) 
of this part).
    (iii) Exhibition and demonstration in Country Group B. Commodities 
and software for exhibition or demonstration in Country Group B (see 
Supplement No. 1 to part 740) may be exported or reexported under this 
provision provided that the exporter maintains ownership of the 
commodities and software while they are abroad and provided that the 
exporter, an employee of the exporter, or the exporter's designated 
sales representative retains effective control over the commodities and 
software while they are abroad. The commodities and software may not be 
used for their intended purpose while abroad, except to the minimum 
extent required for effective demonstration. The commodities and 
software may not be exhibited or demonstrated at any one site more than 
120 days after installation and debugging, unless authorized by BXA. 
However, before or after an exhibition or demonstration, pending 
movement to another site, return to the United States or the foreign 
reexporter, or BXA approval for other disposition, the commodities and 
software may be placed in a bonded warehouse or a storage facility 
provided that the exporter retains effective control over their 
disposition. The export documentation for this type of transaction must 
show the U.S. exporter as ultimate consignee, in care of the person who 
will have control over the commodities and software abroad.
    (iv) Inspection and calibration. Commodities to be inspected, 
tested, calibrated or repaired abroad.
    (v) Containers. Containers for which another License Exception is 
not available and that are necessary for export of commodities. 
However, this License Exception does not authorize the export of the 
container's contents, which, if not exempt from licensing, must be 
separately authorized for export under either a License Exception or a 
license.
    (vi) Broadcast material. (A) Video tape containing program material 
recorded in the country of export to be publicly broadcast in another 
country.
    (B) Blank video tape (raw stock) for use in recording program 
material abroad.
    (vii) Assembly in Mexico. Commodities to be exported to Mexico 
under Customs entries that require return to the United States after 
processing, assembly, or incorporation into end products by companies, 
factories, or facilities participating in Mexico's in-bond 
industrialization program (Maquilladora), provided that all resulting 
end-products (or the commodities themselves) are returned to the United 
States.
    (viii) News media. (A) Commodities necessary for news-gathering 
purposes (and software necessary to use such commodities) may accompany 
``accredited'' news media personnel (i.e., persons with credentials 
from a news gathering or reporting firm) to Country Groups D:1 or E:2 
(see Supplement No. 1 to part 740) if the commodities:
    (1) Are retained under ``effective control'' of the exporting news 
gathering firm;
    (2) Remain in the physical possession of the news media personnel. 
The term physical possession for purposes of this paragraph 
(a)(2)(viii), news media, is defined as maintaining effective measures 
to prevent unauthorized access (e.g., securing equipment in

[[Page 12772]]
locked facilities or hiring security guards to protect the equipment); 
and
    (3) Are removed with the news media personnel at the end of the 
trip.
    (B) When exporting under this paragraph (a)(2)(viii) from the 
United States, the exporter must send a copy of the packing list or 
similar identification of the exported commodities, to: U.S. Department 
of Commerce, Bureau of Export Administration, Office of Enforcement 
Support, Room H4069, 14th Street and Constitution Avenue, N.W., 
Washington, DC 20230, or any of its field offices, specifying the 
destination and estimated dates of departure and return. The Office of 
Export Enforcement (OEE) may spot check returns to assure that this 
License Exception is being used properly.
    (C) Commodities or software necessary for news-gathering purposes 
that accompany news media personnel to all other destinations shall be 
exported or reexported under paragraph (a)(2)(i), tools of trade, of 
this section if owned by the news gathering firm, or if they are 
personal property of the individual news media personnel. Note that 
paragraphs (a)(2)(i), tools of trade and (a)(2)(viii), news media, of 
this section do not preclude independent ``accredited'' contract 
personnel, who are under control of news gathering firms while on 
assignment, from utilizing these provisions, provided that the news 
gathering firm designate an employee of the contract firm to be 
responsible for the equipment.)
    (3) Special restrictions. (i) Destinations. (A) No commodity or 
software may be exported under this License Exception to Country Group 
E:2 (see Supplement No. 1 to part 740) except as permitted by paragraph 
(a)(2)(viii), news media, of this section;
    (B) No commodity or software may be exported under this License 
Exception to Country Group D:1 (see Supplement No. 1 to part 740) 
except:
    (1) Commodities and software exported under paragraph (a)(2)(viii), 
news media, of this section;
    (2) Commodities and software exported under paragraph (a)(2)(i), 
tools of trade, of this section; and
    (3) Commodities exported as kits of replacement parts, consistent 
with the requirements of paragraph (a)(2)(ii) of this section.
    (C) These destination restrictions apply to temporary exports to 
and for use on any vessel, aircraft or territory under ownership, 
control, lease, or charter by any country in Country Group D:1 or E:2, 
or any national thereof. (See Supplement No. 1 to part 740.)
    (ii) Ineligible commodities or software. Commodities or software 
that will be used outside of Country Group A:4 (Nuclear Suppliers 
Group) (see Supplement No. 1 to part 740) either directly or indirectly 
in any sensitive nuclear activity as described in Sec. 744.2 of the EAR 
may not be exported or reexported to any destination under this License 
Exception.
    (iii) Use or disposition. No commodity or software may be exported 
or reexported under this License Exception if:
    (A) An order to acquire the commodity or software has been received 
before shipment;
    (B) The exporter has prior knowledge that the commodity or software 
will stay abroad beyond the terms of this License Exception; or
    (C) The commodity or software is for lease or rental abroad.
    (4) Return or disposal of commodities and software. All commodities 
and software exported or reexported under this License Exception must, 
if not consumed or destroyed in the normal course of authorized 
temporary use abroad, be returned as soon as practicable but no later 
than one year after the date of export, to the United States or other 
country from which the commodities and software were exported under 
this License Exception, or shall be disposed of or retained in one of 
the following ways:
    (i) Permanent export or reexport. If the exporter or the reexporter 
wishes to sell or otherwise dispose of the commodities or software 
abroad, except as permitted by this or other applicable License 
Exception, the exporter must request authorization by submitting a 
license application to BXA at the address listed in part 748 of the 
EAR. (See part 748 of the EAR for more information on license 
applications.) The request should comply with all applicable provisions 
of the EAR covering export directly from the United States to the 
proposed destination. The request must also be supported by any 
documents that would be required in support of an application for 
export license for shipment of the same commodities or software 
directly from the United States to the proposed destination. BXA will 
advise the exporter of its decision.
    (ii) Use of a license. An outstanding license may also be used to 
dispose of commodities or software covered by the License Exception 
described in this section, provided that the outstanding license 
authorizes direct shipment of the same commodity or software to the 
same new ultimate consignee in the new country of destination.
    (iii) Authorization to retain abroad beyond one year. If the 
exporter wishes to retain a commodity or software abroad beyond the 12 
months authorized by paragraph (a) of this section, the exporter must 
request authorization by submitting Form BXA-748P, Multipurpose 
Application, 90 days prior to the expiration of the 12 month period. 
The request must be sent to BXA at the address listed in part 748 of 
the EAR and should include the name and address of the exporter, the 
date the commodities or software were exported, a brief product 
description, and the justification for the extension. If BXA approves 
the extension request, the exporter will receive authorization for a 
one-time extension not to exceed six months. BXA normally will not 
allow an extension for commodities or software that have been abroad 
more than 12 months, nor will a second six month extension be 
authorized. Any request for retaining the commodities or software 
abroad for a period exceeding 18 months must be made in accordance with 
the requirements of paragraph (a)(4)(i) of this section.
    (5) Reexports. Commodities and software legally exported from the 
United States may be reexported to a new country(ies) of destination 
under this License Exception provided its terms and conditions are met 
and the commodities and software are returned to the country from which 
the reexport occurred.
    (b) Exports of items temporarily in the United States (TUS).
    Scope. License Exception TUS, describes the conditions for 
exporting foreign-origin items temporarily in the United States. 
Specifically, this License Exception includes the export of items 
moving in transit through the United States, imported for display at a 
U.S. exhibition or trade fair, returned because unwanted, or returned 
because refused entry.

    Note 1 to paragraph (b) of this section: A commodity withdrawn 
from a bonded warehouse in the United States under a ``withdrawal 
for export'' customs entry is considered as ``moving in transit''. 
It is not considered as ``moving in transit'' if it is withdrawn 
from a bonded warehouse under any other type of customs entry or if 
its transit has been broken for a processing operation, regardless 
of the type of customs entry.

    Note 2 to paragraph (b) of this section: Items shipped on board 
a vessel or aircraft and passing through the United States from one 
foreign country to another may be exported without a license 
provided that (a) while passing in transit through the United 
States, they have not been unladen from the

[[Page 12773]]

vessel or aircraft on which they entered, and (b) they are not 
originally manifested to the United States.)

    (1) Items moving in transit through the United States. Subject to 
the following conditions, this License Exception authorizes export of 
items moving in transit through the United States under a 
Transportation and Exportation (T. & E.) customs entry or an Immediate 
Exportation (I.E.) customs entry made at a U.S. Customs Office.
    (i) Items controlled for national security, nuclear proliferation, 
missile technology, or chemical and biological weapons reasons may not 
be exported to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 to 
part 740), respectively, under License Exception TUS.
    (ii) Items may not be exported to Country Group E:2 under this 
License Exception.
    (iii) The following may not be exported in transit from the United 
States under License Exception TUS:
    (A) Commodities shipped to the United States under an International 
Import Certificate, Form BXA-645P;
    (B) Chemicals controlled under ECCN 1C350; or
    (C) Horses for export by sea (refer to short supply controls in 
part 754 of the EAR).
    (iv) The provisions of this License Exception apply to all 
shipments from Canada moving in transit through the United States to 
any foreign destination, regardless of the nature of the commodities or 
software or their origin. For such shipments the customs office at the 
U.S. port of export will require a copy of Form B-13, Canadian Customs 
Entry, certified or stamped by Canadian customs authorities, except 
where the shipment is valued at less than $50.00. (In transit shipments 
originating in Canada that are exempt from U.S. licensing, or made 
under a U.S. license or applicable U.S. License Exception other than 
TUS do not require this form.) The commodity or software description, 
quantity, ultimate consignee, country of ultimate destination, and all 
other pertinent details of the shipment must be the same on a required 
Form B-13, as on Commerce Form 7513,3 or when Form 7513 is not 
required, must be the same as on Customs Form 7512. When there is a 
material difference, a corrected Form B-13 authorizing the shipment is 
required.

    \3\  The complete names of these forms are: Commerce Form 7513, 
``Shipper's Export Declaration for Intransit Goods''; Customs Form 
7512, ``Transportation Entry and Manifest of Goods Subject to 
Customs Inspection and Permit.''
---------------------------------------------------------------------------

    (2) Items imported for display at U.S. exhibitions or trade fairs. 
Subject to the following conditions, License Exception TUS authorizes 
the export of items that were imported into the United States for 
display at an exhibition or trade fair and were either entered under 
bond or permitted temporary free import under bond providing for their 
export and are being exported in accordance with the terms of that 
bond.
    (i) Items may be exported to the country from which imported into 
the United States. However, items originally imported from Cuba or 
North Korea may not be exported unless the U.S. Government had licensed 
the import from that country.
    (ii) Items may be exported to any destination other than the 
country from which imported except:
    (A) Items imported into the United States under an International 
Import Certificate;
    (B) Exports to Country Group E:2 (see Supplement No. 1 to part 
740); or
    (C) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 
to part 740) of items controlled for national security, missile 
technology, chemical and biological weapons reasons, or nuclear 
proliferation, respectively.
    (3) Return of unwanted shipments. A foreign-origin item may be 
returned under this License Exception to the country from which it was 
imported if its characteristics and capabilities have not been enhanced 
while in the United States. No foreign-origin items may be returned to 
Cuba, Libya, or North Korea.
    (4) Return of shipments refused entry. Shipments of items refused 
entry by the U.S. Customs Service, the Food and Drug Administration, or 
other U.S. Government agency may be returned to the country of origin, 
except to:
    (i) A destination in Cuba, Libya, or North Korea; or
    (ii) A destination from which the shipment has been refused entry 
because of the Foreign Assets Control Regulations of the Treasury 
Department, unless such return is licensed or otherwise authorized by 
the Treasury Department, Office of Foreign Assets Control (31 CFR part 
500).
    (c) Exports of beta test software (BETA). (1) Scope. This License 
Exception authorizes exports and reexports to eligible countries of 
beta test software intended for distribution to the general public.
    (2) Eligible countries. The countries that are eligible to receive 
exports and reexports under License Exception BETA are all countries 
except those Country Groups E:2.
    (3) Eligible software. All software that is controlled by the CCL 
(part 774 of the EAR), and under Commerce licensing jurisdiction, is 
eligible for export and reexport under this License Exception, subject 
to the restrictions in this section.
    (4) Conditions for use. Any beta test software program may be 
exported or reexported to eligible countries if all of the conditions 
under this section are met:
    (i) The software producer intends to market the software to the 
general public after completion of the beta testing, as described in 
the General Software Note found in Supplement No. 2 to part 774 of the 
EAR;
    (ii) The software producer provides the software to the testing 
consignee free-of-charge or at a price that does not exceed the cost of 
reproduction and distribution; and
    (iii) The software is designed for installation by the end-user 
without further substantial support from the supplier.
    (5) Importer Statement. Prior to shipping any eligible software 
under BETA, the exporter or reexporter must obtain the following 
statement from the testing consignee, which may be included in a 
contract, non-disclosure agreement, or other document that identifies 
the importer, the software to be exported, the country of destination, 
and the testing consignee.

    We certify that this beta test software will only be used for 
beta testing purposes, and will not be rented, leased, sold, 
sublicensed, assigned, or otherwise transferred. Further, we certify 
that we will not transfer or export any product, process, or service 
that is the direct product of the beta test software.
    (6) Use limitations. Only testing consignees that provide the 
importer statement required by paragraph (c)(5) of this section may 
execute any software received under this License Exception.
    (7) Return or disposal of software. All beta test software exported 
under this License Exception must be destroyed abroad or returned to 
the exporter within 30 days of the end of the beta test period as 
defined by the software producer or, if the software producer does not 
define a test period, within 30 days of completion of the consignee's 
role in the test. Among other methods, this requirement may be 
satisfied by a software module that will destroy the software and all 
its copies at or before the end of the beta test period.
Sec. 740.5  Servicing and replacement of parts and equipment (RPL).
    These License Exceptions authorize exports and reexports associated 
with one-for-one replacement of parts (PTS) or servicing and 
replacement of equipment (SNR). The symbol ``RPL'' is

[[Page 12774]]
used on shipping documentation for export clearance purposes.
    (a) Parts (PTS). (1) Scope. This License Exception authorizes the 
export and reexport of one-for-one replacement parts for previously 
exported equipment.
    (2) One-for-one replacement of parts. (i) The term ``replacement 
parts'' as used in this section means parts needed for the immediate 
repair of equipment, including replacement of defective or worn parts. 
(It includes subassemblies but does not include test instruments or 
operating supplies). (The term ``subassembly'' means a number of 
components assembled to perform a specific function or functions within 
a commodity. One example would be printed circuit boards with 
components mounted thereon. This definition does not include major 
subsystems such as those composed of a number of subassemblies.) Items 
that improve or change the basic design characteristics, e.g., as to 
accuracy, capability, performance or productivity, of the equipment 
upon which they are installed, are not deemed to be replacement parts. 
For kits consisting of replacement parts, consult Sec. 740.4(a)(2)(ii) 
of this part (TEMP).
    (ii) Parts may be exported only to replace, on a one-for-one basis, 
parts contained in commodities that were: legally exported from the 
United States; legally reexported; or made in a foreign country 
incorporating authorized U.S.-origin parts. The conditions of the 
original U.S. authorization must not have been violated. Accordingly, 
the export of replacement parts may be made only by the party who 
originally exported or reexported the commodity to be repaired, or by a 
party that has confirmed the appropriate authority for the original 
transaction.
    (iii) The parts to be replaced must either be destroyed abroad or 
returned promptly to the person who supplied the replacement parts, or 
to a foreign firm that is under the effective control of that person.
    (3) Exclusions. (i) No replacement parts may be exported under this 
License Exception to repair a commodity exported under a license if 
that license included a condition that any subsequent replacement parts 
must be exported only under a license.
    (ii) No parts may be exported under this License Exception to be 
held abroad as spare parts or equipment for future use. Replacement 
parts may be exported to replace spare parts that were authorized to 
accompany the export of equipment, as those spare parts are utilized in 
the repair of the equipment. This will allow maintenance of the stock 
of spares at a consistent level as parts are used.
    (iii) No parts may be exported under PTS to any destination except 
Iceland, New Zealand, or the countries listed in Country Group A:1 (see 
Supplement No. 1 to part 740) if the item is to be incorporated into or 
used in nuclear weapons, nuclear explosive devices, nuclear testing 
related to activities described in Sec. 744.2(a) of the EAR, the 
chemical processing of irradiated special nuclear or source material, 
the production of heavy water, the separation of isotopes of source and 
special nuclear materials, or the fabrication of nuclear reactor fuel 
containing plutonium, as described in Sec. 744.2(a) of the EAR.
    (iv) No replacement parts shall be exported under this License 
Exception to Cuba, Iran, Iraq, Sudan, Syria, Libya, or North Korea 
(countries designated by the Secretary of State as supporting acts of 
international terrorism) if the commodity to be repaired is an 
``aircraft'' (as defined in part 772 of the EAR) or national security 
controlled commodity.
    (v) The conditions described in this paragraph (a)(3) relating to 
replacement of parts do not apply to reexports to a foreign country of 
parts as replacements in foreign-origin products, if at the time the 
replacements are furnished, the foreign-origin product is eligible for 
export to such country under any of the License Exceptions in this part 
or the exceptions in Sec. 734.4(b)(2) (ii) and (iii) of the EAR.
    (4) Reexports. Parts exported from the United States may be 
reexported to a new country of destination, provided that the 
restrictions described in paragraphs (a) (2) and (3) of this section 
are met. A party reexporting U.S.-origin one-for-one replacement parts 
shall ensure that the commodities being repaired were shipped to their 
present location in accordance with U.S. law and continue to be legally 
used, and that either before or promptly after reexport of the 
replacement parts, the replaced parts are either destroyed or returned 
to the United States, or to the foreign firm in Country Group B (see 
Supplement No. 1 to part 740) that shipped the replacement parts.
    (b) Servicing and Replacement (SNR). (1) Scope. This License 
Exception SNR authorizes the export and reexport of items that were 
returned to the United States for servicing and the replacement of 
defective or unacceptable U.S.-origin commodities and software.
    (2) Commodities and software sent to a United States or foreign 
party for servicing. (i) Definition. ``Servicing'' as used in this 
section means inspection, testing, calibration or repair, including 
overhaul and reconditioning. The servicing shall not have improved or 
changed the basic characteristics, e.g., as to accuracy, capability, 
performance, or productivity of the commodity or software as originally 
authorized for export or reexport.
    (ii) Return of serviced commodities and software. When the serviced 
commodity or software is returned, it may include any replacement or 
rebuilt parts necessary to its repair and may be accompanied by any 
spare part, tool, accessory, or other item that was sent with it for 
servicing.
    (iii) Commodities and software imported from Country Group D:1 
except the PRC. Commodities and software legally exported or reexported 
to a consignee in Country Group D:1 (except the People's Republic of 
China (PRC)) (see Supplement No. 1 to part 740) that are sent to the 
United States or a foreign party for servicing may be returned under 
this License Exception to the country from which it was sent, provided 
that both of the following conditions are met:
    (A) The exporter making the shipment is the same person or firm to 
whom the original license was issued; and
    (B) The end-use and the end-user of the serviced commodities or 
software and other particulars of the transaction, as set forth in the 
application and supporting documentation that formed the basis for 
issuance of the license have not changed.
    (iv) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria. No 
repaired commodity or software may be exported or reexported to Cuba, 
Iran, Iraq, Libya, North Korea, Sudan, or Syria under this section.
    (3) Replacements for defective or unacceptable U.S.-origin 
equipment.
    (i) Subject to the following conditions, commodities or software 
may be exported or reexported to replace defective or otherwise 
unusable (e.g., erroneously supplied) items.
    (A) The commodity or software to be replaced must have been 
previously exported or reexported in its present form under a license 
or authorization granted by BXA.
    (B) No commodity or software may be exported or reexported to 
replace equipment that is worn out from normal use, nor may any 
commodity or software be exported to be held in stock abroad as spare 
equipment for future use.
    (C) The replacement item may not improve the basic characteristic, 
e.g., as to accuracy, capability, performance, or productivity, of the 
equipment as

[[Page 12775]]
originally approved for export or reexport under a license issued by 
BXA.
    (D) No shipment may be made to Cuba, Iran, Iraq, Libya, North 
Korea, Sudan, or Syria, or to any other destination to replace 
defective or otherwise unusable equipment owned or controlled by, or 
leased or chartered to, a national of any of those countries.
    (ii) Special conditions applicable to exports to Country Group B 
and Country Group D:1. (See Supplement No. 1 to part 740.) In addition 
to the general conditions in paragraph (b)(3)(i) of this section, the 
following conditions apply to exports or reexports of replacements for 
defective or unacceptable U.S.-origin commodities or software to a 
destination in Country Group B or Country Group D:1:
    (A) By making such an export or reexport, the exporter represents 
that all the requirements of paragraph (c) of this section have been 
met and undertakes to destroy or return the replaced parts as provided 
in paragraph (b)(3)(ii)(C) of this section.
    (B) The defective or otherwise unusable equipment must be replaced 
free of charge, except for transportation and labor charges. If 
exporting to the countries listed in Country Group D:1 (except the 
PRC), the exporter shall replace the commodity or software within the 
warranty period or within 12 months of its shipment to the ultimate 
consignee in the country of destination, whichever is shorter.
    (C) The commodity or software to be replaced must either be 
destroyed abroad or returned to the United States, or to a foreign firm 
in Country Group B that is under the effective control of the U.S. 
exporter, or to the foreign firm that is providing the replacement part 
or equipment. The destruction or return must be effected before, or 
promptly after, the replacement item is exported from the United 
States.
    (D) A party reexporting replacements for defective or unacceptable 
U.S.-origin equipment must ensure that the commodities or software 
being replaced were shipped to their present location in accordance 
with U.S. law and continue to be legally used.


Sec. 740.6  Governments and international organizations (GOV).

    These Licenses Exceptions authorize exports and reexports for 
international nuclear safeguards (SAFE); U.S. government agencies or 
personnel, and agencies of cooperating governments (GOVT). The License 
Exceptions in Sec. 740.6 of this part use the symbol ``GOV'' for export 
clearance purposes.
    (a) International Safeguards (SAFE). (1) Scope. You may export and 
reexport commodities or software to the International Atomic Energy 
Agency (IAEA) and the European Atomic Energy Community (Euratom), and 
reexports by IAEA and Euratom for official international safeguard use, 
as follows:
    (i) Commodities or software consigned to the IAEA at its 
headquarters in Vienna, or field offices in Toronto, Ontario, Canada or 
Tokyo, Japan for official international safeguards use. The IAEA is an 
international organization that establishes and administers safeguards 
designed to ensure that special nuclear materials and other related 
nuclear facilities, services, and information are not diverted from 
peaceful purposes to non-peaceful purposes.
    (ii) Commodities or software consigned to the Euratom Safeguards 
Directorate in Luxembourg, Luxembourg for official international 
safeguards use. Euratom is an international organization of European 
countries with headquarters in Luxembourg. Euratom establishes and 
administers safeguards designed to ensure that special nuclear 
materials and other related nuclear facilities, services, and 
information are not diverted from peaceful purposes to non-peaceful 
purposes.
    (iii) Commodities consigned to IAEA or Euratom may be reexported to 
any country for IAEA or Euratom international safeguards use provided 
that IAEA or Euratom maintains control of or otherwise safeguards the 
commodities and returns the commodities to the locations described in 
paragraphs (a)(1)(i) and (a)(1)(ii) of this section when they become 
obsolete, are no longer required, or are replaced.
    (iv) Commodity or software shipments may be made by commercial 
companies under direct contract with IAEA or Euratom, or by Department 
of Energy National Laboratories as directed by the Department of State 
or the Department of Energy.
    (v) The monitoring functions of IAEA and Euratom are not subject to 
the restrictions on prohibited safeguarded nuclear activities described 
in Sec. 744.2(a)(3) of the EAR.
    (vi) When commodities or software originally consigned to IAEA or 
Euratom are no longer in IAEA or Euratom official safeguards use, such 
commodities may only be disposed of in accordance with the regulations 
in the EAR.
    (2) Exclusions. No computers with a CTP greater than 10,000 MTOPS 
may be exported or reexported to countries listed in Computer Tiers 3 
or 4 under License Exception SAFE. See Sec. 742.12 of the EAR for a 
complete list of the countries within Computer Tiers 3 and 4.
    (b) Governments (GOVT). (1) Scope. License Exception (GOVT) 
authorizes exports and reexports of the items listed in paragraph 
(b)(2) of this section to personnel and agencies of the U.S. Government 
or agencies of cooperating governments.
    (2) Eligibility. (i) Items for personal use by personnel and 
agencies of the U.S. Government. License Exception GOVT is available 
for items in quantities sufficient only for the personal use of members 
of the U.S. Armed Forces or civilian personnel of the U.S. Government 
(including U.S. representatives to public international organizations), 
and their immediate families and servants. Items for personal use 
include household effects, food, beverages, and other daily 
necessities.
    (ii) Items for official use by personnel and agencies of the U.S. 
Government. This License Exception is available for items consigned to 
and for the official use of any agency of the U.S. Government.
    (iii) Items for official use within national territory by agencies 
of cooperating governments. This License Exception is available for all 
items consigned to and for the official use of any agency of a 
cooperating government within the territory of any cooperating 
government, except:
    (A) Computers with a CTP greater than 10,000 MTOPS when destined 
for Argentina, Hong Kong, South Korea, Singapore, or Taiwan;
    (B) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons; or
    (C) Regional stability items controlled under Export Control 
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002, 
7D001, 7E001, 7E002, and 7E101, as described in Sec. 742.6(a)(1) of the 
EAR.
    (iv) Diplomatic and consular missions of a cooperating government. 
This License Exception is available for all items consigned to and for 
the official use of a diplomatic or consular mission of a cooperating 
government located in any country in Country Group B (see Supplement 
No. 1 to part 740), except:
    (A) Computers with a CTP greater than 10,000 MTOPS when destined 
for Argentina, Hong Kong, South Korea, Singapore, or Taiwan;
    (B) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons; or

[[Page 12776]]

    (C) Regional stability items controlled under Export Control 
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002, 
7D001, 7E001, 7E002, and 7E101, as described in Sec. 742.6(a)(1) of the 
EAR.
    (3) Definitions. (i) ``Agency of the U.S. Government'' includes all 
civilian and military departments, branches, missions, government-owned 
corporations, and other agencies of the U.S. Government, but does not 
include such national agencies as the American Red Cross or 
international organizations in which the United States participates 
such as the Organization of American States. Therefore, shipments may 
not be made under this License Exception to these non-government 
national or international agencies, except as provided in (b)(2)(i) of 
this section for U.S. representatives to these organizations.
    (ii) ``Agency of a cooperating government'' includes all civilian 
and military departments, branches, missions, and other governmental 
agencies of a cooperating national government. Cooperating governments 
are the national governments of countries listed in Country Group A:1 
(see Supplement No. 1 to part 740) and the national governments of 
Argentina, Austria, Finland, Ireland, Korea (Republic of), Singapore, 
Sweden, and Switzerland.


Sec. 740.7  Gift parcels and humanitarian donations (GFT).

    (a) Gift parcels (GIFT). (1) Scope. This License Exception (GIFT) 
authorizes exports and reexports of gift parcels by an individual 
(donor) addressed to an individual, or a religious, charitable or 
educational organization (donee) located in any destination for the use 
of the donee or the donee's immediate family (and not for resale). The 
gift parcel must be provided free of charge to the donee. However, 
payment by the donee of any handling charges or of any fees levied by 
the importing country (e.g., import duties, taxes, etc.) is not 
considered to be a cost to the donee for purposes of this definition of 
``gift parcel.'' 4

    \4\  Many foreign countries permit the entry, duty-free, of gift 
parcels that conform to regulations regarding contents and marking. 
To secure this advantage, the sender should show the words ``U.S.A. 
Gift Parcel'' on the addressee side of the package and on any 
required customs declarations. Information regarding the foreign 
postal regulations is available at local post offices. Senders of 
gift parcels who wish information regarding import duties of a 
foreign country should contact the nearest Commercial Office, 
Consulate or Embassy of the country concerned.

    Note to paragraph (a) of this section: A gift parcel, within the 
context of this License Exception GIFT, does not include multiple 
parcels exported in a single shipment for delivery to individuals 
residing in a foreign country. Such multiple gift parcels, if 
subject to the General Prohibitions described in Sec. 734.2(b) of 
the EAR, must be licensed by BXA. (See Sec. 748.9(e) of the EAR for 
---------------------------------------------------------------------------
licensing of multiple gift parcels).

    (2) Commodity, value and other limitations. (i) Eligible 
commodities. The commodities eligible for this License Exception are as 
follows:
    (A) The commodity must not be controlled for chemical and 
biological weapons (CB), missile technology (MT), national security 
(NS), or nuclear proliferation (NP) (see Commerce Control List, part 
774 of the EAR); and
    (B) The commodity must be of a type and in quantities normally 
given as gifts between individuals.

    (1) For Cuba, the only commodities that may be included in a gift 
parcel are the following items from Supplement No. 1 to part 746 of the 
EAR: food, vitamins, seeds, medicines, medical supplies and devices, 
hospital supplies and equipment, equipment for the handicapped, 
clothing, personal hygiene items, veterinary medicines and supplies, 
fishing equipment and supplies, soap-making equipment, and in addition 
receive-only radio equipment for reception of commercial/civil AM/FM 
and short wave publicly available frequency bands, and batteries for 
such equipment.
    (2) For all other destinations, eligible commodities include all 
items described in paragraph (a)(2)(i)(B)(1) of this section as well as 
all other items normally sent as gifts. Gold bullion, gold taels, and 
gold bars are prohibited as are items intended for resale or reexport.

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

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

[[Page 12777]]

distribution arrangements may consist of any one or more of the 
following:
    (i) A permanent staff maintained in the recipient country to 
monitor the receipt and distribution of the donations to the intended 
beneficiaries;
    (ii) Periodic spot-checks in the recipient country by members of 
the exporter's staff; or
    (iii) An agreement to utilize the services of a charitable 
organization that has a monitoring system in place.
    (4) Donations. To qualify for export under this License Exception, 
the items must be provided free of charge to the beneficiary. The 
payment by the beneficiary, however, of normal handling charges or fees 
levied by the importing country (e.g., import duties, taxes, etc.) is 
not considered to be a cost to the beneficiary for purposes of this 
section.
    (5) Ineligible commodities and software. The following commodities 
and software are not eligible for this License Exception:
    (i) Commodities and software controlled for national security, 
chemical or biological weapons, and nuclear non-proliferation, missile 
technology or crime control reasons (see supplement No. 1 to part 774 
of the EAR);
    (ii) Exports for large-scale projects of the kind associated with 
comprehensive economic growth, such as dams and hydroelectric plants; 
or
    (iii) Exports to Cuba of medical items excluded by Sec. 746.2(a)(3) 
of the EAR.
    (6) Eligible items. Eligible commodities and software are those 
listed in Supplement No. 2 to part 740.
    (7) Additional recordkeeping requirements. In addition to the 
recordkeeping requirements in part 762 of the EAR, donors must keep 
records containing the following information:
    (i) The donor organization's identity and past experience as an 
exporter of goods to meet basic human needs;
    (ii) Past and current countries to which the donative programs have 
been and are being directed, with particular reference to donative 
programs in embargoed destinations;
    (iii) Types of projects and commodities involved in the donative 
programs;
    (iv) Specific class(es) of beneficiaries of particular donated 
goods intended to be exported under this License Exception; and
    (vi) Information concerning the source of funding for the donative 
programs and the projected annual value of exports under this License 
Exception.


Sec. 740.8  Technology and software--unrestricted (TSU).

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

    Note: Neither this section nor its use means that the U.S. 
Government intends, or is committed, to approve a license 
application for any commodity, plant, software, or technology that 
may be the subject of the transaction to which such quotation, bid, 
or offer relates. Exporters are advised to include in any 
quotations, bids, or offers, and in any contracts entered into 
pursuant to such quotations, bids, or offers, a provision relieving 
themselves of liability in the event that a license (when required) 
is not approved by the Bureau of Export Administration.

    (c) Software updates (SUD). This License Exception authorizes 
exports and reexports of software updates that are intended for and are 
limited to correction of errors (``fixes'' to ``bugs'') in software 
lawfully exported or reexported (original software). Such software 
updates may be exported or reexported only to the same consignee to 
whom the original software was exported or reexported, and such 
software updates may not enhance the functional capacities of the 
original software. Such software updates may be exported or reexported 
to any destination to which the software for which they are required 
has been legally exported or reexported.
    (d) General Software Note (GSN): ``mass market'' software. (1) 
Scope. This License Exception authorizes exports and reexports of 
``mass market'' software subject to the General Software Note (see 
Supplement No. 2 to part 774 of the EAR; also referenced in this 
section).5

    \5\ ``Mass market'' software may fall under the classification 
of ``general use'' software for export clearance purposes. Exporters 
should consult the Census Bureau FTSR for possible SED requirements.
---------------------------------------------------------------------------

    (2) Provisions and destinations.
    (i) Destinations. This License Exception is available to all 
destinations except Cuba, Iran, Libya, North Korea, Sudan, and Syria.
    (ii) Provisions. This License Exception is available for software 
that is generally available to the public by being:
    (A) Sold from stock at retail selling points, without restriction, 
by means of:
    (1) Over the counter transactions;
    (2) Mail order transactions; or
    (3) Telephone call transactions; and
    (B) Designed for installation by the user without further 
substantial support by the supplier.


Sec. 740.9  Baggage (BAG).

    (a) Scope. This License Exception authorizes individuals leaving 
the United States and crew members of exporting carriers to take to any 
destination, as personal baggage, the classes of commodities and 
software described in this section.

[[Page 12778]]

    (b) Eligibility. Individuals leaving the United States may export 
and reexport any of the following commodities or software to any 
destination or series of destinations. Crew members may export and 
reexport only commodities and software described in paragraphs (b)(1) 
and (b)(2) of this section to any destination.
    (1) Personal effects. Usual and reasonable kinds and quantities for 
personal use of wearing apparel, articles of personal adornment, toilet 
articles, medicinal supplies, food, souvenirs, games, and similar 
personal effects, and their containers.
    (2) Household effects. Usual and reasonable kinds and quantities 
for personal use of furniture, household effects, household 
furnishings, and their containers.
    (3) Vehicles. Usual and reasonable kinds and quantities of 
vehicles, such as passenger cars, station wagons, trucks, trailers, 
motorcycles, bicycles, tricycles, perambulators, and their containers.
    (4) Tools of trade. Usual and reasonable kinds and quantities of 
tools, instruments, or equipment and their containers for use in the 
trade, occupation, employment, vocation, or hobby of the traveler.
    (c) Limits on eligibility. The export of any commodity or software 
may be limited or prohibited, if the kind or quantity is in excess of 
the limits described in this section. In addition, the commodities or 
software must be:
    (1) Owned by the individuals (or by members of their immediate 
families) or by crew members of exporting carriers on the dates they 
depart from the United States;
    (2) Intended for and necessary and appropriate for the use of the 
individuals or members of their immediate families, or by the crew 
members of exporting carriers;
    (3) Not intended for sale; and
    (4) Not exported under a bill of lading as cargo if exported by 
crew members.
    (d) Special provision: unaccompanied baggage. Individuals departing 
the United States may ship unaccompanied baggage, which is baggage sent 
from the United States on a carrier other than that on which an 
individual departs. Crew members of exporting carriers may not ship 
unaccompanied baggage. Unaccompanied shipments under this License 
Exception shall be clearly marked ``BAGGAGE.'' Shipments of 
unaccompanied baggage may be made at the time of, or within a 
reasonable time before or after departure of the consignee or owner 
from the United States. Personal baggage controlled for chemical and 
biological weapons (CB), missile technology (MT), national security 
(NS) or nuclear nonproliferation (NP) must be shipped within 3 months 
before or after the month in which the consignee or owner departs the 
United States. However, commodities controlled for CB, MT, NS or NP may 
not be exported under this License Exception to Country Group D or 
Country Group E:2. (See Supplement No. 1 to part 740.)
    (e) Special provisions: shotguns and shotgun shells. (1) A United 
States citizen or a permanent resident alien leaving the United States 
may export or reexport shotguns with a barrel length of 18 inches or 
over and shotgun shells under this License Exception, subject to the 
following limitations:
    (i) Not more than three shotguns may be taken on any one trip.
    (ii) The shotguns and shotgun shells must be with the person's 
baggage but they may not be mailed.
    (iii) The shotguns and shotgun shells must be for the person's 
exclusive use for legitimate hunting or lawful sporting purposes, 
scientific purposes, or personal protection, and not for resale or 
other transfer of ownership or control. Accordingly, except as provided 
in (e)(2) of this section, shotguns may not be exported permanently 
under this License Exception. All shotguns and unused shotgun shells 
must be returned to the United States.
    (2) A nonresident alien leaving the United States may export or 
reexport under this License Exception only such shotguns and shotgun 
shells as he or she brought into the United States under the provisions 
of Department of Treasury Regulations (27 CFR 178.115(d)).


Sec. 740.10  Aircraft and vessels (AVS).

    These License Exceptions authorize departure from the United States 
of foreign registry civil aircraft on temporary sojourn in the United 
States and of U.S. civil aircraft for temporary sojourn abroad; the 
export of equipment and spare parts for permanent use on a vessel or 
aircraft; and exports to vessels or planes of U.S. or Canadian registry 
and U.S. or Canadian Airlines' installations or agents. Generally, no 
License Exception symbol is necessary for export clearance purposes; 
however, when necessary, the symbol ``AVS'' may be used.
    (a) Aircraft on temporary sojourn. (1) Foreign registered aircraft. 
An operating civil aircraft of foreign registry that has been in the 
United States on a temporary sojourn may depart from the United States 
under its own power for any destination, provided that:
    (i) No sale or transfer of operational control of the aircraft to 
nationals of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria has 
occurred while in the United States;
    (ii) The aircraft is not departing for the purpose of sale or 
transfer of operational control to nationals of Cuba, Iran, Iraq, 
Libya, North Korea, Sudan, or Syria; and
    (iii) It does not carry from the United States any item for which 
an export license is required and has not been granted by the U.S. 
Government.
    (2) U.S. registered aircraft. (i) A civil aircraft of U.S. registry 
operating under an Air Carrier Operating Certificate, Commercial 
Operating Certificate, or Air Taxi Operating Certificate issued by the 
Federal Aviation Administration or conducting flights under operating 
specifications approved by the Federal Aviation Administration pursuant 
to 14 CFR part 129 of the regulations of the Federal Aviation 
Administration, may depart from the United States under its own power 
for any destination, provided that:
    (A) The aircraft does not depart for the purpose of sale, lease or 
other disposition of operational control of the aircraft, or its 
equipment, parts, accessories, or components to a foreign country or 
any national thereof;
    (B) The aircraft's U.S. registration will not be changed while 
abroad;
    (C) The aircraft is not to be used in any foreign military activity 
while abroad; and
    (D) The aircraft does not carry from the United States any item for 
which a license is required and has not been granted by the U.S. 
Government.
    (ii) Any other operating civil aircraft of U.S. registry may depart 
from the United States under its own power for any destination, except 
to Cuba, Iran, Iraq, Sudan, Syria, Libya, and North Korea (flights to 
these destinations require a license), provided that:
    (A) The aircraft does not depart for the purpose of sale, lease or 
other disposition of operational control of the aircraft, or its 
equipment, parts, accessories, or components to a foreign country or 
any national thereof;
    (B) The aircraft's U.S. registration will not be changed while 
abroad;
    (C) The aircraft is not to be used in any foreign military activity 
while abroad;
    (D) The aircraft does not carry from the United States any item for 
which an export license is required and has not been granted by the 
U.S. Government; and
    (E) The aircraft will be operated while abroad by a U.S. licensed 
pilot, except that during domestic flights within a foreign country, 
the aircraft may be

[[Page 12779]]
operated by a pilot currently licensed by that foreign country.
    (3) Criteria. The following nine criteria each must be met if the 
flight is to qualify as a temporary sojourn. To be considered a 
temporary sojourn, the flight must not be for the purpose of sale or 
transfer of operational control. An export is for the transfer of 
operational control unless the exporter retains each of the following 
indicia of control:
    (i) Hiring of cockpit crew. Right to hire and fire the cockpit 
crew.
    (ii) Dispatch of aircraft. Right to dispatch the aircraft.
    (iii) Selection of routes. Right to determine the aircraft's routes 
(except for contractual commitments entered into by the exporter for 
specifically designated routes).
    (iv) Place of maintenance. Right to perform or obtain the principal 
maintenance on the aircraft, which principal maintenance is conducted 
outside Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, under 
the control of a party who is not a national of any of these countries. 
(The minimum necessary in-transit maintenance may be performed in any 
country).
    (v) Location of spares. Spares are not located in Cuba, Iran, Iraq, 
Libya, North Korea, Sudan, or Syria.
    (vi) Place of registration. The place of registration is not 
changed to Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria.
    (vii) No transfer of technology. No technology is transferred to a 
national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, 
except the minimum necessary in transit maintenance to perform flight 
line servicing required to depart safely.
    (viii) Color and logos. The aircraft does not bear the livery, 
colors, or logos of a national of Cuba, Iran, Iraq, Libya, North Korea, 
Sudan, or Syria.
    (ix) Flight number. The aircraft does not fly under a flight number 
issued to a national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or 
Syria as such a number appears in the Official Airline Guide.
    (4) Reexports. Civil aircraft legally exported from the United 
States may be reexported under this section, provided the restrictions 
described in this paragraph (a) are met.
    (b) Equipment and spare parts for permanent use on a vessel or 
aircraft, and ship and plane stores. (1) Vessel. Equipment and spare 
parts for permanent use on a vessel, when necessary for the proper 
operation of such vessel, may be exported or reexported for use on 
board a vessel of any registry, except a vessel registered in Country 
Group D:1 (see Supplement No. 1 to part 740), Cuba, or North Korea, or 
owned or controlled by, or under charter or lease to any of these 
countries or their nationals. In addition, other equipment and services 
for necessary repair to fishing and fishery support vessels of Country 
Group D:1 or North Korea may be exported for use on board such vessels 
when admitted into the United States under governing international 
fishery agreements.
    (2) Aircraft. Equipment and spare parts for permanent use on an 
aircraft, when necessary for the proper operation of such aircraft, may 
be exported or reexported for use on board an aircraft of any registry, 
except an aircraft registered in, owned or controlled by, or under 
charter or lease to a country included in Country Group D:1, Cuba, 
Libya, or North Korea, or a national of any of these countries.
    (3) Ship and plane stores. Usual and reasonable kinds and 
quantities of the following commodities may be exported for use or 
consumption on board an aircraft or vessel of any registry during the 
outgoing and immediate return flight or voyage. (Note that fuel and 
related commodities that qualify as ship or plane stores as described 
in this License Exception must be exported under the short supply 
License Exception SPR (see Sec. 754.2(h) of the EAR.)
    (i) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements;
    (ii) Medical and surgical supplies;
    (iii) Food stores;
    (iv) Slop chest articles;
    (v) Saloon stores or supplies.
    (c) Shipments to U.S. or Canadian vessels, planes and airline 
installations or agents. (1) Exports to vessels or planes of U.S. or 
Canadian registry. Export may be made of the commodities set forth in 
paragraph (c)(3) of this section, for use by or on a specific vessel or 
plane of U.S. or Canadian registry located at any seaport or airport 
outside the United States or Canada except a port in Cuba, North Korea 
or Country Group D:1 (excluding the PRC and Romania), (see Supplement 
No. 1 to part 740) provided that such commodities are all of the 
following: 6

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

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

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

    (i) Ordered by a U.S. or Canadian airline and consigned to its own 
installation or agent abroad;
    (ii) Intended for maintenance, repair, or operation of aircraft 
registered in either the United States or Canada, and necessary for the 
aircraft's proper operation, except where such aircraft is located in, 
or owned, operated or controlled by, or leased or chartered to, Cuba, 
North Korea or Country Group D:1 (excluding the PRC) (see Supplement 
No. 1 to part 740) or a national of such country;
    (iii) In usual and reasonable kinds and quantities; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration 
(SED) is filed with the carrier, except that an SED is not required 
when any of these commodities is exported by U.S. airlines to their own 
installations and agents abroad for use in their aircraft operations.
    (3) Applicable commodities. This paragraph (c) applies to the 
following commodities, subject to the provisions in paragraph (c)(1) 
and (c)(2) of this section:

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

    (i) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements;
    (ii) Medical and surgical supplies;
    (iii) Food stores;
    (iv) Slop chest articles;
    (v) Saloon stores or supplies; and
    
[[Page 12780]]

    (vi) Equipment and spare parts.


Sec. 740.11  Additional permissive reexports (APR).

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

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

(a) Health

Equipment for the Handicapped
Hospital Supplies and Equipment
Laboratory Supplies and Equipment
Medical Supplies and Devices
Medicine-Processing Equipment
Medicines
Vitamins
Water Resources Equipment
Food
Agricultural Materials and Machinery Suited to Small-Scale Farming 
Operations
Agricultural Research and Testing Equipment
Fertilizers
Fishing Equipment and Supplies Suited to Small-Scale Fishing 
Operations

(b) Food

Insecticides
Pesticides
Seeds
Small-Scale Irrigation Equipment
Veterinary Medicines and Supplies

(c) Clothes and Household Goods

Bedding
Clothes
Cooking Utensils
Fabric
Personal Hygiene Items
Soap-Making Equipment
Weaving and Sewing Equipment

(d) Shelter

Building Materials
Hand Tools

(e) Education

Books
Individual School Supplies
School Furniture
Special Education Supplies and Equipment for the Handicapped

(f) Basic Support Equipment and Supplies Necessary To Operate and 
Administer the Donative Program

Audio-Visual Aids for Training
Generators
Office Supplies and Equipment

PART 742--CONTROL POLICY--CCL BASED CONTROLS

Sec.
742.1  Introduction.
742.2  Proliferation of chemical and biological weapons.
742.3  Nuclear nonproliferation.
742.4  National security.
742.5  Missile technology.
742.6  Regional stability.
742.7  Crime control.
742.8  Anti-Terrorism: Iran.
742.9  Anti-Terrorism: Syria.
742.10  Anti-Terrorism: Sudan.
742.11  Specially designed implements of torture.
742.12  High performance computers.
742.13  Communications intercepting devices.

Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
Biological Weapons

Supplement No. 2 to Part 742--Anti-Terrorism Controls; Iran, Syria and 
Sudan Contract Sanctity Dates and Related Policies
Supplement No. 3 to Part 742--High Performance Computers; Safeguard 
Conditions and Related Information
    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 
E.O. 12058, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 3 CFR, 1993 
Comp., p. 608; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3 
CFR, 1994 Comp., p. 950; Notice of August 15, 1995 (60 FR 42767, 
August 17, 1995).
Sec. 742.1  Introduction. In this part, references to the Export 
Administration Regulations (EAR) are references to 15 CFR chapter VII, 
subchapter C.

    (a) Scope. This part describes all the reasons for control 
reflected in the Country Chart in Supplement No. 1 to part 738 of the 
EAR. In addition, it includes licensing requirements and licensing 
policies for the following items that are not reflected on the Country 
Chart: specially designed implements of torture, high performance 
computers, and communications intercepting devices. This part is 
organized so that it lists each reason for control in the order 
(reading left to right) in which the control appears on the Country 
Chart. In addition to describing the reasons for control and licensing 
requirements and policies, this part describes any applicable contract 
sanctity provisions that may apply to specific controls and includes a 
description of any multilateral regime under which specific controls 
are maintained.
    (b) Reasons for control listed on the CCL not covered by this part. 
This part describes the license requirements and the licensing policies 
for all the ``Reasons for Control'' that are listed on the Commerce 
Control List (CCL) except ``Short Supply'' and ``U.N. Sanctions,'' 
which do not appear on the Country Chart.
    (1) Short Supply. ECCNs containing items subject to short supply 
controls (``SS'') refer the exporter to part 754 of the EAR. These 
ECCNs are: 0A980 (Horses for export by sea); 1C980 (certain inorganic 
chemicals); 1C981 (Crude petroleum, including reconstituted crude 
petroleum, tar sands, and crude shale oil); 1C982 (certain other 
petroleum products); 1C983 (Natural gas liquids and other natural gas 
derivatives); 1C984 (certain manufactured gas and synthetic natural gas 
(except when commingled with natural gas and thus subject to export 
authorization from the Department of Energy); and 1C988 (Western red 
cedar (thuja plicata) logs and timber, and rough, dressed and worked 
lumber containing wane).
    (2) U.N. Sanctions. The United Nations imposes sanctions, short of 
complete embargoes, against certain countries which may result in 
controls that supplement those otherwise maintained under the EAR for 
that particular country. This part does not address license 
requirements and licensing policies for controls implementing U.N. 
sanctions. CCL entries containing items subject to U.N. sanctions will 
refer the exporter to part 746 of the EAR, Embargoes and Other Special 
Controls, for any supplemental controls that may apply to exports and 
reexports involving these countries.
    (c) Exports and reexports involving Cuba, Libya, North Korea, Iraq, 
Iran, and the Bosnian Serb-controlled areas of Bosnia-Herzegovina. This 
part does not cover license requirements and licensing policies that 
apply to exports and reexports to embargoed destinations (Cuba, Libya, 
North Korea, Iraq, Iran and the Bosnian-Serb controlled areas of 
Bosnia-Herzegovina). These comprehensive embargoes cover a broader 
range of items than those reflected in the CCL. If you are exporting or 
reexporting to any of these destinations, you should first review part 
746 of the EAR, Embargoes and Other Special Controls.
    (d) Anti-terrorism Controls on Cuba, Libya, Iran, Iraq, North 
Korea, Sudan and Syria. Commerce maintains anti-terrorism controls on 
Iran, Syria and Sudan under section 6(a) of the Export Administration 
Act. Items controlled under section 6(a) to these three countries are 
described in Supplement No. 2 to part 742. Commerce also maintains 
controls under EAA section 6(j) of the EAA to Cuba, Libya, Iraq, Iran, 
North Korea, Sudan and Syria. Items controlled to these seven countries 
under EAA section 6(j) are also described in Supplement 2 to part 742. 
The Secretaries of Commerce and State are required to notify 
appropriate Committees of the Congress 30 days before issuing a license 
for an item controlled under section 6(j) to Cuba, Libya, North Korea, 
Iran, Iraq, Sudan or Syria. As noted in paragraph (c) of this section, 
if you are exporting or reexporting to Cuba, Libya, Iran, Iraq and 
North Korea, you should review Part 746 of the EAR, Embargoes and Other 
Special Controls.
    (e) End-user and end-use based controls. This part does not cover 
prohibitions and licensing requirements for exports of items not 
included on the

[[Page 12787]]
CCL that are subject to end-use and end-user controls: certain nuclear 
end-uses; certain missile end-uses; certain chemical and biological 
weapons end-uses; certain naval nuclear propulsion end-uses; certain 
activities of U.S. persons; certain exports to and for the use of 
certain foreign vessels or aircraft; and certain exports to all 
countries for Libyan aircraft. Licensing requirements and policies for 
these exports are contained in part 744 of the EAR.
    (f) Overlapping license policies. Many items on the CCL are subject 
to more than one type of control (e.g., national security (NS), missile 
technology (MT), nuclear nonproliferation (NP), regional stability 
(RS)). In addition, applications for all items on the CCL, other than 
those controlled for short supply reasons, may be reviewed for missile 
technology (see Sec. 742.5(b)(3) of this part), nuclear 
nonproliferation (see Sec. 742.3(b)(2) of this part), or chemical and 
biological weapons (see Sec. 742.3(b)(3) of this part), if the end-use 
or end-user may be involved in certain proliferation activities. 
Finally, many multilaterally controlled items are reviewed for anti-
terrorism reasons if they are destined for a terrorism-supporting 
country (see paragraph (d) of this section). Your application for a 
license will be reviewed under all applicable licensing policies. A 
license will be issued only if an application can be approved under all 
applicable licensing policies.


Sec. 742.2  Proliferation of chemical and biological weapons.

    (a) License requirements. The following controls are maintained in 
support of the U.S. foreign policy of opposing the proliferation and 
illegal use of chemical and biological weapons:
    (1) If CB Column 1 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to all destinations except Canada for the following:
    (i) Human pathogens, zoonoses, toxins, animal pathogens, 
genetically modified microorganisms and plant pathogens identified in 
ECCNs 1C351, 1C352, 1C353 and 1C354; and
    (ii) Technology (ECCN 1E391) for the production and/or disposal of 
microbiological commodities described in paragraph (a)(1)(i) of this 
section.
    (2) If CB Column 2 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to all destinations except countries in Country Group A:3 (see 
Supplement No. 1 to part 740 of the EAR) (Australia Group members) for 
the following:
    (i) Chemicals identified in ECCN 1C350 (precursor and intermediate 
chemicals used in the production of chemical warfare agents).
    (A) This licensing requirement includes chemical mixtures 
containing any chemicals identified in ECCN 1C350, except as specified 
in Note 2 to that ECCN.
    (B) This licensing requirement does not include chemical compounds 
created with any chemicals identified in ECCN 1C350, unless those 
compounds are also identified in ECCN 1C350.
    (ii) Software (ECCN 1D390) for process control that is specifically 
configured to control or initiate production of the chemical precursors 
controlled by ECCN 1C350.
    (iii) Technology (ECCN 1E390) for the production and/or disposal of 
chemical precursors described in ECCN 1C350, and technology involving 
the following for facilities designed or intended to produce chemicals 
described in ECCN 1C350:
    (A) Overall plant design;
    (B) Design, specification, or procurement of equipment;
    (C) Supervision of construction, installation, or operation of 
complete plant or components thereof;
    (D) Training of personnel; or
    (E) Consultation on specific problems involving such facilities.
    (3) If CB Column 3 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to Country Group D:3 (see Supplement No. 1 to part 740 of the 
EAR) for the following:
    (i) Equipment and materials identified in ECCNs 2B350 and 2B351 on 
the CCL, which can be used in the production of chemical weapons 
precursors or chemical warfare agents, and equipment and materials 
identified in ECCN 2B352, which can be used in the production of 
biological agents; and
    (ii) Technology (ECCN 2E301) for production of the commodities 
covered in ECCNs 2B350, 2B351, 2B352, 2B353 and 2B354.
    (b) Licensing policy. (1) License applications for the items 
described in paragraph (a) of this section will be considered on a 
case-by-case basis to determine whether the export or reexport would 
make a material contribution to the design, development, production, 
stockpiling, or use of chemical or biological weapons. When an export 
or reexport is deemed to make such a contribution, the license will be 
denied.
    (2) The following factors are among those that will be considered 
to determine what action should be taken on individual license 
applications:
    (i) The specific nature of the end-use;
    (ii) The significance of the export and reexport in terms of its 
contribution to the design, development, production, stockpiling, or 
use of chemical or biological weapons;
    (iii) The nonproliferation credentials of the importing country;
    (iv) The types of assurances or guarantees against design, 
development, production, stockpiling, or use of chemical or biological 
weapons that are given in a particular case; and
    (v) The existence of a pre-existing contract.
    (3) BXA will review license applications in accordance with the 
licensing policy described in paragraph (b)(2) of this section for 
items not described in paragraph (a) of this section that:
    (i) Require a license for reasons other than short supply;
    (ii) Are destined to any country except countries in Country Group 
A:3 (see Supplement No. 1 to part 740 of the EAR) (Australia Group 
members); and
    (iii) Could be destined for the design, development, production, 
stockpiling, or use of chemical or biological weapons, or for a 
facility engaged in such activities.
    (c) Contract sanctity. Contract sanctity dates are set forth in 
Supplement No. 1 to part 742. Applicants who wish that a preexisting 
contract be considered in reviewing their license applications must 
submit documentation sufficient to establish the existence of such a 
contract.
    (d) Australia Group. The Australia Group, a multilateral body that 
works to halt the spread of chemical and biological weapons, has 
developed common control lists of items specifically related to 
chemical and biological weapons. Australia Group members are listed in 
Country Group A:3 (see Supplement No. 1 to part 740 of the EAR). 
Controls on items listed in paragraph (a) of this section are 
consistent with lists agreed to in the Australia Group.


Sec. 742.3  Nuclear nonproliferation.

    (a) License requirements. Section 309(c) of the Nuclear Non-
Proliferation Act of 1978 requires BXA to identify items subject to the 
EAR that could be of significance for nuclear explosive purposes if 
used for activities other than those authorized at the time of export 
or reexport. ECCNs on the CCL that include the symbol ``NP 1'' or ``NP 
2'' in the ``Country Chart'' column of the ``License Requirements'' 
section identify items that could be of significance for nuclear 
explosive purposes and are therefore subject to licensing

[[Page 12788]]
requirements under this part and under section 309(c) of the Nuclear 
Non-Proliferation Act of 1978. These items are referred to as ``The 
Nuclear Referral List'' and are subject to the following licensing 
requirements:
    (1) If NP Column 1 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to all destinations except Nuclear Suppliers Group (NSG) 
member countries (Country Group A:4) (see Supplement No. 1 to part 740 
of the EAR).
    (2) If NP Column 2 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the applicable ECCN, a license is 
required to Country Group D:2 (see Supplement No. 1 to part 740 of the 
EAR).
    (3) Other nuclear-related license requirements are described in 
Secs. 744.2 and 744.5 of the EAR.
    (b) Licensing policy. (1) To implement the controls in paragraph 
(a) of this section, the following factors are among those used to 
determine what action should be taken on individual applications:
    (i) Whether the items to be transferred are appropriate for the 
stated end-use and whether that stated end-use is appropriate for the 
end-user;
    (ii) The significance for nuclear purposes of the particular item;
    (iii) Whether the items to be exported or reexported are to be used 
in research on, or for the development, design, manufacture, 
construction, operation, or maintenance of, any reprocessing or 
enrichment facility;
    (iv) The types of assurances or guarantees given against use for 
nuclear explosive purposes or proliferation in the particular case;
    (v) Whether any party to the transaction has been engaged in 
clandestine or illegal procurement activities;
    (vi) Whether an application for a license to export or reexport to 
the end-user has previously been denied, or whether the end-user has 
previously diverted items received under a general license, a License 
Exception, or a validated license to unauthorized activities;
    (vii) Whether the export or reexport would present an unacceptable 
risk of diversion to a nuclear explosive activity or unsafeguarded 
nuclear fuel-cycle activity described in Sec. 744.2(a) of the EAR; and
    (viii) The nonproliferation credentials of the importing country, 
based on consideration of the following factors:
    (A) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco) or to a similar 
international legally-binding nuclear nonproliferation agreement;
    (B) Whether the importing country has all of its nuclear 
activities, facilities, or installations that are operational, being 
designed, or under construction under International Atomic Energy 
Agency (IAEA) safeguards or equivalent full scope safeguards;
    (C) Whether there is an agreement for cooperation in the civil uses 
of atomic energy between the U.S. and the importing country;
    (D) Whether the actions, statements, and policies of the government 
of the importing country are in support of nuclear nonproliferation and 
whether that government is in compliance with its international 
obligations in the field of non-proliferation;
    (E) The degree to which the government of the importing country 
cooperates in non-proliferation policy generally (e.g., willingness to 
consult on international nonproliferation issues); and
    (F) Information on the importing country's nuclear intentions and 
activities.
    (2) In addition, BXA will review license applications in accordance 
with the licensing policy described in paragraph (b) of this section 
for items not on the Nuclear Referral List that:
    (i) Require a license on the CCL for reasons other than ``short 
supply;'' and
    (ii) Are intended for a nuclear related end-use or end-user.
    (3) For the People's Republic of China, the general licensing 
policy for applications for those items that would make a direct and 
significant contribution to nuclear weapons and their delivery systems 
is extended review or denial.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) Nuclear Suppliers Group. Most items on the Nuclear Referral 
List that require a license under NP Column No. 1 on the Country Chart 
(see Supplement No. 1 to part 738 of the EAR) are contained in the 
Annex to the ``Guidelines for Transfers of Nuclear-Related Dual-Use 
Equipment, Material, and Related Technology'' (the Annex), as published 
by the International Atomic Energy Agency in INFCIRC/254/Revision 1/
Part 2. The adherents to INFCIRC/254/Revision 1/Part 2, which includes 
the Nuclear Suppliers Guidelines, have agreed to establish export 
licensing procedures for the transfer of items identified in the Annex. 
Items that are listed as requiring a license under NP Column No. 2 on 
the Country Chart (see Supplement No. 1 to part 738 of the EAR) are not 
included in the Annex and are controlled only by the United States.


Sec. 742.4  National security.

    (a) License requirements. It is the policy of the United States to 
restrict the export and reexport of items that would make a significant 
contribution to the military potential of any other country or 
combination of countries that would prove detrimental to the national 
security of the United States. Accordingly, a license is required for 
exports and reexports to all destinations, except Canada, for all items 
in ECCNs on the CCL that include NS Column 1 in the Country Chart 
column of the ``License Requirements'' section. A license is required 
to all destinations except Country Group A:1 and cooperating countries 
(see Supplement No. 1 to part 740) for all items in ECCNs on the CCL 
that include NS Column 2 in the Country Chart column of the ``License 
Requirements'' section. The purpose of the controls is to ensure that 
these items do not make a contribution to the military potential of 
countries in Country Group D:1 (see Supplement No. 1 to part 740 of the 
EAR) that would prove detrimental to the national security of the 
United States. License Exception GBS is available for the export and 
reexport of certain national security controlled items to Country Group 
B (see Sec. 740.3(b) and Supplement No. 1 to part 740 of the EAR).
    (b) Licensing policy. (1) The policy for national security 
controlled items exported or reexported to any country except a country 
in Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is 
to approve applications unless there is a significant risk that the 
items will be diverted to a country in Country Group D:1.
    (2) Except for those countries described in paragraphs (b)(5) 
through (b)(7) of this section, the general policy for exports and 
reexports of items to Country Group D:1 (see Supplement No. 1 to part 
740 of the EAR) is to approve applications when BXA determines, on a 
case-by-case basis, that the items are for civilian use or would 
otherwise not make a significant contribution to the military potential 
of the country of destination that would prove detrimental to the 
national security of the United States.
    (3) To permit such policy judgments to be made, each application is 
reviewed in the light of prevailing policies with full consideration of 
all

[[Page 12789]]
aspects of the proposed transaction. The review generally includes:
    (i) An analysis of the kinds and quantities of items to be shipped;
    (ii) Their military or civilian uses;
    (iii) The unrestricted availability abroad of the same or 
comparable items;
    (iv) The country of destination;
    (v) The ultimate end-users in the country of destination; and
    (vi) The intended end-use.
    (4) Although each proposed transaction is considered individually, 
items described in Advisory Notes on the Commerce Control List are more 
likely to be approved than others.
    (5) In recognition of efforts made to adopt safeguard measures for 
exports and reexports, Bulgaria, Latvia, Kazakhstan, Lithuania, 
Mongolia, and Russia are accorded enhanced favorable consideration 
licensing treatment.
    (6) The general policy for Cambodia and Laos is to approve license 
applications when BXA determines, on a case-by-case basis, that the 
items are for an authorized use in Cambodia or Laos and are not likely 
to be diverted to another country or use contrary to the national 
security or foreign policy controls of the United States.
    (7) For the People's Republic of China, the general licensing 
policy is to approve applications, except that those items that would 
make a direct and significant contribution to electronic and anti-
submarine warfare, intelligence gathering, power projection, and air 
superiority receive extended review or denial. Each application will be 
considered individually. Items may be approved even though they may 
contribute to Chinese military development or the end-user or end-use 
is military. Note that the Advisory Notes in the CCL headed ``Note for 
the People's Republic of China'' provide guidance on equipment likely 
to be approved more rapidly for China.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) [Reserved]


Sec. 742.5  Missile technology.

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


Sec. 742.6  Regional stability.

    (a) License requirements. The following controls are maintained in 
support of U.S. foreign policy to maintain regional stability:
    (1) As indicated in the CCL and in RS Column 1 of the Country Chart 
(see Supplement No. 1 to part 738 of the EAR), a license is required to 
all destinations, except Canada, for items described on the CCL under 
ECCNs 6A002.a.1, a.2, a.3, or .c; 6A003.b.3 and b.4; 6D102 (only 
software for development of items in 6A002.a.1, a.2, a.3 or .c); 6E001 
(only technology for development of items in 6A002.a.1, a.2, a.3, and 
.c, or 6A003.b.3 and b.4); 6E002 (only technology for production of 
items in 6A002.a.1, a.2, a.3, or .c, or 6A003.b.3 or b.4); 7D001 (only 
software for development or production of items in 7A001, 7A002, or 
7A003); 7E001 (only technology for the development of inertial 
navigation systems, inertial equipment, and specially designed 
components therefor for civil aircraft); 7E002 (only technology for the 
production of inertial navigation systems, inertial equipment, and 
specially designed components therefor for civil aircraft).
    (2) As indicated in the CCL and in RS Column 2 of the Country Chart 
(see Supplement No. 1 to part 738 of the EAR), a license is required to 
any destination except countries in Country Group A:1 (see Supplement 
No. 1 to part 740 of the EAR), Iceland and New Zealand for military 
vehicles and certain commodities (specially designed) used to 
manufacture military equipment, described on the CCL in ECCNs 0A018.c, 
1B018.a, 2B018, and 9A018.a and .b.

[[Page 12790]]

    (b) Licensing policy. (1) Applications to export and reexport items 
described in paragraph (a)(1) of this section will be reviewed on a 
case-by-case basis to determine whether the export or reexport could 
contribute directly or indirectly to any country's military 
capabilities in a manner that would alter or destabilize a region's 
military balance contrary to the foreign policy interests of the United 
States.
    (2) Applications to export and reexport commodities described in 
paragraph (a)(2) of this section will generally be considered favorably 
on a case-by-case basis unless there is evidence that the export or 
reexport would contribute significantly to the destabilization of the 
region to which the equipment is destined.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining regional stability controls, 
at this time these controls are maintained only by the United States.


Sec. 742.7  Crime control.

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


Sec. 742.8  Anti-Terrorism: Iran.

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

[[Page 12791]]
its military logistics capability, or could enhance Iran's ability to 
support acts of international terrorism, the Secretaries of State and 
Commerce will notify the Congress 30 days prior to the issuance of a 
license.
    (c) Contract sanctity. Contract sanctity dates and related policies 
for Iran are listed in Supplement No. 2 to part 742. Applicants who 
wish a pre-existing contract to be considered must submit sufficient 
evidence to establish the existence of a contract.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining anti-terrorism controls, at 
this time these controls are maintained only by the United States.


Sec. 742.9  Anti-terrorism: Syria.

    (a) License requirements. (1) If AT Column 1 of the Country Chart 
(Supplement No. 1 to part 738 of the EAR) is indicated in the 
appropriate ECCN, a license is required for export and reexport to 
Syria for anti-terrorism purposes.
    (2) The Secretary of State has designated Syria as a country whose 
government has repeatedly provided support for acts of international 
terrorism.
    (3) In support of U.S. foreign policy against terrorism, BXA 
maintains two types of anti-terrorism controls on the export and 
reexport to Syria of items described in Supplement No. 2 to part 742.
    (i) Items described in paragraphs (c)(1) through (c)(5) of 
Supplement No. 2 to part 742, if destined to military, police, 
intelligence or other end-users in Syria, are controlled under section 
6(j) of the Export Administration Act, as amended (EAA).
    (ii) Items listed in paragraphs (c)(1) through (c)(5) of Supplement 
No. 2 to part 742 destined to other end-users in Syria, as well as 
items to all end-users listed in (c)(6) through (c)(8), (c)(10) through 
(c)(14), (c)(16) through (c)(19), and (c)(22) through (c)(39) of 
Supplement No. 2 to part 742, are controlled to Syria under section 
6(a) of the EAA.
    (b) Licensing policy. (1) Applications for export and reexport to 
all end-users in Syria of the following items will generally be denied:
    (i) Items that are controlled for chemical and biological weapons 
proliferation reasons to any destination. These are items that contain 
CB Column 1, CB Column 2, or CB Column 3 in the Country Chart column of 
the ``License Requirements'' section of an ECCN on the CCL.
    (ii) Military-related items controlled for national security 
reasons to any destination. These are items that contain NS Column 1 in 
the Country Chart column of the ``License Requirements'' section in an 
ECCN on the CCL and is controlled by equipment or material entries 
ending in the number ``18.''
    (iii) Items that are controlled for missile proliferation reasons 
to any destination. These are items that have an MT Column 1 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL.
    (iv) All aircraft (powered and unpowered), helicopters, engines, 
and related spare parts and components. These are items controlled to 
any destination for national security reasons and items controlled to 
Syria for anti-terrorism purposes. Such items contain an NS Column 1, 
NS Column 2, or AT Column 1 in the Country Chart column of the 
``License Requirements'' section of an ECCN on the CCL. Note that, 
consistent with the general rule that applies to computing U.S. parts 
and components content incorporated in foreign made products, all 
aircraft-related items that require a license to Syria will be included 
as controlled US content for purposes of such license requirements.
    (v) Cryptographic, cryptoanalytic, and cryptologic items controlled 
to any destination for national security reasons. Such items contain an 
AT Column 1 and an NS Column 1 or NS Column 2 in the Country Chart 
column of the ``License Requirements'' section of an ECCN on the CCL.
    (vi) Explosive device detectors controlled under ECCN 2A993.
    (2) Applications for export and reexport to Syria of all other 
items described in paragraph (a) of this section, and not described by 
paragraph (b)(1) of this section, will generally be denied if the 
export or reexport is destined to a military end-user or for military 
end-use. Applications for non-military end-users or for non-military 
end-uses will be considered on a case-by-case basis.
    (3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2), 
of this section, applications for Syria will be considered on a case-
by-case basis if:
    (i) The transaction involves the reexport to Syria of items where 
Syria was not the intended ultimate destination at the time of original 
export from the United States, provided that the exports from the U.S. 
occurred prior to the applicable contract sanctity date (or, where the 
contract sanctity date is December 16, 1986, prior to June 18, 1987).
    (ii) The U.S. content of foreign-produced commodities is 20% or 
less by value; or
    (iii) The commodities are medical items.

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

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


Sec. 742.10  Anti-terrorism: Sudan.

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

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

    (2) If AT column 1 or AT column 2 of the Country Chart (Supplement 
No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a 
license is required for reexport to Sudan for anti-terrorism purposes, 
except for ECCNs 2A994, 3A993, 5A992, 5A995, 6A990, 6A994, 7A994, 
8A992, 8A994, 9A990, 9A992 and 9A994. In addition, items in these ECCNs 
are not counted as controlled U.S. content for the purpose

[[Page 12792]]

of determining license requirements for U.S. parts, components or 
materials incorporated into foreign made products. However, the export 
from the United States to any destination with knowledge that they will 
be reexported directly or indirectly, in whole or in part to Sudan is 
prohibited without a license. See Sec. 740.9 of the EAR for additional 
information.
    (3) The Secretary of State has designated Sudan as a country whose 
government has repeatedly provided support for acts of international 
terrorism.
    (4) In support of U.S. foreign policy against terrorism, BXA 
maintains anti-terrorism controls on the export and reexport to Sudan 
of items described in Supplement No. 2 to part 742.
    (i) Items described in paragraph (c)(1) through (c)(5) of 
Supplement No. 2 to part 742 if destined to military, police, 
intelligence or other sensitive end-users in Sudan are controlled under 
section 6(j) of the Export Administration Act, as amended (EAA).
    (ii) Items listed in paragraphs (c)(1) through (c)(5) of Supplement 
No. 2 to part 742 destined to other end-users in Sudan, as well as 
items to all end-users listed in (c)(6) through (c)(14) and (c)(16) 
through (c)(39) of Supplement No. 2 to part 742 are controlled to Sudan 
under section 6(a) of the EAA.
    (b) Licensing policy. (1) Applications for export and reexport to 
all end-users in Sudan of the following items will generally be denied:
    (i) Items that are controlled for chemical and biological weapons 
proliferation reasons to any destination. These are items that contain 
CB Column 1, CB Column 2, or CB Column 3 in the Country Chart column of 
the ``License Requirements'' section of an ECCN on the CCL.
    (ii) Military-related items controlled for national security 
reasons to any destination. These are items that contain NS Column 1 in 
the Country Chart column of the ``License Requirements'' section of an 
ECCN on the CCL and is controlled by equipment or material entries 
ending in the number ``18.''
    (iii) Items that are controlled for missile proliferation reasons 
to any destination. These are items that contain a MT Column 1 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL.
    (iv) All aircraft (powered and unpowered), helicopters, engines, 
and related spare parts and components. These are items controlled to 
any destination for national security reasons and items controlled to 
Sudan for anti-terrorism reasons. Such items contain an NS Column 1, NS 
Column 2, or AT Column 1 in the Country Chart column of the ``License 
Requirements'' section of an ECCN on the CCL. Note that, consistent 
with the general rule that applies to computing U.S. parts and 
components content incorporated in foreign made products, all aircraft-
related items that require a license to Sudan will be included as 
controlled US content for purposes of such license requirements.
    (v) Cryptographic, cryptoanalytic, and cryptologic items controlled 
to any destination. These are items that contain an NS Column 1, NS 
Column 2, AT Column 1 or AT Column 2 in the Country Chart column of the 
``License Requirements'' section of an ECCN on the CCL.
    (vi) Explosive device detectors controlled under ECCN 2A993.
    (2) Applications for the export and reexport of all other items 
described in paragraph (a) of this section, and not described in 
paragraph (b)(1) of this section, will be denied if the export or 
reexport is destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2) 
of this section, applications for Sudan will be considered on a case-
by-case basis if:
    (i) The transaction involves the reexport to Sudan of items where 
Sudan was not the intended ultimate destination at the time of original 
export from the United States, provided that the exports from the U.S. 
occurred prior to the applicable contract sanctity date.
    (ii) The U.S. content of foreign-produced commodities is 20% or 
less by value; or
    (iii) The commodities are medical items.

    Note to paragraph (b) of this section: Applicants who wish any 
of the factors described in paragraph (b)(4) of this section to be 
considered in reviewing their license applications must submit 
adequate documentation demonstrating the value of the U.S. content, 
the specifications and medical use of the equipment, or the date of 
export from the United States.

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


Sec. 742.11  Specially designed implements of torture.

    (a) License requirements. In support of U.S. foreign policy to 
promote the observance of human rights throughout the world, a license 
is required to export specially designed implements of torture 
controlled by 0A983 to all destinations, including Canada.
    (b) Licensing policy. Applications for such licenses will generally 
be denied to all destinations.
    (c) Contract sanctity. The contract sanctity date is November 9, 
1995. Contract sanctity will be a factor in considering only 
applications for export to the NATO countries, Japan, Australia, and 
New Zealand.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining controls on implements of 
torture, at this time these controls are maintained only by the United 
States.


Sec. 742.12  High performance computers.

    (a) License and recordkeeping requirements. (1) This section 
contains special provisions for exports, reexports, and certain intra-
country transfers of high performance computers, including software, 
and technology. This section affects the following ECCNs: 4A001, 4A002, 
4A003, 4D001, 4D002, and 4E001. It applies to computers with a 
Composite Theoretical Performance (CTP) greater than 2000, stated in 
Million Theoretical Operations Per Second (MTOPS). Licenses are 
required under this section for ECCN's having an ``XP'' under ``Reason 
for Control'' when License Exception CTP is not available (see 
Sec. 740.3(e) of the EAR). License requirements reflected in this 
section are based on particular destinations, end-users, or end-uses. 
For the calculation of CTP, see the Technical Note that follows the 
Advisory Notes for Category 4 in the Commerce Control List. Note that 
License Exception CTP contains restrictions on access by nationals of 
certain countries, and on reexports and transfers of computers.

[[Page 12793]]

    (2) In recognition of the strategic and proliferation significance 
of high performance computers, a license is required for the export or 
reexport of high performance computers to destinations, end-users, and 
end-uses, as specified in this section and on the CCL. These license 
requirements supplement requirements that apply for other control 
reasons, such as nuclear nonproliferation provided in Sec. 742.3 of the 
EAR. The license requirements described in this Sec. 742.12 are not 
reflected on the Country Chart (Supplement No. 1 to part 738 of the 
EAR). Four Computer Country Tiers have been established for the 
purposes of these controls. Countries included in Computer Tiers 1, 2, 
and 3 are listed in License Exception CTP in Sec. 740.3(e) of the EAR. 
Computer Tier 4 consists of Cuba, Iran, Iraq, Libya, North Korea, 
Sudan, and Syria.
    (3) Exporters must keep accurate records of each export to any 
destination of a computer with a CTP equal to or greater than 2,000 
MTOPS, irrespective of whether the export is made under License 
Exception or otherwise. These records will be made available to the 
U.S. Government upon request. The records will include the following 
information:
    (i) Date of shipment;
    (ii) Name and address of the end-user and each intermediate 
consignee;
    (iii) CTP of each computer in shipment;
    (iv) Volume of computers in shipment;
    (v) Dollar value of shipment; and
    (vi) End-Use.
    (4) Exporters are hereby notified that consistent with the 
commitments reached with the Wassenaar Arrangement, exporters will be 
required to submit to BXA consolidated reports on exports to certain 
destinations every six months of computers with a CTP equal to or 
greater than 2,000 MTOPS. These reports will include for each such 
export all the information required to be kept pursuant to paragraph 
(3) of Sec. 742.12(a). Exports of computers above 2,000 MTOPS to 
certain destinations will be subject to the reporting requirement once 
the initial elements of the Wassenaar Arrangement are adopted, and the 
first report will be due thereafter.
    (b) Licensing policy. Licensing policies described in this section 
vary according to the country of destination, and the end-use or end-
user involved in the transaction. Note that in addition, license 
applications for items covered by Sec. 742.12 will also be reviewed 
under the nuclear nonproliferation licensing policy in Sec. 742.3(b). 
In certain cases, licenses may be subject to safeguard conditions. The 
specific conditions that may be imposed by BXA will depend on the 
country of destination, and the end-use or end-user of the export. BXA 
may also require end-use certification which, in appropriate cases, is 
certified by the government of the importing country. The range of 
possible safeguard conditions and related information are provided in 
Supplement No. 3 to part 742.
    (1) Computer Tier 1.
    (i) License requirement. No license is required under this 
Sec. 742.12 for exports or reexports of computers to and among 
countries listed in Computer Tier 1, for consumption in such countries 
or other disposition in accordance with the EAR.
    (ii) Licensing policy. A license is not required under this 
Sec. 742.12.
    (2) Computer Tier 2.
    (i) License requirement. A license is required to export or 
reexport a computer having a Composite Theoretical Performance (CTP) 
greater than 10,000 Millions of Theoretical Operations Per Second 
(MTOPS) to a country in Computer Tier 2.
    (ii) Licensing policy. License applications for a country in 
Computer Tier 2 will generally be approved.
    (3) Computer Tier 3.
    (i) License requirement.
    (A) A license is required to export or reexport computers with a 
CTP greater than 2,000 MTOPS to countries in Computer Tier 3 to 
military end-users and end-uses and to nuclear, chemical, biological, 
or missile end-users and end-uses defined in part 744 of the EAR in 
Computer Tier 3 countries.
    (B) A license is required to export or reexport computers with a 
CTP greater than 7,000 MTOPS to all end-users and end-uses located in 
countries in Computer Tier 3.
    (ii) Licensing policy. License applications for exports and 
reexports to military end-users and end-uses and nuclear, chemical, 
biological, or missile end-users and end-uses defined in part 744 of 
the EAR in countries in Computer Tier 3 will be reviewed on a case-by-
case basis using the following criteria:
    (A) The presence and activities of countries and end-users of 
national security and proliferation concern and the relationships that 
exist between the government of the importing country and such 
countries and end-users;
    (B) The ultimate consignee's participation in, or support of, any 
of the following:
    (1) Activities that involve national security concerns; or
    (2) Nuclear, chemical, biological or missile proliferation 
activities described in part 744 of the EAR;
    (C) The extent to which the importing country is involved in 
nuclear, chemical, biological, or missile proliferation activities 
described in part 744 of the EAR;
    (D) The end-user, whether the end-use is single-purpose or 
multiple-purpose.
    (iii) Licensing policy for other end-uses and end-users. License 
applications for exports and reexports to other end-users and end-uses 
located in countries in Computer Tier 3 will generally be approved.
    (4) Computer Tier 4.
    (i) License requirement. A license is required to export or 
reexport any items covered by this section to a country in Country Tier 
4.
    (ii) Licensing policy. The licensing policies for countries in 
Computer Tier 4 are the same as described in the following EAR 
sections: for Sudan see Sec. 742.10(b); for Syria see Sec. 742.9(b); 
for Cuba see Sec. 746.2; for Iran see Sec. 746.7; for Iraq see 
Sec. 746.3; for Libya see Sec. 746.4; and for North Korea see 
Sec. 746.5.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications involving exports and reexports of 
high performance computers.
    (d) High performance computer regime. The United States and Japan 
participate in a high performance computer regime. Other countries are 
expected to join. The regime provides uniform and effective safeguards 
to protect high performance computers from unauthorized destinations, 
end-users and end-uses.


Sec. 742.13  Communications intercepting devices.

    (a) License requirement. (1) As set forth in ECCN 5A980, a license 
is required for the export or reexport to any destination, including 
Canada, of any electronic, mechanical, or other device primarily useful 
for surreptitious interception of wire or oral communications. This 
control implements a provision of the Omnibus Crime Control and Safe 
Streets Act of 1968 (Public Law 90-361). This license requirement is 
not reflected on the Country Chart (Supplement No. 1 to part 738 of the 
EAR).
    (2) Communications intercepting devices are electronic, mechanical, 
or other devices that can be used for interception of wire or oral 
communications if their design renders them primarily useful for 
surreptitious listening even though they may also have innocent uses. A 
device is not restricted merely because it is small or

[[Page 12794]]
may be adapted to wiretapping or eavesdropping. Some examples of 
devices to which these restrictions apply are: the martini olive 
transmitter; the infinity transmitter; the spike mike; and the 
disguised microphone appearing as a wristwatch, cufflink, or cigarette 
pack; etc. The restrictions do not apply to devices such as the 
parabolic microphone or other directional microphones ordinarily used 
by broadcasters at sports events, since these devices are not primarily 
useful for surreptitious listening.
    (b) Licensing policy. (1) License applications will generally be 
approved for:
    (i) A provider of wire or electronic communication services or an 
officer, agent, or employee of, or person under contract with, such a 
provider in the normal course of the business of providing that wire or 
electronic communication service; and
    (ii) Officers, agents, or employees of, or person under contract 
with the United States, one of the 50 States, or a political 
subdivision thereof, when engaged in the normal course of government 
activities.
    (2) Other applications will generally be denied.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications involving exports and reexports of 
communications interception devices.
    (d) U.S. controls. Controls on this equipment are maintained by the 
United States government in accordance with the Omnibus Crime Control 
and Safe Streets Act of 1968.

Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
Biological Weapons

    Note: Exports and reexports of items in performance of contracts 
entered into before the applicable contract sanctity date(s) will be 
eligible for review on a case-by-case basis or other applicable 
licensing policies that were in effect prior to the contract 
sanctity date. The contract sanctity dates set forth in this 
Supplement are for the guidance of exporters. Contract sanctity 
dates are established in the course of the imposition of foreign 
policy controls on specific items and are the relevant dates for the 
purpose of licensing determinations involving such items. If you 
believe that a specific contract sanctity date is applicable to your 
transaction, you should include all relevant information with your 
license application.
    (1) The contract sanctity date for exports to Iran or Syria of 
dimethyl methylphosphonate, methyl phosphonyldifluoride, phosphorous 
oxychloride, thiodiglycol, dimethylamine hydrochloride, 
dimethylamine, ethylene chlorohydrin (2-chloroethanol), and 
potassium fluoride is April 28, 1986.
    (2) The contract sanctity date for exports to Iran or Syria of 
dimethyl phosphite (dimethyl hydrogen phosphite), methyl 
phosphonyldichloride, 3-quinuclidinol, N,N-diisopropylamino-ethane-
2-thiol, N,N-diisopropylaminoethyl-2-chloride, 3-hydroxy-1-
methylpiperidine, trimethyl phosphite, phosphorous trichloride, and 
thionyl chloride is July 6, 1987.
    (3) The contract sanctity date for exports to Iran or Syria of 
items in ECCNs 1C351, 1C352, 1C353 and 1C354 is February 22, 1989.
    (4) The contract sanctity date for exports to Iran of dimethyl 
methylphosphonate, methylphosphonyl difluoride, phosphorus 
oxychloride, and thiodiglycol is February 22, 1989.
    (5) The contract sanctity date for exports to Iran, Libya or 
Syria of potassium hydrogen fluoride, ammonium hydrogen fluoride, 
sodium fluoride, sodium bifluoride, phosphorus pentasulfide, sodium 
cyanide, triethanolamine, diisopropylamine, sodium sulfide, and N,N 
-diethylethanolamine is December 12, 1989.
    (6) The contract sanctity date for exports to all destinations 
(except Iran or Syria) of phosphorus trichloride, trimethyl 
phosphite, and thionyl chloride is December 12, 1989. For exports to 
Iran or Syria, paragraph (2) of this Supplement applies.
    (7) The contract sanctity date for exports to all destinations 
(except Iran, Libya or Syria) of 2-chloroethanol and triethanolamine 
is January 15, 1991. For exports of 2-chloroethanol to Iran or 
Syria, paragraph (1) of this Supplement applies. For exports of 
triethanolamine to Iran, Libya or Syria, paragraph (5) of this 
Supplement applies.
    (8) The contract sanctity date for exports to all destinations 
(except Iran, Libya or Syria) of chemicals controlled by ECCN 1C350 
is March 7, 1991, except for applications to export the following 
chemicals: 2-chloroethanol, dimethyl methylphosphonate, dimethyl 
phosphite (dimethyl hydrogen phosphite), methylphosphonyl 
dichloride, methylphosphonyl difluoride, phosphorus oxychloride, 
phosphorous trichloride, thiodiglycol, thionyl chloride 
triethanolamine, and trimethyl phosphite. (See also paragraphs (6) 
and (7) of this Supplement.) For exports to Iran, Libya or Syria, 
see paragraphs (1) through (6) of this Supplement.
    (9) The contract sanctity date for exports and reexports of the 
following commodities and technical data is March 7, 1991:
    (i) Equipment (for producing chemical weapon precursors and 
chemical warfare agents) described in ECCNs 2B350 and 2B351;
    (ii) Equipment and materials (for producing biological agents) 
described in ECCN 2B352; and
    (iii) Technology (for the production of equipment and materials 
described in 2B351 and 2B352) described in ECCN 2E301.
    (10) The contract sanctity date for license applications subject 
to Sec. 742.2(b)(3) of this part is March 7, 1991.
    (11) The contract sanctity date for reexports of chemicals 
controlled under ECCN 1C350 is March 7, 1991, except that the 
contract sanctity date for reexports of these chemicals to Iran, 
Libya or Syria is December 12, 1989.
    (12) The contract sanctity date for reexports of human 
pathogens, zoonoses, toxins, animal pathogens, genetically modified 
microorganisms and plant pathogens controlled by ECCNs 1C351, 1C352, 
1C353 and 1C354 is March 7, 1991.

Supplement No. 2 to Part 742--Anti-Terrorism Controls; Iran, Syria, and 
Sudan Contract Sanctity Dates and Related Policies

    Note: Exports and reexports of items in performance of contracts 
entered into before the applicable contract sanctity date(s) will be 
eligible for review on a case-by-case basis or other applicable 
licensing policies that were in effect prior to the contract 
sanctity date. The contract sanctity dates set forth in this 
Supplement are for the guidance of exporters. Contract sanctity 
dates are established in the course of the imposition of foreign 
policy controls on specific items and are the relevant dates for the 
purpose of licensing determinations involving such items. If you 
believe that a specific contract sanctity date is applicable to your 
transaction, you should include all relevant information with your 
license application. BXA will determine any applicable contract 
sanctity date at the time an application with relevant supporting 
documents is submitted.

    (a) Terrorist-supporting countries. The Secretary of State has 
designated Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria as 
countries whose governments have repeatedly provided support for 
acts of international terrorism under section 6(j) of the Export 
Administration Act (EAA).
    (b) Items controlled under EAA sections 6(j) and 6(a). Whenever 
the Secretary of State determines that an export or reexport to any 
of these countries could make a significant contribution to the 
military potential of such country, including its military logistics 
capability, or could enhance the ability of such country to support 
acts of international terrorism, the item is subject to mandatory 
control under section EAA 6(j) and the Secretaries of Commerce and 
State are required to notify appropriate Committees of the Congress 
30 days before a license for such an item may be issued.
    (1) On December 28, 1993, the Secretary of State determined that 
the export to Cuba, Libya, Iran, Iraq, North Korea, Sudan or Syria 
of items described in paragraphs (c)(1) through (c)(5) of this 
Supplement, if destined to military, police, intelligence or other 
sensitive end-users, are controlled under EAA section 6(j). 
Therefore, the 30-day advance Congressional notification requirement 
applies to the export or reexport of these items to sensitive end-
users in any of these countries.
    (2) License applications for items controlled to designated 
terrorist-supporting countries under EAA section 6(a) will also be 
reviewed to determine whether the Congressional notification 
requirements of EAA section 6(j) apply.
    (3) Items controlled for anti-terrorism reasons under section 
6(a) to Iran, Sudan and Syria are:

[[Page 12795]]

    (i) items described in paragraphs (c)(1) through (c)(5) to non-
sensitive end-users, and
    (ii) the following items to all end-users: for Iran, items in 
paragraphs (c)(6) through (c)(39) of this Supplement; for Sudan, 
items in paragraphs (c)(6) through (c)(14), and (c)(16) through 
(c)(39) of this Supplement; for Syria, items in paragraphs (c)(6) 
through (c)(8), (c)(10) through (c)(14), (c)(16) through (c)(19), 
and (c)(22) through (c)(39) of this Supplement.
    (c) The license requirements and licensing policies for items 
controlled for anti-terrorism reasons to Iran, Syria and Sudan are 
generally described in Secs. 742.8, 742.9 and 742.10 of this part. 
This Supplement provides guidance on licensing policies for Syria 
and Sudan and related contract sanctity dates that may be available 
for transactions benefitting from pre-existing contracts involving 
Syria and Sudan. This supplement also provides information on 
licensing policies and contract sanctity dates for Iran. Exporters 
are advised that the Treasury Department's Office of Foreign Assets 
Control administers a comprehensive trade and investment embargo 
against Iran (See Executive Orders 12957 and 12959 of March 15, 1995 
and May 6, 1995, respectively.) Exporters are further advised that 
exports and reexports to Iran of items that are listed on the CCL as 
requiring a license for national security or foreign policy reasons 
are subject to a policy of denial under the Iran-Iraq Arms Non-
Proliferation Act of October 23, 1992 (50 U.S.C. 1701 note (1994)). 
Transactions involving Iran and benefitting from a contract that 
pre-dates October 23, 1992 may be considered under the applicable 
licensing policy in effect prior to that date.
    (1) All items subject to national security controls.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
items valued at $7 million or more: January 23, 1984.
    (B) Contract sanctity date for military end-users or end-uses of 
all other national security controlled items: September 28, 1984.
    (C) Contract sanctity date for non-military end-users or end-
uses: August 28, 1991, unless otherwise specified in paragraphs 
(c)(2) through (c)(39) of this Supplement.
    (ii) Syria. Applications for military end-users or military end-
uses in Syria will generally be denied. Applications for non-
military end-users or end-uses will be considered on a case-by-case 
basis, unless otherwise specified in paragraphs (c)(2) through 
(c)(39) of this Supplement. No contract sanctity date is available 
for items valued at $7 million or more to military end-users or end-
uses. The contract sanctity date for all other items for all end-
users: December 16, 1986.
    (iii) Sudan. Applications for military end-users or military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or end-uses will be considered on a case-by-case 
basis. Contract sanctity date: January 19, 1996, unless a prior 
contract sanctity date applies (e.g., items first controlled to 
Sudan for foreign policy reasons under EAA section 6(j) have a 
contract sanctity date of December 28, 1993).
    (2)  All items subject to chemical and biological weapons 
proliferation controls. Applications for all end-users in Iran, 
Syria or Sudan of these items will generally be denied. See 
Supplement No. 1 to part 742 for contract sanctity dates for Iran 
and Syria. Contract sanctity date for Sudan: January 19, 1996, 
unless a prior contract sanctity date applies (e.g., items first 
controlled to Sudan for foreign policy reasons under EAA section 
6(j) have a contract sanctity date of December 28, 1993), or unless 
an earlier date for any item is listed in Supplement 1 to part 742.
    (3) All items subject to missile proliferation controls (MTCR). 
Applications for all end-users in Iran, Syria or Sudan will 
generally be denied. Contract sanctity provisions for Iran and Syria 
are not available. Contract sanctity date for Sudan: January 19, 
1996, unless a prior contract sanctity date applies (e.g., items 
first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (4) All items subject to nuclear weapons proliferation controls 
(NRL).
    (i) Iran. Applications for all end-users in Iran will generally 
be denied. No contract sanctity date is available.
    (ii) Syria. Applications for military end-users or end-uses to 
Syria will generally be denied. Applications for non-military end-
users or end-uses will be considered on a case-by-case basis. No 
contract sanctity date is available.
    (iii) Sudan. Applications for military end-users or end-uses in 
Sudan will generally be denied. Applications for export and reexport 
to non-military end-users or end-uses will be considered on a case-
by-case basis. No contract sanctity date is available.
    (5) All military-related items, i.e., applications for export 
and reexport of items controlled by CCL entries ending with the 
number ``18''.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied. Contract sanctity date: see paragraph (c)(1)(i) of this 
Supplement.
    (ii) Syria. Applications for all end-users in Syria will 
generally be denied. Contract sanctity date: see paragraph 
(c)(1)(ii) of this Supplement.
    (iii) Sudan. Applications for all end-users in Sudan will 
generally be denied. Contract sanctity date for Sudan: January 19, 
1996, unless a prior contract sanctity date applies (e.g., items 
first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (6) All aircraft (powered and unpowered), helicopters, engines, 
and related spare parts and components.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied.
    (A) Contract sanctity date for helicopters exceeding 10,000 lbs. 
empty weight or fixed wing aircraft valued at $3 million or more: 
January 23, 1984.
    (B) Contract sanctity date for other helicopters and aircraft 
and gas turbine engines therefor: September 28, 1984.
    (C) Contract sanctity date for helicopter or aircraft parts and 
components controlled by 9A994: October 22, 1987.
    (ii) Syria. Applications for all end-users in Syria will 
generally be denied.
    (A) There is no contract sanctity for helicopters exceeding 
10,000 lbs. empty weight or fixed wing aircraft valued at $3 million 
or more; except that passenger aircraft, regardless of value, have a 
contract sanctity date of December 16, 1986, if destined for a 
regularly scheduled airline with assurance against military use.
    (B) Contract sanctity date for helicopters with 10,000 lbs. 
empty weight or less: April 28, 1986.
    (C) Contract sanctity date for other aircraft and gas turbine 
engines therefor: December 16, 1986.
    (D) Contract sanctity date for helicopter or aircraft parts and 
components controlled by 9A994: August 28, 1991.
    (iii) Sudan. Applications for all end-users in Sudan will 
generally be denied. Contract sanctity date: January 19, 1996.
    (7) Heavy duty, on-highway tractors.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied. Contract sanctity date: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria will generally be denied. Applications for non-
military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis. Contract sanctity date: August 
28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 
19, 1996.
    (8) Off-highway wheel tractors of carriage capacity 9t (10 tons) 
or more.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied. Contract sanctity date: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria will generally be denied. Applications for non-
military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis. Contract sanctity date: August 
28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 
19, 1996.
    (9) Large diesel engines (greater than 400 horsepower) and parts 
to power tank transporters.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied. Contract sanctity date: October 22, 1987.
    (ii) Sudan. Applications for military end-users or for military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 
19, 1996.
    (10) Cryptographic, cryptoanalytic, and cryptologic equipment.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied.

[[Page 12796]]

    (A) Contract sanctity date for military end-users or end-uses of 
cryptographic, cryptoanalytic, and cryptologic equipment that was 
subject to national security controls on October 22, 1987: see 
paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity date for all other cryptographic, 
cryptoanalytic, and cryptologic equipment for all end-users: October 
22, 1987.
    (ii) Syria. A license is required for all national security-
controlled cryptographic, cryptoanalytic, and cryptologic equipment 
to all end-users. Applications for all end-users in Syria will 
generally be denied. Contract sanctity date for cryptographic, 
cryptoanalytic, and cryptologic equipment that was subject to 
national security controls on August 28, 1991: see paragraph 
(c)(1)(ii) of this Supplement.
    (iii) Sudan. Applications for all end-users in Sudan of any such 
equipment will generally be denied. Contract sanctity date for 
Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of 
December 28, 1993).
    (11) Navigation, direction finding, and radar equipment.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
navigation, direction finding, and radar equipment that was subject 
to national security controls on August 28, 1991: see paragraph 
(c)(1)(i) of this Supplement.
    (B) Contract sanctity date for all other navigation, direction 
finding, and radar equipment for all end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (A) Contract sanctity date for exports of navigation, direction 
finding, and radar equipment that was subject to national security 
controls on August 28, 1991: see paragraph (c)(1)(ii) of this 
Supplement.
    (B) Contract sanctity date for all other navigation, direction 
finding, and radar equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for 
Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of 
December 28, 1993).
    (12) Electronic test equipment.
    (i) Iran. Applications for all end-users in Iran will generally 
be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
electronic test equipment that was subject to national security 
controls on October 22, 1987: see paragraph (c)(1)(i) of this 
Supplement.
    (B) Contract sanctity date for all other electronic test 
equipment for all end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (A) Contract sanctity date for electronic test equipment that 
was subject to national security controls on August 28, 1991: see 
paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other electronic test 
equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (13) Mobile communications equipment.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
mobile communications equipment that was subject to national 
security controls on October 22, 1987: see paragraph (c)(1)(i) of 
this Supplement.
    (B) Contract sanctity date for all end-users of all other mobile 
communications equipment: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (A) Contract sanctity date for mobile communications equipment 
that was subject to national security controls on August 28, 1991: 
see paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for exports of all other mobile 
communications equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (14) Acoustic underwater detection equipment.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
acoustic underwater detection equipment that was subject to national 
security controls on October 22, 1987: see paragraph (c)(1)(i) of 
this Supplement.
    (B) Contract sanctity date for all other acoustic underwater 
detection equipment for all end-users: October 22, 1987.
    (ii) Syria. A license is required for acoustic underwater 
detection equipment that was subject to national security controls 
on August 28, 1991, to all end-users. Applications for military end-
users or for military end-uses in Syria will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis. Contract 
sanctity date for acoustic underwater detection equipment that was 
subject to national security controls on August 28, 1991: see 
paragraph (c)(1)(ii) of this Supplement.
    (iii) Sudan. Applications for military end-users or for military 
end-uses to Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (15) Portable electric power generators.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied. Contract sanctity date: October 
22, 1987.
    (ii) Reserved.
    (16) Vessels and boats, including inflatable boats.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
vessels and boats that were subject to national security controls on 
October 22, 1987: see paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity date for all other vessels and boats for 
all end-users: October 22, 1987.
    (ii) Syria. A license is required for national security-
controlled vessels and boats. Applications for military end-users or 
for military end-uses in Syria of these items will generally be 
denied. Applications for non-military end-users or for non-military 
end-uses in Syria will be considered on a case-by-case basis. 
Contract sanctity date for vessels and boats that were subject to 
national security controls on August 28, 1991: see paragraph 
(c)(1)(ii) of this Supplement.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (17) Marine and submarine engines (outboard/inboard, regardless 
of horsepower).
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.

[[Page 12797]]

    (A) Contract sanctity date for military end-users or end-uses of 
marine and submarine engines that were subject to national security 
controls on October 22, 1987: See paragraph (c)(1)(i) of this 
Supplement.
    (B) Contract sanctity date for outboard engines of 45 HP or more 
for all end-users: September 28, 1984.
    (C) Contract sanctity date for all other marine and submarine 
engines for all end-users: October 22, 1987.
    (ii) Syria. A license is required for all marine and submarine 
engines subject to national security controls to all end-users. 
Applications for military end-users or for military end-uses in 
Syria of these items will generally be denied. Applications for non-
military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis. Contract sanctity date for 
marine and submarine engines that were subject to national security 
controls on August 28, 1991: See paragraph (c)(1)(ii) of this 
Supplement.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (18) Underwater photographic equipment.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
underwater photographic equipment that was subject to national 
security controls on October 22, 1987: See paragraph (c)(1)(i) of 
this Supplement.
    (B) Contract sanctity date for all other underwater photographic 
equipment for all end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (A) Contract sanctity date for underwater photographic equipment 
that was subject to national security controls on August 28, 1991: 
See paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other underwater photographic 
equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (19) Submersible systems.
    (i) Iran. Applications for all end-users in Iran of such systems 
will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
submersible systems that were subject to national security controls 
on October 22, 1987: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity date for all other submersible systems for 
all end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such systems will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (A) Contract sanctity date for submersible systems that were 
subject to national security controls on August 28, 1991: See 
paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other submersible systems: 
August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such systems will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (20) Scuba gear and related equipment.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied. No contract sanctity is 
available for such items to Iran.
    (ii) Sudan. Applications for military end-users and end-uses in 
Sudan of these items will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 
19, 1996.
    (21) Pressurized aircraft breathing equipment.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied. Contract sanctity date: October 
22, 1987.
    (ii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date: January 19, 1996.
    (22) Computer numerically controlled machine tools.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of computer numerically controlled machine tools that were subject 
to national security controls on August 28, 1991: See paragraph 
(c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other computer numerically 
controlled machine tools for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for computer numerically controlled 
machine tools that were subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for exports of all other computer 
numerically controlled machine tools: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (23) Vibration test equipment.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of vibration test equipment that was subject to national security 
controls on August 28, 1991: See paragraph (c)(1)(i) of this 
Supplement.
    (B) Contract sanctity dates for all other vibration test 
equipment for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for vibration test equipment that was 
subject to national security controls on August 28, 1991: See 
paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for exports of all other vibration 
test equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (24) Digital computers with a CTP of 6 or above, assemblies, 
related equipment, equipment for development or production of 
magnetic and optical storage equipment, and materials for 
fabrication of head/disk assemblies.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity dates for military end-users and end-uses 
of items that were subject to national security controls on August 
28, 1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity date for all other items for all end-
users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of

[[Page 12798]]
these items will generally be denied. Applications for non-military 
end-users or for non-military end-uses will be considered on a case-
by-case basis.
    (A) Contract sanctity dates for items that were subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other items: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (25) Telecommunications equipment.
    (i) A license is required for the following telecommunications 
equipment:
    (A) Radio relay systems or equipment operating at a frequency 
equal to or greater than 19.7 GHz or ``spectral efficiency'' greater 
than 3 bit/s/Hz;
    (B) Fiber optic systems or equipment operating at a wavelength 
greater than 1000 nm;
    (C) ``Telecommunications transmission systems'' or equipment 
with a ``digital transfer rate'' at the highest multiplex level 
exceeding 45 Mb/s.
    (ii) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of telecommunications equipment that was subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(i) of 
this Supplement.
    (B) Contract sanctity dates for all other vibration test 
equipment for all end-users: August 28, 1991.
    (iii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for exports of telecommunications 
equipment that was subject to national security controls on August 
28, 1991: See paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for exports of all other 
telecommunications equipment: August 28, 1991.
    (iv) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (26) Microprocessors operating at a clock speed over 25 MHz.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of microprocessors that were subject to national security controls 
on August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other microprocessors for 
all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for microprocessors that were subject 
to national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other microprocessors: August 
28, 1991.
    (iii) Sudan.Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (27) Semiconductor manufacturing equipment. For Iran, Syria or 
Sudan, a license is required for all such equipment described in 
ECCNs 3B001 and 3B991.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of semiconductor manufacturing equipment that was subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other microprocessors for 
all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for such semiconductor manufacturing 
equipment that was subject to national security controls on August 
28, 1991: See paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other semiconductor 
manufacturing equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (28) Software specially designed for the computer-aided design 
and manufacture of integrated circuits.
    (i) Iran. Applications for all end-users in Iran of such 
software will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of such software that was subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other such software for all 
end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such software will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for such software that was subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other such software: August 
28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such software will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (29) Packet switches. Equipment described in ECCNs 5A001.c and 
5A994.
    (i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
in Iran of packet switches that were subject to national security 
controls on August 28, 1991: See paragraph (c)(1)(i) of this 
Supplement.
    (B) Contract sanctity dates for all other packet switches for 
all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for packet switches that were subject 
to national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other packet switches: August 
28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (30) Specially designed software for air traffic control 
applications that uses any digital signal processing techniques for 
automatic target tracking or that has a facility for electronic 
tracking.

[[Page 12799]]

    (i) Iran. Applications for all end-users in Iran of such 
software will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of such software that was subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other such software for all 
end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such software will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for such software that was subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for exports of such software: August 
28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such software will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (31) Gravity meters having static accuracy of less (better) than 
100 microgal, or gravity meters of the quartz element (worden) type.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of gravity meters that were subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other such gravity meters 
for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for gravity meters that were subject 
to national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for exports of all other such gravity 
meters: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (32) Magnetometers with a sensitivity lower (better) than 1.0 nt 
rms per square root Hertz.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of such magnetometers that were subject to national security 
controls on August 28, 1991: See paragraph (c)(1)(i) of this 
Supplement.
    (B) Contract sanctity dates for all other such magnetometers for 
all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for such magnetometers that were 
subject to national security controls on August 28, 1991: See 
paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other such magnetometers: 
August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (33) Fluorocarbon compounds described in ECCN 1C994 for cooling 
fluids for radar.
    (i) Iran. Applications for all end-users in Iran of such 
compounds will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of such fluorocarbon compounds that were subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(i) of 
this Supplement.
    (B) Contract sanctity dates for all other such fluorocarbon 
compounds for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such compounds will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for such fluorocarbon compounds that 
were subject to national security controls on August 28, 1991: See 
paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other such fluorocarbon 
compounds: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such compounds will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (34) High strength organic and inorganic fibers (kevlar) 
described in ECCN 1C210.
    (i) Iran. Applications for all end-users in Iran of such fibers 
will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of high strength organic and inorganic fibers (kevlar) described in 
1C210 that were subject to national security controls on August 28, 
1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other high strength organic 
and inorganic fibers (kevlar) described in 1C210 for all end-users: 
August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of such fibers will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for high strength organic and 
inorganic fibers (kevlar) described in 1C210 that were subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other high strength organic 
and inorganic fibers (kevlar) described in 1C210: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such fibers will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (35) Machines described in ECCNs 2B003 and 2B993 for cutting 
gears up to 1.25 meters in diameter.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses 
of such machines that were subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other such machines for all 
end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for machines that were subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other machines: August 28, 
1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (36) Aircraft skin and spar milling machines.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.

[[Page 12800]]

    (A) Contract sanctity date for military end-users and end-uses 
of aircraft skin and spar milling machines that were subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(i) of this Supplement.
    (B) Contract sanctity dates for all other aircraft skin and spar 
milling machines to all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for aircraft skin and spar milling 
machines that were subject to national security controls on August 
28, 1991: See paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other aircraft skin and spar 
milling machines: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (37) Manual dimensional inspection machines described in ECCN 
2B992.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
manual dimensional inspection machines that were subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(i) of 
this Supplement.
    (B) Contract sanctity date for all other manual dimensional 
inspection machines for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (A) Contract sanctity date for such manual dimensional 
inspection machines that were subject to national security controls 
on August 28, 1991: See paragraph (c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other such manual dimensional 
inspection machines: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (38) Robots capable of employing feedback information in real 
time processing to generate or modify programs.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
such robots that were subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
    (B) Contract sanctity date for all other such robots: August 28, 
1991.
    (ii) Syria. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (A) Contract sanctity date for such robots that were subject to 
national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this Supplement.
    (B) Contract sanctity date for all other such robots: August 28, 
1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
in Sudan will be considered on a case-by-case basis. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for 
foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (39) Explosive device detectors.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied. Contract sanctity date: January 19, 1996.
    (ii) Syria. Applications for all end-users in Syria of these 
items will generally be denied. Contract sanctity date: January 19, 
1996.
    (iii) Sudan. Applications for all end-users in Sudan of these 
items will generally be denied. Contract sanctity date: January 19, 
1996.

Supplement No. 3 to Part 742--High Performance Computers; Safeguard 
Conditions and Related Information

    This Supplement sets forth the security conditions and safeguard 
plans for the export, reexport, or in-country transfer of high 
performance computers that may be imposed by BXA to certain 
destinations. The licensing policies for the export, reexport, or 
in-country transfer of high performance computers are set forth in 
Sec. 742.12 of this part.
    (a) Safeguard conditions. Following interagency review of the 
application, the Bureau of Export Administration (BXA) will instruct 
the exporter to submit a safeguard plan signed by the ultimate 
consignee and certified by the export control authorities of the 
importing country (see Certification by export control authorities 
of importing country in this Supplement). The safeguard plan must 
indicate that the ultimate consignee agrees to implement those 
safeguards required by the BXA as a condition of issuing the 
license. BXA will inform exporters concerning which of the following 
safeguards will be imposed as license conditions:
    (1) The applicant will assume responsibility for providing 
adequate security against physical diversion of the computer during 
shipment (e.g., delivery by either attended or monitored shipment, 
using the most secure route possible--this precludes using the 
services or facilities of any country in Computer Tier 4).
    (2) There will be no reexport or intra-country transfer of the 
computer without prior written authorization from BXA.
    (3) The computer systems will be used only for those activities 
approved on the license or reexport authorization.
    (4) There will be no changes either in the end-users or the end-
uses indicated on the license without prior written authorization by 
BXA.
    (5) Only software that supports the approved end-uses will be 
shipped with the computer system.
    (6) The end-user will station security personnel at the computer 
using facility to ensure that the appropriate security measures are 
implemented.
    (7) The exporter will station representatives at the computer 
using facility, or make such individuals readily available, to guide 
the security personnel in the implementation and operation of the 
security measures.
    (8) The security personnel will undertake the following measures 
under the guidance of the exporter's representatives:
    (i) The physical security of the computer using facility;
    (ii) The establishment of a system to ensure the round-the-clock 
supervision of computer security;
    (iii) The inspection, if necessary, of any program or software 
to be run on the computer system in order to ensure that all usage 
conforms to the conditions of the license;
    (iv) The suspension, if necessary, of any run in progress and 
the inspection of any output generated by the computer to determine 
whether the program runs or output conform with the conditions of 
the license;
    (v) The inspection of usage logs daily to ensure conformity with 
the conditions of the license and the retention of records of these 
logs for at least a year;
    (vi) The determination of the acceptability of computer users to 
ensure conformity with the conditions of the license;
    (vii) The immediate reporting of any security breaches or 
suspected security breaches to the government of the importing 
country and to the exporter's representatives;
    (viii) The execution of the following key tasks:

(A) Establishment of new accounts;
(B) Assignment of passwords;
(C) Random sampling of data;
(D) Generation of daily logs;

    (ix) The maintenance of the integrity and security of tapes and 
data files containing archived user files, log data, or system 
backups.
    (9) The exporter's representatives will be present when certain 
key functions are being carried out (e.g., the establishment of new 
accounts, the assignment of passwords, the random sampling of data, 
the generating of daily logs, the setting of limits to computer 
resources available to users in the development mode, the 
certification of

[[Page 12801]]
programs for conformity to the approved end-uses before they are 
allowed to run in the production mode, and the modification to 
previously certified production programs).
    (10) The security personnel and the exporter's representatives 
will provide monthly reports on the usage of the computer system and 
on the implementation of the safeguards.
    (11) The computer system will be housed in one secure building 
and protected against theft and unauthorized entry at all times.
    (12) Restricted nationals, i.e., nationals of Computer Tier 4 
countries, will not be allowed access to computers:
    (i) No physical or computational access to computers may be 
granted to restricted nationals without prior written authorization 
from BXA, except that commercial consignees as described in this 
Supplement are prohibited only from giving such nationals user-
accessible programmability without prior written authorization;
    (ii) No passwords or IDs may be issued to restricted nationals;
    (iii) No work may be performed on the computer on behalf of 
restricted nationals; and
    (iv) No conscious or direct ties may be established to networks 
(including their subscribers) operated by restricted nationals.
    (13) Physical access to the computer, the operator consoles, and 
sensitive storage areas of the computer using facility will be 
controlled by the security personnel, under the guidance and 
monitoring of the exporter's representatives, and will be limited to 
the fewest number of people needed to maintain and run the computer 
system.
    (14) The computer will be equipped with the necessary software 
to: Permit access to authorized persons only, detect attempts to 
gain unauthorized access, set and maintain limits on usage, 
establish accountability for usage, and generate logs and other 
records of usage. This software will also maintain the integrity of 
data and program files, the accounting and audit system, the 
password or computational access control system, and the operating 
system itself.
    (i) The operating system will be configured so that all jobs can 
be designated and tracked as either program development jobs or as 
production jobs.
    (ii) In the program development mode, users will be free, 
following verification that their application conforms to the agreed 
end-use, to create, edit, or modify programs, to use utilities such 
as editors, debuggers, or compilers and to verify program operation. 
Programs in the development mode will be subject to inspection as 
provided by paragraph (a)(8)(iii) of this Supplement.
    (iii) In the production mode, users will have access to the full 
range of computer resources, but will be prohibited from modifying 
any program or using utilities that could modify any program. Before 
being allowed to run in the production mode, a program will have to 
be certified for conformity to approved end-uses by the security 
personnel and the exporter's representatives.
    (iv) Programs certified for execution in the production mode 
will be protected from unauthorized modification by appropriate 
software and physical security measures. Any modifications to 
previously certified production programs will be approved by the 
security personnel under the guidance and monitoring of the 
exporter's representatives.
    (v) The computer will be provided with accounting and audit 
software to ensure that detailed logs are maintained to record all 
computer usage. A separate log of security-related events will also 
be kept.
    (vi) For each job executed in the production mode, the operating 
system will record execution characteristics in order to permit 
generation of a statistical profile of the program executed.
    (15) The source code of the operating system will be accessible 
only to the exporter's representatives. Only those individuals will 
make changes in this source code.
    (16) The security personnel, under the guidance of the 
exporter's representatives, will change passwords for individuals 
frequently and at unpredictable intervals.
    (17) The security personnel, under the guidance of the 
exporter's representatives, will have the right to deny passwords to 
anyone. Passwords will be denied to anyone whose activity does not 
conform to the conditions of the license.
    (18) Misuse of passwords by users will result in denial of 
further access to the computer.
    (19) The exporter's representatives will install a strict 
password system and provide guidance on its implementation.
    (20) Only the exporter's representatives will be trained in 
making changes in the password system and only they will make such 
changes.
    (21) No computer will be networked to other computers outside 
the computer center without prior authorization from BXA.
    (22) Generally, remote terminals will not be allowed outside the 
computer using facility without prior authorization by BXA. If 
remote terminals are specifically authorized by the license:
    (i) The terminals will have physical security equivalent to the 
safeguards at the computer using facility;
    (ii) The terminals will be constrained to minimal amounts of 
computer resources (CPU time, memory access, number of input-output 
operations, and other resources);
    (iii) The terminals will not be allowed direct computational 
access to the computer (i.e., the security personnel, under the 
guidance of the exporter's representatives, will validate the 
password and identity of the user of any remote terminals before any 
such user is permitted to access the computer); all terminals will 
be connected to the computer system by a dedicated access line and a 
network access controller.
    (23) There will be no direct input to the computer from remote 
terminals. Any data originating from outside the computer using 
facility, except for direct input from terminals within the same 
compound as the computer using facility, will first be processed by 
a separate processor or network access controller in order to permit 
examination of the data prior to its entry into the computer.
    (24) The exporter will perform all maintenance of the computer 
system.
    (25) Spare parts kept on site will be limited to the minimum 
amount. Spares will be kept in an area accessible only to the 
exporter's representatives. These representatives will maintain a 
strict audit system to account for all spare parts.
    (26) No development or production technology on the computer 
system will be sent with the computer to the ultimate consignee.
    (27) The end-user must immediately report any suspicions or 
facts concerning possible violations of the safeguards to the 
exporter and to the export control authorities of the importing 
country.
    (28) The exporter must immediately report any information 
concerning possible violations of the safeguards to BXA. A violation 
of the safeguards might constitute grounds for suspension or 
termination of the license, preventing the shipment of unshipped 
spare parts, or the denial of additional licenses for spare parts, 
etc.
    (29) The end-user will be audited quarterly by an independent 
consultant who has been approved by the export control authorities 
of the importing and exporting countries, but is employed at the 
expense of the end-user. The consultant will audit the computer 
usage and the implementation of the safeguards.
    (30) The installation and operation of the computer will be 
coordinated and controlled by the following management structure:
    (i) Steering Committee. The Steering Committee will comprise 
nationals of the importing country who will oversee the management 
and operation of the computer.
    (ii) Security Staff. The Security Staff will be selected by the 
end-user or the government of the importing country to ensure that 
the required safeguards are implemented. This staff will be 
responsible for conducting an annual audit to evaluate physical 
security, administrative procedures, and technical controls.
    (iii) Technical Consultative Committee. This committee will 
comprise technical experts from the importing country and the 
exporting company who will provide guidance in operating and 
maintaining the computer. At least one member of the committee will 
be an employee of the exporter. The committee will approve all 
accounts and maintain an accurate list of all users. In addition, 
the committee will advise the Steering Committee and the Security 
Staff concerning the security measures needed to ensure compliance 
with the safeguards required by the license.
    (31) An ultimate consignee who is a multiple-purpose end-user, 
such as a university, will establish a peer review group comprising 
experts who represent each department or application area authorized 
for use on the computer under the conditions of the license. This 
group shall have the following responsibilities:
    (i) Review all requests for computer usage and make 
recommendations concerning the acceptability of all projects and 
users;
    (ii) Submit these recommendations to the Security Staff and 
Technical Consultative Committee for review and approval (see 
paragraph (a)(28) of this Supplement);
    (iii) Establish acceptable computer resource parameters for each 
project and

[[Page 12802]]
review the results to verify their conformity with the authorized 
end-uses, restrictions, and parameters; and
    (iv) Prepare monthly reports that would include a description of 
any runs exceeding the established parameters and submit them to the 
security staff.
    (32) The end-user will also cooperate with any post-shipment 
inquiries or inspections by the U.S. Government or exporting company 
officials to verify the disposition and/or use of the computer, 
including access to the following:
    (i) Usage logs, which should include, at a minimum, computer 
users, dates, times of use, and amount of system time used;
    (ii) Computer access authorization logs, which should include, 
at a minimum, computer users, project names, and purpose of 
projects.
    (33) The end-user will also cooperate with the U.S. Government 
or exporting company officials concerning the physical inspection of 
the computer using facility, on short notice, at least once a year 
and will provide access to all data relevant to computer usage. This 
inspection will include:
    (i) Analyzing any programs or software run on the computer to 
ensure that all usage complies with the authorized end-uses on the 
license. This will be done by examining user files (e.g., source 
codes, machine codes, input/output data) that are either on-line at 
the time of the inspection or that have been previously sampled and 
securely stored.
    (ii) Checking current and archived usage logs for conformity 
with the authorized end-uses and the restrictions imposed by the 
license.
    (iii) Verifying the acceptability of all computer users in 
conformity with the authorized end-uses and the restrictions imposed 
by the license.
    (34) Usage requests that exceed the quantity of monthly CPU time 
specified on the license shall not be approved without prior written 
authorization from the BXA. Requests for computational access 
approval shall include a description of the intended purpose for 
which access is sought.
    (35) In addition to, or in lieu of, the normal access by on-site 
exporting company staff or its representatives, the company, when 
required by the exporting government, will provide a separate remote 
electronic access capability to the computer for the purposes of 
maintenance, troubleshooting, inspection of work in progress, and 
auditing of all work performed on the computer. On-site and central 
exporting company hardware and software maintenance facilities, at 
the direction of the exporting company staff or its representatives, 
to gather information such as:
    (i) Statistical profiles of production jobs;
    (ii) Logs of jobs run in both production and development mode;
    (iii) Logs and reports of security related events.
    If such method is used, the remote maintenance facilities will 
be considered part of the operating system and protected 
accordingly, and will be available only to exporting company 
operational staff or its representatives. The maintenance hardware 
and software and associated communication links will be protected to 
ensure the integrity and authenticity of data and programs and to 
prevent tampering with hardware.
    (36) The export company staff or its representatives will be 
required to provide personnel for a specified period of time at the 
computer facility for management, operation, and safeguarding of the 
computer.
    (b) Certification by export control authorities of importing 
country.
    (1) The following importing government certification may be 
required under Sec. 742.12 of this part:
    This is to certify that (name of ultimate consignee) has 
declared to (name of appropriate foreign government agency) that the 
computer (model name) will be used only for the purposes specified 
in the end-use statement and that the ultimate consignee will 
establish and adhere to all the safeguard conditions and perform all 
other undertakings described in the end-use statement.
    The (name of appropriate foreign government agency) will advise 
the United States Government of any evidence that might reasonably 
indicate the existence of circumstances (e.g., transfer of 
ownership) that could affect the objectives of the security 
safeguard conditions.
    (2) Other importing government assurances regarding prohibited 
activities may also be required on a case-by-case basis.
    (c) Commercial consignees.
    Exports or reexports of computers that are solely dedicated to 
the following non-scientific and non-technical commercial business 
uses will usually be eligible for a reduced set of security 
safeguard conditions:
    (1) Financial services (e.g., banking, securities and commodity 
exchanges);
    (2) Insurance;
    (3) Reservation systems;
    (4) Point-of-sales systems;
    (5) Mailing list maintenance for marketing purposes;
    (6) Inventory control for retail/wholesale distribution.

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

Sec.
744.1  General provisions.
744.2  Restrictions on certain nuclear end-uses.
744.3  Restrictions on certain missile end-uses.
744.4  Restrictions on certain chemical and biological weapons end-
uses.
744.5  Restrictions on certain maritime nuclear propulsion end-uses.
744.6  Restrictions on certain activities of U.S. persons.
744.7  Restrictions on certain exports to and for the use of certain 
foreign vessels or aircraft.
744.8  Restrictions on certain exports to all countries for Libyan 
aircraft.

Supplement No. 1 to Part 744--Missile Technology Projects

Supplement No. 2 to Part 744--[Reserved]

Supplement No. 3 to Part 744--Countries Not Subject to Certain Nuclear 
End-Use Restrictions in Sec. 744.2(a)

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. 12058, 3 CFR, 1978 
Comp., p. 179; E.O. 12851, 3 CFR 1993 Comp., p. 608; E.O. 12924, 3 
CFR, 1994 Comp., p. 917; E.O. 12938, 3 CFR, 1994 Comp., p. 950; 
Notice of August 15, 1995 (60 FR 42767, August 17, 1995).


Sec. 744.1  General provisions.

    (a) Introduction. In this part, references to the EAR are 
references to 15 CFR chapter VII, subchapter C. This part contains 
prohibitions against exports, reexports, and selected transfers to 
certain end-users and end-uses as introduced under General Prohibition 
Four (Denial Orders) and prohibitions against exports or reexports to 
certain end-uses as introduced, under General Prohibition Five (End-
use/End-users). Sections 744.2, 744.3, 744.4, and 744.5 prohibit 
exports and reexports of items subject to the EAR to defined nuclear, 
missile, chemical and biological weapons, and nuclear maritime end-
uses. Section 744.6 prohibits certain activities by U.S. persons in 
support of certain nuclear, missile, chemical, or biological end-uses 
regardless of whether that support involves the export or reexport of 
items subject to the EAR. Sections 744.7 and 744.8 prohibit exports and 
reexports of certain items for certain aircraft and vessels. In 
addition, these sections include license review standards for export 
license applications submitted as required by these sections. It should 
also be noted that part 764 of the EAR prohibits exports, reexports and 
certain in-country transfers of items subject to the EAR to denied 
parties.
    (b) Steps. The following are steps you should follow in using the 
provisions of this part:
    (1) Review end-use and end-user prohibitions. First, review each 
end-use and end-user prohibition described in this part to learn the 
scope of these prohibitions.
    (2) Determine applicability. Second, determine whether any of the 
end-use and end-user prohibitions described in this part are applicable 
to your planned export, reexport, or other activity. See Supplement No. 
1 to part 732 for guidance.


Sec. 744.2   Restrictions on certain nuclear end-uses.

    (a) General prohibition. In addition to the license requirements 
for items

[[Page 12803]]
specified on the CCL, you may not export or reexport to any 
destination, other than countries in the Supplement No. 3 to this part, 
any item subject to the EAR without a license if at the time of the 
export or reexport you know 1 the item will be used directly or 
indirectly in any one or more of the following activities described in 
paragraphs (a)(1), (a)(2), and (a)(3) of this section:

    \1\  Part 772 of the EAR defines ``knowledge'' for all of the 
EAR except part 760, Restrictive Trade Practices and Boycotts. The 
definition, which includes variants such as ``know'' and ``reason to 
know'', encompasses more than positive knowledge. Thus, the use of 
``know'' in this section in place of the former wording ``know or 
have reason to know'' does not lessen or otherwise change the 
responsibilities of persons subject to the EAR.
---------------------------------------------------------------------------

    (1) Nuclear explosive activities. Nuclear explosive activities, 
including research on or development, design, manufacture, 
construction, testing or maintenance of any nuclear explosive device, 
or components or subsystems of such a device.\2\ \3\

    \2\ Nuclear explosive devices and any article, material, 
equipment, or device specifically designed or specially modified for 
use in the design, development, or fabrication of nuclear weapons or 
nuclear explosive devices are subject to export licensing or other 
requirements of the Office of Defense Trade Controls, U.S. 
Department of State, or the licensing or other restrictions 
specified in the Atomic Energy Act of 1954, as amended. Similarly, 
items specifically designed or specifically modified for use in 
devising, carrying out, or evaluating nuclear weapons tests or 
nuclear explosions (except such items as are in normal commercial 
use for other purposes) are subject to the same requirements.
    \3\ Also see Secs. 744.5 and 748.4 of the EAR for special 
provisions relating to technical data for maritime nuclear 
propulsion plants and other commodities.
---------------------------------------------------------------------------

    (2) Unsafeguarded nuclear activities. Activities including research 
on, or development, design, manufacture, construction, operation, or 
maintenance of any nuclear reactor, critical facility, facility for the 
fabrication of nuclear fuel, facility for the conversion of nuclear 
material from one chemical form to another, or separate storage 
installation, where there is no obligation to accept International 
Atomic Energy Agency (IAEA) safeguards at the relevant facility or 
installation when it contains any source or special fissionable 
material (regardless of whether or not it contains such material at the 
time of export), or where any such obligation is not met.
    (3) Safeguarded and unsafeguarded nuclear activities. Safeguarded 
and unsafeguarded nuclear fuel cycle activities, including research on 
or development, design, manufacture, construction, operation or 
maintenance of any of the following facilities, or components for such 
facilities: 4

    \4\  Such activities may also require a specific authorization 
from the Secretary of Energy pursuant to Sec. 57.b.(2) of the Atomic 
Energy Act of 1954, as amended, as implemented by the Department of 
Energy's regulations published in 10 CFR 810.
---------------------------------------------------------------------------

    (i) Facilities for the chemical processing of irradiated special 
nuclear or source material;
    (ii) Facilities for the production of heavy water;
    (iii) Facilities for the separation of isotopes of source and 
special nuclear material; or
    (iv) Facilities for the fabrication of nuclear reactor fuel 
containing plutonium.
    (b) Additional prohibition on exporters or reexporters informed by 
BXA. BXA may inform an exporter or reexporter, either individually by 
specific notice or through amendment to the EAR, that a license is 
required for export or reexport of specified items to specified end-
users, because BXA has determined that there is an unacceptable risk of 
use in, or diversion to, any of the activities described in paragraph 
(a) of this section. Specific notice is to be given only by, or at the 
direction of, the Deputy Assistant Secretary for Export Administration. 
When such notice is provided orally, it will be followed by a written 
notice within two working days signed by the Deputy Assistant Secretary 
for Export Administration. The absence of any such notification does 
not excuse the exporter or reexporter from compliance with the license 
requirements of paragraph (a) of this section.
    (c) Exceptions. Despite the prohibitions described in paragraph (a) 
and (b) of this section, you may export technology subject to the EAR 
under the License Exception provided in Sec. 740.8(a) of the EAR for 
operating technology and software (OTS) and under the License Exception 
provided in Sec. 740.8(b) of the EAR for sales technology (STS) but 
only to and for use in countries listed in Country Group A:1 (see 
Supplement No. 1 to part 740 of the EAR) and New Zealand. All the terms 
and conditions of License Exception 13 apply except that this exception 
may only be used for exports to the countries listed in Country Group 
A:1 and New Zealand notwithstanding the provisions of part 740 of the 
EAR.
    (d) License review standards. The following factors are among those 
used by the United States to determine whether to grant or deny license 
applications required under this section:
    (1) Whether the commodities, software, or technology to be 
transferred are appropriate for the stated end-use and whether that 
stated end-use is appropriate for the end-user;
    (2) The significance for nuclear purposes of the particular 
commodity, software, or technology;
    (3) Whether the commodities, software, or technology to be exported 
are to be used in research on or for the development, design, 
manufacture, construction, operation, or maintenance of any 
reprocessing or enrichment facility;
    (4) The types of assurances or guarantees given against use for 
nuclear explosive purposes or proliferation in the particular case;
    (5) Whether the end-user has been engaged in clandestine or illegal 
procurement activities;
    (6) Whether an application for a license to export to the end-user 
has previously been denied, or whether the end-use has previously 
diverted items received under a license, License Exception, or NLR to 
unauthorized activities;
    (7) Whether the export would present an unacceptable risk of 
diversion to a nuclear explosive activity or unsafeguarded nuclear 
fuel-cycle activity described in Sec. 744.2 of this part; and
    (8) The nonproliferation credentials of the importing country, 
based on consideration of the following factors:
    (i) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco) (see Supplement 
No. 2 to part 742 of the EAR), or to a similar international legally-
binding nuclear nonproliferation agreement;
    (ii) Whether the importing country has all of its nuclear 
activities, facilities or installations that are operational, being 
designed, or under construction, under International Atomic Energy 
Agency (IAEA) safeguards or equivalent full scope safeguards;
    (iii) Whether there is an agreement for cooperation in the civil 
uses of atomic energy between the U.S. and the importing country;
    (iv) Whether the actions, statements, and policies of the 
government of the importing country are in support of nuclear 
nonproliferation and whether that government is in compliance with its 
international obligations in the field of nonproliferation;
    (v) The degree to which the government of the importing country 
cooperates in nonproliferation policy generally (e.g., willingness to 
consult on international nonproliferation issues);
    (vi) Intelligence data on the importing country's nuclear 
intentions and activities.

[[Page 12804]]



Sec. 744.3  Restrictions on certain missile end-uses.

    (a) General prohibition. In addition to the license requirements 
for items specified on the CCL, you may not export or reexport an item 
subject to the EAR to any destination, including Canada, without a 
license if at the time of the export or reexport you know the item:
    (1) Is destined to or for a project listed in the footnote to 
Country Group D:4 (see Supplement No. 1 to part 740 of the EAR); or
    (2) Will be used in the design, development, production or use of 
missiles in or by a country listed in Country Group D:4, whether or not 
that use involves a listed project.
    (b) Additional prohibition on exporters informed by BXA. BXA may 
inform the exporter or reexporter, either individually by specific 
notice or through amendment to the EAR, that a license is required for 
a specific export or reexport, or for exports or reexports of specified 
items to a certain end-user, because there is an unacceptable risk of 
use in or diversion to activities described in paragraph (a) of this 
section, anywhere in the world. Specific notice is to be given only by, 
or at the direction of, the Deputy Assistant Secretary for Export 
Administration. When such notice is provided orally, it will be 
followed by a written notice within two working days signed by the 
Deputy Assistant Secretary for Export Administration. However, the 
absence of any such notification does not excuse the exporter from 
compliance with the license requirements of paragraph (a) of this 
section. An illustrative list of projects is included in a footnote to 
Country Group D:4. Exporters and reexporters are deemed to have been 
informed that an individual license is required to export or reexport 
to these projects. Exporters should be aware that the list of projects 
in Country Group D:4 is not comprehensive; extra caution should be 
exercised when making any shipments to a country listed in Country 
Group D:4.
    (c) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraph (a) and (b) of this section.
    (d) License review standards for certain missile end-uses. (1) 
Applications to export the items subject to this section will be 
considered on a case-by-case basis to determine whether the export 
would make a material contribution to the proliferation of missiles. 
When an export is deemed to make a material contribution, the license 
will be denied.
    (2) The following factors are among those that will be considered 
to determine what action should be taken on an application required by 
this section:
    (i) The specific nature of the end-use;
    (ii) The significance of the export in terms of its contribution to 
the design, development, production, or use of missiles;
    (iii) The capabilities and objectives of the missile and space 
programs of the recipient country;
    (iv) The non-proliferation credentials of the importing country;
    (v) The types of assurances or guarantees against design, 
development, production or use for missiles delivery purposes that are 
given in a particular case; and
    (vi) The existence of a pre-existing contract.


Sec. 744.4  Restrictions on certain chemical and biological weapons 
end-uses.

    (a) General prohibition. In addition to the license requirements 
for items specified on the CCL, you may not export or reexport an item 
subject to the EAR to any destination, including Canada, without a 
license if at the time of the export or reexport you know the item will 
be used in the design, development, production, stockpiling, or use of 
chemical or biological weapons in or by a country listed in Country 
Group D:3 (see Supplement No. 1 to part 740 of the EAR).
    (b) Additional prohibition on exporters informed by BXA. BXA may 
inform the exporter or reexporter, either individually by specific 
notice or through amendment to the EAR, that a license is required for 
a specific export or reexport, or for export or reexport of specified 
items to a certain end-user, because there is an unacceptable risk of 
use in or diversion to such activities, anywhere in the world. Specific 
notice is to be given only by, or at the direction of, the Deputy 
Assistant Secretary for Export Administration. When such notice is 
provided orally, it will be followed by a written notice within two 
working days signed by the Deputy Assistant Secretary for Export 
Administration. However, the absence of any such notification does not 
excuse the exporter from compliance with the license requirements of 
paragraph (a) of this section.
    (c) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraphs (a) and (b) of this section.
    (d) License review standards. (1) Applications to export or 
reexport items subject to this section will be considered on a case-by-
case basis to determine whether the export or reexport would make a 
material contribution to the design, development, production, 
stockpiling, or use of chemical or biological weapons. When an export 
is deemed to make such a contribution, the license will be denied.
    (2) The following factors are among those that will be considered 
to determine what action should be taken on an application required 
under this section:
    (i) The specific nature of the end-use;
    (ii) The significance of the export in terms of its contribution to 
the design, development, production, stockpiling, or use of chemical or 
biological weapons;
    (iii) The non-proliferation credentials of the importing country;
    (iv) The types of assurances or guarantees against design, 
development, production, stockpiling, or use of chemical or biological 
weapons that are given in a particular case; and
    (v) The existence of a pre-existing contract.5

    \5\ See Supplement No. 1 to part 742 of the EAR for relevant 
contract sanctity dates.
---------------------------------------------------------------------------


Sec. 744.5  Restrictions on certain maritime nuclear propulsion end-
uses.

    (a) General prohibition. In addition to the license requirements 
for items specified on the CCL, you may not export or reexport certain 
technology subject to the EAR to any destination, including Canada, 
without a license if at the time of the export or reexport you know the 
item is for use in connection with a foreign maritime nuclear 
propulsion project. This prohibition applies to any technology relating 
to maritime nuclear propulsion plants, their land prototypes, and 
special facilities for their construction, support, or maintenance, 
including any machinery, devices, components, or equipment specifically 
developed or designed for use in such plants or facilities.
    (b) Exceptions. The exceptions provided in part 740 of the EAR do 
not apply to the prohibitions described in paragraph (a) of this 
section.
    (c) License review standards. It is the policy of the United States 
Government not to participate in and not to authorize United States 
firms or individuals to participate in foreign naval nuclear propulsion 
plant projects, except under an Agreement for Cooperation on naval 
nuclear propulsion executed in accordance with Sec. 123(d) of the 
Atomic Energy Act of 1954. However, it is the policy of the United 
States Government to encourage United States firms and individuals to 
participate in maritime (civil) nuclear propulsion plant projects in 
friendly foreign countries provided

[[Page 12805]]
that United States naval nuclear propulsion information is not 
disclosed.


Sec. 744.6  Restrictions on certain activities of U.S. persons.

    (a) General prohibitions--(1) Activities related to exports. (i) No 
U.S. person as defined in paragraph (c) of this section may, without a 
license from BXA, export, reexport, or transfer to or in any country 
other country, any item where that person knows that such item:
    (A) Will be used in the design, development, production, or use of 
nuclear explosive devices in or by a country listed in Country Group 
D:2 (see Supplement No. 1 to part 740 of the EAR).
    (B) Will be used in the design, development, production, or use of 
missiles in or by a country listed in Country Group D:4 (see Supplement 
No. 1 to part 740 of the EAR); or
    (C) Will be used in the design, development, production, 
stockpiling, or use of chemical or biological weapons in or by a 
country listed in Country Group D:3 (see Supplement No. 1 to part 740 
of the EAR).
    (ii) No U.S. person shall, without a license from BXA, knowingly 
support an export, reexport, or transfer that does not have a license 
as required by this section. Support means any action, including 
financing, transportation, and freight forwarding, by which a person 
facilitates an export, reexport, or transfer without being the actual 
exporter or reexporter.
    (2) Other activities unrelated to exports. No U.S. person shall, 
without a license from BXA:
    (i) Perform any contract, service, or employment that the U.S. 
person knows will directly assist in the design, development, 
production, or use of missiles in or by a country listed in Country 
Group D:4 (see Supplement No. 1 to part 740 of the EAR); or
    (ii) Perform any contract, service, or employment that the U.S. 
person knows directly will directly assist in the design, development, 
production, stockpiling, or use of chemical or biological weapons in or 
by a country listed in Country Group D:3 (see Supplement No. 1 to part 
740 of the EAR).
    (3) Whole plant requirement. No U.S. person shall, without a 
license from BXA, participate in the design, construction, export, or 
reexport of a whole plant to make chemical weapons precursors 
identified in ECCN 1C350, in countries other than those listed in 
Country Group A:3 (Australia Group) (See Supplement No. 1 to part 740 
of the EAR).
    (b) Additional prohibitions on U.S. persons informed by BXA. BXA 
may inform U.S. persons, either individually or through amendment to 
the EAR, that a license is required because an activity could involve 
the types of participation and support described in paragraph (a) of 
this section anywhere in the world.
    Specific notice is to be given only by, or at the direction of, the 
Deputy Assistant Secretary for Export Administration. When such notice 
is provided orally, it will be followed by a written notice within two 
working days signed by the Deputy Assistant Secretary for Export 
Administration. However, the absence of any such notification does not 
excuse the exporter from compliance with the license requirements of 
paragraph (a) of this section.
    (c) Definition of U.S. person. For purposes of this section, the 
term U.S. person includes:
    (1) Any individual who is a citizen of the United States, a 
permanent resident alien of the United States, or a protected 
individual as defined by 8 U.S.C. 1324b(a)(3);
    (2) Any juridical person organized under the laws of the United 
States or any jurisdiction within the United States, including foreign 
branches; and
    (3) Any person in the United States.
    (d) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraphs (a) and (b) of this section.
    (e) License review standards. Applications to engage in activities 
otherwise prohibited by this section will be denied if the activities 
would make a material contribution to the design, development, 
production, stockpiling, or use of chemical or biological weapons, or 
of missiles.


Sec. 744.7  Restrictions on certain exports to and for the use of 
certain foreign vessels or aircraft.

    (a) General end-use prohibition. In addition to the license 
requirements for items specified on the CCL, you may not export or 
reexport an item subject to the EAR to, or for the use of, a foreign 
vessel or aircraft, whether an operating vessel or aircraft or one 
under construction, located in any port including a Canadian port, 
unless a License Exception or NLR permits the shipment to be made:
    (1) To the country in which the vessel or aircraft is located, and
    (2) To the country in which the vessel or aircraft is registered, 
or will be registered in the case of a vessel or aircraft under 
construction, and
    (3) To the country, including a national thereof, which is 
currently controlling, leasing, or chartering the vessel or aircraft.
    (b) Exception for U.S. and Canadian carriers.
    (1) Notwithstanding the general end-use prohibition in paragraph 
(a) of this section, export and reexport may be made of the commodities 
described in paragraph (b)(3) of this section, for use by or on a 
specific vessel or plane of U.S. or Canadian registry located at any 
seaport or airport outside the United States or Canada except a port in 
North Korea or Country Group D:1 (excluding the PRC and Romania), (see 
Supplement No. 1 to part 740) provided that such commodities are 6 
all of the following:

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

    (i) Ordered by the person in command or the owner or agent of the 
vessel or plane to which they are consigned;
    (ii) Intended to be used or consumed on board such vessel or plane 
and necessary for its proper operation;
    (iii) In usual and reasonable kinds and quantities during times of 
extreme need, except that usual and reasonable quantities of ship's 
bunkers or aviation fuel are considered to be only that quantity 
necessary for a single onward voyage or flight; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration 
(SED) is filed with the carrier, except that an SED is not required 
when any of the commodities, other than fuel, is exported by U.S. 
airlines to their own aircraft abroad for their use.
    (2) Exports to U.S. or Canadian Airline's Installation or Agent. 
Exports and reexports of the commodities described in paragraph (e) of 
this section, except fuel, may be made to a U.S. or Canadian airline's 
installation or agent in any foreign destination except North Korea or 
Country Group D:1 (excluding the PRC and Romania), (see Supplement No. 
1 to part 740) provided such commodities are all of the following:
    (i) Ordered by a U.S. or Canadian airline and consigned to its own 
installation or agent abroad;
    (ii) Intended for maintenance, repair, or operation of aircraft 
registered in either the United States or Canada, and necessary for the 
aircraft's proper operation, except where such aircraft is located in, 
or owned, operated or controlled by, or leased or chartered to, North 
Korea or Country Group D:1 (excluding the PRC) (see Supplement No. 1 to 
part 740) or a national of such country;
    (iii) In usual and reasonable kinds and quantities; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration 
(SED) is filed with the carrier, except that an

[[Page 12806]]
SED is not required when any of these commodities is exported by U.S. 
airlines to their own installations and agents abroad for use in their 
aircraft operations.
    (3) Applicable commodities. This Sec. 744.7 applies to the 
commodities listed subject to the provisions in paragraph (b) of this 
section:
    (i) Fuel, except crude petroleum and blends of unrefined crude 
petroleum with petroleum products, which is of non-Naval Petroleum 
Reserves origin or derivation (refer to short supply controls in part 
754 of the EAR);
    (ii) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements, except crude petroleum, 
provided that any commodities which are listed in Supplement No. 2 to 
part 754 of the EAR are of non-Naval Petroleum Reserves origin or 
derivation (refer to short supply controls in part 754 of the EAR);
    (iii) Medical and surgical supplies;
    (iv) Food stores;
    (v) Slop chest articles;
    (vi) Saloon stores or supplies; and
    (vii) Equipment and spare parts.


Sec. 744.8  Restrictions on certain exports to all countries for Libyan 
aircraft.

    (a) General end-use prohibition for Libyan aircraft. In addition to 
the license requirements for items specified on the CCL, you may not 
export or reexport to any destination such parts and accessories 
specified in paragraph (b) of this section if intended for use in the 
manufacture, overhaul, or rehabilitation in any country of aircraft 
that will be exported or reexported to Libya or Libyan nationals.
    (b) Scope of products subject to end-use prohibition for Libyan 
aircraft. The general end-use prohibition in paragraph (a) of this 
section applies to items controlled by ECCNs 6A008, 6A108, 6A990, 
7A001, 7A101, 7A002, 7A102, 7A003, 7A103, 7A004, 7A104, 7A006, 7A106, 
7A115, 7A994, 9A001, 9A101, 9A003, 9A018.a, 9A991, and 9A994.

Supplement No. 1 to Part 744--Missile Technology Locations and Projects

------------------------------------------------------------------------
                 Location                             Projects          
------------------------------------------------------------------------
Bahrain                                                                 
Brazil....................................  Sonda III, Sonda IV, SS-300,
                                             SS-1000, MB/EE Series      
                                             Missile, VLS Space Launch  
                                             Vehicle.                   
China.....................................  M Series Missiles, CSS-2.   
Egypt                                                                   
India.....................................  Agni, Prithvi, SLV-3        
                                             Satellite Launch.          
                                            Vehicle, Augmented Satellite
                                             Launch.                    
                                            Vehicle (ASLV), Polar       
                                             Satellite Launch.          
                                            Vehicle (PSLV),             
                                             Geostationary Satellite.   
                                            Launch Vehicle (GSLV).      
Iran......................................  Surface-to-Surface Missile  
                                             Project, Scud Development  
                                             Project.                   
Iraq                                                                    
Israel                                                                  
Jordan                                                                  
North Korea...............................  No Dong I, Scud Development 
                                             Project.                   
Kuwait                                                                  
Lebanon                                                                 
Libya                                                                   
Oman                                                                    
Pakistan..................................  Haft Series Missiles.       
Qatar                                                                   
Saudi Arabia                                                            
South Africa..............................  Surface-to-Surface Missile  
                                             Project, Space Launch      
                                             Vehicle.                   
Syria                                                                   
United Arab Emirates                                                    
Yemen                                                                   
------------------------------------------------------------------------

Supplement No. 2 to Part 744--[Reserved]

Supplement No. 3 to Part 744--Countries Not Subject to Certain Nuclear 
End-Use Restrictions in Sec. 744.2(a)

Australia
Belgium
Denmark
France
Germany
Greece
Iceland
Italy (includes San Marino and Holy See)
Japan
Luxembourg
Netherlands
New Zealand
Norway
Portugal
Spain
Turkey
United Kingdom

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

Sec.
746.1  Introduction.
746.2  Cuba.
746.3  Iraq.
746.4  Libya.
746.5  North Korea.
746.6  Reserved.
746.7  Iran.
746.8  Rwanda.

Supplement No. 1 to Part 746--Special Sanctions on Angola Administered 
by the Office of Foreign Assets Control

Supplement No. 2 to Part 746--United Nations Arms Embargoes 
Administered by the Department of State: Liberia, Somalia and Countries 
of the Former Yugoslavia (Bosnia-Herzegovina, Croatia, Former Yugoslav 
Republic of Macedonia, Serbia and Montenegro, Slovenia)

Supplement No. 3 to Part 746--Controls on the Federal Republic of 
Yugoslavia (Serbia and Montenegro), Bosnia-Herzegovina, Croatia 
Administered by the Office of Foreign Assets Control

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 287c; 22 U.S.C. 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994 
Comp., p. 899; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; 
Notice of August 15, 1995 (60 FR 42767, August 17, 1995).


Sec. 746.1  Introduction.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. This part implements broad based controls 
for items and activities subject to the EAR imposed to implement or 
U.S. government policies. Two categories of controls are included in 
this part.
    (a) Comprehensive controls. This part contains or refers to all the 
BXA licensing requirements, licensing policies, and License Exceptions 
for countries subject to general embargoes, currently Cuba, Libya, 
North Korea, Iran and Iraq. This part is the focal point for all the 
EAR requirements for transactions involving these countries.
    (1) Cuba, Libya, North Korea. All the items on the Commerce Control 
List (CCL) require a license to Cuba, Libya, or North Korea. In 
addition, most other items subject to the EAR, but not included on the 
CCL, designated by the Number ``EAR99'', require a license to Cuba, 
Libya, and North Korea. Most items requiring a license to these 
destinations are subject to a general policy of denial. Because these 
controls extend to virtually all exports, they do not appear in the 
Country Chart in part 738 of the EAR, nor are they reflected in the 
Commerce Control List in part 774 of the EAR.
    (2) Iran and Iraq. While BXA maintains controls on exports and 
reexports to Iran and Iraq, comprehensive embargoes on transactions 
involving these countries are administered by the Department of the 
Treasury's Office of Foreign Assets Control (OFAC).
    (b) Rwanda. The second category of EAR controls apply to Rwanda 
included in this part are those that are supplemental to controls set 
forth in the Country Chart in part 738. Such controls

[[Page 12807]]
are listed under each affected ECCN on the CCL in part 774 of the EAR.
    (c) This part also contains descriptions of controls maintained by 
the Office of Foreign Assets Control in the Treasury Department and by 
Office of Defense Trade Controls in the Department of State. 
Comprehensive embargoes and supplemental controls implemented by BXA 
under the EAR usually also involve controls on items and activities 
maintained by these agencies. This part sets forth the allocation of 
licensing responsibilities between BXA and these other agencies. 
References to the requirements of other agencies are informational; for 
current, complete, and authoritative requirements, you should consult 
the appropriate agency's regulations.
    (d) Supplement No. 1 to this part provides you with general 
information on United Nations sanctions administered by the Department 
of the Treasury's Office of Foreign Assets Control (OFAC) (31 CFR part 
590) on UNITA in Angola.
    (e) Supplement No. 2 to this part provides you with general 
information on United Nations arms embargoes administered by the 
Department of State (22 CFR parts 120 through 130) on all the countries 
of the former Yugoslavia (Bosnia-Herzegovina, Croatia, the Former 
Yugoslav Republic of Macedonia, Serbia, Montenegro, and Slovenia), 
Liberia and Somalia.
    (f) Supplement No. 3 to this part provides you with information on 
embargoes on the Federal Republic of Yugoslavia (Serbia and Montenegro) 
and certain areas of Croatia and Bosnia-Herzegovina administered by 
OFAC (31 CFR part 585).


Sec. 746.2  Cuba.

    (a) License requirements. As authorized by section 6 of the Export 
Administration Act of 1979, as amended (EAA) and by the Trading with 
the Enemy Act of 1917, as amended, you will need a license to export or 
reexport all items subject to the EAR (see part 734 of the EAR for the 
scope of items subject to the EAR) to Cuba, except as follows.
    (1) License Exceptions. You may export without a license if your 
transaction meets all the applicable terms and conditions of any of the 
following License Exceptions. To determine the scope and eligibility 
requirements, you will need to turn to the sections or specific 
paragraphs of part 740 of the EAR (License Exceptions). Read each 
License Exception carefully, as the provisions available for embargoed 
countries are generally narrow.
    (i) Temporary Exports (TEMP) by the news media (see 
Sec. 740.4(a)(2)(viii) of the EAR).
    (ii) Operating Technology and Software (OTS) for legally exported 
commodities (see Sec. 740.8(a) of the EAR).
    (iii) Sales Technology (STS) (see Sec. 740.8(b) of the EAR).
    (iv) Software Updates (SUD) for legally exported software (see 
Sec. 740.8(c) of the EAR).
    (v) Parts (PTS) for one-for-one replacement in certain legally 
exported commodities (see Sec. 740.5(a) of the EAR).
    (vi) Baggage (BAG) (see Sec. 740.9 of the EAR).
    (vii) Governments and international organizations (GOV) (see 
Sec. 740.6 of the EAR).
    (viii) Gift parcels and humanitarian donations (GFT) (see 
Sec. 740.7 of the EAR).
    (ix) Items in transit (TUS) from Canada through the U.S. (see 
Sec. 740.4(b)(1)(iv) of the EAR).
    (x) Aircraft and Vessels (AVS) for certain aircraft on temporary 
sojourn (see Sec. 740.10(a) of the EAR).
    (2) [Reserved.]
    (b) Licensing policy. Items requiring a license are subject to a 
general policy of denial, except as follows:
    (1) Medicines, medical supplies, instruments and equipment. 
Applications to export medicines, medical supplies, instruments and 
equipment will generally be approved, except:
    (i) To the extent restrictions would be permitted under section 
5(m) of the Export Administration Act of 1979, as amended (EAA), or 
section 203(b)(2) of the International Emergency Economic Powers Act;
    (ii) If there is a reasonable likelihood that the item to be 
exported will be used for purposes of torture or other human rights 
abuses;
    (iii) If there is a reasonable likelihood that the item to be 
exported will be reexported;
    (iv) If the item to be exported could be used in the production of 
any biotechnological product; or
    (v) If it is determined that the United States government is unable 
to verify, by on-site inspection or other means, that the item to be 
exported will be used for the purpose for which it was intended and 
only for the use and benefit of the Cuban people, but this exception 
shall not apply to donations of medicines for humanitarian purposes to 
a nongovernmental organization in Cuba.
    (2) Telecommunications commodities may be authorized on a case-by-
case basis, provided the commodities are part of an FCC-approved 
project and are necessary to provide efficient and adequate 
telecommunications services between the United States and Cuba.
    (3) Exports from third countries to Cuba of non-strategic foreign-
made products that contain an insubstantial proportion of U.S.-origin 
materials, parts, or components will generally be considered favorably 
on a case-by-case basis, provided all of the following conditions are 
satisfied:
    (i) The local law requires, or policy favors, trade with Cuba;
    (ii) The U.S.-origin content does not exceed 20 percent of the 
value of the product to be exported from the third country. Requests 
where the U.S.-origin parts, components, or materials represent more 
than 20 percent by value of the foreign-made product will generally be 
denied. See Supplement No. 3 to part 734 of the EAR for instructions on 
how to calculate value; and
    (iii) You are not a U.S.-owned or -controlled entity in a third 
country as defined by OFAC regulations, 31 CFR part 515, or you are a 
U.S.-owned or controlled entity in a third country and one or more of 
the following situations applies:
    (A) You have a contract for the proposed export that was entered 
into prior to October 23, 1992.
    (B) Your transaction involves the export of foreign-produced 
medicine, or medical supplies, instruments, or equipment incorporating 
U.S.-origin parts, components or materials, in which case the 
application will be reviewed according to the provisions of paragraph 
(b)(1) of this section.
    (C) Your transaction is for the export of foreign-produced 
telecommunications commodities incorporating U.S.-origin parts, 
components and materials, in which case the application will be 
reviewed under the licensing policy set forth in paragraph (b)(2) of 
this section.
    (D) Your transaction is for the export of donated food to 
individuals or non-governmental organizations in Cuba and does not 
qualify for the humanitarian License Exception.
    (c) Cuba has been designated by the Secretary of State as a country 
whose government has repeatedly provided support for acts of 
international terrorism. For anti-terrorism controls, see Supplement 2 
to part 742 of the EAR.
    (d) Related controls. OFAC maintains controls on the activities of 
persons subject to U.S. jurisdiction, wherever located, involving 
transactions with Cuba or any specially designated Cuban national, as 
provided in 31 CFR part 515.

[[Page 12808]]



Sec. 746.3  Iraq.

    (a) License requirements. OFAC administers an embargo against Iraq 
under the authority of the International Emergency Economic Powers Act 
of 1977, as amended, and the United Nations Participation Act of 1945, 
as amended, and in conformance with United Nations Security Council 
Resolutions. The applicable OFAC regulations, the Iraqi Sanctions 
Regulations, are found in 31 CFR part 575. You should consult with OFAC 
for authorization to export or reexport items subject to U.S. 
jurisdiction to Iraq, or to any entity owned or controlled by, or 
specially designated as acting for or on behalf of, the Government of 
Iraq. Under the EAR, you need a license to export or reexport to Iraq 
any item on the CCL containing a CB Column 1, CB Column 2, CB Column 3, 
NP Column 1, NP Column 2, NS Column 1, NS Column 2, MT Column 1, RS 
Column 1, RS Column 2, CC Column 1, CC Column 2, CC Column 3 in the 
Country Chart Column of the License Requirements section of an ECCN, or 
classified under ECCNs 1C980, 1C981, 1C982, 1C983, 1C984, 5A980, 0A980, 
and 0A983; however, to avoid duplication, an authorization from OFAC 
constitutes authorization under the EAR, and no separate BXA 
authorization is necessary. Except as noted in Sec. 746.3(a)(1) of this 
part, you may not use any BXA License Exception or other BXA 
authorization to export or reexport to Iraq.
    (1) License Exceptions. You may export or reexport without a 
license if your transaction meets all the applicable terms and 
conditions of one of the following License Exceptions. Read each 
License Exception carefully, as the provisions available for embargoed 
countries are generally narrow.
    (i) Baggage (BAG) (See Sec. 740.9 of the EAR).
    (ii) Governments and international organizations (GOV) (See 
Sec. 740.6 of the EAR).
    (2) Exports for the official use of the United Nations, its 
personnel or agencies (excluding its relief or developmental agencies). 
You must consult with OFAC to determine what transactions are eligible.
    (b) Iraq has been designated by the Secretary of State as a country 
that has repeatedly provided support for acts of international 
terrorism. For anti-terrorism controls, see Supplement 2 to part 742 of 
the EAR.
    (c) Related controls. OFAC maintains controls on the activities of 
U.S. persons, wherever located, involving transactions with Iraq or any 
specially designated Iraqi national, as provided in 31 CFR part 575.


Sec. 746.4  Libya.

    (a) Introduction. The Department of the Treasury and the Department 
of Commerce maintain comprehensive controls on exports and reexports to 
Libya. OFAC maintains comprehensive controls on exports and 
transshipments to Libya under the Libyan Sanctions Regulations (31 CFR 
part 550). To avoid duplicate licensing procedures, OFAC and BXA have 
allocated licensing responsibility as follows: OFAC licenses direct 
exports and transshipments to Libya; BXA licenses reexports, exports of 
foreign-manufactured items containing U.S.-origin parts, components or 
materials, and exports of foreign-produced direct product of U.S. 
technology or software. Issuance of an OFAC license also constitutes 
authorization under the EAR, and no license from BXA is necessary. 
Exports and reexports subject to the EAR that are not subject to the 
Libyan Sanctions Regulations continue to require authorization from 
BXA.
    (b) License requirements--(1) Exports. OFAC and BXA both require a 
license for virtually all exports (including transshipments) to Libya. 
Except as noted in paragraph (b) of this section or specified in OFAC 
regulation, you may not use any BXA License Exception or other BXA 
authorization to export or transship to Libya. You will need a license 
from OFAC for all direct exports and transshipments to Libya except 
those eligible for the following BXA License Exceptions:
    (i) Baggage (BAG) (see Sec. 740.9 of the EAR).
    (ii) Governments and international organizations (GOV) (see 
Sec. 740.6 of the EAR).
    (iii) Gift parcels (GIFT) (see Sec. 740.7(a) of the EAR).
    (2) Reexports. You will need a license from BXA to reexport any 
U.S.-origin item from a third country to Libya, any foreign-
manufactured item containing U.S.-origin parts, components or 
materials, as defined in Sec. 734.2(b)(2) of the EAR, or any national 
security-controlled foreign-produced direct product of U.S. technology 
or software, as defined in Sec. 734.2(b)(3) of the EAR, exported from 
the U.S. after March 12, 1982. You will need a license from BXA to 
reexport all items subject to the EAR (see part 734 of the EAR) to 
Libya, except:
    (i) Food, medicines, medical supplies, and agricultural 
commodities;
    (ii) Reexports eligible for the following License Exceptions (read 
each License Exception carefully, as the provisions available for 
embargoed countries are generally narrow):
    (A) Temporary Exports (TEMP) reexports by the news media (see 
Sec. 740.4(a)(2)(viii) of the EAR).
    (B) Operating Technology and Software (OTS) for legally exported 
commodities (see Sec. 740.8(a) of the EAR).
    (C) Sales Technology (STS) (see Sec. 740.8(b) of the EAR).
    (D) Software Updates (SUD) for legally exported software (see 
Sec. 740.8(c) of the EAR).
    (E) Parts (PTS) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.5(a) of the EAR).
    (F) Baggage (BAG) (Sec. 740.9 of the EAR).
    (G) Aircraft and Vessels (AVS) for vessels only (see 
Sec. 740.10(c)(1) of the EAR).
    (H) Governments and international organizations (GOV) (see 
Sec. 740.6 of the EAR).
    (I) Gift parcels and humanitarian donations (GFT) (see Sec. 740.7 
of the EAR).
    (3) License applications submitted to BXA must provide specific 
answers to the following questions:
    (i) How was the product received at its current location, and under 
what type of authorization;
    (ii) On what date was it received; and
    (iii) How are inventories maintained at the current site?
    (c) Licensing policy. (1) You should consult with OFAC regarding 
licensing policy for transactions subject to OFAC regulation.
    (2) The licensing policy for BXA controls is as follows. Licenses 
will generally be denied for:
    (i) Items controlled for national security purposes and related 
technology and software, including controlled foreign produced products 
of U.S. technology and software exported from the United States after 
March 12, 1982; and
    (ii) Oil and gas equipment and technology and software, if listed 
in paragraph (c)(2)(vii) of this section, or if determined by BXA not 
to be readily available from sources outside the United States; and
    (iii) Commodities, software, and technology destined for the 
petrochemical processing complex at Ras Lanuf, if listed in paragraph 
(c)(2)(vii) of this section, or where such items would contribute 
directly to the development or construction of that complex (items 
destined for the township at Ras Lanuf, or for the public utilities or 
harbor facilities associated with that township, generally will not be 
regarded as making such a contribution where their functions will

[[Page 12809]]
be primarily related to the township, utilities or harbor);
    (iv) Aircraft (including helicopters) or aircraft parts, 
components, or accessories to Libya or the provision of engineering and 
maintenance servicing of Libyan aircraft or aircraft components;
    (v) Arms and related material of all types, including the sale or 
transfer of weapons and ammunition, military vehicles and equipment, 
paramilitary police equipment, spare parts for the aforementioned, and 
equipment or supplies for the manufacture or maintenance of the 
aforementioned.
    (vi) Materials destined for the construction, improvement or 
maintenance of Libyan civilian or military airfields and associated 
facilities and equipment or any engineering or other services or 
components destined for the maintenance of any Libyan civil or military 
airfields or associated facilities and equipment, except emergency 
equipment and equipment and services directly related to civilian air 
traffic control; and
    (vii) Items listed in paragraphs (c)(2)(vii) (A) through (E) and 
equipment and supplies for the manufacture or maintenance of such 
items:
    (A) Pumps of medium or large capacity (equal to or larger than 3500 
cubic meters per hour) and drivers (gas turbines and electric motors) 
designed for use in the transportation of crude oil and natural gas.
    (B) Equipment designed for use in crude oil export terminals, as 
follows:
    (1) Loading buoys or single point moorings;
    (2) Flexible hoses for connection between underwater manifolds 
(plem) and single point mooring and floating loading hoses of large 
sizes (from 12-16 inches); or
    (3) Anchor chains.
    (C) Equipment not specially designed for use in crude oil export 
terminals, but which because of its large capacity can be used for this 
purpose, as follows:
    (1) Loading pumps of large capacity (4000 m \3\/h) and small head 
(10 bars);
    (2) Boosting pumps within the same range of flow rates;
    (3) Inline pipe line inspection tools and cleaning devices (i.e., 
pigging tools) (16 inches and above); or
    (4) Metering equipment of large capacity (1000 m \3\/h and above).
    (D) Refinery equipment, as follows:
    (1) Boilers meeting American Society of Mechanical Engineers 1 
standards;
    (2) Furnaces meeting American Society of Mechanical Engineers 8 
standards;
    (3) Fractionation columns meeting American Society of Mechanical 
Engineers 8 standards;
    (4) Pumps meeting American Petroleum Institute 610 standards;
    (5) Catalytic reactors meeting American Society of Mechanical 
Engineers 8 standards; or
    (6) Prepared catalysts, including catalysts containing platinum and 
catalysts containing molybdenum.
    (E) Spare parts for any of the items described in paragraph 
(c)(2)(vii) of this section.
    (3) Notwithstanding the presumptions of denial in paragraphs (c)(2) 
(i) through (iii), licenses will generally be issued items not included 
in paragraph (c)(2)(iv) through (vii) when the transaction involves:
    (i) The export or reexport of commodities or technology and 
software under a contract in effect prior to March 12, 1982, where 
failure to obtain a license would not excuse performance under the 
contract;
    (ii) Reexport of items not controlled for national security 
purposes that had been exported from the United States prior to March 
12, 1982 or exports of foreign products incorporating such items as 
components; or
    (iii) Incorporation of U.S.-origin parts, components, or materials 
in foreign-manufactured products destined for Libya, where the U.S. 
content is 20 percent or less by value.
    (4) Notwithstanding the presumption of denial in paragraph (c)(2) 
(iv) through (vii), applications for reexports under a contract pre-
dating January 18, 1994, will be reviewed under the licensing policy in 
effect prior to that date.
    (5) Licenses will generally be considered favorably on a case-by-
case basis when the transaction involves the following items, provided 
such items are not included in paragraph (c)(2) (iv) through (vii):
    (i) Reexports of items subject to national security controls that 
were exported prior to March 12, 1982 and exports of foreign products 
incorporating such U.S.-origin components, where the particular 
authorization would not be contrary to specific foreign policy 
objectives of the United States; or
    (ii) Items destined for use in the development or construction of 
the petrochemical processing complex at Ras Lanuf, where the 
transaction could be approved but for the general policy of denial set 
out in paragraph (c)(2)(iii), and where either:
    (A) The transaction involves a contract in effect before December 
20, 1983 that requires export or reexport of the items in question; or
    (B) The items had been exported from the U.S. before that date.
    (iii) Other unusual situations such as transactions involving firms 
with contractual commitments in effect before March 12, 1982.
    (6) Licenses will generally be considered favorably on a case-by-
case basis for the reexport of reasonable quantities for civil use of 
off-highway wheel tractors of carriage capacity of 9t (10 tons) or 
more, as defined in ECCN 9A992, provided such tractors are not for uses 
described in paragraph (c)(2) (iv) through (vi) of this section.
    (7) All other reexports not covered by United Nations resolutions 
will generally be approved, subject to any other licensing policies 
applicable to a particular transaction.
    (e) Libya has been designated by the Secretary of State as a 
country whose government has repeatedly provided support for acts of 
international terrorism. For anti-terrorism controls, see Supplement 2 
to part 742 of the EAR.
    (f) Related controls. OFAC administers broad economic sanctions on 
Libya, and restricts participation by U.S. persons in transactions with 
Libya or specially designated Libyan nationals. The applicable OFAC 
regulations, the Libyan Sanctions Regulations, are found in 31 CFR part 
550.


Sec. 746.5  North Korea.

    (a) License requirements. As authorized by section 6 of the Export 
Administration Act of 1979, as amended (EAA) and by the Trading with 
the Enemy Act of 1917, as amended, you will need a license to export or 
reexport items subject to the EAR (see part 734 of the EAR) to North 
Korea, except as follows:
    (1) License Exceptions. You may export without a license if your 
transaction meets all the applicable terms and conditions of any of the 
License Exceptions specified in this paragraph. To determine scope and 
eligibility requirements, you will need to turn to the sections or 
specific paragraphs of part 740 of the EAR (License Exceptions). Read 
each License Exception carefully, as the provisions available for 
embargoed countries are generally narrow.
    (i) Temporary Exports (TEMP) by the news media (see 
Sec. 740.4(a)(2)(viii) of the EAR).
    (ii) Operating Technology and Software (OTS) for legally exported 
commodities (see Sec. 740.8(a) of the EAR).
    (iii) Sales Technology (STS) (see Sec. 740.8(b) of the EAR).
    
[[Page 12810]]

    (iv) Software Updates (SUD) for legally exported software (see 
Sec. 740.8(c) of the EAR).
    (v) Parts (PTS) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.5(a) of the EAR).
    (vi) Baggage (BAG) (Sec. 740.9 of the EAR).
    (vii) Aircraft and Vessels (AVS) for fishing vessels under 
governing international fishery agreements and foreign-registered 
aircraft on temporary sojourn in the U.S.1 (see Sec. 740.10 (a) 
and (c)(1) of the EAR).

    \1\ Export of U.S. aircraft on temporary sojourn or vessels is 
prohibited, 44 CFR Ch. IV, Part 403 ``Shipping restrictions: North 
Korea (T-2).''
---------------------------------------------------------------------------

    (viii) Governments and international organizations (GOV) (see 
Sec. 740.15 of the EAR).
    (ix) Gift parcels and humanitarian donations (GFT) (see Sec. 740.7 
of the EAR).
    (2) [Reserved]
    (b) Licensing policy. Items requiring a license are subject to a 
general policy of denial. Exceptions to the policy of denial are as 
follows:
    (1) BXA will review on a case-by-case basis applications for export 
of donated human-needs items listed in Supplement No. 2 to Part 740 of 
the EAR that do not qualify for the License Exception NEED (see 
Sec. 740.7(b) of the EAR). Such applications include single 
transactions involving exports to meet emergency needs.
    (2) BXA will review on a case-by-case basis applications for 
commercial sales of human-needs items. Such applications must be for 
items listed in Supplement No. 2 to part 740 of the EAR, but are not 
limited solely to small scale projects at the local level.
    (c) North Korea has been designated by the Secretary of State as a 
country whose government has repeatedly provided support for acts of 
international terrorism. For anti-terrorism controls, see Supplement 2 
to part 742 of the EAR.
    (d) Related controls. OFAC maintains controls on the activities of 
persons subject to U.S. jurisdiction, wherever located, involving 
transactions with North Korea or any specially designated North Korean 
national.


Sec. 746.6  [Reserved]


Sec. 746.7  Iran.

    The Treasury Department's Office of Foreign Assets Control (OFAC) 
administers a comprehensive trade and investment embargo against Iran 
under the authority of the International Emergency Economic Powers Act 
of 1977, as amended, section 505 of the International Security and 
Development Cooperation Act of 1985, and Executive Orders 12957 and 
12959 of March 15, 1995 and May 6, 1995, respectively. This embargo 
includes prohibitions on export and certain reexport transactions 
involving Iran, including transactions dealing with items subject to 
the EAR. (See OFAC's Iranian Transactions Regulations, 31 CFR part 
560.) BXA continues to maintain licensing requirements on exports and 
reexports to Iran under the EAR as described in paragraph (a)(2) of 
this section. No person may export or reexport items subject to both 
the EAR and OFAC's Iranian Transactions Regulations without prior OFAC 
authorization.
    (a) License requirements.
    (1) OFAC administered embargo. You should consult with OFAC if:
    (i) You seek authorization to export from the United States; or
    (ii) You are a United States person (as defined in OFAC's Iranian 
Transactions Regulations, 31 CFR part 560) and seek authorization to 
export or reexport from a third country; or
    (iii) You seek authorization to reexport U.S.-origin items that 
were subject to any export license application requirements prior to 
Executive Order 12959 of May 6, 1995.
    (2) BXA license requirements. A license is required under the EAR:
    (i) To export to Iran any item on the CCL containing a CB Column 1, 
CB Column 2, CB Column 3, NP Column 1, NP Column 2, NS Column 1, NS 
Column 2, MT Column 1, RS Column 1, RS Column 2, CC Column 1, CC Column 
2, CC Column 3, AT Column 1 or AT Column 2 in the Country Chart Column 
of the License Requirements section of an ECCN, or classified under 
ECCNs 1C980, 1C981, 1C982, 1C983, 1C984, 5A980, 0A980, and 0A983; or
    (ii) To reexport to Iran any of the items identified in 
Sec. 746.7(a)(2)(i), except for ECCNs 2A994, 3A993, 5A992, 5A995, 
6A990, 6A994, 7A994, 8A992, 8A994, 9A990, 9A992, or 9A994. However, the 
export of these items from the United States to any destination with 
knowledge that they will be reexported, in whole or in part, to Iran, 
is prohibited without a license; or
    (iii) To export or reexport items subject to the general 
prohibitions, including proliferation end-use prohibitions (see part 
736 of the EAR).
    (3) BXA authorization. To avoid duplication, exporters or 
reexporters are not required to seek separate authorization from BXA 
for an export or reexport subject both to the EAR and to OFAC's Iranian 
Transactions Regulations. Therefore, if OFAC authorizes an export or 
reexport, no separate authorization from BXA is necessary.
    (4) Definitions. For purposes of this section, the term ``United 
States person'' means any United States citizen, permanent resident 
alien, entity organized under the laws of the United States (including 
foreign branches), or any person in the United States; the term 
``foreign person'' means those not defined as United States persons.
    (b) Iran has been designated by the Secretary of State as a country 
that has repeatedly provided support for acts of international 
terrorism. For anti-terrorism controls, see Sec. 742.8 of the EAR and 
Supplement 2 to part 742.


Sec. 746.8  Rwanda.

    (a) Introduction. In addition to the controls on Rwanda reflected 
on the Country Chart in Supplement 1 to part 738 of the EAR, there are 
special controls on items that fall within the scope of a United 
Nations Security Council arms embargo.
    (b) License requirements. (1) Under Executive Order 12918 of May 
26, 1994, and in conformity with United Nations Security Council (UNSC) 
Resolution 918 of May 17, 1994, an embargo applies to the sale or 
supply to Rwanda of arms and related materiel of all types and 
regardless of origin, including weapons and ammunition, military 
vehicles and equipment, paramilitary police equipment, and spare parts 
for such items. You will therefore need a license for the sale, supply 
or export to Rwanda of embargoed items, as listed in paragraph 
(b)(1)(i) and (ii) of this section, from the territory of the United 
States by any person. You will also need a license for the export, 
reexport, sale or supply to Rwanda of such items by any United States 
person in any foreign country or other location. (Reexport controls 
imposed by this embargo apply only to reexports by U.S. persons.) You 
will also need a license for the use of any U.S.-registered aircraft or 
vessel to supply or transport to Rwanda any such items. These 
requirements apply to embargoed items, regardless of origin.
    (i) Crime Control and Detection Equipment as identified on the CCL 
under CC Columns No. 1, 2 or 3 in the Country Chart column of the 
``License Requirements'' section of the applicable ECCN.
    (ii) Items described by any ECCN ending in ``18,'' and items 
described by ECCNs 1A988, 2B985, 5A980, 6A002.a.1,a.2,a.3 and c, 
6A003.b.3 and b.4, 6D102, 6E001, 6E002, 9A115, 9A991.a, 09A84, 0A986, 
and 0A988.
    (2) This embargo became effective at 11:59 p.m. EDT on May 26, 
1994.

[[Page 12811]]

    (3) Definitions. For the purposes of this section, the term:
    (i) Person means a natural person as well as a corporation, 
business association, partnership, society, trust, or any other entity, 
organization or group, including governmental entities; and
    (ii) United States person means any citizen or national of the 
United States, any lawful permanent resident of the United States, or 
any corporation, business association, partnership, society, trust, or 
any other entity, organization or group, including governmental 
entities, organized under the laws of the United States (including 
foreign branches).
    (c) Licensing policy. Applications for export or reexport of all 
items listed in paragraphs (b)(1)(i) and (ii) of this section are 
subject to a general policy of denial. Consistent with United Nations 
Security Council Resolution 918 and the United Nations Participation 
Act, this embargo is effective notwithstanding the existence of any 
rights or obligations conferred or imposed by any international 
agreement or any contract entered into or any license or permit granted 
prior to that date, except to the extent provided in regulations, 
orders, directives or licenses that may be issued in the future under 
Executive Order 12918 or under the EAR.
    (d) Related controls. The Department of State, Office of Defense 
Trade Controls, maintains controls on arms and military equipment under 
the International Traffic in Arms Regulations (22 CFR parts 120 through 
130).

Supplement 1 to Part 746--Special Sanctions on Angola Administered by 
the Office of Foreign Assets Control

    (a) Angola. BXA maintains controls on Angola as reflected on the 
Country Chart in Supplement 1 to part 738 of the EAR. (See also 
Sec. 746.7 of this part.) In addition, OFAC administers sanctions 
against the National Union for the Total Independence of Angola 
(UNITA). Under Executive Order 12865 of September 26, 1993, and 
consistent with United Nations Security Council Resolution 864 of 
September 15, 1993, OFAC administers an embargo on the sale or 
supply of arms and related materiel of all types, including weapons 
and ammunition, military vehicles and equipment and spare parts, and 
petroleum and petroleum products to:
    (1) UNITA; or
    (2) The territory of Angola, other than through points of entry 
designated by the Secretary of the Treasury, in the following 
schedule:
    (i) Airports:

(A) Luanda; or
(B) Katumbela, Benguela Province.

    (ii) Ports:

(A) Luanda;
(B) Lobito, Benguela Province; or
(C) Namibe, Namibe Province.

    (iii) Entry Points:

(A) Malongo, Cabinda.
(B) Reserved.

    (b) Exporters should apply to OFAC for authorization to export 
embargoed items to UNITA or to points of entry not designated by the 
Secretary of the Treasury. Exports of embargoed items that are also 
controlled on the CCL to end-users other than UNITA and to points of 
entry designated by the Secretary of the Treasury continue to 
require a license from BXA. In addition, all other items controlled 
on the CCL to Angola continue to require a license from BXA.

Supplement 2 to Part 746--United Nations Arms Embargoes Administered by 
the Department of State: Liberia, Somalia, and Countries of the Former 
Yugoslavia (Bosnia-Herzegovina, Croatia, Former Yugoslav Republic of 
Macedonia, Serbia and Montenegro, Slovenia)

    (a) Former Socialist Federal Republic of Yugoslavia (Bosnia-
Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, 
Serbia and Montenegro, and Slovenia). The Department of State 
administers an embargo on all weapons and military equipment, 
consistent with United Nations Security Council Resolution 713 of 
September 25, 1991, to the countries of the former Socialist Federal 
Republic of Yugoslavia (Bosnia-Herzegovina, Croatia, the Former 
Yugoslav Republic of Macedonia, Serbia and Montenegro, and 
Slovenia). Exporters are advised to consult with the Department of 
State, Office of Defense Trade Controls (22 CFR parts 120 through 
130), regarding exports of weapons and military equipment to these 
destinations.
    (b) Liberia. The Department of State administers an embargo on 
all weapons and military equipment to Liberia, consistent with 
United Nations Security Council Resolution 788 of November 19, 1992. 
Exporters are advised to consult with the Department of State, 
Office of Defense Trade Controls (22 CFR parts 120 through 130), 
regarding exports of weapons and military equipment.
    (c) Somalia. The Department of State administers an embargo on 
all weapons and military equipment to Somalia, consistent with 
United Nations Security Council Resolution 733 of February 23, 1992. 
Exporters are advised to consult with the Department of State, 
Office of Defense Trade Controls (22 CFR parts 120 through 130), 
regarding exports of weapons and military equipment.

Supplement No. 3 to Part 746--Controls on the Federal Republic of 
Yugoslavia (Serbia and Montenegro), Bosnia-Herzegovina, Croatia 
Administered by the Office of Foreign Assets Control

    Note: OFAC administers a comprehensive embargo on the Federal 
Republic of Yugoslavia (Serbia and Montenegro), certain areas of 
Croatia, and Bosnian Serb-controlled areas of the Republic of 
Bosnia-Herzegovina. Effective January 16, 1996, OFAC suspended the 
application of sanctions on Croatia and Serbia and Montenegro. 
Therefore, exporters should consult the Country Chart in Supplement 
No. 1 to part 738 of the EAR for BXA controls. OFAC controls on 
Bosnian Serb-controlled area of Bosnia-Herzegovina remain in effect. 
(See amendment to the Federal Republic of Yugoslavia (Serbia and 
Montenegro) and Bosnian Serb-Controlled Areas of the Republic of 
Bosnia and Herzegovina Sanctions Regulations in the Federal Register 
of January 19, 1996 (61 FR 1282) (31 CFR part 585).) This suspension 
affects paragraphs (a) and (c) of this Supplement.

    (a) Federal Republic of Yugoslavia (Serbia & Montenegro). OFAC 
administers an embargo on exports and reexports to the Federal 
Republic of Yugoslavia (Serbia and Montenegro) (FRY(S & M)). OFAC 
administers this embargo under Executive Orders 12808 of May 30, 
1992, 12810 of June 5, 1992, 12831 of January 15, 1993, 12846 of 
April 25, 1993, and 12934 of October 25, 1994, and consistent with 
United Nations Security Council Resolutions 757 of May 30, 1992, 787 
of November 16, 1992, 820 of April 17, 1993, and 942 of September 
23, 1994. Under this embargo, no items subject to U.S. jurisdiction 
may be exported, directly or indirectly, to the FRY (S & M), or to 
any entity operated from the FRY (S & M), or owned or controlled by, 
or specially designated as acting for or on behalf of the Government 
of the FRY (S & M). The applicable OFAC regulations, the Federal 
Republic of Yugoslavia (Serbia and Montenegro) Sanctions 
Regulations, are found in 31 CFR part 585. Exporters should apply to 
OFAC for authorization to export or reexport items subject to the 
EAR to the FRY (S & M). An authorization from OFAC constitutes 
authorization under the EAR, and no BXA license is necessary.
    (b) Bosnia-Herzegovina. (1) BXA maintains the controls reflected 
on the Country Chart in Supplement 1 to part 738 of the EAR on 
Bosnia-Herzegovina, except to the extent OFAC maintains controls on 
exports or reexports to that country.
    (2) OFAC maintains a comprehensive embargo on trade, including 
exports from the United States or by U.S. persons to, or through, 
those areas of the Republic of Bosnia-Herzegovina under the control 
of the Bosnian Serb forces, or activity of any kind that promotes or 
is intended to promote such dealing. OFAC maintains this embargo 
under Executive Orders 12846 of April 25, 1993 and 12934 of October 
25, 1994, and consistent with United Nations Security Council 
Resolutions 820 of April 17, 1993 and 942 of September 23, 1994. The 
applicable OFAC regulations, the Federal Republic of Yugoslavia 
(Serbia and Montenegro) Sanctions Regulations, are found in 31 CFR 
part 585. U.S. persons should apply to OFAC for authorization to 
engage in trade-related transactions involving those areas of the 
Republic of Bosnia-Herzegovina under the control of the Bosnian Serb 
forces. An authorization from OFAC constitutes authorization under 
the EAR, and no BXA license is necessary. You will need a license 
from BXA for items controlled on the CCL to

[[Page 12812]]
Bosnia-Herzegovina when the export or reexport is destined to areas 
in the Republic of Bosnia-Herzegovina not controlled by the Bosnian 
Serb forces. You may need a license from BXA to reexport U.S.-origin 
items from third countries to areas of the Republic of Bosnia-
Herzegovina under the control of the Bosnian Serb forces.
    (c) Croatia. (1) BXA maintains the controls reflected on the 
Country Chart in Supplement 1 to part 738 of the EAR on Croatia, 
except to the extent OFAC maintains controls on exports or reexports 
to that country.
    (2) OFAC prohibits any dealing by a U.S. person relating to the 
export to, or transshipment through, the United Nations Protected 
Areas in the Republic of Croatia. OFAC maintains this embargo under 
Executive Order 12846 of April 25, 1993, and consistent with United 
Nations Security Council Resolution 820 of April 17, 1993. The 
applicable OFAC regulations, the Federal Republic of Yugoslavia 
(Serbia and Montenegro) Sanctions Regulations, are found in 31 CFR 
part 585. U.S. persons should apply to OFAC for authorization to 
engage in trade-related transactions involving the United Nations 
Protected Areas in the Republic of Croatia. An authorization from 
OFAC constitutes authorization under the EAR, and no BXA license is 
necessary. You will need a license from BXA for items controlled on 
the CCL to Croatia when the export or reexport is destined to areas 
other than the United Nations Protected Areas in the Republic of 
Croatia. Foreign persons may need a license from BXA to reexport 
U.S.-origin items from third countries to the United Nations 
Protected Areas in the Republic of Croatia.

PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND 
DOCUMENTATION

Sec.
748.1  General provisions.
748.2  Obtaining forms; mailing addresses.
748.3  Classification and Advisory Opinions.
748.4  Basic guidance related to applying for a license.
748.5  Parties to the transaction on a license application.
748.6  General instructions for license applications.
748.7  Applying electronically for a license or Classification 
request.
748.8  Unique license application requirements.
748.9  Support documents for license applications.
748.10  Import and End-User Certificates.
748.11  Statement by Ultimate Consignee and Purchaser.
748.12  Special provisions for support documents.
748.13  Delivery Verification.

Supplement No. 1 to Part 748--BXA-748P, BXA-748P-A; Item Appendix, and 
BXA-748P-B; End-User Appendix, Multipurpose Applicaiton Instructions

Supplement No. 2 to Part 748--Unique License Application Requirements

Supplement No. 3 to part 748--BXA-711, Statement by Ultimate Consignee 
and Purchaser Instructions

Supplement No. 4 to Part 748--Authorities Administering Import 
Certificate/Delivery Verification (IC/DV) and End Use Certificate 
Systems in Foreign Countries

Supplement No. 5 to Part 748--U.S. Import Certificate and Delivery 
Verification Procedure

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 748.1  General provisions.

    (a) Scope. In this part, references to the EAR are references to 15 
CFR chapter VII, subchapter C. The provisions of this part involve 
applications, whether submitted in writing or electronically, for 
classifications, advisory opinions or licenses subject to the Export 
Administration Regulations (EAR). All terms, conditions, provisions, 
and instructions, including the applicant and consignee certifications, 
contained in such form(s) are incorporated as part of the EAR. For the 
purposes of this part, the term ``application'' refers to the Form BXA-
748P: Multipurpose Application or its electronic equivalent. If a 
provision contained in this part relates solely to a license 
application the term ``license application'' will appear.
    (b) BXA responses. BXA will give a formal classification, advisory 
opinion or licensing decision only through the review of a properly 
completed application supported by all relevant facts and required 
documentation submitted in writing or electronically to BXA.
    (c) Confidentiality. Consistent with section 12(c) of the Export 
Administration Act, as amended, information obtained for the purposes 
of considering license applications, and other information obtained by 
the U.S. Department of Commerce concerning license applications, will 
not be made available to the public without the approval of the 
Secretary of Commerce.


Sec. 748.2  Obtaining forms; mailing addresses.

    (a) You may obtain the forms required by the EAR from any U.S. 
Department of Commerce District Office; or in person or by telephone or 
facsimile from the following BXA offices:

Export Counseling Division

U.S. Department of Commerce, 14th Street and Pennsylvania Ave., 
N.W., Room H1099D, Washington, D.C. 20230, Telephone Number: (202) 
482-4811, Facsimile Number: (202) 482-3617,

Western Regional Offices:

3300 Irvine Avenue, Ste. 345, Newport Beach, CA 92660, Telephone 
Number: (714) 660-0144, Facsimile Number: (714) 660-9347,
5201 Great America Pkwy, Ste. 226, Santa Clara, CA 95054, Telephone 
Number: (408) 748-7450, Facsimile Number: (408) 748-7470

    (b) For the convenience of foreign consignees and other foreign 
parties, certain BXA forms may be obtained at U.S. Embassies and 
Consulates throughout the world.
    (c) All applications should be mailed to the following address, 
unless otherwise specified: Bureau of Export Administration, U.S. 
Department of Commerce, P.O. Box 273, Washington, D.C. 20044. If you 
wish to submit your application using an overnight courier, use the 
following address: Bureau of Export Administration, U.S. Department of 
Commerce, 14th Street and Pennsylvania Avenue N.W., Room 2705, 
Washington, D.C. 20044, Attn: ``Application Enclosed''. BXA will not 
accept applications sent C.O.D.


Sec. 748.3  Classification and Advisory Opinions.

    (a) Introduction. In light of your responsibility to classify your 
item, you may ask BXA to provide you with the correct Export Control 
Classification Number (ECCN) to the paragraph (or subparagraph if 
appropriate). BXA will advise you whether or not your item is subject 
to the EAR and, if applicable, the appropriate ECCN. This type of 
request is commonly referred to as a ``Classification Request''. If 
requested, for a given end-use, end-user, and/or destination, BXA will 
advise you whether a license is required, or likely to be granted, for 
a particular transaction. Note that these responses do not bind BXA to 
issuing a license in the future. This type of request, along with 
requests for guidance regarding other interpretations of the EAR are 
commonly referred to as ``Advisory Opinions''.
    (b) Classification requests. You must submit your Classification 
Request using Form BXA-748P or its electronic equivalent. See the 
instructions contained in Supplement No. 1 to part 748 to complete the 
Blocks identified for this type of request. Classification Requests 
must be sent to BXA at one of the addresses listed in Sec. 748.2(c) of 
this part or submitted electronically. Be

[[Page 12813]]
certain that your request is complete and does not omit any essential 
information.
    (1) Each Classification Request must be limited to 5 items. 
Exceptions may be granted by BXA on a case-by-case basis for several 
related items if the relationship between the items is satisfactorily 
substantiated in the request. Classification requests must be supported 
by any descriptive literature, brochures, precise technical 
specifications or papers that describe the items in sufficient 
technical detail to enable classification by BXA.
    (2) You must complete Blocks 1 through 5, 14, 22(b)(c)(d) and (i) 
(enter your recommended classification information in these blocks), 24 
and 25 on the application when submitting a Classification request. If 
you are requesting BXA to classify an item for which precise 
specifications are identified in Sec. 748.8 of this part, these 
specifications must be addressed in, or attached to, your application. 
Consult Sec. 738.2 of the EAR for guidance on classifying items on the 
Commerce Control List.
    (c) Advisory Opinions. Advisory Opinions must be submitted in 
writing to the address listed in Sec. 748.2(c) of the EAR. Both your 
letter and envelope must be marked ``Advisory Opinion.''
    (1) Your letter must contain the following information if you are 
requesting guidance regarding interpretations of the EAR:
    (i) The name, title, and telephone and facsimile numbers of the 
person to contact,
    (ii) Your complete address comprised of street address, city, 
state, country, and postal code; and
    (2) If you are requesting BXA to determine whether a license is 
required, or the licensing policy related to a particular end-use, end-
user, and/or destination, in addition to the information required in 
Sec. 748.3(c)(1) you must also include:
    (i) All available information on the parties to the transaction and 
the proposed end-use or end-user,
    (ii) The model number for each item, where appropriate,
    (iii) The Export Control Classification Number, if known, for each 
item; and
    (iv) Any descriptive literature, brochures, technical 
specifications or papers that describe the items in sufficient 
technical detail to enable BXA to verify the correct classification.


Sec. 748.4  Basic guidance related to applying for a license.

    (a) Disclosure and substantiation of facts on license applications. 
You, as the applicant, are required to make the complete disclosure of 
all parties in interest to the transaction so that BXA may decide on 
the license application with the fullest knowledge of all relevant 
facts. If the license application is filed for an account other than 
that of the applicant, the agent, as applicant must disclose the name 
of the agent's principal. Where there is any doubt as to which of 
several persons should be named as a party to the license, you must 
disclose the names of all such persons and the functions to be 
performed by each in Block 24 on your application or an attachment to 
your license application.
    (b) Applications for the export of items from the United States. A 
license application to export items from the United States may be made 
only by a person subject to the jurisdiction of the United States who 
is in fact the exporter, or by the applicant's duly authorized agent. 
This limitation does not apply to applications for the reexport of 
items previously exported. An application may be made on behalf of a 
person not subject to the jurisdiction of the United States by an 
authorized agent in the United States, who then becomes the applicant.
    (c) Prohibited from applying for a license. No person convicted of 
a violation of any statute specified in section 11(h) of the Export 
Administration Act, as amended, at the discretion of the Secretary of 
Commerce, may apply for any license for a period up to 10 years from 
the date of the conviction. See Sec. 766.25 of the EAR.
    (d) Prior action on a shipment. If you have obtained a license 
without disclosure of the facts described in this section, the license 
will be deemed to have been obtained without disclosure of all facts 
material to the granting of the license and the license so obtained 
will be deemed void. See part 764 of the EAR for other sanctions that 
may result in the event a violation occurs.
    (1) Licenses for items subject to detention or seizure. If you 
submit a license application for items that you know have been detained 
or seized by the Office of Export Enforcement or by the U.S. Customs 
Service, you must disclose this fact to BXA when you submit your 
license application.
    (2) Licenses for items previously exported. You may not submit a 
license application to BXA covering a shipment that is already laden 
aboard the exporting carrier, exported or reexported. If such export or 
reexport should not have been made without first securing a license 
authorizing the shipment, you must send a letter of explanation to the 
Office of Export Enforcement, U.S. Department of Commerce, 14th and 
Pennsylvania Avenue, N.W., H4520, Washington, D.C., 20230. The letter 
must state why a license was not obtained and disclose all facts 
concerning the shipment that would normally have been disclosed on the 
license application. You will be informed of any action and furnished 
any instructions by the Office of Export Enforcement.
    (e) Multiple shipments. Your license application need not be 
limited to a single shipment, but may represent a reasonable estimate 
of items to be shipped throughout the validity of the license. Do not 
wait until the license you are using expires before submitting a new 
application. You may submit a new application prior to the expiration 
of your current license in order to ensure uninterrupted shipping.
    (f) Second application. You may not submit a second license 
application covering the same proposed transaction while the first is 
pending action by BXA.
    (g) Resubmission. If a license application is returned without 
action to you by BXA or your application represents a transaction 
previously denied by BXA, and you want to resubmit the license 
application, a new license application must be completed in accordance 
with the instructions contained in Supplement No. 1 to part 748. Cite 
the Application Control Number on your original application in Block 24 
on the new license application.
    (h) Emergency processing. If you believe an emergency situation 
beyond your control necessitates expedited processing of your license 
application, you should contact BXA's Exporter Counseling Division of 
the Office of Exporter Services. This office may be reached by 
telephone on (202) 482-4811 or by facsimile on (202) 482-3617. These 
procedures do not apply to emergency handling of Special Comprehensive 
License applications.
    (1) How to request emergency handling. If your license application 
is already pending with BXA, contact the Exporter Counseling Division 
directly on either number listed in paragraph (h) of this section. If 
you have not yet submitted your license application, include a written 
letter with the title ``Emergency Handling Request'' with your license 
application. The letter must include:
    (i) A justification for the request, supported, where appropriate, 
with copies of orders, communications, or other documentation to 
substantiate that your request constitutes a valid emergency. You may 
be specifically requested to supply other documents not included with 
your submission.

[[Page 12814]]

    (ii) An acknowledgement by you that any license issued under these 
emergency procedures will have a limited validity period as described 
in Sec. 750.7(g) of the EAR, and that it generally will not be 
extended.
    (2) Prompt delivery of emergency handling requests. You are 
responsible for prompt delivery of your request and license application 
to BXA. You may hand-carry your request and license application or use 
the services of an overnight courier to ensure prompt delivery. If you 
desire to hand-carry your request and license application, you may hand 
deliver it to the Exporter Counseling Division at the address stated in 
Sec. 748.2(a) of this part. If you decide to use an overnight courier, 
use the address listed in Sec. 748.2(c) of this part. The envelope 
containing your license application should be labeled ``Attn: Exporter 
Counseling Division, Emergency Handling Request Enclosed''.
    (3) Review of emergency handling requests. BXA views an emergency 
as an unforeseeable situation over which you have no control. On the 
day of receipt, BXA will evaluate your license application and decide 
whether emergency handling is warranted. Frequent emergency request 
will be given particularly close scrutiny. This procedure is not 
designed to become a substitute for timely filing of license 
applications.
    (4) Action on license applications processed under emergency 
procedures. If you have submitted an emergency request, you will be 
contacted by the Exporter Counseling Division informing you of whether 
or not your request for emergency processing has been granted. If your 
license is approved under emergency handling procedures, you will be 
notified by BXA of the approval by telephone or in person. You will be 
given the license number and verbal authorization to effect shipment 
immediately, without waiting for the actual license. Any license 
approved under these emergency handling procedures will have a limited 
validity period as described in Sec. 750.7(g) of the EAR.


Sec. 748.5  Parties to the transaction on a license application.

    (a) Applicant. (1) The ``applicant'' is defined as the person who, 
as the principal party in interest in the transaction, has the power 
and responsibility for determining and controlling the exporting or 
reexporting of the items. BXA is primarily concerned with the identity 
of the applicant and the applicant's role in the transaction, and not 
the terms of sale.
    (2) Ordinarily, a seller who delivers items in the United States to 
a foreign buyer, or to the latter's forwarder or other agent, would not 
be in a position to assume responsibility for the export and would not 
be a proper applicant. This would normally be the situation where sale 
is made f.o.b. factory, although such terms of sale may relate only to 
price and are not necessarily inconsistent with the assumption by the 
seller of full responsibility for effecting the export or reexport. The 
seller can still be liable if the seller knows that the importer or its 
agent will not obtain the required license.
    (3) If the seller intends to leave the responsibility for effecting 
an export or reexport in the hands of the foreign importer or the 
latter's forwarding or purchasing agent in the United States, the 
foreign importer should apply for the license in the foreign importer's 
own name if the foreign importer is subject to the jurisdiction of the 
United States at the time of export. Otherwise, the importer's 
forwarding or purchasing agent or other person subject to the 
jurisdiction of the U.S. must appear as applicant and exporter. In this 
situation you, as the applicant, must disclose your role as agent and 
the name of your principal.
    (b) Order party. The order party is that person in the United 
States who conducted the direct negotiations or correspondence with the 
foreign purchaser or ultimate consignee and who, as a result of these 
negotiations, received the order from the foreign purchaser or ultimate 
consignee.
    (c) Purchaser. The purchaser is that person abroad who has entered 
into the transaction with the applicant to purchase an item for 
delivery to the ultimate consignee. A bank, freight forwarder, 
forwarding agent, or other intermediary is not the purchaser. The 
purchaser and ultimate consignee may be the same entity.
    (d) Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter or reexporter, the purchaser, or 
the ultimate consignee, for the purpose of effecting delivery of the 
export or reexport to the ultimate consignee.
    (e) Ultimate consignee. The ultimate consignee is the person 
located abroad who is the true party in interest in actually receiving 
the export for the designated end-use. A bank, freight forwarder, 
forwarding agent, or other party, when acting as an intermediary, is 
not acceptable as the ultimate consignee.


Sec. 748.6  General instructions for license applications.

    (a) Form and instructions. An application for license, whether to 
export or reexport, must be submitted on Form BXA-748P, Multipurpose 
Application (revised June 15, 1996 or later), and Form BXA-748P-A, Item 
Appendix, and Form BXA-748P-B, End-User Appendix. Facsimiles or copies 
of these forms are not acceptable. Instructions for preparing Form BXA-
748P are contained in Supplement No. 1 to this part 748. See 
Sec. 748.7(a) of this part for instructions on submitting license 
applications electronically.
    (b) Application Control Number. Each application form includes a 
preprinted Application Control Number. The Application Control Number, 
consisting of a letter followed by six digits, is for use by BXA when 
processing applications, and by applicants when communicating with BXA 
concerning pending applications. This number is used for tracking 
purposes within the U.S. Government. The Application Control Number is 
not a license number.
    (c) Approval or denial in entirety. License applications may be 
approved in whole or in part, denied in whole or in part, or returned 
without action. However, you may specifically request that your license 
application be considered as a whole and either approved or denied in 
its entirety.
    (d) Combining items on license applications. Any items may be 
combined on a single application, however, if the items differ 
dramatically (e.g., computers and shotguns) the number of BXA offices 
to which a license application may be referred for review may increase 
significantly. Accordingly, it is recommended that you limit items on 
each license application to those that are similar and/or related.
    (e) Assembly and additional information. All documents or 
correspondence accompanying your license application should bear the 
Application Control Number, and be stapled together. Where necessary, 
BXA may require you to submit additional information beyond that stated 
in the EAR confirming or amplifying information contained in your 
license application.
    (f) Changes in facts. Answers to all items on the license 
application will be deemed to be continuing representations of the 
existing facts or circumstances. Any material or substantive change in 
the terms of the order, or in the facts relating to the transaction, 
must be promptly reported to BXA, whether a license has been granted or 
the license application is still

[[Page 12815]]
under consideration. If a license has been granted and such changes are 
not excepted in Sec. 750.7(c) of the EAR, they must be reported 
immediately to BXA, even though shipments against the license may be 
partially or wholly completed, during the validity period of the 
license.
    (g) Request for extended license validity period. An extended 
validity period will generally be granted if your transaction is 
related to a multi-year project, when production lead time will not 
permit export or reexport during the normal validity period or for 
other similar circumstances. A continuing requirement to supply spare 
or replacement parts will not normally justify an extended validity 
period. To request an extended validity period, include justification 
for your request in Block 24 on the application.


Sec. 748.7  Applying electronically for a license or Classification 
request.

    (a) Authorization. You may apply electronically once you have been 
authorized to do so by BXA. An authorization to submit applications 
electronically may be limited or withdrawn by BXA at any time. There 
are no prerequisites for obtaining permission to submit electronically 
or limitations in terms of country eligibility. However, BXA may direct 
for any reason that any electronic application be resubmitted in 
writing, in whole or in part
    (1) Requesting approval to submit applications electronically. To 
submit applications electronically, your company must submit a written 
request to BXA at one of the addresses identified in Sec. 748.2(c) of 
this part. Both the envelope and letter must be marked ``Attn: 
Electronic Submission Request''. Your letter must contain your 
company's name, and the address, telephone number, and name of the 
principal contact person in your company. Before approving your 
request, BXA will provide you with language for a number of required 
certifications. Once you have completed the necessary certifications, 
you may be approved by BXA to submit applications electronically.
    (2) Assignment and use of company and personal identification 
numbers. (i) Each company granted permission to submit applications 
electronically will be assigned a company identification number. Each 
person approved by BXA to submit applications electronically for the 
company will be assigned a personal identification number (``PIN'') 
telephonically by BXA. A PIN will be assigned to you only if your 
company has certified to BXA that you are authorized to act for it in 
making electronic submissions under the EAR.
    (ii) Your company may reveal the assigned company identification 
number only to the PIN holders, their supervisors, employees, or agents 
of the company with a commercial justification for knowing the company 
identification number.
    (iii) An individual PIN holder may not:
    (A) Disclose the PIN to anyone;
    (B) Record the PIN either in writing or electronically;
    (C) Authorize another person to use the PIN; or
    (D) Use the PIN following termination by BXA or your company of 
your authorization or approval for PIN use.
    (iv) To prevent misuse of the PIN:
    (A) If a PIN is lost, stolen or otherwise compromised, the company 
and the PIN holder must report the loss, theft or compromise of the PIN 
immediately by telephoning BXA at (202) 482-0436. You must confirm this 
notification in writing within two business days to BXA at the address 
provided in Sec. 748.2(c) of this part.
    (B) Your company is responsible for immediately notifying BXA 
whenever a PIN holder leaves the employ of the company or otherwise 
ceases to be authorized by the company to submit applications 
electronically on its behalf.
    (v) No person may use, copy, steal or otherwise compromise a PIN 
assigned to another person; and no person may use, copy, steal or 
otherwise compromise the company identification number where the 
company has not authorized such person to have access to the number.
    (b) Electronic submission of applications. (1) All applications. 
Upon submission of the required certifications and approval of the 
company's request to use electronic submission, BXA will provide 
instructions both on the method to transmit applications electronically 
and the process for submitting required supporting documents and 
technical specifications. These instructions may be modified by BXA 
from time to time.
    (2) License Applications. The electronic submission of an 
application for license will constitute an export control document. 
Such submissions must provide the same information as written 
applications and are subject to the recordkeeping provisions of part 
762 of the EAR. The applicant company and PIN holder submitting the 
application will be deemed to make all representations and 
certifications as if the submission were made in writing by the company 
and signed by the submitting PIN holder. Electronic submission of a 
license application will be considered complete upon the transmittal of 
the application to BXA or to an entity under contract to receive such 
applications for BXA.
    (c) Maintenance of a log. Your company must maintain a log, either 
manually or electronically, specifying the date and time of each 
electronic submission, the ECCNs of items on each electronic 
submission, and the name of the employee or agent submitting the 
license application. This log may not be altered. Written corrections 
must be made in a manner that does not erase or cover original entries. 
If the log is maintained electronically, corrections may only be made 
as notations.
    (d) Updating. An applicant company must promptly notify BXA of any 
change in its name or address. If your company wishes to have an 
individual added as a PIN holder, your company must advise BXA and 
follow the instructions provided by BXA. Your company should conduct 
periodic reviews to ensure that PINs are held only by individuals whose 
current responsibilities make it necessary and appropriate that they 
act for the company in this capacity.


Sec. 748.8  Unique license application requirements.

    In addition to the instructions contained in Supplement No. 1 to 
this part 748, you must also ensure that the additional requirements 
for certain items or types of transactions described in this section 
are addressed in your license application. See Supplement No. 2 to this 
part 748 if your application involves:
    (a) Chemicals, medicinals, and pharmaceuticals.
    (b) Communications intercepting devices.
    (c) Digital computers, telecommunications, and related equipment.
    (d) Gift parcels; consolidated in a single shipment.
    (e) Intransit shipments through the United States.
    (f) Intransit shipments outside of the United States.
    (g) Nuclear Nonproliferation items and end-uses.
    (h) Numerical control devices, motion control boards, numerically 
controlled machine tools, dimensional inspection machines, direct 
numerical control systems, specially designed assemblies and specially 
designed software.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products.
    (j) Ship stores, plane stores, supplies, and equipment.
    (k) Regional stability controlled items.
    (l) Reexports.
    
[[Page 12816]]

    (m) Robots.
    (n) Short Supply controlled items.
    (o) Technology.
    (p) Temporary exports or reexports.


Sec. 748.9  Support documents for license applications.

    (a) Exemptions. If you plan to submit a license application 
involving one of the following situations, no support documentation is 
required. Simply submit the license application.
    (1) All exports and reexports involving ultimate consignees located 
in any of the following destinations:

Bahamas
Barbados
Belize
Bermuda
Bolivia
Brazil
Canada
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
French West Indies
French Guiana
Greenland
Guatemala
Guyana
Haiti
Honduras
Jamaica
Leeward and Windward Islands
Mexico
Miquelon and St. Pierre Islands
Netherlands Antilles
Nicaragua
Panama
Paraguay
Peru
Surinam
Trinidad and Tobago
Uruguay
Venezuela

    (2) The ultimate consignee or purchaser is a foreign government(s) 
or foreign government agency(ies). To determine whether the parties to 
your transaction meet the definition of ``government agency'' refer to 
the definition contained in part 772 of the EAR. Remember, if either 
the ultimate consignee or purchaser is not a foreign government or 
foreign government agency, a statement is required from the 
nongovernmental party. However, support documents are required from 
governments of the People's Republic of China, India, Bulgaria, Czech 
Republic, Hungary, Poland, Romania, and Slovakia.
    (3) The license application is filed by, or on behalf of, a relief 
agency registered with the Advisory Committee on Voluntary Foreign Aid, 
U.S. Agency for International Development, for export to a member 
agency in the foreign country.
    (4) The license application is submitted to export or reexport 
items for temporary exhibit, demonstration, or testing purposes.
    (5) The license application is submitted for items controlled for 
short supply reasons (see part 754 of the EAR).
    (6) The license application is submitted under the Special 
Comprehensive License procedure described in part 752 of the EAR.
    (b) Support document requirements. License applications not exempt 
under paragraph (a) of this section generally must be supported by 
documents designed to elicit information concerning the disposition of 
the items intended for export or reexport. These support documents must 
be either submitted at the time the license application is filed or 
retained in the applicant's files in accordance with the recordkeeping 
provisions of part 762 of the EAR. The type of support documentation 
required is dependent on the item involved and the country of ultimate 
destination. To determine which type of support documentation is 
required, answer the following questions:
    (1) Does your transaction involve items controlled for national 
security reasons?
    (i) If yes, continue with question number 2 in paragraph (b)(2) of 
this section.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee and Purchaser.
    (2) Does your transaction involve items controlled for national 
security reasons destined for one of the following countries? (This 
applies only to those overseas destinations specifically listed.)

Argentina
Australia
Austria
Belgium
Bulgaria
China (PRC)
Czech Republic
Denmark
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Ireland, Republic of
Italy
Japan
Korea, Republic of
Liechtenstein
Luxembourg
Netherlands
New Zealand
Norway
Pakistan
Poland
Portugal
Romania
Singapore
Slovakia
Spain
Sweden
Switzerland
Taiwan
Turkey
United Kingdom

    (i) If yes, your transaction may require an Import or End-User 
Certificate. Note that if the destination is the People's Republic of 
China, a Statement of Ultimate Consignee and Purchaser may be 
substituted for a PRC End-User Certificate under the following 
conditions:
    (1) The item to be exported is described in an Advisory Note for 
Country Group D:1 (See Supplement No. 1 to part 740 of the EAR) on the 
CCL; or
    (2) The item to be exported (i.e., replacement parts and sub-
assemblies) is for servicing previously exported items and is valued at 
$75,000 or less; or
    (3) The End-User is not a Chinese entity.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee or Purchaser.
    (c) License applications requiring support documents. License 
applications requiring support by either a Statement by the Ultimate 
Consignee and Purchaser or an Import or End-User Certificate must 
indicate the type of support document obtained in Block 6 or 7 on your 
application with an ``X'' in the appropriate box. If the support 
document is an Import or End User Certificate, you must also identify 
the originating country and number of the Certificate in Block 13 on 
your application. If a license application is submitted without either 
the correct Block or Box marked on the application or the required 
support document, the license application will be immediately returned 
without action unless the satisfactory reasons for failing to obtain 
the document are supplied in Block 24 or in an attachment to your 
license application.
    (1) License applications supported by an Import or End User 
Certificate. If submission of the original certificate is not required 
by Sec. 748.10(g) of this part, you may submit your license application 
upon receipt of a facsimile

[[Page 12817]]
or other legible copy of the Import or End User Certificate provided 
that no shipment is made against any license issued based upon the 
Import or End User Certificate prior to receipt and retention of the 
original statement by the applicant. If Sec. 748.10(g) of this part 
requires submission of the original certificate with your license 
application, you must submit the original. Copies will not be accepted.
    (2) License applications supported by Ultimate Consignee and 
Purchaser statements. These types of license applications may be 
submitted upon receipt of a facsimile or other legible copy of the 
original statement provided that the original manually-signed statement 
is retained by the ultimate consignee, and you retain a copy of the 
statement.
    (d) Exceptions to obtaining the required support document. BXA will 
consider the granting of an exception to the requirement for supporting 
document where the requirements cannot be met due to circumstances 
beyond your control. An exception will not be granted contrary to the 
objectives of the U.S. export control laws and regulations. Refer to 
Sec. 748.12(d) of this part for specific instructions on procedures for 
requesting an exception.
    (e) Validity period. (1) When an Import or End-User Certificate or 
a Statement by Ultimate Consignee and Purchaser is required to support 
one or more license applications, you must submit the first license 
application within the validity period shown on the Certificate, or 6 
months from the date the Certificate was issued or Statement signed, 
whichever is shorter.
    (2) All subsequent license applications supported by the same 
Import or End-Use Certificate must be submitted to BXA within one year 
from the date that the first license application supported by the same 
Import or End-Use Certificate was submitted to BXA.
    (3) All subsequent license applications supported by the same 
Statement by Ultimate Consignee and Purchaser must be submitted within 
two years of the first application if the statement was completed as a 
single transaction statement. If the statement was completed as a 
multiple transaction statement, all applications must be submitted 
within two years of signature by the consignee or purchaser, whichever 
was last.
    (f) English translation requirements. All abbreviations, coded 
terms, or other expressions on support documents having special 
significance in the trade or to the parties to the transaction must be 
explained on an attachment to the document. Documents in a language 
other than English must be accompanied by an attachment giving an 
accurate English translation, either made by a translating service or 
certified by you to be correct. Explanations or translations should be 
provided on a separate piece of paper, and not entered on the support 
documents themselves.
    (g) Responsibility for full disclosure. (1) Information contained 
in a support document cannot be construed as extending or expanding or 
otherwise modifying the specific information supplied in a license 
application or license issued by BXA. The license application covering 
the transaction discloses all facts pertaining to the transaction. The 
authorizations contained in the resulting license are not extended by 
information contained in an Import Certificate, End-User Certificate or 
Statement by Ultimate Consignee and Purchaser regarding reexport from 
the country of destination or any other facts relative to the 
transaction that are not reported on the license application.
    (2) Misrepresentations, either through failure to disclose facts, 
concealing a material fact, or furnishing false information, will 
subject responsible parties to administrative action by BXA. 
Administrative action may include suspension, revocation, or denial of 
licensing privileges and denial of other participation in exports from 
the United States.
    (3) In obtaining the required support document, you as the 
applicant are not relieved of the responsibility for full disclosure of 
any other information concerning the ultimate destination and end-use, 
end-user of which you know, even if inconsistent with the 
representations made in the Import Certificate, End-User Certificate, 
or Statement by Ultimate Consignee and Purchaser. You are responsible 
for promptly notifying BXA of any change in the facts contained in the 
support document that comes to your attention.
    (h) Effect on license application review. BXA reserves the right in 
all respects to determine to what extent any license will be issued 
covering items for which an Import or End-User Certificate has been 
issued by a foreign government. BXA will not seek or undertake to give 
consideration to recommendations from the foreign government as to the 
action to be taken on a license application. A supporting document 
issued by a foreign government will be only one of the factors upon 
which BXA will base its licensing action, since end-uses and other 
considerations are important factors in the decision making process.
    (i) Request for return of support documents submitted to BXA. If an 
applicant is requested by a foreign importer to return an unused or 
partially used Import or End-User Certificate submitted to BXA in 
support of a license application, the procedure provided in this 
paragraph (i) should be followed:
    (1) The applicant must send a letter request for return of an 
Import or End-User Certificate to the address stated in Sec. 748.2(c) 
of this part, ``Attn: Import/End-User Certificate Request''.
    (2) The letter request must include the name and address of the 
importer, the Application Control Number under which the original 
Import or End-User Certificate was submitted, the Application Control 
Numbers for any subsequent license applications supported by the same 
certificate, and one of the following statements, if applicable:
    (i) If the certificate covers a quantity greater than the total 
quantity identified on the license application(s) submitted against it, 
a statement that the certificate will not be used in connection with 
another license application.
    (ii) If you do not intend to make any additional shipments under a 
license covered by the certificate, or are in possession of an expired 
license covered by the certificate, a statement to this effect, 
indicating the unshipped items.
    (j) Recordkeeping requirements for returning certificates retained 
by the applicant. (1) Though the recordkeeping provisions of the EAR 
require that all original support documents be retained for a period of 
five years, an unused or partially used certificate may be returned at 
the request of a foreign importer provided that you submit the original 
certificate, accompanied by a letter of explanation, a copy of each 
license covered by the certificate, and a list of all shipments made 
against each license to BXA at the address listed in Sec. 748.2(c). BXA 
will notify you in writing whether your request has been granted. The 
following information must be contained in your letter of explanation:
    (i) A statement citing the foreign importer's request for return of 
the certificate;
    (ii) The license number(s) that have been issued against the 
certificate (including both outstanding and expired licenses); and
    (iii) If the certificate covers a quantity greater that the total 
quantity stated on the license(s), you must include a statement that 
the certificate will not be used in connection with another license 
application.

[[Page 12818]]

    (2) If your request is granted, BXA will return the certificate to 
you. You must make a copy of the certificate before you return the 
original to the importer. This copy must show all the information 
contained on the original certificate including any notation made on 
the certificate by BXA. The copies must be retained on file along with 
your correspondence in accordance with the recordkeeping provisions in 
part 762 of the EAR.


Sec. 748.10  Import and End-User Certificates.

    (a) Scope. There are a variety of Import and End-User Certificates 
currently in use by various governments. The control exercised by the 
government issuing the Import or End-User Certificate is in addition to 
the conditions and restrictions placed on the transaction by BXA. The 
laws and regulations of the United States are in no way modified, 
changed, or superseded by the issuance of an Import or End-User 
Certificate. This section describes exceptions and relationships true 
for both Import and End-User Certificates, and applies only to 
transactions involving national security controlled items destined for 
one of the countries identified in Sec. 748.9(b)(2) of this part.
    (b) Import or End-User Certificate. An Import or End-User 
Certificate must be obtained, unless your transaction meets one of the 
exemptions stated in Sec. 748.9(a) of this part, if:
    (1) Any items on your license application are controlled for 
national security reasons (NS),
    (2) The ultimate destination is a country listed in 
Sec. 748.9(b)(2) of this part; and
    (3) Your license application involves the export of items 
classified in a single entry on the CCL, the total value of which 
exceeds $5,000.
    (i) Your license application may list several separate CCL entries. 
If any entry controlled for national security reasons exceeds $5,000, 
then an Import or End-User Certificate must be obtained covering all 
items controlled for national security reasons on your license 
application;
    (ii) If your license application involves a lesser transaction that 
is part of a larger order for items controlled for national security 
reasons in a single ECCN exceeding $5,000, an Import or End-User 
Certificate must be obtained.
    (iii) You may be specifically requested by BXA to obtain an Import 
Certificate for a transaction valued under $5,000.
    (c) How to obtain an Import or End-User Certificate. (1) Applicants 
must request that the importer (e.g., ultimate consignee or purchaser) 
obtain the Import or End-User Certificate, and that it be issued 
covering only those items that are controlled for national security 
reasons. Importers should not be requested to obtain an Import or End-
User Certificate for items that are controlled for reasons other than 
national security. Upon receipt, the importer must transmit the 
original document to the applicant.
    (2) The applicant's name must appear on the Import or End-User 
Certificate submitted to BXA as either the applicant, supplier, or 
order party. The Import Certificate may be made out to either the 
ultimate consignee or the purchaser, even though they are different 
parties, as long as both are located in the same country.

    Note to paragraph (c) of this section: You should furnish the 
consignee with the item description contained in the CCL to be used 
in applying for the Import or End-User Certificate. It is also 
advisable to furnish a manufacturer's catalog, brochure, or 
technical specifications if the item is new.

    (3) If your transaction requires support of a PRC End-User 
Certificate, you must ensure the following information is included on 
the PRC End-User Certificate signed by an official of the Department of 
Science and Technology of the Ministry of Foreign Trade and Economic 
Cooperation (MOFTEC) with MOFTEC's seal affixed to it:
    (i) Title of contract and contract number (optional);
    (ii) Names of importer and exporter;
    (iii) End-User and end-use;
    (iv) Description of the item, quantity and dollar value; and
    (v) Signature of the importer and date.
    (d) Where to obtain Import and End-User Certificates. See 
Supplement No. 4 to this part for a list of the authorities 
administering the Import Certificate/Delivery Verification and End-User 
Certificate Systems in other countries.
    (e) Triangular symbol on International Import Certificates.
    (1) In accordance with international practice, the issuing 
government may stamp a triangular symbol on the International Import 
Certificate (IIC). This symbol is notification that the importer does 
not intend to import or retain the items in the country issuing the 
certificate, but that, in any case, the items will not be delivered to 
any destination except in accordance with the export regulations of the 
issuing country'.
    (2) If you receive an IIC bearing a triangular symbol, you must 
identify all parties to the transaction on the license application, 
including those located outside the country issuing the IIC. If the 
importer declines to provide you with this information, you may advise 
the importer to provide the information directly to BXA, through a U.S. 
Foreign Commercial Service office, or in a sealed envelope to you 
marked ``To be opened by BXA only''.
    (f) Multiple license applications supported by one certificate. An 
Import or End-User Certificate may cover more than one purchase order 
and more than one item. Where the certificate includes items for which 
more than one license application will be submitted, you must include 
in Block 24 on your application, or in an attachment to each license 
application submitted against the certificate, the following 
certification:

    I (We) certify that the quantities of items shown on this 
license application, based on the Certificate identified in Block 13 
of this license application, when added to the quantities shown on 
all other license applications submitted to BXA based on the same 
Certificate, do not total more than the total quantities shown on 
the above cited Certificate.

    (g) Submission of Import and End-User Certificates. If a PRC End-
User Certificate is required for your proposed transaction, you must 
submit the original certificate with your license application. Copies 
will not be accepted. All other certificates must be retained on file 
by the applicant in accordance with the recordkeeping provisions of 
part 762 of the EAR, and not submitted with the license application.
    (h) Alterations. After an Import or End-User Certificate is issued 
by a foreign government, no corrections, additions, or alterations may 
be made on the Certificate by any person. If you desire to explain any 
information contained on the Certificate, you may attach a signed 
statement to the Certificate.
    (i) Request for Delivery Verification. BXA will, on a selective 
basis, require Delivery Verification documents for shipments supported 
by Import Certificates. You will be notified if Delivery Verification 
is required at the time of issuance of the license. Please refer to 
Sec. 748.13 of this part for detailed information on these procedures.
    (j) Retention procedures. You must retain on file the original copy 
of any certificate issued in support of a license application submitted 
to BXA, unless the original is submitted with the license application. 
All recordkeeping provisions contained in part 762 of the EAR apply to 
this requirement, except that reproductions may not be substituted for 
the officially authenticated original in this instance.

[[Page 12819]]



Sec. 748.11  Statement by Ultimate Consignee and Purchaser.

    (a) Exceptions to completing a Statement by Ultimate Consignee and 
Purchaser. A Statement by the Ultimate Consignee and/or Purchaser 
involved in a transaction must be completed unless:
    (1) An International Import Certificate, a People's Republic of 
China End-User Certificate, an Indian Import Certificate, or a 
Bulgarian, Czech, Hungarian, Polish, Romanian or Slovak Import 
Certificate is required in support of the license application;
    (2) The applicant is the same person as the ultimate consignee, 
provided the required statements are contained in Block 24 on the 
license application. This exemption does not apply where the applicant 
and consignee are separate entities, such as parent and subsidiary, or 
affiliated or associated firms;
    (3) The application is valued at $5000 or less, and is not part of 
a larger transaction; or
    (4) The transaction meets one of the exemptions stated in 
Sec. 748.9(a) of this part.
    (b) Submission of the Statement by Ultimate Consignee and 
Purchaser. A copy of the statement must be submitted with your license 
application if the country of ultimate destination is listed in either 
Country Group D:2, D:3, or D:4 (See Supplement No. 1 to part 740 of the 
EAR). The copy submitted by the applicant must be of sufficient quality 
to ensure all assertions made on the statement are legible and that the 
signatures are sufficiently legible to permit identification of the 
signature as that of the signer. The applicant must receive the 
manually-signed original within 60 days from the date the original is 
signed by the ultimate consignee. The applicant must, upon receipt, 
retain the manually-signed original, and both the ultimate consignee 
and purchaser should retain a copy of the statement in accordance with 
the recordkeeping provisions contained in part 762 of the EAR.
    (c) Form or letter. The ultimate consignee and purchaser must 
complete either a statement on company letterhead in accordance with 
paragraph (e) of this section or Form BXA-711, Statement by Ultimate 
Consignee and Purchaser. If the consignee and purchaser elect to 
complete the statement on letterhead and both the ultimate consignee 
and purchaser are the same entity, only one statement is necessary. If 
the ultimate consignee and purchaser are separate entities, separate 
statements must be prepared and signed. If the ultimate consignee and 
purchaser elects to complete Form BXA-711, only one Form BXA-711 
(containing the signatures of the ultimate consignee and purchaser) 
need be completed. Whether your ultimate consignee and purchaser sign a 
written statement or complete Form BXA-711, the following constraints 
apply:
    (1) Responsible officials representing the ultimate consignee and 
purchaser must sign the statement. ``Responsible official'' is defined 
as someone with personal knowledge of the information included in the 
statement, and authority to bind the ultimate consignee or purchaser 
for whom they sign, and who has the power and authority to control the 
use and disposition of the licensed items.
    (2) The authority to sign the statement may not be delegated to any 
person (agent, employee, or other) whose authority to sign is not 
inherent in his or her official position with the ultimate consignee or 
purchaser for whom he or she signs. The signing official may be located 
in the U.S. or in a foreign country. The official title of the person 
signing the statement must also be included.
    (3) The consignee and/or purchaser must submit information that is 
true and correct to the best of their knowledge and must promptly send 
a new statement to the applicant if changes in the facts or intentions 
contained in their statement(s) occur after the statement(s) have been 
forwarded to the applicant. Once a statement has been signed, no 
corrections, additions, or alterations may be made. If a signed 
statement is incomplete or incorrect in any respect, a new statement 
must be prepared, signed and forwarded to the applicant.
    (d) Instructions for completing Form BXA-711. Instructions on 
completing Form BXA-711 are contained in Supplement No. 3 to this part. 
The ultimate consignee and purchaser may sign a legible copy of Form 
BXA-711. It is not necessary to require your ultimate consignee and 
purchaser sign an original Form BXA-711, provided all information 
contained on the copy is legible.
    (e) Instructions for completing the statement on letterhead. 
Information in response to each of the following criteria must be 
included in the statement. If any information is unknown, that fact 
should be disclosed in the statement. Preprinted information supplied 
on the statement, including the name, address, or nature of business of 
the ultimate consignee or purchaser appearing on the letterhead or 
order form is acceptable but will not constitute evidence of either the 
signer's identity, the country of ultimate destination, or end-use of 
the items described in the license application.
    (1) Paragraph 1. One of the following certifications must be 
included depending on whether the statement is proffered in support of 
a single license application or multiple license applications:
    (i) Single. This statement is to be considered part of a license 
application submitted by [name and address of applicant].
    (ii) Multiple. This statement is to be considered a part of every 
license application submitted by [name and address of applicant] until 
one year from the date this statement is signed.
    (2) Paragraph 2. One or more of the following certifications must 
be included. Note that if any of the facts related to the following 
statements are unknown, this must be clearly stated.
    (i) The items for which a license application will be filed by 
[name of applicant] will be used by us as capital equipment in the form 
in which received in a manufacturing process in [name of country] and 
will not be reexported or incorporated into an end product.
    (ii) The items for which a license application will be filed by 
[name of applicant] will be processed or incorporated by us into the 
following product(s) [list products] to be manufactured in [name of 
country] for distribution in [list name of country or countries].
    (iii) The items for which a license application will be filed by 
[name of applicant] will be resold by us in the form in which received 
for use or consumption in [name of country].
    (iv) The items for which a license application will be filed by 
[name of applicant] will be reexported by us in the form in which 
received to [name of country or countries].
    (v) The items received from [name of applicant] will be [describe 
use of the items fully].
    (3) Paragraph 3. The following two certifications must be included:
    (i) The nature of our business is [possible choices include; 
broker, distributor, fabricator, manufacturer, wholesaler, retailer, 
value added reseller, original equipment manufacturer, etc.].
    (ii) Our business relationship with [name of applicant] is 
[possible choices include; contractual, franchise, distributor, 
wholesaler, continuing and regular individual business, etc.] and we 
have had this business relationship for [number of years].
    (4) Paragraph 4. The final paragraph must include all of the 
following certifications:
    (i) We certify that all of the facts contained in this statement 
are true and

[[Page 12820]]
correct to the best of our knowledge and we do not know of any 
additional facts that are inconsistent with the above statements. We 
shall promptly send a replacement statement to [name of the applicant] 
disclosing any material change of facts or intentions described in this 
statement that occur after this statement has been prepared and 
forwarded to [name of applicant]. We acknowledge that the making of any 
false statement or concealment of any material fact in connection with 
this statement may result in imprisonment or fine, or both, and denial, 
in whole or in part, of participation in U.S. exports or reexports.
    (ii) Except as specifically authorized by the U.S. Export 
Administration Regulations, or by written approval from the Bureau of 
Export Administration, we will not reexport, resell, or otherwise 
dispose of any items approved on a license supported by this statement:
    (1) To any country not approved for export as brought to our 
attention by the U.S. exporter; or
    (2) To any person if there is reason to believe that it will result 
directly or indirectly in disposition of the items contrary to the 
representations made in this statement or contrary to the U.S. Export 
Administration Regulations.
    (iii) We understand that acceptance of this statement as a support 
document cannot be construed as an authorization by BXA to reexport the 
items in the form in which received even though we may have indicated 
the intention to reexport, and that authorization to reexport is not 
granted in an export license on the basis of information provided in 
the statement, but as a result of a specific request in a license 
application.


Sec. 748.12  Special provisions for support documents.

    (a) Grace periods. Whenever the requirement for an Import or End-
User Certificate or Statement by Ultimate Consignee or Purchaser is 
imposed or extended by a change in the regulations, the license 
application need not conform to the new support documentation 
requirements for a period of 45 days after the effective date of the 
regulatory change published in the Federal Register.
    (1) Requirements are usually imposed or extended by virtue of one 
of the following:
    (i) Addition or removal of national security controls over a 
particular item; or
    (ii) Development of an Import Certificate/Delivery Verification or 
End-User Certificate program by a foreign country; or
    (iii) Removal of an item from eligibility under the Special 
Comprehensive License described in part 752 of the EAR, when you hold 
such a special license and have been exporting the item under that 
license.
    (2) License applications filed during the 45 day grace period must 
be accompanied by any evidence available to you that will support 
representations concerning the ultimate consignee, ultimate 
destination, and end use, such as copies of the order, letters of 
credit, correspondence between you and ultimate consignee, or other 
documents received from the ultimate consignee. You must also identify 
the regulatory change (including its effective date) that justifies 
exercise of the 45 day grace period. Note that an Import or End-User 
Certificate will not be accepted, after the stated grace period, for 
license applications involving items that are no longer controlled for 
national security reasons. If an item is removed from national security 
controls, you must obtain a Statement by Ultimate Consignee and 
Purchaser as described in Sec. 748.11 of this part. Likewise, any item 
newly controlled for national security purposes requires support of an 
Import or End-User Certificate as described in Sec. 748.10 of this part 
after expiration of the stated grace period.
    (b) Reexports. If a support document would be required for an 
export, the same document would be required for reexport to Country 
Group D:1 and E:2 (See Supplement No. 1 to part 740 of the EAR).
    (c) Granting of exceptions to the support documentation 
requirement. An exception to obtaining the required support 
documentation will be considered by BXA, however, an exception will not 
be granted contrary to the objectives of the U.S. export control 
program. A request for exception may involve either a single 
transaction, or where the reason necessitating the request is 
continuing in nature, multiple transactions. If satisfied by the 
evidence presented, BXA may waive the support document requirement and 
accept the license application for processing. Favorable consideration 
of a request for exception generally will be given in instances where 
the support document requirement:
    (1) Imposes an undue hardship on you and/or ultimate consignee 
(e.g., refusal by the foreign government to issue an Import or End-User 
Certificate and such refusal constitutes discrimination against you); 
or
    (2) Cannot be complied with (e.g., the items will be held in a 
foreign trade zone or bonded warehouse for subsequent distribution in 
one or more countries); or
    (3) Is not applicable to the transaction (e.g., the items will not 
be imported for consumption into the named country of destination).
    (d) Procedures for requesting an exception. (1) Requests for 
exception must be submitted with the license application to which the 
request relates. Where the request relates to more than one license 
application it should be submitted with the first license application 
and referred to in Block 24 on any subsequent license application. The 
request for exception must be submitted in writing on the applicant's 
letterhead.
    (2) In instances where you are requesting exception from obtaining 
an Import or End-User Certificate, the request must be accompanied by a 
manually-signed original Statement by Ultimate Consignee and Purchaser 
as described in Sec. 748.11 of this part.
    (3) At a minimum, the letter request must include:
    (i) Name and address of ultimate consignee;
    (ii) Name and address of purchaser, if different from ultimate 
consignee;
    (iii) Location of foreign trade zone or bonded warehouse if the 
items will be exported to a foreign trade zone or bonded warehouse;
    (iv) Type of request, i.e., whether for a single transaction or 
multiple transactions;
    (v) Full explanation of the reason(s) for requesting the exception;
    (vi) Nature and duration of the business relationship between you 
and ultimate consignee and purchaser shown on the license application;
    (vii) Whether you have previously obtained and/or submitted to BXA 
an Import or End-User Certificate issued in the name of the ultimate 
consignee and/or purchaser, and a list of the Application Control 
Number(s) to which the certificate(s) applied; and
    (viii) Any other facts to justify granting an exception.
    (4) Action by BXA. (i) Single transaction request. Where a single 
transaction is involved, BXA will act on the request for exception at 
the same time as the license application with which the request is 
submitted. In those instances where the related license application is 
approved, the issuance of the license will serve as an automatic notice 
to the applicant that the exception was approved. If any restrictions 
are placed on granting of the exception, these will appear on the 
approval. If the request for exception is not approved, BXA will advise 
you by letter.

[[Page 12821]]

    (ii) Multiple transactions request. Where multiple transactions are 
involved, BXA will advise you by letter of the action taken on the 
exception request. The letter will contain any conditions or 
restrictions that BXA finds necessary to impose (including an exception 
termination date if appropriate). In addition, a written acceptance of 
these conditions or restrictions may be required from the parties to 
the transaction.
    (e) Availability of original. The original certificate or statement 
must be kept on file, and made available for inspection in accordance 
with the provisions of part 762 of the EAR. To ensure compliance with 
this recordkeeping requirement, BXA will require applicants, on a 
random basis, to submit specific original certificates and statements 
that have been retained on file. Applicants will be notified in writing 
of any such request.


 Sec. 748.13  Delivery Verification (DV).

    (a) Scope. (1) BXA may request applicants to obtain verifications 
of delivery on a selective basis. A Delivery Verification Certificate 
(DV) is a document issued by the government of the country of ultimate 
destination after the export has taken place and the items have either 
entered the export jurisdiction of the recipient country or are 
otherwise accounted for by the importer to the issuing government. 
Governments that issue DVs are listed in Supplement No. 4 to this part.
    (2) If BXA decides to request verification of delivery, the request 
will appear as a condition on the face of the license. If the license 
is sent directly to a party other than the applicant authorized to 
receive the license (e.g., agent, forwarder, broker, etc.), such party 
is responsible for notifying the licensee immediately in writing that a 
DV is required.
    (b) Exception to obtaining Delivery Verification. The DV 
requirement for a particular transaction is automatically canceled if, 
subsequent to the issuance of a license, the item is no longer 
controlled for national security reasons. In this instance, the 
licensee must send a letter to BXA at the address listed in 
Sec. 748.2(c) of this part, stating that the items on the license are 
no longer controlled for national security reasons, and accordingly, 
the request for DV will not be fulfilled by the licensee.
    (c) Procedure for obtaining Delivery Verification. When notified 
that a DV is required by BXA, the licensee must transmit to the 
importer a written request for a DV at the time of making each shipment 
under the license (whenever possible, this request should be submitted 
together with the related bill of lading or air waybill). The request 
must include the number of the Import or End-User Certificate for the 
transaction referred to on the license, and notify the importer that 
this same Import or End-User Certificate number should be shown on the 
DV.
    (1) The importer must obtain the DV from the appropriate government 
ministry identified in Supplement No. 4 to this part, and forward the 
completed DV to the licensee. The DV must cover the items described on 
the license that have been shipped. Note that BXA must be able to 
relate the description provided in the DV to the approved license. In 
order to ensure the same terminology is used, the licensee should 
provide the importer with the description as it appears on the license.
    (2) The original copy of the DV must be sent to BXA within 90 days 
after the last shipment has been made against the license. If 
verification of delivery is required for items covered by a license 
against which partial shipments have been made, the licensee shall 
obtain the required DV for each partial shipment, and retain these on 
file until all shipments have been made against the license. Once all 
shipments against the license have been made (or the licensee has 
determined that none will be), the licensee must forward, in one 
package, all applicable DVs to BXA at the address listed in 
Sec. 748.2(c) of this part.
    (3) The documents must be forwarded with a dated letter giving the 
license number, the name, title and signature of the authorized 
representative, and one of the following statements:
    (i) The total quantity authorized by license number ______ has been 
exported, and all delivery verification documents are attached.
    (ii) A part of the quantity authorized by license number ______ 
will not be exported. Delivery verification documents covering all 
items exported are attached.
    (iii) No shipment has been made against this license, and none is 
contemplated.
    (d) Inability to obtain Delivery Verification Certificates. If a 
licensee is unable to obtain the required DV (within the time frame 
stated above, or at all) from the importer, the licensee must promptly 
notify BXA and, upon request, make available all information and 
records, including correspondence, regarding the attempt to obtain the 
DV.

Supplement No. 1 to Part 748 BXA-748P, BXA-748P-A; Item Appendix, and 
BXA-748P-B; End-User Appendix; Multipurpose Application Instructions

    All information must be legibly typed within the lines for each 
Block or Box except where a signature is required. Where there is a 
choice of entering telephone numbers or facsimile numbers, and you 
wish to provide a facsimile number instead of a telephone number, 
identify the facsimile number with the letter ``F'' immediately 
after the number (e.g., 011-358-0-123456F).
    Block 1: Contact Person. Enter the name of the person who can 
answer questions concerning the application.
    Block 2: Telephone. Enter the telephone number of the person who 
can answer questions concerning the application.
    Block 3: Facsimile. Enter the facsimile number, if available, of 
the person who can answer questions concerning the application.
    Block 4: Date of Application. Enter the current date.
    Block 5: Type of Application. Export. If the items are located 
within the United States, and you wish to export those items, mark 
the Box labeled ``Export'' with an (X). Reexport. If the items are 
located outside the United States, mark the Box labeled ``Reexport'' 
with an (X). Classification Request. If you are requesting BXA to 
classify your item against the Commerce Control List (CCL), mark the 
Box labeled ``Classification Request'' with an (X). Special 
Comprehensive License. If you are submitting a Special Comprehensive 
License application in accordance with procedures described in part 
752 of the EAR, mark the Box labeled ``Special Comprehensive 
License'' with an (X).
    Block 6: Attachments submitted with Application. Review the 
documentation you are required to submit with your application in 
accordance with the provisions of part 748 of the EAR, and mark all 
applicable Boxes with an (X).
    Mark the Box ``Foreign Availability'' with an (X) if you are 
submitting an assertion of foreign availability with your license 
application. See part 768 of the EAR for instructions on foreign 
availability submissions.
    Mark the ``Tech. Specs.'' box with an (X) if you are submitting 
descriptive literature, brochures, technical specifications, etc. 
with your application.
    Block 7: Documents on File with Applicant. Certify that you have 
retained on file all applicable documents as required by the 
provisions of part 748 by placing an (X) in the appropriate Box(es).
    Block 8: Special Comprehensive License. Complete this Block only 
if you are submitting an application for a Special Comprehensive 
License in accordance with part 752 of the EAR.
    Block 9: Special Purpose. Complete this box for certain items or 
types of transactions only if specifically required in Supplement 
No. 2 to this part.
    Block 10: Resubmission Application Control Number. If your 
original application was returned without action, provide the 
Application Control Number for that application.

[[Page 12822]]

    Block 11: Replacement License Number. If you have received a 
license for identical items to the same ultimate consignee, but 
would like to make a change to the license as originally approved 
not excepted in Sec. 750.7(c) of the EAR, enter the license number 
here, and a statement in Block 24 regarding what changes you wish to 
make to the original license.
    Block 12: Items Previously Exported. This Block should be 
completed only if you have marked the ``Reexport'' box in Block 5. 
Enter the license number, License Exception symbol (for exports 
under General Licenses, enter the appropriate General License 
symbol), or other authorization under which the items were 
originally exported, if known.
    Block 13: Import/End-User Certificate. Enter the name of the 
country and number of the Import or End User Certificate obtained in 
accordance with provisions of this part.
    Block 14: Applicant. Enter the applicant's name, street address, 
city, state/country, and postal code. Refer to Sec. 748.5(a) of this 
part for a definition of ``applicant''. If you have marked 
``Export'' in Block 5, you must include your company's Employer 
Identification Number unless you are filing as an individual or as 
an agent on behalf of the exporter. The Employer Identification 
Number is assigned by the Internal Revenue Service for tax 
identification purposes. Accordingly, you should consult your 
company's financial officer or accounting division to obtain this 
number.
    Block 15: Other Party Authorized to Receive License. If you 
would like BXA to transmit the approved license to another party 
designated by you, complete all information in this Block, including 
name, street address, city, country, postal code and telephone 
number. Leave this space blank if the license is to be sent to the 
applicant. Designation of another party to receive the license does 
not alter the responsibilities of the applicant.
    Block 16: Purchaser. Enter the purchaser's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. Refer to Sec. 748.5(c) of this part for a definition of 
``purchaser''. If the purchaser is also the ultimate consignee, 
enter the words ``same as Block 18''.
    Block 17: Intermediate Consignee. Enter the intermediate 
consignee's complete name, street address, city, country, postal 
code and telephone or facsimile number. Provide a complete street 
address, P.O. Boxes are not acceptable. Refer to Sec. 748.5(d) of 
this part for a definition of ``intermediate consignee''. If this 
party is identical to that listed in Block 16, you may simply type 
the words ``Same as Block 16''. If your proposed transaction does 
not involve use of an intermediate consignee, enter ``None''. If 
your proposed transaction involves use of more than one intermediate 
consignee, provide the information in Block 24 for each additional 
Intermediate Consignee.
    Block 18: Ultimate Consignee. Enter the ultimate consignee's 
complete name, street address, city, country, postal code and 
telephone or facsimile number. Provide a complete street address, 
P.O. Boxes are not acceptable. The ultimate consignee is the party 
who will actually receive the material for the end-use designated in 
Block 21.
    Refer to Sec. 748.5(e) of this part for the definition of 
``ultimate consignee''. A bank, freight forwarder, forwarding agent, 
or other intermediary may not be identified as the ultimate 
consignee. Government purchasing organizations are the sole 
exception to this requirement. This type of entity may be identified 
as the government entity that is the actual ultimate consignee in 
those instances when the items are to be transferred to the 
government entity that is the actual end-user, provided the actual 
end-use and end-user is clearly identified in Block 21 or in 
additional documentation attached to the application.
    If your application is for the reexport of items previously 
exported, enter the new ultimate consignee's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. If your application involves a temporary export or reexport, 
the applicant should be shown as the ultimate consignee in care of a 
person or entity who will have control over the items abroad.
    Block 19: End-User. Complete this Block only if the ultimate 
consignee identified in Block 18 is not the actual end-user. If 
there will be more than one end-user, enter the word ``Various'' in 
this Block, and use Form BXA-748P-B to identify each of the end-
users. Enter each end user's complete name, street address, city, 
country, postal code and telephone or facsimile number. Provide a 
complete street address, P.O. Boxes are not acceptable.
    Block 20: Original Ultimate Consignee. If your application 
involves the reexport of items previously exported, enter the 
original ultimate consignee's complete name, street address, city, 
country, postal code and telephone or facsimile number. The original 
ultimate consignee is the entity identified in the original 
application for export as the ultimate consignee or the party 
currently in possession of the items. Provide a complete street 
address, P.O. Boxes are not acceptable.
    Block 21: Specific End-Use. Provide a complete and detailed 
description of the end-use intended by the ultimate consignee and/or 
end-user(s). If you are requesting approval of a reexport, provide a 
complete and detailed description of the end-use intended by the new 
ultimate consignee or end user(s) and indicate any other countries 
for which resale or reexport is requested. If additional space is 
necessary, use Block 21 on Form BXA-748P-A or B. Be specific, such 
vague descriptions as ``research,'' ``manufacturing,'' or 
``scientific uses'' are not acceptable.
    Block 22: For a license application you must complete each of 
the sub-blocks contained in this Block, If you are submitting a 
classification request, you need not complete Blocks (e), (f), (g), 
and (h). Enter ``N/A'' in these blocks. If you wish to export, 
reexport or have BXA classify more than one item, use Form BXA-748P-
A for additional items.
    (a) ECCN. Enter the Export Control Classification Number (ECCN) 
that corresponds to the item you wish to export or reexport. If you 
are asking BXA to classify your item, provide a recommended 
classification for the item in this Block.
    (b) CTP. You must complete this Block if your application 
involves a digital computer or equipment containing a digital 
computer as described in Supplement No. 2 to this part.
    Instructions on calculating the CTP are contained in a Technical 
Note at the end of Category 4 in the CCL. If your application does 
not involve these items, insert ``N/A'' in this Block.
    (c) Model Number. Enter the correct model number for each item.
    (d) CCATS Number. If you have received a classification for this 
item from BXA, provide the CCATS number shown on the classification 
issued by BXA. Otherwise, enter ``N/A'' in this Block.
    (e) Quantity. Identify the quantity to be exported or 
reexported, in terms of the ``Units'' identified for the ECCN 
entered in Block 21(a). If the ``Unit'' for an item is ``$ value,'' 
enter the quantity in units commonly used in the trade.
    (f) Units. The ``Unit'' paragraph within each ECCN will list a 
specific ``Unit'' for those items controlled by the entry. The 
``Unit'' must be entered on all license applications submitted to 
BXA. If an item is licensed in terms of ``$ value'', the unit of 
quantity commonly used in trade must also be shown on the license 
application. If the unit for your particular item is shown as ``N/
A'' in the appropriate entry on the CCL, enter ``N/A'' in this 
Block.
    (g) Unit Price. Provide the fair market value of the items you 
wish to export or reexport. Round all prices to the nearest whole 
dollar amount. Give the exact unit price only if the value is less 
than $0.50. If normal trade practices make it impractical to 
establish a firm contract price, state in Block 24 the precise terms 
upon which the price is to be ascertained and from which the 
contract price may be objectively determined.
    (h) Total Price. Provide the total price of the item(s) 
described in Block 22(j).
    (i) Manufacturer. Provide the name only of the manufacturer, if 
known, for each of the items you wish to export, reexport, or have 
BXA classify, if different from the applicant.
    (j) Technical Description. Provide a description of the item(s) 
you wish to export, reexport, or have BXA classify. Provide details 
when necessary to identify the specific item(s), include all 
characteristics or parameters shown in the applicable ECCN using 
measurements identified in the ECCN (e.g., basic ingredients, 
composition, electrical parameters, size, gauge, grade, horsepower, 
etc.). These characteristics must be identified for the items in the 
proposed transaction when they are different than the 
characteristics described in promotional brochure(s).
    Block 23: Total Application Dollar Value. Enter the total value 
of all items contained on the application in U.S. Dollars. The use 
of other currencies is not acceptable.
    Block 24: Additional Information. Enter additional data 
pertinent to the application as required in the EAR. Include special 
certifications, names of parties in interest not disclosed 
elsewhere, explanation of documents attached, etc. Do not include 
information concerning Block 22 in this space.
    If your application represents a previously denied application, 
you must provide the

[[Page 12823]]
Application Control Number for the original application.
    If you are asking BXA to classify your product, use this space 
to explain why you believe the ECCN entered in Block 22(a) is 
appropriate. This explanation must contain an analysis of the item 
in terms of the technical control parameters specified in the 
appropriate ECCN. If you do not identify a recommended 
classification in Block 22(a), you must state the reason you cannot 
determine the appropriate classification, identifying any 
ambiguities or deficiencies in the regulations that precluded you 
from determining the correct classification.
    If additional space is necessary, use Block 24 on Form BXA-748P-
A or B.
    Block 25: You, as the applicant or duly authorized agent of the 
applicant, must manually sign the application. If you are an agent 
of the applicant, in addition to providing your name and title in 
this Block you must enter your company's name in Block 24.

    Note: Rubber-stamped or electronic signatures are not 
acceptable. Type both your name and title in the spaces provided.

Supplement No. 2 to Part 748--Unique License Application 
Requirements

    In addition to the instructions contained in Supplement No. 1 to 
part 748, you must also ensure that the additional requirements for 
certain items or types of transactions described in this supplement 
are addressed in your license application. All other blocks not 
specifically identified in this supplement must be completed in 
accordance with the instructions contained in Supplement No. 1 to 
part 748. The term ``Block'' used in this supplement relates to Form 
BXA-748P, unless otherwise noted.
    (a) Chemicals, medicinals, and pharmaceuticals. If you are 
submitting a license application for the export or reexport of 
chemicals, medicinals, and/or pharmaceuticals, the following 
information must be provided in Block 22.
    (1) Facts relating to the grade, form, concentration, 
mixture(s), or ingredients as may be necessary to identify the item 
accurately, and;
    (2) The Chemical Abstract Service Registry (C.A.S.) numbers, if 
they exist, must be identified.
    (b) Communications intercepting devices. If you are required to 
submit a license application under Sec. 742.13 of this part, you 
must enter the words ``Communications Intercepting Device(s)'' in 
Block 9. The item you are requesting to export or reexport must be 
specified by name in Block 22(j).
    (c) Digital computers, telecommunications, and related 
equipment. If your license application involves items controlled by 
both Category 4 and Category 5, your license application must be 
submitted according to the principal function of the equipment. 
License applications involving computers controlled by Category 4 
must identify a Composite Theoretical Performance (CTP) in Block 
22(b). If the principal function is telecommunications, a CTP is not 
required. Computers, related equipment, or software performing 
telecommunication or local area network functions will be evaluated 
against the telecommunications performance characteristics of 
Category 5, while cryptographic, cryptoanalytic, certifiable multi-
level security or certifiable user isolation functions, or systems 
that limit electromagnetic compatibility (EMC) will be evaluated 
against the information security performance characteristics of 
Category 5.
    (1) Requirements for license applications involving digital 
computers. If you are submitting a license application to export or 
reexport ``digital computers'' or equipment containing digital 
computers to destinations in Country Group D:1 (See Supplement No. 1 
to part 740 of the EAR), or to upgrade existing ``digital computer'' 
installations in those countries, you must include in addition to 
the CTP in Block 22(b) the following information:
    (i) A configuration diagram of the entire system must be 
submitted if the equipment exceeds the limits of the Advisory Notes 
that indicate a likelihood of approval for Country Group D:1 for the 
appropriate ECCN in the Commerce Control List (CCL); and
    (ii) Technical specifications and product brochures to 
corroborate the data supplied in your license application.
    (2) Additional requirements. License applications to export or 
reexport computers or related equipment that are described in 
Advisory Note 4 to Category 4, or that exceed any of the limits 
specified in Advisory Notes 3 or 4 to Category 4, must include:
    (i) A signed statement by a responsible representative of the 
end-user or the importing agency describing the end-use and 
certifying that the ``digital'' computers or related equipment:
    (A) Will be used only for civil applications; and
    (B) Will not be reexported or otherwise disposed of without 
prior written authorization from BXA;
    (ii) A full description of the equipment and its intended 
application and workload; and
    (iii) A complete identification of all end-users and their 
activities.
    (d) Gift parcels; consolidated in a single shipment. If you are 
submitting a license application to export multiple gift parcels for 
delivery to individuals residing in a foreign country, you must 
include the following information in your license application. Note: 
Each gift parcel must meet the terms and conditions described in 
License Exception GFT (See Sec. 740.16 of the EAR).

    (1) In Block 16, enter the word ``None'';

    (2) In Block 18, enter the word ``Various'' instead of the name 
and address of a single ultimate consignee;
    (3) In Block 21, enter the phrase ``For personal use by 
recipients''.
    (4) In Block 22(e), indicate a reasonable estimate of the number 
of parcels to be shipped during the validity of the license;
    (5) In Block 22(j), enter the phrase ``Gift Parcels'';
    (6) In Block 23, indicate a reasonable value approximation 
proportionate to the quantity of gift parcels identified in Block 
22(e); and
    (e) Intransit through the United States. If you are submitting a 
license application for items moving intransit through the United 
States that do not qualify for License Exception TUS (See Sec. 740.9 
of the EAR), you must provide the following information with your 
license application:
    (1) In Block 9, enter the phrase ``Intransit Shipment'';
    (2) In Block 24, enter the name and address of the foreign 
consignor who shipped the items to the United States and state the 
origin of the shipment;
    (3) Any available evidence showing the approval or acquiescence 
of the exporting country (or the country of which the exporter is a 
resident) for shipments to the proposed ultimate destination. Such 
evidence may be in the form of a Transit Authorization Certificate; 
and
    (4) Any support documentation required by Sec. 748.9 of this 
part for the country of ultimate destination.
    (f) Intransit outside of the United States. If you are 
submitting a license application based on General Prohibition No. 8 
stated in Sec. 734.2(b)(8) of the EAR and identification of the 
intermediate consignee in the country of unlading or transit is 
unknown at the time the license application is submitted, the 
country of unlading or transit must be shown in Block 17.
    (g) Nuclear Nonproliferation items and end-uses.--(1) Statement 
requirement. If a license is required to export or reexport items 
under Sec. 744.2 of the EAR, prior to submitting a license 
application you must obtain a signed written statement from the 
foreign importer certifying the following:
    (i) The items to be exported or replicas thereof (``replicas'' 
refers to items produced abroad based on physical examination of the 
item originally exported, matching it in all critical design and 
performance parameters), will not be used in any of the activities 
described in Sec. 744.2(a) of the EAR; and
    (ii) Written authorization will be obtained from the BXA prior 
to reexporting the items, unless they are destined to Canada or 
would be eligible for export from the United States to the new 
country of destination under NLR based on Country Chart NP Column 1.
    (2) License application requirements. Along with the required 
certification, you must include the following information in your 
license application:
    (i) In Block 6, place an (X) in the box titled ``Nuclear 
Certification'';
    (ii) In Block 9, enter the phrase ``NUCLEAR CONTROLS'';
    (iii) In Block 21, provide, if known, the specific geographic 
locations of any installations, establishments, or sites at which 
the items will be used;
    (iv) In Block 22(j), if applicable, include a description of any 
specific features of design or specific modifications that make the 
item capable of nuclear explosive activities, or of safeguarded or 
unsafeguarded nuclear activities as described in Sec. 744.2(a)(3) of 
the EAR; and
    (v) In Block 24, if your license application is being submitted 
because you know that your transaction involves a nuclear end-use 
described in Sec. 744.2 of the EAR, you must fully explain the basis 
for your knowledge that the items are intended for the purpose(s) 
described Sec. 744.2 of the EAR. Indicate, if possible, the specific 
end-use(s) the items will have in designing, developing,

[[Page 12824]]
fabricating, or testing nuclear weapons or nuclear explosive devices 
or in designing, constructing, fabricating, or operating the 
facilities described in Sec. 744.2(a)(3) of the EAR.
    (h) Numerical control devices, motion control boards, 
numerically controlled machine tools, dimensional inspection 
machines, direct numerical control systems, specially designed 
assemblies and specially designed software. (1) If you are 
submitting a license application to export, reexport, or request BXA 
to classify numerical control devices, motion control boards, 
numerically controlled machine tools, dimensional inspection 
machines, and specially designed software you must include the 
following information in your license application:
    (i) For numerical control devices and motion control boards:
    (A) Make and model number of the control unit;
    (B) Description and internal configuration of numerical control 
device. If the device is a computer with motion control board(s), 
then include the make and model number of the computer;
    (C) Description of the manner in which a computer will be 
connected to the CNC unit for on-line processing of CAD data. 
Specify the make and model of the computer;
    (D) Number of axes the control unit is capable of simultaneously 
controlling in a coordinated contouring mode, and type of 
interpolation (linear, circular, and other);
    (E) Minimum programmable increment;
    (F) A description and an itemized list of all software/firmware 
to be supplied with the control device or motion control board, 
including software/firmware for axis interpolation function and for 
any programmable control unit or device to be supplied with the 
control unit;
    (G) Description of capabilities related to ``real time 
processing'' and receiving computer aided-design as described in 
ECCN 2B001.a.2.a and a.2.b and ECCN 2B001.b.2 and b.3;
    (H) A description of capability to accept additional boards or 
software that would permit an upgrade of the electronic device or 
motion control board above the control levels specified in ECCN 
2B001; and
    (I) Specify if the electronic device has been downgraded, and if 
so can it be upgraded in future.
    (ii) For numerically controlled machine tools and dimensional 
inspection machines:
    (A) Name and model number of machine tool or dimensional 
inspection machine;
    (B) Type of equipment, e.g., horizontal boring machine, 
machining center, dimensional inspection machine, turning center, 
water jet, etc.;
    (C) Description of the linear and rotary axes capable of being 
simultaneously controlled in a coordinated contouring mode, 
regardless of the fact that the coordinated movement of the machine 
axis may be limited by the numerical control unit supplied by the 
machine tool;
    (D) Maximum workpiece diameter for cylindrical grinding 
machines;
    (E) Motion (camming) of the spindle axis measured in the axial 
direction in one revolution of the spindle, and a description of the 
method of measurement for turning machine tools only;
    (F) Motion (run out) of the spindle axis measured in the radial 
direction in one revolution of the spindle, and a description of the 
method of measurement;
    (G) Overall positioning accuracy in each axis, and a description 
of the method for measurement; and
    (H) Slide motion test results if required as described in ECCN 
2B001.c.1.b.6.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products. BXA will consider license applications to 
export or reexport to multiple consignees or multiple countries when 
an application is required for foreign produced direct product 
containing parts and components subject to the EAR in Sec. 732.4(b) 
of the EAR and to General Prohibition Two stated in Sec. 734.2(b)(2) 
of the EAR. Such requests will not be approved for countries listed 
in Country Group E:2 (See Supplement No. 1 to part 740 of the EAR), 
and may be approved only in limited circumstances for countries 
listed in Country Group D:1.
    (1) License applications for the export of parts and components. 
If you are submitting a license application for the export of parts, 
components, or materials to be incorporated abroad into products 
that will then be sent to designated third countries, you must enter 
in Block 21, a description of end-use including a general 
description of the commodities to be manufactured, their typical 
end-use, and the countries where those commodities will be marketed. 
The countries may be listed specifically or may be identified by 
Country Groups, geographic areas, etc.
    (2) License applications for the reexport of incorporated parts 
and components. If you are submitting a license application for the 
reexport of parts, components, or materials incorporated abroad into 
products that will be sent to designated third countries you must 
include the following information in your license application:
    (i) In Block 9, enter the phrase ``Parts and Components'';
    (ii) In Block 18, enter the name, street address, city and 
country of the foreign party who will be receiving the foreign-made 
product. If you are requesting approval for multiple countries or 
consignees enter ``Various'' in Block 18, and list the specific 
countries, Country Groups, or geographic areas in Block 24;
    (iii) In Block 20, enter the name, street address, city, and 
country of the foreign party who will be exporting the foreign-made 
product incorporating U.S. origin parts, components or materials;
    (iv) In Block 21, describe the activity of the ultimate 
consignee identified in Block 18 and the end-use of the foreign-made 
product. Indicate the final configuration if the product is intended 
to be incorporated in a larger system. If the end-use is unknown, 
state ``unknown'' and describe the general activities of the end-
user;
    (v) In Block 22(e), specify the quantity for each foreign-made 
product. If this information is unknown, enter ``Unknown'' in Block 
22(e);
    (vi) In Block 22(h), enter the digit ``0'' for each foreign-made 
product;
    (vii) In Block 22(j), describe the foreign-made product that 
will be exported, specifying type and model or part number. Attach 
brochures or specifications, if available. Show as part of the 
description the unit value, in U.S. dollars, of the foreign-made 
product (if more than one foreign-made product is listed on the 
license application, specify the unit value for each type/model/part 
number). Also include a description of the U.S. content (including 
the applicable Export Control Classification Number(s)) and its 
value in U.S. dollars. If more than one foreign-made product is 
identified on the license application, describe the U.S. content and 
specify the U.S. content value for each foreign-made product. Also, 
provide sufficient supporting information to explain the basis for 
the stated values. To the extent possible, explain how much of the 
value of the foreign-made product represents foreign origin parts, 
components, or materials, as opposed to labor, overhead, etc. When 
the U.S. content varies and cannot be specified in advance, provide 
a range of percentage and value that would indicate the minimum and 
maximum U.S. content;
    (viii) Include separately in Block 22(j) a description of any 
U.S. origin spare parts to be reexported with the foreign-made 
product, if they exceed the amount allowed by Sec. 740.10 of the 
EAR. Enter the quantity, if appropriate, in Block 22(e). Enter the 
ECCN for the spare parts in Block 22(a) and enter the value of the 
spare parts in Block 22(h);
    (ix) In Block 23, enter the digit ``0'';
    (x) If the foreign-made product is the direct product of U.S. 
origin technology that was exported or reexported subject to written 
assurance, a request for waiver of that assurance, if necessary, may 
be made in Block 24. If U.S. origin technology will accompany a 
shipment to a country listed in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of the EAR) describe in Block 24 the 
type of technology and how it will be used.
    (j) Ship stores, plane stores, supplies, and equipment.--(1) 
Vessels under construction. If you are submitting a license 
application for the export or reexport of items, including ship 
stores, supplies, and equipment, to a vessel under construction you 
must include the following information in your license application:
    (i) In Block 18, enter the name, street address, city, and 
country of the shipyard where vessel is being constructed;
    (ii) In Block 22(j), state the length of the vessel for a vessel 
under 12 m (40 ft) in length. For a vessel 12 m (40 ft) in length or 
over, provide the following information (if this information is 
unknown, enter ``Unknown'' in this Block):
    (A) Hull number and name of vessel;
    (B) Type of vessel;
    (C) Name and business address of prospective owner, and the 
prospective owner's nationality; and
    (D) Country of registry or intended country of registry.
    (2) Aircraft under construction. If you are submitting a license 
application for the export or reexport of items, including plane 
stores, supplies, and equipment, to an aircraft under construction 
you must include the

[[Page 12825]]
following information in your license application:
    (i) In Block 18, enter the name and address of the plant where 
the aircraft is being constructed;
    (ii) In Block 22(j), enter the following information (if this 
information is unknown, enter ``Unknown'' in this Block):
    (A) Type of aircraft and model number;
    (B) Name and business address of prospective owner and his 
nationality; and
    (C) Country of registry or intended country of registry.
    (3) Operating vessels and aircraft. If you are submitting a 
license application for the export or reexport of items, including 
ship or plane stores, supplies, and equipment to an operating vessel 
or aircraft, whether in operation or being repaired, you must 
include the following information in your license application:
    (i) In Block 18, enter the name of the owner, the name of the 
vessel, if applicable, and port or point where the items will be 
taken aboard;
    (ii) In Block 18, enter the following statement if, at the time 
of filing the license application, it is uncertain where the vessel 
or aircraft will take on the items, but it is known that the items 
will not be shipped to a country listed in Country Group D:1 or E:2 
(see Supplement No. 1 to part 740 of the EAR):
    Uncertain; however, shipment(s) will not be made to Country 
Groups D:1 or E:2.
    (iii) Provide information as described in paragraph (j)(1)(ii) 
of this supplement for vessels or information contained in paragraph 
(j)(2)(ii) of this supplement for aircraft.
    (k) Regional stability controlled items. If you are submitting a 
license application for the export or reexport of items controlled 
for regional stability reasons and subject to licensing under RS 
Column 1 on the Country Chart, your license application must be 
accompanied by full technical specifications.
    (l) Reexports. If you know that an item that requires a license 
to be exported from the United States to a certain foreign 
destination will be reexported to a third destination also requiring 
approval, such a request must be included on the license 
application. The license application must specify the country to 
which the reexport will be made in Block 24. If the export does not 
require a license but the reexport does, you may apply for a license 
for the reexport, or you may export without a license and notify the 
consignee of the requirement to seek a license to reexport.
    (m) Robots. If you are submitting a license application for the 
export or reexport of items controlled by ECCNs 2B007 or 2D001 
(including robots, robot controllers, end-effectors, or related 
software) the following information must be provided in Block 24:
    (1) Specify if the robot is equipped with a vision system and 
its make, type, and model number;
    (2) Specify if the robot is specially designed to comply with 
national safety standards for explosive munitions environments;
    (3) Specify if the robot is specially designed for outdoor 
applications and if it meets military specifications for those 
applications;
    (4) Specify if the robot is specially designed for operating in 
an electro-magnetic pulse (EMP) environment;
    (5) Specify if the robot is specially designed or rated as 
radiation-hardened beyond that necessary to withstand normal 
industrial (i.e., non-nuclear industry) ionizing radiation, and its 
rating in grays (Silicon);
    (6) Describe the robot's capability of using sensors, image 
processing or scene analysis to generate or to modify robot program 
instructions or data;
    (7) Describe the manner in which the robot may be used in 
nuclear industry/manufacturing; and
    (8) Specify if the robot controllers, end-effectors, or software 
are specially designed for robots controlled by ECCN 2B007, and why.
    (n) Short Supply controlled items. If you are submitting a 
license application for the export of items controlled for short 
supply reasons, you must consult part 754 of the EAR for 
instructions on preparing your license application.
    (o) Technology--(1) License application instructions. If you are 
submitting a license application for the export or reexport of 
technology you must check the box labeled ``Letter of Explanation'' 
in Block 6, enter the word ``Technology'' in Block 9, leave Blocks 
22(e) and (i) blank, and include a general statement that specifies 
the technology (e.g., blueprints, manuals, etc.) in Block 22(j).
    (2) Letter of explanation. Each license application to export or 
reexport technology must be supported by a comprehensive letter of 
explanation. This letter must describe all the facts for a complete 
disclosure of the transaction including, if applicable, the 
following information:
    (i) The identities of all parties to the transaction;
    (ii) The exact project location where the technology will be 
used;
    (iii) The type of technology to be exported or reexported;
    (iv) The form in which the export or reexport will be made;
    (v) The uses for which the data will be employed;
    (vi) An explanation of the process, product, size, and output 
capacity of all items to be produced with the technology, if 
applicable, or other description that delineates, defines, and 
limits the data to be transmitted (the ``technical scope''); and
    (vii) The availability abroad of comparable foreign technology.
    (3) Special provisions.
    (i) Technology controlled for national security reasons. If you 
are submitting a license application to export technology controlled 
for national security reasons to a country not listed in Country 
Group D:1 or E:2 (see Supplement No. 1 to part 740 of the EAR), you 
must obtain a written letter from the ultimate consignee assuring 
that, unless prior authorization is obtained from BXA, the consignee 
will not knowingly reexport the technology to any destination, or 
export the direct product of the technology to a country listed in 
Country Group D:1 or E:2 (See Supplement No. 1 to part 740 of the 
EAR). If you are unable to obtain this letter of assurance from your 
consignee, you must state in your license application why the 
assurances could not be obtained.
    (ii) Maritime nuclear propulsion plants and related items. If 
you are submitting a license application to export or reexport 
technology relating to maritime nuclear propulsion plants and 
related items including maritime (civil) nuclear propulsion plants, 
their land prototypes, and special facilities for their 
construction, support, or maintenance, including any machinery, 
device, component, or equipment specifically developed or designed 
for use in such plants or facilities you must include the following 
information in your license application:
    (A) A description of the foreign project for which the 
technology will be furnished;
    (B) A description of the scope of the proposed services to be 
offered by the applicant, his consultant(s), and his 
subcontractor(s), including all the design data that will be 
disclosed;
    (C) The names, addresses and titles of all personnel of the 
applicant, the applicant's consultant(s) and subcontractor(s) who 
will discuss or disclose the technology or be involved in the design 
or development of the technology;
    (D) The beginning and termination dates of the period of time 
during which the technology will be discussed or disclosed and a 
proposed time schedule of the reports the applicant will submit to 
BXA, detailing the technology discussed or disclosed during the 
period of the license;
    (E) The following certification:
    I (We) certify that if this license application is approved, I 
(we) and any consultants, subcontractors, or other persons employed 
or retained by us in connection with the project licensed will not 
discuss with or disclose to others, directly or indirectly, any 
technology relating to U.S. naval nuclear propulsion plants. I (We) 
further certify that I (we) will furnish to the Bureau of Export 
Administration all reports and information it may require concerning 
specific transmittals or disclosures of technology under any license 
granted as a result of this license application.
    (F) A statement of the steps that you will take to assure that 
personnel of the applicant, the applicant's consultant(s) and 
subcontractor(s) will not discuss or disclose to others technology 
relating to U.S. naval nuclear propulsion plants; and
    (G) A written statement of assurance from the foreign importer 
as described in paragraph (o)(3)(i) of this Supplement.
    (p) Temporary exports or reexports. If you are submitting a 
license application for the temporary export or reexport of an item 
(not eligible for License Exception TMP (See Sec. 740.8 of the EAR)) 
you must include the following certification in Block 24:
    The items described on this license application are to be 
temporarily exported (or reexported) for (state the purpose e.g., 
demonstration, testing, exhibition, etc.), used solely for the 
purpose authorized, and returned to the United States (or 
originating country) as soon as the temporary purpose has ended, but 
in no case later than one year of the date of export (or reexport), 
unless other disposition has been authorized in

[[Page 12826]]
writing by the Bureau of Export Administration.

Supplement No. 3 to Part 748--BXA-711, Statement by Ultimate Consignee 
and Purchaser Instructions

    All information must be typed or legibly printed in each 
appropriate Block or Box.
    Block 1: Ultimate Consignee. The Ultimate Consignee must be the 
person abroad who is actually to receive the material for the 
disposition stated in Block 2. A bank, freight forwarder, forwarding 
agent, or other intermediary is not acceptable as the Ultimate 
Consignee.
    Block 2: Disposition or Use of Items by Ultimate Consignee named 
in Block 1. Place an (X) in ``A.,'' ``B.,'' ``C.,'' ``D.,'' and 
``E.,'' as appropriate, and fill in the required information.
    Block 3: Nature of Business of Ultimate Consignee named in Block 
1. Complete both ``A'' and ``B''.
    Possible choices for ``A'' include: broker, distributor, 
fabricator, manufacturer, wholesaler, retailer, value added 
reseller, original equipment manufacturer, etc.
    Possible choices for ``B'' include: contractual, franchise, 
distributor, wholesaler, continuing and regular individual business, 
etc.
    Block 4: Additional Information. Provide any other information 
not appearing elsewhere on the form such as other parties to the 
transaction, and any other material facts that may be of value in 
considering license applications supported by this statement.
    Block 5: Assistance in Preparing Statement. Name all persons, 
other than employees of the ultimate consignee or purchaser, who 
assisted in the preparation of this form.
    Block 6: Ultimate Consignee. Enter the requested information and 
sign the statement in ink. (For a definition of ultimate consignee, 
see Sec. 748.5(e) of this part.)
    Block 7: Purchaser. This form must be signed in ink by the 
Purchaser, if the Purchaser is not the same as the Ultimate 
Consignee identified in Block 1. (For a definition of purchaser, see 
Sec. 748.5(c) of this part.)
    Block 8: Certification for U.S. Exporter. This Block must be 
completed to certify that no correction, addition, or alteration on 
this form was made subsequent to the signing by the Ultimate 
Consignee in Block 6 and Purchaser in Block 7.

Supplement No. 4 To Part 748--Authorities Administering Import 
Certificate/Delivery Verification (IC/DV) and End Use Certificate 
Systems in Foreign Countries

----------------------------------------------------------------------------------------------------------------
               Country                               IC/DV Authorities                    System administered   
----------------------------------------------------------------------------------------------------------------
Argentina...........................  Secretaria Ejecutiva de la Comision Nacional de  IC/DV.                   
                                       Control de Exportaciones Sensitivas y Material                           
                                       Belico Balcarce 362--ler. piso Capital                                   
                                       Federal--CP 1064 Buenos Aires Tel. 334-0738,                             
                                       Fax 331-1618.                                                            
Australia...........................  Director, Technology Transfer and Analysis,      IC/DV.                   
                                       Industry Policy and Operations Division,                                 
                                       Department of Defense, Russell Office,                                   
                                       Canberra, A.C.T. 2600.                                                   
Austria.............................  Bundesministerium fur Handel Gewerbe und         IC/DV.                   
                                       Industrie Landstr. Haupstr. 55-57, Vienna 1031.                          
Belgium.............................  Ministere Des Affaires Economiques Office        IC/DV.                   
                                       Central des Contingents et Licences 24-26 Rue                            
                                       De Mot, Bruxelles-1040.                                                  
Bulgaria............................  Ministry of Trade 12 Al. Batenberg 1000 Sofia..  IC/DV.                   
China, People's Republic of.........  Technology Import and Export Department MOFTEC   PRC End-User             
                                       No. 2 Dong Chang An Street Beijing, Telephone:  Certificate.             
                                       553031, Telex: 22478 MFERTCN.                                            
Czech Republic......................  Federal Ministry of Foreign Trade Head of        IC/DV.                   
                                       Licensing Politickych Veznu 20 112 49 Praha 1.                           
Denmark.............................  Handelsministeriets Licenskontor Kampmannsgade   IC/DV.                   
                                       1, DK 1604, Copenhagen V.                                                
                                      IC's also issued by Danmarks Nationalbank        DV.                      
                                       Holmens Kanal 17, Copenhagen K Custom-houses.                            
Finland.............................  Hensingin Piiritullikamari, Kanavakatu 6 (or     IC/DV.                   
                                       P.O. Box 168) 00161 Helsinki.                                            
France..............................  Ministere de l'Economie et des Finances          IC/DV.                   
                                       Direction Generale des Douanes et Droita                                 
                                       Indirects Division des Affaires Juridiques et                            
                                       Contentieuses 8, Rue de la Tour des Dames,                               
                                       Bureau D/3, 75436, Paris Codex 09.                                       
Germany.............................  Bundesamt fur gewerbliche Wirtschaft             IC/DV.                   
                                       Frankfurter Strasse 29-31 65760 Eschborn.                                
Greece..............................  Banque de Greece, Direction des Transactions     IC/DV.                   
                                       Commerciales avec l'Etranger Athens.                                     
Hong Kong...........................  Trade Department, Ocean Centre, Canton Road,     IC/DV.                   
                                       Tsimshatsui, Kowloon,.                                                   
Hungary.............................  Ministry of International Economic Relations     IC/DV.                   
                                       Export Control Office 1054 Budapest P.O. Box                             
                                       728 H-1365, Hold Str. 17.                                                
India...............................  Deputy Director General of Foreign Trade Udyog   Indian IC.               
                                       Bhawan, Maulana Azad Road New Delhi 11011.                               
                                                                                                                
  For small scale industries and entities, and those not elsewhere specified.                                   
                                                                                                                
                                      Directorate General of Technical Development,    Indian IC                
                                       Udyog Bhawan, Maulana Azad Road, New Delhi                               
                                       11011.                                                                   
                                                                                                                
  For the ``organized'' sector, except for computers and related equipment.                                     
                                                                                                                
                                      Defense Research and Development Organization    Indian IC.               
                                       Room No. 224, ``B'' Wing Sena Bhawan, New                                
                                       Delhi 110011.                                                            
                                                                                                                
  For Defense organizations.                                                                                    
                                                                                                                
                                      Department of Electronics, Lok Nayak Bhawan,     Indian IC.               
                                       New Delhi 110003.                                                        
                                                                                                                
  For computers and related electronic items.                                                                   
                                                                                                                
                                      Assistant Director, Embassy of India, Commerce   Indian IC.               
                                       Wing, 2536 Massachusetts Ave. NW, Washington                             
                                       D.C. 20008--.                                                            
                                                                                                                
  For any of the above.                                                                                         
                                                                                                                
Ireland, Republic of................  Department of Industry, Trade, Commerce and      IC/DV.                   
                                       Tourism, Frederick House, South Frederick                                
                                       Street, Dublin 2.                                                        
Italy...............................  Ministero del Commercio con l'Estero Direzione   IC/DV.                   
                                       Generale delle Importazioni e delle                                      
                                       Esportazioni, Div. III, Rome Dogana Italiana                             
                                       (of the town import where takes place).                                  

[[Page 12827]]
                                                                                                                
Japan...............................  Ministered of International Trade and Industry   IC/DV.                   
                                       in: Fukuoka, Hiroshima, Kanmon (Kitakyushu-                              
                                       shi), Kobe, Nagoya, Osaka, Sapporo, Sendai,                              
                                       Shikoku (Takamatsu-shi), Shimizu, Tokyo, and                             
                                       Yokohama Japanese Customs Offices.                                       
Korea, Republic of..................  Trade Administration Division Trade Bureau       IC.                      
                                       Ministry of Trade and Industry Jungang-Dong,                             
                                       Kyonggi-Do, Building 3 Kwachon.                                          
                                      Republic of Korea Customs House................  DV.                      
Liechtenstein.......................  Swiss Federal Office for Foreign Economic        IC/DV.                   
                                       Affairs, Import and Export Division                                      
                                       Zieglerstrasse 30, CH-3003 Bern.                                         
Luxembourg..........................  Office des Licences Avenue de la Liberte, 10...  IC/DV.                   
Netherlands.........................  Centrale Dienst voor In-en Uitvoer Engelse Kamp  IC/DV.                   
                                       2, Groningen.                                                            
New Zealand.........................  Comptroller for Customs P.O. Box 2218,           IC/DV.                   
                                       Wellington.                                                              
Norway..............................  Handelsdepartmentet Direktoratet for Eksport-og- IC/DV.                   
                                       Importregulering Fr. Nansens plass 5, Oslo.                              
Pakistan............................  Chief Controller of Imports and Exports 5,       IC.                      
                                       Civic Center Islamabad.                                                  
                                      Joint Science Advisor, Ministry of Science and   DV.                      
                                       Technology, Secretariat Block `S', Islamabad.                            
Poland..............................  Ministry of Foreign Economic Relations           IC/DV.                   
                                       Department of Commodities and Services Plac                              
                                       Trzech Krzyzy 5, Room 358 00-507 Warsaw.                                 
Portugal............................  Reparticao do Comercio Externo Direccao-Geral    IC/DV.                   
                                       do Comercio Secretaria de Estado do Comercio                             
                                       Ministerio da Economia, Lisbon.                                          
Romania.............................  National Agency for Control of Strategic         IC/DV.                   
                                       Exports and Prohibition of Chemical Weapons,                             
                                       13, Calea 13 Septembrie Casa (or P.O. Box 5-                             
                                       10) Republicii, Gate A 1, Bucharest, Sector 5,                           
                                       Phone: 401-311-2083, Fax: 401-311-1265.                                  
Singapore...........................  Controller of Imports and Exports, Trade         IC/DV.                   
                                       Development Board World Trade Centre, 1                                  
                                       Maritime Square, Telok Blangah Road,.                                    
Slovakia............................  Ministry of Foreign Affairs Licensing-           IC.                      
                                       Registration Department Spitalska 8, 813 15                              
                                       Bratislava.                                                              
Spain...............................  Secretary of State for Commerce Paseo la         IC/DV.                   
                                       Cistellana 162, Madrid 28046.                                            
Sweden..............................  The Association of Swedish Chambers of Commerce  IC/DV.                   
                                       & Industry P.O. Box 16050, S-103 22 Stockholm                            
                                       Office: Vastra Tradgardsgatan 9.                                         
Switzerland.........................  Swiss Federal Office for Foreign Economic        IC/DV.                   
                                       Affairs, Import and Export Division,                                     
                                       Zieglerstrasse 30 CH-3003 Bern.                                          
Taiwan..............................  Board of Foreign Trade Ministry of Economic      IC/DV.                   
                                       Affairs 1 Hu-Kou Street, Taipei.                                         
                                      Science-based Industrial Park Administration                              
                                       No. 2 Hsin Ann Road, Hsinchu.                                            
                                      Export Processing Zone Administration 600                                 
                                       Chiachang Road Nantz, Kaohsiung.                                         
Turkey..............................  Ministry of Commerce, Department of Foreign      IC.                      
                                       Commerce, Ankara.                                                        
                                      Head Customs Office at the point of entry......  DV.                      
United Kingdom......................  Department of Trade and Industry Export          IC.                      
                                       Licensing Branch Millbank Tower Millbank                                 
                                       London, SW1P 4QU.                                                        
                                      H.M. Customs and Excise, King's Beam House,      DV                       
                                       Mark Lane London, E.C. 3.                                                
----------------------------------------------------------------------------------------------------------------



Supplement No. 5 to Part 748--U.S. Import Certificate and Delivery 
Verification Procedure

    The United States participates in an Import Certificate/Delivery 
Verification procedure. Under this procedure, U.S. importers are 
sometimes required to provide their foreign suppliers with an U.S. 
International Import Certificate that is validated by the U.S. 
Government. This certificate tells the government of the exporter's 
country that the items covered by the certificate will be imported 
into the U.S. Economy and will not be reexported except as 
authorized by U.S. export control regulations. In addition, in some 
cases, the exporter's government may require a delivery 
verification. Under this procedure, the U.S. Customs Service 
validates a certificate confirming that the items have entered the 
U.S. economy. The U.S. importer must return this certificate to the 
foreign exporter.
    This supplement establishes the procedures and requirements of 
BXA with respect to both of these programs. Paragraph (a) of this 
Supplement contains the requirements and procedures of the U.S. 
International Import Certificate procedure. Paragraph (b) of this 
Supplement contains the requirements and procedures of the Delivery 
Verification procedure.
    (a) U.S. International Import Certificates. If you are a U.S. 
importer, a foreign supplier may request you to obtain a U.S. import 
certificate. The reason for this request is that the exporter's 
government requires a U.S. import certificate as a condition to 
issuing an export license. To obtain such a certificate you will 
have to fill in and execute the U.S. International Import 
Certificate form (Form BXA-645P/ATF-4522/DSP-53) and submit it to 
the U.S. government agency that has jurisdiction over the items you 
are importing. In doing so, you will be making a representation to 
the United States Government that you will import the items 
described in the certificate into the United States or if not so 
imported, you will not divert, transship or reexport them to another 
destination with the explicit approval of the U.S. government agency 
that has jurisdiction over those items. (Representations that items 
will be entered into the U.S. do not preclude the temporary 
unloading of items in a foreign trade zone for subsequent entry into 
the economy of the U.S.) If the items described in the certificate 
are subject to U.S. Department of Commerce jurisdiction, the 
Department will validate the certificate and return it to you. You 
may then send the certificate to your foreign supplier. In this way 
the government of the exporting country is assured that the items 
will become subject to the export control laws of the United States.
    (1) Items for which the U.S. Department of Commerce issues U.S. 
International Import Certificates and forms to use. The Department 
of Commerce issues U.S. International Import Certificates for the 
following types of items.
    (i) Items controlled for National Security reasons. Items under 
the export licensing jurisdiction of BXA that are identified as 
controlled for national security reasons on the Commerce Control 
List (Supplement No. 1 to part 774 of the EAR). You will need to 
submit in triplicate a completed Form BXA-645P/ATF-4522/DSP-53;
    (ii) Nuclear equipment and materials. Items subject to the 
export licensing jurisdiction of the Nuclear Regulatory Commission 
for nuclear equipment and materials. (see 10 CFR part 110). You will 
need to submit in quadruplicate a completed Form BXA-645P/ATF-4522/
DSP-53; and
    (iii) Munitions Items. Items listed on the U.S. Munitions List 
(see 22 CFR part 121) that do not appear on the more limited U.S.

[[Page 12828]]
Munitions Import List (27 CFR 47.21). You will need to submit in 
triplicate a completed Form BXA-645P. For triangular transactions 
(See paragraph (a)(5) of this Supplement) involving items on the 
U.S. Munitions List, you must contact the Department of State, 
Office of Defense Trade Controls and use Form BXA-645P/ATF-4522/DSP-
53. You should contact the Treasury Department, Bureau of Alcohol, 
Tobacco and Firearms for items appearing on the U.S. Munitions 
Import List. You will need to use Form ATF-4522.
    (2) Where to submit forms. U.S. International Import 
Certificates and requests to amend certificates may be presented for 
validation either in person or by mail at the following locations.
    (i) By mail to the Bureau of Export Administration, P.O. Box 
273, Washington D.C. 20044, Attn: Import Certificate Request; or
    (ii) In person or by mail at one of the following Department of 
Commerce U.S. and Foreign Commercial Service District Offices:
Boston, MA
Buffalo, NY
Chicago, IL
Cincinnati, OH
Cleveland, OH
Dallas, TX
Detroit, MI
Houston, TX
Kansas City, MO
Los Angeles, CA
Miami, FL
New Orleans, LO
New York, NY
Philadelphia, PA
Phoenix, AZ
Pittsburgh, PA
Portland, OR
St. Louis, MO
San Francisco, CA
Savannah, GA
Seattle, WA
Trenton, NJ

    (3) U.S. International Import Certificate validity periods. The 
U.S. International Import Certificate must be submitted to the 
foreign government within six months from the date of certification 
by the U.S. Department of Commerce. The expiration of this six-month 
period in no way affects the responsibility of the importer to 
fulfill the commitments made in obtaining the certificate. If the 
certificate is not presented to the government of the exporting 
country before the expiration of its validity period, the exporter 
must apply for a new certificate. The original unused U.S. 
International Import Certificate must be returned to BXA at the 
address specified in paragraph (a)(2)(i) of this supplement.
    (4) Statements on the certificate or amendments are 
representations to the U.S. Government which continue in effect.
    (i) All statements and representations made in a U.S. 
International Import Certificate or an amendment thereto, will be 
deemed to be continuing in nature until the transaction described in 
the certificate is completed and the items are delivered into the 
economy of the importing country.
    (ii) Any change of fact or intention in regard to the 
transaction described in the certificate shall be promptly disclosed 
to BXA by the U.S. importer by presentation of an amended 
certificate. The amended certificate must describe all of the 
changes and be accompanied by the original certificate bearing the 
certification of BXA. If the original certificate has been 
transferred to the foreign exporter, you must, where possible, 
attempt to obtain the original certificate prior to applying for an 
amendment. If the original certificate is unobtainable because the 
foreign exporter has submitted it to the appropriate foreign 
government, or for any other reason, then you must submit a written 
statement with your amendment giving the reasons for your failure to 
submit the original certificate.
    (5) Certificates for Triangular transaction (items will not 
enter the U.S. or applicant is not sure that they will enter the 
United States).
    (i) In accordance with international practice, BXA will, upon 
request, stamp the certificate with a triangular symbol as 
notification to the government of the exporting country that the 
U.S. importer is uncertain whether the items will be imported into 
the U. S. or knows that the items will not be imported into the 
U.S., but that, in any case, the items will not be delivered to any 
other destination except in accordance with the EAR.
    (ii) The triangular symbol on a certificate U.S. International 
Import Certificate is not, in and of itself, an approval by BXA to 
transfer or sell items to a foreign consignee. Note that a 
triangular Certificate will not be issued covering foreign excess 
property sold abroad by the U.S. Department of Defense.
    (6) Approval to export items to a foreign consignee prior to 
delivery under a U.S. International Import Certificate. The written 
approval of BXA is required before items covered by a U.S. 
International Import Certificate (whether or not bearing a 
triangular symbol) may be shipped to a destination other than the 
U.S. or Canada or sold to a foreign purchaser, and before title to 
or possession of such items may be transferred to a foreign 
transferee. This requirement does not apply after the items have 
been delivered in accordance with the undertaking set forth in the 
Certificate or if at the time of such shipment, sale, passage of 
possession or passage of title, a License Exception or a NLR 
provision of the EAR would authorize the transaction.
    (i) If prior approval is required, a letter requesting 
authorization to release the shipment shall be submitted to BXA at 
the address listed in paragraph (a)(2)(i) of this supplement.
    (ii) The letter must contain the certificate number; date 
issued; location of the issuing office; names, addresses, and 
identities of all parties to the complete transaction; and the 
quantity, dollar value, and description of the items. The letter 
must be accompanied by the U.S. International Import Certificate, 
and all other documentation required by the EAR for the item and 
country of ultimate destination, as identified in part 748 of the 
EAR. If requirements stated in part 748 of the EAR do not apply to 
your transaction, you must identify the intended end-use of the 
items in your letter.
    (iii) Where the letter request is approved and is supported by a 
foreign import certificate, no further approval from BXA is required 
for the purchaser or transferee to resell or again transfer the 
items. However, where BXA approves a request that was not supported 
by a foreign import certificate, the person to whom approval is 
granted is required to inform the purchaser or transferee, in 
writing, that the items are to be shipped to the approved 
destination only and that no other disposition of the items is 
permitted without the approval of BXA.
    (iv) If the transaction is approved, a validated letter of 
approval will be sent to the U.S. purchaser for retention in his 
records. Where a DV or other official government confirmation of 
delivery is required, the letter will so indicate.
    (v) If the items covered by a certificate have been imported 
into a destination other than the U.S. and the foreign exporter of 
the items requests a Delivery Verification, the person who obtained 
the certificate must obtain a DV from the person to whom the items 
were delivered in the actual importing country. (If a DV is 
unobtainable, other official government confirmation of delivery 
must be obtained.) The DV or other official government confirmation 
of delivery must be submitted to BXA together with an explanatory 
letter giving the U.S. International Import Certificate number, date 
issued, and location of issuing office. BXA will then issue Form 
ITA-6008, Delivery Compliance Notice, in two copies, the original of 
which must be forwarded to the country of origin in order to serve 
as evidence to the exporting country that the requirements of the 
U.S. Government have been satisfied with respect to delivery of the 
items.
    (vi) Delivery, sale, or transfer of items to another U.S. 
purchaser.
    (A) Items covered by a U.S. International Import Certificate may 
not be sold, and title to or possession of such items may not be 
transferred, to another U.S. purchaser or transferee before the 
items are delivered to the U.S. (or to an approved foreign 
destination, as provided by paragraph (a)(5) of this Supplement), 
except in accordance with the provisions described in paragraph 
(a)(6) of this Supplement. The provisions of this paragraph do not 
apply after the items have been delivered in accordance with the 
undertaking set forth in the certificate.
    (B) Resale or transfer to another U.S. purchaser or transferee 
requires the prior approval of BXA only in cases where the buyer or 
transferee is listed in Supplement No. 1 to part 766 of the EAR. 
However, you, as the person who obtained the certificate are 
required to notify BXA of any change in facts or intentions relating 
to the transaction, and in all cases you will be held responsible 
for the delivery of the items in accordance with the EAR. You are 
required in all cases to secure, prior to sale or transfer, and to 
retain in your files in accordance with the recordkeeping provisions 
contained in part 762 of the EAR, written acceptance by the 
purchaser or transferee of:
    (1) All obligations undertaken by, and imposed under the EAR, 
upon the holder of the certificate; and

[[Page 12829]]

    (2) An undertaking that all subsequent sales or transfers will 
be made subject to the same conditions.
    (iii) The responsibility of the certificate holder for obtaining 
a DV also applies to those cases where the items are resold to a 
U.S. purchaser (See paragraph (b)(1) of this Supplement.
    (vii) Reexport or transshipment of items after delivery to U.S. 
Items imported into the U.S. under the provisions of a U.S. 
International Import Certificate may not be reexported to any 
destination under the provisions of License Exception TUS (see 
Sec. 740.4(c) of the EAR). However, all other provisions of the EAR 
applicable to items of domestic origin shall apply to the reexport 
of items of foreign origin shipped to the U.S. under a U.S. 
International Import Certificate.
    (viii) Lost or destroyed U.S. International Import Certificates. 
If a U.S. International Import Certificate is lost or destroyed, a 
duplicate copy may be obtained by the person in the U.S. who 
executed the original U.S. International Import Certificate by 
submitting to any of the offices listed in paragraph (a)(2)(i) of 
this supplement new Form BXA-645P/ATF-4522/DSP-53 in the same way as 
an original request, except that the forms shall be accompanied by a 
letter detailing the circumstances under which the original 
certificate was lost or destroyed and certifying:
    (A) That the original U.S. International Import Certificate No. 
______, dated ______, issued to (name and address of U.S. importer) 
for import from (foreign exporter's name and address) has been lost 
or destroyed; and
    (B) That if the original U.S. International Import Certificate 
is found, the applicant agrees to return the original or duplicate 
of the certificate to the Bureau of Export Administration.
    (ix) Unused U.S. International Import Certificates. If the 
transaction will not be completed and the U.S. International Import 
Certificate will not be used, return the certificate for 
cancellation to BXA at the address listed in paragraph (a)(2)(i) of 
this supplement.
    (b) Delivery Verification Certificate. U.S. importers may be 
requested by their foreign suppliers to furnish them with a 
certified Form BXA-647P, Delivery Verification Certificate, covering 
items imported into the U.S. These requests are made by foreign 
governments to assure that strategic items shipped to the U.S. are 
not diverted from their intended destination. In these instances, 
the issuance of an export license by the foreign country is 
conditioned upon the subsequent receipt of a Delivery Verification 
Certificate from the U.S. importer. Accordingly, your compliance 
with your foreign exporter's request for a Delivery Verification is 
necessary to ensure your foreign exporter fulfills its government 
obligations and is able to participate in future transactions with 
you. Failure to comply may subject your exporter to penalties that 
may prevent future trade.
    (1) The responsibility of a person or firm executing a U.S. 
International Import Certificate for providing the foreign exporter 
with confirmation of delivery of the items includes instances where 
the items are resold or transferred to another U.S. person or firm 
prior to actual delivery to the U.S. or to an approved foreign 
destination. The person who executed the U.S. International Import 
Certificate shall secure in writing from the U.S. purchaser or 
transferee, and retain in your files in accordance with the 
recordkeeping provisions stated in part 762 of the EAR:
    (i) Acceptance of the obligation to provide the purchaser or 
transferee with either the Delivery Verification (or other official 
government confirmation of delivery if a Delivery Verification is 
unobtainable) or assurance that this document was submitted to BXA; 
and
    (ii) An undertaking that each succeeding U.S. transferee or 
purchaser will assume the same obligation or assurance. In each case 
the seller or transferor must transmit to the U.S. purchaser or 
transferee the U.S. International Import Certificate number covering 
the export from the foreign country and request that they pass it on 
to any other U.S. purchasers or transferees.
    (2) Completion and certification of Delivery Verification 
Certificates. If you are requested by your foreign exporter to 
provide a Delivery Verification, you must obtain Form BXA-647P from 
a U.S. customs office or one of the offices listed in paragraph 
(a)(2) of this supplement and complete all blocks (except those 
below the line titled ``To be completed by U.S. Customs Service'') 
on the form. The language used in the block titled ``Description of 
Goods'' must describe the items in the same terms as those shown on 
the applicable U.S. International Import Certificate. Upon 
completion Form BXA-647P must be presented, in duplicate, to a U.S. 
customs office. The U.S. customs office will certify Form BXA-647P 
only where the import is made under a warehouse or consumption 
entry.
    (3) Disposition of certified Delivery Verification Certificates. 
The importer must send the original certified Delivery Verification 
Certificate to the foreign exporter or otherwise dispose of it in 
accordance with the instructions of the exporting country. The 
duplicate copy will be retained by the U.S. customs office.
    (4)(i) Issuance of a U.S. Delivery Compliance Notice in lieu of 
a Delivery Verification Certificate. If you are requested to provide 
a Delivery Verification Certificate but do not wish to disclose the 
name of your customer to the foreign exporter (e.g., in the event 
that the items are resold or transferred to another person or firm 
before the items enter the U.S.), you may submit an originally 
completed Form BXA-647P together with an explanatory letter 
requesting a Delivery Compliance Notice, to BXA at the address 
listed in (a)(2)(i) of this supplement.
    (ii) BXA will provide you with a notice signifying that the 
items were imported into the U.S. and that a satisfactory DV has 
been submitted to BXA. You must then forward the original notice to 
your foreign exporter for submission to the foreign government. A 
copy of the notice should be retained in your files in accordance 
with the recordkeeping provisions stated in part 762 of the EAR.
    (5)(i) Lost or destroyed Delivery Verification Certificate. When 
a Delivery Verification Certificate is lost or destroyed, the U.S. 
importer must submit a letter to BXA at the address listed in 
paragraph (a)(2)(i) of this supplement certifying that:
    (A) The original Delivery Verification Certificate has been lost 
or destroyed;
    (B) The circumstances under which it was lost or destroyed;
    (C) The type of customs entry (warehouse or consumption), entry 
number, and date of entry; and
    (D) The number and date of the related U.S. International Import 
Certificate.
    (ii) BXA will, in applicable cases, notify the exporting 
government that a Delivery Verification Certificate been issued.
    (c) Penalties and sanctions for violations. The enforcement 
provisions of part 764 and Supplement No. 2 to part 736 of the EAR 
apply to transactions involving imports into the U.S. covered by 
this supplement and to both foreign and U.S. parties involved in a 
violation of this supplement. Any provisions of part 764 and 
Supplement No. 2 to part 736 of the EAR which, by their terms, 
relate to ``exports'' or ``exports from the U.S.'' are also deemed 
to apply and extend to imports into the U.S., applications for U.S. 
International Import Certificates (Forms BXA-645P presented to U.S. 
Department of Commerce for certification), U.S. International Import 
Certificates, and Delivery Verification Certificates, described in 
this supplement. (Applications the documents described in this 
supplement, are included within the definition of export control 
documents provided in part 772 of the EAR.) Refer to Sec. 764.3 of 
the EAR for more information.

PART 750--APPLICATION PROCESSING, ISSUANCE OR AND DENIAL

Sec.
750.1  Scope.
750.2  Processing of Classification Requests and Advisory Opinions.
750.3  Review of license applications by BXA and other government 
agencies and departments.
750.4  Procedures for processing license applications.
750.5  Status on pending applications and other requests.
750.6  Denial of license applications.
750.7  Issuance of licenses.
750.8  Revocation or suspension of licenses.
750.9  Duplicate licenses.
750.10  Transfer of licenses for exports.
750.11  Shipping tolerances.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995); E.O. 12981, 60 FR 62981.


Sec. 750.1  Scope.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. This part describes the Bureau of Export 
Administration's (BXA) process for reviewing your application for a 
license, including processing times, denials, revocations, issuance, 
duplicates, transfers, and

[[Page 12830]]
shipping tolerances on approved licenses. The processing times for 
Classification and Advisory Opinion requests are also provided along 
with directions on obtaining status on your pending application.


Sec. 750.2  Processing of Classification Requests and Advisory 
Opinions.

    (a) Classification requests. All classification requests submitted 
in accordance with procedures described in Sec. 748.3 (a) and (b) of 
the EAR will be answered within 14 calendar days after receipt. All 
responses will inform the person of the proper classification (e.g., 
whether or not the item is subject to the Export Administration 
Regulations (EAR) and, if applicable, the appropriate Export Control 
Classification Number [ECCN]).
    (b) Advisory Opinion requests. All advisory opinions submitted in 
accordance with procedures described in Sec. 748.3(a) and (c) of the 
EAR will be answered within 30 calendar days after receipt.


Sec. 750.3  Review of license applications by BXA and other government 
agencies and departments.

    (a) Review by BXA. In reviewing specific license applications, BXA 
will conduct a complete analysis of the license application along with 
all documentation submitted in support of the application. In addition 
to reviewing the item and end-use, BXA will consider the reliability of 
each party to the transaction and review any available intelligence 
information. To the maximum extent possible, BXA will make licensing 
decisions without referral of license applications to other agencies, 
however, BXA may consult with other U.S. departments and agencies 
regarding any license application.
    (b) Review by other departments or agencies. (1) The Departments of 
Defense, Energy, State, and the Arms Control and Disarmament Agency 
(ACDA) have the authority to review any license application submitted 
under the EAR. In addition, BXA may, where appropriate, refer license 
applications to other U.S. government departments or agencies. These 
agencies and departments will be referred to as ``agencies'' for the 
purposes of this part. Though these agencies have the authority to 
review any license application, they may determine that they do not 
need to review certain types of license applications. In these 
instances, the agency will provide BXA with a Delegation of Authority 
to process those license applications without review by that particular 
agency.
    (2) The Departments of Defense, Energy, State, and ACDA are 
generally concerned with license applications involving items 
controlled for national security, missile technology, nuclear 
nonproliferation, and chemical and biological weapons proliferation 
reasons or destined for countries and/or end uses of concern. In 
particular, these agencies are concerned with reviewing license 
applications as follows:
    (i) The Department of Defense is concerned primarily with items 
controlled for national security and regional stability reasons;
    (ii) The Department of Energy is concerned primarily with items 
controlled for nuclear nonproliferation reasons;
    (iii) The Department of State is concerned primarily with items 
controlled for regional stability, anti-terrorism, crime control 
reasons, and sanctions; and
    (iv) ACDA is concerned primarily with items controlled for national 
security, nuclear nonproliferation, regional stability, and anti-
terrorism reasons.


Sec. 750.4  Procedures for processing license applications.

    (a) Overview. (1) All license applications will be resolved or 
referred to the President no later than 90 calendar days from the date 
of BXA's registration of the license application. Processing times for 
the purposes of this section are defined in calendar days. The 
procedures and time limits described in this part apply to all license 
applications registered on or after February 4, 1996. The procedures 
and time limits in effect prior to December 6, 1995 will apply to 
license applications registered prior to February 4, 1996.
    (2) Properly completed license applications will be registered 
promptly upon receipt by BXA. Registration is defined as the point at 
which the application is entered into BXA's electronic license 
processing system. If your application contains deficiencies that 
prevent BXA from registering your application, BXA will attempt to 
contact you to correct the deficiencies, however, if BXA is unable to 
contact you, the license application will be returned without being 
registered. The specific deficiencies requiring return will be 
enumerated in a notice accompanying the returned license application. 
If a license application is registered, but BXA is unable to correct 
deficiencies crucial to processing the license application, it will be 
returned without action. The notice will identify the deficiencies and 
the action necessary to correct the deficiencies. If you decide to 
resubmit the license application, it will be treated as a new license 
application when calculating license processing time frames.
    (b) Actions not included in processing time calculations. The 
following actions will not be counted in the time period calculations 
described in paragraph (a)(1) of this section for the processing of 
license applications:
    (1) Agreement by the applicant to the delay. BXA may request 
applicants provide additional information in support of their license 
application, respond to questions arising during processing, or accept 
proposed conditions or riders on their license application. If BXA has 
provided the applicant with an intent to deny letter described in 
Sec. 750.6 of this part, processing times may be suspended in order to 
negotiate modifications to a license application and obtain agreement 
to such modifications from the foreign parties to the license 
application.
    (2) Pre-license checks. If a pre-license check, to establish the 
identity and reliability of the recipient of the controlled items, is 
conducted through government channels, provided that:
    (i) The need for such a pre-license check is established by the 
Secretary, or by another agency, if the request for a pre-license check 
is made by such agency and the request is made in accordance with the 
following time frames;
    (A) The pre-license check is requested within 5 days of the 
determination that it is necessary; and
    (B) The analysis resulting from the pre-license check is completed 
within 5 days.
    (3) Government-to-Government assurances. Requests for government-
to-government assurances of suitable end-use of items approved for 
export or reexport when failure to obtain such assurances would result 
in rejection of the license application, provided that:
    (i) The request for such assurances is sent to the Secretary of 
State within five days of the determination that the assurances are 
required;
    (ii) The Secretary of State initiates the request of the relevant 
government within 10 days of receipt of the request for such 
assurances; and
    (iii) The license is issued within 5 days of the Secretary's 
receipt of the requested assurances.
    (4) Consultations. Consultation with other governments, if such 
consultation is provided for by a relevant bilateral

[[Page 12831]]
arrangement or multilateral regime as a precondition for approving a 
license.
    (5) Multilateral reviews. Multilateral review of a license 
application if such review is required by the relevant multilateral 
regime.
    (6) Congressional notification. Under Section 6(j) of the Export 
Administration Act, as amended (EAA), the Secretaries of Commerce and 
State are required to notify appropriate Committees of the Congress 30 
days prior to issuing a license to any country designated by the 
Secretary of State as being terrorist supporting for any items that 
could make a significant contribution to the military potential of such 
countries, or could enhance the ability of such countries to support 
acts of international terrorism. Accordingly, the issuance of any 
license subject to this requirement will be delayed for 30 days.
    (i) Designated countries. The following countries have been 
designated by the Secretary of State as terrorist-supporting countries: 
Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (ii) Items subject to notification requirement. License 
applications involving the export or reexport of the following items to 
the military, police, intelligence or other sensitive end-users are 
subject to this notification requirement:
    (A) All items controlled for national security reasons, except 
digital computers with a Composite Theoretical Performance (CTP) less 
than 500 Mtops;
    (B) All items controlled for chemical and biological weapons 
proliferation reasons;
    (C) All items controlled for missile technology reasons;
    (D) All items controlled for nuclear nonproliferation reasons; and
    (E) All items controlled by the CCL where the entry heading 
identifies the items controlled as those contained in the International 
Munitions List.
    (iii) Additional notifications. The Secretaries of Commerce and 
State must also notify the appropriate Congressional committees 30 days 
before a license is issued for the export or reexport of any item 
controlled on the CCL to a designated country if the Secretary of State 
determines that the export or reexport ``could make a significant 
contribution to the military potential of such country, including its 
military logistics capability, or could enhance the ability of such 
country to support acts of international terrorism.''
    (c) Initial processing. Within 9 days of license application 
registration, BXA will, as appropriate:
    (1) Contact the applicant if additional information is required, if 
the license application is improperly completed, or required support 
documents are missing, to request additional or corrected information;
    (2) Assure the stated classification on the license application is 
correct;
    (3) Return the license application if a license is not required 
with a statement notifying the applicant that a license is not 
required;
    (4) Approve the license application or notify the applicant of the 
intent to deny the license application; or
    (5) Refer the license application electronically along with all 
necessary recommendations and analysis concurrently to all agencies 
unless the application is subject to a Delegation of Authority. Any 
relevant information not contained in the electronic file will be 
simultaneously forwarded in paper copy.
    (d) Review by other agencies and/or interagency groups.
    (1) Within 10 days of receipt of a referral the reviewing agency 
must advise BXA of any information not contained in the referral as 
described in paragraph (c)(5) of this section. BXA will promptly 
request such information from the applicant. The time that elapses 
between the date the information is requested by the reviewing agency 
and the date the information is received by the reviewing agency will 
not be counted in processing time frames.
    (2) Within 30 days of receipt of the initial referral, the 
reviewing agency will provide BXA with a recommendation either to 
approve (with or without conditions or riders) or deny the license 
application. As appropriate, such a recommendation may be made with the 
benefit of consultation and/or discussions in interagency groups 
established to provide expertise and coordinate interagency 
consultation. These interagency groups consist of:
    (i) The Missile Technology Export Control Group (MTEC). The MTEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for missile technology reasons. The MTEC 
also reviews license applications involving items not controlled for 
missile technology (MT) reasons, but destined for a country and/or end-
use/end-user of MT concern.
    (ii) The SubGroup on Nuclear Export Coordination (SNEC). The SNEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for nuclear nonproliferation reasons. The 
SNEC also reviews license applications involving items not controlled 
for nuclear nonproliferation (NP) reasons, but destined for a country 
and/or end-use/end-user of NP concern.
    (iii) The Shield. The Shield, chaired by the Department of State, 
reviews license applications involving items controlled for chemical 
and biological weapons reasons. The Shield also reviews license 
applications involving items not controlled for chemical and biological 
weapons (CBW) reasons, but destined for a country and/or end-use/end-
user of CBW concern.
    (e) Recommendations by reviewing agencies. Reviewing agencies 
recommending denial of a license application must provide a statement 
of reasons, consistent with the provisions of the EAA or EAR, and cite 
both the statutory and the regulatory basis for the recommendation to 
deny. A reviewing agency that fails to provide a recommendation within 
30 days with a statement of reasons supported by the statutory and 
regulatory basis shall be deemed to have no objection to the final 
decision of BXA.
    (f) Interagency dispute resolution and escalation procedures--(1) 
Escalation to the Operating Committee (OC). (i) In any instance where 
the reviewing agencies are not in agreement on final disposition of a 
license application, it will be escalated to the OC for resolution. The 
Chair of the OC will consider the recommendations of the reviewing 
agencies and any information provided by the applicant in person during 
an open OC session. Each agency will be informed of the Chair's 
decision on the license application within 14 days after the deadline 
for receiving agency recommendations.
    (ii) If any agency disagrees with the OC Chair's decision, the 
agency may escalate the decision by appealing to the Chair of the 
Advisory Committee on Export Policy for resolution. If such a request 
for escalation is not made within 5 days of the decision of the OC 
Chair, the Chair's decision will be final.
    (2) Escalation to the Advisory Committee on Export Policy (ACEP). 
Requests for escalation to the ACEP must be in writing from an official 
appointed by the President with the advice and consent of the Senate, 
or a person properly acting in such capacity, and cite both the 
statutory and the regulatory basis for the appeal. The ACEP will review 
all relevant information and recommendations. The Chair of the ACEP 
will inform the reviewing agencies of the majority vote decision of the 
ACEP within 11 days from the date of receipt of the escalation request. 
Within 5 days of the decision, any dissenting agency may appeal in 
writing the ACEP's decision to the

[[Page 12832]]
Secretary of Commerce in the Secretary's capacity as the Chair of the 
Export Administration Review Board. The written request must be made by 
the head of the agency requesting escalation and cite both the 
statutory and the regulatory basis for the appeal. Within the same 
period of time, the Secretary may initiate a meeting on his or her own 
initiative to consider a license application. In the absence of a 
timely appeal, the decision of the ACEP will be final.
    (3) Escalation to the Export Administration Review Board (EARB). 
The EARB will review all relevant information and recommendations, and 
such other export control matters as may be appropriate. The Secretary 
of Commerce will inform the reviewing agencies of the majority vote 
decision of the EARB within 11 days from the date of receipt of the 
appeal. Within 5 days of the decision, any agency dissenting from the 
decision of the EARB may appeal the decision to the President. The 
appeal must be in writing from the head of the dissenting agency. In 
the absence of a timely appeal, the decision of the EARB will be final.


Sec. 750.5  Status of pending applications and other requests.

    (a) Information available. You may contact BXA for status of your 
pending Classification Request, Advisory Opinion, or license 
application. For Advisory Opinion requests, telephone (202) 482-4905 or 
send a fax to (202) 219-9179. For license applications and 
Classification requests, telephone BXA's System for Tracking Export 
License Applications (``STELA'') at (202) 482-2752. STELA is an 
automated voice response system, that upon request via any standard 
touch-tone telephone, will provide you with up to the minute status on 
any license application pending at BXA. Requests for status may be made 
only by the applicant or the applicant's agent.
    (b) STELA's hours. STELA is operational Monday through Friday from 
7:15am to 11:15pm and on Saturday from 8:00am to 4:00pm, Eastern Time. 
If you have any difficulty accessing STELA, contact during normal 
business hours, one of BXA's offices listed in Sec. 748.2(a) of the 
EAR.
    (c) Procedures to access information on STELA. Once you dial STELA 
you will be instructed to enter your Application Control Number using 
your push button telephone keys. After you enter the Application 
Control Number, STELA will provide you with the current status of your 
license application or Classification request.


Sec. 750.6  Denial of license applications.

    (a) Intent to deny notification. If BXA intends to deny your 
license application, BXA will notify you in writing within 5 days of 
the decision. The notification will include:
    (1) The intent to deny decision;
    (2) The statutory and regulatory basis for the denial;
    (3) To the extent consistent with the national security and foreign 
policy of the United States, the specific considerations that led to 
the decision to deny the license application;
    (4) What, if any, modifications or restrictions to the license 
application would allow BXA to reconsider the license application;
    (5) The name of the BXA representative in a position to discuss the 
issues with the applicant; and
    (6) The availability of appeal procedures.
    (b) Response to intent to deny notification. You will be allowed 20 
days from the date of the notification to respond to the decision 
before the license application is denied. If you respond to the 
notification, BXA will advise you if, as a result of your response, the 
decision to deny has been changed. Unless you are so advised by the 
45th day after the date of the notification, the denial will become 
final, without further notice. You will then have 45 days from the date 
of final denial to exercise the right to appeal under part 756 of the 
EAR.


Sec. 750.7  Issuance of licenses.

    (a) Scope. A license authorizes only a specific transaction, or 
series of transactions, as described in the license application and any 
supporting documents. A license application may be approved in whole or 
in part or further limited by conditions or other restrictions 
appearing on the license itself or in the EAR. When a license 
application is approved by the BXA, a license is issued as described in 
paragraph (b) of this section.
    (b) Issuance of a license. After a license application is approved, 
a computer generated license is issued by the Department of Commerce 
bearing the license number and a validation date. Where appropriate, 
the license will also show an expiration date. Where necessary, 
attachments to a license will also be validated with the Department of 
Commerce seal and the date of validation. Exporters must use the 
complete license number when preparing a Shipper's Export Declaration 
(SED) and other export control documents, and in communicating with the 
Department of Commerce concerning the license.
    (c) Changes to the license. The following non-material changes do 
not require submission of a ``Replacement'' license or any other 
notification to BXA. (If you wish to make any change not identified in 
this paragraph, you will need to submit a ``Replacement'' license in 
accordance with the instructions contained in Supplement No. 1 to part 
748 of the EAR, Block 11):
    (1) Decrease in unit price or total value;
    (2) Increase in price or quantity if permitted under the shipping 
tolerances in Sec. 750.11 of this part;
    (3) Increase in price that can be justified on the basis of changes 
in point of delivery, port of export, or as a result of transportation 
cost, drayage, port charges, warehousing, currency fluctuations, etc.;
    (4) Establishment of unit or total price in conformance with a 
``price statement'' on a license that permits price to be based on the 
market price at a specified date plus an exporter's mark-up, or like 
basis;
    (5) Change in intermediate consignee if the new intermediate 
consignee is located in the country of ultimate destination as shown on 
the license, except a change in, or addition of, an intermediate 
consignee involving a consolidated shipment;
    (6) Change in continuity of shipment by unloading from carrier at a 
country listed in Country Group B (see Supplement No. 1 to part 740 of 
the EAR) port not in the country of ultimate destination, without the 
designation of an intermediate consignee on the shipping documents and 
license, provided:
    (i) The purpose is to transfer the shipment to another vessel, 
barge, or vehicle, solely for onforwarding to the country of 
destination shown on the shipping documents and the license;
    (ii) The shipment is moving on a through bill of lading;
    (iii) The carrier is not registered in, owned or controlled by, or 
under charter or lease to a country in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of the EAR), or a national of any of these 
countries;
    (iv) The carrier retains custody of the shipment until it is 
delivered to the ultimate consignee; and
    (v) The original bill of lading or air waybill first issued at the 
port of export is delivered with the shipment to the ultimate 
consignee;
    (7) Change in address of purchaser or ultimate consignee if the new 
address is located within the same country shown on the license; or
    (8) Change in ECCN, unit of quantity, unit price, or wording of the 
item

[[Page 12833]]
description (where necessary only for the purpose of conforming to an 
official revision in the CCL). This does not cover an actual change in 
the item to be shipped, or an increase in the price or quantity.
    (d) Responsibility of the licensee. If a license is issued to you, 
you become the licensee. The licensee will be held accountable for use 
of the license, whether as a principal (exporting for your own account) 
or as an agent (including an agent acting for the account of a foreign 
principal who is not subject to the jurisdiction of the United States). 
You, as the licensee, assume responsibility for effecting the export or 
reexport, for proper use of the license, and for due performance of all 
of the license's terms and conditions. The obligations arising under 
the provisions of the EAA and the EAR are the same whether the license 
application is submitted and issued in writing or electronically.
    (e) Prohibited use of a license. No person convicted of a violation 
of any statute specified in section 11(h) of the EAA, at the discretion 
of the Secretary of Commerce, may apply for any license for a period up 
to 10 years from the date of the conviction. See Sec. 766.25 of the 
EAR.
    (f) Quantity of commodities authorized. Unlike software and 
technology, commodities will be approved with a quantity or dollar 
value limit. The ``Unit'' paragraph within each CCL commodity entry 
will list a specific ``Unit'' for those commodities controlled by that 
entry. Any license resulting from a license application to export or 
reexport commodities will be licensed in terms of the specified 
``Unit''. If a commodity is licensed in terms of ``$ value'', the unit 
of quantity commonly used in trade may also be shown on the license. 
Though this unit may be shown on the approved license, the quantity of 
commodities authorized is limited entirely by the total dollar value 
shown on the approved license.
    (g) License validity period. Licenses involving the export or 
reexport of items will generally have a 24-month validity period, 
unless a different validity period has been requested and specifically 
approved by BXA. Exceptions from the 24-month validity period include, 
license applications reviewed and approved as an ``emergency'' (See 
Sec. 748.5 (g) of the EAR), license applications for items controlled 
for short supply reasons, and Special Comprehensive Licenses.
    Emergency licenses will expire no later than the last day of the 
calendar month following the month in which the emergency license is 
issued. Licenses for items controlled for short supply reasons will be 
limited to a 12-month validity period. The expiration date will be 
clearly stated on the face of the license. If the expiration date falls 
on a legal holiday (Federal or State), the validity period is 
automatically extended to midnight of the first day of business 
following the expiration date. (See part 752 of the EAR for validity 
periods for Special Comprehensive Licenses.)
    (1) Extended validity period. Validity periods in excess of 24 
months generally will not be granted. BXA will consider granting a 
validity period exceeding 24 months when extenuating circumstances 
warrant such an extension, however, no changes will be approved related 
to any other particular on the license (e.g., parties to the 
transaction, countries of ultimate destination, etc.). For example, an 
extended validity period will generally be granted where the 
transaction is related to a multi-year project, when production lead 
time will not permit an export or reexport during the original validity 
period of the license, when an unforeseen emergency prevents shipment 
within the 24-month validity of the license, or for other similar 
circumstances. A continuing requirement to supply spare or replacement 
parts will not normally justify an extended validity period. Licenses 
issued in accordance with the emergency clearance provisions contained 
in Sec. 748.5(g) of the EAR will not be extended. See Sec. 752.9 of the 
EAR for information relating to the extension of a Special 
Comprehensive License.
    (2) Request for extension. (i) The applicant must submit a letter 
in writing to request an extension in the validity period of a 
previously approved license. The subject of the letter must be titled: 
``Request for Validity Period Extension'' and contain the following 
information:
    (A) The name, address, and telephone number of the requestor;
    (B) A copy of the original license, with the license number, 
validation date, and current expiration date legible; and
    (C) Justification for the extension;
    (ii) It is the responsibility of the applicant to ensure that all 
applicable support documents remain valid and are in the possession of 
the applicant. If the request for extension is approved, BXA will 
provide the applicant with a written response.
    (h) Specific types of licenses--(1) Licenses for temporary exports 
or reexports. If you have been granted a license for the temporary 
export or reexport of items and you decide not to return the items to 
the United States, you must submit a license application requesting 
authorization to dispose of the items. Except when the items are to be 
used on a temporary basis at a new destination (and returned to the 
United States after such use), you must ensure that your license 
application is accompanied by all documents that would be required if 
you had requested a license to export or reexport the same item 
directly to the new destination.
    (2) Intransit within the United States. If you have been issued a 
license authorizing an intransit shipment (that does not qualify for 
License Exception TUS) through the United States, your license will be 
valid only for the export of the intransit shipment wholly of foreign 
origin and for which a Transportation and Exportation customs entry or 
an Immediate Exportation customs entry is outstanding.
    (3) Intransit outside the United States. If you have been issued a 
license authorizing unlading or transit through a country listed in the 
General Prohibition Eight contained in Sec. 736.2(b)(8) of the EAR, and 
you did not know the identity of the intermediate consignee at the time 
of the original license application, you must notify BXA in writing 
once you have ascertained the identity of the intermediate consignee. 
Your notification must contain the original license number, and the 
complete name, address, and telephone number of the intermediate 
consignee. The written request must be submitted to BXA at the address 
listed in Sec. 748.2(c) of the EAR.
    (4) Replacement license. If you have been issued a ``replacement'' 
license (for changes to your original license that were not covered in 
paragraph (c) of this section), you must attach the ``replacement'' 
license to the original, and retain both.
    (i) Records. If you have been issued a license you must retain the 
license, and maintain complete records in accordance with part 762 of 
the EAR including any licenses (whether used or unused, valid or 
expired) and all supporting documents and shipping records.


Sec. 750.8  Revocation or suspension of licenses.

    (a) Revocation. All licenses for exports or reexports are subject 
to revision, suspension, or revocation, in whole or in part, without 
notice whenever it is known that the EAR have been violated or that a 
violation is about to occur. BXA's Office of Exporter Services may 
revoke any license in which a person who has been convicted of one of 
the statutes specified in section 11(h) of the EAA, at the

[[Page 12834]]
discretion of the Secretary of Commerce, has an interest in the license 
at the time of the conviction. It may be necessary for BXA to stop a 
shipment or an export or reexport transaction at any stage in the 
process (e.g., in order to prevent an unauthorized export or reexport). 
If a shipment is already en route, it may be further necessary for BXA 
to order the return or unloading of such shipment at any port of call 
in accordance with the provisions of the EAA.
    (b) Return of revoked or suspended licenses. If BXA revokes or 
suspends a license, the licensee shall return the license immediately 
upon notification that the license has been suspended or revoked. The 
license must be returned to BXA at the address listed in Sec. 748.2(c) 
of the EAR, Attn:'' Return of Revoked/Suspended License''. All 
applicable supporting documents and records of shipments must be 
retained by the licensee in accordance with the recordkeeping 
provisions of part 762 of the EAR. If the licensee fails to return a 
license immediately upon notification that it has been suspended or 
revoked, BXA may impose sanctions provided for in part 764 of the EAR.


Sec. 750.9  Duplicate licenses.

    (a) Lost, stolen or destroyed. If a license is lost, stolen or 
destroyed, you, as the licensee, may obtain a duplicate of the license 
by submitting a letter to the BXA at the address listed in 
Sec. 748.2(c) of the EAR, Attention: Duplicate License Request''. You 
must certify in your letter:
    (1) That the original license ([number] issued to [name and address 
of licensee]) has been lost, stolen or destroyed;
    (2) The circumstances under which it was lost, stolen or destroyed; 
and
    (3) If the original license is found, the licensee will return 
either the original or duplicate license to the BXA. Note that if 
shipment was made against the original license, those shipments must be 
counted against the duplicate license. If you are issued a duplicate 
license you must retain the duplicate license in accordance with the 
recordkeeping provisions of part 762 of the EAR.
    (b) Hong Kong Trade Department. BXA will automatically issue a 
duplicate license whenever the license lists a party in Hong Kong as 
the intermediate consignee, or when Hong Kong is identified as the 
country from which the reexport will take place. The duplicate license 
will be labeled ``Duplicate for Hong Kong Trade Department''. This 
duplicate must be forwarded to the reexporter or intermediate consignee 
for submission to the Hong Kong Trade Department. The original license 
must be retained on file by the licensee in accordance with the 
recordkeeping provisions contained in part 762 of the EAR.


Sec. 750.10  Transfers of licenses for exports.

    (a) Authorization. As the licensee, you may not transfer a license 
issued for the export of items from the United States to any other 
party, except with the prior written approval of BXA. BXA may authorize 
a transfer of a license for export to a transferee who is subject to 
the jurisdiction of the United States, is a principal party in 
interest, and will assume all powers and responsibilities under the 
license for the control of the shipment of the items out of the United 
States. BXA will approve only one transfer of the same license and only 
transfers of licenses to export items.
    (b) How to request the transfer of licenses--(1) Letter from 
licensee. You, as the licensee, must submit a letter in writing to 
request a transfer of a license or licenses. The letter must contain 
the following information:
    (i) The reasons for the requested transfer;
    (ii) Either a list of the outstanding license numbers or a 
statement that all outstanding licenses in the name of the licensee are 
to be transferred, and the total number of such outstanding licenses;
    (iii) A list of all license applications for export to be 
transferred that are pending with BXA, identifying the Application 
Control Number for each, or other information that will assist in 
identifying the pending license applications;
    (iv) Name and address of the person you intend to transfer the 
licenses and license applications to;
    (v) The facts necessitating transfer;
    (vi) A statement as to whether or not any consideration has been, 
or will be, paid for the transfer; and
    (vii) Identification by name of the legal document (certificate, 
agreement, etc.) or other authority by which the new firm name is 
legally established, the new corporation or firm created, or the assets 
transferred and showing the effective date of such document and the 
state where filed or recorded.
    (2) Information from transferee. The person to whom you wish to 
transfer your license(s) must provide you a signed letter, that must be 
submitted with your request, containing the following:
    (i) That the transferee is a principal party in interest in the 
transaction covered by the license, or is acting as agent for a 
principal party in interest;
    (ii) That the transferee is subject to the jurisdiction of the 
United States;
    (iii) That the transferee assumes all powers and responsibilities 
under the license for the control of the shipment of the items out of 
the United States;
    (iv) Whether any consideration has been, has not been, or will be 
paid for the transfer;
    (v) The name and address of the foreign principal in instances 
where the transferee will make the export as an agent on behalf of a 
foreign principal; and
    (vi) If the license is to be transferred to a subsidiary or firm, 
or if you transfer to the transferee all, or a substantial portion, of 
your assets or business, the transferee must certify that the legal 
authority changing the exporter imposes on the transferee the 
responsibility to accept and fulfill the obligations of the transferor 
under the transactions covered by the license; and
    (vii) The following certification:
    The undersigned hereby certifies that, if license number(s) 
____________ is (are) transferred in accordance with my (our) request, 
any and all documents evidencing the order covered by this (these) 
license(s) will be retained and made available upon request in 
compliance with the recordkeeping provisions contained in Part 762 of 
the Export Administration Regulations. The undersigned further 
certifies compliance with all requirements of the Export Administration 
Regulations regarding these licenses.
    (c) Notification of transfer and recordkeeping. Unless instructed 
otherwise by BXA, you must retain the license(s) pending notification 
by the BXA of the action taken. If the request is approved, you must 
forward the license(s) to the transferee and the validated letter 
received from BXA authorizing the transfer. If the transfer request is 
not approved, the license(s) must either be returned to BXA or used by 
you if you so choose and have retained the legal and operational 
capacity fully to meet the responsibilities imposed by the license(s). 
If your initial request is returned by BXA for additional information, 
after obtaining the necessary information you may resubmit your 
request.


Sec. 750.11  Shipping tolerances.

    (a) Applicability and use of shipping tolerances. Under some 
circumstances, you may use a license issued for the export of items 
from the United States to export more than the quantity or value shown 
on that license. This additional amount is called a shipping tolerance. 
This section tells you, as the licensee, when you may take advantage of 
a shipping tolerance and the amount

[[Page 12835]]
of shipping tolerance you are permitted to use.
    (1) If you have already shipped the full amount approved on your 
license, you may not use this shipping tolerance provision. No further 
shipment may be made under the license.
    (2) The amount of shipping tolerance you are permitted is based on 
the ``Unit'' specified for the item you want to export in the 
applicable ECCN on the CCL (see Supplement No. 1 to part 774 of the 
EAR). You must calculate shipping tolerance based on the applicable 
``Unit'' whether that be Number, Dollar Value, or Area, Weight, or 
other Measure. You may not use any other unit that may appear on your 
license.
    (b) Calculating shipping tolerances. There are three basic rules, 
one for items licensed by ``Dollar Value'', one for items licensed by 
``Number'', and another for items licensed by ``Area, Weight or other 
Measure''.
    (1) Items licensed by ``Dollar Value''. If the ``Unit'' paragraph 
in the ECCN applicable to your item reads ``Sec. value'' or ``in 
Sec. value'', there is no shipping tolerance. You may not ship more 
than the total dollar value stated on your license.
    (2) Items licensed by ``Number''. If the ``Unit'' paragraph in the 
ECCN applicable to your item reads ``Number'' or ``in Number'', there 
is no shipping tolerance with respect to the number of units. However, 
the value of all of your shipments under one license may exceed the 
total dollar value stated on that license by up to 25%.
    (3) Items licensed by ``Area, Weight or Measure''. If the ``Unit'' 
paragraph in the ECCN applicable to your item reads ``kilograms'' or 
``square meters'' or some other unit of area, weight or measure, your 
shipment may exceed the unshipped balance of the area, weight or other 
measure listed on your license by up to 10% and the total dollar value 
shown on your license by up to 25%, unless;
    (i) Your license stipulates a specific shipping tolerance; or
    (ii) Your item is controlled for short supply reasons and a smaller 
tolerance has been established. (See part 754 of the EAR).
    (c) Examples of shipping tolerances.--(1) A license authorizes the 
export of 100,000 kilograms of an item controlled by an ECCN where the 
``Unit'' is stated as ``kilograms'', the total cost of which is 
$1,000,000:
    (i) One shipment. If one shipment is made, the quantity that may be 
exported may not exceed 110,000 kg (10% tolerance on the unshipped 
Area, Weight, or Measure balance), and the total cost of that one 
shipment may not exceed $1,250,000:

$1,000,000..  (the total value shown on the license)                    
+250,000....  (25% of the total value shown on the license)             
-------------                                                           
$1,250,000..                                                            
                                                                        

    (ii) Two shipments. If the first shipment is for 40,000 kg (valued 
at $400,000), the second shipment may not exceed 66,000 kg (10% of the 
unshipped balance of 60,000 kg (6,000 kg) plus the unshipped balance), 
and the total cost of the second shipment shall not exceed $850,000:

$600,000....  (the value of the unshipped balance of 60,000 kg)         
+250,000....  (25% of the original total value shown on the license)    
-------------                                                           
$850,000....                                                            
                                                                        

    (iii) Three shipments. If the first shipment is for 40,000 kg 
(valued at $400,000) the second shipment is for 20,000 kg (valued at 
$200,000), the third shipment may not exceed 44,000 kg (10% of the 
unshipped balance of 40,000 kg (4,000 kg) plus the unshipped balance), 
and the total cost of the third shipment can not exceed $650,000:

$400,000....  (the value of the unshipped balance of 40,000 kg)         
+250,000....  (25% of the original total value on the license)          
-------------                                                           
$650,000....                                                            
                                                                        

    (2) A license authorizes the export of an item controlled by an 
ECCN where the ``Unit'' is stated as ``$ value'', the total cost of 
which is $5,000,000. There is no shipping tolerance on this license 
because the items are controlled by an ECCN where ``$ value'' is the 
stated ``Unit''.
    (3) A license authorizes the export of 10 pieces of equipment 
controlled by an ECCN where the ``Unit'' is stated as ``Number'', with 
a total value of $10,000,000 and the export of parts and accessories 
covered by that same entry valued at $1,000,000:
    (i)(A) If one shipment is made, the quantity of equipment that may 
be exported may not exceed 10 pieces of equipment because there is no 
shipping tolerance on the ``number'' of units. That one shipment of 
equipment may not exceed $12,500,000:

$10,000,000.  (the total value shown on the license)                    
+2,500,000..  (25% of the total value shown on the license)             
-------------                                                           
$12,500,000.                                                            
                                                                        

    (B) If the one shipment includes parts and accessories, those parts 
and accessories may not exceed $1,000,000 because there is no shipping 
tolerance on any commodity licensed in terms of dollar value.
    (ii)(A) If the first shipment is for 4 pieces of equipment valued 
at $4,000,000, the second shipment may not exceed 6 pieces of equipment 
(no tolerance on ``number'') valued at no more than $8,500,000:

$6,000,000..  (the value of the unshipped 6 pieces).                    
+2,500,000..  (25% of the original total value shown on the license).   
-------------                                                           
$8,500,000..                                                            
                                                                        

    (B) If the first shipment includes $300,000 of parts and 
accessories, the second shipment may not exceed $700,000 of parts and 
accessories because there is no shipping tolerance on any commodity 
licensed in terms of dollar value.
    (iii)(A) If the first shipment is for 4 pieces of equipment valued 
at $4,000,000 and the second shipment is for 3 pieces of equipment 
valued at $3,000,000, the third shipment may not exceed 3 pieces of 
equipment (no tolerance on ``number'') valued at no more than 
$5,500,000:

$3,000,000..  (the value of the unshipped 3 pieces).                    
+2,500,000..  (25% of the original value shown on the license),         
-------------                                                           
$5,500,000..                                                            
                                                                        

    (B) If the first shipment includes $300,000 of parts and 
accessories and the second shipment includes another $300,000, the 
third shipment may not exceed $400,000 because there is no shipping 
tolerance on commodities licensed in terms of dollar value.

PART 752--SPECIAL COMPREHENSIVE LICENSE

Sec.
752.1  Scope.
752.2  Eligible activities.
752.3  Eligible items.
752.4  Eligible countries.
752.5  Steps you must follow to apply for an SCL.
752.6  Reexports.
752.7  Direct shipment to customers.
752.8  SCL application review process.
752.9  Action on SCL applications.
752.10  Changes to the SCL.
752.11  Internal Control Programs.
752.12  Recordkeeping requirements.
752.13  Inspection of records.
752.14  System reviews.
752.15  Export clearance.
752.16  Administrative actions.
752.17  BXA mailing addresses.

[[Page 12836]]


Supplement No. 1 to Part 752: Instructions for Completing Form BXA-
748P, Multipurpose Application, for Requests for Special Comprehensive 
Licenses

Supplement No. 2 to Part 752: Instructions for Completing Form BXA-
748P-A, Item Annex

Supplement No. 3 to Part 752: Instructions for Completing Form BXA-752, 
Statement by Consignee in Support of Special Comprehensive License

Supplement No. 4 to Part 752: Instructions for Completing Form BXA-752-
A, Reexport Territories

Supplement No. 5 to Part 752: Instructions for Completing Form BXA-
748P-B End-User Appendix

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 752.1  Scope.

    (a)(1) Introduction. In this part, references to the EAR are 
references to 15 CFR chapter VII, subchapter C. This part describes the 
provisions of the Special Comprehensive License (SCL). You may apply 
for an SCL, when appropriate, in lieu of a license described in part 
748 of the EAR, or a License Exception described in part 740 of the 
EAR, for multiple exports and reexports of items subject to the EAR. 
The SCL provides authorization to make specified exports and reexports 
that are otherwise prohibited by General Prohibitions One, Two, and 
Three described in part 734 of the EAR. The existence of an SCL does 
not supersede an exporter's obligation to request a separate license as 
may be required by part 744 of the EAR. Because the Bureau of Export 
Administration (BXA) does not review each individual transaction 
authorized by an SCL, parties to the SCL must have the mechanisms in 
place to ensure that each export and reexport made under an SCL meets 
all the terms and conditions of the license and are in accordance with 
all applicable provisions of the EAR. It is through the design and 
effective implementation of an Internal Control Program (ICP) that the 
SCL holder and the SCL consignee (referred to as ``consignee'' for 
purposes of this part) assure that exports and reexports are not made 
contrary to the EAR.
    (2) Definitions. (i) SCL holder. As used in this part, ``SCL 
holder'' is that party approved on an SCL to perform activities 
approved under the SCL.
    (ii) SCL consignee. As used in this part, ``SCL consignee'' or 
``consignee'' means any party authorized to receive items under the SCL 
and named as a consignee on an approved Form BXA-752, Statement by 
Consignee in Support of Special Comprehensive License.
    (b) ICP requirement. To qualify for an SCL, you must develop an 
ICP. Section 752.11 of this part includes a general description of the 
elements of the ICP, and guidance on which elements your company must 
implement before making shipments under the SCL. The elements of the 
ICP your company will develop reflect the complexity of the activities 
authorized under the SCL, the countries and items involved, and the 
relationship between the SCL holder and the approved consignees. BXA 
may require you to include in your ICP any combination of elements, 
depending upon the nature of your SCL application. During your pre-
application consultation required by Sec. 752.5(a)(1), BXA will provide 
you guidance on which elements you must implement.


Sec. 752.2  Eligible activities.

    (a) Possible authorizations. Under the SCL, BXA may authorize you 
to perform any number of activities, which can be grouped under the 
general categories of ``service'', ``end-user'', ``distribution'' and 
``other'' activities. Examples of the general categories include:
    (1) Service activities. Exporting items subject to the EAR as spare 
and replacement parts for servicing or stocking.
    (2) End-user activities. Exporting and reexporting items subject to 
the EAR for use as capital equipment.
    (3) Distribution activities. Exporting and reexporting items 
subject to the EAR for the purpose of resale and reexport by 
consignees.
    (4) Other activities. Other activities not included in paragraphs 
(a)(1) through (a)(3) of this section may be authorized by BXA under 
the SCL on a case-by-case basis.
    (b) Prohibited activities. The general prohibitions described in 
Sec. 736.2(b)(4) through (10) of the EAR apply to all exports and 
reexports by, and conduct of, all parties approved on your SCL, unless 
you are specifically authorized under the SCL to perform such 
activities, or the particular activity otherwise qualifies for a 
License Exception described in part 740 of the EAR.


Sec. 752.3  Eligible items.

    (a) All items subject to the EAR, including items eligible for 
License Exceptions described in part 740 of the EAR, are eligible for 
export and reexport under the SCL, except:
    (1) Items controlled for missile technology reasons that are 
identified by the letters MT in the applicable ``Reason for Control'' 
paragraph on the Commerce Control List (CCL) (see Supplement No. 1 to 
part 774 of the EAR);
    (2) Items controlled by ECCNs 1C351, 1C352, 1C353, 1C354, 1E001, 
1E351, 1E391, 2B352, and 2E301 on the CCL that can be used in the 
production of biological weapons;
    (3) Items controlled by ECCNs 1C350, 1D390, 1E001, 1E350, 1E391, 
2B350, and 2B351 on the CCL that can be used in the production of 
chemical weapons precursors and chemical warfare agents, to 
destinations listed in Country Group D:3 (see Supplement No. 1 to part 
740 of the EAR);
    (4) Items controlled for short supply reasons that are identified 
by the letters ``SS'' in the applicable ``Reason for Control'' 
paragraph on the CCL;
    (5) Maritime (civil) nuclear propulsion systems or associated 
design or production software and technology identified in Sec. 744.5 
of the EAR;
    (6) Communications intercepting devices controlled by ECCN 5A980 on 
the CCL;
    (7) Items specifically identified as ineligible by BXA on your 
approved SCL; and
    (8) Additional items consistent with international commitments.
    (b) Items controlled for nuclear nonproliferation reasons that are 
identified by the letters NP in the applicable ``Reason for Control'' 
paragraph on the CCL may be authorized on a case-by-case basis provided 
controls are in place to screen for proscribed end-users or end-uses.


Sec. 752.4  Eligible countries.

    (a) General provisions. All countries are eligible under the SCL 
except:
    (1) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (2) Other countries that BXA may designate on a case-by-case basis 
as ineligible to receive items under the SCL.
    (b) Servicing prohibitions. Under the SCL, you may not service any 
item when you know that the item is owned or controlled by, or under 
the lease or charter of, entities in countries identified in paragraphs 
(a)(1) and (a)(2) of this section or any national of such countries.


Sec. 752.5  Steps you must follow to apply for an SCL.

    (a) Step One: Establish applicant reliability--(1) Pre-application 
consultation. To apply for an SCL, BXA must determine your reliability 
as a potential SCL holder. BXA usually does this through consultation 
with company officials and a review of the criteria identified in 
paragraph (a)(2) of this

[[Page 12837]]
section. To determine whether your company requires a consultation 
before you apply for an SCL, contact BXA at the address, phone, or 
telefacsimile numbers included in Sec. 752.17 of this part.
    (2) Criteria for determining eligibility. BXA will review the 
following criteria to help determine SCL holder eligibility:
    (i) Evidence of past licensing history and projected, continuous 
large volume exports;
    (ii) Reliability of all parties relative to their compliance with 
the EAR;
    (iii) Commitment of all parties of the necessary resources to 
implement and maintain an adequate ICP; and
    (iv) Evidence of all parties knowledge of all provisions of the 
EAR.
    (b) Step Two: Establish consignee reliability--(1) Requirements. 
You must make an initial determination of the reliability of all 
consignees that are listed on your application for an SCL, based upon 
the criteria described in paragraph (b)(2) of this section.
    (2) Determining reliability. The criteria that you should take into 
consideration include, but are not limited to, the following:
    (i) Criteria. (A) The proposed consignee has a satisfactory record 
established through BXA pre-license checks, or extensive experience as 
a consignee under any license issued by BXA;
    (B) The proposed consignee is a wholly-owned subsidiary or a 
controlled-in-fact affiliate of the applicant or of a consignee that is 
already approved on an SCL. See part 772 of the EAR for a definition of 
controlled-in-fact; or
    (C) You have evidence of an established, on-going business 
relationship with the proposed consignee.
    (ii) Exception. The provisions of paragraph (b)(2)(i) of this 
section do not preclude the authority of BXA to determine the 
reliability and eligibility of a proposed consignee. BXA may, based 
upon any negative information on the proposed consignees, deny a 
proposed consignee.
    (c) Step Three: Prepare your documentation. Complete Form BXA-748P, 
Multipurpose Application, Form BXA-748P-A, Item Appendix, Form BXA-
748P-B, End-User Appendix, an ICP, a comprehensive narrative statement, 
Form BXA-752, Statement by Consignee in Support of Special 
Comprehensive License, Form BXA-752-A, Reexport Territories, and all 
applicable certifications. Submit this documentation to BXA at one of 
the addresses included in Sec. 752.17 of this part.
    (1) Form BXA-748P, Multipurpose Application, and Form BXA-748P-A, 
Item Appendix. You must complete Form BXA-748P and Form 748P-A 
according to the instructions found in Supplement Nos. 1 and 2 of this 
part.
    (2) Form BXA-748P-B, End-User Appendix. You must identify end-users 
on Form BXA-748P-B if you are requesting approval to export or reexport 
items controlled for nuclear nonproliferation or chemical and 
biological control reasons.
    (3) ICP. You must provide a copy of your proposed ICP as required 
by Sec. 752.11 of this part. You must indicate whether any of the 
elements of the ICP will not be implemented and explain why these 
elements were deemed inapplicable. Existence of a properly constructed 
ICP will not relieve you of your responsibility to comply with 
requirements of all applicable regulations pertaining to your SCL;
    (4) Comprehensive narrative statement. Prepare a comprehensive 
narrative statement on your company letterhead that includes the 
following information:
    (i) An overview of the total business activity that will be 
performed by you and all other parties who will receive items under the 
authority of your SCL, including consignees, subcontractors, and 
vessels;
    (ii) A description of the nature and anticipated volume of regular 
and repetitive transactions proposed by consignees under the license;
    (iii) An explanation of the relationship between the parties to the 
application, such as affiliate, subsidiary, or parent, etc;
    (iv) A certification that you will implement, upon approval of the 
application by BXA, an ICP that incorporates all applicable elements 
listed in Sec. 752.11 of this part and any additional elements as 
required by BXA upon approval of the SCL; and
    (v) Information on whether proposed consignees are end-users or 
will reexport the items received under your SCL. You must describe the 
proposed consignee's activities completely to determine the appropriate 
ICP elements that you and your consignees must implement.
    (5) Form BXA-752, Statement of Consignee in Support of Special 
Comprehensive License. This Form is completed by each consignee. You 
must submit one completed, signed, original Form BXA-752 for each 
proposed consignee on your SCL application. See Supplement No. 3 to 
this part for instructions on completing Form BXA-752. Form BXA-752 is 
not required if the proposed consignee is both an end-user and a 
``foreign government agency'' as defined in part 772 of the EAR.
    (6) Form BXA-752-A, Reexport Territories. You must complete Form 
BXA-752-A, and attach it to the appropriate Form BXA-752, whenever 
Blocks 8B, 8C, 8E, and/or 8F are selected on Form BXA-752. See the 
instruction found in Supplement No. 3 to this part. Form BXA-752-A is 
not required if the proposed consignee is both an end-user and a 
foreign government agency (see part 772 of the EAR for a definition of 
foreign government agency).
    (7) Consignee certifications. Each consignee must provide certain 
certifications on company letterhead that is signed by the consignee. 
Attach certifications to the appropriate Form BXA-752. Each consignee 
must certify that:
    (i) They will implement, upon approval of the SCL by BXA, an ICP 
that incorporates all applicable elements listed in Sec. 752.11 of this 
part and any additional elements as required by BXA upon approval of 
your SCL. If certain elements of an ICP will not be included, state the 
reasons for that determination;
    (ii) They will comply with all provisions of the EAR, including the 
recordkeeping provisions of part 762 of the EAR, all applicable system 
review requirements of Sec. 752.14 of this part, and the reexport 
restrictions of Sec. 752.6 of this part; and
    (iii) They will make available for inspection, upon request by BXA, 
all records required by Sec. 752.12 of this part and part 762 of the 
EAR.
    (8) Additional certifications. (i) Temporary exports. Proposed 
consignees that plan to exhibit or demonstrate items in countries other 
than those in which they are located or are authorized under an SCL, an 
approved Form BXA-752, or a License Exception described in 
Sec. 740.4(a)(2)(iii) of the EAR may obtain permission to do so by 
including the following additional certification on company letterhead, 
and attaching it to Form BXA-752.

    I (We) request authorization to reexport temporarily, for 
exhibit or demonstration in countries eligible to receive items 
under the Special Comprehensive License. The items exported will be 
retained under my (our) ownership and control, and will be returned 
by me (us) to (name destination) promptly after their exhibit or 
demonstration abroad, and in no case later than one year after the 
date of reexport, unless other disposition is authorized in writing 
by the Bureau of Export Administration.

    (ii) Chemicals and chemical and biological equipment certification. 
If you are requesting authority to export chemicals or chemical and 
biological

[[Page 12838]]
equipment eligible for the SCL (items controlled by ECCNs 1C351, 1C352, 
1C353, 1C354, 1D390, 1E001, 1E350, 1E351, 1E391, 2B350, 2B351, 2B352, 
and 2E301 (see Supplement No. 1 to part 774 of the EAR), all consignees 
not located in country group A:3 (see Supplement No. 1 to part 740 of 
the EAR) must include the following certification on company 
letterhead:

    No chemicals or chemical or biological equipment received under 
this Special Comprehensive License will be transferred, resold, or 
reexported to a destination that requires a license, unless the new 
end-user has been approved by the Bureau of Export Administration, 
and in no case will the items be transferred, resold, or reexported 
to a party who is not the end-user.

    (iii) Nuclear proliferation certification. If you are requesting 
the export or reexport under the EAR of items controlled for nuclear 
nonproliferation reasons described in Sec. 744.2 of the EAR, prior to 
submitting an SCL application, you must obtain a signed written 
statement from the proposed consignee(s) and end-users certifying the 
following:
    (A) The items to be exported or replicas thereof (``replicas'' 
refer to items produced abroad based on physical examination of the 
items originally exported, matching it in all critical design and 
performance parameters), will not be used in any of the activities 
described in Sec. 744.2 of the EAR; and
    (B) Written authorization will be obtained from BXA prior to 
transferring or reexporting the items, unless they are destined to 
Canada or would not require a license to the new country of 
destination.


Sec. 752.6  Reexports.

    (a) Authorized reexports. All consignees may reexport items without 
approval from BXA under any one of the following circumstances, unless 
otherwise specifically excluded by the provisions of the EAR or by a 
condition placed on your SCL.
    (1) Reexports that qualify for a License Exception authorized by 
part 740 of the EAR;
    (2) Reexports to destinations approved by BXA through validation of 
Form BXA-752 and/or Form BXA-752-A according to the terms stated on the 
Form BXA-752 or BXA-752-A; or
    (3) Reexports of items approved under an SCL to and among other 
consignees approved on the same SCL, provided that the items are 
eligible to the new destination in accordance with your approved SCL 
and Sec. 752.3 of this part.
    (b) Prohibitions. You are prohibited from the following activities 
without specific authorization from BXA:
    (1) Transferring, reselling, or reexporting under your SCL any 
chemicals or chemical and biological equipment (ECCNs identified with 
the letters CB in the applicable ``Reason for Control'' paragraph on 
the CCL (see Supplement No. 1 to part 774 of the EAR); and
    (2) Reexporting under your SCL items identified by the letters NP 
in the applicable ``Reason for Control'' paragraph on the CCL to 
destinations not listed in country group A:4 (see Supplement No. 1 to 
part 740).
    (c) Sourcing. Consignees who obtain U.S.-origin items abroad that 
are eligible for the SCL but that are subject to General Prohibitions 
One, Two, or Three (see part 734 of the EAR) may reexport them under 
the authority of your SCL, provided that they are reexported in 
accordance with the ICP required by Sec. 752.11 of this part, and any 
other applicable conditions or reexport restriction placed on your SCL 
by BXA. Either the SCL holder or the consignee through the SCL holder 
must submit the sourcing request for reexport of items on Form BXA-752.


Sec. 752.7  Direct shipment to customers.

    (a) General authorization. (1) Upon request by a consignee, an SCL 
holder or another consignee approved under the same SCL is authorized 
to deliver products directly to the requesting consignee's customer in 
either:
    (i) The requesting consignee's country; or
    (ii) Another country authorized to receive items under the 
requesting consignee's validated Form BXA-752-A.
    (2) The SCL holder or consignee making direct shipments authorized 
by this section must implement an ICP containing procedures governing 
such shipments.
    (3) SCL holders and consignees using the direct shipment provision 
may invoice the shipments directly to the requesting consignee's 
customers if copies of applicable invoices are maintained by both the 
shipping party and requesting consignee.
    (b) Procedures--(1) Exports by an SCL holder. The SCL holder may 
make a direct shipment by entering on the Shipper's Export Declaration 
the name and address of the customer as ultimate consignee and adding 
the notation ``by order of (name and address of consignee requesting 
the direct shipment)''. The notation must appear below the item 
description and must cite the SCL number followed by the three digit 
number of the consignee requesting the ``by order of'' shipment.
    (2) Reexports by a consignee. An approved consignee may make a 
direct reexport shipment to a customer of another approved consignee on 
the same SCL by showing on the commercial invoice the name and address 
of the customer as ultimate consignee and adding the notation ``by 
order of (name and address of consignee requesting the direct 
shipment).''


Sec. 752.8  SCL application review process.

    (a) Scope. Under an SCL, you are authorized to make multiple 
exports and reexports without review and approval of each individual 
transaction by BXA. To approve an SCL, BXA must be satisfied that the 
persons benefiting from this license will adhere to the conditions of 
the license and the EAR, and that approval of the application will not 
be detrimental to U.S. national security, nonproliferation, or foreign 
policy interests. In reviewing and approving a specific SCL request, 
BXA retains the right to limit the eligibility of items or to prohibit 
the export, reexport, or transfer of items under the SCL to specific 
firms, individuals, or countries.
    (b) Elements of review. To permit BXA to make such judgments, BXA 
will thoroughly analyze your past export and reexport transactions, 
inspect your export and reexport documents, and interview company 
officials of both the applicant and the consignees, as necessary. If 
BXA cannot verify that an appropriate ICP will be implemented upon 
approval of the SCL by BXA, or establish the reliability of the 
proposed parties to the application, it may deny the application, or 
modify it by eliminating certain consignees, items, countries, or 
activities.
    (c) Order requirement. You do not need to have in your possession 
an order from the proposed consignee at the time you apply for an SCL. 
However, evidence of a consignee's firm intention to place orders on a 
continuing basis is required.
    (d) Criteria for review. BXA will consider the following factors 
during the processing of your SCL application:
    (1) The specific nature of proposed end-use and end-uses;
    (2) The significance of the export in terms of its contribution to 
the design, development, production, stockpiling, or use of nuclear or 
chemical or biological weapons, or missiles;
    (3) The types of assurances against design, development, 
production, stockpiling, or use of nuclear or chemical and biological 
weapons, or missiles that are included in the ICP;

[[Page 12839]]

    (4) The nonproliferation credentials of the importing country;
    (5) Corporate commitment of the resources necessary to implement 
and maintain an adequate ICP;
    (6) Evidence of past licensing history of the applicant and 
consignees, and projected, continuous large volume exports and/or 
reexports;
    (7) Reliability of all parties;
    (8) Information on all parties' compliance with the provisions of 
the EAR; and
    (9) All parties' knowledge of the EAR.
    (e) Application processing time-frames. Upon receiving an SCL 
application, BXA may review the application for up to two weeks to 
determine whether the SCL application is complete. When all 
documentation requirements are met, BXA will register the application. 
After the date of registration, the SCL application will be processed 
according to the procedures described in part 750 of the EAR.


Sec. 752.9  Action on SCL applications.

    (a) Approval of SCL applications.--(1) Validity period. SCLs are 
valid for four years from the date of approval.
    (2) Extension of validity period. You may request an extension of 
your valid SCL for an additional four years, but such requests must be 
received by BXA at least 30 days prior to the expiration of your SCL. 
If approved, Form BXA-748P and your letter requesting an extension will 
be validated and returned to you, extending the validity period for 
four years. No further extensions will be approved. A new application 
and support documentation is required at the end of that eight-year 
period. To apply for an extension, complete Form BXA-748P by completing 
Blocks 1, 2, 3 and 4. Mark ``Special Comprehensive License'' in Block 5 
and ``change'' in Block 6. Include your SCL number in Block 9, and 
indicate in Block 24 that you are requesting an extension to your SCL. 
Submit the completed Form BXA-748P and a statement on company 
letterhead indicating:
    (i) That you continue to abide by the provisions and conditions of 
the SCL; and
    (ii) Any changes to the original SCL that you are requesting (see 
Sec. 752.10 of this part for procedures on changed circumstances).
    (3) Support documentation. (i) General information. BXA will 
validate all approved support documentation with the Department of 
Commerce seal and date of validation.
    (ii) Form BXA-752, Form BXA-752-A, and Form BXA-748P-B. With the 
approved SCL, you will receive two validated copies of each approved 
Form BXA-752, Statement by Consignee in Support of Special 
Comprehensive License and, if applicable, Form BXA-752-A, Reexport 
Territories, and Form BXA-748P-B, End-User Appendix. You must retain 
one copy, and send one copy to the approved consignee. You must also 
attach a letter to each approved Form BXA-752 that includes each of the 
following elements:
    (A) A description of all recordkeeping requirements of the EAR 
applicable to the activities of the consignee;
    (B) Information on any applicable reexport restrictions on items 
received by the consignee under the SCL;
    (C) A description or copy of Sec. 752.16 of this part, listing 
administrative actions that may be taken for improper use of, or 
failure to comply with, the SCL and its required procedures;
    (D) A description of any special conditions or restrictions on the 
license applicable to the consignee, including approved lists of 
customers, countries, and items, when required;
    (E) A description of the elements of the SCL holder's ICP relevant 
to the SCL consignee;
    (F) A copy of the high risk customer profile contained in 
Sec. 752.11(c)(13)(i) of this part, when required;
    (G) A copy of the Denied Persons List currently in effect and 
notification that you will send the consignee regular updates to this 
list;
    (H) A notice that the consignee, in addition to other requirements, 
may not sell or otherwise dispose of any U.S. origin items when it 
knows that the items will be used in the activities prohibited by part 
744 of the EAR;
    (I) A requirement that the consignee acknowledge, in writing, 
receipt of this letter of transmittal outlining their obligations under 
the SCL, and certify that it will comply with all of the requirements, 
including implementation of an ICP if required by Sec. 752.11 of this 
part; and
    (J) A description of any special documentation requirements for 
consignees reexporting items to destinations having such requirements.
    (4) Special license conditions. BXA may place special conditions on 
your SCL, such as restrictions on eligible items, countries, end-uses, 
end-users or activities, or a requirement that certain sales or 
transfers of items under the SCL are subject to prior reporting to BXA. 
Such special conditions will be listed on your SCL or in a letter from 
BXA to the SCL holder. You must inform all relevant consignees of all 
license conditions prior to making any shipments under the SCL.
    (b) Denial of SCL applications. (1) If BXA intends to deny your SCL 
application, you will be notified and have opportunity to respond 
according to the procedures in Sec. 750.6 of the EAR.
    (2) BXA may at any time prohibit the sale or transfer of items 
under the SCL to specified individuals, companies, or countries. In 
such cases, the SCL holder must inform all consignees, and apply for a 
license described in part 748 of the EAR for subsequent transactions 
with such excluded parties.
    (3) If a consignee is not approved, Form BXA-752 will be returned 
to the SCL holder with a letter explaining the reason for denial.
    (4) If a particular destination is not approved, it will be removed 
from the appropriate Form BXA-752-A.
    (c) Return without action. BXA may determine to return the SCL 
application without action. Under such circumstances, the application 
and all related documents will be returned to you along with a letter 
stating the reason for return of the license application, explaining 
the deficiencies or additional information required for 
reconsideration, or advising you to apply for a license described in 
part 748 of the EAR. BXA may return your entire application or merely 
documents pertaining to a specific consignee request.


Sec. 752.10  Changes to the SCL.

    (a) General information. Certain changed circumstances regarding 
the SCL require prior approval from BXA before you make such changes, 
while others require only notification to BXA.
    (b) Changes requiring prior written approval from BXA. The 
following circumstances require prior written approval by BXA. Such 
requests must be submitted by the SCL holder, and changes are not 
effective until BXA approves the request. Upon approval of a change 
described in this paragraph, BXA will return to the SCL holder a 
validated copy of the request, indicating any changes that may have 
been made to your request, or any special conditions that may have been 
imposed.
    (1) Change of SCL holder company name. You must submit to BXA Form 
BXA-748P, Multipurpose Application, for any change in the name of the 
SCL holder company. Complete Blocks 1, 2, 3, and 4. Mark ``Special 
Comprehensive License'' in Block 5, and ``change'' in Block 8. In Block 
9, include your SCL number, and briefly indicate the purpose of the 
change. Enter the new information in the relevant Blocks, and complete 
Block 25. The SCL holder must send a copy of the validated Form BXA-
748P to each approved consignee, and advise them to attach the copy of

[[Page 12840]]
the validated form to their validated Form BXA-752.
    (2) Change in consignee name or address. You must submit to BXA 
Form BXA-752, Statement by Consignee in Support of Special 
Comprehensive License, when requesting a change in consignee name, or 
if the consignee moves out of the country. The consignee must complete 
Block 2, mark ``change an existing consignee'' in Block 3, and provide 
the new consignee information in Block 4. Also complete Blocks 10 and 
11.
    (3) Addition of new consignees. You must submit to BXA Form BXA-752 
for requests to add consignees to an SCL. Complete Form BXA-752 in 
accordance with the instructions in Supplement No. 1 to this part, 
marking ``Add a New Consignee'' in Block 3. Use Block 9 to describe the 
proposed consignee's role in the activities authorized by the SCL. Form 
BXA-752 is not required if the proposed new consignee is a foreign 
government agency and the items will not be reexported. If Form BXA-752 
is not required, the SCL holder may submit the request to add the 
foreign government agency to the SCL on company letterhead. You must 
include the proposed consignee's complete street address.
    (4) Change in reexport territories. You must submit to BXA Form 
BXA-752 and Form BXA-752-A to add a country to a consignee's approved 
reexport territory. Upon approval of change in reexport territory, BXA 
will return to the SCL holder two validated copies of Form BXA-752 and 
Form BXA-752-A, Reexport Territories, along with any special conditions 
that may have been imposed.
    (i) Form BXA-752. Complete Block 3 by marking ``Change an Existing 
Consignee''. In Block 4, enter the consignee name and consignee number. 
In Block 5, enter the SCL number. In Block 9, enter ``to add a country 
to the reexport territory''. Complete Blocks 10 and 11.
    (ii) Form BXA-752-A. Complete Blocks 2 and 3. Mark each country 
that you are adding to your reexport territory.
    (5) Adding items to your SCL. The following procedures apply to 
requests to add items to your SCL. Upon approval, BXA will send you a 
validated Form BXA-752 and, if applicable, Form BXA-748P-A. The SCL 
holder must send a copy of each validated form to all applicable 
consignees and attach a copy to their Form BXA-752.
    (i) Adding one item. You must submit to BXA Form BXA-748P to 
request the addition of a single item to your SCL. Complete Blocks 1, 
2, 3 and 4. Mark ``Special Comprehensive License'' in Block 5, and 
``change'' in Block 8. Include your SCL number in Block 9 and state 
either ``add ECCN'' or ``delete ECCN''. Complete items (a) and (j) in 
Block 22, and Block 25.
    (ii) More than one item. You must submit to BXA Form BXA-748P and 
Form BXA-748P-A to request to add more than one item to your SCL. 
Complete Form BXA-748P according to the instructions in paragraph 
(b)(5)(i) of this section. Complete Form BXA 748P-A by including the 
``Application Control Number'' (found on form BXA-748P) in Block 1. 
Complete Block 21 and Block 24, if needed, to describe any special 
circumstances (i.e. the new item will only be exported to specific 
consignees and will not be reexported).
    (6) Changes to end-users. You must submit to BXA Form BXA-752 and 
Form BXA-748P-B to add end-users to consignee authorizations. Upon 
approval by BXA, BXA will return to the SCL holder two validated copies 
of Form BXA-752 and Form BXA-748P-B, which will include any special 
conditions that may have been imposed. You must send one copy of Forms 
BXA-752 and BXA-748P to the relevant consignee.
    (i) Form BXA-752. On Form BXA-752, complete Block 3.B., ``Change an 
Existing Consignee''. Include the consignee number in Block 4. Include 
the SCL number in Block 5. In Block 9, type ``To add an End-User''. 
Complete Blocks 10 and 11.
    (ii) Form BXA-748P-B. On Form BXA-748P-B, include the SCL consignee 
number in Block 1. Complete Block 19. Cite the end-user requirement or 
condition (i.e. ``This end-user is requested in compliance with 
Sec. 752.5(c)(8)(ii) of the EAR, which requires prior authorization to 
reexport chemicals under the SCL''. Also list the items (by ECCN and 
description) that the end-user will receive and for what purpose, if 
approved by BXA.
    (c) Changes that do not require prior approval from BXA. The 
following changes regarding your SCL do not require prior approval from 
BXA, however, such changes must be submitted on the appropriate forms 
no later than 30 days after the change has occurred. BXA will validate 
the forms, and return one copy to you for your records.
    (1) Change of SCL holder address, export contact information, or 
total value of license. You must submit to BXA Form BXA-748P, 
Multipurpose Application, for any change in the SCL holder's address, 
export contact information, or total value of the license. Complete 
Blocks 1, 2, 3, and 4. Mark ``Special Comprehensive License'' in Block 
5, and ``change'' in Block 8. In Block 9, include your SCL number, and 
briefly indicate the purpose of the change. Enter the new information 
in the relevant Blocks. Complete Block 25. The SCL holder must send a 
copy of the validated Form BXA-748P to each approved consignee, and 
advise them to attach the copy of the validated form to their validated 
Form BXA-752.
    (2) Deletion, suspension or revocation of consignees. You must 
submit to BXA Form BXA-748P if you remove a consignee from your SCL. 
Complete Blocks 1, 2, 3 and 4, mark ``Special Comprehensive License'' 
in Block 5, and ``change'' in Block 8. Indicate your SCL number in 
Block 9, and complete Block 14. In Block 24, indicate that you are 
removing a consignee(s) from your SCL, and indicate the name and 
address of the consignee as it appears on the original Form BXA-752. 
Also include the consignee number that was assigned when your SCL was 
approved by BXA. You must notify all remaining consignees if any 
consignee is no longer eligible to receive items under the SCL.
    (3) Changes in ownership or control of the SCL holder or consignee. 
(i) SCL holder. You must notify BXA of changes in ownership or control 
by submitting to BXA Form BXA-748P. Complete Blocks 1, 2, 3 and 4, mark 
``Special Comprehensive License'' in Block 5, and indicate the SCL 
number in Block 9. Include the SCL holder information in Block 14, and 
describe the change in Block 24, indicating the circumstances 
necessitating the change (i.e., mergers), and changes in persons who 
have official signing authority. Also complete Block 25.
    (ii) Consignee. You must notify BXA of changes in ownership or 
control of the consignee company by submitting to BXA Form BXA-752. 
Complete Block 2, mark ``change an existing consignee'' in Block 3.B., 
and complete Blocks 4 and 5. In Block 9, describe the change, 
indicating the circumstances necessitating the change (i.e. mergers), 
and changes in persons who have official signing authority. Complete 
Blocks 10 and 11.
    (4) Remove reexport territories. If you remove a country from a 
consignee's approved reexport territory, you must submit to BXA Form 
BXA-752 and Form BXA-752-A. Upon review of the change in reexport 
territory, BXA will return to the SCL holder two validated copies of 
Form BXA-752 and Form BXA-752-A.
    (i) Form BXA-752. Complete Block 3 by marking ``Change an Existing 
Consignee''. In Block 4, enter the consignee name and consignee number.

[[Page 12841]]
In Block 5, enter the SCL number. In Block 9, enter ``to remove a 
country from the reexport territory''. Complete Blocks 10 and 11.
    (ii) Form BXA-752A. Complete Blocks 2 and 3. Mark each country that 
you are removing from the reexport territory.
    (5) Remove items from your SCL. The following procedures apply if 
you remove an item from your SCL. After review of the change by BXA, 
BXA will send you a validated Form BXA-752 and BXA-748P-A, if 
applicable. The SCL holder must send a copy of the each validated form 
to all applicable consignees and attach a copy to their BXA-752P.
    (i) Removing one item. You must submit to BXA Form BXA-748P if you 
remove a single item from your SCL. Complete Blocks 1, 2, 3 and 4. Mark 
``Special Comprehensive License'' in Block 5, and ``change'' in Block 
8. Include your SCL number in Block 9 and state ``delete ECCN''. 
Complete item (a) and (j) in Block 22, and Block 25.
    (ii) Removing more than one item. You must submit to BXA Form BXA-
748P and Form BXA-748P-A if you remove more than one item from your 
SCL. Complete Form BXA-748P according to the instructions in paragraph 
(a)(5)(i) of this section. Complete Form BXA 748P-A by including the 
``Application Control Number'' (found on form BXA-748P) in Block 1, and 
completing items (a) and (j) in Block 22 for each item you are removing 
from your SCL.
    (6) Remove end-users from your SCL. You must submit to BXA Form 
BXA-752 and Form BXA-748P-B if you remove end-users from consignee 
authorizations. After review by BXA, BXA will return to the SCL holder 
two validated copies of Form BXA-752 and Form BXA-748P-B, which will 
include any special conditions that may have been imposed. You must 
send one copy of Forms BXA-752 and BXA-748P to the relevant consignee.
    (i) Form BXA-752. On Form BXA-752, complete Block 3.B., ``Change an 
Existing Consignee''. Include the consignee number in Block 4. Include 
the SCL case number in Block 5. In Block 9, type ``To remove an end-
user''. Complete Blocks 10 and 11.
    (ii) Form BXA-748P-B. On Form BXA-748P-B, include the SCL consignee 
number in Block 1. Complete Block 19.
    (d) Changes made by BXA. If BXA revises or adds an ECCN to the CCL, 
or a country's eligibility already covered by the SCL changes, BXA will 
publish the change in the Federal Register. The SCL holder is 
responsible for immediately complying with any changes to the scope of 
the SCL.


Sec. 752.11  Internal Control Programs.

    (a) Scope--(1) Introduction. It is through Internal Control 
Programs (ICPs) that the SCL holder and the consignee assure that 
exports and reexports are not made contrary to the EAR. The elements of 
your ICP will reflect the complexity of the activities authorized under 
the SCL, the countries and items involved, and the relationship between 
the SCL holder and the approved consignees.
    (2) General requirements. Prior to making any exports and reexports 
under an SCL, you and your consignees, when required, must implement an 
ICP that is designed to ensure compliance with the SCL and the EAR. 
This section provides an overview of the elements that comprise an ICP. 
You may obtain from BXA at the address found in Sec. 752.17 of this 
part guidelines to assist you in developing an adequate ICP. You must 
submit with your application for an SCL a copy of your proposed ICP, 
along with any consignee ICPs, when required, incorporating the 
elements described in this section, as appropriate. BXA may require you 
to modify your ICP depending upon the activities, items, and 
destinations requested on your application for an SCL.
    (b) Requirements. You may not make any shipments under an SCL until 
you and your consignees, when appropriate, implement all the elements 
of the required ICP. If there are elements that you consider 
inapplicable, you must explain the reasons for this determination at 
the time of application for an SCL. Existence of a properly constructed 
ICP will not relieve the SCL holder of liability for improper use or 
failure to comply with the requirements of the EAR.
    (c) Elements of an ICP. Following is a list of ICP elements. The 
specific elements that should be included in your ICP depend upon the 
complexity of the activities authorized under your SCL, the countries 
and items involved, and the relationship between the SCL holder and the 
approved consignees.
    (1) A clear statement of corporate policy communicated to all 
levels of the firm involved in exports and reexports, traffic, and 
related functions, emphasizing the importance of SCL compliance;
    (2) Identification of positions (and maintenance of current list of 
individuals occupying the positions) in the SCL holder firm and 
consignee firms responsible for compliance with the requirements of the 
SCL procedure;
    (3) A system for timely distribution to consignees and verification 
of receipt by consignees of the Denied Persons List (Supplement No. 2 
to part 764 of the EAR) and other regulatory materials necessary to 
ensure compliance;
    (4) A system for screening items, training and servicing 
transactions against Denied Persons List (Supplement No. 2 to part 764 
of the EAR) and any relevant updates to the Denied Persons List;
    (5) A system for assuring compliance with items and destination 
restrictions, including controls over reexports by consignees and 
direct exports to consignee customers;
    (6) A compliance review program covering the SCL holder and 
extending to all consignees;
    (7) A system for assuring compliance with controls on exports and 
reexports of nuclear items and to nuclear end-uses described in 
Secs. 742.3 and 744.2 of the EAR;
    (8) An on-going program for informing and educating employees 
responsible for processing transactions involving items received under 
the SCL about applicable regulations, limits, and restrictions of the 
SCL;
    (9) A program for recordkeeping as required by the EAR;
    (10) An order processing system that documents employee clearance 
of transactions in accordance with applicable elements of the company 
ICP;
    (11) A system for monitoring in-transit shipments and shipments to 
bonded warehouses and free trade zones;
    (12) A system for notifying BXA promptly if the SCL holder knows 
that a consignee is not in compliance with terms of the SCL;
    (13) A system to screen against customers who are known to have, or 
are suspected of having, unauthorized dealings with specially 
designated regions and countries for which nonproliferation controls 
apply;
    (i) The signs of potential diversion that you should take into 
consideration include, but are not limited to, the following:
    (A) Your customer is little known (financial information 
unavailable from normal commercial sources and corporate principals 
unknown by trade sources);
    (B) Your customer does not wish to use commonly available 
installation and maintenance services;
    (C) Your customer is reluctant to provide end-use and end-user 
information;
    (D) Your customer requests atypical payment terms or currencies;
    
[[Page 12842]]

    (E) Customer order amounts, packaging, or delivery routing 
requirements do not correspond with normal industry practice.
    (F) The performance/design characteristics of the items ordered are 
incompatible with customer's line of business or stated end-use;
    (G) Your customer provides only a ``P.O. Box'' address or has 
facilities that appear inappropriate for the items ordered;
    (H) Your customer's order is for parts known to be inappropriate, 
or for which the customer appears to have no legitimate need (e.g., 
there is no indication of prior authorized shipment of system for which 
the parts are sought); and
    (I) Your customer is known to have, or is suspected of having, 
unauthorized dealings with parties and/or destinations in ineligible 
countries.
    (ii) When any of the above characteristics have been identified, 
but through follow-up inquiries or investigation have not been 
satisfactorily resolved, the consignee should not transact any business 
with the customer under the SCL. Apply for a license according to part 
748 of the EAR. You should explain the basis for the concern regarding 
the proposed customer, and state that you are an SCL consignee. Also, 
cite the SCL number, and your consignee number;
    (14) A system for assuring compliance with controls over exports 
and reexports for missile-related end-uses and end-users described in 
Sec. 744.3 of the EAR;
    (15) A system for assuring compliance with control over exports and 
reexports of chemical precursors and biological agents and related 
items and end-uses described in Secs. 742.2 and 744.4 of the EAR;


Sec. 752.12  Recordkeeping requirements.

    (a) SCL holder and consignees. In addition to the recordkeeping 
requirements of part 762 of the EAR, the SCL holder and each consignee 
must maintain copies of manuals, guidelines, policy statements, 
internal audit procedures, reports, and other documents making up the 
ICP of each party included under an SCL. Also, all parties must 
maintain copies of the most current Denied Persons List (see Supplement 
No. 2 to part 764 of the EAR) as well as all updates, and all other 
regulatory materials necessary to ensure compliance with the SCL, such 
as relevant changes to the EAR, product classification, additions, 
deletions, or other administrative changes to the SCL, transmittal 
letters and consignee's confirmations of receipt of these materials.
    (b) Consignees. All consignees must retain all records of the types 
of activities identified in Sec. 752.2(a)(3) of this part. Records on 
such sales or reexports must include the following:
    (1) Full name and address of individual or firm to whom sale or 
reexport was made;
    (2) Full description of each item sold or reexported;
    (3) Units of quantity and value of each item sold or reexported; 
and
    (4) Date of sale or reexport.


Sec. 752.13  Inspection of records.

    (a) Availability of records. You and all consignees must make 
available all of the records required by Sec. 752.12 of this part and 
Sec. 762.2 of the EAR for inspection, upon request, by BXA or by any 
other representative of the U.S. Government, in accordance with part 
762 of the EAR.
    (b) Relationship of foreign laws. Foreign law may prohibit 
inspection of records by a U.S. Government representative in the 
foreign country where the records are located. In that event, the 
consignee must submit with the required copies of Form BXA-752 an 
alternative arrangement for BXA to review consignee activities and 
determine whether or not the consignee has complied with U.S. export 
control laws and regulations, which must be approved by BXA.
    (c) Failure to comply. Parties failing to comply with requests to 
inspect documents may be subject to orders denying export privileges 
described in part 764 of the EAR or to the administrative actions 
described in part 766 of the EAR.


Sec. 752.14  System reviews.

    (a) Post-license system reviews. BXA may conduct system reviews of 
the SCL holder as well as any consignee. Generally, BXA will give 
reasonable notice to SCL holders and consignees in advance of a system 
review. The review will involve interviews with company officials, the 
inspection of records, and the review of ICPs. BXA may conduct special 
unannounced system reviews if BXA has reason to believe an SCL holder 
or consignee has improperly used or has failed to comply with the SCL.
    (b) Other reviews. BXA may require an SCL holder or consignee to 
submit to its office a list of all sales made under the SCL during a 
specified time-frame. Also, BXA may request from any consignee a list 
of transactions during a specified period involving direct shipments of 
items received under SCLs to customers of other consignees and sales to 
customers in reexport territories authorized by BXA on the consignee's 
validated Form BXA-752.


Sec. 752.15  Export clearance.

    (a) Shipper's Export Declaration (SED). The SED covering an export 
made under an SCL must be prepared in accordance with standard 
instructions described in Sec. 758.3 of the EAR. If the SCL holder has 
implemented the Bureau of Census Monthly Reporting System, the SCL 
holder must comply with the Census requirements.
    (1) Item descriptions. Item descriptions on the SED must indicate 
specifically the ECCN and item description conforming to the applicable 
CCL description and incorporating any additional information where 
required by Schedule B; (e.g., type, size, name of specific item, 
etc.).
    (2) Value of shipments. There is no value limitation on shipments 
under the SCL; however, you must indicate the value of each shipment on 
the SED.
    (3) SCL number. The SED must include the SCL number followed by a 
blank space, and then the consignee number identifying the SCL's 
approved consignee to whom the shipment is authorized.
    (b) Destination control statement. The SCL holder must enter a 
destination control statement on all copies of the bill of lading or 
air way-bill, and the commercial invoice covering exports under the 
SCL, in accordance with the provisions of Sec. 758.6 of the EAR. Use of 
a destination control statement does not preclude the consignee from 
reexporting to any of the SCL holder's other approved consignees or to 
other countries for which specific prior approval has been received 
from BXA. In such instances, reexport is not contrary to U.S. law and, 
therefore, is not prohibited. Another destination control statement may 
be required or approved by BXA on a case-by-case basis.


Sec. 752.16  Administrative actions.

    (a)(1) If BXA is not satisfied that you or other parties to the SCL 
are complying with all conditions and requirements of the SCL, or that 
ICPs employed by parties to such licenses are not adequate, BXA may, in 
addition to any enforcement action pursuant to part 764 of the EAR, 
take any licensing action it deems appropriate, including the 
following:
    (i) Suspend the privileges under the SCL in whole or in part, or 
impose other restrictions;
    (ii) Revoke the SCL in whole or in part;
    
[[Page 12843]]

    (iii) Prohibit consignees from receiving items authorized under the 
SCL, or otherwise restrict their activities under the SCL;
    (iv) Restrict items that may be shipped under the SCL;
    (v) Require that certain exports, transfers or reexports be 
individually authorized by BXA;
    (vi) Restrict parties to whom consignees may sell under the SCL; 
and
    (vii) Require that an SCL holder provide an audit report to BXA of 
selected consignees or overseas operations.
    (2) Whenever necessary to protect the national interest of the 
U.S., BXA may take any licensing action it deems appropriate, without 
regard to contracts or agreements entered into before such 
administrative action, including those described in paragraphs (a)(1) 
(i) through (vii) of this section.
    (b) Appeals. Actions taken pursuant to paragraph (a) of this 
section may be appealed under the provisions of part 756 of the EAR.


Sec. 752.17  BXA mailing addresses.

    You should use the following addresses when submitting to BXA 
applications, reports, documentation, or other requests required in 
this part 752: Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, D.C. 20044, ``Attn: Special 
Licensing and Compliance Division''. If you wish to send the required 
material via overnight courier, use the following address: Bureau of 
Export Administration, U.S. Department of Commerce, 14th and 
Pennsylvania Avenue, N.W., Room 2705, Washington D.C. 20230 ``Attn: 
Special Licensing and Compliance Division''. You may also reach the 
Special Licensing and Compliance Division by phone (202)482-0062, or 
telefacsmile on (202)501-6750.

Supplement No. 1 to Part 752--Instructions for Completing Form BXA-748P 
Multipurpose Application for Requests for Special Comprehensive 
Licenses

    All information must be legibly typed within the lines for each 
Block or box, except where a signature is required. Where there is a 
choice of entering a telephone or telefacsimile number, and you 
choose a telefacsimile number, identify the number with the letter 
``F'' immediately following the number.
    Complete Blocks 1, 2, 3, and 4 according to the instructions in 
Supplement No. 1 to part 748.
    Block 5: Type of Application. Enter an ``X'' in the Special 
Comprehensive License box.
    Block 6: Documents Submitted with Application. Leave blank.
    Block 7: Documents on File with Applicant. Leave blank.
    Block 8: Special Comprehensive License. Complete by entering an 
``X'' in the appropriate boxes to indicate which forms are attached.
    Block 9: Special Purpose. This block should only be completed by 
previous special license holders. If you have had a special license 
in the past, enter that license number. A new SCL number will be 
assigned upon approval of your SCL application.
    Blocks 10, 11, 12, and 13: Leave blank.
    Block 14: Applicant. Complete according to the instructions in 
Supplement No. 1 to part 748.
    Block 15: Other Party Authorized to Receive License. Complete, 
if applicable, according to the instructions in Supplement no. 1 to 
part 748.
    Blocks 16 and 17: Leave blank.
    Block 18: Ultimate Consignee. Leave blank.
    Blocks 19, 20, and 21: Leave blank.
    Block 22: Leave (a)-(j) blank.
    Block 23: Total Application Dollar Value. Enter the projected 
total dollar value of all transactions you anticipate making 
throughout the entire validity period of the SCL.
    Block 24: Additional Information. Enter additional data 
pertinent to the transaction as required by part 752. Do not include 
information concerning block 22 in this space.
    Block 25: Signature. Complete according to the instructions in 
Supplement No. 1 to part 748.

Supplement No. 2 to Part 752--Instructions for Completing Form BXA-
748P-A, ``Item Annex''

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Enter the application control 
number found on Form BXA-748P.
    Block 2: Subtotal. Leave blank.
    Block 21: Continuation of Specific End-Use Information. Leave 
blank. Block 22:
    (a) ECCN. Enter the Export Control Classification Number that 
corresponds to the item you wish to export or reexport under the 
SCL.
    (b) CTP. You must complete this block if you intend to export or 
reexport a digital computer. Instructions on calculating the CTP are 
contained in a Technical Note at the end of Category 4 in the CCL.
    (c)-(i): Leave blank.
    (j) Manufacturer's Description. Enter a detailed description of 
the item proposed for export or reexport. Brochures or product 
literature may be supplied at the option of the applicant. However, 
such information may expedite review and processing of your 
application.
    Block 24: Continuation of Additional Information. Enter any 
identifying information that defines the scope of items you are 
requesting to export or reexport under the SCL. For example, ``4A004 
except items controlled for MT reasons''.

Supplement No. 3 to Part 752--Instructions for Completing Form BXA-752 
``Statement by Consignee in Support of Special Comprehensive License''

    All information must be legibly typed within the lines for each 
block or box, except where a signature is required.
    Block 1: Application Control No. Enter the ``Control No.'' that 
is pre-printed on the Form BXA-748P, Multipurpose Application. You 
may obtain this information from the applicant.
    Block 2: Consignee ID Number. Leave blank.
    Block 3: Type of Request. For new applications, leave blank.
    Block 4: Consignee Information. Enter the complete address where 
the consignee is located. A P.O. Box alone is NOT acceptable but may 
be included in Block 4 for mailing purposes, along with a complete 
address. If records required by Sec. 752.12 of this part and part 
762 of the EAR are maintained/stored at a separate address, indicate 
the address in Block 9. In the absence of a complete address, Form 
BXA-752 will be returned without action.
    Block 5: U.S. Exporter Information. Enter the complete address 
of the U.S. exporter. Leave the SCL Case No. box blank.
    Block 6: Description of Items. Provide a summary description of 
the items proposed for import and reexport under the SCL. Firms that 
will not receive the entire range of items under a particular ECCN 
identified on Form BXA-748P-A should describe only the items they 
will receive under the SCL. In some instances, consignee approval 
will be contingent on the nature of the item requested.
    Block 7: Consignee's Business and Relationship.
    (a) Identify the nature of your company's principal business as 
it affects the disposition of items to be imported and reexported 
under this license (e.g., manufacturer, manufacturer/ distributor, 
assembler/reseller, distributor, sales agent, warehouse, service 
facility).
    (b) Indicate the relationship between your company and the 
applicant company (e.g., wholly owned subsidiary, independent 
company, joint venture company, controlled-in-fact affiliate of 
another consignee that is approved on an SCL).
    (c) Enter number of years of relationship between your company 
and the applicant company.
    (d) Enter the estimated dollar volume of sales or other 
transactions with the SCL holder during the last twelve months 
period before submission of the application for SCL.
    (e) Enter an estimated dollar volume proposed under this 
application for the validity period of the SCL.
    Block 8: Disposition or Use of Items. 
    (a) Complete this Block if your company is requesting 
involvement in end-user activities that involve importing items for 
the company's own use (e.g., as capital equipment).
    (b) Complete this Block if your company is requesting 
involvement in end-user activities that incorporate items received 
under the

[[Page 12844]]
SCL into a new end-product that result in a change of identity of 
the U.S.-item (e.g., U.S.-origin semiconductor devices are included 
in a foreign origin test instrument). Under Block 9, Additional 
Information, describe the new end-product more specifically and 
state how and to what extent the U.S.-origin items will be used. 
Complete and attach Form BXA-752-A, Reexport Territories.
    (c) Complete this Block if your company is requesting 
authorization to reexport items for service and/or repair. Complete 
and attach Form BXA-752-A. If you plan to reexport to end-users that 
require prior approval by BXA, also complete and attach Form BXA-
748P-B, End-User Appendix.
    (d) Complete this Block if your company plans to retransfer/
resell within the country of import. State the end-use of your 
customers. If you plan to retransfer to end-users that require prior 
approval by BXA, complete and attach Form BXA-748P-B, End-User 
Appendix.
    (e) Complete this Block if your company plans to reexport. 
Complete and attach Form BXA-752-A. If you plan to reexport to end-
users that require prior approval by BXA, also complete and attach 
Form BXA-748P-B, End-User Appendix.
    (f) This item should be completed for ``other'' activities that 
are not defined in Blocks 8(a) through (e). Describe the proposed 
activities fully in a letter attached to this Form, and complete and 
attach Form BXA-752-A, indicating countries to which the products 
derived from these activities are proposed export.
    Block 9: Additional Information. In addition to any information 
that supports other Blocks, indicate whether your company is an 
active consignee under any other license issued by BXA. Indicate the 
license and consignee numbers.
    Block 10: Signature of Official of Ultimate Consignee. Include 
an original signature. The authority to sign form BXA-752 may not be 
delegated to any person whose authority to sign is not inherent in 
his/her official position with the company. The signing official 
must include their official title with the signature. All copies 
must be co-signed by the applicant in Block 11 and submitted with 
the application to BXA.

Supplement No. 4 to Part 752--Instructions for Completing Form BXA-752-
A Reexport Territories

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Insert the application control 
number from the relevant form BXA-748P.
    Block 2: SCL License No. Leave blank for new SCL applications. 
For changes to existing SCLs, include the original SCL number.
    Block 3: Consignee No. Leave blank for new SCL applications. For 
changes to existing SCLs, include the consignee number that was 
provided on the original license.
    Block 4: Continuation of BXA-752 Question No. Mark an ``X'' in 
the box next to each country you want to select. Countries that are 
not eligible for the SCL are not included on this form. If the 
country that is not listed on this form becomes eligible to receive 
items under the SCL, you may request that country by marking an 
``X'' in the ``other'' box and including the country name.

Supplement No. 5 to Part 752--Instructions for Completing Form BXA-
748P-B End-User Appendix

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Insert the application control 
number from the relevant Form BXA-748P.
    Block 19: End-user. Enter each end-user's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. P.O. Boxes are not acceptable.
    Block 21: Continuation of Specific End-Use Information. Include 
any additional information that may help BXA in reviewing and making 
a determination on your application, such as the special safeguards 
that will be implemented to prevent diversion.
    Block 24: Continuation of Additional Information. Enter 
additional data pertinent to the transaction as required by part 752 
of the EAR.

PART 754--SHORT SUPPLY CONTROLS

Sec.
754.1  Introduction.
754.2  Crude oil.
754.3  Petroleum products not including crude oil.
754.4  Unprocessed western red cedar.
754.5  Horses for export by sea.
754.6  Registration of U.S. agricultural commodities for exemption 
from short supply limitations on export.
754.7  Petitions for the imposition of monitoring or controls on 
recyclable metallic materials; Public hearings.

Supplement No. 1 to Part 754--Petroleum and Petroleum Products

Supplement No. 2 to Part 754--Unprocessed Western Red Cedar

Supplement No. 3 to Part 754--Statutory Provisions Dealing With Exports 
of Crude Oil

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); Sec. 201, Pub. L. 104-58, 109 
Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 6212; 43 
U.S.C. 1354; 46 U.S.C. app. 466c; E.O. 12924, 3 CFR, 1994 Comp., p. 
917; Notice of August 15, 1995 (60 FR 42767, August 17, 1995).


Sec. 754.1  Introduction.

    (a) Scope. In this part, references to the Export Administration 
Regulations (EAR) are references to 15 CFR chapter VII, subchapter C. 
This part implements the provisions of section 7, ``Short Supply 
Controls,'' of the Export Administration Act (EAA) and similar 
provisions in other laws that are not based on national security and 
foreign policy grounds.
    (b) Contents. Specifically, this part deals with the following:
    (1) It sets forth the license requirements and licensing policies 
for commodities that contain the symbol ``SS'' in the ``Reason for 
Control'' part of ``License Requirements'' section of the applicable 
Export Control Classification Number (ECCN) identified on the Commerce 
Control List (Supplement No. 1 to part 774 of the EAR). In appropriate 
cases, it also provides for License Exceptions from the short supply 
licensing requirements described in this part. The license requirements 
and policies that are described in this part cover the following:
    (i) Crude oil described by ECCN 1C981 (Crude petroleum, including 
reconstituted crude petroleum, tar sands, and crude shale oil listed in 
Supplement No. 1 to this part). For specific licensing requirements for 
these items, see Sec. 754.2 of this part.
    (ii) Petroleum products other than crude oil listed in Supplement 
No. 1 to this part, that were produced or derived from the Naval 
Petroleum Reserves (NPR) or became available for export as a result of 
an exchange of any NPR-produced or -derived commodities described by 
the following ECCNs. For specific licensing requirements for these 
items, see Sec. 754.3 of this part.
    (A) ECCN 1C980 (Inorganic chemicals);
    (B) ECCN 1C982 (Other petroleum products);
    (C) ECCN 1C983 (Natural gas liquids and other natural gas 
derivatives); and
    (D) ECCN 1C984 (Manufactured gas and synthetic natural gas (except 
when commingled with natural gas and thus subject to export 
authorization from the Department of Energy).
    (iii) Unprocessed western red cedar described by ECCN 1C988 
(Western red cedar (thuja plicata) logs and timber, and rough, dressed 
and worked lumber containing wane listed in Supplement No. 2 to this 
part). For specific licensing requirements for these items, see 
Sec. 754.4 of this part.
    (iv) Horses exported by sea for slaughter covered by ECCN 0A980 
(Horses for export by sea). For specific licensing requirements, see 
Sec. 754.5 of this part.
    (2) It incorporates statutory provisions for the registration of 
U.S. agricultural commodities for exemption from short supply 
limitations on export (see Sec. 754.6 of this part); and
    (3) It incorporates statutory provisions for the filing and review 
of petitions seeking the imposition of monitoring or controls on 
recyclable metallic materials and procedures for related public 
hearings (see Sec. 754.7 of this part).

[[Page 12845]]

    (c) Reexports. Reexports of items controlled by this part require a 
license only if such a requirement is specifically set forth in this 
part or is set forth on the license authorizing the export from the 
United States.
    (d) Additional requirements for embargoed destinations. For exports 
involving embargoed destinations, you must satisfy the requirements of 
this part and also of part 746 of the EAR (Embargoes and Other Special 
Controls).


Sec. 754.2  Crude oil.

    (a) License requirement. As indicated by the SS notation in the 
``License Requirements'' section of ECCN 1C981 on the CCL (Supplement 
No. 1 to part 774 of the EAR), a license is required for the export of 
crude oil to all destinations, including Canada. See paragraph (h) of 
this section for a License Exception permitting the export of certain 
oil from the Strategic Petroleum Reserves and paragraph (i) of this 
section for a License Exception for certain shipments of samples. 
``Crude oil'' is defined as a mixture of hydrocarbons that existed in 
liquid phase in underground reservoirs and remains liquid at 
atmospheric pressure after passing through surface separating 
facilities and which has not been processed through a crude oil 
distillation tower. Included are reconstituted crude petroleum, and 
lease condensate and liquid hydrocarbons produced from tar sands, 
gilsonite, and oil shale. Drip gases are also included, but topped 
crude oil, residual oil, and other finished and unfinished oils are 
excluded.
    (b) License policy. (1) BXA will approve applications to export 
crude oil for the following kinds of transactions if BXA determines 
that the export is consistent with the specific requirements pertinent 
to that export:
    (i) Exports from Alaska's Cook Inlet (see paragraph (d) of this 
section);
    (ii) Exports to Canada for consumption or use therein (see 
paragraph (e) of this section);
    (iii) Exports in connection with refining or exchange of strategic 
petroleum reserve oil (see paragraph (f) of this section);
    (iv) Exports of heavy California crude oil up to an average volume 
not to exceed 25 MB/D (see paragraph (g) of this section);
    (v) Exports that are consistent with international agreements as 
described in the statutes listed in paragraph (c) of this section;
    (vi) Exports that are consistent with findings made by the 
President under an applicable statute, including the statutes described 
in paragraph (c) of this section; and
    (vii) Exports of foreign origin crude oil where, based on written 
documentation satisfactory to BXA, the exporter can demonstrate that 
the oil is not of U.S. origin and has not been commingled with oil of 
U.S. origin. See paragraph (h) of this section for the provisions of 
License Exception SPR permitting exports of certain crude oil from the 
Strategic Petroleum Reserve.
    (2) BXA will review other applications to export crude oil on a 
case-by-case basis and, except as provided in paragraph (c) of this 
section, generally will approve such applications if BXA determines 
that the proposed export is consistent with the national interest and 
the purposes of the Energy Policy and Conservation Act (EPCA). Although 
BXA will consider all applications for approval, generally, the 
following kinds of transactions will be among those that BXA will 
determine to be in the national interest and consistent with the 
purposes of EPCA.
    (i) The export is part of an overall transaction:
    (A) That will result directly in the importation into the United 
States of an equal or greater quantity and an equal or better quality 
of crude oil or of a quantity and quality of petroleum products listed 
in Supplement No. 1 to this part that is not less than the quantity and 
quality of commodities that would be derived from the refining of the 
crude oil for which an export license is sought;
    (B) That will take place only under contracts that may be 
terminated if the petroleum supplies of the United States are 
interrupted or seriously threatened; and
    (C) In which the applicant can demonstrate that, for compelling 
economic or technological reasons that are beyond the control of the 
applicant, the crude oil cannot reasonably be marketed in the United 
States.
    (ii) Exports involving temporary exports or exchanges that are 
consistent with the exceptions from the restrictions of the statutes 
listed in paragraph (c) of this section.
    (c) Additional statutory controls. (1) The following statutes 
provide controls on the export of domestically produced crude oil based 
on its place of origin or mode of transport. If such other statutory 
controls apply, an export may only be approved if the President makes 
the findings required by the applicable law.
    (i) Section 201 of Public Law 104-58, entitled ``Exports of Alaskan 
North Slope Oil,'' provides for exports of domestically produced crude 
oil transported by pipeline over rights-of-way granted pursuant to 
section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 
1652) (``TAPS crude oil'').
    (ii) The Mineral Leasing Act of 1920 restricts exports of 
domestically produced crude oil transported by pipeline over rights-of-
way granted pursuant to section 28(u) of that Act (30 U.S.C. 185(u)) 
(``MLA'').
    (iii) The Outer Continental Shelf Lands Act restricts exports of 
crude oil produced from the outer Continental Shelf (29 U.S.C. 1354) 
(``OCSLA'').
    (iv) The Naval Petroleum Reserves Production Act restricts the 
export of crude oil produced from the naval petroleum reserves (10 
U.S.C. 7430) (``NPRPA'').
    (2) Supplement No. 3 to this part describes the relevant statutory 
provisions. In cases where a particular statute applies, a Presidential 
finding is necessary before the export can be authorized. You should 
note that in certain cases it is possible that more than one statute 
could apply to a particular export of crude oil.
    (d) Exports from Alaska's Cook Inlet. The licensing policy is to 
approve applications for exports of crude oil that was derived from the 
state-owned submerged lands of Alaska's Cook Inlet and has not been, or 
will not be, transported by a pipeline over a federal right-of-way 
subject to the MLA or the Trans-Alaska Pipeline Authorization 
Act.1

    \1\ On November 6, 1985, the Secretary of Commerce determined 
that the export of crude oil derived from State waters in Alaska's 
Cook Inlet is consistent with the national interest and the purposes 
of the Energy Policy and Conservation Act.
---------------------------------------------------------------------------

    (e) Exports to Canada for consumption or use therein. (1) Except 
for TAPS crude oil, the licensing policy is to approve applications for 
exports of crude oil to Canada for consumption or use therein.
    (2) The licensing policy for TAPS crude oil is to approve 
applications for an average of no more than 50,000 barrels of oil per 
day for consumption or use in Canada, subject to the following 
procedures and conditions:
    (i) Any ocean transportation of the commodity will be made by 
vessels documented for United States coastwise trade under 46 U.S.C. 
12106. Only barge voyages between the State of Washington and 
Vancouver, British Columbia, and comparable barge movements across 
waters between the U.S. and Canada may be excluded from this 
requirement. The Bureau of Export Administration will determine, in 
consultation with the Maritime

[[Page 12846]]
Administration, whether such transportation is ``ocean'' 
transportation; and
    (ii) Authorization to export TAPS crude oil will be granted on a 
quarterly basis. Applications will be accepted by BXA no earlier than 
two months prior to the beginning of the calendar quarter in question, 
but must be received no later than the 25th day of the second month 
preceding the calendar quarter. For example, for the calendar quarter 
beginning April 1 and ending June 30, applications will be accepted 
beginning February 1, but must be received no later than February 25.
    (iii) The quantity stated on each application must be the total 
number of barrels for the quarter, not a per-day rate. This quantity 
must not exceed 50,000 barrels times the number of calendar days in the 
quarter.
    (iv) Each application must include support documents providing 
evidence that the applicant has either:
    (A) Title to the quantity of barrels stated in the application; or
    (B) A contract to purchase the quantity of barrels stated in the 
application.
    (v) The quantity of barrels authorized on each license for export 
during the calendar quarter will be determined by the BXA as a prorated 
amount based on:
    (A) The quantity requested on each license application; and
    (B) The total number of barrels that may be exported by all license 
holders during the quarter (50,000 barrels per day multiplied by the 
number of calendar days during the quarter).
    (vi) Applicants may combine their licensed quantities for as many 
as four consecutive calendar quarters into one or more shipments, 
provided that the validity period of none of the affected licenses has 
expired.
    (vii) BXA will carry forward any portion of the 50,000 barrels per 
day quota that has not been allocated during a calendar quarter, except 
that no un-allocated portions will be carried over to a new calendar 
year. The un-allocated volume for a calendar quarter will be added, 
until expended, to the quotas available for each quarter through the 
end of the calendar year.
    (f) Refining or exchange of Strategic Petroleum Reserve Oil. (1) 
Exports of crude oil withdrawn from the Strategic Petroleum Reserve 
(SPR) will be approved if BXA, in consultation with the Department of 
Energy, determines that such exports will directly result in the 
importation into the United States of refined petroleum products that 
are needed in the United States and that otherwise would not be 
available for importation without the export of the crude oil from the 
SPR.
    (2) Licenses may be granted to export, for refining or exchange 
outside of the United States, SPR crude oil that will be sold and 
delivered, pursuant to a drawdown and distribution of the SPR, in 
connection with an arrangement for importing refined petroleum products 
into the United States.
    (3) BXA will approve license applications subject to the following 
conditions:
    (i) You must provide BXA evidence of the following:
    (A) A title to the quantity of barrels of SPR crude stated in the 
application; or
    (B) A contract to purchase, for importation, into the United States 
the quantity of barrels of SPR crude stated in the application.
    (ii) The following documentation must be submitted to BXA no later 
than fourteen days following the date that the refined petroleum 
products are imported in the U.S. in exchange for the export of SPR 
crude:
    (A) Evidence that the exporter of the SPR crude has title to or a 
contract to purchase refined petroleum product;
    (B) A copy of the shipping manifest that identifies the refined 
petroleum products; and
    (C) A copy of the entry documentation required by the U.S. Customs 
Service that show the refined petroleum products were imported into the 
United States, or a copy of the delivery receipt when the refined 
petroleum products are for delivery to the U.S. military outside of the 
United States.
    (4) You must complete both the export of the SPR crude and the 
import of the refined petroleum products no later than 30 days 
following the issuance of the export license, except in the case of 
delivery to the U.S. military outside of the United States, in which 
case the delivery of the refined petroleum products must be completed 
no later than the end of the term of the contract with the Department 
of Defense.
    (g) Exports of certain California crude oil. The export of 
California heavy crude oil having a gravity of 20.0 degrees API or 
lower, at an average volume not to exceed 25 MB/D, will be authorized 
as follows.
    (1) Applicants must submit their applications on Form BXA-748 to 
the following address: Office of Exporter Services, ATTN: Short Supply 
Program--Petroleum, Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, DC 20044.
    (2) The quantity stated on each application must be the total 
number of barrels proposed to be exported under the license--not a per-
day rate. This quantity must not exceed 25 percent of the annual 
authorized export quota. Potential applicants may inquire of BXA as to 
the amount of the annual authorized export quota available.
    (3) Each application shall be accompanied by a certification by the 
applicant that the California heavy crude oil:
    (i) Has a gravity of 20.0 degrees API or lower;
    (ii) Was produced within the state of California, including its 
submerged state lands;
    (iii) Was not produced or derived from a U.S. Naval Petroleum 
Reserve; and
    (iv) Was not produced from submerged lands of the U.S. Outer 
Continental Shelf.
    (4) Each license application must be based on an order, and be 
accompanied by documentary evidence of such an order (e.g., a letter of 
intent).
    (5) BXA will adhere to the following procedures for licensing 
exports of California heavy crude oil:
    (i) BXA will issue licenses for approved applications in the order 
in which the applications are received (date-time stamped upon receipt 
by BXA), with the total quantity authorized for any one license not to 
exceed 25 percent of the annual authorized volume of California heavy 
crude oil.
    (ii) BXA will approve only one application per month for each 
company and its affiliates.
    (iii) BXA will consider the following factors (among others) when 
determining what action should be taken on individual license 
applications:
    (A) The number of licenses to export California heavy crude oil 
that have been issued to the applicant or its affiliates during the 
then-current calendar year;
    (B) The number of applications pending in BXA that have been 
submitted by applicants who have not previously been issued licenses 
under this section to export California heavy crude oil during the 
then-current calendar year; and
    (C) The percentage of the total amount of California heavy crude 
oil authorized under other export licenses previously issued to the 
applicant pursuant to this section that has actually been exported by 
the applicant.
    (iv) BXA will approve applications contingent upon the licensee 
providing documentation meeting the requirements of both 
paragraphs(g)(5)(iv)(A) and (B) of this

[[Page 12847]]
section prior to any export under the license:
    (A) Documentation showing that the applicant has or will acquire 
title to the quantity of barrels stated in the application. Such 
documentation shall be either:
    (1) An accepted contract or bill of sale for the quantity of 
barrels stated in the application; or
    (2) A contract to purchase the quantity of barrels stated in the 
application, which may be contingent upon issuance of an export license 
to the applicant.
    (B) Documentation showing that the applicant has a contract to 
export the quantity of barrels stated in the application. The contract 
may be contingent upon issuance of the export license to the applicant.
    (v) BXA will carry forward any portion of the 25 MB/D quota that 
has not been licensed, except that no unallocated portions will be 
carried forward more than 90 days into a new calendar year. 
Applications to export against any carry-forward must be filed with BXA 
by January 15 of the carry-forward year.
    (vi) BXA will return to the available authorized export quota any 
portion of the 25 MB/D per day quota that has been licensed, but not 
shipped, during the 90-day validity period of the license.
    (vii) BXA will not carry over to the next calendar year pending 
applications from the previous year.
    (6) License holders:
    (i) Have 90 calendar days from the date the license was issued to 
export the quantity of California heavy crude oil authorized on the 
license. Within 30 days of any export under the license, the exporter 
must provide BXA with a certified statement confirming the date and 
quantity of California heavy crude oil exported.
    (ii) Must submit to BXA, prior to any export under the license, the 
documentation required by paragraph (g)(5)(iv) of this section.
    (iii) May combine authorized quantities into one or more shipments, 
provided that the validity period of none of the affected licenses has 
expired.
    (iv) Are prohibited from transferring the license to another party 
without prior written authorization from BXA.
    (7) BXA will allow a 10 percent tolerance on the unshipped balance 
based upon the volume of barrels it has authorized. BXA will allow a 25 
percent shipping tolerance on the total dollar value of the license. 
See Sec. 750.11 of the EAR for an explanation of shipping tolerances.
    (h) License Exception for certain shipments from the Strategic 
Petroleum Reserves (SPR). Subject to the requirements set forth in this 
paragraph, License Exception SPR may be used to export without a 
license foreign origin crude oil imported and owned by a foreign 
government or its representative which is imported for storage in, and 
stored in, the United States Strategic Petroleum Reserves pursuant to 
an appropriate agreement with the U.S. Government or an agency thereof. 
If such foreign origin oil is commingled with other oil in the SPR, 
such export is authorized under License Exception SPR only if the crude 
oil being exported is of the same quantity and of comparable quality as 
the foreign origin crude oil that was imported for storage in the SPR 
and the Department of Energy certifies this fact to BXA.
    (1) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception SPR.
    (2) A person exporting crude oil pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-SPR.''
    (i) License Exception for certain sample shipments. Subject to the 
requirements set forth in this paragraph, License Exception SS-SAMPLE 
may be used to export crude oil for analytic and testing purposes.
    (1) An exporter may ship up to 10 barrels of crude oil to any one 
end-user annually, up to an annual cumulative limit of 100 barrels per 
exporter.
    (2) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception SPR.
    (3) A person exporting crude oil pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-SAMPLE''.


Sec. 754.3  Petroleum products not including crude oil.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph in the ``License Requirements'' 
section of ECCNs 1C980, 1C982, 1C983, and 1C984 on the CCL (Supplement 
No. 1 to part 774 of the EAR), a license is required to all 
destinations, including Canada, for the export of petroleum products, 
excluding crude oil, listed in Supplement No. 1 to this part, that were 
produced or derived from the Naval Petroleum Reserves (NPR) or became 
available for export as a result of an exchange of any NPR produced or 
derived commodities.
    (b) License policy. (1) Applications for the export of petroleum 
products listed in Supplement No. 1 to this part that were produced or 
derived from the Naval Petroleum Reserves, or that became available for 
export as a result of an exchange for a Naval Petroleum Reserves 
produced or derived commodity, other than crude oil, will be denied, 
unless the President makes a finding required by the Naval Petroleum 
Reserves Production Act (10 U.S.C. 7430).
    (2) Applications that involve temporary exports or exchanges 
excepted from that Act will be approved.


Sec. 754.4  Unprocessed western red cedar.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph in the ``License Requirements'' 
section of ECCN 1C988 on the CCL (Supplement No. 1 to part 774 of the 
EAR), a license is required to all destinations, including Canada, for 
the export of unprocessed western red cedar covered by ECCN 1C988 
(Western red cedar (thuja plicata) logs and timber, and rough, dressed 
and worked lumber containing wane listed in Supplement No. 2 to this 
part). See paragraph (c) of this section for License Exceptions for 
timber harvested from public lands in the State of Alaska, private 
lands, or Indian lands, and see paragraph (d) of this section for 
relevant definitions.
    (b) Licensing policy. (1) BXA will generally deny applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into after September 30, 
1979.
    (2) BXA will consider, on a case-by-case basis, applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into prior to October 1, 
1979.
    (3) BXA will approve license applications for unprocessed western 
red cedar timber harvested from public lands in Alaska, private lands, 
and Indian lands. Applications must be submitted in accordance with the 
procedures set forth in paragraph (a) of this section. See paragraph 
(c) of this section for the availability of a License Exception.
    (c) License Exception for western red cedar (WRC). (1) Subject to 
the requirements described in paragraph (c) of this section, License 
Exception WRC may be used to export without a license unprocessed 
western red cedar timber harvested from Federal, State and other public 
lands in Alaska, all private lands,

[[Page 12848]]
and, lands held in trust for recognized Indian tribes by Federal or 
State agencies.
    (2) Exporters who use License Exception WRC must obtain and retain 
on file the following documents:
    (i) A statement by the exporter (or other appropriate 
documentation) indicating that the unprocessed western red cedar timber 
exported under this License Exception was not harvested from State or 
Federal lands outside the State of Alaska, and did not become available 
for export through substitution of commodities so harvested or 
produced. If the exporter did not harvest or produce the timber, the 
records or statement must identify the harvester or producer and must 
be accompanied by an identical statement from the harvester or 
producer. If any intermediate party or parties held title to the timber 
between harvesting and purchase, the exporter must also obtain such a 
statement, or equivalent documentation, from the intermediate party or 
parties and retain it on file.
    (ii) A certificate of inspection issued by a third party log 
scaling and grading organization, approved by the United States Forest 
Service, that:
    (A) Specifies the quantity in cubic meters or board feet, scribner 
rule, of unprocessed western red cedar timber to be exported; and
    (B) Lists each type of brand, tag, and/or paint marking that 
appears on any log or unprocessed lumber in the export shipment or, 
alternatively, on the logs from which the unprocessed timber was 
produced.
    (3) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception WRC.
    (4) A person exporting any item pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-WRC''.
    (d) License Applications. (1) Applicants requesting to export 
unprocessed western red cedar must submit a properly completed Form 
BXA-748P, Multipurpose License Form, other documents as may be required 
by BXA, and a signed statement from an authorized representative of the 
exporter, reading as follows:
    I, (Name) (Title) of (Exporter) HEREBY CERTIFY that to the best 
of my knowledge and belief the (Quantity) (cubic meters or board 
feed scribner) of unprocessed western red cedar timber that 
(Exporter) proposes to export was not harvested from State or 
Federal lands under contracts entered into after October 1, 1979,
----------------------------------------------------------------------
(Signature)
----------------------------------------------------------------------
(Date)

    (2) For Items [16] and [18] on Form BXA-748P, ``Various'' may be 
entered when there is more than one purchaser or ultimate consignee.
    (3) For each Form BXA-748P submitted, and for each export shipment 
made under a license, the exporter must assemble and retain for the 
period described in part 762 of the EAR, and produce or make available 
for inspection, the following:
    (i) A signed statement(s) by the harvester or producer, and each 
subsequent party having held title to the commodities, that the 
commodities in question were harvested under a contract to harvest 
unprocessed western red cedar from State or Federal lands, entered into 
before October 1, 1979; and
    (ii) A copy of the Shipper's Export Declaration.
    (4) A shipping tolerance of 5 percent in cubic feet or board feet 
scribner is allowed on the un-shipped balance of a commodity listed on 
a license. This tolerance applies only to the final quantity remaining 
un-shipped on a license against which more than one shipment is made 
and not to the original quantity authorized by such license. See 
Sec. 750.11 of the EAR for an explanation of shipping tolerances.
    (e) Definitions. When used in this section, the following terms 
have the meaning indicated:
    (1) Unprocessed western red cedar means western red cedar (thuja 
plicata) timber, logs, cants, flitches, and processed lumber containing 
wane on one or more sides, as defined in ECCN 1C988, that has not been 
processed into:
    (i) Lumber of American Lumber Standards Grades of Number 3 
dimension or better, or Pacific Lumber Inspection Bureau Export R-List 
Grades of Number 3 common or better grades, with a maximum cross 
section of 2,000 square centimeters (310 square inches) for any 
individual piece of processed western red cedar (WRC) being exported, 
regardless of grade;
    (ii) Chips, pulp, and pulp products;
    (iii) Veneer and plywood;
    (iv) Poles, posts, or pilings cut or treated with preservative for 
use as such and not intended to be further processed; and
    (v) Shakes and shingles.
    (2) Federal and State lands means Federal and State lands, 
excluding lands in the State of Alaska and lands held in trust by any 
Federal or State official or agency for a recognized Indian tribe or 
for any member of such tribe.
    (3) Contract harvester means any person who, on October 1, 1979, 
had an outstanding contractual commitment to harvest western red cedar 
timber from State and Federal lands and who can show by previous 
business practice or other means that the contractual commitment was 
made with the intent of exporting or selling for export in unprocessed 
form all or part of the commodities to be harvested.
    (4) Producer means any person engaged in a process that transforms 
an unprocessed western red cedar commodity (e.g., western red cedar 
timber) into another unprocessed western red cedar commodity (e.g., 
cants) primarily through a saw mill.


Sec. 754.5  Horses for export by sea.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph of the ``License Requirements'' 
section of ECCN 0A980 on the CCL (Supplement No. 1 to part 774 of the 
EAR) a license is required for the export of horses exported by sea to 
all destinations, including Canada.
    (b) License policy. (1) License applications for the export of 
horses by sea for the purposes of slaughter will be denied.
    (2) Other license applications will be approved if BXA, in 
consultation with the Department of Agriculture, determines that the 
horses are not intended for slaughter. You must provide a statement in 
the additional information section of the Form BXA-748P, certifying 
that no horse under consignment is being exported for the purpose of 
slaughter.
    (3) Each application for export may cover only one consignment of 
horses.


Sec. 754.6  Registration of U.S. agricultural commodities for exemption 
from short supply limitations on export.

    (a) Scope. Under the provisions of section 7(g) of the Export 
Administration Act of 1979 (EAA), agricultural commodities of U.S. 
origin purchased by or for use in a foreign country and stored in the 
United States for export at a later date may be registered with BXA for 
exemption from any quantitative limitations on export that may 
subsequently be imposed under section 7 of the EAA for reasons of short 
supply.
    (b) Applications for registration. Applications to register 
agricultural commodities must be submitted by a person or firm subject 
to the jurisdiction of the United States who is acting as a duly 
authorized agent for the foreign purchaser.
    (c) Mailing address. Submit applications pursuant to the provisions 
of section 7(g) of the EAA to: Bureau of Export Administration, U.S. 
Department

[[Page 12849]]

of Commerce, P.O. Box 273, Washington, D.C. 20230.


Sec. 754.7  Petitions for the imposition of monitoring or controls on 
recyclable metallic materials; Public hearings.

    (a) Scope. Section 7(c) of the Export Administration Act of 1979 
(EAA) provides for the filing and review of petitions seeking the 
imposition of monitoring or controls on recyclable metallic materials.
    (b) Eligibility for filing petitions. Any entity, including a trade 
association, firm or certified or recognized union or group of workers, 
which is representative of an industry or a substantial segment of an 
industry which processes metallic materials capable of being recycled 
with respect to which an increase in domestic prices or a domestic 
shortage, either of which results from increased exports, has or may 
have a significant adverse effect on the national economy or any sector 
thereof, may submit a written petition to BXA requesting the monitoring 
of exports, or the imposition of export controls, or both, with respect 
to such materials.
    (c) Public hearings. The petitioner may also request a public 
hearing. Public hearings may also be requested by an entity, including 
a trade association, firm, or certified or recognized union or group of 
workers, which is representative of an industry or a substantial 
segment of an industry which processes, produces or exports the 
metallic materials which are the subject of a petition.
    (d) Mailing address. Submit petitions pursuant to section 7(c) of 
the EAA to: Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, D.C. 20230.

Supplement No. 1 to Part 754--Petroleum and Petroleum Products

    This Supplement provides relevant Schedule B numbers and a 
commodity description of the items controlled by ECCNs 1C980, 1C981, 
1C982, 1C983, and 1C984.

------------------------------------------------------------------------
        Schedule B No.                  Commodity description 1         
------------------------------------------------------------------------
                                Crude Oil                               
                                                                        
------------------------------------------------------------------------
2709.0710....................  Crude petroleum (including reconstituted 
                                crude petroleum), tar sands and crude   
                                shale oil.                              
2710.0710....................  Petroleum, partly refined for further    
                                refining.                               
                                                                        
------------------------------------------------------------------------
                            Petroleum Products                          
                                                                        
------------------------------------------------------------------------
2804.29.0010.................  Helium.                                  
2804.10.0000.................  Hydrogen.                                
2814.20.0000.................  Ammonia, aqueous.                        
2811.21.0000.................  Carbon dioxide and carbon monoxide.      
2710.00.0550.................  Distillate fuel oils, having a Saybolt   
                                Universal viscosity at 100  deg.F. of   
                                less than 45 seconds.                   
2710.00.1007.................  Distillate fuel oils (No. 4 type) having 
                                a Saybolt Universal viscosity at 100    
                                deg.F. of 45 seconds or more, but not   
                                more than 125 seconds.                  
2710.00.1050.................  Fuel oils, having a Saybolt Universal    
                                viscosity at 100  deg.F. of more than   
                                125 seconds.                            
2711.11.0000.................  Natural gas, methane and mixtures thereof
                                (including liquefied natural gas and    
                                synthetic or substitute natural gas).2  
2711.14.0000.................  Ethane with a minimum purity of 95 liquid
                                volume percent.                         
2711.12.0000.................  Propane with a minimum purity of 90      
                                liquid volume percent.                  
2711.13.0000.................  Butane with a minimum purity of 90 liquid
                                volume percent.                         
2711.19.0000.................  Other natural gases (including mixtures),
                                n.s.p.f. and manufactured gas.          
2710.00.1510.................  Gasoline, motor fuel (including          
                                aviation).                              
2710.00.1520.................  Jet fuel, naphtha-type.                  
2710.00.1530.................  Jet fuel, kerosene-type.                 
2710.00.1550.................  Other motor fuel (including tractor fuel 
                                and stationary turbine fuel).           
2710.00.2000.................  Kerosene derived from petroleum, shale   
                                oil, natural gas, or combinations       
                                thereof (except motor fuel).            
2710.00.2500.................  Naphthas derived from petroleum, shale   
                                oil, natural gas, or combinations       
                                thereof (except motor fuel).            
2710.00.5030.................  Mineral oil of medicinal grade derived   
                                from petroleum, shale oil or both.      
3819.00.0000.................  Hydraulic fluids, including automatic    
                                transmission fluids.                    
2710.00.3010.................  Aviation engine lubricating oil, except  
                                jet engine lubricating oil.             
2710.00.3020.................  Jet engine lubricating oil 475.4520      
                                Automotive, diesel, and marine engine   
                                lubricating oil.                        
2710.00.3030.................  Turbine lubricating oil, including       
                                marine.                                 
2710.00.3040.................  Automotive gear oils.                    
2710.00.3050.................  Steam cylinder oils.                     
2710.00.5045.................  Insulating or transformer oils.          
2710.00.3070.................  Quenching or cutting oils.               
2710.00.3080.................  Lubricating oils, n.s.p.f., except white 
                                mineral oil.                            
2710.00.3700.................  Greases.                                 
2710.00......................  Carbon black feedstock oil.              
2712.10.0000.................  Petroleum jelly and petrolatum, all      
                                grades.                                 
2710.00.5040.................  White mineral oil, except medicinal      
                                grade.                                  
2710.00.5060.................  Other non-lubricating and non-fuel       
                                petroleum oils, n.s.p.f.                
2814.10.0000.................  Ammonia, anhydrous.                      
2712.20.0000.................  Paraffin wax, crystalline, fully refined.
2712.90.0000.................  Paraffin wax, crystalline, except fully  
                                refined.                                
2712.90.0000.................  Paraffin wax, all others (including      
                                microcrystalline wax).                  
2517.30.0000.................  Paving mixtures, bituminous, based on    
                                asphalt and petroleum.                  
2713.12.0000.................  Petroleum coke, calcined.                
2714.........................  Petroleum asphalt.                       

[[Page 12850]]
                                                                        
2713.11.0000.................  Petroleum coke, except calcined.         
------------------------------------------------------------------------
1 The commodity descriptions provided in this Supplement for the most   
  part reflect those found in the U.S. Department of Commerce, Bureau of
  the Census, (1990 Edition) Statistical Classification of Domestic and 
  Foreign Commodities Exported from the United States (1990 Ed., as     
  revised through Jan. 1994). In some instances the descriptions are    
  expanded or modified to ensure proper identification of products      
  subject to export restriction. The descriptions in this Supplement,   
  rather than Schedule B Number, determine the commodity included in the
  definition of ``Petroleum'' under the Naval Petroleum Reserves        
  Production Act.                                                       
2 Natural gas and liquefied natural gas (LNG), and synthetic natural gas
  commingled with natural gas (Schedule B Nos. 2711.11.0000,            
  2711.14.0000, and 2711.19.0000) require export authorization from the 
  U.S. Department of Energy.                                            



Supplement No. 2 to Part 754--Unprocessed Western Red Cedar

    This Supplement provides relevant Schedule B numbers and a 
commodity description of the items controlled by ECCN 1C988. The

----------------------------------------------------------------------------------------------------------------
            Schedule B No. 1 1                          Commodity description                Unit of quantity 2 
----------------------------------------------------------------------------------------------------------------
200.3516.................................  Western red cedar (Thuja plicata) logs and       MBF                 
                                            timber.                                                             
202.2820.................................  Western red cedar lumber; rough, containing      MBF                 
                                            wane.                                                               
202.2840.................................  Western red cedar lumber; dressed or worked,     MBF                 
                                            containing wane.                                                    
----------------------------------------------------------------------------------------------------------------
1 Schedule B Numbers are provided only as a guide to proper completion of the Shipper's Export Declaration, Form
  No. 7525 V.                                                                                                   
2 For export licensing purposes, report commodities on Form BXA-748P in units of quantity indicated.            

Supplement No. 3 to Part 754--Statutory Provisions Dealing With Exports 
of Crude Oil

[The statutory material published in this Supplement is for the 
information of the reader only. See the U.S. Code for the official 
text of this material.]

Public Law 104-58

SEC. 201. EXPORTS OF ALASKAN NORTH SLOPE OIL.

    Section 28 of the Mineral Leasing Act (30 U.S.C. 185(s)) is 
amended by amending subsection(s) to read as follows:

``EXPORTS OF ALASKAN NORTH SLOPE OIL

    (1) Subject to paragraphs (2) through (6) of this subsection and 
notwithstanding any other provision of this Act or any other 
provision of laws (including any regulation) applicable to the 
export of oil transported by pipeline over right-of-way granted 
pursuant to section 203 of the Trans-Alaska Pipeline Authorization 
Act (43 U.S.C. 1652), such oil may be exported unless the President 
finds that exportation of this oil is not in the national interest. 
The President shall make his national interest determination within 
five months of the date of enactment of this subsection. In 
evaluating whether exports of this oil are in the national interest, 
the President shall at a minimum consider--
    (A) whether exports of this oil would diminish the total 
quantity or quality of petroleum available to the United States;
    (B) the results of an appropriate environmental review, 
including consideration of appropriate measures to mitigate any 
potential adverse effects of exports of this oil on the environment, 
which shall be completed within four months of the date of the 
enactment of this subsection; and
    (C) whether exports of this oil are likely to cause sustained 
material oil supply shortages or sustained oil prices significantly 
above world market levels that would cause sustained material 
adverse employment effects in the United States or that would cause 
substantial harm to consumers, including noncontiguous States and 
Pacific territories.
    If the President determines that exports of this oil are in the 
national interest, he may impose such terms and conditions (other 
than a volume limitation) as are necessary or appropriate to ensure 
that such exports are consistent with the national interest.
    (2) Except in the case of oil exported to a country with which 
the United States entered into a bilateral international oil supply 
agreement before November 26, 1979, or to a country pursuant to the 
International Emergency Oil Sharing Plan of the International Energy 
Agency, any oil transported by pipeline over right-of-way granted 
pursuant to section 203 of the Trans-Alaska Pipeline Authorization 
Act (43 U.S.C. 1652) shall, when exported, be transported by a 
vessel documented under the laws of the United States and owned by a 
citizen of the United States (as determined in accordance with 
section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802)).
    (3) Nothing in this subsection shall restrict the authority of 
the President under the Constitution, the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.), the National 
Emergencies Act ( ) U.S.C. 1601 et seq.), or Part B of title II of 
the Energy Policy and Conservation Act (42 U.S.C. 6271-76) to 
prohibit exports.
    (4) The Secretary of Commerce shall issue any rules necessary 
for implementation of the President's national interest 
determination, including any licensing requirements and conditions, 
within 30 days of the date of such determination by the President. 
The Secretary of Commerce shall consult with the Secretary of Energy 
in administering the provisions of this subsection.
    (5) If the Secretary of Commerce finds that exporting oil under 
authority of this subsection has caused sustained material oil 
supply shortage or sustained oil prices significantly above world 
market levels and further finds that these supply shortages or price 
increases have caused or are likely to cause sustained material 
adverse employment effects in the United States, the Secretary of 
Commerce, in consultation with the Secretary of Energy, shall 
recommend, and the President may take, appropriate action concerning 
exports of this oil, which may include modifying or revoking 
authority to export such oil.
    (6) Administrative action under this subsection is not subject 
to sections 551 and 553 through 559 of title 5, United States Code.

MINERAL LANDS LEASING ACT

30 U.S.C. 185(u)

Limitations on Export

    Any domestically produced crude oil transported by pipeline over 
rights-of-way granted pursuant to this section, except such crude 
oil which is either exchanged in similar quantity for convenience or 
increased efficiency of transportation with persons or the 
government of an adjacent foreign state, or which is temporarily 
exported for convenience or increased efficiency of transportation 
across parts of an adjacent foreign state and reenters the United 
States, shall be subject to all of the limitations and licensing 
requirements of the Export Administration Act of 1979 (50 U.S.C. 
App. 2401 and following) and, in addition, before any crude oil 
subject this section may be exported under the limitations and 
licensing requirements and penalty and enforcement provisions of the 
Export Administration Act of 1979 the President must make and 
publish an express finding that such exports will not diminish the 
total quantity or quality of petroleum available to the United 
States, and are in the national interest and are in accord with the 
provisions of the Export Administration Act of 1979: Provided, That 
the President shall submit reports to the Congress containing 
findings made under

[[Page 12851]]
this section, and after the date of receipt of such report Congress 
shall have a period of sixty calendar days, thirty days of which 
Congress must have been in session, to consider whether exports 
under the terms of this section are in the national interest. If the 
Congress within this time period passes a concurrent resolution of 
disapproval stating disagreement with the President's finding 
concerning the national interest, further exports made pursuant to 
the aforementioned Presidential finding shall cease.

NAVAL PETROLEUM RESERVES PRODUCTION ACT

10 Sec. 7430(e)

    Any petroleum produced from the naval petroleum reserves, except 
such petroleum which is either exchanged in similar quantities for 
convenience or increased efficiency of transportation with persons 
or the government of an adjacent foreign state, or which is 
temporarily exported for convenience or increased efficiency of 
transportation across parts of an adjacent foreign state and 
reenters the United States, shall be subject to all of the 
limitations and licensing requirements of the Export Administration 
Act of 1979 (50 U.S.C. App. 2401 et seq.) and, in addition, before 
any petroleum subject to this section may be exported under the 
limitations and licensing requirement and penalty and enforcement 
provisions of the Export Administration Act of 1979, the President 
must make and publish an express finding that such exports will not 
diminish the total quality or quantity of petroleum available to the 
United States and that such exports are in the national interest and 
are in accord with the Export Administration Act of 1979.

OUTER CONTINENTAL SHELF LANDS ACT

43 U.S.C. 1354

    (a) Application of Export Administration provisions.
    Except as provided in subsection (d) of this section, any oil or 
gas produced from the outer Continental Shelf shall be subject to 
the requirements and provisions of the Export Administration Act of 
1969. Note that the Export Administration Act of 1969, referred to 
in paragraphs (a) and (b) of the Supplement, terminated on September 
30, 1979, pursuant to the terms of that Act.
    (b) Condition precedent to exportation; express finding by 
President of no increase in reliance on imported oil or gas.
    Before any oil or gas subject to this section may be exported 
under the requirements and provisions of the Export Administration 
Act of 1969, the President shall make and publish an express finding 
that such exports will not increase reliance on imported oil or gas, 
are in the national interest, and are in accord with the provisions 
of the Export Administration Act of 1969.
    (c) Report of findings by President to Congress; joint 
resolution of disagreement with findings of President.
    The President shall submit reports to Congress containing 
findings made under this section, and after the date of receipt of 
such reports Congress shall have a period of sixty calendar days, 
thirty days of which Congress must have been in session, to consider 
whether export under the terms of this section are in the national 
interest. If the Congress within such time period passes a 
concurrent resolution of disapproval stating disagreement with the 
President's finding concerning the national interest, further 
exports made pursuant to such Presidential findings shall cease.
    (d) Exchange or temporary exportation of oil and gas for 
convenience or efficiency of transportation.
    The provisions of this section shall not apply to any oil or gas 
which is either exchanged in similar quantity for convenience or 
increase efficiency of transportation with persons or the government 
of a foreign state, or which is temporarily exported for convenience 
or increased efficiency of transportation across parts of an 
adjacent foreign state and reenters the United States, or which is 
exchanged or exported pursuant to an existing international 
agreement.

PART 756--APPEALS

Sec.
756.1  Introduction.
756.2  Appeal from an administrative action.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 756.1  Introduction.

    (a) Scope. This part 756 describes the procedures applicable to 
appeals from administrative actions taken under the Export 
Administration Act (EAA) or the Export Administration Regulations 
(EAR). (In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C). Any person directly and adversely affected 
by an administrative action taken by the Bureau of Export 
Administration (BXA) may appeal to the Under Secretary for 
reconsideration of that administration action. The following types of 
administrative actions are not subject to the appeals procedures 
described in this part 756:
    (1) Issuance, amendment, revocation, or appeal of a regulation. 
(These requests may be submitted to BXA at any time.)
    (2) Denial or probation orders, civil penalties, sanctions, or 
other actions under parts 764 and 766 of the EAR.
    (b) Definitions. Reserved.


Sec. 756.2  Appeal from an administrative action.

    (a) Review and appeal officials. The Under Secretary may delegate 
to the Deputy Under Secretary for Export Administration or to another 
BXA official the authority to review and decide the appeal. In 
addition, the Under Secretary may designate any BXA official to be an 
appeals coordinator to assist in the review and processing of an appeal 
under this part. The responsibilities of an appeals coordinator may 
include presiding over informal hearings.
    (b) Appeal procedures--(1) Filing. An appeal under this part must 
be received by the Under Secretary for Export Administration, Bureau of 
Export Administration, U.S. Department of Commerce, Room H-3886C, 14th 
Street and Pennsylvania Avenue, N.W., Washington, DC 20230, not later 
than 45 days after the date appearing on the written notice of 
administrative action.
    (2) Content of appeal. The appeal must include a full written 
statement in support of appellant's position. The appeal must include a 
precise statement of why the appellant believes the administrative 
action has a direct and adverse effect and should be reversed or 
modified. The Under Secretary may request additional information that 
would be helpful in resolving the appeal, and may accept additional 
submissions. The Under Secretary will not ordinarily accept any 
submission filed more than 30 days after the filing of the appeal or of 
any requested submission.
    (3) Request for informal hearing. In addition to the written 
statement submitted in support of an appeal, an appellant may request, 
in writing, at the time an appeal is filed, an opportunity for an 
informal hearing. The Under Secretary may grant or deny a request for 
an informal hearing. Any hearings will be held in the District of 
Columbia unless the Under Secretary determines, based upon good cause 
shown, that another location would be better.
    (4) Informal hearing procedures. (i) Presentations. The Under 
Secretary shall provide an opportunity for the appellant to make an 
oral presentation based on the materials previously submitted by the 
appellant or made available by the Department in connection with the 
administrative action. The Under Secretary may require that any facts 
in controversy be covered by an affidavit or testimony given under oath 
or affirmation.
    (ii) Evidence. The rules of evidence prevailing in courts of law do 
not apply, and all evidentiary material deemed by the Under Secretary 
to be relevant and material to the proceeding, and not unduly 
repetitious, will be received and given appropriate weight.
    (iii) Procedural questions. The Under Secretary has the authority 
to limit the number of people attending the hearing, to impose any time 
or other limitations deemed reasonable, and to determine all procedural 
questions.
    (iv) Transcript. A transcript of an informal hearing shall not be 
made,

[[Page 12852]]
unless the Under Secretary determines that the national interest or 
other good cause warrants it, or the appellant requests a transcript. 
If the appellant requests a transcript, the appellant will be 
responsible for paying all expenses related to production of the 
transcript.
    (v) Report. When the Under Secretary designates another BXA 
official to conduct an informal hearing, that official will submit a 
written report containing a summary of the hearing and recommended 
action to the Under Secretary.
    (c) DecisionsT1(1)--Determination of appeals. In addition to the 
documents specifically submitted in connection with the appeal, the 
Under Secretary shall consider any recommendations, reports, or 
relevant documents available to BXA in determining the appeal, but 
shall not be bound by any such recommendation, nor prevented from 
considering any other information, or consulting with any other person 
or groups, in making a determination. The Under Secretary may adopt any 
other procedures deemed necessary and reasonable for considering an 
appeal. The Under Secretary shall decide an appeal within a reasonable 
time after receipt of the appeal. The decision shall be issued to the 
appellant in writing and contain a statement of the reasons for the 
action.
    (2) Effect of the determination. The decision of the Under 
Secretary shall be final.
    (d) Effect of appeal. Acceptance and consideration of an appeal 
shall not affect any administrative action, pending or in effect, 
unless the Under Secretary, upon request by the appellant and with 
opportunity for response, grants a stay.

PART 758--EXPORT CLEARANCE REQUIREMENTS

Sec.
758.1  Export clearance requirements.
758.2  Use of export license.
758.3  Shipper's Export Declaration (SED).
758.4  Conformity of documents for shipments under export licenses.
758.5  General destination control requirements.
758.6  Destination control statement.
758.7  Authority of the Office of Export Enforcement, the Bureau of 
Export Administration, Customs offices and Postmasters in clearing 
shipments.
758.8  Return or unloading of cargo at direction of BXA, the Office 
of Export Enforcement or Customs Service.
758.9  Other applicable laws and regulations.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 758.1  Export clearance requirements.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C.
    (a) Responsibility of licensee, exporter and agent. (1) If you are 
issued a BXA license, or you rely on a License Exception described in 
part 740 of the EAR, you are responsible for the proper use of that 
license or License Exception and for the performance of all of its 
terms and conditions.
    (2) If you export without either a license issued by BXA or a 
License Exception, you are responsible for determining that the 
transaction is outside the scope of the EAR or the export is designated 
as ``No License Required'' as described in paragraph (a)(3) of this 
section.
    (3)(i) ``No License Required''. Items that are listed on the 
Commerce Control List (CCL) (Supplement No. 1 to part 774 of the EAR) 
but that do not require a license by reason of the Country Chart 
contained in Supplement 1 to part 738 of the EAR, and items designated 
EAR99 (See Sec. 734.3(c) of the EAR entitled ``Scope of the EAR'') must 
be designated as ``NLR'', or ``no license required'', on your shipping 
documents in accordance with the provisions of this part.
    (ii) NLR notation. Entering the symbol NLR is a representation to 
the U.S. Government that the items being exported are listed on the CCL 
but do not require a license by reason of the Country Chart or that 
they are within the scope of EAR99 (See Sec. 734.3(c) of the EAR 
entitled ``Scope of the EAR''); that they do not require a license 
under General Prohibitions One (Exports and Reexports), Two (Parts and 
Components Reexports), or Three (Foreign-produced Direct Product 
Reexports); that General Prohibitions Four through Ten do not apply to 
the given export, reexport, or other activity; and that the items are 
subject to the EAR.
    (4) License Exception symbol. Entering a License Exception symbol 
on an export control document is a representation to the U.S. 
Government that the transaction meets all of the terms and conditions 
of the License Exception cited. (See part 740 of the EAR for details 
regarding License Exceptions.)
    (5) Software and technology not subject to the EAR. If you are 
exporting software or technology that is outside the scope of the EAR 
as described in Secs. 734.7 through 734.11 of the EAR, you may use the 
symbol TSPA. Use of this symbol is optional; however, if you enter it 
on an export control document, you are making a representation to the 
U.S. Government that the technology or software is outside the scope of 
the EAR.
    (b) Forwarding agent.--(1) Authorizing a forwarding agent. A 
forwarding agent is a person the exporter authorizes to perform 
services that facilitate the export described on the Shipper's Export 
Declaration (SED). The agent must be authorized to act on behalf of the 
exporter either for the specific transaction for which the agent is 
submitting the SED or under a general power of attorney. The Foreign 
Trade Statistics Regulations of the Bureau of the Census (15 CFR part 
30) provide the specific requirements for obtaining authorization as a 
forwarding agent.
    (2) Forwarding agent as licensee. If the forwarding agent is 
appointed at the suggestion of a foreign buyer, the seller may insist 
that the agent apply for the export license. See Sec. 748.4(a)(1) of 
the EAR which defines parties to a transaction.
    (3) Record and proof of agent's authority. The power-of-attorney or 
other authorization from the exporter must be retained on file in the 
forwarding agent's office while the authorization is in force and for a 
period of five years after the last action taken by the forwarding 
agent under the authority. During this retention period, the forwarding 
agent must make its delegation of authority from the exporter available 
for inspection on demand, in accordance with the provisions of 
Sec. 762.6 of the EAR. This recordkeeping and inspection requirement 
also applies to any redelegation of the forwarding agent's authority 
and to any person to whom the forwarding agent redelegates its 
authority. (For further recordkeeping requirements see part 762 of the 
EAR).
    (c) Responsibility for compliance. Acting through a forwarding 
agent, or other agent or delegation or redelegation of authority, does 
not relieve anyone of responsibility for compliance with the EAR. 
Forwarding agents, carriers and others who participate in transactions 
that are subject to the EAR are also responsible for complying with the 
EAR.
    (d) Exports by U.S. Mail.--(1) Exports made under a license issued 
by BXA. Before making an export by U.S. Mail that is authorized by a 
license issued by BXA, you must enter the license number on the address 
side of the parcel and submit a properly executed SED to the post 
office at the place of mailing, when required by the regulations in 
this part and/or the Foreign Trade Statistics

[[Page 12853]]
Regulations of the U.S. Bureau of the Census. 1

    \1\ The Shipper's Export Declaration (U.S. Department of 
Commerce form 7525-V) may be purchased from the Superintendent of 
Documents, U.S. Government Printing Office, Washington, DC 20402, or 
it may be privately printed. Form 7525-V-Alt (Intermodal), must be 
privately printed. Privately printed forms must strictly conform to 
the official form in all respects. Samples of these forms may be 
obtained from the Bureau of the Census, Washington, DC 20233, local 
Customs offices, and the U.S. Department of Commerce District 
Offices.
---------------------------------------------------------------------------

    (2) Shipments without a license. The requirements of this paragraph 
apply whenever you export items that do not require a license under the 
EAR. These requirements apply regardless of whether your transaction 
does not require a license because the item you are going to ship is 
encompassed with EAR99 (See Sec. 734.3(c) of the EAR entitled ``Scope 
of the EAR''), because the item, although on the list, does not require 
a license to be exported to the destination to which you intend to ship 
or because the transaction qualifies for a License Exception as 
described in part 740 of the EAR.
    (i) Shipments to Canada for consumption therein. An SED is not 
required for exports of items to Canada if the items are for 
consumption in Canada and the export transaction does not require a 
license from BXA. Note that if the item you are exporting to Canada is 
controlled by another government agency, the regulations of that agency 
may require you to file a SED.
    (ii) Shipments to Puerto Rico or U.S. territories or possessions. 
Exports of items to Puerto Rico or the U.S. territories or possessions 
do not require a license issued by BXA. However, the regulations of the 
Census Bureau (15 CFR part 30) may still require you to file a SED.
    (iii) Shipments valued over $500. When mailing an item from one 
business concern to another where the total value of the items being 
shipped exceeds $500, you must present an executed SED to the post 
office at the place of mailing unless the EAR or the Bureau of the 
Census Foreign Trade Statistics Regulations specifically provide an 
exception to this requirement. If either the exporter or recipient is 
not a business concern, no SED is required.
    (iv) Designation on SED and/or parcel. If you are exporting an item 
that is encompassed within EAR99 (See Sec. 734.3(c) of the EAR entitled 
``Scope of the EAR''), or one that is listed on the CCL but no license 
is required to the destination to which you are shipping, or you are 
exporting pursuant to a License Exception, as described in part 740 of 
the EAR, you must enter the appropriate symbol indicating the absence 
of a license requirement either NLR, meaning ``No License Required'' or 
the applicable License Exception symbol, on the SED and on the address 
side of the parcel along with the phrase ``Export License Not 
Required.'' If your transaction is one for which you are not required 
to file a SED, you must enter the appropriate symbol NLR, meaning no 
license required or of the applicable License Exception on the address 
side of the parcel along with the phrase ``Export License Not 
Required.'' If you are exporting technology or software that is outside 
the scope of the EAR as described in Sec. 734.7 through 734.11 you may 
enter the symbol TSPA.
    (A) By entering the symbol NLR you are representing to the U.S. 
Government that the items you are exporting are listed on the CCL (See 
Supplement No. 1 to part 774 of the EAR) but do not require a license 
by reason of the Country Chart (Supplement No. 1 to part 738 of the 
EAR) or because they are encompassed within the EAR99 (See 
Sec. 734.3(c) of the EAR entitled ``Scope of the EAR''); that they do 
not require a license under General Prohibitions One (Exports and 
reexports of controlled items to listed countries), Two (Parts and 
Components Reexports), or Three (Foreign Produced Direct Product 
Reexports); that General Prohibitions Four through Ten do not apply to 
the given export, reexport, or other activity; and that the item is 
subject to the EAR.
    (B) By entering a License Exception symbol, you are representing to 
the U.S. Government that your transaction meets all of the terms and 
conditions of the License Exception you are using. (See part 740 of the 
EAR for details regarding License Exceptions).
    (C) By entering the symbol TSPA you are representing to the U.S. 
Government that the technology or software you are exporting is outside 
the scope of the EAR.
    (v) Gift parcels. If you are sending a gift parcel pursuant to the 
requirements of Sec. 746.16 of the EAR, you must enter the phrase 
``Gift--export license not required'' on any customs declaration 
documents and on the address side of the parcel.
    (vi) Software and technology. If you are exporting software or 
technology, the export of which is authorized under the License 
Exceptions in Sec. 740.17 through Sec. 740.21 of the EAR, you do not 
need to make any notation on the package. If you are exporting software 
or technology that is outside the scope of the EAR, check to see if any 
other agency's regulations require specific markings on the package.
    (3) When you enter any of the symbols or phrases referred to in 
paragraph (d) of this section on the documents or packages, you are 
certifying to the post office and to BXA that you are exporting the 
package in compliance with all of the terms and provisions of an 
applicable License Exception or other authority to export.
    (e) Exports by means other than U.S. Mail. (1) When SEDs are 
required to be submitted, the exporter or the exporter's agent must 
present a duly executed SED to the exporting carrier before the vessel, 
aircraft, or overland transport depart.
    (i) Exemptions to SED. A SED is not required for:
    (A) Any shipment, other than a shipment made under a license issued 
by BXA, to any country in Country Group B (See Supplement No. 1 to part 
740 of the EAR) or to the People's Republic of China if the shipment is 
valued at $2,500 or less per Schedule B Number. The schedule B number 
of an item is that shown in the current edition of Schedule B, 
Statistical Classification of Domestic and Foreign Commodities Exported 
from the United States. In this Sec. 758.1(e), ``shipment'' means all 
items classified under a single Schedule B Number, shipped on the same 
carrier, from one exporter to one importer. The Foreign Trade 
Statistics Regulations of the Bureau of the Census (15 CFR part 30) 
shall govern the valuation of items when determining whether a shipment 
meets the $2,500 threshold of this Sec. 758.1(e)(1)(i)(A).
    (B) Any shipment reported under the provisions of the Monthly 
Reporting Procedure (Sec. 758.3(o) of this part); or
    (C) Any shipment made under any other exception to the SED 
requirements found in Subpart D of the Bureau of the Census' Foreign 
Trade Statistics Regulations. See Supplement No. 1 to this part 758.)
    (ii) Exceptions from SED requirements. (A) Statement on shipping 
documents. If you are exempt by paragraph (e)(1) of this section from 
the requirement of filing a SED, the Bureau of the Census Foreign Trade 
Statistics Regulations (FTSR) (15 CFR 30.50), require you to make a 
statement on the bill of lading, air waybill, or other loading document 
describing the basis for the exemption and referencing the specific 
section of the FTSR where the exemption is provided, unless the 
exemption is based on value and destination. If the exemption is based 
on the value and destination of your shipment, you must state the basis 
for the exemption, but you do not have to cite a reference to the 
specific section of the FTSR containing the exemption.

[[Page 12854]]

    (B) Monthly reporting procedures. (1) All forwarders or brokers who 
use the monthly reporting procedures described in FTSR Sec. 30.39 (15 
CFR 30.39) on behalf of exporters who are not themselves exempt from 
the individual filing requirement must also include on the bill of 
lading, air waybill (including house air waybill), or other loading 
document either the number of and expiration date of an export license 
issued by BXA, or the appropriate symbol indicating the inapplicability 
of an export license requirement (either NLR, meaning ``No License 
Required'' or of the applicable License Exception, from part 740 of the 
EAR).
    (2) The notation required by paragraph (e)(1)(ii)(B)(1) of this 
section applies to any bill of lading or other loading document, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, this requirement does not 
apply to a ``master'' bill of lading or other loading document issued 
by a carrier to cover a consolidated shipment. The bill of lading or 
other loading document must be available for inspection along with the 
goods or data prior to lading on the carrier.
    (2) Export carrier SED information. The exporting carrier, or if 
none is utilized, the exporter or agent is responsible for the accuracy 
of the following items of information (where required) on the SED:
    (i) Name of carrier (including flag of vessel),
    (ii) U.S. Customs port of export,
    (iii) Method of transportation,
    (iv) Foreign port of unloading,
    (v) Bill of lading or air waybill number, and
    (vi) Whether or not containerized.
    (3) Exports not requiring a license. Even if your shipment does not 
require a license from BXA, it may still require a SED. Before 
shipping, check the Bureau of the Census Foreign Trade Statistics 
Regulations for the complete SED requirements.
    (f) Shipments transiting Canada en route to other countries--(1) 
Shipments moving under individual SED. When an export to a foreign 
country is made in transit through Canada, and the shipment is one for 
which an individual SED is required by this part 758, the U.S. exporter 
must submit to the Canadian Customs authorities at the Canadian port of 
entry a copy of the U.S. SED, Form 7525-V, certified by the exporter as 
``A True Copy'' of the original SED.
    (2) Shipments for which individual SED are not required. When an 
export to a foreign country is made in transit through Canada, and the 
shipment is one for which an individual SED is not required because:
    (i) The forwarder or broker is authorized to report export 
information to Census by means other than an individual SED; or
    (ii) The shipment qualifies for a specific exemption (listed in 
Subpart D of the Census Bureau Foreign Trade Statistics Regulations), 
the forwarder or broker must include the number of and expiration date 
of the license issued by BXA, or the appropriate symbol indicating the 
inapplicability of an export license requirement (either NLR, meaning 
``No License Required'' of the applicable License Exception from part 
740 of the EAR on the bill of lading or other loading document as 
directed in paragraph (e)(2) of this section). The bill of lading or 
other loading document properly annotated with respect to the FTSR SED 
exemption or exception, along with the license authorization, when 
required, must be displayed to the Canadian Customs authorities at the 
Canadian port of entry and a copy provided, if requested by the 
Canadian authorities.


Sec. 758.2  Use of export license.

    (a) License valid for shipment from any port. A license issued by 
BXA authorizes exports from the United States from any U.S. port of 
export unless the license notes otherwise. Items that leave the United 
States at one port, cross adjacent foreign territory, and reenter the 
United States at another port before final export to a foreign country 
will be treated as an export from the last U.S. port of export.
    (b) Shipments against expiring license. (1) Any item that has not 
departed from the last U.S. port of export by midnight of the 
expiration date of the license may not be exported under that license 
unless the shipment meets the requirements of paragraph (b)(1)(i) or 
(ii) of this section.
    (i) BXA grants an extension; or
    (ii) Prior to midnight of the expiration date of the license, the 
items:
    (A) Were laden aboard the vessel; or
    (B) Were located on a pier ready for loading and not for storage, 
and were booked for a vessel that was at the pier ready for loading; or
    (2) When the vessel is expected to be available at the pier for 
loading before the license expires, but exceptional and unforeseen 
circumstances delay it, the items may be exported without an extension 
of the license, if in the judgment of the U.S. Customs Service or BXA, 
undue hardship would otherwise result.
    (c) Reshipment of undelivered items. If the consignee does not 
receive an export made under a license because the carrier failed to 
deliver it, the exporter may reship the same or an identical item 
subject to the same limitations as to quantity or value as described on 
the license to the same consignee and destination under the same 
license. Before reshipping, the exporter must submit to the OEXS 
satisfactory evidence of the original export and of the delivery 
failure, together with a satisfactory explanation of the delivery 
failure. If an item is to be reshipped to any person other than the 
original consignee, the shipment is deemed to be a new export and is 
subject to all current EAR regarding the specific item and destination.


Sec. 758.3  Shipper's Export Declaration (SED).

    (a) SED presentation requirement. Both the Foreign Trade Statistics 
Regulations of the Census Bureau (15 CFR part 30) and these Export 
Administration Regulations require that SED's be submitted to the U.S. 
Government. There are a few exceptions to this rule, but if you are 
required to submit a SED you must prepare it in accordance with the 
rules of the Foreign Trade Statistics Regulations (FTSR) and present 
the number of copies specified in the FTSR at the port of export.
    (b) SED is a statement to the U.S. Government. Your SED is a 
statement to the U.S. Government in which you assert that all of the 
information shown on the SED is true. You may execute and submit the 
SED only if you are the exporter or the duly authorized forwarding 
agent of an exporter.
    (c) Limitation on time when SED may be used. No one may use a SED 
to export, or facilitate or effect an export, after the expiration of 
the applicable license or after the termination of the applicable 
License Exception or provisions of the EAR that authorize export 
without a license, except as provided in Sec. 750.7(f) (License 
validity period) of the EAR and Sec. 758.2(b) (Shipments against 
expiring license) of this part.
    (d) Additional copies of the SED. You are required to submit 
additional copes of the SED when:
    (1) BXA or one of its component offices asks you to send it copies 
of the SED for exports:
    (i) Authorized by a license (see paragraph (l) of this section);
    (ii) Authorized by a Special Comprehensive License (see 
Sec. 752.16(a)(5) of the EAR; or
    (iii) The items are controlled for short supply reasons (see part 
754 of the EAR); or

[[Page 12855]]

    (iv) Required by Sec. 758.1(f) (shipments transiting Canada) of 
this part.
    (2) [Reserved]
    (e) Statements on SED. Whenever a SED is presented to a carrier, a 
customs office, or a postmaster, the exporter represents that:
    (1) All statements and information on the SED have been furnished 
by the exporter or on the exporter's behalf to effect an export under 
the provisions of the EAR;
    (2) Export of the items described on the SED is authorized under 
the ``No License Required'' provisions of the EAR as described in 
Sec. 758.1(a) of this part, a License Exception described in part 740 
of the EAR or the license identified on the SED;
    (3) Statements contained on the SED are consistent with the 
contents of the license or the terms, provisions, and conditions of the 
applicable License Exception or of the applicable ``No License 
Required'' provisions of the EAR as described in Sec. 758.1(a) of this 
part; and
    (4) All other terms, provisions, and conditions of the EAR 
applicable to the export have been met.
    (f) Items that may be listed on the same SED. (1) General. Except 
as described in paragraph (f)(2) of this section, more than one item 
may be listed on the same SED provided they are contained in one 
shipment on board a single carrier and are going from the same exporter 
to the same consignee. Even if some of the items are being shipped 
under authority of a license and others under a License Exception or 
the ``No License Required'' provisions of the EAR (as described in 
Sec. 758.1(a) of this part), they may still be shown on one SED. For 
the second and subsequent authorizations used, the applicable license 
number and expiration date, License Exception symbol, or the ``No 
License Required'' symbol (NLR) must be shown along with the 
descriptions (including quantity, if required, Schedule B Number, and 
value) to which each authorization applies, in the designated spaces on 
a separate SED Continuation Sheet. The following apply for notations 
made on SED:
    (i) Entering the license number and expiration date is a 
representation to the U.S. Government that the transaction is 
authorized by the license cited.
    (ii) Entering a License Exception symbol, or ``NLR'' is a 
representation to the U.S. Government that the shipment meets one of 
the applicable provisions of paragraph (a)(3) of Sec. 758.1 of this 
part.
    (2) Exception. Separate SED's must be prepared and presented for 
each vehicle when more than one vehicle is used to make the shipment. 
Customs Directors may waive this requirement if a shipment is made 
under a single bill of lading or other loading document and all the 
items listed on the SED are cleared simultaneously.
    (g) Schedule B number and item description--(1) Schedule B number. 
You must enter the Schedule B number, as shown in the current edition 
of Schedule B, Statistical Classification of Domestic and Foreign 
Commodities Exported from the United States, in the designated column 
of the SED regardless of whether the shipment is being exported under 
authority of a license issued by BXA, a License Exception described in 
part 740 of the EAR, or the ``No License Required'' provisions of the 
EAR as described in Sec. 758.1(a) of this part.
    (2) Item description for exports under a license. (i) General. If 
your export is being made under the authority of a license issued by 
BXA, you must enter the item description shown on the license on the 
SED. However, if part of the description on the license is underlined, 
you need place only the underlined portions on the SED. The item 
description on the license will be stated in CCL terms, which may be 
inadequate to meet Census Bureau requirements. In this event, the item 
description you place on the SED must give enough additional detail to 
permit verification of the Schedule B number (e.g., size, material, or 
degree of fabrication).
    (ii) Distinguishing characteristics or specifications. If a 
commodity classification in Schedule B has instructions such as 
``specify by name,'' ``state species,'' etc., you must furnish that 
information in the column of the SED provided for the commodity 
description. When a single SED covers more than one item classifiable 
under a single classification carrying the ``specify by name'' or 
similar requirement, you must enter each item separately in this 
column. However, if more than five items are involved, all classifiable 
under one Schedule B number, only the five items of greatest value in 
the classification need be shown separately. Separate quantities, 
values, and shipping weights for individual items are not required in 
either case.
    (3) Item description for License Exception shipments or shipments 
for which no license is required. For items that may be exported under 
the authority of a License Exception, or under the ``No License 
Required'' provisions of the EAR (as described in Sec. 758.1(a) of this 
part), you must enter a description in sufficient detail to permit 
review by the U.S. Government and verification of the Schedule B number 
entered on the SED.
    (h) License number or other authorization designation. (1) Exports 
under authority of a license issued by BXA. You must show the license 
number and expiration date, the Export Control Classification Number 
(ECCN) and the item description, in the designated spaces of a SED 
covering an export under a license issued by BXA (The space for the 
item description on the SED form may be headed ``commodity 
description''). If you intend to include other items on the SED that 
may be exported under a License Exception, or under the ``No License 
Required'' provisions of the EAR, (as described in Sec. 758.1(a) of 
this part) you must show the License Exception or ``NLR'' symbol, along 
with the specific description (quantity, Schedule B, value) of the 
item(s) to which the authorization applies in the designated spaces on 
a separate SED continuation sheet.
    (2) Exports not needing a license. In addition to the item 
description, the appropriate License Exception symbol, or the ``No 
License Required'' symbol (NLR) must be shown in the appropriate column 
of each SED or SED continuation sheet covering a shipment under 
authority of a License Exception (see part 740 of the EAR), or ``No 
License Required'' provisions of the EAR (as described in Sec. 758.1(a) 
of this part). If several authorizations are to be listed on one SED, 
the SED and continuation sheets must be completed as described in 
paragraph (f)(1) of this section. If the item(s) will be exported under 
the provisions of LST (License Exceptions GBS, CIV, LVS) or under the 
``NLR'' provisions of the EAR (as described in Sec. 758.1(a) of this 
part) and the item(s) are covered by entries on the Commerce Control 
List that have the column identifier ``NS Column 2'' controlled for 
``NS'' reasons, the ECCN must also be shown in the designated space on 
the SED or SED continuation sheet. The following apply for notations 
made on SED:
    (i) Entering the license number and expiration date is a 
representation to the U.S. Government that the transaction is 
authorized by the license cited.
    (ii) Entering a License Exception symbol, or ``NLR'' is a 
representation to the U.S. Government that the shipment meets one of 
the applicable provisions of paragraphs (a)(3) through (a)(4) of 
Sec. 758.1 of this part.
    (3) If you are exporting technology or software that is outside the 
scope of the EAR as described in Secs. 734.7 through 734.11 of the EAR, 
you may enter the symbol TSPA on the SED. Use of this

[[Page 12856]]
symbol is optional, however, if you enter it, you are representing to 
the U.S. Government that the software or technology you are exporting 
is outside the scope of the EAR.
    (i) Optional ports of unlading. (1) Applicability. If, prior to the 
departure of the exporting carrier, the exporter does not know at what 
port the shipment will be unloaded, the exporter may designate optional 
ports of unlading on the SED and bill of lading or air waybill in 
accordance with the provisions of this paragraph. There are 
restrictions on the countries in which these optional ports may be 
located. The restrictions depend on whether the export is authorized 
under the ``No license Required'' provisions of the EAR (as described 
in Sec. 758.1(a) of this part), the License Exceptions described in 
part 740 of the EAR, or a license (See paragraph (j)(3) of this 
section).
    (2) Exemptions. You may never designate an optional port of 
unlading for a shipment destined directly or indirectly to Country 
Group D:1 in Supplement No. 1 to part 740 of the EAR (except for the 
People's Republic of China), Libya, Cuba, or North Korea.
    (3) Shipments for which no license is required or which are 
authorized by a License Exception. (i) For exports under the authority 
of the ``No License Required'' provisions of the EAR (as described in 
Sec. 758.1(a) of this part), if the exporter does not know which of 
several countries in Country Group B or the People's Republic of China 
is the country of ultimate destination, the exporter may name optional 
ports of unlading in one or more of these countries.
    (ii) When an export under any License Exception is shipped in 
transit through a country other than the country of ultimate 
destination, the exporter may designate optional ports of unlading in 
one or more countries, together with the name and address of the 
intermediate consignee in each country designated.
    (4) Restrictions on optional ports of unlading. The optional ports 
of unlading, which the exporter designates on the SED pursuant to 
paragraph (i)(3)(i) of this section, must be in a country to which the 
item being unloaded may be exported directly from the United States 
under the same or another applicable ``No License Required'' provision 
of the EAR (described in Sec. 758.1(a) of this part), or License 
Exception contained in the EAR.
    (5) Shipments under a license issued by BXA. For exports under a 
license, optional ports of unlading are restricted to the country of 
ultimate destination, unless either the transaction complies with the 
provisions of Sec. 750.7 of the EAR dealing with continuity of 
shipments, or the license designates intermediate consignees in other 
countries. In the latter case, the optional ports of unlading must be 
designated as optional intransit points on the SED, or if there is no 
SED, on the Shipper's Letter of Instructions, or, if there is neither, 
the optional port of unlading must appear on another document 
containing instructions that the exporter conveys (either directly or 
through an agent) to the carrier, and on the bill of lading or air 
waybill.
    (6) Correcting the SED. As soon as the exporter, or the exporter's 
forwarding agent or carrier determines at which port the shipment is to 
be unloaded (whether in the country of ultimate destination or in a 
country of transit), that person must correct the SED to show the 
specific port of unloading and the name and address of the intermediate 
consignee to whom delivery is to be made. An intermediate consignee 
must be shown if the port of unloading is located in a country other 
than the country of destination. If the export is unloaded at more than 
one port, the quantity and value unloaded at each port and the name and 
address of each intermediate consignee must be given. The procedures 
for correcting and filing SEDs may be found in paragraph (n) of this 
section.
    (j) Signature on SED. The exporter or the exporter's authorized 
forwarding agent, or an authorized employee of either, may sign the 
SED. In general, the requisite authority rests with employees who, by 
their official titles, are apparently vested with power to deal with 
exports, such as export managers or such corporate officers as the 
president, vice president, treasurer, and secretary of a corporation, 
any partner of a partnership, and any responsible head of any other 
form of private or quasi-governmental organization, and assistant 
officers. The signature of such person, whether that of the exporter or 
authorized agent or employee, constitutes a representation by the 
exporter that all statements and information in the SED are true and 
correct. In addition, if the signature is that of the forwarding agent, 
or the forwarding agent's duly authorized officer or employee, such 
signature constitutes a like representation by the forwarding agent.
    (k) Attachment to SED. (1) If you need additional space for any 
information on the SED, you may use additional copies of the SED or 
copies of the continuation sheet. In such cases, only one SED need be 
signed. You must number the additional sheets in sequence and securely 
attach them to the executed SED. You must insert the following 
statement on the last line of the description line of the SED form 
itself:

    This SED consists of this sheet and ________ continuation 
sheets.

    (2) No portion of any form attached as a continuation sheet may be 
torn off or removed.
    (l) Special requirements for additional information and documents. 
(1) A license may bear on its face a requirement to submit a SED or 
other documents (or information) to the Office of Export Enforcement in 
addition to that furnished when the application was filed. The exporter 
and the person submitting the documents represent that the documents 
are complete, truthful and accurate. The Export Administration 
Regulations prohibit the making of false representations to the U.S. 
Government in any export control matter (see Sec. 764.2(g) of the EAR). 
The licensee must furnish the documents to: Office of Export 
Enforcement, Room H-4520, U.S. Department of Commerce, 14th Street and 
Constitution Ave., NW., Washington, DC 20230.
    (2) When required, the licensee must:
    (i) Prepare one copy of the SED in addition to the number of copies 
otherwise required;
    (ii) Enter the additional information called for by the license in 
the space between the column provided for marks and numbers of the 
shipment and the column provided for its value on all copies of the 
SED; and
    (iii) Unless otherwise specified on the license, attach the 
required documents (either original or certified copy) to the extra 
copy of the SED.
    (m) SED for shipments moving in- transit. (1) Applicability. Use 
the SED for In-transit Goods, Commerce Form 7513,2 for the 
following types of transactions:

    \2\  Form 7513 may be purchased from the Superintendent of 
Documents, U.S. Government Printing Office, Washington, D.C. 20402, 
the local customs offices, or may be privately printed.
---------------------------------------------------------------------------

    (i) Items departing the United States by vessel, which transited 
through, or transshipped in, ports of the United States, destined from 
one foreign country or area to another.
    (ii) Foreign merchandise exported from a General Order Warehouse 
and the export of foreign-origin merchandise that was rejected after 
government inspection or examination. Shipments in bond transiting the 
United States being exported by means of any carrier other than a 
vessel may be cleared for export without presenting a Form 7513, unless 
a license is required for the export.

[[Page 12857]]

    (2) Exports from Foreign Trade Zones. You may not use Form 7513 for 
any exports from Foreign Trade Zones. Such shipments require the filing 
of the SED (Form 7525-V), unless otherwise exempted, with the 
applicable zone number reported on the Document.
    (3) Additional information. The following additional information 
must be entered on a SED for In-transit Goods:
    (i) The name and address of the intermediate consignee in a foreign 
destination, if any, must be shown below the description of the items.
    (ii) Underneath the name and address of the intermediate consignee, 
one of the following statements, whichever is appropriate, must be 
entered:
    (A) For intransit shipments of foreign-origin merchandise (see part 
772 of the EAR for a definition of ``foreign-origin,''), enter the 
following statement:
    The merchandise described herein is of foreign-origin.
    (B) For intransit shipments of domestic (U.S.) merchandise, enter 
the following statement:
    The merchandise described herein is of the growth, production, or 
manufacture of the United States.
    (C) For intransit shipments of items of U.S.-origin eligible for 
License Exception TUS (See Sec. 740.9 of the EAR), enter the following 
statement:
    The merchandise described herein is of the growth, production, or 
manufacture of the United States, but has been so altered by further 
processing, manufacture, or assembly in a foreign country that it has 
either been substantially enhanced in value, or has lost its original 
identity with respect to form.
    (iii) The items must be described in terms of Schedule B, including 
the appropriate Schedule B number.
    (4) See Sec. 30.8 of the Foreign Trade Statistics Regulations (15 
CFR 30.8) for additional requirements concerning the information that 
must be placed on a SED for In-transit Goods.
    (n) Correction, change, alteration, or amendment of SED. (1) 
Methods of changing SED's. The exporter or the exporter's agent must 
report corrections, cancellations, additions or amendments to 
information reported on SEDs to the Customs Director at the port of 
exportation (or, in the case of mail shipments, to the Postmaster at 
the post office where the shipment was mailed) as soon as the need for 
such changes is determined. See the Foreign Trade Statistics 
Regulations (15 CFR part 30) for additional information about how to 
correct SEDs and file the corrections. If you are required by paragraph 
(l) of this section to file a copy of the original SED with the Office 
of Export Enforcement (OEE), a copy of the changed SED should be sent 
to OEE at the address shown in paragraph (l) of this section with the 
words ``Correction Copy'' conspicuously shown in the upper right 
portion of the form.
    (2) Responsibility. Nothing in this section relieves you or any 
person or firm making changes on the SED from responsibility for any 
such changes. Acceptance of a changed SED by the Customs office does 
not imply approval of any act involved in the shipment or acceptance of 
the truth or accuracy of the information provided.
    (o) Summary monthly reports in lieu of individual SED's. (1) Scope. 
This paragraph contains only basic information about the monthly filing 
procedures for the SED. Details of the procedure may be found in 
Sec. 30.39 of the Foreign Trade Statistics Regulations (FTSR) of the 
Bureau of the Census (15 CFR 30.39). Exporters interested in the 
procedure should consult Sec. 30.39 of the FTSR to ascertain 
qualifications, how to apply for the privilege of participating, how to 
file electronically after approval is given, and other pertinent facts.
    (2) Applicability. Approved parties may file monthly SEDs with the 
Bureau of the Census for export to destinations in Country Groups B and 
D:1 (see Supplement No. 1 to part 740 of the EAR).
    (3) How to request monthly reporting privileges. (i) Addresses. (A) 
A request for the privilege of participating in monthly reporting 
procedures should be forwarded to: Foreign Trade Division, Bureau of 
the Census, Washington, D.C. 20233.
    (B) A copy of all requests must be sent to: Office of Export 
Enforcement, Room H-4616, U.S. Department of Commerce, 14th St. and 
Constitution Ave., NW., Washington, DC 20230.
    (ii) Certification requirements. The request must include the 
following certification by the applicant:

    I (We) certify that I (we) have established adequate internal 
procedures and safeguards to assure compliance with the requirements 
set forth in the U.S. Department of Commerce Export Administration 
Regulations and Foreign Trade Statistics Regulations. Among other 
things, these procedures and safeguards assure:

    (1) A proper determination as to whether a license is required 
for a particular export;
    (2) Actual receipt of the export license, if required, before 
the shipment is exported;
    (3) Compliance with all the terms of the license, License 
Exception, or NLR provisions of the EAR as applicable;
    (4) Return of licenses to BXA in accordance with Sec. 750.8(b) 
of the Export Administration Regulations, if requested;
    (5) Compliance with the destination control statement provisions 
of Secs. 758.5 and 758.6 of the Export Administration Regulations;
    (6) Compliance with the prohibition against export transactions 
that involve persons who have been denied U.S. export privileges; 
and
    (7) Compliance with the recordkeeping requirements of part 762 
of the EAR and, in addition, I (we) agree that my (our) office 
records will be made available for inspection by the Bureau of the 
Census, BXA or the U.S. Customs Service, upon request, to verify 
that a given shipment was properly included in a particular monthly 
report.

    (4) Exporter's agent. If the exporter intends to authorize a 
forwarding agent to file electronically on the exporter's behalf, the 
exporter's request must include the name and address of each such 
forwarding agent.
    (5) Authorization by Census to use monthly reporting procedure. Any 
authorization to file summary monthly reports in lieu of individual 
SEDs may be granted only by the Bureau of the Census with the 
concurrence of BXA.
    (6) Export clearance. (i) Destination control statement. In 
addition to the exporter's responsibility for assuring that the proper 
destination control statement is placed on the commercial invoice as 
required by Sec. 758.6 of this part, the exporter or the exporter's 
forwarding agent is responsible for assuring that the carrier places 
the proper destination control statement on the related bill of lading 
or air waybill.
    (ii) Detention and examination. Shipments being reported under the 
summary filing procedure described in this paragraph are subject to 
inspection, examination and detention, as provided in Sec. 758.7 of 
this part, whenever an official of BXA, a customs officer, or a 
postmaster deems such action necessary to assure compliance with the 
EAR.
    (7) Revocation of authorization. An authorization to file summary 
monthly reports in lieu of individual SED's, granted under the 
provisions of Sec. 30.39 of the Foreign Trade Statistics Regulations 
(15 CFR 30.39) and this paragraph, may be revoked, suspended, or 
revised at any time.
    (8) Effect of other provisions. Insofar as consistent with the 
provisions of this paragraph that relate specifically to filing 
electronically in lieu of individual SED's, the other provisions of 
this part 758 apply to exports reported under this procedure.


Sec. 758.4  Conformity of documents for shipments under export licenses

    (a) Applicability. The rules of conformity in this section apply to 
shipping documents used in connection with any shipment under the 
authority

[[Page 12858]]
of a license issued by BXA except ``master'' air waybills issued by 
consolidators. These rules apply to any individual air waybill issued 
by a consolidator (indirect carrier) for an export included in a 
consolidated shipment and to any air waybill issued by anyone in 
connection with an export not included in a consolidated shipment.
    (b) Compliance. You may not issue, prepare, or procure a bill of 
lading that is contrary to the provisions of this section. Officials of 
BXA and the U.S. Customs Service are authorized to require any document 
or to use any other appropriate methods to ensure compliance with the 
rules of conformity in this section.
    (c) Rules of conformity. (1) General. The following documents must 
be consistent with each other:
    (i) The license issued by BXA;
    (ii) One of the following applicable documents:
    (A) The SED;
    (B) If there is no SED, the Shipper's Letter of Instructions; or
    (C) If there is neither, another document containing instructions 
that the exporter conveys (either directly or through an agent) to the 
carrier; and
    (iii) The outbound bill of lading (including a railroad through 
bill of lading) covering a particular export shipment must be 
consistent with one another.
    (2) Signs of inconsistent documents. The bill of lading, whether in 
negotiable or nonnegotiable form, is not consistent with those other 
documents if:
    (i) It does not provide for delivery of the shipment (cargo) at a 
port located in the country of either the ultimate or intermediate 
consignee named in the documents described in paragraph (c)(1)(ii) of 
this section;
    (ii) It contains any indication that the shipment is intransit to a 
country of ultimate destination different from that named in the 
appropriate one of the documents described in paragraph (c)(1)(ii) of 
this section, or that the shipment is not for consumption in such 
country of ultimate destination. For example, it would be inconsistent 
to consign a shipment to the ultimate destination with a qualifying 
phrase indicating the shipment is ``in transit'' at that destination, 
or to consign the shipment to a free zone or free port;
    (iii) It names as shipper any person other than the licensee (the 
person to whom a license is issued) or the licensee's duly authorized 
forwarding agent. Where shipments from more than one licensee are 
consolidated on a single bill of lading, the shipper named on the bill 
of lading must also appear as the authorized forwarding agent for each 
exporter on each document described in paragraph (c)(1)(ii) of this 
section.
    (iv) The name and address of the ultimate consignee are not shown 
either in the space provided for ``consignee'' or in the body of the 
bill of lading under the caption ``ultimate consignee and notify 
party'' or, in the case of the air waybill, under the caption ``also 
notify.'' However, where shipments to more than one ultimate consignee 
are consolidated on one bill of lading and not all are shown in the 
body of the bill of lading, the name of the intermediate consignee 
(customs broker or consolidator's agent in the foreign country) who 
will receive and distribute the items to the ultimate consignees must 
appear on the bill of lading, the export license(s), and documents 
listed in paragraph (c)(1)(ii) of this section.
    (3) Additional rules for negotiable bills of lading. A negotiable 
bill of lading (an ``order'' bill of lading) is deemed consistent with 
the appropriate one of the documents described in paragraph (c)(1)(ii) 
of this section only if the consignee or order party named on the bill 
of lading is also named in the SED, the Shipper's Letter of 
Instructions or the other document.
    (i) Sometimes ``order'' bills of lading consign the items they 
cover to the order of the shipper, to the order of an intermediate 
consignee such as a bank, foreign freight forwarder, or other 
intermediary, or to the order of a purchaser who is not the same person 
as the ultimate consignee. An ``order'' bill of lading issued in any of 
these forms constitutes a representation by the shipper that:
    (A) The items covered by the appropriate one of the documents 
described in paragraph (c)(1)(ii) of this section and bill of lading 
are ultimately destined to the ultimate consignee stated on the 
license;
    (B) The ``order'' bill of lading has not been used for the purpose 
of evading the terms and conditions of the license; and
    (C) Pursuant to the contract of carriage, the items will be 
delivered at a port located in the country of the ultimate consignee or 
of the intermediate consignee named on the appropriate one of the 
documents described in paragraph (c)(1)(ii) of this section.
    (ii) [Reserved]
    (4) Item description. On the bill of lading the items may be 
described in terms of the freight tariff classification or other type 
of classification, but may not be inconsistent with the description 
shown on the appropriate one of the documents described in paragraph 
(c)(1)(ii). These documents must include the same item description as 
shown on the related license, and, in addition, it must include more 
detailed information where required by the Bureau of the Census.
    (5) Carrier's manifest. If the carrier's outward foreign manifest 
filed with the U.S. customs office contains the names of shippers or 
consignees, these names must not be inconsistent with the names shown 
on the bill of lading and the appropriate one of the documents 
described in paragraph (c)(1)(ii) of this section.


Sec. 758.5  General destination control requirements

    (a) Scope. This section sets forth some actions the parties to a 
transaction authorized by a license issued by BXA are prohibited from 
taking. The purpose of these prohibitions is to prevent items licensed 
for export from being diverted while in transit or thereafter. It also 
sets forth the duties of the parties when the goods are unloaded in a 
country other than that of the ultimate consignee or intermediate 
consignee as stated on the export license.
    (b) Destination on bill of lading or air waybill--(1) Requirements 
to prevent diversions. (i) Statements on bill of lading or air waybill. 
(A) A carrier (or any other person on behalf of any carrier) may not 
issue a bill of lading or air waybill providing for delivery of cargo 
at any foreign port located outside the country of the ultimate 
consignee, or the intermediate consignee, named on the appropriate one 
of the documents described in Sec. 758.4(c)(1)(ii) of this part.
    (B) Optional ports on bill of lading or air waybill. No carrier may 
issue a bill of lading or air waybill providing for delivery of cargo 
at optional ports to the ultimate consignee named on one of the 
appropriate documents described in Sec. 758.4(c)(1) (i) and (ii) of 
this part where one of such optional ports is not in the country of 
ultimate destination named on the license or SED, or if there is no 
SED, the Shipper's Letter of Instructions, or if there is neither, 
another document containing instructions that the exporter conveys 
(either directly or through an agent) to the carrier, without prior 
written authorization from BXA. However, where the appropriate document 
described in Sec. 758.4(c)(1) (i) and (ii) of this part provide for 
delivery of cargo to optional intermediate consignees located in ports 
in different countries, the carrier may issue a bill of lading or air 
waybill providing for delivery at such optional ports.
    (ii) [Reserved]
    (2) Delivery of cargo. No carrier may deliver cargo to any country 
other than

[[Page 12859]]
the country of the ultimate consignee, or the intermediate consignee, 
named on the appropriate one of the documents described in 
Sec. 758.4(c)(1)(ii) of this part at the request or option of the 
shipper, consignor, exporter, purchaser, or ultimate consignee, or 
their agents, or any other person having custody or control of the 
shipment, without prior written authorization from BXA to the carrier 
or its agent.
    (c) Duties when items are unloaded in a unauthorized country. If 
the items are unloaded in a country other than that of the intermediate 
or ultimate consignee as stated on the appropriate one of the documents 
described in Sec. 758.4(c)(1)(ii) of this part, the procedures 
described in this paragraph must be followed.
    (1) Reasons beyond carrier's control. Nothing contained in the EAR 
shall be deemed to prohibit a carrier from unloading cargo at a port 
outside the country of intermediate or ultimate destination shown on 
the appropriate one of the documents described in Sec. 758.4(c)(1)(ii) 
of this part, where for reasons beyond the control of the carrier (as 
set forth in the standard provisions of the carrier's bill of lading or 
air waybill, such as acts of God, perils of the sea, damage to the 
carrier, strikes, war, political disturbances, or insurrections), it is 
not feasible to deliver the cargo at the licensed port of destination.
    (2) Required actions for unscheduled unloading. (i) If the item is 
unloaded in a country to which that item may be exported without a 
license issued by BXA, no one is required to notify BXA of the 
unloading. The exporter may dispose of the items in that country 
without approval of BXA. When making such a disposition you must still 
comply with any conditions or requirements of the License Exception or 
other provisions of the EAR that would authorize the export of the item 
being unloaded to the country in which you are disposing of it, and any 
regulations of other government agencies that apply to the transaction. 
This paragraph does not authorize anyone to take any action with 
knowledge that a violation of the Export Administration Act, the EAR, 
or any order, license or authorization issued thereunder, has occurred, 
is about to occur or is intended to occur, or to deliver to a denied 
party or to take any other action prohibited by the EAR.
    (ii) If a license issued by BXA would be required to export the 
item to the country in which it is unloaded:
    (A) No person may take any steps to effect delivery or entry of the 
items into the commerce of the country where unloaded without prior 
approval of BXA;
    (B) The carrier must take steps to assure that the items are placed 
in custody under bond or other guaranty not to enter the commerce of 
such country or any country other than the countries of the ultimate 
and intermediate consignees shown on the appropriate one of the 
documents described in Sec. 758.4(c)(1)(ii) of this part, without prior 
approval of BXA;
    (iii) The carrier, the carrier's agent located in the United 
States, and the exporter each have specific responsibilities to notify 
BXA regarding any unscheduled unloading. The specific responsibilities 
of each party are as follows:
    (A) The carrier must, within 10 days after date of unloading, 
report the facts to the nearest American Consulate and to the agent of 
the carrier located in the United States. Within 10 days after receipt 
of such report, the agent must send a copy of the report to BXA. The 
report must include:
    (1) A copy of the manifest of such diverted cargo;
    (2) A statement of the place of unloading; and;
    (3) The name and address of the person in whose custody the items 
were delivered.
    (B) BXA will inform the exporter of the unloading. Within 10 days 
following receipt of this notice, the exporter must inform BXA of the 
proposed disposition of the items. The exporter may not dispose of the 
items without approval of BXA.


Sec. 758.6  Destination control statement

    (a) Requirement for destination control statement. (1) The 
destination control statement shown in paragraph (b) of this section 
must be entered on all copies of the bill of lading, the air waybill 
and the commercial invoice covering any export from the United States 
if:
    (i) The export is made under authority of a license, including the 
Special Comprehensive License;
    (ii) The export is made under the authority of the following 
License Exceptions: LST (GBS, CIV, LVS), RPL (PTS, SNR), and TMP (TMP, 
TUS); or
    (iii) The export is made under the ``No License Required'' 
provisions of the EAR (as described in Sec. 758.1(a) of this part) if 
the reason for control of the item as stated in the entry on the CCL is 
NS or NP.
    (2) An exporter or the exporter's agent may enter a destination 
control statement on the shipping documents for exports for which no 
destination control statement is required.
    (b) Text of destination control statement.

    These commodities, technology or software were exported from the 
United States in accordance with the Export Administration 
Regulations. Diversion contrary to U.S. law prohibited.

    (c) Additional destination information. In addition to the 
destination control statement, an exporter or exporter's agent may 
supply additional information on the shipping documents, including the 
country(ies) to which export or reexport is authorized.
    (d) Permissive reexports. If reexport or diversion from the 
original transaction is contemplated and the change from the original 
transaction is consistent with the license, License Exception, the NLR 
provisions of the EAR or other authorization and with all other 
requirements of the EAR, the exporter may so advise its foreign 
importer without obtaining further authorization from BXA.
    (e) Responsibility for assuring that the destination control 
statement is used--(1) Exporters. The exporter is responsible for 
assuring entry of the destination control statement on the commercial 
invoice, regardless of whether the exporter actually prepares this 
document. The exporter has this responsibility even if the invoice is 
prepared by an order party or the exporter acts through an agent.
    (2) Agents of exporters (forwarding agents). Agents of exporters 
are also responsible for assuring entry of the destination control 
statement on the commercial invoice.
    (i) If the agent receives from the exporter a copy of a commercial 
invoice without the correct destination control statement, the agent 
must:
    (A) Notify the exporter in writing;
    (B) Request written assurance from the exporter that:
    (1) The destination control statement has been properly entered on 
all other copies of the commercial invoice; and
    (2) Any person who received an invoice without the statement has 
been informed in writing of the restrictions in the statement;
    (ii) And either:
    (A) Enter the appropriate statement on the agent's copy of the 
invoice; or
    (B) Return it to the exporter for completion; and
    (iii) Keep and make available for inspection, in accordance with 
part 762 of the EAR, a copy of that person's notification to the 
exporter and the original of the exporter's assurance required by 
paragraph (e)(2)(i) of this section. (For further recordkeeping 
requirements, see part 762 of the EAR.)

[[Page 12860]]

    (iv) If the agent prepares the invoice, the agent's 
responsibilities are governed by paragraph (e)(3) of this section.
    (3) Forwarders, carriers and other parties who prepare invoices. If 
a forwarder, a carrier acting as a forwarder, or any other party 
prepares, presents, and/or executes the invoice, the forwarder, 
carrier, or other party is also responsible for assuring that an 
appropriate statement is entered on the invoice.
    (4) Carriers and other parties who issue bills of lading or air 
waybills. The carrier, or any other party that issues the bill of 
lading or air waybill, is responsible for assuring that the destination 
control statement appearing on the corresponding invoice also appears 
on the bill of lading or air waybill.
    (f) Responsibility for distributing copies of the invoice. The 
exporter or other person issuing any invoice containing a destination 
control statement must send copies in a manner which assures their 
arrival either with or prior to arrival of the items being exported to:
    (1) The ultimate consignee and the purchaser named in the SED;
    (2) The intermediate consignee; and
    (3) Any other persons named in the invoice who are located in a 
foreign country. Nothing contained in this part shall be construed to 
limit the persons or classes of persons to whom such invoices, bills of 
lading or air waybills are usually and customarily sent in the course 
of export trade. The shipper or other person issuing the commercial 
invoice may comply with the requirements of this section even if the 
copy of the invoice sent to any of the persons listed in paragraphs 
(f)(1) or (2) this section omits all reference to price or sales 
commission provided such invoice otherwise adequately identifies the 
shipment. As an alternative in lieu of a copy of the commercial 
invoice, such person may send a copy of the bill of lading or air 
waybill containing the destination control statement.
    (g) Requirements for bill of lading or air waybill. (1) General. No 
carrier may issue (and no one may prepare or procure) a bill of lading 
or air waybill covering an export for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of such bill of lading or air waybill 
(including all non-negotiable and office copies) contain the 
destination control statement in clearly legible form.
    (2) Exception for ``master'' air waybills. In the case of shipments 
by air (other than airmail or air parcel post), the requirement of 
paragraph (e)(2)(i) of this section applies to any air waybill, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, the provisions of 
paragraph (f) of this section do not apply to a ``master'' air waybill 
issued by a carrier to cover a consolidated shipment.
    (h) Requirements for the commercial invoice. No licensee, shipper, 
consignor, exporter, agent, or any other person may prepare or issue a 
commercial invoice for a shipment for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of the invoice(s) contain the statement in 
clearly legible form.
    (i) Carrier's responsibility before releasing cargo. No carrier may 
release custody of a shipment covered by the provisions of this section 
to any party without surrender by that party, to the carrier, of a copy 
of the bill of lading or air waybill bearing on its face the applicable 
destination control statement, unless either:
    (1) Simultaneously with the release, the carrier delivers to such 
party a written copy of the destination control statement, contained in 
the carrier's copy of the bill of lading or air waybill for the 
shipment. The written copy must identify the shipment by bill of lading 
or air waybill number, name of carrier, voyage or flight number, date, 
and port of arrival. The carrier must also secure either a signed 
receipted copy of the written statement or other equivalent written 
evidence that the statement has been delivered by the carrier; or,
    (2) The regulations of the importing country require the carrier to 
deliver the items directly into the physical possession and control of 
customs or other government agency for delivery to the consignee or the 
consignee's agent. In this case, the carrier need not give to, or 
receive from, the customs or other government agency, or the consignee 
or the consignee's agent, any document bearing the destination control 
statement.


Sec. 758.7  Authority of the Office of Export Enforcement, the Bureau 
of Export Administration, Customs offices and Postmasters in clearing 
shipments

    (a) Actions to assure compliance with the EAR. Officials of BXA, 
the Office of Export Enforcement, the U.S. Customs Service and 
postmasters, including post office officials, are authorized and 
directed to take appropriate action to assure compliance with the EAR. 
This includes assuring that:
    (1) Exports without a license issued by BXA are either outside the 
scope of the license requirements of the Export Administration 
Regulations or authorized by a License Exception; and
    (2) Exports purporting to be authorized by licenses issued by BXA 
are, in fact, so authorized and the transaction complies with the terms 
of the license.
    (b) Types of actions. The officials designated in paragraph (a) of 
this section are authorized to take the following types of actions:
    (1) Inspection of items. (i) Purpose of inspection. All items 
declared for export are subject to inspection for the purpose of 
verifying the items specified in the SED, or if there is no SED, the 
bill of lading or other loading document covering the items about to be 
exported, and the value and quantity thereof, and to assure observance 
of the other provisions of the Export Administration Regulations. This 
authority applies to all exports within the scope of the Export 
Administration Act or Export Administration Regulations whether or not 
such exports require a license issued by BXA. The inspection may 
include, but is not limited to, item identification, technical 
appraisal (analysis), or both.
    (ii) Place of inspection. Inspection shall be made at the place of 
lading or where officials authorized to make those inspections are 
stationed for that purpose.
    (iii) Technical identification. Where, in the judgment of the 
official making the inspection, the item cannot be properly identified, 
a sample may be taken for more detailed examination or for laboratory 
analysis.
    (A) Obtaining samples. The sample will be obtained by the official 
making the inspection in accordance with the provisions for sampling 
imported merchandise. The size of the sample will be the minimum 
representative amount necessary for identification or analysis. This 
will depend on such factors as the physical condition of the material 
(whether solid, liquid, or gas) and the size and shape of the 
container.
    (B) Notification to exporter and consignee. When a sample is taken, 
the exporter (or the exporter's agent) and the ultimate consignee will 
be notified by letter from one of the official designated in paragraph 
(a) of this section, showing the port of export, date of sampling, 
export license number (if any) or other authorization, invoice number 
quantity of sample taken, description of item, marks and packing case 
numbers, and manufacturer's number for the item. The original letter 
will be sent to the exporter or the exporter's agent, the duplicate 
will be placed in the container that had been opened, and the 
triplicate will be retained by the inspecting office.

[[Page 12861]]

    (C) Disposal of samples. Samples will be disposed of in accordance 
with the U.S. Customs Service procedure for imported commodities.
    (2) Inspection of documents. (i) General. Officials designated in 
paragraph (a) of this section are authorized to require exporters or 
their agents, and owners and operators of exporting carriers or their 
agents, to produce for inspection or copying: invoices, orders, letters 
of credit, inspection reports, packing lists, shipping documents and 
instructions, correspondence, and any other relevant documents, as well 
as furnish other information bearing upon a particular shipment being 
exported or intended to be exported.
    (ii) Cartridge and shell case scrap. When cartridge or shell cases 
are being exported as scrap (whether or not they have been heated, 
flame-treated, mangled, crushed, or cut) from the United States, the 
U.S. Customs Service is authorized to require the exporter to furnish 
information bearing on the identity and relationships of all parties to 
the transaction and produce a copy of the bid offer by the armed 
services in order to assure that the terms of the Export Administration 
Regulations are being met and that the material being shipped is scrap.
    (3) Questioning of individuals. Officials designated in paragraph 
(a) of this section are authorized to question the owner or operator of 
an exporting carrier and the carrier's agent(s), as well as the 
exporter and the exporter's agent(s), concerning a particular shipment 
exported or intended to be exported.
    (4) Prohibiting lading. Officials designated in paragraph (a) of 
this section are authorized to prevent the lading of items on an 
exporting carrier whenever those officials have reasonable cause to 
believe that the export or removal from the United States is contrary 
to the Export Administration Regulations.
    (5) Inspection of exporting carrier. The U.S. Customs Service is 
authorized to inspect and search any exporting carrier at any time to 
determine whether items are intended to be, or are being, exported or 
removed from the United States contrary to the Export Administration 
Regulations. Officials of the Office of Export Enforcement may conduct 
such inspections with the concurrence of the U.S. Customs Service.
    (6) Seizure and detention. Customs officers are authorized, under 
Title 22 of the United States Code, section 401, et seq., to seize and 
detain any items whenever an attempt is made to export such items in 
violation of the Export Administration Regulations, or whenever they 
know or have probable cause to believe that the items are intended to 
be, are being, or have been exported in violation of the EAR. Seized 
items are subject to forfeiture. In addition to the authority of 
Customs officers to seize and detain items, both customs officials and 
officials of the Office of Export Enforcement are authorized to detain 
any shipment held for review of the SED, or if there is no SED, the 
bill of lading or other loading document covering the items about to be 
exported, or for physical inspection of the items, whenever such action 
is deemed to be necessary to assure compliance with the EAR.
    (7) Preventing departure of carrier. The U.S. Customs Service is 
authorized under Title 22 of the U. S. Code, section 401, et seq., to 
seize and detain, either before or after clearance, any vessel or 
vehicle or air carrier that has been or is being used in exporting or 
attempting to export any item intended to be, being, or having been 
exported in violation of the EAR.
    (8) Ordering the unloading. The U.S. Customs Service is authorized 
to unload, or to order the unloading of, items from any exporting 
carrier, whenever the U.S. Customs Service has reasonable cause to 
believe such items are intended to be, or are being, exported or 
removed from the United States contrary to the EAR.
    (9) Ordering the return of items. If, after notice that an 
inspection of a shipment is to be made, a carrier departs without 
affording the U.S. Customs Service, Office of Export Enforcement, or 
BXA personnel an adequate opportunity to examine the shipment, the 
owner or operator of the exporting carrier and the exporting carrier's 
agent(s) may be ordered to return items exported on such exporting 
carrier and make them available for inspection.
    (10) Designating time and place for clearance. The U.S. Customs 
Service is authorized to designate times and places at which U.S. 
exports may move by land transportation to countries contiguous to the 
United States.


Sec. 758.8  Return or unloading of cargo at direction of BXA, the 
Office of Export Enforcement or Customs Service.

    (a) Exporting carrier. As used in this section, the term 
``exporting carrier'' includes a connecting or on-forwarding carrier, 
as well as the owner, charterer, agent, master, or any other person in 
charge of the vessel, aircraft, or other kind of carrier, whether such 
person is located in the United States or in a foreign country.
    (b) Ordering return or unloading of shipment. Where there are 
reasonable grounds to believe that a violation of the Export 
Administration Regulations has occurred, or will occur, with respect to 
a particular export from the United States, BXA, the Office of Export 
Enforcement, or the U.S. Customs Service may order any person in 
possession or control of such shipment, including the exporting 
carrier, to return or unload the shipment. Such person must, as 
ordered, either:
    (1) Return the shipment to the United States or cause it to be 
returned or;
    (2) Unload the shipment at a port of call and take steps to assure 
that it is placed in custody under bond or other guaranty not to enter 
the commerce of any foreign country without prior approval of BXA. For 
the purpose of this section, the furnishing of a copy of the order to 
any person included within the definition of exporting carrier will be 
sufficient notice of the order to the exporting carrier.
    (c) Requirements regarding shipment to be unloaded. The provisions 
of Sec. 758.5(b) and (c) of this part, relating to reporting, 
notification to BXA, and the prohibition against unauthorized delivery 
or entry of the item into a foreign country, shall apply also when 
items are unloaded at a port of call, as provided in paragraph (b)(2) 
of this section.
    (d) Notification. Upon discovery by any person included within the 
term ``exporting carrier,'' as defined in paragraph (a) of this 
section, that a violation of the EAR has occurred or will occur with 
respect to a shipment on board, or otherwise in the possession or 
control of the carrier, such person must immediately notify both:
    (1) The Office of Export Enforcement at the following address: Room 
H-4520, U.S. Department of Commerce, 14th Street and Constitution Ave., 
N.W., Washington D.C. 20230, Telephone: (202) 482 1208, Facsimile: 
(202) 482-0964; and
    (2) The person in actual possession or control of the shipment.


Sec. 758.9  Other applicable laws and regulations.

    The provisions of this part 758 apply only to exports regulated by 
BXA. Nothing contained in this part 758 shall relieve any person from 
complying with any other law of the United States or rules and 
regulations issued thereunder, including those governing SEDs and 
manifests, or any applicable rules and regulations of the U.S. Customs 
Service.

[[Page 12862]]


PART 760--RESTRICTIVE TRADE PRACTICES OR BOYCOTTS

Sec.
760.1 Definitions.
760.2 Prohibitions.
760.3 Exceptions to prohibitions.
760.4 Evasion.
760.5 Reporting requirements.

Supplement No. 1 To Part 760--Interpretations

Supplement No. 2 To Part 760--Interpretation

Supplement No. 3 To Part 760--Interpretation

Supplement No. 4 To Part 760--Interpretation

Supplement No. 5 To Part 760--Interpretation

Supplement No. 6 To Part 760--Interpretation

Supplement No. 7 To Part 760--Interpretation

Supplement No. 8 To Part 760--Interpretation

Supplement No. 9 To Part 760--Interpretation

Supplement No. 10 To Part 760--Interpretation

Supplement No. 11 To Part 760--Interpretation

Supplement No. 12 To Part 760--Interpretation

Supplement No. 13 To Part 760--Interpretation

Supplement No. 14 To Part 760--Interpretation

Supplement No. 15 To Part 760--Interpretation

Supplement No. 16 To Part 760--Interpretation

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 760.1  Definitions.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C.
    (a) Definition of Person. For purposes of this part, the term 
``person'' means any individual, or any association or organization, 
public or private, which is organized, permanently established, 
resident, or registered to do business, in the United States or any 
foreign country. This definition of person includes both the singular 
and plural and, in addition, includes:
    (1) Any partnership, corporation, company, branch, or other form of 
association or organization, whether organized for profit or non-profit 
purposes;
    (2) Any government, or any department, agency, or commission of any 
government;
    (3) Any trade association, chamber of commerce, or labor union;
    (4) Any charitable or fraternal organization; and
    (5) Any other association or organization not specifically listed 
in paragraphs (a)(1) through (4) of this section.
    (b) Definition of ``United States Person''.  (1) This part applies 
to United States persons. For purposes of this part, the term United 
States person means any person who is a United States resident or 
national, including individuals, domestic concerns, and ``controlled in 
fact'' foreign subsidiaries, affiliates, or other permanent foreign 
establishments of domestic concerns. This definition of United States 
person includes both the singular and plural and, in addition, 
includes:
    (i) The government of the United States or any department, agency, 
or commission thereof;
    (ii) The government of any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any subdivision, department, 
agency, or commission of any such government;
    (iii) Any partnership, corporation, company, association, or other 
entity organized under the laws of paragraph (b)(1)(i) or (ii) of this 
section;
    (iv) Any foreign concern's subsidiary, partnership, affiliate, 
branch, office, or other permanent establishment in any state of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, or any territory or possession of the United States; and
    (v) Any domestic concern's foreign subsidiary, partnership, 
affiliate, branch, office, or other permanent foreign establishment 
which is controlled in fact by such domestic concern. (See paragraph 
(c) of this section on ``Definition of 'Controlled in Fact'.'')
    (2) The term domestic concern means any partnership, corporation, 
company, association, or other entity of, or organized under the laws 
of, any jurisdiction named in paragraph (b)(1) (i) or (ii) of this 
section, or any permanent domestic establishment of a foreign concern.
    (3) The term foreign concern means any partnership, corporation, 
company, association, or other entity of, or organized under the laws 
of, any jurisdiction other than those named in paragraph (b)(1)(i) or 
(ii) of this section.
    (4) The term United States person does not include an individual 
United States national who is resident outside the United States and 
who is either employed permanently or temporarily by a non-United 
States person or assigned to work as an employee for, and under the 
direction and control of, a non-United States person.

Examples of ``United States Person''

    The following examples are intended to give guidance in 
determining whether a person is a ``United States person.'' They are 
illustrative, not comprehensive.
    (i) U.S. bank A has a branch office in foreign country P. Such 
branch office is a United States person, because it is a permanent 
foreign establishment of a domestic concern.
    (ii) Ten foreign nationals establish a manufacturing plant, A, 
in the United States, incorporating the plant under New York law.
    A is a United States person, because it is a corporation 
organized under the laws of one of the states of the United States.
    (iii) A, a foreign corporation, opens an office in the United 
States for purposes of soliciting U.S. orders. The office is not 
separately incorporated.
    A's U.S. office is a United States person, because it is a 
permanent establishment, in the United States, of a foreign concern.
    (iv) A, a U.S. individual, owns stock in foreign corporation B.
    A is a United States person. However, A is not a ``domestic 
concern,'' because the term ``domestic concern'' does not include 
individuals.
    (v) A, a foreign national resident in the United States, is 
employed by B, a foreign corporation.
    A is a United States person, because he is resident in the 
United States.
    (vi) A, a foreign national, who is resident in a foreign country 
and is employed by a foreign corporation, makes occasional visits to 
the United States, for purposes of exploring business opportunities.
    A is not a United States person, because he is not a United 
States resident or national.
    (vii) A is an association of U.S. firms organized under the laws 
of Pennsylvania for the purpose of expanding trade.
    A is a United States person, because it is an association 
organized under the laws of one of the states of the United States.
    (viii) At the request of country Y, A, an individual employed by 
U.S. company B, is transferred to company C as an employee. C is a 
foreign company owned and controlled by country Y. A, a U.S. 
national who will reside in Y, has agreed to the transfer provided 
he is able to retain his insurance, pension, and other benefits. 
Accordingly, company B has agreed to keep A as an employee in order 
to protect his employee benefits, and company C has agreed to pay 
for A's salary. At all times while he works for C, A will be under 
C's direction and control.
    A is not a United States person while under C's direction and 
control, because he will be resident outside the United States and 
assigned as an employee to a non-United States person. The 
arrangement designed to protect A's insurance, pension, and other 
benefits does not destroy his status as an

[[Page 12863]]
employee of C so long as he is under the direction and control of C.
    (ix) A, a U.S. citizen, has resided in Europe for three years, 
where he is a self-employed consultant for United States and foreign 
companies in the communications industry.
    A is a United States person, because he is a U.S. national and 
because he is not a resident outside the United States who is 
employed by other than a United States person.

    (c) Definition of ``Controlled in Fact''. (1) This part applies to 
any domestic concern's foreign subsidiary, partnership, affiliate, 
branch, office, or other permanent foreign establishment which is 
controlled in fact by such domestic concern. Control in fact consists 
of the authority or ability of a domestic concern to establish the 
general policies or to control day-to-day operations of its foreign 
subsidiary, partnership, affiliate, branch, office, or other permanent 
foreign establishment.
    (2) A foreign subsidiary or affiliate of a domestic concern will be 
presumed to be controlled in fact by that domestic concern, subject to 
rebuttal by competent evidence, when:
    (i) The domestic concern beneficially owns or controls (whether 
directly or indirectly) more than 50 percent of the outstanding voting 
securities of the foreign subsidiary or affiliate;
    (ii) The domestic concern beneficially owns or controls (whether 
directly or indirectly) 25 percent or more of the voting securities of 
the foreign subsidiary or affiliate, if no other person owns or 
controls (whether directly or indirectly) an equal or larger 
percentage;
    (iii) The foreign subsidiary or affiliate is operated by the 
domestic concern pursuant to the provisions of an exclusive management 
contract;
    (iv) A majority of the members of the board of directors of the 
foreign subsidiary or affiliate are also members of the comparable 
governing body of the domestic concern;
    (v) The domestic concern has authority to appoint the majority of 
the members of the board of directors of the foreign subsidiary or 
affiliate; or
    (vi) The domestic concern has authority to appoint the chief 
operating officer of the foreign subsidiary or affiliate.
    (3) A brokerage firm or other person which holds simple record 
ownership of securities for the convenience of clients will not be 
deemed to control the securities.
    (4) A domestic concern which owns, directly or indirectly, 
securities that are immediately convertible at the option of the holder 
or owner into voting securities is presumed to own or control those 
voting securities.
    (5) A domestic concern's foreign branch office or other 
unincorporated permanent foreign establishment is deemed to be 
controlled in fact by such domestic concern under all circumstances.

Examples of ``Controlled in Fact''

    The following examples are intended to give guidance in 
determining the circumstances in which a foreign subsidiary, 
affiliate, or other permanent foreign establishment of a domestic 
concern is ``controlled in fact.'' They are illustrative, not 
comprehensive.
    (i) Company A is incorporated in a foreign country. Fifty-one 
percent of the voting stock of A is owned by U.S. company B.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (ii) Company A is incorporated in a foreign country. Ten percent 
of the voting stock of A is owned by U.S. company B. A has an 
exclusive management contract with B pursuant to which A is operated 
by B.
    As long as such contract is in effect, A is presumed to be 
controlled in fact by B. This presumption may be rebutted by 
competent evidence showing that control does not, in fact, lie with 
B.
    (iii) Company A is incorporated in a foreign country. Ten 
percent of the voting stock of A is owned by U.S. company B. A has 
10 persons on its board of directors. Six of those persons are also 
members of the board of directors of U.S. company B.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (iv) Company A is incorporated in a foreign country. Thirty 
percent of the voting securities of A is owned by U.S. company B and 
no other person owns or controls an equal or larger share.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (v) Company A is incorporated in a foreign country. In A's 
articles of incorporation, U.S. company B has been given authority 
to appoint A's board of directors.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (vi) Company A is a joint venture established in a foreign 
country, with equal participation by U.S. company B and foreign 
company C. U.S. Company B has authority to appoint A's chief 
operating officer.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (vii) Same as (vi), except that B has no authority to appoint 
A's chief operating officer.
    B is not presumed to control A, absent other facts giving rise 
to a presumption of control.
    (viii) Company A is incorporated in a foreign country. U.S. 
companies B, C, and D each own 20 percent of A's voting securities 
and regularly cast their votes in concert.
    A is presumed to be controlled in fact by B, C, and D, because 
these companies are acting in concert to control A.
    (ix) U.S. bank B located in the United States has a branch 
office, A, in a foreign country. A is not separately incorporated.
    A is deemed to be controlled in fact by B, because A is a branch 
office of a domestic concern.
    (x) Company A is incorporated in a foreign country. Fifty-one 
percent of the voting stock of A is owned by company B, which is 
incorporated in another foreign country. Fifty-one percent of the 
voting stock of B is owned by C, a U.S. company.
    Both A and B are presumed to be controlled in fact by C. The 
presumption of C's control over B may be rebutted by competent 
evidence showing that control over B does not, in fact, lie with C. 
The presumption of B's control over A (and thus C's control over A) 
may be rebutted by competent evidence showing that control over A 
does not, in fact, lie with B.
    (xi) B, a U.S. individual, owns 51 percent of the voting 
securities of A, a manufacturing company incorporated and located in 
a foreign country.
    A is not ``controlled in fact'' under this part, because it is 
not controlled by a ``domestic concern.''

    (d) Definition of ``Activities in the Interstate or Foreign 
Commerce of the United States''.

Activities Involving United States Persons Located in the United 
States

    (1) For purposes of this part, the activities of a United States 
person located in the United States are in the interstate or foreign 
commerce of the United States if they involve the sale, purchase, or 
transfer of goods or services (including information) between:
    (i) Two or more of the several States (including the District of 
Columbia);
    (ii) Any State (including the District of Columbia) and any 
territory or possession of the United States;
    (iii) Two or more of the territories or possessions of the United 
States; or
    (iv) A State (including the District of Columbia), territory or 
possession of the United States and any foreign country.
    (2) For purposes of this part, the export of goods or services from 
the United States and the import of goods or services into the United 
States are activities in United States commerce. In addition, the 
action of a domestic concern in specifically directing the activities 
of its controlled in fact foreign subsidiary, affiliate, or other 
permanent foreign establishment is an activity in United States 
commerce.
    (3) Activities of a United States person located in the United 
States may be in United States commerce even if they are part of or 
ancillary to activities

[[Page 12864]]
outside United States commerce. However, the fact that an ancillary 
activity is in United States commerce does not, in and of itself, mean 
that the underlying or related activity is in United States commerce.
    (4) Hence, the action of a United States bank located in the United 
States in providing financing from the United States for a foreign 
transaction that is not in United States commerce is nonetheless itself 
in United States commerce. However, the fact that the financing is in 
United States commerce does not, in and of itself, make the underlying 
foreign transaction an activity in United States commerce, even if the 
underlying transaction involves a foreign company that is a United 
States person within the meaning of this part.
    (5) Similarly, the action of a United States person located in the 
United States in providing financial, accounting, legal, t 
ransportation, or other ancillary services to its controlled in fact 
foreign subsidiary, affiliate, or other permanent foreign establishment 
in connection with a foreign transaction is in United States commerce. 
But the provision of such ancillary services will not, in and of 
itself, bring the foreign transaction of such subsidiary, affiliate, or 
permanent foreign establishment into United States commerce.

Activities of Controlled in Fact Foreign Subsidiaries, Affiliates, and 
Other Permanent Foreign Establishments

    (6) Any transaction between a controlled in fact foreign 
subsidiary, affiliate, or other permanent foreign establishment of a 
domestic concern and a person located in the United States is an 
activity in United States commerce.
    (7) Whether a transaction between such a foreign subsidiary, 
affiliate, or other permanent foreign establishment and a person 
located outside the United States is an activity in United States 
commerce is governed by the following rules.

Activities in United States Commerce

    (8) A transaction between a domestic concern's controlled in fact 
foreign subsidiary, affiliate, or other permanent foreign establishment 
and a person outside the United States, involving goods or services 
(including information but not including ancillary services) acquired 
from a person in the United States is in United States commerce under 
any of the following circumstances--
    (i) If the goods or services were acquired for the purpose of 
filling an order from a person outside the United States;
    (ii) If the goods or services were acquired for incorporation into, 
refining into, reprocessing into, or manufacture of another product for 
the purpose of filling an order from a person outside the United 
States;
    (iii) If the goods or services were acquired for the purpose of 
fulfilling or engaging in any other transaction with a person outside 
the United States; or
    (iv) If the goods were acquired and are ultimately used, without 
substantial alteration or modification, in filling an order from, or 
fulfilling or engaging in any other transaction with, a person outside 
the United States (whether or not the goods were originally acquired 
for that purpose). If the goods are indistinguishable as to origin from 
similar foreign-trade goods with which they have been mingled in a 
stockpile or inventory, the subsequent transaction involving the goods 
is presumed to be in United States commerce unless, at the time of 
filling the order, the foreign-origin inventory on hand was sufficient 
to fill the order.
    (9) For purposes of this section, goods or services are considered 
to be acquired for the purpose of filling an order from or engaging in 
any other transaction with a person outside the United States where:
    (i) They are purchased by the foreign subsidiary, affiliate, or 
other permanent foreign establishment upon the receipt of an order from 
or on behalf of a customer with the intention that the goods or 
services are to go to the customer;
    (ii) They are purchased by the foreign subsidiary, affiliate, or 
other permanent foreign establishment to meet the needs of specified 
customers pursuant to understandings with those customers, although not 
for immediate delivery; or
    (iii) They are purchased by the foreign subsidiary, affiliate, or 
other permanent foreign establishment based on the anticipated needs of 
specified customers.
    (10) If any non-ancillary part of a transaction between a domestic 
concern's controlled foreign subsidiary, affiliate, or other permanent 
foreign establishment and a person outside the United States is in 
United States commerce, the entire transaction is in United States 
commerce. For example, if such a foreign subsidiary is engaged in 
filling an order from a non-United States customer both with goods 
acquired from the United States and with goods acquired elsewhere, the 
entire transaction with that customer is in United States commerce.

Activities Outside United States Commerce

    (11) A transaction between a domestic concern's controlled foreign 
subsidiary, affiliate, or other permanent foreign establishment and a 
person outside the United States, not involving the purchase, sale, or 
transfer of goods or services (including information) to or from a 
person in the United States, is not an activity in United States 
commerce.
    (12) The activities of a domestic concern's controlled foreign 
subsidiary, affiliate, or other permanent foreign establishment with 
respect to goods acquired from a person in the United States are not in 
United States commerce where:
    (i) They were acquired without reference to a specific order from 
or transaction with a person outside the United States; and
    (ii) They were further manufactured, incorporated into, refined 
into, or reprocessed into another product.
    (13) The activities of a domestic concern's controlled foreign 
subsidiary, affiliate, or other permanent foreign establishment with 
respect to services acquired from a person in the United States are not 
in United States commerce where:
    (i) They were acquired without reference to a specific order from 
or transaction with a person outside the United States; or
    (ii) They are ancillary to the transaction with the person outside 
the United States.
    (14) For purposes of this section, services are ancillary services 
if they are provided to a controlled foreign subsidiary, affiliate, or 
other permanent foreign establishment primarily for its own use rather 
than for the use of a third person. These typically include financial, 
accounting, legal,transportation, and other services, whether provided 
by a domestic concern or an unrelated entity.
    (15) Thus, the provision of the project financing by a United 
States bank located in the United States to a controlled foreign 
subsidiary unrelated to the bank is an ancillary service which will not 
cause the underlying transaction to be in United States commerce. By 
contrast, where a domestic concern, on behalf of its controlled foreign 
subsidiary, gives a guaranty of performance to a foreign country 
customer, that is a service provided to the customer and, as such, 
brings that subsidiary's transaction with the customer into United 
States commerce. Similarly, architectural or engineering services 
provided by a

[[Page 12865]]
domestic concern in connection with its controlled foreign subsidiary's 
construction project in a third country are services passed through to 
the subsidiary's customer and, as such, bring that subsidiary's foreign 
transaction into United States commerce.

General

    (16) Regardless of whether the subsequent disposition of goods or 
services from the United States is in United States commerce, the 
original acquisition of goods or services from a person in the United 
States is an activity in United States commerce subject to this part. 
Thus, if a domestic concern's controlled foreign subsidiary engages in 
a prohibited refusal to do business in stocking its inventory with 
goods from the United States, that action is subject to this part 
whether or not subsequent sales from that inventory are.
    (17) In all the above, goods and services will be considered to 
have been acquired from a person in the United States whether they were 
acquired directly or indirectly through a third party, where the person 
acquiring the goods or services knows or expects, at the time he places 
the order, that they will be delivered from the United States.

Letters of Credit

    (18) Implementation of a letter of credit in the United States by a 
United States person located in the United States, including a 
permanent United States establishment of a foreign concern, is an 
activity in United States commerce.
    (19) Implementation of a letter of credit outside the United States 
by a United States person located outside the United States is in 
United States commerce where the letter of credit (a) specifies a 
United States address for the beneficiary, (b) calls for documents 
indicating shipment from the United States, or (c) calls for documents 
indicating that the goods are of United States origin.
    (20) See Sec. 760.2(f) of this part on ``Letters of Credit'' to 
determine the circumstances in which paying, honoring, confirming, or 
otherwise implementing a letter of credit is covered by this part.

Examples of Activities in the Interstate or Foreign Commerce of the 
United States

    The following examples are intended to give guidance in 
determining the circumstances in which an activity is in the 
interstate or foreign commerce of the United States. They are 
illustrative, not comprehensive.

United States Person Located in the United States

    (i) U.S. company A exports goods from the United States to a 
foreign country. A's activity is in U.S. commerce, because A is 
exporting goods from the United States.
    (ii) U.S. company A imports goods into the United States from a 
foreign country. A's activity is in U.S. commerce, because A is 
importing goods into the United States.
    (iii) U.S. engineering company A supplies consulting services to 
its controlled foreign subsidiary, B. A's activity is in U.S. 
commerce, because A is exporting services from the United States.
    (iv) U.S. company A supplies consulting services to foreign 
company B. B is unrelated to A or any other U.S. person.
    A's activity is in U.S. commerce even though B, a foreign-owned 
company located outside the United States, is not subject to this 
part, because A is exporting services from the United States.
    (v) Same as (iv), except A is a bank located in the United 
States and provides a construction loan to B.
    A's activity is in U.S. commerce even though B is not subject to 
this part, because A is exporting financial services from the United 
States.
    (vi) U.S. company A issues policy directives from time to time 
to its controlled foreign subsidiary, B, governing the conduct of 
B's activities with boycotting countries.
    A's activity in directing the activities of its foreign 
subsidiary, B, is an activity in U.S. commerce.

Foreign Subsidiaries, Affiliates, and Other Permanent Foreign 
Establishments of Domestic Concerns

    (i) A, a controlled foreign subsidiary of U.S. company B, 
purchases goods from the United States.
    A's purchase of goods from the United States is in U.S. 
commerce, because A is importing goods from the United States. 
Whether A's subsequent disposition of these goods is in U.S. 
commerce is irrelevant. Similarly, the fact that A purchased goods 
from the United States does not, in and of itself, make any 
subsequent disposition of those goods an activity in U.S. commerce.
    (ii) A, a controlled foreign subsidiary of U.S. company B, 
receives an order from boycotting country Y for construction 
materials. A places an order with U.S. company B for the materials.
    A's transaction with Y is an activity in U.S. commerce, because 
the materials are purchased from the United States for the purpose 
of filling the order from Y.
    (iii) A, a controlled foreign subsidiary of U.S. company B, 
receives an order from boycotting country Y for construction 
materials. A places an order with U.S. company B for some of the 
materials, and with U.S. company C, an unrelated company, for the 
rest of the materials.
    A's transaction with Y is an activity in U.S. commerce, because 
the materials are purchased from the United States for the purpose 
of filling the order from Y. It makes no difference whether the 
materials are ordered from B or C.
    (iv) A, a controlled foreign subsidiary of U.S. company B, is in 
the wholesale and retail appliance sales business. A purchases 
finished air conditioning units from the United States from time to 
time in order to stock its inventory. A's inventory is also stocked 
with air conditioning units purchased outside the United States. A 
receives an order for air conditioning units from Y, a boycotting 
country. The order is filled with U.S.-origin units in A's 
inventory.
    A's transaction with Y is in U.S. commerce, because its U.S.-
origin goods are resold without substantial alteration.
    (v) Same as (iv), except that A is in the chemicals distribution 
business. Its U.S.-origin goods are mingled in inventory with 
foreign-origin goods.
    A's sale to Y of unaltered goods from its general inventory is 
presumed to be in U.S. commerce unless A can show that at the time 
of the sale the foreign-origin inventory on hand was sufficient to 
cover the shipment to Y.
    (vi) A, a foreign subsidiary of U.S. company B, receives an 
order from boycotting country Y for computers. A places an order 
with U.S. company B for some of the components; with U.S. company C, 
an unrelated company, for other components; and with foreign company 
D for the rest of the components. A then assembles the computers and 
ships them to Y.
    A's transaction with Y is an activity in U.S. commerce, because 
some of the components are acquired from the United States for 
purposes of filling an order from Y.
    (vii) Same as (vi), except A purchases all the components from 
non-U.S.sources.
    A's transaction with Y is not an activity in U.S. commerce, 
because it involves no export of goods from the United States. It 
makes no difference whether the technology A uses to manufacture 
computers was originally acquired from its U.S. parent.
    (viii) A, a controlled foreign subsidiary of U.S. company B, 
manufactures computers. A stocks its general components and parts 
inventory with purchases made at times from the United States and at 
times from foreign sources. A receives an order from Y, a boycotting 
country, for computers. A fills that order by manufacturing the 
computers using materials from its general inventory.
    A's transaction with Y is not in U.S. commerce, because the 
U.S.-origin components are not acquired for the purpose of meeting 
the anticipated needs of specified customers in Y. It is irrelevant 
that A's operations may be based on U.S.-origin technology.
    (ix) Same as (viii), except that in anticipation of the order 
from Y, A orders and receives the necessary materials from the 
United States.
    A's transaction with Y is in U.S. commerce, because the U.S.-
origin goods were acquired for the purpose of filling an anticipated 
order from Y.
    (x) A, a controlled foreign subsidiary of U.S. company B, 
manufactures typewriters. It buys typewriter components both from 
the United States and from foreign sources. A sells its output in 
various places throughout the world, including boycotting country Y. 
Its sales to Y vary from year to year, but have averaged 
approximately 20 percent of sales for the past five years. A expects 
that its sales

[[Page 12866]]
to Y will remain at approximately that level in the years ahead 
although it has no contracts or orders from Y on hand.
    A's sales of typewriters to Y are not in U.S. commerce, because 
the U.S. components are not acquired for the purpose of filling an 
order from Y. A general expectancy of future sales is not an 
``order'' within the meaning of this section.
    (xi) U.S. company A's corporate counsel provides legal advice to 
B, its controlled foreign subsidiary, on the applicability of this 
Part to B's transactions.
    While provision of this legal advice is itself an activity in 
U.S. commerce, it does not, in and of itself, bring B's activities 
into U.S. commerce.
    (xii) A, a controlled foreign subsidiary of U.S. company B, is 
in the general construction business. A enters into a contract with 
boycotting country Y to construct a power plant in Y. In preparing 
engineering drawings and specifications, A uses the advice and 
assistance of B.
    A's transaction with Y is in U.S. commerce, because B's services 
are used for purposes of fulfilling the contract with Y. B's 
services are not ancillary services, because the engineering 
services in connection with construction of the power plant are part 
of the services ultimately provided to Y by A.
    (xiii) Same as (xii), except that A gets no engineering advice 
or assistance from B. However, B's corporate counsel provides legal 
advice to A regarding the structure of the transaction. In addition, 
B's corporate counsel draws up the contract documents.
    A's transaction with Y is not in U.S. commerce. The legal 
services provided to A are ancillary services, because they are not 
part of the services provided to Y by A in fulfillment of its 
contract with Y.
    (xiv) A, a controlled foreign subsidiary of U.S. company B, 
enters into a contract to construct an apartment complex in 
boycotting country Y. A will fulfill its contract completely with 
goods and services from outside the United States. Pursuant to a 
provision in the contract, B guarantees A's performance of the 
contract.
    A's transaction with Y is in U.S. commerce, because B's guaranty 
of A's performance involves the acquisition of services from the 
United States for purposes of fulfilling the transaction with Y, and 
those services are part of the services ultimately provided to Y.
    (xv) Same as (xiv), except that the guaranty of A's performance 
is supplied by C, a non-U.S. person located outside the United 
States. However, unrelated to any particular transaction, B from 
time to time provides general financial, legal, and technical 
services to A.
    A's transaction with Y is not in U.S. commerce, because the 
services acquired from the United States are not acquired for 
purposes of fulfilling the contract with Y.
    (xvi) A, a foreign subsidiary of U.S. company B, has a contract 
with boycotting country Y to conduct oil drilling operations in that 
country. In conducting these operations, A from time to time seeks 
certain technical advice from B regarding the operation of the 
drilling rigs.
    A's contract with Y is in U.S. commerce, because B's services 
are sought for purposes of fulfilling the contract with Y and are 
part of the services ultimately provided to Y.
    (xvii) A, a controlled foreign subsidiary of U.S. company B, 
enters into a contract to sell typewriters to boycotting country Y. 
A is located in non-boycotting country P. None of the components are 
acquired from the United States. A engages C, a U.S. shipping 
company, to transport the typewriters from P to Y.
    A's sales to Y are not in U.S. commerce, because in carrying A's 
goods, C is providing an ancillary service to A and not a service to 
Y.
    (xviii) Same as (xvii), except that A's contract with Y calls 
for title to pass to Y in P. In addition, the contract calls for A 
to engage a carrier to make delivery to Y.
    A's sales to Y are in U.S. commerce, because in carrying Y's 
goods, C is providing a service to A which is ultimately provided to 
Y.
    (xix) A, a controlled foreign subsidiary of U.S. company B, has 
general product liability insurance with U.S. company C. Foreign-
origin goods sold from time to time by A to boycotting country Y are 
covered by the insurance policy.
    A's sales to Y are not in U.S. commerce, because the insurance 
provided by C is an ancillary service provided to A which is not 
ultimately provided to Y.
    (xx) A, a controlled foreign subsidiary of U.S. company B, 
manufactures automobiles abroad under a license agreement with B. 
From time to time, A sells such goods to boycotting country Y.
    A's sales to Y are not in U.S. commerce, because the rights 
conveyed by the license are not acquired for the specific purpose of 
engaging in transactions with Y.

    (e) ``Intent''. (1) This part prohibits a United States person from 
taking or knowingly agreeing to take certain specified actions with 
intent to comply with, further, or support an unsanctioned foreign 
boycott.
    (2) A United States person has the intent to comply with, further, 
or support an unsanctioned foreign boycott when such a boycott is at 
least one of the reasons for that person's decision whether to take a 
particular prohibited action. So long as that is at least one of the 
reasons for that person's action, a violation occurs regardless of 
whether the prohibited action is also taken for non-boycott reasons. 
Stated differently, the fact that such action was taken for legitimate 
business reasons does not remove that action from the scope of this 
part if compliance with an unsanctioned foreign boycott was also a 
reason for the action.
    (3) Intent is a necessary element of any violation of this part. It 
is not sufficient that one take action that is specifically prohibited 
by this part. It is essential that one take such action with intent to 
comply with, further,or support an unsanctioned foreign boycott. 
Accordingly, a person who inadvertently, without boycott intent, takes 
a prohibited action, does not commit any violation of this part.
    (4) Intent in this context means the reason or purpose for one's 
behavior. It does not mean that one has to agree with the boycott in 
question or desire that it succeed or that it be furthered or 
supported. But it does mean that the reason why a particular prohibited 
action was taken must be established.
    (5) Reason or purpose can be proved by circumstantial evidence. For 
example, if a person receives a request to supply certain boycott 
information, the furnishing of which is prohibited by this part, and he 
knowingly supplies that information in response, he clearly intends to 
comply with that boycott request. It is irrelevant that he may disagree 
with or object to the boycott itself. Information will be deemed to be 
furnished with the requisite intent if the person furnishing the 
information knows that it was sought for boycott purposes. On the other 
hand, if a person refuses to do business with someone who happens to be 
blacklisted, but the reason is because that person produces an inferior 
product, the requisite intent does not exist.
    (6) Actions will be deemed to be taken with intent to comply with 
an unsanctioned foreign boycott if the person taking such action knew 
that such action was required or requested for boycott reasons. On the 
other hand, the mere absence of a business relationship with a 
blacklisted person or with or in a boycotted country does not indicate 
the existence of the requisite intent.
    (7) In seeking to determine whether the requisite intent exists, 
all available evidence will be examined.

Examples of ``Intent''

    The following examples are intended to illustrate the factors 
which will be considered in determining whether the required intent 
exists. They are illustrative, not comprehensive.
    (i) U.S. person A does business in boycotting country Y. In 
selecting firms to supply goods for shipment to Y, A chooses 
supplier B because B's products are less expensive and of higher 
quality than the comparable products of supplier C. A knows that C 
is blacklisted, but that is not a reason for A's selection of B.
    A's choice of B rather than C is not action with intent to 
comply with Y's boycott, because C's blacklist status is not a 
reason for A's action.
    (ii) Same as (i), except that A chooses B rather than C in part 
because C is blacklisted by Y.
    Since C's blacklist status is a reason for A's choice, A's 
action is taken with intent to comply with Y's boycott.
    (iii) U.S. person A bids on a tender issued by boycotting 
country Y. A inadvertently

[[Page 12867]]
fails to notice a prohibited certification which appears in the 
tender document. A's bid is accepted.
    A's action in bidding was not taken with intent to comply with 
Y's boycott, because the boycott was not a reason for A's action.
    (iv) U.S. bank A engages in letter of credit transactions, in 
favor of U.S. beneficiaries, involving the shipments of U.S. goods 
to boycotting country Y. As A knows, such letters of credit 
routinely contain conditions requiring prohibited certifications. A 
fails to take reasonable steps to prevent the implementation of such 
letters of credit. A receives for implementation a letter of credit 
which in fact contains a prohibited condition but does not examine 
the letter of credit to determine whether it contains such a 
condition.
    Although Y's boycott may not be a specific reason for A's action 
in implementing the letter of credit with a prohibited condition, 
all available evidence shows that A's action was taken with intent 
to comply with the boycott, because A knows or should know that its 
procedures result in compliance with the boycott.
    (v) U.S. bank A engages in letter of credit transactions, in 
favor of U.S. beneficiaries, involving the shipment of U.S. goods to 
boycotting country Y. As A knows, the documentation accompanying 
such letters of credit sometimes contains prohibited certifications. 
In accordance with standard banking practices applicable to A, it 
does not examine such accompanying documentation. A receives a 
letter of credit in favor of a U.S. beneficiary. The letter of 
credit itself contains no prohibited conditions. However, the 
accompanying documentation, which A does not examine, does contain 
such a condition.
    All available evidence shows that A's action in implementing the 
letter of credit was not taken with intent to comply with the 
boycott, because A has no affirmative obligation to go beyond 
applicable standard banking practices in implementing letters of 
credit.
    (vi) A, a U.S. company, is considering opening a manufacturing 
facility in boycotted country X. A already has such a facility in 
boycotting country Y. After exploring the possibilities in X, A 
concludes that the market does not justify the move. A is aware that 
if it did open a plant in X, Y might object because of Y's boycott 
of X. However Y's possible objection is not a reason for A's 
decision not to open a plant in X.
    A's decision not to proceed with the plant in X is not action 
with intent to comply with Y's boycott, because Y's boycott of X is 
not a reason for A's decision.
    (vii) Same as (vi), except that after exploring the business 
possibilities in X, A concludes that the market does justify the 
move to X. However, A does not open the plant because of Y's 
possible objections due to Y's boycott of X.
    A's decision not to proceed with the plant in X is action taken 
with intent to comply with Y's boycott, because Y's boycott is a 
reason for A's decision.
    (viii) A, a U.S. chemical manufacturer, receives a ``boycott 
questionnaire'' from boycotting country Y asking, among other 
things, whether A has any plants located in boycotted country X. A, 
which has never supported Y's boycott of X, responds to Y's 
questionnaire, indicating affirmatively that it does have plants in 
X and that it intends to continue to have plants in X.
    A's responding to Y's questionnaire is deemed to be action with 
intent to comply with Y's boycott because A knows that the 
questionnaire is boycott-related. It is irrelevant that A does not 
also wish to support Y's boycott.
    (ix) U.S. company A is on boycotting country Y's blacklist. In 
an attempt to secure its removal from the blacklist, A wishes to 
supply to Y information which demonstrates that A does at least as 
much business in Y and other countries engaged in a boycott of X as 
it does in X. A intends to continue its business in X undiminished 
and in fact is exploring and intends to continue exploring an 
expansion of its activities in X without regard to Y's boycott.
    A may furnish the information, because in doing so it has no 
intent to comply with, further, or support Y's boycott.
    (x) U.S. company A has a manufacturing facility in boycotted 
country X. A receives an invitation to bid on a construction project 
in boycotting country Y. The invitation states that all bidders must 
complete a boycott questionnaire and send it in with the bid. The 
questionnaire asks for information about A's business relationships 
with X. Regardless of whether A's bid is successful, A intends to 
continue its business in X undiminished and in fact is exploring and 
intends to continue exploring an expansion of its activities in X 
without regard to Y's boycott.
    A may not answer the questionnaire, because, despite A's 
intentions with regard to its business operations in X, Y's request 
for completion of the questionnaire is for boycott purposes and by 
responding, A's action would betaken with intent to comply with Y's 
boycott.

    (Note: Example (ix) is distinguishable from (x), because in (ix) 
A is not responding to any boycott request or requirement. Instead, 
on its own initiative, it is supplying information to demonstrate 
non-discriminatory conduct as between X and Y without any intent to 
comply with, further, or support Y's boycott.)


Sec. 760.2  Prohibitions.

    (a) Refusals to do business.

Prohibition Against Refusals To Do Business

    (1) No United States person may: refuse, knowingly agree to refuse, 
require any other person to refuse, or knowingly agree to require any 
other person to refuse, to do business with or in a boycotted country, 
with any business concern organized under the laws of a boycotted 
country, with any national or resident of a boycotted country, or with 
any other person, when such refusal is pursuant to an agreement with 
the boycotting country, or a requirement of the boycotting country, or 
a request from or on behalf of the boycotting country.
    (2) Generally, a refusal to do business under this section consists 
of action that excludes a person or country from a transaction for 
boycott reasons. This includes a situation in which a United States 
person chooses or selects one person over another on a boycott basis or 
takes action to carry out another person's boycott-based selection when 
he knows or has reason to know that the other person's selection is 
boycott-based.
    (3) Refusals to do business which are prohibited by this section 
include not only specific refusals, but also refusals implied by a 
course or pattern of conduct. There need not be a specific offer and 
refusal to constitute a refusal to do business; a refusal may occur 
when a United States person has a financial or commercial opportunity 
and declines for boycott reasons to consider or accept it.
    (4) A United States person's use of either a boycott-based list of 
persons with whom he will not deal (a so-called ``blacklist'') or a 
boycott-based list of persons with whom he will deal (a so-called 
``whitelist'') constitutes a refusal to do business.
    (5) An agreement by a United States person to comply generally with 
the laws of the boycotting country with which it is doing business or 
an agreement that local laws of the boycotting country shall apply or 
govern is not, in and of itself, a refusal to do business. Nor, in and 
of itself, is use of a contractual clause explicitly requiring a person 
to assume the risk of loss of non-delivery of his products a refusal to 
do business with any person who will not or cannot comply with such a 
clause. (But see Sec. 760.4 of this part on ``Evasion.'')
    (6) If, for boycott reasons, a United States general manager 
chooses one supplier over another, or enters into a contract with one 
supplier over another, or advises its client to do so, then the general 
manager's actions constitute a refusal to do business under this 
section. However, it is not a refusal to do business under this section 
for a United States person to provide management, procurement, or other 
pre-award services for another person so long as the provision of such 
pre-award services is customary for that firm (or industry of which the 
firm is a part), without regard to the boycotting or non-boycotting 
character of the countries in which they are performed, and the United 
States person, in providing such services, does not act to exclude a 
person or country from the transaction for boycott reasons, or 
otherwise take actions that are boycott-based. For example, a United 
States person under

[[Page 12868]]
contract to provide general management services in connection with a 
construction project in a boycotting country may compile lists of 
qualified bidders for the client if that service is a customary one and 
if persons who are qualified are not excluded from that list because 
they are blacklisted.
    (7) With respect to post-award services, if a client makes a 
boycott-based selection, actions taken by the United States general 
manager or contractor to carry out the client's choice are themselves 
refusals to do business if the United States contractor knows or has 
reason to know that the client's choice was boycott-based. (It is 
irrelevant whether the United States contractor also provided pre-award 
services.) Such actions include entering into a contract with the 
selected supplier, notifying the supplier of the client's choice, 
executing a contract on behalf of the client, arranging for inspection 
and shipment of the supplier's goods, or taking any other action to 
effect the client's choice. (But see Sec. 760.3(c) of this part on 
``Compliance with Unilateral Selection'' as it may apply to post-award 
services.)
    (8) An agreement is not a prerequisite to a violation of this 
section since the prohibition extends to actions taken pursuant not 
only to agreements but also to requirements of, and requests from or on 
behalf of, a boycotting country.
    (9) Agreements under this section may be either express or implied 
by a course or pattern of conduct. There need not be a direct request 
from a boycotting country for action by a United States person to have 
been taken pursuant to an agreement with or requirement of a boycotting 
country.
    (10) This prohibition, like all others, applies only with respect 
to a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott. The mere absence of a business 
relationship with or in the boycotted country, with any business 
concern organized under the laws of the boycotted country, with 
national(s) or resident(s) of the boycotted country, or with any other 
person does not indicate the existence of the required intent.

Examples of Refusals and Agreements To Refuse To Do Business

    The following examples are intended to give guidance in 
determining the circumstances in which, in a boycott situation, a 
refusal to do business or an agreement to refuse to do business is 
prohibited. They are illustrative, not comprehensive.

Refusals To Do Business

    (i) A, a U.S. manufacturer, receives an order for its products 
from boycotting country Y. To fill that order, A solicits bids from 
U.S. companies B and C, manufacturers of components used in A's 
products. A does not, however, solicit bids from U.S. companies D or 
E, which also manufacture such components, because it knows that D 
and E are restricted from doing business in Y and that their 
products are, therefore, not importable into that country.
    Company A may not refuse to solicit bids from D and E for 
boycott reasons, because to do so would constitute a refusal to do 
business with those persons.
    (ii) A, a U.S. exporter, uses company B, a U.S. insurer, to 
insure the shipment of its goods to all its overseas customers. For 
the first time, A receives an order for its products from boycotting 
country Y. Knowing that B is on the blacklist of Y, A arranges with 
company C, a non-blacklisted U.S. insurer, to insure the shipment of 
its goods to Y.
    A's action constitutes a refusal to do business with B.
    (iii) A, a U.S. exporter, purchases all its liability insurance 
from company B, a U.S. company that does business in boycotted 
country X. A wishes to expand its operations into country Y, the 
boycotting country. Before doing so, A decides to switch from 
insurer B to insurer C in anticipation of a request from Y that A 
sever its relations with B as a condition of doing business in Y.
    A may not switch insurers for this reason, because doing so 
would constitute a refusal to do business with B.
    (iv) U.S. company A exports goods to boycotting country Y. In 
selecting vessels to transport the goods to Y, A chooses only from 
among carriers which call at ports in Y.
    A's action is not a refusal to do business with carriers which 
do not call at ports in Y.
    (v) A, a U.S. bank with a branch office in boycotting country Y, 
sends representatives to boycotted country X to discuss plans for 
opening a branch office in X. Upon learning of these discussions, an 
official of the local boycott office in Y advises A's local branch 
manager that if A opens an office in X it will no longer be allowed 
to do business in Y. As a result of this notification, A decides to 
abandon its plans to open a branch in X.
    Bank A may not abandon its plans to open a branch in X as a 
result of Y's notification, because doing so would constitute a 
refusal to do business in boycotted country X.
    (vi) A, a U.S. company that manufactures office equipment, has 
been restricted from doing business in boycotting country Y because 
of its business dealings with boycotted country X. In an effort to 
have itself removed from Y's blacklist, A ceases its business in X.
    A's action constitutes a refusal to do business in boycotted 
country X.
    (vii) A, a U.S. computer company, does business in boycotting 
country Y. A decides to explore business opportunities in boycotted 
country X. After careful analysis of possible business opportunities 
in X, A decides, solely for business reasons, not to market its 
products in X.
    A's decision not to proceed is not a refusal to do business, 
because it is not based on boycott considerations. A has no 
affirmative obligation to do business in X.
    (viii) A, a U.S. oil company with operations in boycotting 
country Y, has regularly purchased equipment from U.S. petroleum 
equipment suppliers B, C, and D, none of whom is on the blacklist of 
Y. Because of its satisfactory relationship with B, C, and D, A has 
not dealt with other suppliers, including supplier E, who is 
blacklisted by Y.
    A's failure affirmatively to seek or secure business with 
blacklisted supplier E is not a refusal to do business with E.
    (ix) Same as (viii), except U.S. petroleum equipment supplier E, 
a company on boycotting country Y's blacklist, offers to supply U.S. 
oil company A with goods comparable to those provided by U.S. 
suppliers B, C, and D. A, because it has satisfactorily, established 
relationships with suppliers B, C, and D, does not accept supplier 
E's offer.
    A's refusal of supplier E's offer is not a refusal to do 
business, because it is based solely on non-boycott considerations. 
A has no affirmative obligation to do business with E.
    (x) A, a U.S. construction company, enters into a contract to 
build an office complex in boycotting country Y. A receives bids 
from B and C, U.S. companies that are equally qualified suppliers of 
electrical cable for the project. A knows that B is blacklisted by Y 
and that C is not. A accepts C's bid, in part because C is as 
qualified as the other potential supplier and in part because C is 
not blacklisted.
    A's decision to select supplier C instead of blacklisted 
supplier B is a refusal to do business, because the boycott was one 
of the reasons for A's decision.
    (xi) A, a U.S. general contractor, has been retained to 
construct a highway in boycotting country Y. A circulates an 
invitation to bid to U.S. manufacturers of road-building equipment. 
One of the conditions listed in the invitation to bid is that, in 
order for A to obtain prompt service, suppliers will be required to 
maintain a supply of spare parts and a service facility in Y. A 
includes this condition solely for commercial reasons unrelated to 
the boycott. Because of this condition, however, those suppliers on 
Y's blacklist do not bid, since they would be unable to satisfy the 
parts and services requirements.
    A's action is not a refusal to do business, because the 
contractual condition was included solely for legitimate business 
reasons and was not boycott-based.
    (xii) Company A, a U.S. oil company, purchases drill bits from 
U.S. suppliers for export to boycotting country Y. In its purchase 
orders, A includes a provision requiring the supplier to make 
delivery to A's facilities in Y and providing that title to the 
goods does not pass until delivery has been made. As is customary 
under such an arrangement, the supplier bears all risks of loss, 
including loss from fire, theft, perils of the sea, and inability to 
clear customs, until title passes.
    Insistence on such an arrangement does not constitute a refusal 
to do business,

[[Page 12869]]
because this requirement is imposed on all suppliers whether they 
are blacklisted or not. (But see Sec. 760.4 of this part on 
``Evasion'').
    (xiii) A, a U.S. engineering and construction company, contracts 
with a government agency in boycotting country Y to perform a 
variety of services in connection with the construction of a large 
industrial facility in Y. Pursuant to this contract, A analyzes the 
market of prospective suppliers, compiles a suggested bidders list, 
analyzes the bids received, and makes recommendations to the client. 
The client independently selects and awards the contract to supplier 
C for boycott reasons. All of A's services are performed without 
regard to Y's blacklist or any other boycott considerations, and are 
the type of services A provides clients in both boycotting and non-
boycotting countries.
    A's actions do not constitute a refusal to do business, because, 
in the provision of pre-award services, A has not excluded the other 
bidders and because A customarily provides such services to its 
clients.
    (xiv) Same as (xiii), except that in compiling a list of 
prospective suppliers, A deletes suppliers he knows his client will 
refuse to select because they are blacklisted. A knows that 
including the names of blacklisted suppliers will neither enhance 
their chances of being selected nor provide his client with a useful 
service, the function for which he has been retained.
    A's actions, which amount to furnishing a so-called 
``whitelist'', constitute refusals to do business, because A's pre-
award services have not been furnished without regard to boycott 
considerations.
    (xv) A, a U.S. construction firm, provides its boycotting 
country client with a permissible list of prospective suppliers, B, 
C, D, and E. The client independently selects and awards the 
contract to C, for boycott reasons, and then requests A to advise C 
of his selection, negotiate the contract with C, arrange for the 
shipment, and inspect the goods upon arrival. A knows that C was 
chosen by the client for boycott reasons.
    A's action in complying with his client's direction is a refusal 
to do business, because A's post-award actions carry out his 
client's boycott-based decision. (Note: Whether A's action comes 
within the unilateral selection exception depends upon factors 
discussed in Sec. 760.3(d) of this part).
    (xvi) Same as (xv), except that A is building the project on a 
turnkey basis and will retain title until completion. The client 
instructs A to contract only with C.
    A's action in contracting with C constitutes a refusal to do 
business, because it is action that excludes blacklisted persons 
from the transaction for boycott reasons. (Note: Whether A's action 
comes within the unilateral selection exception depends upon factors 
discussed in Sec. 760.3(d) of this part).
    (xvii) A, a U.S. exporter of machine tools, receives an order 
for drill presses from boycotting country Y. The cover letter from 
Y's procurement official states that A was selected over other U.S. 
manufacturers in part because A is not on Y's blacklist.
    A's action in filling this order is not a refusal to do 
business, because A has not excluded anyone from the transaction.
    (xviii) A, a U.S. engineering firm under contract to construct a 
dam in boycotting country Y, compiles, on a non-boycott basis, a 
list of potential heavy equipment suppliers, including information 
on their qualifications and prior experience. A then solicits bids 
from the top three firms on its list-B, C, and D-because they are 
the best qualified.
    None of them happens to be blacklisted. A does not solicit bids 
from E, F, or G, the next three firms on the list, one of whom is on 
Y's blacklist.
    A's decision to solicit bids from only B, C, and D, is not a 
refusal to do business with any person, because the solicited 
bidders were not selected for boycott reasons.
    (xix) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to certify that he is 
not blacklisted. B meets all other conditions of the letter of 
credit but refuses to certify as to his blacklist status. A refuses 
to pay B on the letter of credit solely because B refuses to certify 
as to his blacklist status.
    A has refused to do business with another person pursuant to a 
boycott requirement or request.
    (xx) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to provide a 
certification from the steamship line that the vessel carrying the 
goods is not blacklisted. B seeks payment from A and meets all other 
conditions of the letter of credit but refuses or is unable to 
provide the certification from the steamship line about the vessel's 
blacklist status. A refuses to pay B on the letter of credit solely 
because B cannot or will not provide the certification.
    A has required another person to refuse to do business pursuant 
to a boycott requirement or request by insisting that B obtain such 
a certificate. (Either A or B may request an amendment to the letter 
of credit substituting a certificate of vessel eligibility, however. 
See Example (xxi) below).
    (xxi) U.S. bank A receives a letter of credit from a bank in 
boycotting country Y in favor of U.S. beneficiary B. The letter of 
credit requires B to provide a certification from the steamship line 
that the vessel carrying the goods is eligible to enter the ports in 
Y. B seeks payment from A and meets all other conditions of the 
letter of credit. A refuses to pay B solely because B cannot or will 
not provide the certification.
    A has neither refused, nor required another person to refuse, to 
do business with another person pursuant to a boycott requirement or 
request because the vessel eligibility certificate is a common 
requirement for non-boycott purposes.
    (xxii) U.S. bank A confirms a letter of credit in favor of U.S. 
beneficiary B. The letter of credit contains a requirement that B 
certify that he is not blacklisted. B presents the letter of credit 
to U.S. bank C, a correspondent of bank A. B does not present the 
certificate of blacklist status to bank C, but, in accordance with 
these rules, bank C pays B, and then presents the letter of credit 
and documentation to bank A for reimbursement. Bank A refuses to 
reimburse bank C because the blacklist certification of B is not 
included in the documentation.
    A has required another person to refuse to do business with a 
person pursuant to a boycott requirement or request by insisting 
that C obtain the certificate from B.
    (xxiii) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to certify that he is 
not blacklisted. B fails to provide such a certification when he 
presents the documents to A for payment. A notifies B that the 
certification has not been submitted.
    A has not refused to do business with another person pursuant to 
a boycott requirement by notifying B of the omitted certificate. A 
may not refuse to pay on the letter of credit, however, if B states 
that B will not provide such a certificate.
    (xxiv) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B from the issuing bank for the purpose of confirmation, 
negotiation or payment. The letter of credit requires B to certify 
that he is not blacklisted. A notifies B that it is contrary to the 
policy of A to handle letters of credit containing this condition 
and that, unless an amendment is obtained deleting this condition, A 
will not implement the letter of credit.
    A has not refused to do business with another person pursuant to 
a boycott requirement, because A has indicated its policy against 
implementing the letter of credit containing the term without regard 
to B's ability or willingness to furnish such a certificate.

Agreements To Refuse To Do Business

    (i) A, a U.S. construction firm, is retained by an agency of 
boycotting country Y to build a primary school. The proposed 
contract contains a clause stating that A ``may not use goods or 
services in the project that are produced or provided by any person 
restricted from having a business relationship with country Y by 
reason of Y's boycott against country X''.
    A's action in entering into such a contract would constitute an 
agreement to refuse to do business, because it is an agreement to 
exclude blacklisted persons from the transaction. A may, however, 
renegotiate this clause so that it does not contain terms prohibited 
by this part.
    (ii) A, a U.S. manufacturer of commercial refrigerators and 
freezers, receives an invitation to bid from boycotting country Y. 
The tender states that the bidder must agree not to deal with 
companies on Y's blacklist. A does not know which companies are on 
the blacklist, and A's bid makes no commitment regarding not dealing 
with certain companies. A's bid in response to the tender is 
accepted.
    At the point when A's bid is accepted, A has agreed to refuse to 
do business with blacklisted persons, because the terms of Y's 
tender are part of the contract between Y and A.
    (iii) A, a U.S. construction firm, is offered a contract to 
perform engineering and construction services in connection with a 
project located in boycotting country Y. The contract contains a 
clause stating that, in the event of a contract dispute, the laws of 
Y will apply.
    A may enter into the contract. Agreement that the laws of 
boycotting country Y will control in resolving a contract dispute is 
not an agreement to refuse to do business.

[[Page 12870]]

    (iv) Same as (iii), except that the contract contains a clause 
that A and its employees will comply with the laws of boycotting 
country Y. A knows that Y has a number of boycott laws.
    Such an agreement is not, in and of itself, an agreement to 
refuse to do business. If, however, A subsequently refuses to do 
business with someone because of the laws of Y, A's action would be 
a refusal to do business.
    (v) Same as (iv), except that the contract contains a clause 
that A and its employees will comply with the laws of boycotting 
country Y, ``including boycott laws''.
    A's agreeing, without qualification, to comply with local 
boycott laws constitutes an agreement to refuse to do business.
    (vi) Same as (v), except that A inserts a proviso ``except 
insofar as Y's laws conflict with U.S. laws'', or words to that 
effect.
    Such an agreement is not an agreement to refuse to do business.
    (vii) A, a U.S. general contractor, is retained to construct a 
pipeline in boycotting country Y. A provision in the proposed 
contract stipulates that in purchasing equipment, supplies, and 
services A must give preference to companies located in host country 
Y.
    A may agree to this contract provision. Agreeing to a ``buy 
local'' contract provision is not an agreement to refuse to do 
business, because A's agreement is not made for boycott reasons.
    (viii) A, a U.S. exporter planning to sell retail goods to 
customers in boycotting country Y, enters into a contract to 
purchase goods wholesale from B, a U.S. appliance manufacturer. A's 
contract with B includes a provision stipulating that B may not use 
components or services of blacklisted companies in the manufacture 
of its appliances.
    A's contract constitutes a refusal to do business, because it 
would require another person, B, to refuse to do business with other 
persons for boycott reasons. B may not agree to such a contract, 
because it would be agreeing to refuse to do business with other 
persons for boycott reasons.
    (ix) Same as (viii), except that A and B reach an implicit 
understanding that B will not use components or services of 
blacklisted companies in the manufacture of goods to be exported to 
Y. In the manufacture of appliances to be sold to A for export to 
non-boycotting countries, B uses components manufactured by 
blacklisted companies.
    The actions of both A and B constitute agreement to refuse to do 
business. The agreement is implied by their pattern of conduct.
    (x) Boycotting country Y orders goods from U.S. company B. Y 
opens a letter of credit with foreign bank C in favor of B. The 
letter of credit specifies that negotiation of the letter of credit 
with a bank that appears on the country X boycott blacklist is 
prohibited. U.S. bank A, C's correspondent bank, advises B of the 
letter of credit. B presents documentation to bank A seeking to be 
paid on the letter of credit, without amending or otherwise taking 
exception to the boycott condition.
    B has agreed to refuse to do business with blacklisted banks 
because, by presenting the letter of credit for payment, B has 
accepted all of its terms and conditions.
    (b) Discriminatory actions.

Prohibition Against Taking Discriminatory Actions

    (1) No United States person may:
    (i) Refuse to employ or otherwise discriminate against any 
individual who is a United States person on the basis of race, 
religion, sex, or national origin;
    (ii) Discriminate against any corporation or other organization 
which is a United States person on the basis of the race, religion, 
sex, or national origin of any owner, officer, director, or employee of 
such corporation or organization;
    (iii) Knowingly agree to take any of the actions described in 
paragraph (b)(1)(i) and (ii) of this section; or
    (iv) Require or knowingly agree to require any other person to take 
any of the actions described in paragraph (b)(1)(i) and (ii) of this 
section.
    (2) This prohibition shall apply whether the discriminatory action 
is taken by a United States person on its own or in response to an 
agreement with, request from, or requirement of a boycotting country. 
This prohibition, like all others, applies only with respect to a 
United States person's activities in the interstate or foreign commerce 
of the United States and only when such activities are undertaken with 
intent to comply with, further, or support an unsanctioned foreign 
boycott.
    (3) The section does not supersede or limit the operation of the 
civil rights laws of the United States.

Examples of Discriminatory Actions

    The following examples are intended to give guidance in 
determining the circumstances in which the taking of particular 
discriminatory actions is prohibited. They are illustrative, not 
comprehensive.
    (i) U.S. construction company A is awarded a contract to build 
an office complex in boycotting country Y. A, believing that 
employees of a particular religion will not be permitted to work in 
Y because of Y's boycott against country X, excludes U.S. persons of 
that religion from consideration for employment on the project.
    A's refusal to consider qualified U.S. persons of a particular 
religion for work on the project in Y constitutes a prohibited 
boycott-based discriminatory action against U.S. persons on the 
basis of religion.
    (ii) Same as (i), except that a clause in the contract provides 
that ``no persons of country X origin are to work on this project.''
    A's agreement constitutes a prohibited boycott-based agreement 
to discriminate against U.S. persons, among others, on the basis of 
national origin.
    (iii) Same as (i), except that a clause in the contract provides 
that ``no persons who are citizens, residents, or nationals of 
country X are to work on this project.''
    A's agreement does not constitute a boycott-based agreement to 
discriminate against U.S. persons on the basis of race, religion, 
sex, or national origin, because the clause requires exclusion on 
the basis of citizenship, residency, and nationality only.
    (iv) U.S. construction company A enters into a contract to build 
a school in boycotting country Y. Y's representative orally tells A 
that no persons of country X origin are to work on the project.
    A may not comply, because to do so would constitute 
discrimination on the basis of national origin.
    It makes no difference that A learned of Y's requirement orally. 
It makes no difference how A learns about Y's discriminatory 
requirement.
    (v) Boycotting country Y tenders an invitation to bid on a 
construction project in Y. The tender requires that the successful 
bidder's personnel will be interviewed and that persons of a 
particular religious faith will not be permitted to work on the 
project. Y's requirement is based on its boycott of country X, the 
majority of whose citizens are of that particular faith.
    Agreement to this provision in the tender document by a U.S. 
person would constitute a prohibited agreement to engage in boycott-
based discrimination against U.S. persons of a particular religion.
    (vi) Same as (v), except that the tender specifies that ``women 
will not be allowed to work on this project.''
    Agreement to this provision in the tender by a U.S. person does 
not constitute a prohibited agreement to engage in boycott-based 
discrimination, because the restriction against employment of women 
is not boycott-based. Such an agreement may, however, constitute a 
violation of U.S. civil rights laws.
    (vii) A is a U.S. investment banking firm. As a condition of 
participating in an underwriting of securities to be issued by 
boycotting country Y, A is required to exclude investment banks 
owned by persons of a particular faith from participation in the 
underwriting. Y's requirement is based on its boycott of country X, 
the majority of whose citizens are of that particular faith.
    A's agreement to such a provision constitutes a prohibited 
agreement to engage in boycott-based discrimination against U.S. 
persons on the basis of religion. Further, if A requires others to 
agree to such a condition, A would be acting to require another 
person to engage in such discrimination.
    (viii) U.S. company A is asked by boycotting country Y to 
certify that A will not use a six-pointed star on the packaging of 
its products to be imported into Y. The requirement is part of the 
enforcement effort by Y of its boycott against country X.
    A may not so certify. The six-pointed star is a religious 
symbol, and the certification by A that it will not use such a 
symbol constitutes a statement that A will not ship products made or 
handled by persons of that religion.
    (ix) Same as (viii), except that A is asked to certify that no 
symbol of boycotted country X will appear on the packaging of its 
products imported into Y.

[[Page 12871]]

    Such a certification conveys no statement about any person's 
religion and, thus, does not come within this prohibition.

    (c) Furnishing information about race, religion, sex, or national 
origin.

Prohibition Against Furnishing Information About Race, Religion, Sex, 
or National Origin

    (1) No United States person may:
    (i) Furnish information about the race, religion, sex, or national 
origin of any United States person;
    (ii) Furnish information about the race, religion, sex, or national 
origin of any owner, officer, director, or employee of any corporation 
or other organization which is a United States person;
    (iii) Knowingly agree to furnish information about the race, 
religion, sex, or national origin of any United States person; or
    (iv) Knowingly agree to furnish information about the race, 
religion, sex, or national origin of any owner, officer, director, or 
employee of any corporation or other organization which is a United 
States person.
    (2) This prohibition shall apply whether the information is 
specifically requested or is offered voluntarily by the United States 
person. It shall also apply whether the information requested or 
volunteered is stated in the affirmative or the negative.
    (3) Information about the place of birth of or the nationality of 
the parents of a United States person comes within this prohibition, as 
does information in the form of code words or symbols which could 
identify a United States person's race, religion, sex, or national 
origin.
    (4) This prohibition, like all others, applies only with respect to 
a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott.

Examples of the Prohibition Against Furnishing Discriminatory 
Information

    The following examples are intended to give guidance in 
determining the circumstances in which the furnishing of 
discriminatory information is prohibited. They are illustrative, not 
comprehensive.
    (i) U.S. company A receives a boycott questionnaire from 
boycotting country Y asking whether it is owned or controlled by 
persons of a particular faith, whether it has any persons on its 
board of directors who are of that faith, and what the national 
origin of its president is. The information is sought for purposes 
of enforcing Y's boycott against country X, and A knows or has 
reason to know that the information is sought for that reason.
    A may not answer the questionnaire, because A would be 
furnishing information about the religion and national origin of 
U.S. persons for purposes of complying with or supporting Y's 
boycott against X.
    (ii) U.S. company A, located in the United States, is asked by 
boycotting country Y to certify that A has no persons of a 
particular national origin on its board of directors. A knows that 
Y's purpose in asking for the certification is to enforce its 
boycott against country X.
    A may not make such a certification, because A would be 
furnishing information about the national origin of U.S. persons for 
purposes of complying with or supporting Y's boycott against X.
    (iii) U.S. company A believes that boycotting country Y will 
select A's bid over those of other bidders if A volunteers that it 
has no shareholders, officers, or directors of a particular national 
origin. A's belief is based on its knowledge that Y generally 
refuses, as part of its boycott against country X, to do business 
with companies owned, controlled, or managed by persons of this 
particular national origin.
    A may not volunteer this information, because it would be 
furnishing information about the national origin of U.S. persons for 
purposes of complying with or supporting Y's boycott against X.
    (iv) U.S. company A has a contract to construct an airport in 
boycotting country Y. Before A begins work, A is asked by Y to 
identify the national origin of its employees who will work on the 
site. A knows or has reason to know that Y is seeking this 
information in order to enforce its boycott against X.
    A may not furnish this information, because A would be providing 
information about the national origin of U.S. persons for purposes 
of complying with or supporting Y's boycott against X.
    (v) Same as (iv), except that in order to assemble its work 
force on site in Y, A sends visa forms to its employees and asks 
that the forms be returned to A for transmittal to Y's consulate or 
embassy. A, itself, furnishes no information about its employees, 
but merely transmits the visa forms back and forth.
    In performing the ministerial function of transmitting visa 
forms, A is not furnishing information about any U.S. person's race, 
religion, sex, or national origin.
    (vi) Same as (iv), except that A is asked by Y to certify that 
none of its employees in Y will be women, because Y's laws prohibit 
women from working.
    Such a certification does not constitute a prohibited furnishing 
of information about any U.S. person's sex, since the reason the 
information is sought has nothing to do with Y's boycott of X.
    (vii) U.S. company A is considering establishing an office in 
boycotting country Y. In order to register to do business in Y, A is 
asked to furnish information concerning the nationalities of its 
corporate officers and board of directors.
    A may furnish the information about the nationalities of its 
officers and directors, because in so doing A would not be 
furnishing information about the race, religion, sex, or national 
origin of any U.S. person.

    (d) Furnishing information about business relationships with 
boycotted countries or blacklisted persons.

Prohibition Against Furnishing Information About Business Relationships 
With Boycotted Countries or Blacklisted Persons

    (1) No United States person may furnish or knowingly agree to 
furnish information concerning his or any other person's past, present 
or proposed business relationships:
    (i) With or in a boycotted country;
    (ii) With any business concern organized under the laws of a 
boycotted country;
    (iii) With any national or resident of a boycotted country; or
    (iv) With any other person who is known or believed to be 
restricted from having any business relationship with or in a 
boycotting country.
    (2) This prohibition shall apply:
    (i) Whether the information pertains to a business relationship 
involving a sale, purchase, or supply transaction; legal or commercial 
representation; shipping or other transportation transaction; 
insurance; investment; or any other type of business transaction or 
relationship; and
    (ii) Whether the information is directly or indirectly requested or 
is furnished on the initiative of the United States person.
    (3) This prohibition does not apply to the furnishing of normal 
business information in a commercial context. Normal business 
information may relate to factors such as financial fitness, technical 
competence, or professional experience, and may be found in documents 
normally available to the public such as annual reports, disclosure 
statements concerning securities, catalogs, promotional brochures, and 
trade and business handbooks. Such information may also appear in 
specifications or statements of experience and qualifications.
    (4) Normal business information furnished in a commercial context 
does not cease to be such simply because the party soliciting the 
information may be a boycotting country or a national or resident 
thereof. If the information is of a type which is generally sought for 
a legitimate business purpose (such as determining financial fitness, 
technical competence, or professional experience), the information may 
be furnished even if the information could be used, or without the 
knowledge of the person supplying the information is intended to be 
used, for boycott purposes. However, no information about business 
relationships with blacklisted persons or boycotted

[[Page 12872]]
countries, their residents or nationals, may be furnished in response 
to a boycott request, even if the information is publicly available. 
Requests for such information from a boycott office will be presumed to 
be boycott-based.
    (5) This prohibition, like all others, applies only with respect to 
a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott.

Examples Concerning Furnishing of Information

    The following examples are intended to give guidance in 
determining the circumstances in which the furnishing of information 
is prohibited. They are illustrative, not comprehensive.
    (i) U.S. contractor A is considering bidding for a contract to 
build a dam in boycotting country Y. The invitation to bid, which 
appears in a trade journal, specifies that each bidder must state 
that he does not have any offices in boycotted country X. A knows or 
has reason to know that the requirement is boycott-based.
    A may not make this statement, because it constitutes 
information about A's business relationships with X.
    (ii) U.S. contractor A is considering bidding for a contract to 
construct a school in boycotting country Y. Each bidder is required 
to submit copies of its annual report with its bid. Since A's annual 
report describes A's worldwide operations, including the countries 
in which it does business, it necessarily discloses whether A has 
business relations with boycotted country X. A has no reason to know 
that its report is being sought for boycott purposes.
    A, in furnishing its annual report, is supplying ordinary 
business information in a commercial context.
    (iii) Same as (ii), except that accompanying the invitation to 
bid is a questionnaire from country Y's boycott office asking each 
bidder to supply a copy of its annual report.
    A may not furnish the annual report despite its public 
availability, because it would be furnishing information in response 
to a questionnaire from a boycott office.
    (iv) U.S. company A is on boycotting country Y's blacklist. For 
reasons unrelated to the boycott, A terminates its business 
relationships with boycotted country X. In exploring other marketing 
areas, A determines that boycotting country Y offers great 
potential. A is requested to complete a questionnaire from a central 
boycott office which inquires about A's business relations with X.
    A may not furnish the information, because it is information 
about A's business relationships with a boycotted country.
    (v) U.S. exporter A is seeking to sell its products to 
boycotting country Y. A is informed by Y that, as a condition of 
sale, A must certify that it has no salesmen in boycotted country X. 
A knows or has reason to know that the condition is boycott-based.
    A may not furnish the certification, because it is information 
about A's business relationships in a boycotted country.
    (vi) U.S. engineering company A receives an invitation to bid on 
the construction of a dam in boycotting country Y. As a condition of 
the bid, A is asked to certify that it does not have any offices in 
boycotted country X. A is also asked to furnish plans for other dams 
it has designed.
    A may not certify that it has no office in X, because this is 
information about its business relationships in a boycotted country. 
A may submit plans for other dams it has designed, because this is 
furnishing normal business information, in a commercial context, 
relating to A's technical competence and professional experience.
    (vii) U.S. company A, in seeking to expand its exports to 
boycotting country Y, sends a sales representative to Y for a one 
week trip. During a meeting in Y with trade association 
representatives, A's representative desires to explain that neither 
A nor any companies with which A deals has any business relationship 
with boycotted country X. The purpose of supplying such information 
is to ensure that A does not get blacklisted.
    A's representative may not volunteer this information even 
though A, for reasons unrelated to the boycott, does not deal with 
X, because A's representative would be volunteering information 
about A's business relationships with X for boycott reasons.
    (viii) U.S. company A is asked by boycotting country Y to 
furnish information concerning its business relationships with 
boycotted country X. A, knowing that Y is seeking the information 
for boycott purposes, refuses to furnish the information asked for 
directly, but proposes to respond by supplying a copy of its annual 
report which lists the countries with which A is presently doing 
business. A does not happen to be doing business with X.
    A may not respond to Y's request by supplying its annual report, 
because A knows that it would be responding to a boycott-based 
request for information about its business relationships with X.
    (ix) U.S. company A receives a letter from a central boycott 
office asking A to ``clarify'' A's operations in boycotted country 
X. A intends to continue its operations in X, but fears that not 
responding to the request will result in its being placed on 
boycotting country Y's blacklist. A knows or has reason to know that 
the information is sought for boycott reasons.
    A may not respond to this request, because the information 
concerns its business relationships with a boycotted country.
    (x) U.S. company A, in the course of negotiating a sale of its 
goods to a buyer in boycotting country Y, is asked to certify that 
its supplier is not on Y's blacklist.
    A may not furnish the information about its supplier's blacklist 
status, because this is information about A's business relationships 
with another person who is believed to be restricted from having any 
business relationship with or in a boycotting country.
    (xi) U.S. company A has a manufacturing plant in boycotted 
country X and is on boycotting country Y's blacklist. A is seeking 
to establish operations in Y, while expanding its operations in X. A 
applies to Y to be removed from Y's blacklist. A is asked, in 
response, to indicate whether it has manufacturing facilities in X.
    A may not supply the requested information, because A would be 
furnishing information about its business relationships in a 
boycotted country.
    (xii) U.S. bank A plans to open a branch office in boycotting 
country Y. In order to do so, A is required to furnish certain 
information about its business operations, including the location of 
its other branch offices. Such information is normally sought in 
other countries where A has opened a branch office, and A does not 
have reason to know that Y is seeking the information for boycott 
reasons.
    A may furnish this information, even though in furnishing it A 
would disclose information about its business relationships in a 
boycotted country, because it is being furnished in a normal 
business context and A does not have reason to know that it is 
sought for boycott reasons.
    (xiii) U.S. architectural firm A responds to an invitation to 
submit designs for an office complex in boycotting country Y. The 
invitation states that all bidders must include information 
concerning similar types of buildings they have designed. A has not 
designed such buildings in boycotted country X. Clients frequently 
seek information of this type before engaging an architect.
    A may furnish this information, because this is furnishing 
normal business information, in a commercial context, relating to 
A's technical competence and professional experience.
    (xiv) U.S. oil company A distributes to potential customers 
promotional brochures and catalogs which give background information 
on A's past projects. A does not have business dealings with 
boycotted country X. The brochures, which are identical to those 
which A uses throughout the world, list those countries in which A 
does or has done business. In soliciting potential customers in 
boycotting country Y, A desires to distribute copies of its 
brochures.
    A may do so, because this is furnishing normal business 
information, in a commercial context, relating to professional 
experience.
    (xv) U.S. company A is interested in doing business with 
boycotting country Y. A wants to ask Y's Ministry of Trade whether, 
and if so why, A is on Y's blacklist or is otherwise restricted for 
boycott reasons from doing business with Y.
    A may make this limited inquiry, because it does not constitute 
furnishing information.
    (xvi) U.S. company A is asked by boycotting country Y to certify 
that it is not owned by subjects or nationals of boycotted country X 
and that it is not resident in boycotted country X.
    A may not furnish the certification, because it is information 
about A's business relationships with or in a boycotted country, or 
with nationals of a boycotted country.
    (xvii) U.S. company A, a manufacturer of certain patented 
products, desires to register its patents in boycotting country Y. A 
receives a power of attorney form required to

[[Page 12873]]
register its patents. The form contains a question regarding A's 
business relationships with or in boycotted country X. A has no 
business relationships with X and knows or has reason to know that 
the information is sought for boycott reasons.
    A may not answer the question, because A would be furnishing 
information about its business relationships with or in a boycotted 
country.
    (xviii) U.S. company A is asked by boycotting country Y to 
certify that it is not the mother company, sister company, 
subsidiary, or branch of any blacklisted company, and that it is not 
in any way affiliated with any blacklisted company.
    A may not furnish the certification, because it is information 
about whether A has a business relationship with another person who 
is known or believed to be restricted from having any business 
relationship with or in a boycotting country. This interpretation 
became effective on June 22, 1978.

    (e) Information concerning association with charitable and 
fraternal organizations.

Prohibition Against Furnishing Information About Associations With 
Charitable and Fraternal Organizations

    (1) No United States person may furnish or knowingly agree to 
furnish information about whether any person is a member of, has made 
contributions to, or is otherwise associated with or involved in the 
activities of any charitable or fraternal organization which supports a 
boycotted country.
    (2) This prohibition shall apply whether:
    (i) The information concerns association with or involvement in any 
charitable or fraternal organization which (a) has, as one of its 
stated purposes, the support of a boycotted country through financial 
contributions or other means, or (b) undertakes, as a major 
organizational activity, to offer financial or other support to a 
boycotted country;
    (ii) The information is directly or indirectly requested or is 
furnished on the initiative of the United States person; or
    (iii) The information requested or volunteered concerns membership 
in, financial contributions to, or any other type of association with 
or involvement in the activities of such charitable or fraternal 
organization.
    (3) This prohibition does not prohibit the furnishing of normal 
business information in a commercial context as defined in paragraph 
(d) of this section.
    (4) This prohibition, like all others, applies only with respect to 
a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott.

Examples of Prohibition Against Furnishing Information About 
Associations With Charitable or Fraternal Organizations

    The following examples are intended to give guidance in 
determining the circumstances in which the furnishing of information 
concerning associations with charitable or fraternal organizations 
is prohibited. They are illustrative, not comprehensive.
    (i) U.S. engineering firm A receives an invitation to bid from 
boycotting country Y. The invitation includes a request to supply 
information concerning any association which A's officers have with 
charitable organization B, an organization which is known by A to 
contribute financial support to boycotted country X. A knows or has 
reason to know that the information is sought for boycott reasons.
    A may not furnish the information.
    (ii) U.S. construction company A, in an effort to establish 
business dealings with boycotting country Y, proposes to furnish 
information to Y showing that no members of its board of directors 
are in any way associated with charitable organizations which 
support boycotted country X. A's purpose is to avoid any possibility 
of its being blacklisted by Y.
    A may not furnish the information, because A's purpose in doing 
so is boycott-based. It makes no difference that no specific request 
for the information has been made by Y.
    (iii) A, a citizen of the United States, is applying for a 
teaching position in a school in boycotting country Y. In connection 
with his application, A furnishes a resume which happens to disclose 
his affiliation with charitable organizations. A does so completely 
without reference to Y's boycott and without knowledge of any 
boycott requirement of Y that pertains to A's application for 
employment.
    The furnishing of a resume by A is not a boycott-related 
furnishing of information about his association with charitable 
organizations which support boycotted country X.

    (f) Letters of credit.

Prohibition Against Implementing Letters of Credit Containing 
Prohibited Conditions or Requirements

    (1) No United States person may pay, honor, confirm, or otherwise 
implement a letter of credit which contains a condition or requirement 
compliance with which is prohibited by this part, nor shall any United 
States person, as a result of the application of this section, be 
obligated to pay, honor or otherwise implement such a letter of credit.
    (2) For purposes of this section, ``implementing'' a letter of 
credit includes:
    (i) Issuing or opening a letter of credit at the request of a 
customer;
    (ii) Honoring, by accepting as being a valid instrument of credit, 
any letter of credit;
    (iii) Paying, under a letter of credit, a draft or other demand for 
payment by the beneficiary;
    (iv) Confirming a letter of credit by agreeing to be responsible 
for payment to the beneficiary in response to a request by the issuer;
    (v) Negotiating a letter of credit by voluntarily purchasing a 
draft from a beneficiary and presenting such draft for reimbursement to 
the issuer or the confirmer of the letter of credit; and
    (vi) Taking any other action to implement a letter of credit.
    (3) In the standard international letter of credit transaction 
facilitating payment for the export of goods from the United States, a 
bank in a foreign country may be requested by its customer to issue a 
revocable or irrevocable letter of credit in favor of the United States 
exporter. The customer usually requires, and the letter of credit 
provides, that the issuing (or a confirming) bank will make payment to 
the beneficiary against the bank's receipt of the documentation 
specified in the letter of credit. Such documentation usually includes 
commercial and consular invoices, a bill of lading, and evidence of 
insurance, but it may also include other required certifications or 
documentary assurances such as the origin of the goods and information 
relating to the carrier or insurer of the shipment.
    Banks usually will not accept drafts for payment unless the 
documents submitted therewith comply with the terms and conditions of 
the letter of credit.
    (4) A United States person is not prohibited under this section 
from advising a beneficiary of the existence of a letter of credit in 
his favor, or from taking ministerial actions to dispose of a letter of 
credit which it is prohibited from implementing.
    (5) Compliance with this section shall provide an absolute defense 
in any action brought to compel payment of, honoring of, or other 
implementation of a letter of credit, or for damages resulting from 
failure to pay or otherwise honor or implement the letter of credit. 
This section shall not otherwise relieve any person from any 
obligations or other liabilities he may incur under other laws or 
regulations, except as may be explicitly provided in this section.

Letters of Credit to Which This Section Applies

    (6) This prohibition, like all others, applies only with respect to 
a United States person's activities taken with intent to comply with, 
further, or support an unsanctioned foreign

[[Page 12874]]
boycott. In addition, it applies only when the transaction to which the 
letter of credit applies is in United States commerce and the 
beneficiary is a United States person.

Implementation of Letters of Credit in the United States

    (7) A letter of credit implemented in the United States by a United 
States person located in the United States, including a permanent 
United States establishment of a foreign bank, will be presumed to 
apply to a transaction in United States commerce and to be in favor of 
a United States beneficiary where the letter of credit specifies a 
United States address for the beneficiary. These presumptions may be 
rebutted by facts which could reasonably lead the bank to conclude that 
the beneficiary is not a United States person or that the underlying 
transaction is not in United States commerce.
    (8) Where a letter of credit implemented in the United States by a 
United States person located in the United States does not specify a 
United States address for the beneficiary, the beneficiary will be 
presumed to be other than a United States person. This presumption may 
be rebutted by facts which could reasonably lead the bank to conclude 
that the beneficiary is a United States person despite the foreign 
address.

Implementation of Letters of Credit Outside the United States

    (9) A letter of credit implemented outside the United States by a 
United States person located outside the United States will be presumed 
to apply to a transaction in United States commerce and to be in favor 
of a United States beneficiary where the letter of credit specifies a 
United States address for the beneficiary and calls for documents 
indicating shipment from the United States or otherwise indicating that 
the goods are of United States origin. These presumptions may be 
rebutted by facts which could reasonably lead the bank to conclude that 
the beneficiary is not a United States person or that the underlying 
transaction is not in United States commerce.
    (10) Where a letter of credit implemented outside the United States 
by a United States person located outside the United States does not 
specify a United States address for the beneficiary, the beneficiary 
will be presumed to be other than a United States person. In addition, 
where such a letter of credit does not call for documents indicating 
shipment from the United States or otherwise indicating that the goods 
are of United States origin, the transaction to which it applies will 
be presumed to be outside United States commerce. The presumption that 
the beneficiary is other than a United States person may be rebutted by 
facts which could reasonably lead the bank to conclude that the 
beneficiary is a United States person. The presumption that the 
transaction to which the letter of credit applies is outside United 
States commerce may be rebutted by facts which could reasonably lead 
the bank to conclude that the underlying transaction is in United 
States commerce.

Examples of the Prohibition Against Implementing Letters of Credit

    The following examples are intended to give guidance in 
determining the circumstances in which this section applies to the 
implementation of a letter of credit and in which such 
implementation is prohibited. They are illustrative, not 
comprehensive.

Implementation of Letters of Credit in United States Commerce

    (i) A, a U.S. bank located in the United States, opens a letter 
of credit in the United States in favor of B, a foreign company 
located outside the United States. The letter of credit specifies a 
non-U.S. address for the beneficiary.
    The beneficiary is presumed to be other than a U.S. person, 
because it does not have a U.S. address. The presumption may be 
rebutted by facts showing that A could reasonably conclude that the 
beneficiary is a U.S. person despite the foreign address.
    (ii) A, a branch of a foreign bank located in the United States, 
opens a letter of credit in favor of B, a foreign company located 
outside the United States. The letter of credit specifies a non-U.S. 
address for the beneficiary.
    The beneficiary is presumed to be other than a U.S.person, 
because it does not have a U.S. address. The presumption may be 
rebutted by facts showing that A could reasonably conclude that the 
beneficiary is a U.S. person despite the foreign address.
    (iii) A, a U.S. bank branch located outside the United States, 
opens a letter of credit in favor of B, a person with a U.S. 
address. The letter of credit calls for documents indicating 
shipment of goods from the United States.
    The letter of credit is presumed to apply to a transaction in 
U.S. commerce and to be in favor of a U.S. beneficiary because the 
letter of credit specifies a U.S. address for the beneficiary and 
calls for documents indicating that the goods will be shipped from 
the United States. These presumptions may be rebutted by facts 
showing that A could reasonably conclude that the beneficiary is not 
a U.S. person or that the underlying transaction is not in U.S. 
commerce.
    (iv) A, a U.S. bank branch located outside the United States, 
opens a letter of credit which specifies a beneficiary, B, with an 
address outside the United States and calls for documents indicating 
that the goods are of U.S.-origin. A knows or has reason to know 
that although B has an address outside the United States, B is a 
U.S. person.
    The letter of credit is presumed to apply to a transaction in 
U.S. commerce, because the letter of credit calls for shipment of 
U.S.-origin goods. In addition, the letter of credit is presumed to 
be in favor of a beneficiary who is a U.S. person, because A knows 
or has reason to know that the beneficiary is a U.S. person despite 
the foreign address.
    (v) A, a U.S. bank branch located outside the United States, 
opens a letter of credit which specifies a beneficiary with a U.S. 
address. The letter of credit calls for documents indicating 
shipment of foreign-origin goods.
    The letter of credit is presumed to be in favor of a U.S. 
beneficiary but to apply to a transaction outside U.S. commerce, 
because it calls for documents indicating shipment of foreign-origin 
goods. The presumption of non-U.S. commerce may be rebutted by facts 
showing that A could reasonably conclude that the underlying 
transaction involves shipment of U.S.-origin goods or goods from the 
U.S.

Prohibition Against Implementing Letters of Credit

    (i) Boycotting country Y orders goods from U.S. company B. Y 
opens a letter of credit with foreign bank C in favor of B. The 
letter of credit specifies as a condition of payment that B certify 
that it does not do business with boycotted country X. Foreign bank 
C forwards the letter of credit it has opened to U.S. bank A for 
confirmation.
    A may not confirm or otherwise implement this letter of credit, 
because it contains a condition with which a U.S. person may not 
comply.
    (ii) Same as (i), except U.S. bank A desires to advise the 
beneficiary, U.S. company B, of the letter of credit.
    A may do so, because advising the beneficiary of the letter of 
credit (including the term which prevents A from implementing it) is 
not implementation of the letter of credit.
    (iii) Same as (i), except foreign bank C sends a telegram to 
U.S. bank A stating the major terms and conditions of the letter of 
credit. The telegram does not reflect the boycott provision. 
Subsequently, C mails to A documents setting forth the terms and 
conditions of the letter of credit, including the prohibited boycott 
condition.
    A may not further implement the letter of credit after it 
receives the documents, because they reflect the prohibited boycott 
condition in the letter of credit. A may advise the beneficiary and 
C of the existence of the letter of credit (including the boycott 
term), and may perform any essentially ministerial acts necessary to 
dispose of the letter of credit.
    (iv) Same as (iii), except that U.S. company B, based in part on 
information received from U.S. bank A, desires to obtain an 
amendment to the letter of credit which would eliminate or nullify 
the language in the letter of credit which prevents A from paying or 
otherwise implementing it.
    Either company B or bank A may undertake, and the other may 
cooperate and

[[Page 12875]]
assist in, this endeavor. A could then pay or otherwise implement 
the revised letter of credit, so long as the original prohibited 
language is of no force or effect.
    (v) Boycotting country Y requests a foreign bank in Y to open a 
letter of credit to effect payment for goods to be shipped by U.S. 
supplier B, the beneficiary of the letter of credit. The letter of 
credit contains prohibited boycott clauses. The foreign bank 
forwards a copy of the letter of credit to its branch office A, in 
the United States.
    A may advise the beneficiary but may not implement the letter of 
credit, because it contains prohibited boycott conditions.
    (vi) On November 1, 1977, boycotting country Y orders goods from 
U.S. company B. U.S. bank A is asked to implement, for the benefit 
of B, a letter of credit which contains a clause requiring 
documentation that the goods shipped are not of boycotted country X 
origin.
    A may implement the letter of credit, but after June 21, 1978, 
may accept only a positive certificate of origin as satisfactory 
documentation. (See Sec. 760.3(b) of this part on ``Import and 
Shipping Document Requirements.'')
    (vii) Same as (vi), except that U.S. company B has a contract 
with Y to supply a certain quantity of goods each month over a two-
year period. B's contract was entered into on May 15, 1977, and thus 
qualifies for grace period treatment until December 31, 1978. Each 
month, Y causes a letter of credit to be opened in favor of B in 
order to effect payment. Such letters of credit call for negative 
certificates of origin.
    A may accept negative certificates of origin in fulfillment of 
the terms of the letter of credit through December 31, 1978, because 
the underlying contract is entitled to a grace period through that 
date. (See Sec. 760.8 of this part on ``Grace Period.'')
    (viii) B is a foreign bank located outside the United States. B 
maintains an account with U.S. bank A, located in the United States. 
A letter of credit issued by B in favor of a U.S. beneficiary 
provides that any negotiating bank may obtain reimbursement from A 
by certifying that all the terms and conditions of the letter of 
credit have been met and then drawing against B's account. B 
notifies A by cable of the issuance of a letter of credit and the 
existence of reimbursement authorization; A does not receive a copy 
of the letter of credit.
    A may reimburse any negotiating bank, even when the underlying 
letter of credit contains a prohibited boycott condition, because A 
does not know or have reason to know that the letter of credit 
contains a prohibited boycott condition.
    (ix) Same as (viii), except that foreign bank B forwards a copy 
of the letter of credit to U.S. bank A, which then becomes aware of 
the prohibited boycott clause.
    A may not thereafter reimburse a negotiating bank or in any way 
further implement the letter of credit, because it knows of the 
prohibited boycott condition.
    (x) Boycotting country Y orders goods from U.S. exporter B and 
requests a foreign bank in Y to open a letter of credit in favor of 
B to cover the cost. The letter of credit contains a prohibited 
boycott clause. The foreign bank asks U.S. bank A to advise and 
confirm the letter of credit. Through inadvertence, A does not 
notice the prohibited clause and confirms the letter of credit. A 
thereafter notices the clause and then refuses to honor B's draft 
against the letter of credit. B sues bank A for payment.
    A has an absolute defense against the obligation to make payment 
under this letter of credit. (Note that paragraph (ix) of this 
section does not alter any other obligations or liabilities of the 
parties under appropriate law.)
    (xi) [Reserved]
    (xii) Boycotting country Y orders goods from U.S. company B. A 
letter of credit which contains a prohibited boycott clause is 
opened in favor of B by a foreign bank in Y. The foreign bank asks 
U.S. bank A to advise and confirm the letter of credit, which it 
forwards to A.
    A may advise B that it has received the letter of credit 
(including the boycott term), but may not confirm the letter of 
credit with the prohibited clause.
    (xiii) Same as (xii), except U.S. bank A fails to tell B that it 
cannot process the letter of credit. B requests payment.
    A may not pay. If the prohibited language is eliminated or 
nullified as the result of renegotiation, A may then pay or 
otherwise implement the revised letter of credit.
    (xiv) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to certify that he is 
not blacklisted.
    A may implement such a letter of credit, but it may not insist 
that the certification be furnished, because by so insisting it 
would be refusing to do business with a blacklisted person in 
compliance with a boycott.
    (xv) A, a U.S. bank located in the U.S. opens a letter of credit 
in favor of U.S. beneficiary B for B's sale of goods to boycotting 
country Y. The letter of credit contains no boycott conditions, but 
A knows that Y customarily requires the seller of goods to certify 
that it has dealt with no blacklisted supplier. A, therefore, 
instructs B that it will not make payment under the letter of credit 
unless B makes such a certification.
    A's action in requiring the certification from B constitutes 
action to require another person to refuse to do business with 
blacklisted persons.
    (xvi) A, a U.S. bank located in the U.S., opens a letter of 
credit in favor of U.S. beneficiary B for B's sale of goods to 
boycotting country Y. The letter of credit contains no boycott 
conditions, but A has actual knowledge that B has agreed to supply a 
certification to Y that it has not dealt with blacklisted firms, as 
a condition of receiving the letter of credit in its favor.
    A may not implement the letter of credit, because it knows that 
an implicit condition of the credit is a condition with which B may 
not legally comply.
    (xvii) Boycotting country Y orders goods from U.S. company B. Y 
opens a letter of credit with foreign bank C in favor of B. The 
letter of credit includes the statement, ``Do not negotiate with 
blacklisted banks.'' C forwards the letter of credit it has opened 
to U.S. bank A for confirmation.
    A may not confirm or otherwise implement this letter of credit, 
because it contains a condition with which a U.S. person may not 
comply.


Sec. 760.3  Exceptions to prohibitions.

    (a) Import requirements of a boycotting country.

Compliance With Import Requirements of a Boycotting Country

    (1) A United States person, in supplying goods or services to a 
boycotting country, or to a national or resident of a boycotting 
country, may comply or agree to comply with requirements of such 
boycotting country which prohibit the import of:
    (i) Goods or services from the boycotted country;
    (ii) Goods produced or services provided by any business concern 
organized under the laws of the boycotted country; or
    (iii) Goods produced or services provided by nationals or residents 
of the boycotted country.
    (2) A United States person may comply or agree to comply with such 
import requirements whether or not he has received a specific request 
to comply. By its terms, this exception applies only to transactions 
involving imports into a boycotting country. A United States person may 
not, under this exception, refuse on an across-the-board basis to do 
business with a boycotted country or a national or resident of a 
boycotted country.
    (3) In taking action within the scope of this exception, a United 
States person is limited in the types of boycott-related information he 
can supply. (See Sec. 760.2(d) of this part on ``Furnishing Information 
About Business Relationships with Boycotted Countries or Blacklisted 
Persons'' and paragraph (c) of this section on ``Import and Shipping 
Document Requirements.'')

Examples of Compliance With Import Requirements of a Boycotting Country

    The following examples are intended to give guidance in 
determining the circumstances in which compliance with the import 
requirements of a boycotting country is permissible. They are 
illustrative, not comprehensive.
    (i) A, a U.S. manufacturer, receives an order from boycotting 
country Y for its products, country X is boycotted by country Y, and 
the import laws of Y prohibit the importation of goods produced or 
manufactured in X. In filling this type of order, A would usually 
include some component parts produced in X.
    For the purpose of filling this order, A may substitute 
comparable component parts in place of parts produced in X, because 
the import laws of Y prohibit the importation of goods manufactured 
in X.
    (ii) Same as (i), except that A's contract with Y expressly 
provides that in fulfilling the contract A ``may not include parts 
or

[[Page 12876]]
components produced or manufactured in boycotted country X.''
    A may agree to and comply with this contract provision, because 
Y prohibits the importation of goods from X. (NOTE: After June 21, 
1978, A may not furnish negative certifications regarding the origin 
of components in response to import and shipping document 
requirements.)
    (iii) A, a U.S. building contractor, is awarded a contract to 
construct a plant in boycotting country Y. A accepts bids on goods 
required under the contract, and the lowest bid is made by B, a 
business concern organized under the laws of X, a country boycotted 
by Y. Y prohibits the import of goods produced by companies 
organized under the laws of X.
    For purposes of this contract, A may reject B's bid and accept 
another, because B's goods would be refused entry in to Y because of 
Y's boycott against X.
    (iv) Same as (iii), except that A also rejects the low bid by B 
for work on a construction project in country M, a country not 
boycotted by Y.
    This exception does not apply, because A's action is not taken 
in order to comply with Y's requirements prohibiting the import of 
products from boycotted country X.
    (v) A, a U.S. management consulting firm, contracts to provide 
services to boycotting country Y. Y requests that A not employ 
residents or nationals of boycotted country X to provide those 
services.
    A may agree, as a condition of the contract, not to have 
services furnished by nationals or residents of X, because 
importation of such services is prohibited by Y.
    (vi) A, a U.S. company, is negotiating a contract to supply 
machine tools to boycotting country Y. Y insists that the contract 
contain a provision whereby A agrees that none of the machine tools 
will be produced by any business concern owned by nationals of 
boycotted country X, even if the business concern is organized under 
the laws of a non-boycotted country.
    A may not agree to this provision, because it is a restriction 
on the import of goods produced by business concerns owned by 
nationals of a boycotted country even if the business concerns 
themselves are organized under the laws of a non-boycotted country.


    (b) Shipment of goods to a boycotting country.

Compliance With Requirements Regarding the Shipment of Goods to a 
Boycotting Country

    (1) A United States person, in shipping goods to a boycotting 
country, may comply or agree to comply with requirements of that 
country which prohibit the shipment of goods:
    (i) On a carrier of the boycotted country; or
    (ii) By a route other than that prescribed by the boycotting 
country or the recipient of the shipment.
    (2) A specific request that a United States person comply or agree 
to comply with requirements concerning the use of carriers of a 
boycotted country is not necessary if the United States person knows, 
or has reason to know, that the use of such carriers for shipping goods 
to the boycotting country is prohibited by requirements of the 
boycotting country. This exception applies whether a boycotting country 
or the purchaser of the shipment:
    (i) Explicitly states that the shipment should not pass through a 
port of the boycotted country; or
    (ii) Affirmatively describes a route of shipment that does not 
include a port in the boycotted country.
    (3) For purposes of this exception, the term carrier of a boycotted 
country means a carrier which flies the flag of a boycotted country or 
which is owned, chartered, leased, or operated by a boycotted country 
or by nationals or residents of a boycotted country.

Examples of Compliance With the Shipping Requirements of a Boycotting 
Country

    The following examples are intended to give guidance in 
determining the circumstances in which compliance with import and 
shipping document requirements of a boycotting country is 
permissible. They are illustrative, not comprehensive.
    (i) A is a U.S. exporter from whom boycotting country Y is 
importing goods. Y directs that the goods not pass through a port of 
boycotted country X.
    A may comply with Y's shipping instructions, because they 
pertain to the route of shipment of goods being shipped to Y.
    (ii) A, a U.S. fertilizer manufacturer, receives an order from 
boycotting country Y for fertilizer. Y specifies in the order that A 
may not ship the fertilizer on a carrier of boycotted country X.
    A may comply with this request, because it pertains to the 
carrier of a boycotted country.
    (iii) B, a resident of boycotting country Y, orders textile 
goods from A, a U.S. distributor, specifying that the shipment must 
not be made on a carrier owned or leased by nationals of boycotted 
country X and that the carrier must not pass through a port of 
country X enroute to Y.
    A may comply or agree to comply with these requests, because 
they pertain to the shipment of goods to Y on a carrier of a 
boycotted country and the route such shipment will take.
    (iv) Boycotting country Y orders goods from A, a U.S. retail 
merchant. The order specifies that the goods shipped by A ``may not 
be shipped on a carrier registered in or owned by boycotted country 
X.''
    A may agree to this contract provision, because it pertains to 
the carrier of a boycotted country.
    (v) Boycotting country Y orders goods from A, a U.S. 
pharmaceutical company, and requests that the shipment not pass 
through a port of country P, which is not a country boycotted by Y.
    This exception does not apply in a non-boycotting situation. A 
may comply with the shipping instructions of Y, because in doing so 
he would not violate any prohibition of this part.

    (c) Import and shipping document requirements.

Compliance With Import and Shipping Document Requirements of a 
Boycotting Country

    (1) A United States person, in shipping goods to a boycotting 
country, may comply or agree to comply with import and shipping 
document requirements of that country, with respect to:
    (i) The country or origin of the goods;
    (ii) The name of the carrier;
    (iii) The route of the shipment;
    (iv) The name of the supplier of the shipment; and
    (v) The name of the provider of other services.
    (2) After June 21, 1978, all such information must be stated in 
positive, non-blacklisting, non-exclusionary terms except for 
information with respect to the names of carriers or routes of 
shipment, which may continue to be stated in negative terms in 
conjunction with shipments to a boycotting country, in order to comply 
with precautionary requirements protecting against war risks or 
confiscation. The purpose of this delayed effective date, which is 
provided by section 4A(a)(2)(B) of the Export Administration Act of 
1969, as amended, is to allow time for persons to adjust their 
practices to the use of import and shipping documentation stated in 
positive rather than negative terms.

Examples of Compliance With Import and Shipping Document Requirements

    The following examples are intended to give guidance in 
determining the circumstances in which compliance with the import 
requirements of a boycotting country is permissible. They are 
illustrative, not comprehensive.
    (i) Boycotting country Y contracts with A, a U.S. petroleum 
equipment manufacturer, for certain equipment. Y requires that goods 
being imported into Y must be accompanied by a certification that 
the goods being supplied did not originate in boycotted country X.
    Until June 21, 1978, A may comply with such import requirements 
in the terms requested. After June 21, 1978, A may not supply such a 
certification in negative terms but may identify instead the country 
of origin of the goods in positive terms only.
    (ii) Same as (i), except that Y requires that the shipping 
documentation accompanying the goods specify the country of origin 
of the goods.
    A may furnish the information.
    (iii) On February 1, 1978, A, a U.S. distributor, enters into a 
two-year contract with boycotting country Y to make monthly 
shipments of goods to Y. A clause in the contract requires that all 
shipments into the

[[Page 12877]]
country must be accompanied by a certification that the goods did 
not originate in X, a country boycotted by Y.
    A may supply such a negative certification until June 21, 1978. 
After that date, A may state the origin of the goods on the shipping 
or import documents in positive terms only.
    (iv) A, a U.S. apparel manufacturer, has contracted to sell 
certain of its products to B, a national of boycotting country Y. 
The form that must be submitted to customs officials of Y requires 
the shipper to certify that the goods contained in the shipment have 
not been supplied by ``blacklisted'' persons.
    Until June 21, 1978, A may furnish the information required in 
the terms requested. After June 21, 1978, A may not furnish the 
information in negative terms but may certify, in positive terms 
only, the name of the supplier of the goods.
    (v) Same as (iv), except the customs form requires certification 
that the insurer and freight forwarder used are not ``blacklisted.''
    Until June 21, 1978, A may furnish the information required in 
the terms requested. After June 21, 1978, A may not comply with the 
request but may supply a certification stating, in positive terms 
only, the names of the insurer and freight forwarder.
    (vi) A, a U.S. petrochemical manufacturer, executes a sales 
contract with B, a resident of boycotting country Y. A provision of 
A's contract with B requires that the bill of lading and other 
shipping documents contain certifications that the goods have not 
been shipped on a ``blacklisted'' carrier.
    Until June 21, 1978, A may furnish the information required in 
the terms requested. After June 21, 1978, A may not agree to supply 
a certification that the carrier is not ``blacklisted'' but may 
certify the name of the carrier in positive terms only.
    (vii) Same as (vi), except that the contract requires 
certification that the goods will not be shipped on a carrier which 
flies the flag of, or is owned, chartered, leased, or operated by 
boycotted country X, or by nationals or residents of X.
    Such a certification, which is a reasonable requirement to 
protect against war risks or confiscation, may be furnished at any 
time.
    (viii) Same as (vi), except that the contract requires that the 
shipping documents certify the name of the carrier being used.
    A may, at any time, supply or agree to supply the requested 
documentation regarding the name of the carrier, either in negative 
or positive terms.
    (ix) Same as (vi), except that the contract requires a 
certification that the carrier will not call at a port in boycotted 
country X before making delivery in Y.
    Such a certification, which is a reasonable requirement to 
protect against war risks or confiscation, may be furnished at any 
time.
    (x) Same as (vi), except that the contract requires that the 
shipping documents indicate the name of the insurer and freight 
forwarder.
    A may comply at any time, because the statement is not required 
to be made in negative or blacklisting terms.
    (xi) A, a U.S. exporter, is negotiating a contract to sell 
bicycles to boycotting country Y. Y insists that A agree to certify 
that the goods will not be shipped on a vessel which has ever called 
at a port in boycotted country X.
    As distinguished from a certification that goods will not be 
shipped on a vessel which will call enroute at a port of boycotted 
country X, such a certification is not a reasonable requirement to 
protect against war risks or confiscation, and, hence, may not be 
supplied.
    (xii) Same as (xi), except that Y insists that A agree to 
certify that the goods will not be shipped on a carrier that is 
ineligible to enter Y's waters.
    Such a certification, which is not a reasonable requirement to 
protect against war risks or confiscation may not be supplied.
    (xiii) A, a U.S. exporter, sells some of its products to 
boycotting country Y. A foreign bank located in Y opens a letter of 
credit to pay for the goods. The letter of credit requires that A 
supply documentation certifying that ``the goods are not 
manufactured in boycotted country X.''
    A may make the required certification until June 21, 1978, 
because import and shipping document requirements of a boycotting 
country may be reflected in letters of credit.


    (d) Compliance with unilateral selection.

Compliance With Unilateral and Specific Selection

    (1) A United States person may comply or agree to comply in the 
normal course of business with the unilateral and specific selection by 
a boycotting country, a national of a boycotting country, or a resident 
of a boycotting country (including a United States person who is a bona 
fide resident of a boycotting country) of carriers, insurers, suppliers 
of services to be performed within the boycotting country, or specific 
goods, provided that with respect to services, it is necessary and 
customary that an insignificant part of the services be performed 
within the boycotting country, and with respect to goods, the items, in 
the normal course of business, are identifiable as to their source or 
origin at the time of their entry into the boycotting country by 
uniqueness of design or appearance or trademark, trade name, or other 
identification normally on the items themselves, including their 
packaging.
    (2) This exception pertains to what is permissible for a United 
States person who is the recipient of a unilateral and specific 
selection of goods or services to be furnished by a third person. It 
does not pertain to whether the act of making such a selection is 
permitted; that question is covered, with respect to United States 
persons, in paragraph (g) of this section on ``Compliance with Local 
Law.'' Nor does it pertain to the United States person who is the 
recipient of an order to supply its own goods or services. Nothing in 
this part prohibits or restricts a United States person from filling an 
order himself, even if he is selected by the buyer on a boycott basis 
(e.g., because he is not blacklisted), so long as he does not himself 
take any action prohibited by this part.

Unilateral and Specific Character of the Selection

    (3) In order for this exception to apply, the selection with which 
a United States person wishes to comply must be unilateral and 
specific.
    (4) A ``specific'' selection is one which is stated in the 
affirmative and which specifies a particular supplier of goods or 
services.
    (5) A ``unilateral'' selection is one in which the discretion in 
making the selection is exercised by the boycotting country buyer. If 
the United States person who receives a unilateral selection has 
provided the buyer with any boycott-based assistance (including 
information for purposes of helping the buyer select someone on a 
boycott basis), then the buyer's selection is not unilateral, and 
compliance with that selection by a United States person does not come 
within this exception.
    (6) The provision of so-called ``pre-selection'' or ``pre-award'' 
services, such as providing lists of qualified suppliers, 
subcontractors, or bidders, does not, in and of itself, destroy the 
unilateral character of a selection, provided such services are not 
boycott-based. Lists of qualified suppliers, for example, must not 
exclude anyone because he is blacklisted. Moreover, such services must 
be of the type customarily provided in similar transactions by the firm 
(or industry of which the firm is a part) as measured by the practice 
in non-boycotting as well as boycotting countries. If such services are 
not customarily provided in similar transactions or such services are 
provided in such a way as to exclude blacklisted persons from 
participating in a transaction or diminish their opportunity for such 
participation, then the services may not be provided without destroying 
the unilateral character of any subsequent selection.

Selection To Be Made by Boycotting Country Resident

    (7) In order for this exception to be available, the unilateral and 
specific selection must have been made by a boycotting country, or by a 
national or resident of a boycotting country. Such a resident may be a 
United States person. For purposes of this exception, a United States 
person will be considered a resident of a boycotting country only if he 
is a bona fide resident. A United States person may be a bona fide

[[Page 12878]]
resident of a boycotting country even if such person's residency is 
temporary.
    (8) Factors that will be considered in determining whether a United 
States person is a bona fide resident of a boycotting country include:
    (i) Physical presence in the country;
    (ii) Whether residence is needed for legitimate business reasons;
    (iii) Continuity of the residency;
    (iv) Intent to maintain the residency;
    (v) Prior residence in the country;
    (vi) Size and nature of presence in the country;
    (vii) Whether the person is registered to do business or 
incorporated in the country;
    (viii) Whether the person has a valid work visa; and
    (ix) Whether the person has a similar presence in both boycotting 
and non-boycotting foreign countries in connection with similar 
business activities.


    Note to paragraph (d)(8) of this section: No one of the factors 
is dispositive. All the circumstances will be examined closely to 
ascertain whether there is, in fact, a bona fide residency. 
Residency established solely for purposes of avoidance of the 
application of this part, unrelated to legitimate business needs, 
does not constitute bona fide residency.


    (9) The boycotting country resident must be the one actually making 
the selection. If a selection is made by a non-resident agent, parent, 
subsidiary, affiliate, home office or branch office of a boycotting 
country resident, it is not a selection by a resident within the 
meaning of this exception.
    (10) A selection made solely by a bona fide resident and merely 
transmitted by another person to a United States person for execution 
is a selection by a bona fide resident within the meaning of this 
exception.

Duty of Inquiry

    (11) If a United States person receives, from another person 
located in the United States, what may be a unilateral selection by a 
boycotting country customer, and knows or has reason to know that the 
selection is made for boycott reasons, he has a duty to inquire of the 
transmitting person to determine who actually made the selection. If he 
knows or has reason to know that the selection was made by other than a 
boycotting country, or a national or resident of a boycotting country, 
he may not comply. A course or pattern of conduct which a United States 
person recognizes or should recognize as consistent with boycott 
restrictions will create a duty to inquire.
    (12) If the United States person does not know or have reason to 
know that the selection it receives is boycott-based, its compliance 
with such a selection does not offend any prohibition and this 
exception is not needed.

Selection of Services

    (13) This exception applies only to compliance with selections of 
certain types of suppliers of services-carriers, insurers, and 
suppliers of services to be performed ``within the boycotting 
country.'' Services to be performed wholly within the United States or 
wholly within any country other than the boycotting country are not 
covered.
    (14) For purposes of this part, services are to be performed 
``within the boycotting country'' only if they are of a type which 
would customarily be performed by suppliers of those services within 
the country of the recipient of those services, and if the part of the 
services performed within the boycotting country is a necessary and not 
insignificant part of the total services performed.
    (15) What is ``customary and necessary'' for these purposes depends 
on the usual practice of the supplier of the services (or the industry 
of which he is a part) as measured by the practice in non-boycotting as 
well as boycotting countries, except where such practices are 
instituted to accommodate this part.

Selection of Goods

    (16) This exception applies only to compliance with selections of 
certain types of goods--goods that, in the normal course of business, 
are identifiable as to their source or origin at the time of their 
entry into the boycotting country. The definition of ``specifically 
identifiable goods'' is the same under this section as it is in 
paragraph (g) of this section on ``Compliance with Local Law.''
    (17) Goods ``specifically identifiable'' in the normal course of 
business are those items which at the time of their entry into a 
boycotting country are identifiable as to source or origin by 
uniqueness of design or appearance; or trademark, trade name, or other 
identification normally on the items themselves, including their 
packaging. Goods are ``specifically identifiable'' in the normal course 
of business if their source or origin is ascertainable by inspection of 
the items themselves, including their packaging, regardless of whether 
inspection takes place. Goods are not considered to be ``specifically 
identifiable'' in the normal course of business if a trademark, trade 
name, or other form of identification not normally present is added to 
the items themselves, including their packaging, to accommodate this 
part.

General

    (18) If a unilateral selection meets the conditions described in 
paragraph (d) of this section, the United States person receiving the 
unilateral selection may comply or agree to comply, even if he knows or 
has reason to know that the selection was boycott-based. However, no 
United States person may comply or agree to comply with any unilateral 
selection if he knows or has reason to know that the purpose of the 
selection is to effect discrimination against any United States person 
on the basis of race, religion, sex, or national origin.

Examples of Compliance With a Unilateral Selection

    The following examples are intended to give guidance in 
determining what constitutes a unilateral selection and the 
circumstances in which compliance with such a selection is 
permissible. They are illustrative, not comprehensive.

Specific and Unilateral Selection

    (i) A, a U.S. manufacturer of road-grading equipment, is asked 
by boycotting country Y to ship goods to Y on U.S. vessel B, a 
carrier which is not blacklisted by Y. A knows or has reason to know 
that Y's selection of B is boycott-based.
    A may comply with Y's request, or may agree to comply as a 
condition of the contract, because the selection is specific and 
unilateral.
    (ii) A, a U.S. contractor building an industrial facility in 
boycotting country Y is asked by B, a resident of Y, to use C as the 
supplier of air conditioning equipment to be used in the facility. C 
is not blacklisted by country Y. A knows or has reason to know that 
B's request is boycott-based.
    A may comply with B's request, or may agree to comply as a 
condition of the contract, because the selection of C is specific 
and unilateral.
    (iii) A, a U.S. manufacturer of automotive equipment, is asked 
by boycotting country Y not to ship its goods to Y on U.S. carriers, 
B, C, or D. Carriers B, C, and D are blacklisted by boycotting 
country Y. A knows or has reason to know that Y's request is 
boycott-based.
    A may not comply or agree to comply with Y's request, because no 
specific selection of any particular carrier has been made.
    (iv) A, a U.S. exporter shipping goods ordered by boycotting 
country Y, is provided by Y with a list of eligible U.S. insurers 
from which A may choose in insuring the shipment of its goods. A 
knows or has reason to know that the list was compiled on a boycott 
basis.
    A may not comply or agree to comply with Y's request that A 
choose from among the eligible insurers, because no specific 
selection of any particular insurer has been made.
    (v) A, a U.S. aircraft manufacturer, is negotiating to sell 
aircraft to boycotting country Y. During the negotiations, Y asks A

[[Page 12879]]
to identify the company which normally manufactures the engines for 
the aircraft. A responds that they are normally manufactured by U.S. 
engine manufacturer B. B is blacklisted by Y. In making the 
purchase, Y specifies that the engines for the aircraft should be 
supplied by U.S. engine manufacturer C.
    A may comply or agree to comply with Y's selection of C, because 
Y's selection is unilateral and specific.
    (vi) A, a U.S. construction firm, is retained by an agency of 
boycotting country Y to build a pipeline. Y requests A to suggest 
qualified engineering firms to be used on-site in the construction 
of the pipeline. It is customary for A, regardless of where it 
conducts its operations, to identify qualified engineering firms to 
its customers so that its customers may make their own selection of 
the firm to be engaged. Choice of engineering firm is customarily a 
prerogative of the customer. A provides a list of five engineering 
firms, B-F, excluding no firm because it may be blacklisted, and 
then confers with and gives its recommendations to Y. A recommends 
C, because C is the best qualified. Y then selects B, because C is 
blacklisted.
    A may comply with Y's selection of B, because the boycott-based 
decision is made by Y and is unilateral and specific. Since A's pre-
award services are of the kind customarily provided in these 
situations, and since they are provided without reference to the 
boycott, they do not destroy the unilateral character of Y's 
selection.
    (vii) A, a U.S. aircraft manufacturer, has an order to supply a 
certain number of planes to boycotting country Y. In connection with 
the order, Y asks A to supply it with a list of qualified aircraft 
tire manufacturers so that Y can select the tires to be placed on 
the planes. This is a highly unusual request, since, in A's 
worldwide business operations, choice of tires is customarily made 
by the manufacturer, not the customer. Nonetheless, A supplies a 
list of tire manufacturers, B, C, D, and E. Y chooses tire 
manufacturer B because B is not blacklisted. Had A, as is customary, 
selected the tires, company C would have been chosen. C happens to 
be blacklisted, and A knows that C's blacklist status was the reason 
for Y's selection of B.
    A's provision of a list of tire manufacturers for Y to choose 
from destroys the unilateral character of Y's selection, because 
such a pre-selection service is not customary in A's worldwide 
business operations.
    (viii) A, a U.S. aircraft manufacturer, receives an order from 
U.S. company C, which is located in the United States, for the sale 
of aircraft to company D, a U.S. affiliate of C. D is a bona fide 
resident of boycotting country Y. C instructs A that ``in order to 
avoid boycott problems,'' A must use engines that are manufactured 
by company B, a company that is not blacklisted by Y. Engines built 
by B are unique in design and also bear B's trade name.
    Since A has reason to know that the selection is boycott-based, 
he must inquire of C whether the selection was in fact made by D. If 
C informs A that the selection was made by D, A may comply.
    (ix) Same as (viii), except that C initially states that the 
designation was unilaterally and specifically made by D.
    A may accept C's statement without further investigation and may 
comply with the selection, because C merely transmitted D's 
unilateral and specific selection.
    (x) Same as (ix), except that C informs A that it, C, has 
selected B on behalf of or as an agent of its affiliated company 
resident in the boycotting country.
    A may not comply with this selection, because the decision was 
not made by a resident of the boycotting country.
    (xi) A, a U.S. management consulting firm, is advising 
boycotting country Y on the selection of a contracting firm to 
construct a plant for the manufacture of agricultural chemicals. As 
is customary in its business, A compiles a list of potential 
contractors on the basis of its evaluation of the capabilities of 
the respective candidates to perform the job. A has knowledge that 
company B is blacklisted, but provides Y with the names of companies 
B, C, D, and E, listing them in order of their qualifications. Y 
instructs A to negotiate with C.
    A may comply with Y's instruction, because Y's selection is 
unilateral and specific.
    (xii) A, a U.S. exporter, is asked by boycotting country Y not 
to ship goods on carriers B, C, or D, which are owned by nationals 
of and are registered in country P, a country not boycotted by Y.
    A may comply or agree to comply with Y's request even though the 
selection is not specific, because A does not know or have reason to 
know that the request is boycott-based.

(Note: In example (xii), A has violated no prohibition, because it 
does not know or have reason to know that Y's instruction is 
boycott-based. Therefore, A could not act with the requisite intent 
to comply with the boycott.)

    (xiii) A, a U.S. construction company, receives a contract to 
construct a hotel in boycotting country Y. As part of the contract, 
A is required to furnish Y with lists of qualified suppliers of 
various specifically identifiable items. A compiles lists of various 
qualified suppliers wholly without reference to the boycott, and 
thereafter Y instructs A to negotiate with, enter into contracts 
with, and arrange for delivery from each of the suppliers which Y 
designates. A knows that Y's choices are made on a boycott basis.
    A may comply with Y's selections and carry out these post-award 
services for Y, because Y's selections were unilateral and specific 
and A's pre-award services were provided without reference to Y's 
boycott.

Examples of Boycotting Country Buyer

(The factors in determining whether a United States person is a 
``bona fide resident'' of a boycotting country are the same as in 
paragraph (g) of this section on ``Compliance with Local Law.'' See 
also the examples in that section.)

    (i) A, a U.S. exporter, is asked by B, a U.S. person who is a 
bona fide resident of boycotting country Y, to ship goods on U.S. 
carrier C. C is not blacklisted by Y, and A knows that B has chosen 
on a boycott basis in order to comply with Y's boycott laws.
    A may comply or agree to comply with B's request, because B is a 
bona fide resident of Y.
    (ii) A is a U.S. computer company whose subsidiary, B, is a bona 
fide resident of boycotting country Y. A receives an order from B 
for specific, identifiable products manufactured by company C in 
connection with a computer which B is installing in Y.
    A may comply or agree to comply with B's unilateral and specific 
selection, so long as the discretion was in fact exercised by B, not 
A.

(Note: Unilateral selection transactions involving related United 
States persons will be scrutinized carefully to ensure that the 
selection was in fact made by the bona fide resident of the 
boycotting country.)

    (iii) A, a U.S. engineering firm, has chief engineer B as its 
resident engineer on a dam construction site in boycotting country 
Y. B's presence at the site is necessary in order to ensure proper 
supervision of the project. In order to comply with local law, B 
selects equipment supplier C rather than D, who is blacklisted, and 
directs A to purchase certain specific equipment from C for use in 
the project.
    A may comply with this unilateral selection, because the 
decision was made by a bona fide resident of Y.

(As noted above, unilateral selections involving related United 
States persons will be scrutinized carefully to ensure that the 
selection was in fact made by the bona fide resident of the 
boycotting country.)

    (iv) B, a branch of U.S. bank A, is located in boycotting 
country Y. B is in need of office supplies and asks the home office 
in New York to make the necessary purchases. A contacts C, a U.S. 
company in the office supply business, and instructs C to purchase 
various items from certain specific companies and ship them directly 
to B. In order to avoid any difficulties for B with respect to Y's 
boycott laws, A is careful to specify only non-blacklisted companies 
or suppliers. C knows that that was A's purpose. C may not comply 
with A's instruction, because the selection of suppliers was not 
made by a resident of a boycotting country.
    (v) Same as (iv), except that A has given standing instructions 
to B that whenever it needs office supplies, it should specify 
certain suppliers designated by A. To avoid running afoul of Y's 
boycott laws, A's designations consist exclusively of non-
blacklisted firms. A receives an order from B with the suppliers 
designated in accordance with A's instructions.
    A may not comply with B's selection, because the selection was 
not in fact made by a bona fide resident of the boycotting country, 
but by a person located in the United States.

Examples of Suppliers of Services

    (i) A, a U.S. manufacturer, is asked by boycotting country Y to 
ship goods to Y on U.S. vessel B, a carrier which is not blacklisted 
by Y.
    A may comply or agree to comply with Y's request, because 
compliance with the unilateral and specific selection of carriers is 
expressly permitted under this exception.

[[Page 12880]]

    (ii) A, a U.S. exporter shipping goods ordered by C, a national 
of boycotting country Y, is asked by C to insure the shipment 
through U.S. insurer B.
    A may comply or agree to comply with C's request, because 
compliance with the unilateral and specific selection of an insurer 
is expressly permitted under this exception.
    (iii) A, a U.S. construction company, is hired by C, an agency 
of the government of boycotting country Y, to build a power plant in 
Y. C specifies that A should subcontract the foundation work to U.S. 
contractor B. Part of the foundation design work will be done by B 
in the United States.
    A may comply or agree to comply with Y's designation, because a 
necessary and not insignificant part of B's services are to be 
performed within the boycotting country, and such services are 
customarily performed on-site.
    (iv) A, a U.S. contractor, is engaged by boycotting country Y to 
build a power plant. Y specifies that U.S. architectural firm B 
should be retained by A to design the plant. In order to design the 
plant, it is essential that B's personnel visit and become familiar 
with the site, although the bulk of the design and drawing work will 
be done in the United States.
    A may comply or agree to comply with Y's unilateral and specific 
selection of architectural firm B, because a necessary and not 
insignificant part of B's services are to be performed within Y, and 
such on-site work is customarily involved in the provision of 
architectural services. The fact that the bulk of the actual work 
may be performed in the United States is irrelevant since the part 
to be performed within Y is necessary to B's effective performance.
    (v) Same as (iv), except that Y specifies that the turbine for 
the power plant should be designed by U.S. engineer C. It is neither 
customary nor necessary for C to visit the site in order to do any 
of his work, but C has informed A that he would probably want to 
visit the site in Y if he were selected for the job.
    A may not comply or agree to comply with Y's request, because, 
in the normal course of business, it is neither customary nor 
necessary for engineer C's services to be performed in Y.
    (vi) A, a U.S. aircraft manufacturer, receives a contract from 
boycotting country Y to manufacture jet engines for Y's use. Y 
specifies that the engines should be designed by U.S. industrial 
engineering firm B.
    A may not comply or agree to comply with Y's request, because, 
in the normal course of business, the services will not be performed 
in Y.
    (vii) U.S. company A has a contract to supply specially designed 
road graders to boycotting country Y. Y has instructed A that it 
should engage engineering firm B in the design work rather than 
engineering firm C, which A normally uses, because C is blacklisted. 
When A contacts B, B informs A that one of B's personnel customarily 
visits the location in which any equipment B designs is used after 
it is in use, in order to determine how good a design job B has 
done. Such visits are necessary from B's point of view to provide a 
check on the quality of its work, and they are necessary from Y's 
point of view because they make it possible for Y to discuss 
possible design changes should deficiencies be detected.
    A may not comply with Y's selection of B, because the services 
which B would perform in Y are an insignificant part of the total 
services to be performed by B.

Examples of Specifically Identifiable Goods

(The test of what constitutes ``specifically identifiable goods'' 
under this exception also applies to the term ``specifically 
identifiable goods'' as used in paragraph (g) of this section on 
``Compliance with Local Law.'')

    (i) A, a U.S. contractor, is constructing an apartment complex, 
on a turnkey basis, for boycotting country Y. Y instructs A to use 
only kitchen appliances manufactured by U.S. company B in completing 
the project. The appliances normally bear the manufacturer's name 
and trademark.
    A may comply with Y's selection of B, because Y's unilateral and 
specific selection is of goods identifiable as to source or origin 
in the normal course of business at the time of their entry into Y.
    (ii) Same as (i), except that Y directs A to use lumber 
manufactured only by U.S. company C. In the normal course of 
business, C neither stamps its name on the lumber nor identifies 
itself as the manufacturer on the packaging. In addition, normal 
export packaging does not identify the manufacturer.
    A may not comply with Y's selection, because the goods selected 
are not identifiable by source or origin in the normal course of 
business at the time of their entry into Y.
    (iii) B, a U.S. contractor who is a bona fide resident of 
boycotting country Y, is engaged in building roads. B retains the 
services of A, a U.S. engineering firm, to assist it in procuring 
construction equipment. B directs A to purchase road graders only 
from manufacturer C because other road grader manufacturers which A 
might use are blacklisted. C's road graders normally bear C's 
insignia.
    A may comply with B's selection of C, because the goods selected 
are identifiable by source or origin in the normal course of 
business at the time of their entry into Y.
    (iv) A, a U.S. company, manufactures computer-operated machine 
tools. The computers are mounted on a separate bracket on the side 
of the equipment and are readily identifiable by brand name 
imprinted on the equipment. There are five or six U.S. manufacturers 
of such computers which will function interchangeably to operate the 
machine tools manufactured by A. B, a resident of boycotting country 
Y, contracts to buy the machine tools manufactured by A on the 
condition that A incorporate, as the computer drive, a computer 
manufactured by U.S. company C. B's designation of C is made to 
avoid boycott problems which could be caused if computers 
manufactured by some other company were used.
    A may comply with B's designation of C, because the goods 
selected are identifiable by source or origin in the normal course 
of business at the time of their entry into Y.
    (v) A, a U.S. wholesaler of electronic equipment, receives an 
order from B, a U.S. manufacturer of radio equipment, who is a bona 
fide resident of boycotting country Y. B orders a variety of 
electrical components and specifies that all transistors must be 
purchased from company C, which is not blacklisted by Y. The 
transistors requested by B do not normally bear the name of the 
manufacturer; however, they are typically shipped in cartons, and 
C's name and logo appear on the cartons.
    A may comply with B's selection, because the goods selected by B 
are identifiable as to source or origin in the normal course of 
business at the time of their entry into Y by virtue of the 
containers or packaging used.
    (vi) A, a U.S. computer manufacturer, receives an order for a 
computer from B, a university in boycotting country Y. B specifies 
that certain integrated circuits incorporated in the computer must 
be supplied by U.S. electronics company C. These circuits are 
incorporated into the computer and are not visible without 
disassembling the computer.
    A may not comply or agree to comply with B's specific selection 
of these components, because they are not identifiable as to their 
source or origin in the normal course of business at the time of 
their entry into Y.
    (vii) A, a U.S. clothing manufacturer, receives an order for 
shirts from B, a retailer resident in boycotting country Y. B 
specifies that the shirts are to be manufactured from cotton 
produced by U.S. farming cooperative C. Such shirts will not 
identify C or the source of the cotton.
    A may not comply or agree to comply with B's designation, 
because the cotton is not identifiable as to source or origin in the 
normal course of business at the time of entry into Y.
    (viii) A, a U.S. contractor, is retained by B, a construction 
firm located in and wholly-owned by boycotting country Y, to assist 
B in procuring construction materials. B directs A to purchase a 
range of materials, including hardware, tools, and trucks, all of 
which bear the name of the manufacturer stamped on the item. In 
addition, B directs A to purchase steel beams manufactured by U.S. 
company C. The name of manufacturer C normally does not appear on 
the steel itself or on its export packaging.
    A may comply with B's selection of the hardware, tools, and 
trucks, because they are identifiable as to source or origin in the 
normal course of business at the time of entry into Y. A may not 
comply with B's selection of steel beams, because the goods are not 
identifiable as to source or origin by trade name, trademark, 
uniqueness or packaging at the time of their entry into Y.

Examples of Discrimination on Basis of Race, Religion, Sex, or National 
Origin

    (i) A, a U.S. paper manufacturer, is asked by boycotting country 
Y to ship goods to Y on U.S. vessel B. Y states that the reason for 
its choice of B is that, unlike U.S. vessel C, B is not owned by 
persons of a particular faith.
    A may not comply or agree to comply with Y's request, because A 
has reason to know that the purpose of the selection is to effect 
religious discrimination against a United States person.


[[Page 12881]]

    (e) Shipment and transshipment of exports pursuant to a boycotting 
country's requirements.

Compliance With a Boycotting Country's Requirements Regarding Shipment 
and Transshipment of Exports

    (1) A United States person may comply or agree to comply with the 
export requirements of a boycotting country with respect to shipments 
or transshipments of exports to:
    (i) A boycotted country;
    (ii) Any business concern of a boycotted country;
    (iii) Any business concern organized under the laws of a boycotted 
country; or
    (iv) Any national or resident of a boycotted country.
    (2) This exception permits compliance with restrictions which a 
boycotting country may place on direct exports to a boycotted country; 
on indirect exports to a boycotted country (i.e., those that pass via 
third parties); and on exports to residents, nationals, or business 
concerns of, or organized under the laws of, a boycotted country, 
including those located in third countries.
    (3) This exception also permits compliance with restrictions which 
a boycotting country may place on the route of export shipments when 
the restrictions are reasonably related to preventing the export 
shipments from coming into contact with or under the jurisdiction of 
the boycotted country. This exception applies whether a boycotting 
country or the vendor of the shipment:
    (i) Explicitly states that the shipment should not pass through the 
boycotted country enroute to its final destination; or
    (ii) Affirmatively describes a route of shipment that does not 
include the boycotted country.
    (4) A United States person may not, under this exception, refuse on 
an across-the-board basis to do business with a boycotted country or a 
national or resident of a boycotted country.

Examples of Compliance With a Boycotting Country's Requirements 
Regarding Shipment or Transshipment of Exports

    The following examples are intended to give guidance in 
determining the circumstances in which compliance with the export 
requirements of a boycotting country is permissible. They are 
illustrative, not comprehensive.
    (i) A, a U.S. petroleum company, exports petroleum products to 
20 countries, including the United States, from boycotting country 
Y. Country Y's export regulations require that products not be 
exported from Y to boycotted country X.
    A may agree to and comply with Y's regulations with respect to 
the export of goods from Y to X.
    (ii) Same as (i), except that Y's export regulations require 
that goods not be exported from boycotting country Y to any business 
concern organized under the laws of boycotted country X.
    A may agree to and comply with Y's regulations with respect to 
the export of goods from Y to a business concern organized under the 
laws of X, even if such concern is located in a country not involved 
in Y's boycott of X.
    (iii) B, the operator of a storage facility in country M, 
contracts with A, a U.S. carrier, for the shipment of certain goods 
manufactured in boycotting country Y. A's contract with B contains a 
provision stating that the goods to be transported may not be 
shipped or transshipped to boycotted country X. B informs A that 
this provision is a requirement of C, the manufacturer of goods who 
is a resident of boycotting country Y. Country M is not boycotted by 
Y.
    A may agree to and comply with this provision, because such a 
provision is required by the export regulations of boycotting 
country Y in order to prevent shipment of Y-origin goods to a 
country boycotted by Y.
    (iv) A, a U.S. petroleum refiner located in the United States, 
purchases crude oil from boycotting country Y. A has a branch 
operation in boycotted country X. Y requires, as a condition of 
sale, that A agree not to ship or transship the crude oil or 
products refined in Y to A's branch in X.
    A may agree to and comply with these requirements, because they 
are export requirements of Y designed to prevent Y-origin products 
from being shipped to a boycotted country.
    (v) A, a U.S. company, has a petrochemical plant in boycotting 
country Y. As a condition of securing an export license from Y, A 
must agree that it will not ship or permit transshipment of any of 
its output from the plant in Y to any companies which Y lists as 
being owned by nationals of boycotted country X.
    A may agree to this condition, because it is a restriction 
designed to prevent Y-origin products from being exported to a 
business concern of boycotted country X or to nationals of boycotted 
country X.
    (vi) Same as (v), except that the condition imposed on A is that 
Y-origin goods may not be shipped or permitted to be transshipped to 
any companies which Y lists as being owned by persons whose national 
origin is X.
    A may not agree to this condition, because it is a restriction 
designed to prevent Y-origin goods from being exported to persons of 
a particular national origin rather than to residents or nationals 
of a particular boycotted country.
    (vii) A, a U.S. petroleum company, exports petroleum products to 
20 countries, including the United States, from boycotting country 
Y. Y requires, as a condition of sale, that A not ship the products 
to be exported from Y to or through boycotted country X.
    A may agree to and comply with this requirement because it is an 
export requirement of Y designed to prevent Y-origin products from 
coming into contact with or under the jurisdiction of a boycotted 
country.
    (viii) Same as (vii), except that boycotting country Y's export 
regulations require that products to be exported from Y not pass 
through a port of boycotted country X.
    A may agree to and comply with Y's regulations prohibiting Y-
origin exports from passing through a port at boycotted country X, 
because they are export requirements of Y designed to prevent Y-
origin products from coming into contact with or under the 
jurisdiction of a boycotted country.
    (ix) Same as (vii), except that Y's export regulations require 
that A not transship the exported products ``in or at'' boycotted 
country X.
    A may agree to and comply with Y's regulations with respect to 
the transshipment of goods ``in or at'' X, because they are export 
requirements of Y designed to prevent Y-origin products from coming 
into contact with or under the jurisdiction of a boycotted country.

    (f) Immigration, passport, visa, or employment requirements of a 
boycotting country.

Compliance With Immigration, Passport, Visa, or Employment Requirements 
of a Boycotting Country

    (1) A United States individual may comply or agree to comply with 
the immigration, passport, visa, or employment requirements of a 
boycotting country, and with requests for information from a boycotting 
country made to ascertain whether such individual meets requirements 
for employment within the boycotting country, provided that he 
furnishes information only about himself or a member of his family, and 
not about any other United States individual, including his employees, 
employers, or co-workers.
    (2) For purposes of this section, a United States individual means 
a person who is a resident or national of the United States. Family 
means immediate family members, including parents, siblings, spouse, 
children, and other dependents living in the individual's home.
    (3) A United States person may not furnish information about its 
employees or executives, but may allow any individual to respond on his 
own to any request for information relating to immigration, passport, 
visa, or employment requirements. A United States person may also 
perform any ministerial acts to expedite processing of applications by 
individuals. These include informing employees of boycotting country 
visa requirements at an appropriate time; typing, translation, 
messenger and similar services; and assisting in or arranging for the 
expeditious processing of applications.

[[Page 12882]]
All such actions must be undertaken on a non-discriminatory basis.
    (4) A United States person may proceed with a project in a 
boycotting country even if certain of its employees or other 
prospective participants in a transaction are denied entry for boycott 
reasons. But no employees or other participants may be selected in 
advance in a manner designed to comply with a boycott.

Examples of Compliance With Immigration, Passport, Visa, or Employment 
Requirements of a Boycotting Country

    The following examples are intended to give guidance in 
determining the circumstances in which compliance with immigration, 
passport, visa, or employment requirements is permissible. They are 
illustrative, not comprehensive.
    (i) A, a U.S. individual employed by B, a U.S. manufacturer of 
sporting goods with a plant in boycotting country Y, wishes to 
obtain a work visa so that he may transfer to the plant in Y. 
Country Y's immigration laws specify that anyone wishing to enter 
the country or obtain a visa to work in the country must supply 
information about his religion. This information is required for 
boycott purposes.
    A may furnish such information, because it is required by Y's 
immigration laws.
    (ii) Same as (i), except that A is asked to supply such 
information about other employees of B.
    A may not supply this information, because it is not information 
about himself or his family.
    (iii) A, a U.S. building contractor, has been awarded a 
construction contract to be performed in boycotting country Y. Y's 
immigration laws require that individuals applying for visas must 
indicate race, religion, and place of birth. The information is 
sought for boycott purposes. To avoid repeated rejections of 
applications for work visas by A's employees, A desires to furnish 
to country Y a list of its prospective and current employees and 
required information about each so that Y can make an initial 
screening.
    A may not furnish such a list, because A would be furnishing 
information about the race, religion, and national origin of its 
employees.
    (iv) Same as (iii), except that A selects for work on the 
project those of its current employees whom it believes will be 
granted work visas from boycotting country Y.
    A may not make a selection from among its employees in a manner 
designed to comply with the boycott-based visa requirements of Y, 
but must allow all eligible employees to apply for visas. A may 
later substitute an employee who obtains the necessary visa for one 
who has had his application rejected.
    (v) Same as (iii), except that A selects employees for the 
project and then allows each employee individually to apply for his 
own visa. Two employees' applications are rejected, and A then 
substitutes two other employees who, in turn, submit their own visa 
applications.
    A may take such action, because in so doing A is not acting in 
contravention of any prohibition of this part.
    (vi) Same as (v), except that A arranges for the translation, 
typing and processing of its employees' applications, and transmits 
all the applications to the consulate of boycotting country Y.
    A may take such ministerial actions, because in so doing A is 
not itself furnishing information with respect to race, religion, 
sex, or national origin, but is merely transmitting information 
furnished by its individual employees.
    (vii) A, a U.S. contractor, selects U.S. subcontractor B to 
perform certain engineering services in connection with A's project 
in boycotting country Y. The work visa application submitted by the 
employee B has proposed as chief engineer of this project is 
rejected by Y because his national origin is of boycotted country X. 
Subcontractor B thereupon withdraws.
    A may continue with the project and select another 
subcontractor, because A is not acting in contravention of any 
prohibition of this part.

    (g) Compliance with local law.
    (1) This exception contains two parts. The first covers compliance 
with local law with respect to a United States person's activities 
exclusively within a foreign country; the second covers compliance with 
local import laws by United States persons resident in a foreign 
country. Under both parts of this exception, local laws are laws of the 
host country, whether derived from statutes, regulations, decrees, or 
other official sources having the effect of law in the host country. 
This exception is not available for compliance with presumed policies 
or understandings of policies unless those policies are reflected in 
official sources having the effect of law.
    (2) Both parts of this exception apply only to United States 
persons resident in a foreign country. For purposes of this exception, 
a United States person will be considered to be a resident of a foreign 
country only if he is a bona fide resident. A United States person may 
be a bona fide resident of a foreign country even if such person's 
residency is temporary.
    (3)(i) Factors that will be considered in determining whether a 
United States person is a bona fide resident of a foreign country 
include:
    (A) Physical presence in the country;
    (B) Whether residence is needed for legitimate business reasons;
    (C) Continuity of the residency;
    (D) Intent to maintain the residency;
    (E) Prior residence in the country;
    (F) Size and nature of presence in the country;
    (G) Whether the person is registered to do business or incorporated 
in the country;
    (H) Whether the person has a valid work visa; and
    (I) Whether the person has a similar presence in both boycotting 
and non-boycotting foreign countries in connection with similar 
business activities.
    (ii) No one of the factors in paragraph (g)(3) of this section is 
dispositive. All the circumstances involved will be closely examined to 
ascertain whether there is, in fact, bona fide residency. Residency 
established solely for purposes of avoidance of the application of this 
part, unrelated to legitimate business needs, does not constitute bona 
fide residency.

Examples of Bona Fide Residency

    The following examples are intended to give guidance in 
determining the circumstances in which a United States person may be 
a bona fide resident of a foreign country. For purposes of 
illustration, each example discusses only one or two factors, 
instead of all relevant factors. They are illustrative, not 
comprehensive.
    (i) A, a U.S. radio manufacturer located in the United States, 
receives a tender to bid on a contract to supply radios for a hotel 
to be built in boycotting country Y. After examining the proposal, A 
sends a bid from its New York office to Y.
    A is not a resident of Y, because it is not physically present 
in Y.
    (ii) Same as (i), except that after receiving the tender, A 
sends its sales representative to Y. A does not usually have sales 
representatives in countries when it bids from the United States, 
and this particular person's presence in Y is not necessary to 
enable A to make the bid.
    A is not a bona fide resident of Y, because it has no legitimate 
business reasons for having its sales representative resident in Y.
    (iii) A, a U.S. bank, wishes to establish a branch office in 
boycotting country Y. In pursuit of that objective, A's personnel 
visit Y to make the necessary arrangements. A intends to establish a 
permanent branch office in Y after the necessary arrangements are 
made.
    A's personnel in Y are not bona fide residents of Y, because A 
does not yet have a permanent business operation in Y.
    (iv) Same as (iii), except A's personnel are required by Y's 
laws to furnish certain non-discriminatory boycott information in 
order to establish a branch in Y.
    In these limited circumstances, A's personnel may furnish the 
non-discriminatory boycott information necessary to establish 
residency to the same extent a U.S. person who is a bona fide 
resident in that country could. If this information could not be 
furnished in such limited circumstances, the exception would be 
available only to firms resident in a boycotting country before the 
effective date of this part.
    (v) A, a U.S. construction company, receives an invitation to 
build a power plant in boycotting country Y. After receipt of the 
invitation, A's personnel visit Y in order to

[[Page 12883]]
survey the site and make necessary analyses in preparation for 
submitting a bid. The invitation requires that otherwise prohibited 
boycott information be furnished with the bid.
    A's personnel in Y are not bona fide residents of Y, because A 
has no permanent business operation in Y. Therefore, A's personnel 
may not furnish the prohibited information.
    (vi) Same as (v), except that A is considering establishing an 
office in boycotting country Y. A's personnel visit Y in order to 
register A to do business in that country. A intends to establish 
ongoing construction operations in Y. A's personnel are required by 
Y's laws to furnish certain non-discriminatory boycott information 
in order to register A to do business or incorporate a subsidiary in 
Y.
    In these limited circumstances, A's personnel may furnish non-
discriminatory boycott information necessary to establish residency 
to the same extent a U.S. person who is a bona fide resident in that 
country could. If this information could not be furnished in such 
limited circumstances, the exception would be available only to 
firms resident in a boycotting country before the effective date of 
this part.
    (vii) A, a subsidiary of U.S. oil company B, is located in 
boycotting country Y. A has been engaged in oil explorations in Y 
for a number of years.
    A is a bona fide resident of Y, because of its pre-existing 
continuous presence in Y for legitimate business reasons.
    (viii) Same as (vii), except that A has just been established in 
Y and has not yet begun operations.
    A is a bona fide resident of Y, because it is present in Y for 
legitimate business reasons and it intends to reside continuously.
    (ix) U.S. company A is a manufacturer of prefabricated homes. A 
builds a plant in boycotting country Y for purposes of assembling 
components made by A in the United States and shipped to Y.
    A's personnel in Y are bona fide residents of Y, because A's 
plant in Y is established for legitimate business reasons, and it 
intends to reside continuously.
    (x) U.S. company A has its principal place of business in the 
United States. A's sales agent visits boycotting country Y from time 
to time for purposes of soliciting orders.
    A's sales agent is not a bona fide resident of Y, because such 
periodic visits to Y are insufficient to establish a bona fide 
residency.
    (xi) A, a branch office of U.S. construction company B, is 
located in boycotting country Y. The branch office has been in 
existence for a number of years and has been performing various 
management services in connection with B's construction operations 
in Y.
    A is a bona fide resident of Y, because of its longstanding 
presence in Y and its conduct of ongoing operations in Y.
    (xii) U.S. construction company A has never done any business in 
boycotting country Y. It is awarded a contract to construct a 
hospital in Y, and preparatory to beginning construction, sends its 
personnel to Y to set up operations.
    A's personnel are bona fide residents of Y, because they are 
present in Y for the purposes of carrying out A's legitimate 
business purposes; they intend to reside continuously; and residency 
is necessary to conduct their business.
    (xiii) U.S. company A manufactures furniture. All its sales in 
foreign countries are conducted from its offices in the United 
States. From time to time A has considered opening sales offices 
abroad, but it has concluded that it is more efficient to conduct 
sales operations from the United States. Shortly after the effective 
date of this part, A sends a sales representative to boycotting 
country Y to open an office in and solicit orders from Y. It is more 
costly to conduct operations from that office than to sell directly 
from the United States, but A believes that if it establishes a 
residence in Y, it will be in a better position to avoid conflicts 
with U.S. law in its sales to Y.
    A's sales representative is not a bona fide resident of Y, 
because the residency was established to avoid the application of 
this part and not for legitimate business reasons.
    (xiv) Same as (xiii), except that it is in fact more efficient 
to have a sales office in Y. In fact, without a sales office in Y, A 
would find it difficult to explore business opportunities in Y. A is 
aware, however, that residency in Y would permit its sales 
representative to comply with Y's boycott laws.
    A's sales representative is a bona fide resident of Y, because A 
has a legitimate business reason for establishing a sales office in 
Y.
    (xv) U.S. company B is a computer manufacturer. B sells 
computers and related programming services tailored to the needs of 
individual clients. Because of the complex nature of the product, B 
must have sales representatives in any country where sales are made. 
B has a sales representative, A, in boycotting country Y. A spends 
two months of the year in Y, and the rest of the year in other 
countries. B has a permanent sales office from which A operates 
while in Y, and the sales office is stocked with brochures and other 
sales materials.
    A is a bona fide resident of Y, because his presence in Y is 
necessary to carry out B's legitimate business purposes; B maintains 
a permanent office in Y; and B intends to continue doing business in 
Y in the future.
    (xvi) A, a U.S. construction engineering company, is engaged by 
B, a U.S. general contracting company, to provide services in 
connection with B's contract to construct a hospital complex in 
boycotting country Y. In order to perform those services, A's 
engineers set up a temporary office in a trailer on the construction 
site in Y. A's work is expected to be completed within six months.
    A's personnel in Y are bona fide residents of Y, because A's on-
site office is necessary to the performance of its services for B, 
and because A's personnel are continuously there.
    (xvii) A, a U.S. company, sends one of its representatives to 
boycotting country Y to explore new sales possibilities for its line 
of transistor radios. After spending several weeks in Y, A's 
representative rents a post office box in Y, to which all persons 
interested in A's products are directed to make inquiry.
    A is not a bona fide resident of Y, because rental of a post 
office box is not a sufficient presence in Y to constitute 
residency.
    (xviii) A, a U.S. computer company, has a patent and trademark 
registered in the United States. In order to obtain registration of 
its patent and trademark in boycotting country Y, A is required to 
furnish certain non-discriminatory boycott information.
    A may not furnish the information, because A is not a bona fide 
resident of Y.

    (h) Activities exclusively within a foreign country.
    (1) Any United States person who is a bona fide resident of a 
foreign country, including a boycotting country, may comply or agree to 
comply with the laws of that country with respect to his activities 
exclusively within that country. These activities include:
    (i) Entering into contracts which provide that local law applies or 
governs, or that the parties will comply with such laws;
    (ii) Employing residents of the host country;
    (iii) Retaining local contractors to perform work within the host 
country;
    (iv) Purchasing or selling goods or services from or to residents 
of the host country; and
    (v) Furnishing information within the host country.
    (2) Activities exclusively within the country do not include 
importing goods or services from outside the host country, and, 
therefore, this part of the exception does not apply to compliance with 
import laws in connection with importing goods or services.

Examples of Permissible Compliance With Local Law With Respect to 
Activities Exclusively Within a Foreign Country

    The following examples are intended to give guidance in 
determining the circumstances in which compliance with local law is 
permissible. They are illustrative, not comprehensive.

Activities Exclusively Within a Foreign Country

    (i) U.S. construction company A, a bona fide resident of 
boycotting country Y, has a contract to build a school complex in Y. 
Pursuant to Y's boycott laws, the contract requires A to refuse to 
purchase supplies from certain local merchants. While Y permits such 
merchants to operate within Y, their freedom of action in Y is 
constrained because of their relationship with boycotted country X.
    A may enter into the contract, because dealings with local 
merchants are activities exclusively within Y.
    (ii) A, a banking subsidiary of U.S. bank B, is a bona fide 
resident of boycotting country Y. From time to time, A purchases 
office supplies from the United States.
    A's purchase of office supplies is not an activity exclusively 
within Y, because it involves the import of goods from abroad.
    (iii) A, a branch of U.S. bank B, is a bona fide resident of 
boycotting country Y. Under

[[Page 12884]]
Y's boycott laws, A is required to supply information about whether 
A has any dealings with boycotted country X. A compiles and 
furnishes the information within Y and does so of its own knowledge.
    A may comply with that requirement, because in compiling and 
furnishing the information within Y, based on its own knowledge, A 
is engaging in an activity exclusively within Y.
    (iv) Same as (iii), except that A is required to supply 
information about B's dealings with X. From its own knowledge and 
without making any inquiry of B, A compiles and furnishes the 
information.
    A may comply with that requirement, because in compiling and 
furnishing the information within Y, based on its own knowledge, A 
is engaging in an activity exclusively within Y.
    (v) Same as (iv), except that in making its responses, A asks B 
to compile some of the information.
    A may not comply, because the gathering of the necessary 
information takes place partially outside Y.
    (vi) U.S. company A has applied for a license to establish a 
permanent manufacturing facility in boycotting country Y. Under Y's 
boycott law, A must agree, as a condition of the license, that it 
will not sell any of its output to blacklisted foreign firms.
    A may not comply, because the agreement would govern activities 
of A which are not exclusively within Y.

Discrimination Against United States Persons

    (i) A, a subsidiary of U.S. company B, is a bona fide resident 
of boycotting country Y. A manufactures air conditioners in its 
plant in Y. Under Y's boycott laws, A must agree not to hire 
nationals of boycotted country X.
    A may agree to the restriction and may abide by it with respect 
to its recruitment of individuals within Y, because the recruitment 
of such individuals is an activity exclusively within Y. However, A 
cannot abide by this restriction with respect to its recruitment of 
individuals outside Y, because this is not an activity exclusively 
within Y.
    (ii) Same as (i), except that pursuant to Y's boycott laws, A 
must agree not to hire anyone who is of a designated religion.
    A may not agree to this restriction, because the agreement calls 
for discrimination against U.S. persons on the basis of religion. It 
makes no difference whether the recruitment of the U.S. persons 
occurs within or without Y.

(Note: The exception for compliance with local law does not apply to 
boycott-based refusals to employ U.S. persons on the basis of race, 
religion, sex, or national origin even if the activity is 
exclusively within the boycotting country.)

    (i) Compliance with local import law.
    (1) Any United States person who is a bona fide resident of a 
foreign country, including a boycotting country, may, in importing 
goods, materials or components into that country, comply or agree to 
comply with the import laws of that country, provided that:
    (i) The items are for his own use or for his use in performing 
contractual services within that country; and
    (ii) In the normal course of business, the items are identifiable 
as to their source or origin at the time of their entry into the 
foreign country by:
    (a) Uniqueness of design or appearance; or
    (b) Trademark, trade name, or other identification normally on the 
items themselves, including their packaging.
    (2) The factors that will be considered in determining whether a 
United States person is a bona fide resident of a foreign country are 
those set forth in paragraph (g) of this section. Bona fide residence 
of a United States company's subsidiary, affiliate, or other permanent 
establishment in a foreign country does not confer such residence on 
such United States company. Likewise, bona fide residence of a United 
States company's employee in a foreign country does not confer such 
residence on the entire company.
    (3) A United States person who is a bona fide resident of a foreign 
country may take action under this exception through an agent outside 
the country, but the agent must act at the direction of the resident 
and not exercise his own discretion. Therefore, if a United States 
person resident in a boycotting country takes action to comply with a 
boycotting country's import law with respect to the importation of 
qualified goods, he may direct his agent in the United States on the 
action to be taken, but the United States agent himself may not 
exercise any discretion.
    (4) For purposes of this exception, the test that governs whether 
goods or components of goods are specifically identifiable is identical 
to the test applied in paragraph (c) of this section on ``Compliance 
With Unilateral Selection'' to determine whether they are identifiable 
as to their source or origin in the normal course of business.
    (5) The availability of this exception for the import of goods 
depends on whether the goods are intended for the United States 
person's own use at the time they are imported. It does not depend upon 
who has title to the goods at the time of importation into a foreign 
country.
    (6) Goods are for the United States person's own use (including the 
performance of contractual services within the foreign country) if:
    (i) They are to be consumed by the United States person;
    (ii) They are to remain in the United States person's possession 
and to be used by that person;
    (iii) They are to be used by the United States person in performing 
contractual services for another;
    (iv) They are to be further manufactured, incorporated into, 
refined into, or reprocessed into another product to be manufactured 
for another; or
    (v) They are to be incorporated into, or permanently affixed as a 
functional part of, a project to be constructed for another.
    (7) Goods acquired to fill an order for such goods from another are 
not for the United States person's own use. Goods procured for another 
are not for one's own use, even if the furnishing of procurement 
services is the business in which the United States person is 
customarily engaged. Nor are goods obtained for simple resale acquired 
for one's own use, even if the United States person is engaged in the 
retail business. Likewise, goods obtained for inclusion in a turnkey 
project are not for one's own use if they are not customarily 
incorporated into, or do not customarily become permanently affixed as 
a functional part of the project.
    (8) This part of the local law exception does not apply to the 
import of services, even when the United States person importing such 
services is a bona fide resident of a boycotting country and is 
importing them for his own use. In addition, this exception is 
available for a United States person who is a bona fide resident of a 
foreign country only when the individual or entity actually present 
within that country takes action through the exercise of his own 
discretion.
    (9) Use of this exception will be monitored and continually 
reviewed to determine whether its continued availability is consistent 
with the national interest. Its availability may be limited or 
withdrawn as appropriate. In reviewing the continued availability of 
this exception, the effect that the inability to comply with local 
import laws would have on the economic and other relations of the 
United States with boycotting countries will be considered.
    (10) A United States person who is a bona fide resident of a 
foreign country may comply or agree to comply with the host country's 
import laws even if he knows or has reason to know that particular laws 
are boycott-related. However, no United States person may comply or 
agree to comply with any host country law which would require him to 
discriminate against any United States person on the basis of race, 
religion, sex, or national origin, or to supply information about any 
United States person's race, religion, sex, or national origin.

[[Page 12885]]


Examples of Permissible Compliance With Local Import Law

    The following examples are intended to give guidance in 
determining the circumstances in which compliance with local import 
law is permissible. They are illustrative, not comprehensive.

Compliance by a Bona Fide Resident

    (i) A, a subsidiary of U.S. company B, is a bona fide resident 
of boycotting country Y and is engaged in oil drilling operations in 
Y. In acquiring certain large, specifically identifiable products 
for carrying out its operations in Y, A chooses only from non-
blacklisted firms because Y's import laws prohibit the importation 
of goods from blacklisted firms. However, with respect to smaller 
items, B makes the selection on behalf of A and sends them to A in 
Y.
    A may choose from non-blacklisted firms, because it is a U.S. 
person who is a bona fide resident in Y. However, because B is not 
resident in Y, B cannot make boycott-based selections to conform 
with Y's import laws prohibiting the importation of goods from 
blacklisted firms.
    (ii) Same as (i), except that after making its choices on the 
larger items, A directs B to carry out its instructions by entering 
into appropriate contracts and making necessary shipping 
arrangements.
    B may carry out A's instructions provided that A, a bona fide 
resident of Y, has in fact made the choice and B is exercising no 
discretion, but is acting only as A's agent.
    (Note: Such transactions between related companies will be 
scrutinized carefully. A must in fact exercise the discretion and 
make the selections. If the discretion is exercised by B, B would be 
in violation of this part.)

    (iii) U.S. construction company A has a contract to build a 
school in boycotting country Y. A's employees set up operations in Y 
for purposes of commencing construction. A's employees in Y advise 
A's headquarters in the United States that Y's import laws prohibit 
importation of goods manufactured by blacklisted firms. A's 
headquarters then issues invitations to bid only to non-blacklisted 
firms for certain specifically identifiable goods.
    A's headquarters' choice of non-blacklisted suppliers is not a 
choice made by a U.S. person who is a bona fide resident of Y, 
because the discretion in issuing the bids was exercised in the 
United States, not in Y.
    (iv) Same as (iii), except that A's employees in Y actually make 
the decision regarding to whom the bids should be issued.
    The choices made by A's employees are choices made by U.S. 
persons who are bona fide residents of Y, because the discretion in 
choosing was exercised solely in Y.

(Note: Choices purportedly made by employees of U.S. companies who 
are resident in boycotting countries will be carefully scrutinized 
to ensure that the discretion was exercised entirely in the 
boycotting country.)

Specifically Identifiable Goods

    The test and examples as to what constitutes specifically 
identifiable goods are identical to those applicable under paragraph 
(d) of this section on ``Compliance With Unilateral Selection.''

Imports for U.S. Person's Own Use

    (i) A, a subsidiary of U.S. company B, is a bona fide resident 
of boycotting country Y. A plans to import computer operated machine 
tools to be installed in its automobile plant in boycotting country 
Y. The computers are mounted on a separate bracket on the side of 
the equipment and are readily identifiable by brand name. A orders 
the tools from U.S. supplier C and specifies that C must incorporate 
computers manufactured by D, a non-blacklisted company. A would have 
chosen computers manufactured by E, except that E is blacklisted, 
and Y's import laws prohibit the importation of goods manufactured 
by blacklisted firms.
    A may refuse to purchase E's computers, because A is importing 
the computers for its own use in its manufacturing operations in Y.
    (ii) A, a subsidiary of U.S. company B, is a bona fide resident 
of boycotting country Y. To meet the needs of its employees in Y, A 
imports certain specifically identifiable commissary items for sale, 
such as cosmetics; and canteen items, such as candy. In selecting 
such items for importation into Y, A chooses items made only by non-
blacklisted firms, because Y's import laws prohibit importation of 
goods from blacklisted firms.
    A may import these items only from non-blacklisted firms, 
because the importation of goods for consumption by A's employees is 
an importation for A's own use.
    (iii) A, a U.S. construction company which is a bona fide 
resident of boycotting country Y, has a contract to build a hospital 
complex for the Ministry of Health in Y. Under the contract, A will 
be general manager of the project with discretion to choose all 
subcontractors and suppliers. The complex is to be built on a 
turnkey basis, with A retaining title to the property and bearing 
all financial risk until the complex is conveyed to Y. In choosing 
specifically identifiable goods for import, such as central air 
conditioning units and plate glass, A excludes blacklisted suppliers 
in order to comply with Y's import laws. These goods are customarily 
incorporated into, or permanently affixed as a functional part of, 
the project.
    A may refuse to deal with blacklisted suppliers of specifically 
identifiable goods, because importation of goods by a general 
contractor to be incorporated into a construction project in Y is an 
importation of goods for A's own use.
    (iv) Same as (iii), except that, in addition, in choosing U.S. 
architects and engineers to work on the project, A excludes 
blacklisted firms, because Y's import laws prohibit the use of 
services rendered by blacklisted persons.
    A may not refuse to deal with blacklisted architectural or 
engineering firms, because this exception does not apply to the 
import of services. It is irrelevant that, at some stage, the 
architectural or engineering drawings or plans may be brought to the 
site in Y. This factor is insufficient to transform such services 
into ``goods'' for purposes of this exception.
    (v) Same as (iii), except that the project is to be completed on 
a ``cost plus'' basis, with Y making progress payments to A at 
various stages of completion.
    A may refuse to deal with blacklisted suppliers of specifically 
identifiable goods, because the importation of goods by A to be 
incorporated in a project A is under contract to complete is an 
importation of goods for its own use. The terms of payment are 
irrelevant.
    (vi) A, a U.S. construction company which is a bona fide 
resident of boycotting country Y, has a contract for the 
construction of an office building in Y on a turnkey basis. In 
choosing goods to be used or included in the office complex, A 
orders wallboard, office partitions, and lighting fixtures from non-
blacklisted manufacturers. A likewise orders desks, office chairs, 
typewriters, and office supplies from non-blacklisted manufacturers.
    Because they are customarily incorporated into or permanently 
affixed as a functional part of an office building, the wallboard, 
office partitions, and lighting fixtures are for A's own use, and A 
may select non-blacklisted suppliers of these goods in order to 
comply with Y's import laws. Because they are not customarily 
incorporated into or permanently affixed to the project, the desks, 
office chairs, typewriters, and office supplies are not for A's own 
use, and A may not make boycott-based selections of the suppliers of 
these goods.
    (vii) A, a U.S. company engaged in the business of selling 
automobiles, is a bona fide resident of boycotting country Y. In 
ordering automobiles from time to time for purposes of stocking its 
inventory, A purchases from U.S. manufacturer B, but not U.S. 
manufacturer C, because C is blacklisted. Retail sales are 
subsequently made from this inventory.
    A's import of automobiles from B is not an import for A's own 
use, because the importation of items for general inventory in a 
retail sales operation is not an importation for one's own use.
    (viii) A, a U.S. company engaged in the manufacture of 
pharmaceutical products, is a bona fide resident of boycotting 
country Y. In importing chemicals for incorporation into the 
pharmaceutical products, A purchases from U.S. supplier B, but not 
U.S. supplier C, because C is blacklisted.
    A may import chemicals from B rather than C, because the 
importation of specifically identifiable items for incorporation 
into another product is an importation for one's own use.
    (ix) A, a U.S. management company which is a bona fide resident 
of boycotting country Y, has a contract with the Ministry of 
Education in Y to purchase supplies for Y's school system. From time 
to time, A purchases goods from abroad for delivery to various 
schools in Y.
    A's purchase of goods for Y's school system does not constitute 
an importation of goods for A's own use, because A is acting as a 
procurement agent for another. A, therefore, cannot make boycott-
based selections of suppliers of such school supplies.

[[Page 12886]]

    (x) A, a U.S. company which is a bona fide resident of 
boycotting country Y, has a contract to make purchases for Y in 
connection with a construction project in Y. A is not engaged in the 
construction of, or in any other activity in connection with, the 
project. A's role is merely to purchase goods for Y and arrange for 
their delivery to Y.
    A is not purchasing goods for its own use, because A is acting 
as a procurement agent for Y. A, therefore, cannot make boycott 
selections of suppliers of such goods.
    (xi) A, a U.S. company which is a bona fide resident of 
boycotting country Y, imports specifically identifiable goods into Y 
for exhibit by A at a trade fair in Y. In selecting goods for 
exhibit, A excludes items made by blacklisted firms.
    A's import of goods for its exhibit at a trade fair constitutes 
an import for A's own use. However, A may not sell in Y those goods 
it imported for exhibit.

For Use Within Boycotting Country

    A is a bona fide resident of boycotting countries Y and Z. In 
compliance with Y's boycott laws, A chooses specifically 
identifiable goods for its oil drilling operations in Y and Z by 
excluding blacklisted suppliers. The goods are first imported into 
Y. Those purchased for A's use in Z are then transshipped to Z.
    In selecting those goods for importation into Y, A is making an 
import selection for its own use, even though A may use some of the 
imported goods in Z. Further, the subsequent shipment from Y to Z of 
those goods purchased for use in Z is an import into Z for A's own 
use.


Sec. 760.4  Evasion.

    (a) No United States person may engage in any transaction or take 
any other action, either independently or through any other person, 
with intent to evade the provisions of this part. Nor may any United 
States person assist another United States person to violate or evade 
the provisions of this part.
    (b) The exceptions set forth in Sec. 760.3(a) through (g) of this 
part do not permit activities or agreements (express or implied by a 
course of conduct, including a pattern of responses) which are 
otherwise prohibited by this part and which are not within the intent 
of such exceptions. However, activities within the coverage and intent 
of the exceptions set forth in this part do not constitute evasion 
regardless of how often such exceptions are utilized.
    (c) Use of any artifice, device or scheme which is intended to 
place a person at a commercial disadvantage or impose on him special 
burdens because he is blacklisted or otherwise restricted for boycott 
reasons from having a business relationship with or in a boycotting 
country will be regarded as evasion for purposes of this part.
    (d) Unless permitted under one of the exceptions, use of risk of 
loss provisions that expressly impose a financial risk on another 
because of the import laws of a boycotting country may constitute 
evasion. If they are introduced after January 21, 1978, their use will 
be presumed to constitute evasion. This presumption may be rebutted by 
a showing that such a provision is in customary usage without 
distinction between boycotting and non-boycotting countries and that 
there is a legitimate non-boycott reason for its use. On the other 
hand, use of such a provision by a United States person subsequent to 
January 21, 1978 is presumed not to constitute evasion if the provision 
had been customarily used by that person prior to January 21, 1978.
    (e) Use of dummy corporations or other devices to mask prohibited 
activity will also be regarded as evasion. Similarly, it is evasion 
under this part to divert specific boycotting country orders from a 
United States parent to a foreign subsidiary for purposes of complying 
with prohibited boycott requirements. However, alteration of a person's 
structure or method of doing business will not constitute evasion so 
long as the alteration is based on legitimate business considerations 
and is not undertaken solely to avoid the application of the 
prohibitions of this part. The facts and circumstances of an 
arrangement or transaction will be carefully scrutinized to see whether 
appearances conform to reality.

Examples

    The following examples are intended to give guidance to persons 
in determining circumstances in which this section will apply. They 
are illustrative, not comprehensive.
    (i) A, a U.S. insurance company, receives a request from 
boycotting country Y asking whether it does business in boycotted 
country X. Because furnishing such information is prohibited, A 
declines to answer and as a result is placed on Y's blacklist. The 
following year, A's annual report contains new information about A's 
worldwide operations, including a list of all countries in which A 
does business. A then mails a copy of its annual report, which has 
never before contained such information, to officials of the 
government of country Y.
    Absent some business justification unrelated to the boycott for 
changing the annual report in this fashion, A's action constitutes 
evasion of this part.
    (ii) A, a U.S. construction firm resident in boycotting country 
Y, orders lumber from U.S. company B. A unilaterally selects B in 
part because U.S. lumber producer C is blacklisted by Y and C's 
products are therefore not importable. In placing its order with B, 
A requests that B stamp its name or logo on the lumber so that A 
``can be certain that it is, in fact, receiving B's products.'' B 
does not normally so stamp its lumber, and A's purpose in making the 
request is to appear to fit within the unilateral selection 
exception of this part.
    Absent additional facts justifying A's action, A's action 
constitutes evasion of this part.
    (iii) A, a U.S. company, has been selling sewing machines to 
boycotting country Y for a number of years and routinely supplying 
negative certificates of origin. A is aware that the furnishing of 
negative certificates of origin will be prohibited after June 21, 
1978 and, therefore, arranges to have all future shipments run 
through a foreign corporation in a third country which will affix 
the necessary certification before forwarding the machines on to Y.
    A's action constitutes evasion of this part, because it is a 
device to mask prohibited activity carried out on A's behalf.
    (iv) A, a U.S. company, has been selling hand calculators to 
boycotting country Y for a number of years and routinely supplies 
negative certificates of origin. A is aware that the furnishing of 
such negative certificates will be prohibited after June 21, 1978. A 
thereupon ceases all direct sales to Y, and instead arranges to make 
all future sales to distributor B in a third country. A knows B will 
step in and make the sales to Y which A would otherwise have made 
directly. B will make the necessary negative certifications. A's 
warranty, which it will continue to honor, runs to the purchaser in 
Y.
    A's action constitutes evasion, because the diverting of orders 
to B is a device to mask prohibited activity carried out on A's 
behalf.
    (v) A, a U.S. company, is negotiating a long-term contract with 
boycotting country Y to meet all Y's medical supply needs. Y informs 
A that before such a contract can be concluded, A must complete Y's 
boycott questionnaire. A knows that it is prohibited from answering 
the questionnaire so it arranges for a local agent in Y to supply 
the necessary information.
    A's action constitutes evasion of this part, because it is a 
device to mask prohibited activity carried out on A's behalf.
    (vi) A, a U.S. contractor which has not previously dealt with 
boycotting country Y, is awarded a construction contract by Y. 
Because it is customary in the construction industry for a 
contractor to establish an on-site facility for the duration of the 
project, A establishes such an office, which satisfies the 
requirements for bona fide residency. Thereafter, A's office in Y 
takes a number of actions permitted under the compliance with local 
law exception.
    A's actions do not constitute evasion, because A's facility in Y 
was established for legitimate business reasons.
    (vii) A, a controlled foreign subsidiary of U.S. company B, is 
located in non-boycotting country M. A and B both make machine tools 
for sale in their respective marketing regions. B's marketing region 
includes boycotting country Y. After assessing the requirements of 
this part, B decides that it can no longer make machines for sale in 
Y. Instead, A decides to expand its facilities in M in order to 
service the Y market.
    The actions of A and B do not constitute evasion, because there 
is a legitimate business reason for their actions. It is irrelevant 
that the effect may be to place sales which would otherwise have 
been subject to this part beyond the reach of this part.

[[Page 12887]]

    (viii) A, a U.S. manufacturer, from time to time receives 
purchase orders from boycotting country Y which A fills from its 
plant in the United States. A knows that it is about to receive an 
order from Y which contains a request for a certification which A is 
prohibited from furnishing under this part. In order to permit the 
certification to be made, A diverts the purchase order to its 
foreign subsidiary.
    A's diversion of the purchase order constitutes evasion of this 
part, because it is a device to mask prohibited activity carried out 
on A's behalf.
    (ix) A, a U.S. company, is engaged in assembling drilling rigs 
for shipment to boycotting country Y. Because of potential 
difficulties in securing entry into Y of materials supplied by 
blacklisted firms, A insists that blacklisted firms take a 15 
percent discount on all materials which they supply to A. As a 
result, no blacklisted firms are willing to transact with A.
    A's insistence on the discount for materials supplied by 
blacklisted firms constitutes evasion of this part, because it is a 
device or scheme which is intended to place a special burden on 
blacklisted firms because of Y's boycott.
    (x) Same as (ix), except that shortly after the effective date 
of this part, A insists that its suppliers sign contracts which 
provide that even after title passes from the supplier to A, the 
supplier will bear the risk of loss and indemnify A if goods which 
the supplier has furnished are denied entry into Y for boycott 
reasons.
    A's action constitutes evasion of this part, because it is a 
device or scheme which is intended to place a special burden on 
blacklisted persons because of Y's boycott.
    (xi) Same as (x), except that A customarily insisted on such an 
arrangement with its supplier prior to the effective date of this 
part.
    A's action is presumed not to constitute evasion, because use of 
this contractual arrangement was customary for A prior to the 
effective date of this part.
    (xii) A, a U.S. company, has a contract to supply automobile 
sub-assembly units to boycotting country Y. Shortly after the 
effective date of this part, A insists that its suppliers sign 
contracts which provide that even after title passes to A, the 
supplier will bear the risk of loss and indemnify A if goods which 
the supplier has furnished are denied entry into boycotting country 
Y for whatever reason.
    A's insistence on this arrangement is presumed to constitute 
evasion, because it is a device which is intended to place a special 
burden on blacklisted firms because of Y's boycott. The presumption 
may be rebutted by competent evidence showing that use of such an 
arrangement is customary without regard to the boycotting or non-
boycotting character of the country to which it relates and that 
there is a legitimate non-boycott business reason for its use.
    (xiii) Same as (vii), except that A requires that all suppliers 
make in-country delivery.
    A's action does not constitute evasion, because it is an 
ordinary commercial practice to require in-country delivery of 
goods.
    (xiv) Same as (xii), except that A requires that title remain 
with the supplier until delivery in Y has been made.
    A's action does not constitute evasion, because it is ordinary 
commercial practice to require that title remain with the supplier 
until delivery has been made. This example is distinguishable from 
example (xii), because in example (xii) A had insisted on an 
extraordinary arrangement designed to require that the risk of loss 
remain with the supplier even after title had passed to A.
    (xv) U.S. bank A is contacted by U.S. company B to finance B's 
transaction with boycotting country Y. Payment will be effected 
through a letter of credit in favor of B at its U.S. address. A 
knows that the letter of credit will contain restrictive boycott 
conditions which would bar its implementation by A if the 
beneficiary were a U.S. person. A suggests to B that the beneficiary 
should be changed to C, a shell corporation in non-boycotting 
country M. The beneficiary is changed accordingly.
    A's action constitutes evasion of this part, because the 
arrangement is a device to mask prohibited activity on A's part.
    (xvi) Same as (xv), except that U.S. company B, the beneficiary 
of the letter of credit, arranges to change the beneficiary to B's 
foreign subsidiary so that A can implement the letter of credit. A 
knows that this has been done.
    A's implementation of the letter of credit in the face of its 
knowledge of B's action constitutes evasion of this part, because 
its action is part of a device to mask prohibited activity on A's 
part.
    (xvii) U.S. bank A, located in the United States, is contacted 
by foreign company B to finance B's transaction with boycotting 
country Y. B is a controlled subsidiary of a U.S. company. The 
transaction which is to be financed with a letter of credit payable 
to B at its foreign address, requires B to certify that none of its 
board members are of a particular religious faith. Since B cannot 
legally furnish the certificate, it asks A to convey the necessary 
information to Y through A's bank branch in Y. Such information 
would be furnished wholly outside the letter of credit transaction.
    A's action constitutes evasion of this part, because it is 
undertaken to assist B's violation of this part.
    (xviii) U.S. bank A is asked by foreign corporation B to 
implement a letter of credit in favor of B so that B might perform 
under its long-term contract with boycotting country Y. Under the 
terms of the letter of credit, B is required to certify that none of 
its suppliers is blacklisted. A knows that it cannot implement a 
letter of credit with this condition, so it tells B to negotiate the 
elimination of this requirement from the letter of credit and 
instead supply the certification to Y directly.
    A's suggestion to B that it provide the negative certification 
to Y directly constitutes evasion of this part, because A is taking 
an action through another person to mask prohibited activity on A's 
part.


Sec. 760.5  Reporting requirements.

    (a) Scope of reporting requirements.
    (1) A United States person who receives a request to take any 
action which has the effect of furthering or supporting a restrictive 
trade practice or boycott fostered or imposed by a foreign country 
against a country friendly to the United States or against any United 
States person must report such request to the Department of Commerce in 
accordance with the requirements of this section. Such a request may be 
either written or oral and may include a request to furnish information 
or enter into or implement an agreement. It may also include a 
solicitation, directive, legend or instruction that asks for 
information or that asks that a United States person take or refrain 
from taking a particular action. Such a request shall be reported 
regardless of whether the action requested is prohibited or permissible 
under this part, except as otherwise provided by this section.
    (2) For purposes of this section, a request received by a United 
States person is reportable if he knows or has reason to know that the 
purpose of the request is to enforce, implement, or otherwise further, 
support, or secure compliance with an unsanctioned foreign boycott or 
restrictive trade practice.
    (i) A request received by a United States person located in the 
United States is reportable if it is received in connection with a 
transaction or activity in the interstate or foreign commerce of the 
United States, as determined under Sec. 760.1(d)(1) through (5) and 
(18) of this part.
    (ii) A request received by a United States person located outside 
the United States (that is, a foreign subsidiary, partnership, 
affiliate, branch, office, or other permanent foreign establishment 
which is controlled in fact by any domestic concern, as determined 
under Sec. 760.1(c) of this part) is reportable if it is received in 
connection with a transaction or activity in the interstate or foreign 
commerce of the United States, as determined under Sec. 760.1(d)(6) 
through (17) and (19) of this part.
    (iii) A request such as a boycott questionnaire, unrelated to a 
particular transaction or activity, received by any United States 
person is reportable when such person has or anticipates a business 
relationship with or in a boycotting country involving the sale, 
purchase or transfer of goods or services (including information) in 
the interstate or foreign commerce of the United States, as determined 
under Sec. 760.1(d) of this part.
    (3) These reporting requirements apply to all United States 
persons. They apply whether the United States person receiving the 
request is an exporter, bank or other financial institution,

[[Page 12888]]
insurer, freight forwarder, manufacturer, or any other United States 
person subject to this part.
    (4) The acquisition of information about a boycotting country's 
boycott requirements through the receipt or review of books, pamphlets, 
legal texts, exporters' guidebooks and other similar publications does 
not constitute receipt of a reportable request for purposes of this 
section. In addition, a United States person who receives an 
unsolicited invitation to bid, or similar proposal, containing a 
boycott request has not received a reportable request for purposes of 
this section where he does not respond to the invitation to bid or 
other proposal.
    (5) Because of the use of certain terms for boycott and non-boycott 
purposes; because of Congressional mandates to provide clear and 
precise guidelines in areas of inherent uncertainty; and because of the 
Department's commitment to minimize paperwork and reduce the cost of 
reporting where it will not impair the Department's ability to continue 
to monitor foreign boycotts, the following specific requests are not 
reportable:
    (i) A request to refrain from shipping goods on a carrier which 
flies the flag of a particular country or which is owned, chartered, 
leased or operated by a particular country or by nationals or residents 
of a particular country, or a request to certify to that effect.
    (ii) A request to ship goods via a prescribed route, or a request 
to refrain from shipping goods via a proscribed route, or a request to 
certify to either effect.
    (iii) A request to supply an affirmative statement or certification 
regarding the country of origin of goods.
    (iv) A request to supply an affirmative statement or certification 
regarding the name of the supplier or manufacturer of the goods shipped 
or the name of the provider of services.
    (v) A request to comply with the laws of another country except 
where the request expressly requires compliance with that country's 
boycott laws.
    (vi) A request to an individual to supply information about himself 
or a member of his family for immigration, passport, visa, or 
employment purposes.
    (vii) A request to supply an affirmative statement or certification 
indicating the destination of exports or confirming or otherwise 
indicating that such cargo will be unloaded or discharged at a 
particular destination.
    (viii) A request to supply a certificate by the owner, master, 
charterer, or any employee thereof, that a vessel, aircraft, truck or 
any other mode of transportation is eligible, otherwise eligible, 
permitted, or allowed to enter, or not restricted from entering, a 
particular port, country, or group of countries pursuant to the laws, 
rules, or regulations of that port, country, or group of countries.
    (ix) A request to supply a certificate from an insurance company 
stating that the insurance company has a duly authorized agent or 
representative within a boycotting country and/or the name and address 
of such agent.
    (x) A request to comply with a term or condition of a transaction 
that provides that the vendor bear the risk of loss and indemnify the 
purchaser if the vendor's goods are denied entry into a country for any 
reason (``risk of loss clause'') if such clause was in use by the 
purchaser prior to January 18, 1978.
    (6) No United States person may engage in any transaction or take 
any other action, either independently or through any other person, 
with intent to evade the provisions of this part.
    (7) From time to time the Department will survey domestic concerns 
for purposes of determining the worldwide scope of boycott requests 
received by their controlled foreign subsidiaries and affiliates with 
respect to their activities outside United States commerce. This 
pertains to requests which would be reportable under this section but 
for the fact that the activities to which the requests relate are 
outside United States commerce. The information requested will include 
the number and nature of non-reportable boycott requests received, the 
action(s) requested, the actions(s) taken in response and the countries 
in which the requests originate. The results of such surveys, including 
the names of those surveyed, will be made public.
    (b) Manner of reporting. (1) Each reportable request must be 
reported. However, if more than one document (such as an invitation to 
bid, purchase order, or letter of credit) containing the same boycott 
request is received as part of the same transaction, only the first 
such request need be reported. Individual shipments against the same 
purchase order or letter of credit are to be treated as part of the 
same transaction. Each different boycott request associated with a 
given transaction must be reported, regardless of how or when the 
request is received.
    (2) Each United States person actually receiving a reportable 
request must report that request. However, such person may designate 
someone else to report on his behalf. For example, a United States 
company, if authorized, may report on behalf of its controlled foreign 
subsidiary or affiliates; a freight forwarder, if authorized, may 
report on behalf of the exporter; and a bank, if authorized, may report 
on behalf of the beneficiary of a letter of credit. If a person 
designated to report a request received by another receives an 
identical request directed to him in connection with the same 
transaction, he may file one report on behalf of himself and the other 
person.
    (3) Where a person is designated to report on behalf of another, 
the person receiving the request remains liable for any failure to 
report or for any representations made on his behalf. Further, anyone 
reporting on behalf of another is not relieved of his own 
responsibility for reporting any boycott request which he receives, 
even if it is an identical request in connection with the same 
transaction.
    (4) Reports must be submitted in duplicate to: Report Processing 
Staff, Office of Antiboycott Compliance, U.S. Department of Commerce, 
Room 6099C, Washington, D.C. 20230. Each submission must be made in 
accordance with the following requirements:
    (i) Where the person receiving the request is a United States 
person located in the United States, each report of requests received 
through June 30, 1979, must be postmarked by the last day of the month 
following the month in which the request was received. Thereafter, each 
submission must be postmarked by the last day of the month following 
the calendar quarter in which the request was received (e.g., April 30 
for the quarter consisting of January, February, and March).
    (ii) Where the person receiving the request is a United States 
person located outside the United States, each report of requests 
received through June 30, 1979, must be postmarked by the last day of 
the second month following the month in which the request was received. 
Thereafter, each submission must be postmarked by the last day of the 
second month following the calendar quarter in which the request was 
received (e.g., May 31 for the quarter consisting of January, February, 
and March).
    (5) At the reporting person's option, reports may be submitted on 
either a single transaction form (Form BXA-621P, Report of Restrictive 
Trade Practice or Boycott Request Single Transaction (revised 10-89)) 
or on a multiple transaction form (Form BXA-6051P, Report of Request 
for Restrictive Trade Practice or Boycott Multiple Transactions 
(revised 10-89)). Use of the multiple transaction form permits the 
reporting person to provide on one form all required information 
relating to as many as 75 reportable requests

[[Page 12889]]
received within any single reporting period.
    (6) Reports, whether submitted on the single transaction form or on 
the multiple transaction form, must contain entries for every 
applicable item on the form, including whether the reporting person 
intends to take or has taken the action requested. If the reporting 
person has not decided what action he will take by the time the report 
is required to be filed, he must later report the action he decides to 
take within 10 business days after deciding. In addition, anyone filing 
a report on behalf of another must so indicate and identify that other 
person.
    (7) Each report of a boycott request must be accompanied by two 
copies of the relevant page(s) of any document(s) in which the request 
appears. Reports may also be accompanied by any additional information 
relating to the request as the reporting person desires to provide 
concerning his response to the request.
    (8) Records containing information relating to a reportable boycott 
request, including a copy of any document(s) in which the request 
appears, must be maintained by the recipient for a five-year period 
after receipt of the request. The Department may require that these 
materials be submitted to it or that it have access to them at any time 
within that period. (See part 762 of the EAR for additional 
recordkeeping requirements.)
    (c) Disclosure of information. (1) Reports of requests received on 
or after October 7, 1976, as well as any accompanying documents filed 
with the reports, have been and will continue to be made available for 
public inspection and copying, except for certain proprietary 
information. With respect to reports of requests received on or after 
August 1, 1978, if the person making the report certifies that a United 
States person to whom the report relates would be placed at a 
competitive disadvantage because of the disclosure of information 
regarding the quantity, description, or value of any articles, 
materials, and supplies, including related technical data and other 
information, whether contained in a report or in any accompanying 
document(s), such information will not be publicly disclosed except 
upon failure by the reporting entity to edit the public inspection copy 
of the accompanying document(s) as provided by paragraph (c)(2) of this 
section, unless the Secretary of Commerce determines that the 
disclosure would not place the United States person involved at a 
competitive disadvantage or that it would be contrary to the national 
interest to withhold the information. In the event the Secretary of 
Commerce considers making such a determination concerning competitive 
disadvantage, appropriate notice and an opportunity for comment will be 
given before any such proprietary information is publicly disclosed. In 
no event will requests of reporting persons to withhold any information 
contained in the report other than that specified in this paragraph be 
honored.
    (2) Because a copy of any document(s) accompanying the report will 
be made available for public inspection and copying, one copy must be 
submitted intact and another copy must be edited by the reporting 
entity to delete the same information which it certified in the report 
would place a United States person at a competitive disadvantage if 
disclosed. In addition, the reporting entity may delete from this copy 
information that is considered confidential and that is not required to 
be contained in the report (e.g., information related to foreign 
consignee). This copy should be conspicuously marked with the legend 
``Public Inspection Copy.'' With respect to documents accompanying 
reports received by the Department on or after July 1, 1979, the public 
inspection copy will be made available as submitted whether or not it 
has been appropriately edited by the reporting entity as provided by 
this paragraph.
    (3) Reports and accompanying documents which are available to the 
public for inspection and copying are located in the BXA Freedom of 
Information Records Inspection Facility, Room 4525, Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230. Requests to inspect such documents should be addressed to that 
facility.
    (4) The Secretary of Commerce will periodically transmit summaries 
of the information contained in the reports to the Secretary of State 
for such action as the Secretary of State, in consultation with the 
Secretary of Commerce, may deem appropriate for carrying out the 
policies in section 8(b)(2) of the Export Administration Act of 1979.

Examples

    The following examples are intended to give guidance in 
determining what is reportable. They are illustrative, not 
comprehensive.
    (i) A, a U.S. manufacturer, is shipping goods to boycotting 
country Y and is asked by Y to certify that it is not blacklisted by 
Y's boycott office.
    The request to A is reportable, because it is a request to A to 
comply with Y's boycott requirements.
    (ii) A, a U.S. manufacturing company, receives an order for 
tractors from boycotting country Y. Y's order specifies that the 
tires on the tractors be made by B, another U.S. company. A believes 
Y has specified B as the tire supplier because otherwise A would 
have used tires made by C, a blacklisted company, and Y will not 
take shipment of tractors containing tires made by blacklisted 
companies.
    A must report Y's request for tires made by B, because A has 
reason to know that B was chosen for boycott reasons.
    (iii) Same as (ii), except A knows that Y's request has nothing 
to do with the boycott but simply reflects Y's preference for tires 
made by B.
    Y's request is not reportable, because it is unrelated to Y's 
boycott.
    (iv) Same as (ii), except A neither knows nor has reason to know 
why Y has chosen B.
    Y's request is not reportable, because A neither knows nor has 
reason to know that Y's request is based on Y's boycott.
    (v) A, a controlled foreign subsidiary of U.S. company B, is a 
resident of boycotting country Y. A is a general contractor. After 
being supplied by A with a list of competent subcontractors, A's 
customer instructs A to use subcontractor C on the project. A 
believes that C was chosen because, among other things, the other 
listed subcontractors are blacklisted.
    The instruction to A by its customer that C be used on the 
project is reportable, because it is a request to comply with Y's 
boycott requirements.
    (vi) A, a controlled foreign subsidiary of U.S. company B, is 
located in non-boycotting country P. A receives an order for washing 
machines from boycotting country Y. Y instructs A that a negative 
certificate of origin must accompany the shipment. The washing 
machines are made wholly in P, without U.S. components.
    Y's instruction to A regarding the negative certificate of 
origin is not reportable, because the transaction to which it 
relates is not in U.S. commerce.
    (vii) Same as (vi), except that A obtains components from the 
United States for the purpose of filling the order from Y. Y's 
instruction to A regarding the negative certificate of origin is 
reportable, because the transaction to which it relates is in U.S. 
commerce.
    (viii) A, a U.S. construction company, receives in the mail an 
unsolicited invitation to bid on a construction project in 
boycotting country Y. The invitation to bid requires those who 
respond to certify that they do not have any plants or branch 
offices in boycotted country X. A does not respond.
    A's receipt of the unsolicited invitation to bid is not 
reportable, because the request does not relate to any present or 
anticipated business of A with or in Y.
    (ix) Same as (viii), except that A receives a boycott 
questionnaire from a central boycott office. A does not do business 
in any of the boycotting countries involved, and does not anticipate 
doing any business in those countries. A does not respond.
    A's receipt of the boycott questionnaire is not reportable, 
because it does not relate to any present or anticipated business by 
A with or in a boycotting country.
    (x) A, a U.S. manufacturer, is seeking markets in which to 
expand its exports. A

[[Page 12890]]
sends a representative to boycotting country Y to explore Y's 
potential as a market for A's products. A's representative discusses 
its products but does not enter into any contracts on that trip. A 
does, however, hope that sales will materialize in the future. 
Subsequently, A receives a boycott questionnaire from Y.
    A's receipt of the boycott questionnaire is reportable, because 
the request relates to A's anticipated business with or in a 
boycotting country. For purposes of determining whether a report is 
required, it makes no difference whether A responds to the 
questionnaire, and it makes no difference that actual sales 
contracts are not in existence or do not materialize.
    (xi) Same as (x), except that A's representative enters into a 
contract to sell A's products to a buyer in boycotting country Y. 
Subsequently, A receives a boycott questionnaire from Y.
    A's receipt of the boycott questionnaire is reportable, because 
it relates to A's present business with or in a boycotting country. 
For purposes of determining whether a report is required, it makes 
no difference whether A responds to the questionnaire.
    (xii) A, a U.S. freight forwarder, purchases an exporter's 
guidebook which includes the import requirements of boycotting 
country Y. The guidebook contains descriptions of actions which U.S. 
exporters must take in order to make delivery of goods to Y.
    A's acquisition of the guidebook is not reportable, because he 
has not received a request from anyone.
    (xiii) A, a U.S. freight forwarder, is arranging for the 
shipment of goods to boycotting country Y at the request of B, a 
U.S. exporter. B asks A to assume responsibility to assure that the 
documentation accompanying the shipment is in compliance with Y's 
import requirements. A examines an exporters' guidebook, determines 
that Y's import regulations require a certification that the insurer 
of the goods is not blacklisted and asks U.S. insurer C for such a 
certification.
    B's request to A is reportable by A, because it constitutes a 
request to comply with Y's boycott as of the time A takes action to 
comply with Y's boycott requirements in response to the request. A's 
request to C is reportable by C.
    (xiv) A, a U.S. freight forwarder, is arranging for the shipment 
of U.S. goods to boycotting country Y. The manufacturer supplies A 
with all the necessary documentation to accompany the shipment. 
Among the documents supplied by the manufacturer is his certificate 
that he himself is not blacklisted. A transmits the documentation 
supplied by the manufacturer.
    A's action in merely transmitting documents received from the 
manufacturer is not reportable, because A has received no request to 
comply with Y's boycott.
    (xv) Same as (xiv), except that A is asked by U.S. exporter B to 
assume the responsibility to assure that the necessary documentation 
accompanies the shipment whatever that documentation might be. B 
forwards to A a letter of credit which requires that a negative 
certificate of origin accompany the bill of lading. A supplies a 
positive certificate of origin.
    Both A and B must report receipt of the letter of credit, 
because it contains a request to both of them to comply with Y's 
boycott.
    (xvi) Same as (xiv), except that the manufacturer fails to 
supply a required negative certificate of origin, and A is 
subsequently asked by a consular official of Y to see to it that the 
certificate is supplied. A supplies a positive certificate of 
origin.
    The consular official's request to A is reportable by A, because 
A was asked to comply with Y's boycott requirements by supplying the 
negative certificate of origin.
    (xvii) A, a U.S. manufacturer, is shipping goods to boycotting 
country Y. Arrangements have been made for freight forwarder B to 
handle the shipment and secure all necessary shipping 
certifications. B notes that the letter of credit requires that the 
manufacturer supply a negative certificate of origin and B asks A to 
do so. A supplies a positive certificate of origin.
    B's request to A is reportable by A, because A is asked to 
comply with Y's boycott requirements by providing the negative 
certificate.
    (xviii) A, a controlled foreign subsidiary of U.S. company B, is 
a resident of boycotting country Y. A is engaged in oil exploration 
and drilling operations in Y. In placing orders for drilling 
equipment to be shipped from the United States, A, in compliance 
with Y's laws, selects only those suppliers who are not blacklisted.
    A's action in choosing non-blacklisted suppliers is not 
reportable, because A has not received a request to comply with Y's 
boycott in making these selections.
    (xix) A, a controlled foreign subsidiary of U.S. company B, is 
seeking permission to do business in boycotting country Y. Before 
being granted such permission, A is asked to sign an agreement to 
comply with Y's boycott laws.
    The request to A is reportable, because it is a request that 
expressly requires compliance with Y's boycott law and is received 
in connection with A's anticipated business in Y.
    (xx) A, a U.S. bank, is asked by a firm in boycotting country Y 
to confirm a letter of credit in favor of B, a U.S. company. The 
letter of credit calls for a certificate from B that the goods to be 
supplied are not produced by a firm blacklisted by Y. A informs B of 
the letter of credit, including its certification condition, and 
sends B a copy.
    B must report the certification request contained in the letter 
of credit, and A must report the request to confirm the letter of 
credit containing the boycott condition, because both are being 
asked to comply with Y's boycott.
    (xxi) Same as (xx), except that the letter of credit calls for a 
certificate from the beneficiary that the goods will not be shipped 
on a vessel that will call at a port in boycotted country X before 
making delivery in Y.
    The request is not reportable, because it is a request of a type 
deemed by this section to be in common use for non-boycott purposes.
    (xxii) A, a U.S. company, receives a letter of credit from 
boycotting country Y stating that on no condition may a bank 
blacklisted by Y be permitted to negotiate the credit.
    A's receipt of the letter of credit is reportable, because it 
contains a request to A to comply with Y's boycott requirements.
    (xxiii) A, a U.S. bank, receives a demand draft from B, a U.S. 
company, in connection with B's shipment of goods to boycotting 
country Y. The draft contains a directive that it is valid in all 
countries except boycotted country X.
    A's receipt of the demand draft is reportable, because it 
contains a request to A to comply with Y's boycott requirements.
    (xxiv) A, a U.S. exporter, receives an order from boycotting 
country Y. On the order is a legend that A's goods, invoices, and 
packaging must not bear a six-pointed star or other symbol of 
boycotted country X.
    A's receipt of the order is reportable, because it contains a 
request to comply with Y's boycott requirements.
    (xxv) Same as (xxiv), except the order contains a statement that 
goods exported must not represent part of war reparations to 
boycotted country X.
    A's receipt of the order is reportable, because it contains a 
request to A to comply with Y's boycott requirements.
    (xxvi) A, a U.S. contractor, is negotiating with boycotting 
country Y to build a school in Y. During the course of the 
negotiations, Y suggests that one of the terms of the construction 
contract be that A agree not to import materials produced in 
boycotted country X. It is A's company policy not to agree to such a 
contractual clause, and A suggests that instead it agree that all of 
the necessary materials will be obtained from U.S. suppliers. Y 
agrees to A's suggestion and a contract is executed.
    A has received a reportable request, but, for purposes of 
reporting, the request is deemed to be received when the contract is 
executed.
    (xxvii) Same as (xxvi), except Y does not accept A's suggested 
alternative clause and negotiations break off.
    A's receipt of Y's request is reportable. For purposes of 
reporting, it makes no difference that A was not successful in the 
negotiations. The request is deemed to be received at the time the 
negotiations break off.
    (xxviii) A, a U.S. insurance company, is insuring the shipment 
of drilling equipment to boycotting country Y. The transaction is 
being financed by a letter of credit which requires that A certify 
that it is not blacklisted by Y. Freight forwarder B asks A to 
supply the certification in order to satisfy the requirements of the 
letter of credit.
    The request to A is reportable by A, because it is a request to 
comply with Y's boycott requirements.
    (xxix) A, a U.S. manufacturer, is engaged from time-to-time in 
supplying drilling rigs to company B in boycotting country Y. B 
insists that its suppliers sign contracts which provide that, even 
after title passes from the supplier to B, the supplier will bear 
the risk of loss and indemnify B if goods which the supplier has 
furnished are denied entry into Y for whatever reason. A knows or 
has reason to know that this contractual provision is required by B 
because of Y's boycott, and that B has been using the provision 
since 1977. A receives an order from B which contains such a clause.

[[Page 12891]]

    B's request is not reportable by A, because the request is 
deemed to be not reportable by these regulations if the provision 
was in use by B prior to the effective date of the regulations, 
January 18, 1978.
    (xxx) Same as (xxix), except that A does not know when B began 
using the provision.
    Unless A receives information from B that B introduced the term 
prior to the effective date of the regulations, January 18, 1978, A 
must report receipt of the request.
    (xxxi) A, a U.S. citizen, is a shipping clerk for B, a U.S. 
manufacturing company. In the course of his employment, A receives 
an order for goods from boycotting country Y. The order specifies 
that none of the components of the goods is to be furnished by 
blacklisted firms.
    B must report the request received by its employee, A, acting in 
the scope of his employment. Although A is a U.S. person, such an 
individual does not have a separate obligation to report requests 
received by him in his capacity as an employee of B.
    (xxxii) U.S. exporter A is negotiating a transaction with 
boycotting country Y. A knows that at the conclusion of the 
negotiations he will be asked by Y to supply certain boycott-related 
information and that such a request is reportable. In an effort to 
forestall the request and thereby avoid having to file a report, A 
supplies the information in advance.
    A is deemed to have received a reportable request.
    (xxxiii) A, a controlled foreign affiliate of U.S. company B, 
receives an order for computers from boycotting country Y and 
obtains components from the United States for the purpose of filling 
the order. Y instructs A that a negative certificate of origin must 
accompany the shipment.
    Y's instruction to A regarding the negative certificate of 
origin is reportable by A. Moreover, A may designate B or any other 
person to report on its behalf. However, A remains liable for any 
failure to report or for any representations made on its behalf.
    (xxxiv) U.S. exporter A, in shipping goods to boycotting country 
Y, receives a request from the customer in Y to state on the bill of 
lading that the vessel is allowed to enter Y's ports. The request 
further states that a certificate from the owner or master of the 
vessel to that effect is acceptable.
    The request A received from his customer in Y is not reportable 
if it was received after January 21, 1978, because it is a request 
of a type deemed to be not reportable by these regulations. (A may 
not make such a statement on the bill of lading himself, if he knows 
or has reason to know it is requested for a boycott purpose.
    (xxxv) U.S. exporter A, in shipping goods to boycotting country 
Y, receives a request from the customer in Y to furnish a 
certificate from the owner of the vessel that the vessel is 
permitted to call at Y's ports.
    The request A received from his customer in Y is not reportable 
if it was received after the effective date of these rules, because 
it is a request of a type deemed to be not reportable by these 
regulations.
    (xxxvi) U.S. exporter A, in shipping goods to boycotting country 
Y, receives a request from the customer in Y to furnish a 
certificate from the insurance company indicating that the company 
has a duly authorized representative in country Y and giving the 
name of that representative.
    The request A received from his customer in Y is not reportable 
if it was received after the effective date of these rules, because 
it is a request of a type deemed to be not reportable by these 
regulations.

Supplement No. 1 to Part 760--Interpretations

    It has come to the Department's attention that some U.S. persons 
are being or may be asked to comply with new boycotting country 
requirements with respect to shipping and insurance certifications 
and certificates of origin. It has also come to the Department's 
attention that some U.S. persons are being or may be asked to agree 
to new contractual provisions in connection with certain foreign 
government or foreign government agency contracts. In order to 
maximize its guidance with respect to section 8 of the Export 
Administration Act of 1979, as amended (50 U.S.C. app. 2407) and 
part 760 of the EAR, the Department hereby sets forth its views on 
these certifications and contractual clauses.1

    \1\  The Department originally issued this interpretation 
pursuant to the Export Administration Amendments Act of 1979 (Public 
Law 95-52) and the regulations on restrictive trade practices and 
boycotts (15 CFR part 369) published on January 25, 1978 (43 FR 
3508) and contained in the 15 CFR edition revised as of January 1, 
1979.
---------------------------------------------------------------------------

I. Certifications

    Sec. 760.2(d) of this part prohibits a U.S. person from 
furnishing or knowingly agreeing to furnish:
    ``Information concerning his or any other person's past, present 
or proposed business relationships:
    (i) With or in a boycotted country;
    (ii) With any business concern organized under the laws of a 
boycotted country;
    (iii) With any national or resident of a boycotted country; or
    (iv) With any other person who is known or believed to be 
restricted from having any business relationship with or in a 
boycotting country.''
    This prohibition, like all others under part 760, applies only 
with respect to a U.S. person's activities in the interstate or 
foreign commerce of the United States and only when such activities 
are undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott. (Sec. 760.2(d)(5) of this part.)
    This prohibition does not apply to the furnishing of normal 
business information in a commercial context. ( Sec. 760.2(d)(3) of 
this part). Normal business information furnished in a commercial 
context does not cease to be such simply because the party 
soliciting the information may be a boycotting country or a national 
or resident thereof. If the information is of a type which is 
generally sought for a legitimate business purpose (such as 
determining financial fitness, technical competence, or professional 
experience), the information may be furnished even if the 
information could be used, or without the knowledge of the person 
supplying the information is intended to be used, for boycott 
purposes. (Sec. 760.2(d)(4) of this part).
    The new certification requirements and the Department's 
interpretation of the applicability of part 760 thereto are as 
follows:
    A. Certificate of origin. A certificate of origin is to be 
issued by the supplier or exporting company and authenticated by the 
exporting country, attesting that the goods exported to the 
boycotting country are of purely indigenous origin, and stating the 
name of the factory or the manufacturing company. To the extent that 
the goods as described on the certificate of origin are not solely 
and exclusively products of their country of origin indicated 
thereon, a declaration must be appended to the certificate of origin 
giving the name of the supplier/manufacturer and declaring:
    ``The undersigned, ____________, does hereby declare on behalf 
of the above-named supplier/manufacturer, that certain parts or 
components of the goods described in the attached certificate of 
origin are the products of such country or countries, other than the 
country named therein as specifically indicated hereunder:

Country of Origin and Percentage of Value of Parts or Components 
Relative to Total Shipment

1.---------------------------------------------------------------------
2.---------------------------------------------------------------------
3.---------------------------------------------------------------------
Dated:-----------------------------------------------------------------
Signature--------------------------------------------------------------
    Sworn to before me, this ________ day of ____________, 19 ____. 
Notary Seal.''

Interpretation

    It is the Department's position that furnishing a positive 
certificate of origin, such as the one set out above, falls within 
the exception contained in Sec. 760.3(c) of this part for compliance 
with the import and shipping document requirements of a boycotting 
country. See Sec. 760.3(c) of this part and examples (i) and (ii) 
thereunder.
    B. Shipping certificate. A certificate must be appended to the 
bill of lading stating: (1) Name of vessel; (2) Nationality of 
vessel; and (3) Owner of vessel, and declaring:
    ``The undersigned does hereby declare on behalf of the owner, 
master, or agent of the above-named vessel that said vessel is not 
registered in the boycotted country or owned by nationals or 
residents of the boycotted country and will not call at or pass 
through any boycotted country port enroute to its boycotting country 
destination.
    ``The undersigned further declares that said vessel is otherwise 
eligible to enter into the ports of the boycotting country in 
conformity with its laws and regulations.
    Sworn to before me, this ________ day of __________, 19 ____. 
Notary Seal.''

Interpretation

    It is the Department's position that furnishing a certificate, 
such as the one set out above, stating: (1) The name of the vessel, 
(2) The nationality of the vessel, and (3) The owner of the vessel 
and further declaring that the vessel: (a) Is not registered in a 
boycotted country, (b) Is not owned by nationals or

[[Page 12892]]
residents of a boycotted country, and (c) Will not call at or pass 
through a boycotted country port enroute to its destination in a 
boycotting country falls within the exception contained in 
Sec. 760.3(b) of this part for compliance with the import and 
shipping document requirements of a boycotting country. See 
Sec. 760.3(b) of this part and examples (vii), (viii), and (ix) 
thereunder.
    It is also the Department's position that the owner, charterer, 
or master of a vessel may certify that the vessel is ``eligible'' or 
``otherwise eligible'' to enter into the ports of a boycotting 
country in conformity with its laws and regulations. Furnishing such 
a statement pertaining to one's own eligibility offends no 
prohibition under part 760. See Sec. 760.2(f) of this part, example 
(xiv).
    On the other hand, where a boycott is in force, a declaration 
that a vessel is ``eligible'' or ``otherwise eligible'' to enter the 
ports of the boycotting country necessarily conveys the information 
that the vessel is not blacklisted or otherwise restricted from 
having a business relationship with the boycotting country. See 
Sec. 760.3(b) of this part, examples (vi), (xi), and (xii). Where a 
person other than the vessel's owner, charterer, or master furnishes 
such a statement, that is tantamount to his furnishing a statement 
that he is not doing business with a blacklisted person or is doing 
business only with nonblacklisted persons. Therefore, it is the 
Department's position that furnishing such a certification (which 
does not reflect customary international commercial practice) by 
anyone other than the owner, charterer, or master of a vessel would 
fall within the prohibition set forth in Sec. 760.2(d) of this part 
unless it is clear from all the facts and circumstances that the 
certification is not required for a boycott reason. See 
Sec. 760.2(d)(3) and (4) of this part. However, in accordance with 
the exception contained in Sec. 760.3(c) of this part for compliance 
with the import and shipping document requirements of a boycotting 
country, such a United States person may furnish such a 
certification until June 21, 1978.
    C. Insurance certificate. A certificate must be appended to the 
insurance policy stating: (1) Name of insurance company; (2) Address 
of its principal office; and (3) Country of its incorporation, and 
declaring:
    ``The undersigned, ________________, does hereby certify on 
behalf of the above-named insurance company that the said company 
has a duly qualified and appointed agent or representative in the 
boycotting country whose name and address appear below:
    Name of agent/representative and address in the boycotting 
country.
    Sworn to before me this ________ day of ____________, 19____. 
Notary Seal.''

Interpretation

    It is the Department's position that furnishing the name of the 
insurance company falls within the exception contained in 
Sec. 760.3(c) of this part for compliance with the import and 
shipping document requirements of a boycotting country. See 
Sec. 760.3(c)(1)(v) of this part and examples (v) and (x) 
thereunder. In addition, it is the Department's position that 
furnishing a certificate, such as the one set out above, stating the 
address of the insurance company's principal office and its country 
of incorporation offends no prohibition under part 760 unless the 
U.S. person furnishing the certificate knows or has reason to know 
that the information is sought for the purpose of determining that 
the insurance company is neither headquartered nor incorporated in a 
boycotted country. See Sec. 760.2(d)(1)(i) of this part.
    It is also the Department's position that the insurer, himself, 
may certify that he has a duly qualified and appointed agent or 
representative in the boycotting country and may furnish the name 
and address of his agent or representative. Furnishing such a 
statement pertaining to one's own status offends no prohibition 
under part 760. See Sec. 760.2(f) of this part, example (xiv).
    On the other hand, where a boycott is in force, a declaration 
that an insurer ``has a duly qualified and appointed agent or 
representative'' in the boycotting country necessarily conveys the 
information that the insurer is not blacklisted or otherwise 
restricted from having a business relationship with the boycotting 
country. See Sec. 760.3(c) of this part, example (v). Therefore, it 
is the Department's position that furnishing such a certification by 
anyone other than the insurer would fall within the prohibition set 
forth in Sec. 760.2(d) of this part unless it is clear from all the 
facts and circumstances that the certification is not required for a 
boycott reason. See Sec. 760.2(d) (3) and (4) of this part. However, 
in accordance with the exception contained in Sec. 760.3(c) of this 
part for compliance with the import and shipping document 
requirements of a boycotting country, such a U.S. person may furnish 
such a certification until June 21, 1978.

II. Contractual Clauses

    The new contractual requirements and the Department's 
interpretation of the applicability of part 760 thereto are as 
follows:
    A. Contractual clause regarding import laws of boycotting 
country. ``In connection with the performance of this contract the 
Contractor/Supplier acknowledges that the import and customs laws 
and regulations of the boycotting country shall apply to the 
furnishing and shipment of any products or components thereof to the 
boycotting country. The Contractor/Supplier specifically 
acknowledges that the aforementioned import and customs laws and 
regulations of the boycotting country prohibit, among other things, 
the importation into the boycotting country of products or 
components thereof: (1) Originating in the boycotted country; (2) 
Manufactured, produced, or furnished by companies organized under 
the laws of the boycotted country; and (3) Manufactured, produced, 
or furnished by nationals or residents of the boycotted country.''

Interpretation

    It is the Department's position that an agreement, such as the 
one set out in the first sentence above, that the import and customs 
requirements of a boycotting country shall apply to the performance 
of a contract does not, in and of itself, offend any prohibition 
under Part 760. See Sec. 760.2(a)(5) of this part and example (iii) 
under ``Examples of Agreements To Refuse To Do Business.'' It is 
also the Department's position that an agreement to comply generally 
with the import and customs requirements of a boycotting country 
does not, in and of itself, offend any prohibition under part 760 of 
this part. See Sec. 760.2(a)(5) of this part and examples (iv) and 
(v) under ``Examples of Agreements To Refuse To Do Business.'' In 
addition, it is the Department's position that an agreement, such as 
the one set out in the second sentence above, to comply with the 
boycotting country's import and customs requirements prohibiting the 
importation of products or components: (1) Originating in the 
boycotted country; (2) Manufactured, produced, or furnished by 
companies organized under the laws of the boycotted country; or (3) 
Manufactured, produced, or furnished by nationals or residents of 
the boycotted country falls within the exception contained in 
Sec. 760.3(a) of this part for compliance with the import 
requirements of a boycotting country. See Sec. 760.3(a) of this part 
and example (ii) thereunder.
    The Department notes that, after June 21, 1978, a United States 
person may not furnish a negative certification regarding the origin 
of goods or their components even though the certification is 
furnished in response to the import and shipping document 
requirements of the boycotting country. See Sec. 760.3(c) of this 
part and examples (i), (ii), and (iii) thereunder, and Sec. 760.3(a) 
of this part and example (ii) thereunder.
    B. Contractual clause regarding unilateral and specific 
selection. ``The Government of the boycotting country (or the First 
Party), in its exclusive power, reserves its right to make the final 
unilateral and specific selection of any proposed carriers, 
insurers, suppliers of services to be performed within the 
boycotting country, or of specific goods to be furnished in 
accordance with the terms and conditions of this contract.''

Interpretation

    It is the Department's position that an agreement, such as the 
one set out above, falls within the exception contained in 
Sec. 760.3(d) of this part for compliance with unilateral 
selections. However, the Department notes that whether a U.S. person 
may subsequently comply or agree to comply with any particular 
selection depends upon whether that selection meets all the 
requirements contained in Sec. 760.3(d) of this part for compliance 
with unilateral selections. For example, the particular selection 
must be unilateral and specific, particular goods must be 
specifically identifiable as to their source or origin at the time 
of their entry into the boycotting country, and all other 
requirements contained in Sec. 760.3(d) of this part must be 
observed.

Supplement No. 2 to Part 760--Interpretation

    The Department hereby sets forth its views on whether the 
furnishing of certain shipping and insurance certificates in 
compliance with boycotting country requirements violates the 
provisions of section 8 of the Export

[[Page 12893]]
Administration Act of 1979, as amended (50 U.S.C. app. 2407) and 
part 760 of the EAR,1 as follows:

    \1\ The Department originally issued this interpretation on 
April 21, 1978 (43 FR 16969) pursuant to the Export Administration 
Amendments Act of 1977 (Public Law 95-52) and the regulations on 
restrictive trade practices and boycotts (15 CFR part 369) published 
on January 25, 1978 (43 FR 3508) and contained in the 15 CFR edition 
revised as of January 1, 1979.
---------------------------------------------------------------------------

    (i) ``The owner, charterer or master of a vessel may certify 
that the vessel is `eligible' or `otherwise eligible' to enter into 
the ports of a boycotting country in conformity with its laws and 
regulations;''
    (ii) ``The insurer, himself, may certify that he has a duly 
qualified and appointed agent or representative in the boycotting 
country and may furnish the name and address of his agent or 
representative.''
    Furnishing such certifications by anyone other than:
    (i) The owner, charterer or master of a vessel, or
    (ii) The insurer would fall within the prohibition set forth in 
Sec. 760.2(d) of this part, ``unless it is clear from all the facts 
and circumstances that these certifications are not required for a 
boycott reason.'' See Sec. 760.2(d) (3) and (4) of this part.
    The Department has received from the Kingdom of Saudi Arabia a 
clarification that the shipping and insurance certifications are 
required by Saudi Arabia in order to:
    (i) Demonstrate that there are no applicable restrictions under 
Saudi laws or regulations pertaining to maritime matters such as the 
age of the ship, the condition of the ship, and similar matters that 
would bar entry of the vessel into Saudi ports; and
    (ii) Facilitate dealings with insurers by Saudi Arabian 
importers whose ability to secure expeditious payments in the event 
of damage to insured goods may be adversely affected by the absence 
of a qualified agent or representative of the insurer in Saudi 
Arabia. In the Department's judgment, this clarification constitutes 
sufficient facts and circumstances to demonstrate that the 
certifications are not required by Saudi Arabia for boycott reasons.
    On the basis of this clarification, it is the Department's 
position that any United States person may furnish such shipping and 
insurance certificates required by Saudi Arabia without violating 
Sec. 760.2(d) of this part. Moreover, under these circumstances, 
receipt of requests for such shipping and insurance certificates 
from Saudi Arabia is not reportable.
    It is still the Department's position that furnishing such a 
certificate pertaining to one's own eligibility offends no 
prohibition under part 760. See Sec. 760.2(f) of this part, example 
(xiv). However, absent facts and circumstances clearly indicating 
that the certifications are required for ordinary commercial reasons 
as demonstrated by the Saudi clarification, furnishing 
certifications about the eligibility or blacklist status of any 
other person would fall within the prohibition set forth in 
Sec. 760.2(d) of this part, and receipt of requests for such 
certifications is reportable.
    It also remains the Department's position that where a United 
States person asks an insurer or carrier of the exporter's goods to 
self-certify, such request offends no prohibition under this part. 
However, where a United States person asks anyone other than an 
insurer or carrier of the exporter's goods to self-certify, such 
requests will be considered by the Department as evidence of the 
requesting person's refusal to do business with those persons who 
cannot or will not furnish such a self-certification. For example, 
if an exporter-beneficiary of a letter of credit asks his component 
suppliers to self-certify, such a request will be considered as 
evidence of his refusal to do business with those component 
suppliers who cannot or will not furnish such a self-certification.
    The Department wishes to emphasize that notwithstanding the fact 
that self-certifications are permissible, it will closely scrutinize 
the activities of all United States persons who provide such self-
certifications, including insurers and carriers, to determine that 
such persons have not taken any prohibited actions or entered into 
any prohibited agreements in order to be able to furnish such 
certifications.

Supplement No. 3 to Part 760--Interpretation

    Pursuant to Article 2, Annex II of the Peace Treaty between 
Egypt and Israel, Egypt's participation in the Arab economic boycott 
of Israel was formally terminated on January 25, 1980. On the basis 
of this action, it is the Department's position that certain 
requests for information, action or agreement which were considered 
boycott-related by implication now cannot be presumed boycott-
related and thus would not be prohibited or reportable under the 
Regulations. For example, a request that an exporter certify that 
the vessel on which it is shipping its goods is eligible to enter 
Arab Republic of Egypt ports has been considered a boycott-related 
request that the exporter could not comply with because Egypt has a 
boycott in force against Israel (see 43 FR 16969, April 21, 1978 or 
the 15 CFR edition revised as of January 1, 1979). Such a request 
after January 25, 1980 would not be presumed boycott-related because 
the underlying boycott requirement/basis for the certification has 
been eliminated. Similarly, a U.S. company would not be prohibited 
from complying with a request received from Egyptian government 
officials to furnish the place of birth of employees the company is 
seeking to take to Egypt, because there is no underlying boycott law 
or policy that would give rise to a presumption that the request was 
boycott-related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to the 
Regulations, irrespective of the country or origin. For example, 
requests containing references to ``blacklisted companies'', 
``Israel boycott list'', ``non-Israeli goods'' or other phrases or 
words indicating boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations.

Supplement No. 4 to Part 760--Interpretation

    The question has arisen how the definition of U.S. commerce in 
the antiboycott regulations (15 CFR part 760) applies to a shipment 
of foreign-made goods when U.S.-origin spare parts are included in 
the shipment. Specifically, if the shipment of foreign goods falls 
outside the definition of U.S. commerce, will the inclusion of U.S.-
origin spare parts bring the entire transaction into U.S. commerce?
    Section 760.1(d)(12) of this part provides the general 
guidelines for determining when U.S.-origin goods shipped from a 
controlled in fact foreign subsidiary are outside U.S. commerce. The 
two key tests of that provision are that the goods were (1) acquired 
without reference to a specific order, and (2) further manufactured, 
incorporated or reprocessed into another product. Because the 
application of these two tests to spare parts does not conclusively 
answer the U.S. commerce question, the Department is presenting this 
clarification.
    In the cases brought to the Department's attention, an order for 
foreign-origin goods was placed with a controlled in fact foreign 
subsidiary of a United States company. The foreign goods contained 
components manufactured in the United States and in other countries, 
and the order included a request for extras of the U.S. manufactured 
components (spare parts) to allow the customer to repair the item. 
Both the foreign manufactured product and the U.S. spare parts were 
to be shipped from the general inventory of the foreign subsidiary. 
Since the spare parts, if shipped by themselves, would be in U.S. 
commerce as that term is defined in the Regulations, the question 
was whether including them with the foreign manufactured item would 
bring the entire shipment into U.S. commerce. The Department has 
decided that it will not and presents the following specific 
guidance.
    As used above, the term ``spare parts'' refers to parts of the 
quantities and types normally and customarily ordered with a product 
and kept on hand in the event they are needed to assure prompt 
repair of the product. Parts, components or accessories that improve 
or change the basic operations or design characteristics, for 
example, as to accuracy, capability or productivity, are not spare 
parts under this definition.
    Inclusion of U.S.-origin spare parts in a shipment of products 
which is otherwise outside U.S. commerce will not bring the 
transaction into U.S. commerce if the following conditions are met:
    (I) The parts included in the shipment are acquired from the 
United States by the controlled in fact foreign subsidiary without 
reference to a specific order from or transaction with a person 
outside the United States;
    (II) The parts are identical to the corresponding United States-
origin parts which have been manufactured, incorporated into or 
reprocessed into the completed product;
    (III) The parts are of the quantity and type normally and 
customarily ordered with the completed product and kept on hand by 
the

[[Page 12894]]
firm or industry of which the firm is a part to assure prompt repair 
of the product; and
    (IV) The parts are covered by the same order as the completed 
product and are shipped with or at the same time as the original 
product.
    The Department emphasizes that unless each of the above 
conditions is met, the inclusion of United States-origin spare parts 
in an order for a foreign-manufactured or assembled product will 
bring the entire transaction into the interstate or foreign commerce 
of the United States for purposes of part 760.

Supplement No. 5 to Part 760--Interpretation

A. Permissible Furnishing of Information

    The information outlined below may be furnished in response to 
boycott-related requests from boycotting countries or others. This 
information is, in the view of the Department, not prohibited by the 
Regulations. Thus, a person does not have to qualify under any of 
the exceptions to be able to make the following statements. Such 
statements can be made, however, only by the person indicated and 
under the circumstances described. These statements should not be 
used as a point of departure or analogy for determining the 
permissibility of other types of statements. The Department's view 
that these statements are not contrary to the prohibitions contained 
in antiboycott provisions of the Regulations is limited to the 
specific statement in the specific context indicated.
    1. A U.S. person may always provide its own name, address, place 
of incorporation (``nationality''), and nature of business.
    2. A U.S. person may state that it is not on a blacklist, or 
restricted from doing business in a boycotting country. A company 
may not make that statement about its subsidiaries or affiliates--
only about itself. A U.S. person may not say that there is no reason 
for it to be blacklisted. To make that statement would provide 
directly or by implication information that may not be provided. A 
U.S. person may inquire about the reasons it is blacklisted if it 
learns that it is on a blacklist (see Sec. 760.2(d) of this part 
example (xv)).
    3. A U.S. person may describe in detail its past dealings with 
boycotting countries; may state in which boycotting countries its 
trademarks are registered; and may specify in which boycotting 
countries it is registered or qualified to do business. In general, 
a U.S. person is free to furnish any information it wishes about the 
nature and extent of its commercial dealings with boycotting 
countries.
    4. A U.S. person may state that many U.S. firms or individuals 
have similar names and that it believes that it may be confused with 
a similarly named entity. A U.S. person may not state that it does 
or does not have an affiliation or relationship with such similarly 
named entity.
    5. A U.S. person may state that the information requested is a 
matter of public record in the United States. However, the person 
may not direct the inquirer to the location of that information, nor 
may the U.S. person provide or cause to be provided such 
information.

B. Availability of the Compliance With Local Law Exception to 
Establish a Foreign Branch

    Section 760.3(f) of this part, the Compliance With Local Law 
exception, permits U.S. persons, who are bona fide residents of a 
boycotting country, to take certain limited, but otherwise 
prohibited, actions, if they are required to do so in order to 
comply with local law.
    Among these actions is the furnishing of non-discriminatory 
information. Examples (iv) through (vi) under ``Examples of Bona 
Fide Residency'' indicate that a company seeking to become a bona 
fide resident within a boycotting country may take advantage of the 
exception for the limited purpose of furnishing information required 
by local law to obtain resident status. Exactly when and how this 
exception is available has been the subject of a number of 
inquiries. It is the Department's view that the following conditions 
must be met for a non-resident company to be permitted to furnish 
otherwise prohibited information for the limited purpose of seeking 
to become a bona fide resident:
    1. The company must have a legitimate business reason for 
seeking to establish a branch or other resident operation in the 
boycotting country. (Removal from the blacklist does not constitute 
such a reason.)
    2. The local operation it seeks to establish must be similar or 
comparable in nature and operation to ones the company operates in 
other parts of the world, unless local law or custom dictates a 
significantly different form.
    3. The person who visits the boycotting country to furnish the 
information must be the official whose responsibility ordinarily 
includes the creation and registration of foreign operations (i.e., 
the chairman of the board cannot be flown in to answer boycott 
questions unless the chairman of the board is the corporate official 
who ordinarily goes into a country to handle foreign registrations).
    4. The information provided must be that which is ordinarily 
known to the person establishing the foreign branch. Obviously, at 
the time of establishment, the foreign branch will have no 
information of its own knowledge. Rather, the information should be 
that which the responsible person has of his own knowledge, or that 
he would have with him as incidental and necessary to the 
registration and establishment process. As a general rule, such 
information would not include such things as copies of agreements 
with boycotted country concerns or detailed information about the 
person's dealings with blacklisted concerns.
    5. It is not necessary that documents prepared in compliance 
with this exception be drafted or executed within the boycotting 
country. The restrictions on the type of information which may be 
provided and on who may provide it apply regardless of where the 
papers are prepared or signed.

Supplement No. 6 to Part 760--Interpretation

    The antiboycott regulations prohibit knowing agreements to 
comply with certain prohibited requests and requirements of 
boycotting countries, regardless of how these terms are stated. 
Similarly, the reporting rules require that a boycott related 
``solicitation, directive, legend or instruction that asks for 
information or that asks that a United States person take or refrain 
from taking a particular action'' be reported. Questions have 
frequently arisen about how particular requirements in the form of 
directive or instructions are viewed under the antiboycott 
regulations, and we believe that it will add clarity to the 
regulations to provide a written interpretation of how three of 
these terms are treated under the law. The terms in question appear 
frequently in letters of credit, but may also be found on purchase 
orders or other shipping or sale documents. They have been brought 
to the attention of the Department by numerous persons. The terms 
are, or are similar to, the following: (1) Goods of boycotted 
country origin are prohibited; (2) No six-pointed stars may be used 
on the goods, packing or cases; (3) Neither goods nor packing shall 
bear any symbols prohibited in the boycotting country.
    (a) Goods of boycotted country origin prohibited. This term is 
very common in letters of credit from Kuwait and may also appear 
from time-to-time in invitations to bid, contracts, or other trade 
documents. It imposes a condition or requirement compliance with 
which is prohibited, but permitted by an exception under the 
Regulations (see Sec. 760.2(a) and Sec. 760.3(b) of this part). It 
is reportable by those parties to the letter of credit or other 
transaction that are required to take or refrain from taking some 
boycott related action by the request. Thus the bank must report the 
request because it is a term or condition of the letter of credit 
that it is handling, and the exporter-beneficiary must report the 
request because the exporter determines the origin of the goods. The 
freight forwarder does not have to report this request because the 
forwarder has no role or obligation in this part of the transaction. 
See Sec. 760.5, examples (xiii)-(xv) of this part.
    (b) No six-pointed stars may be used on the goods, packing or 
cases. This term appears from time-to-time on documents from a 
variety of countries. The Department has taken the position that the 
six-pointed star is a religious symbol. See Sec. 760.2(b), example 
(viii) of this part. Agreeing to this term is prohibited by the 
Regulations and not excepted because it constitutes an agreement to 
furnish information about the religion of a U.S. person. See 
Sec. 760.2(c) of this part. If a person proceeds with a transaction 
in which this is a condition at any stage of the transaction, that 
person has agreed to the condition in violation of the Regulations. 
It is not enough to ignore the condition. Exception must 
affirmatively be taken to this term or it must be stricken from the 
documents of the transaction. It is reportable by all parties to the 
transaction that are restricted by it. For example, unlike the 
situation described in (a) above, the freight forwarder would have 
to report this request because his role in the transaction would 
involve preparation of the packing and cases. The bank and exporter 
would both have to report, of course, if it were a term in a letter 
of credit. Each party would be obligated affirmatively to seek an 
amendment or deletion of the term.

[[Page 12895]]

    (c) Neither goods nor packaging shall bear any symbols 
prohibited in the boycotting country. This term appears from time-
to-time in letters of credit and shipping documents from Saudi 
Arabia. In our view, it is neither prohibited, nor reportable 
because it is not boycott-related. There is a wide range of symbols 
that are prohibited in Saudi Arabia for a variety of reasons, many 
having to do with that nation's cultural and religious beliefs. On 
this basis, we do not interpret the term to be boycott related. See 
Sec. 760.2(a)(5) and Sec. 760.5(a)(5)(v) of this part.

Supplement No. 7 to Part 760--Interpretation

Prohibited Refusal To Do Business

    When a boycotting country rejects for boycott-related reasons a 
shipment of goods sold by a United States person, the United States 
person selling the goods may return them to its inventory or may re-
ship them to other markets (the United States person may not return 
them to the original supplier and demand restitution). The U.S. 
person may then make a non-boycott based selection of another 
supplier and provide the goods necessary to meet its obligations to 
the boycotting customer in that particular transaction without 
violating Sec. 760.2(a) of this part. If the United States person 
receives another order from the same boycotting country for similar 
goods, the Department has determined that a boycott-based refusal by 
a United States person to ship goods from the supplier whose goods 
were previously rejected would constitute a prohibited refusal to do 
business under Sec. 760.2(a) of this part. The Department will 
presume that filling such an order with alternative goods is 
evidence of the person's refusal to deal with the original supplier.
    The Department recognizes the limitations this places on future 
transactions with a boycotting country once a shipment of goods has 
been rejected. Because of this, the Department wishes to point out 
that, when faced with a boycotting country's refusal to permit entry 
of the particular goods, a United States person may state its 
obligation to abide by the requirements of United States law and 
indicate its readiness to comply with the unilateral and specific 
selection of goods by the boycotting country in accordance with 
Sec. 760.3(c) of this part. That section provides, in pertinent 
part, as follows:
    A United States person may comply or agree to comply in the 
normal course of business with the unilateral and specific selection 
by a boycotting country ________ of ________ specific goods, 
________ provided that ________ with respect to goods, the items, in 
the normal course of business, are identifiable as to their source 
or origin at the time of their entry into the boycotting country by 
(a) uniqueness of design or appearance or (b) trademark, trade name, 
or other identification normally on the items themselves, including 
their packaging.
    The United States person may also provide certain services in 
advance of the unilateral selection by the boycotting country, such 
as the compilation of lists of qualified suppliers, so long as such 
services are customary to the type of business the United States 
person is engaged in, and the services rendered are completely non-
exclusionary in character (i.e., the list of qualified suppliers 
would have to include the supplier whose goods had previously been 
rejected by the boycotting country, if they were fully qualified). 
See Sec. 760.2(a)(6) of this part for a discussion of the 
requirements for the provision of these services.
    The Department wishes to emphasize that the unilateral selection 
exception in Sec. 760.3(d) of this part will be construed narrowly, 
and that all its requirements and conditions must be met, including 
the following:

--Discretion for the selection must be exercised by a boycotting 
country; or by a national or resident of a boycotting country;
--The selection must be stated in the affirmative specifying a 
particular supplier of goods;
--While a permissible selection may be boycott based, if the United 
States person knows or has reason to know that the purpose of the 
selection is to effect discrimination against any United States 
person on the basis of race, religion, sex, or national origin, the 
person may not comply under any circumstances.

    The Department cautions United States persons confronted with 
the problem or concern over the boycott-based rejection of goods 
shipped to a boycotting country that the adoption of devices such as 
``risk of loss'' clauses, or conditions that make the supplier 
financially liable if his or her goods are rejected by the 
boycotting country for boycott reasons are presumed by the 
Department to be evasion of the statute and regulations, and as such 
are prohibited by Sec. 760.4 of this part, unless adopted prior to 
January 18, 1978. See Sec. 760.4(d) of this part.

Supplement No. 8 to Part 760--Interpretation

Definition of Interstate or Foreign Commerce of the United States

    When United States persons (as defined by the antiboycott 
regulations) located within the United States purchase or sell goods 
or services located outside the United States, they have engaged in 
an activity within the foreign commerce of the United States. 
Although the goods or services may never physically come within the 
geographic boundaries of the several states or territories of the 
United States, legal ownership or title is transferred from a 
foreign nation to the United States person who is located in the 
United States. In the case of a purchase, subsequent resale would 
also be within United States commerce.
    It is the Department's view that the terms ``sale'' and 
``purchase'' as used in the regulations are not limited to those 
circumstances where the goods or services are physically transferred 
to the person who acquires title. The EAR define the activities that 
serve as the transactional basis for U.S. commerce as those 
involving the ``sale, purchase, or transfer'' of goods or services. 
In the Department's view, as used in the antiboycott regulations, 
``transfer'' contemplates physical movement of the goods or services 
between the several states or territories and a foreign country, 
while ``sale'' and ``purchase'' relate to the movement of ownership 
or title.
    This interpretation applies only to those circumstances in which 
the person located within the United States buys or sells goods or 
services for its own account. Where the United States person is 
engaged in the brokerage of foreign goods, i.e., bringing foreign 
buyers and sellers together and assisting in the transfer of the 
goods, the sale or purchase itself would not ordinarily be 
considered to be within U.S. commerce. The brokerage service, 
however, would be a service provided from the United States to the 
parties and thus an activity within U.S. commerce and subject to the 
antiboycott laws. See Sec. 760.1(d)(13) of this part.
    The Department cautions that United States persons who alter 
their normal pattern of dealing to eliminate the passage of 
ownership of the goods or services to or from the several states or 
territories of the United States in order to avoid the application 
of the antiboycott regulations would be in violation of Sec. 760.4 
of this part.

Supplement No. 9 to Part 760--Interpretation

Activities Exclusively Within a Boycotting Country--Furnishing 
Information

    Sec. 760.3(h) of this part provides that a United States person 
who is a bona fide resident of a boycotting country may comply with 
the laws of that country with respect to his or her activities 
exclusively within the boycotting country. Among the types of 
conduct permitted by this exception is ``furnishing information 
within the host country'' Sec. 760.3(h)(1)(v) of this part. For 
purposes of the discussion which follows, the Department is assuming 
that the person in question is a bona fide resident of the 
boycotting country as defined in Sec. 760.3(f) of this part, and 
that the information to be provided is required by the laws or 
regulations of the boycotting country, as also defined in 
Sec. 760.3(g) of this part. The only issue this interpretation 
addresses is under what circumstances the provision of information 
is ``an activity exclusively within the boycotting country.''
    The activity of ``furnishing information'' consists of two 
parts, the acquisition of the information and its subsequent 
transmittal. Under the terms of this exception, the information may 
not be acquired outside the country for the purpose of responding to 
the requirement for information imposed by the boycotting country. 
Thus, if an American company which is a bona fide resident of a 
boycotting country is required to provide information about its 
dealings with other U.S. firms, the company may not ask its parent 
corporation in the United States for that information, or make any 
other inquiry outside the boundaries of the boycotting country. The 
information must be provided to the boycotting country authorities 
based on information or knowledge available to the company and its 
personnel located within the boycotting country at the time the 
inquiry is received. See Sec. 760.3, (h) of this part, examples 
(iii), (iv), and (v). Much of the information in the company's 
possession (transaction and corporate records) may have

[[Page 12896]]
actually originated outside the boycotting country, and much of the 
information known to the employees may have been acquired outside 
the boycotting country. This will not cause the information to fall 
outside the coverage of this exception, if the information was sent 
to the boycotting country or acquired by the individuals in normal 
commercial context prior to and unrelated to a boycott inquiry or 
purpose. It should be noted that if prohibited information (about 
business relations with a boycotted country, for example) has been 
forwarded to the affiliate in the boycotting country in anticipation 
of a possible boycott inquiry from the boycotting country 
government, the Department will not regard this as information 
within the knowledge of the bona fide resident under the terms of 
the exception. However, if the bona fide resident possesses the 
information prior to receipt of a boycott-related inquiry and 
obtained it in a normal commercial context, the information can be 
provided pursuant to this exception notwithstanding the fact that, 
at some point, the information came into the boycotting country from 
the outside.
    The second part of the analysis of ``furnishing information'' 
deals with the limitation on the transmittal of the information. It 
can only be provided within the boundaries of the boycotting 
country. The bona fide resident may only provide the information to 
the party that the boycotting country law requires (directly or 
through an agent or representative within the country) so long as 
that party is located within the boycotting country. This 
application of the exception is somewhat easier, since it is 
relatively simple to determine if the information is to be given to 
somebody within the country.
    Note that in discussing what constitutes furnishing information 
``exclusively within'' the boycotting country, the Department does 
not address the nature of the transaction or activity that the 
information relates to. It is the Department's position that the 
nature of the transaction, including the inception or completion of 
the transaction, is not material in analyzing the availability of 
this exception.
    For example, if a shipment of goods imported into a boycotting 
country is held up at the time of entry, and information from the 
bona fide resident within that country is legally required to free 
those goods, the fact that the information may relate to a 
transaction that began outside the boycotting country is not 
material. The availability of the exception will be judged based on 
the activity of the bona fide resident within the country. If the 
resident provides that information of his or her own knowledge, and 
provides it to appropriate parties located exclusively within the 
country, the exception permits the information to be furnished.
    Factual variations may raise questions about the application of 
this exception and the effect of this interpretation. In an effort 
to anticipate some of these, the Department has set forth below a 
number of questions and answers. They are incorporated as a part of 
this interpretation.
    1. Q. Under this exception, can a company which is a U.S. person 
and a bona fide resident of the boycotting country provide 
information to the local boycott office?
    A. Yes, if local law requires the company to provide this 
information to the boycott office and all the other requirements are 
met.
    2. Q. If the company knows that the local boycott office will 
forward the information to the Central Boycott Office, may it still 
provide the information to the local boycott office?
    A. Yes, if it is required by local law to furnish the 
information to the local boycott office and all the other 
requirements are met. The company has no control over what happens 
to the information after it is provided to the proper authorities. 
(There is obvious potential for evasion here, and the Department 
will examine such occurrences closely.)
    3. Q. Can a U.S. person who is a bona fide resident of Syria 
furnish information to the Central Boycott Office in Damascus?
    A. No, unless the law in Syria specifically requires information 
to be provided to the Central Boycott Office the exception will not 
apply. Syria has a local boycott office responsible for enforcing 
the boycott in that country.
    4. Q. If a company which is a U.S. person and a bona fide 
resident of the boycotting country has an import shipment held up in 
customs of the boycotting country, and is required to provide 
information about the shipment to get it out of customs, may the 
company do so?
    A. Yes, assuming all other requirements are met. The act of 
furnishing the information is the activity taking place exclusively 
within the boycotting country. The fact that the information is 
provided corollary to a transaction that originates or terminates 
outside the boycotting country is not material.
    5. Q. If the U.S. person and bona fide resident of the 
boycotting country is shipping goods out of the boycotting country, 
and is required to certify to customs officials of the country at 
the time of export that the goods are not of Israeli origin, may he 
do so even though the certification relates to an export 
transaction?
    A. Yes, assuming all other requirements are met. See number 4 
above.

Supplement No. 10 to Part 760--Interpretation

    (a) The words ``Persian Gulf'' cannot appear on the document.
    This term is common in letters of credit from Kuwait and may be 
found in letters of credit from Bahrain. Although more commonly 
appearing in letters of credit, the term may also appear in other 
trade documents.
    It is the Department's view that this term reflects a historical 
dispute between the Arabs and the Iranians over geographic place 
names which in no way relates to existing economic boycotts. Thus, 
the term is neither prohibited nor reportable under the Regulations.
    (b) Certify that goods are of U.S.A. origin and contain no 
foreign parts.
    This term appears periodically on documents from a number of 
Arab countries. It is the Department's position that the statement 
is a positive certification of origin and, as such, falls within the 
exception contained in Sec. 760.3(c) of this part for compliance 
with the import and shipping document requirements of a boycotting 
country. Even though a negative phrase is contained within the 
positive clause, the phrase is a non exclusionary, non blacklisting 
statement. In the Department's view, the additional phrase does not 
affect the permissible status of the positive certificate, nor does 
it make the request reportable Sec. 760.5(a)(5)(iii) of this part.
    (c) Legalization of documents by any Arab consulate except 
Egyptian Consulate permitted.
    This term appears from time to time in letters of credit but 
also may appear in various other trade documents requiring 
legalization and thus is not prohibited, and a request to comply 
with the statement is not reportable. Because a number of Arab 
states do not have formal diplomatic relations with Egypt, they do 
not recognize Egyptian embassy actions. The absence of diplomatic 
relations is the reason for the requirement. In the Department's 
view this does not constitute an unsanctioned foreign boycott or 
embargo against Egypt under the terms of the Export Administration 
Act. Thus the term is not prohibited, and a request to comply with 
the statement is not reportable.

Supplement No. 11 to Part 760--Interpretation

Definition of Unsolicited Invitation to Bid

    Sec. 760.5(a)(4) of this part states in part:
    In addition, a United States person who receives an unsolicited 
invitation to bid, or similar proposal, containing a boycott request 
has not received a reportable request for purposes of this section 
where he does not respond to the invitation to bid or other 
proposal.
    The Regulations do not define ``unsolicited'' in this context. 
Based on review of numerous situations, the Department has developed 
certain criteria that it applies in determining if an invitation to 
bid or other proposal received by a U.S. person is in fact 
unsolicited.
    The invitation is not unsolicited if, during a commercially 
reasonable period of time preceding the issuance of the invitation, 
a representative of the U.S. person contacted the company or agency 
involved for the purpose of promoting business on behalf of the 
company.
    The invitation is not unsolicited if the U.S. person has 
advertised the product or line of products that are the subject of 
the invitation in periodicals or publications that ordinarily 
circulate to the country issuing the invitation during a 
commercially reasonable period of time preceding the issuance of the 
invitation.
    The invitation is not unsolicited if the U.S. person has sold 
the same or similar products to the company or agency issuing the 
invitation within a commercially reasonable period of time before 
the issuance of the current invitation.
    The invitation is not unsolicited if the U.S. person has 
participated in a trade mission to or trade fair in the country 
issuing the invitation within a commercially reasonable

[[Page 12897]]
period of time before the issuance of the invitation.
    Under Sec. 760.5(a)(4) of this part, the invitation is regarded 
as not reportable if the U.S. person receiving it does not respond. 
The Department has determined that a simple acknowledgment of the 
invitation does not constitute a response for purposes of this rule. 
However, an acknowledgment that requests inclusion for future 
invitations will be considered a response, and a report is required.
    Where the person in receipt of an invitation containing a 
boycott term or condition is undecided about a response by the time 
a report would be required to be filed under the regulations, it is 
the Department's view that the person must file a report as called 
for in the Regulations. The person filing the report may indicate at 
the time of filing that he has not made a decision on the boycott 
request but must file a supplemental report as called for in the 
regulations at the time a decision is made (Sec. 760.5(a)(6) of this 
part).

Supplement No. 12 to Part 760--Interpretation

    The Department has taken the position that a U.S. person as 
defined by Sec. 760.1(b) of this part may not make use of an agent 
to furnish information that the U.S. person is prohibited from 
furnishing pursuant to Sec. 760.2(d) of this part.
    Example (v) under Sec. 760.4 of this part (Evasion) provides:
    A, a U.S. company, is negotiating a long-term contract with 
boycotting country Y to meet all of Y's medical supply needs. Y 
informs A that before such a contract can be concluded, A must 
complete Y's boycott questionnaire. A knows that it is prohibited 
from answering the questionnaire so it arranges for a local agent in 
Y to supply the necessary information.
    A's action constitutes evasion of this part, because it is a 
device to mask prohibited activity carried out on A's behalf.
    This interpretation deals with the application of the 
Regulations to a commercial agent registration requirement recently 
imposed by the government of Saudi Arabia. The requirement provides 
that nationals of Saudi Arabia seeking to register in Saudi Arabia 
as commercial agents or representatives of foreign concerns must 
furnish certain boycott-related information about the foreign 
concern prior to obtaining approval of the registration.
    The requirement has been imposed by the Ministry of Commerce of 
Saudi Arabia, which is the government agency responsible for 
regulation of commercial agents and foreign commercial 
registrations. The Ministry requires the agent or representative to 
state the following:
    Declaration: I, the undersigned, hereby declare, in my capacity 
as (blank) that (name and address of foreign principal) is not 
presently on the blacklist of the Office for the Boycott of Israel 
and that it and all its branches, if any, are bound by the decisions 
issued by the Boycott Office and do not (1) participate in the 
capital of, (2) license the manufacture of any products or grant 
trademarks or tradeware license to, (3) give experience or technical 
advice to, or (4) have any other relationship with other companies 
which are prohibited to be dealt with by the Boycott Office. Signed 
(name of commercial agent/representative/distributor).
    It is the Department's view that under the circumstances 
specifically outlined in this interpretation relating to the nature 
of the requirement, a U.S. person will not be held responsible for a 
violation of this part when such statements are provided by its 
commercial agent or representative, even when such statements are 
made with the full knowledge of the U.S. person.
    Nature of the requirement. For a boycott-related commercial 
registration requirement to fall within the coverage of this 
interpretation it must have the following characteristics:
    1. The requirement for information imposed by the boycotting 
country applies to a national or other subject of the boycotting 
country qualified under the local laws of that country to function 
as a commercial representative within that country;
    2. The registration requirement relates to the registration of 
the commercial agent's or representative's authority to sell or 
distribute goods within the boycotting country acquired from the 
foreign concern;
    3. The requirement is a routine part of the registration process 
and is not applied selectively based on boycott-related criteria;
    4. The requirement applies only to a commercial agent or 
representative in the boycotting country and does not apply to the 
foreign concern itself; and
    5. The requirement is imposed by the agency of the boycotting 
country responsible for regulating commercial agencies.
    The U.S. person whose agent is complying with the registration 
requirement continues to be subject to all the terms of the 
Regulations, and may not provide any prohibited information to the 
agent for purposes of the agent's compliance with the requirement.
    In addition, the authority granted to the commercial agent or 
representative by the U.S. person must be consistent with standard 
commercial practices and not involve any grants of authority beyond 
those incidental to the commercial sales and distributorship 
responsibilities of the agent.
    Because the requirement does not apply to the U.S. person, no 
reporting obligation under Sec. 760.5 of this part would arise.
    This interpretation, like all others issued by the Department 
discussing applications of the antiboycott provisions of the Export 
Administration Regulations, should be read narrowly. Circumstances 
that differ in any material way from those discussed in this notice 
will be considered under the applicable provisions of the 
Regulations. Persons are particularly advised not to seek to apply 
this interpretation to circumstances in which U.S. principals seek 
to use agents to deal with boycott-related or potential blacklisting 
situations.

Supplement No. 13 to Part 760--Interpretation

Summary

    This interpretation considers boycott-based contractual language 
dealing with the selection of suppliers and subcontractors. While 
this language borrows terms from the ``unilateral and specific 
selection'' exception contained in Sec. 760.3(c) of this part, it 
fails to meet the requirements of that exception. Compliance with 
the requirements of the language constitutes a violation of the 
regulatory prohibition of boycott-based refusals to do business.

Regulatory Background

    Section 760.2(a) of this part prohibits U.S. persons from 
refusing or knowingly agreeing to refuse to do business with other 
persons when such refusal is pursuant to an agreement with, 
requirement of, or request of a boycotting country. That prohibition 
does not extend to the performance of management, procurement or 
other pre-award services, however, notwithstanding knowledge that 
the ultimate selection may be boycott-based. To be permissible such 
services: (1) Must be customary for the firm or industry involved 
and (2) must not exclude others from the transaction or involve 
other actions based on the boycott. See Sec. 760.2(a)(6) of this 
part, ``Refusals to Do Business'', and example (xiii).
    A specific exception is also made in the Regulations for 
compliance (and agreements to comply) with a unilateral and specific 
selection of suppliers or subcontractors by a boycotting country 
buyer. See Sec. 760.3(d) of this part. In Supplement No. 1 to part 
760, the following form of contractual language was said to fall 
within that exception for compliance with unilateral and specific 
selection:
    The Government of the boycotting country (or the First Party), 
in its exclusive power, reserves its right to make the final 
unilateral and specific selection of any proposed carriers, 
insurers, suppliers of services to be performed within the 
boycotting country, or of specific goods to be furnished in 
accordance with the terms and conditions of this contract.
    The Department noted that the actual steps necessary to comply 
with any selection made under this agreement would also have to meet 
the requirements of Sec. 760.3(c) of this part to claim the benefit 
of that exception. In other words, the discretion in selecting would 
have to be exercised exclusively by the boycotting country customer 
and the selection would have to be stated in the affirmative, naming 
a particular supplier. See Sec. 760.3(d) (4) and (5) of this part.

Analysis of the New Contractual Language

    The Office of Antiboycott Compliance has learned of the 
introduction of a new contractual clause into tender documents 
issued by boycotting country governments. This clause is, in many 
respects, similar to that dealt with in Supplement No. 1 to part 
760, but several critical differences exist.
    The clause states:

Boycott of Boycotted Country

    In connection with the performance of this Agreement, Contractor 
acknowledges that the import and customs laws and regulations of 
boycotting country apply to the furnishing and shipment of any 
products or components thereof to boycotting country. The Contractor 
specifically acknowledges that the

[[Page 12898]]
aforementioned import and customs laws and regulations of boycotting 
country prohibit, among other things, the importation into 
boycotting country of products or components thereof: (A) 
Originating in boycotted country; (B) Manufactured, produced and 
furnish by companies organized under the laws of boycotted country; 
and (C) Manufactured, produced or furnished by Nationals or 
Residents of boycotted country.
    The Government, in its exclusive power, reserves its right to 
make the final unilateral and specific selection of any proposed 
Carriers, Insurers, Suppliers of Services to be performed within 
boycotting country or of specific goods to be furnished in 
accordance with the terms and conditions of this Contract.
    To assist the Government in exercising its right under the 
preceding paragraph, Contractor further agrees to provide a complete 
list of names and addresses of all his Sub-Contractors, Suppliers, 
Vendors and Consultants and any other suppliers of the service for 
the project.
    The title of this clause makes clear that its provisions are 
intended to be boycott-related. The first paragraph acknowledges the 
applicability of certain boycott-related requirements of the 
boycotting country's laws in language reviewed in part 760, 
Supplement No. 1, Part II.B. and found to constitute a permissible 
agreement under the exception contained in Sec. 760.3(a) of this 
part for compliance with the import requirements of a boycotting 
country. The second and third paragraphs together deal with the 
procedure for selecting subcontractors and suppliers of services and 
goods and, in the context of the clause as a whole, must be regarded 
as motivated by boycott considerations and intended to enable the 
boycotting country government to make boycott-based selections, 
including the elimination of blacklisted subcontractors and 
suppliers.
    The question is whether the incorporation into these paragraphs 
of some language from the ``unilateral and specific selection'' 
clause approved in Supplement No. 1 to part 760 suffices to take the 
language outside Sec. 760.2(a) of this part's prohibition on 
boycott-based agreements to refuse to do business. While the first 
sentence of this clause is consistent with the language discussed in 
Supplement No. 1 to part 760, the second sentence significantly 
alters the effect of this clause. The effect is to draw the 
contractor into the decision-making process, thereby destroying the 
unilateral character of the selection by the buyer. By agreeing to 
submit the names of the suppliers it plans to use, the contractor is 
agreeing to give the boycotting country buyer, who has retained the 
right of final selection, the ability to reject, for boycott-related 
reasons, any supplier the contractor has already chosen. Because the 
requirement appears in the contractual provision dealing with the 
boycott, the buyer's rejection of any supplier whose name is given 
to the buyer pursuant to this provision would be presumed to be 
boycott-based. By signing the contract, and thereby agreeing to 
comply with all of its provisions, the contractor must either accept 
the buyer's rejection of any supplier, which is presumed to be 
boycott-based because of the context of this provision, or breach 
the contract.
    In these circumstances, the contractor's method of choosing its 
subcontractors and suppliers, in anticipation of the buyer's 
boycott-based review, cannot be considered a permissible pre-award 
service because of the presumed intrusion of boycott-based criteria 
into the selection process. Thus, assuming all other jurisdictional 
requirements necessary to establish a violation of part 760 are met, 
the signing of the contract by the contractor constitutes a 
violation of Sec. 760.2(a) of this part because he is agreeing to 
refuse to do business for boycott reasons.
    The apparent attempt to bring this language within the exception 
for compliance with unilateral and specific selections is 
ineffective. The language does not place the discretion to choose 
suppliers in the hands of the boycotting country buyer but divides 
this discretion between the buyer and his principal contractor. 
Knowing that the buyer will not accept a boycotted company as 
supplier or subcontractor, the contractor is asked to use his 
discretion in selecting a single supplier or subcontractor for each 
element of the contract. The boycotting country buyer exercises 
discretion only through accepting or rejecting the selected supplier 
or contractor as its boycott policies require. In these 
circumstances it cannot be said that the buyer is exercising right 
of unilateral and specific selection which meets the criteria of 
Sec. 760.3(c) of this part. For this reason, agreement to the 
contractual language discussed here would constitute an agreement to 
refuse to do business with any person rejected by the buyer and 
would violate Sec. 760.2(a) of this part.

Supplement No. 14 to Part 760--Interpretation

    (a) Contractual clause concerning import, customs and boycott 
laws of a boycotting country.
    The following language has appeared in tender documents issued 
by a boycotting country:
    Supplier declares his knowledge of the fact that the import, 
Customs and boycott laws, rules and regulations of [name of 
boycotting country] apply in importing to [name of boycotting 
country].
    Supplier declares his knowledge of the fact that under these 
laws, rules and regulations, it is prohibited to import into [name 
of the boycotting country] any products or parts thereof that 
originated in [name of boycotted country]; were manufactured, 
produced or imported by companies formed under the laws of [name of 
boycotted country]; or were manufactured, produced or imported by 
nationals or residents of [name of boycotted country].
    Agreeing to the above contractual language is a prohibited 
agreement to refuse to do business, under Sec. 760.2(a) of this 
part. The first paragraph requires broad acknowledgment of the 
application of the boycotting country's boycott laws, rules and 
regulations. Unless this language is qualified to apply only to 
boycott restrictions with which U.S. persons may comply, agreement 
to it is prohibited. See Sec. 760.2(a) of this part, examples (v) 
and (vi) under ``Agreement to Refuse to Do Business.''
    The second paragraph does not limit the scope of the boycott 
restrictions referenced in the first paragraph. It states that the 
boycott laws include restrictions on goods originating in the 
boycotted country; manufactured, produced or supplied by companies 
organized under the laws of the boycotted country; or manufactured, 
produced or supplied by nationals or residents of the boycotted 
country. Each of these restrictions is within the exception for 
compliance with the import requirements of the boycotting country 
(Sec. 760.3(a) of this part). However, the second paragraph's list 
of restrictions is not exclusive. Since the boycott laws generally 
include more than what is listed and permissible under the 
antiboycott law, U.S. persons may not agree to the quoted clause. 
For example, a country's boycott laws may prohibit imports of goods 
manufactured by blacklisted firms. Except as provided by 
Sec. 760.3(g) of this part, agreement to and compliance with this 
boycott restriction would be prohibited under the antiboycott law.
    The above contractual language is distinguished from the 
contract clause determined to be permissible in supplement 1, Part 
II, A, by its acknowledgment that the boycott requirements of the 
boycotting country apply. Although the first sentence of the 
Supplement 1 clause does not exclude the possible application of 
boycott laws, it refers only to the import and customs laws of the 
boycotting country without mentioning the boycott laws as well. As 
discussed fully in Supplement No. 1 to part 760, compliance with or 
agreement to the clause quoted there is, therefore, permissible.
    The contract clause quoted above, as well as the clause dealt 
with in Supplement No. 1 to part 760, part II, A, is reportable 
under Sec. 760.6(a)(1) of this part.
    (b) Letter of credit terms removing blacklist certificate 
requirement if specified vessels used.
    The following terms frequently appear on letters of credit 
covering shipment to Iraq:
    Shipment to be effected by Iraqi State Enterprise for Maritime 
Transport Vessels or by United Arab Shipping Company (SAB) vessels, 
if available.
    If shipment is effected by any of the above company's [sic] 
vessels, black list certificate or evidence to that effect is not 
required.
    These terms are not reportable and compliance with them is 
permissible.
    The first sentence, a directive to use Iraqi State Enterprise 
for Maritime Transport or United Arab Shipping vessels, is neither 
reportable nor prohibited because it is not considered by the 
Department to be boycott-related. The apparent reason for the 
directive is Iraq's preference to have cargo shipped on its own 
vessels (or, as in the case of United Arab Shipping, on vessels 
owned by a company in part established and owned by the Iraqi 
government). Such ``cargo preference'' requirements, calling for the 
use of an importing or exporting country's own ships, are common 
throughout the world and are imposed for non-boycott reasons. (See 
Sec. 760.2(a) of this part, example (vii)

[[Page 12899]]
AGREEMENTS TO REFUSE TO DO BUSINESS.)
    In contrast, if the letter of credit contains a list of vessels 
or carriers that appears to constitute a boycott-related whitelist, 
a directive to select a vessel from that list would be both 
reportable and prohibited. When such a directive appears in 
conjunction with a term removing the blacklist certificate 
requirement if these vessels are used, the Department will presume 
that beneficiaries, banks and any other U.S. person receiving the 
letter of credit know that there is a boycott-related purpose for 
the directive.
    The second sentence of the letter of credit language quoted 
above does not, by itself, call for a blacklist certificate and is 
not therefore, reportable. If a term elsewhere on the letter of 
credit imposes a blacklist certificate requirement, then that other 
term would be reportable.
    (c) Information not related to a particular transaction in U.S. 
commerce.
    Under Sec. 760.2 (c), (d) and (e), of this part U.S. persons are 
prohibited, with respect to their activities in U.S. commerce, from 
furnishing certain information. It is the Department's position that 
the required nexus with U.S. commerce is established when the 
furnishing of information itself occurs in U.S. commerce. Even when 
the furnishing of information is not itself in U.S. commerce, 
however, the necessary relationship to U.S. commerce will be 
established if the furnishing of information relates to particular 
transactions in U.S. commerce or to anticipated transactions in U.S. 
commerce. See, e.g. Sec. 760.2(d), examples (vii), (ix) and (xii) of 
this part.
    The simplest situation occurs where a U.S. person located in the 
United States furnishes information to a boycotting country. The 
transfer of information from the United States to a foreign country 
is itself an activity in U.S. commerce. See Sec. 760.1(d)(1)(iv) of 
this part. In some circumstances, the furnishing of information by a 
U.S. person located outside the United States may also be an 
activity in U.S. commerce. For example, the controlled foreign 
subsidiary of a domestic concern might furnish to a boycotting 
country information the subsidiary obtained from the U.S.-located 
parent for that purpose. The subsidiary's furnishing would, in these 
circumstances, constitute an activity in U.S. commerce. See 
Sec. 760.1(d)(8) of this part.
    Where the furnishing of information is not itself in U.S. 
commerce, the U.S. commerce requirement may be satisfied by the fact 
that the furnishing is related to an activity in U.S. foreign or 
domestic commerce. For example, if a shipment of goods by a 
controlled-in-fact foreign subsidiary of a U.S. company to a 
boycotting country gives rise to an inquiry from the boycotting 
country concerning the subsidiary's relationship with another firm, 
the Department regards any responsive furnishing of information by 
the subsidiary as related to the shipment giving rise to the 
inquiry. If the shipment is in U.S. foreign or domestic commerce, as 
defined by the regulations, then the Department regards the 
furnishing to be related to an activity in U.S. commerce and subject 
to the antiboycott regulations, whether or not the furnishing itself 
is in U.S. commerce.
    In some circumstances, the Department may regard a furnishing of 
information as related to a broader category of present and 
prospective transactions. For example, if a controlled-in-fact 
foreign subsidiary of a U.S. company is requested to furnish 
information about its commercial dealings and it appears that 
failure to respond will result in its blacklisting, any responsive 
furnishing of information will be regarded by the Department as 
relating to all of the subsidiary's present and anticipated business 
activities with the inquiring boycotting country. Accordingly, if 
any of these present or anticipated business activities are in U.S. 
commerce, the Department will regard the furnishing as related to an 
activity in U.S. commerce and subject to the antiboycott 
regulations.
    In deciding whether anticipated business activities will be in 
U.S. commerce, the Department will consider all of the surrounding 
circumstances. Particular attention will be given to the history of 
the U.S. person's business activities with the boycotting country 
and others, the nature of any activities occurring after a 
furnishing of information occurs and any relevant economic or 
commercial factors which may affect these activities.
    For example, if a U.S. person has no activities with the 
boycotting country at present but all of its other international 
activities are in U.S. commerce, as defined by the Regulations, then 
the Department is likely to regard any furnishing of information by 
that person for the purpose of securing entry into the boycotting 
country's market as relating to anticipated activities in U.S. 
commerce and subject to the antiboycott regulations. Similarly, if 
subsequent to the furnishing of information to the boycotting 
country for the purpose of securing entry into its markets, the U.S. 
person engages in transactions with that country which are in U.S. 
commerce, the Department is likely to regard the furnishing as 
related to an activity in U.S. commerce and subject to the 
antiboycott regulations.

Supplement No. 15 to Part 760--Interpretation

    Section 760.2 (c), (d), and (e) of this part prohibits United 
States persons from furnishing certain types of information with 
intent to comply with, further, or support an unsanctioned foreign 
boycott against a country friendly to the United States. The 
Department has been asked whether prohibited information may be 
transmitted--that is, passed to others by a United States person who 
has not directly or indirectly authored the information--without 
such transmission constituting a furnishing of information in 
violation of Sec. 760.2 (c), (d), and (e) of this part. Throughout 
this interpretation, ``transmission'' is defined as the passing on 
by one person of information initially authored by another. The 
Department believes that there is no distinction in the EAR between 
transmitting (as defined above) and furnishing prohibited 
information under the EAR and that the transmission of prohibited 
information with the requisite boycott intent is a furnishing of 
information violative of the EAR. At the same time, however, the 
circumstances relating to the transmitting party's involvement will 
be carefully considered in determining whether that party intended 
to comply with, further, or support an unsanctioned foreign boycott.
    The EAR does not deal specifically with the relationship between 
transmitting and furnishing. However, the restrictions in the EAR on 
responses to boycott-related conditions, both by direct and indirect 
actions and whether by primary parties or intermediaries, indicate 
that U.S. persons who simply transmit prohibited information are to 
be treated the same under the EAR as those who both author and 
furnish prohibited information. This has been the Department's 
position in enforcement actions it has brought.
    The few references in the EAR to the transmission of information 
by third parties are consistent with this position. Two examples, 
both relating to the prohibition against the furnishing of 
information about U.S. persons' race, religion, sex, or national 
origin (Sec. 760.2(c) of this part), deal explicitly with 
transmitting information. These examples (Sec. 760.2(c) of this 
part, example (v), and Sec. 760.3(f) of this part, example (vi)) 
show that, in certain cases, when furnishing certain information is 
permissible, either because it is not within a prohibition or is 
excepted from a prohibition, transmitting it is also permissible. 
These examples concern information that may be furnished by 
individuals about themselves or their families. The examples show 
that employers may transmit to a boycotting country visa 
applications or forms containing information about an employee's 
race, religion, sex, or national origin if that employee is the 
source of the information and authorizes its transmission. In other 
words, within the limits of ministerial action set forth in these 
examples, employees' actions in transmitting information are 
protected by the exception available to the employee. The 
distinction between permissible and prohibited behavior rests not on 
the definitional distinction between furnishing and transmitting, 
but on the excepted nature of the information furnished by the 
employee. The information originating from the employee does not 
lose its excepted character because it is transmitted by the 
employer.
    The Department's position regarding the furnishing and 
transmission of certificates of one's own blacklist status rests on 
a similar basis and does not support the contention that third 
parties may transmit prohibited information authored by another. 
Such self-certifications do not violate any prohibitions in the EAR 
(see Supplement Nos. 1(I)(B), 2, and 5(A)(2); Sec. 760.2(f), example 
(xiv)). It is the Department's position that it is not prohibited 
for U.S. persons to transmit such self-certifications completed by 
others. Once again, because furnishing the self-certification is not 
prohibited, third parties who transmit the self-certifications 
offend no prohibition. On the other hand, if a third party authored 
information about another's blacklist status, the act of 
transmitting that information would be prohibited.
    A third example in the EAR (Sec. 760.5, example (xiv) of this 
part), which also concerns a permissible transmission of

[[Page 12900]]
boycott-related information, does not support the theory that one may 
transmit prohibited information authored by another. This example deals 
with the reporting requirements in Sec. 760.5 of this part--not the 
prohibitions--and merely illustrates that a person who receives and 
transmits a self-certification has not received a reportable request.
    It is also the Department's position that a U.S. person violates 
the prohibitions against furnishing information by transmitting 
prohibited information even if that person has received no 
reportable request in the transaction. For example, where documents 
accompanying a letter of credit contain prohibited information, a 
negotiating bank that transmits the documents, with the requisite 
boycott intent, to an issuing bank has not received a reportable 
request, but has furnished prohibited information.
    While the Department does not regard the suggested distinction 
between transmitting and furnishing information as meaningful, the 
facts relating to the third party's involvement may be important in 
determining whether that party furnished information with the 
required intent to comply with, further, or support an unsanctioned 
foreign boycott. For example, if it is a standard business practice 
for one participant in a transaction to obtain and pass on, without 
examination, documents prepared by another party, it might be 
difficult to maintain that the first participant intended to comply 
with a boycott by passing on information contained in the unexamined 
documents. Resolution of such intent questions, however, depends 
upon an analysis of the individual facts and circumstances of the 
transaction and the Department will continue to engage in such 
analysis on a case-by-case basis.
    This interpretation, like all others issued by the Department 
discussing applications of the antiboycott provisions of the EAR, 
should be read narrowly. Circumstances that differ in any material 
way from those discussed in this interpretation will be considered 
under the applicable provisions of the Regulations.

Supplement No. 16 to Part 760--Interpretation

    Pursuant to Articles 5, 7, and 26 of the Treaty of Peace between 
the State of Israel and the Hashemite Kingdom of Jordan and 
implementing legislation enacted by Jordan, Jordan's participation 
in the Arab economic boycott of Israel was formally terminated on 
August 16, 1995.
    On the basis of this action, it is the Department's position 
that certain requests for information, action or agreement from 
Jordan which were considered boycott-related by implication now 
cannot be presumed boycott-related and thus would not be prohibited 
or reportable under the regulations. For example, a request that an 
exporter certify that the vessel on which it is shipping its goods 
is eligible to enter Hashemite Kingdom of Jordan ports has been 
considered a boycott-related request that the exporter could not 
comply with because Jordan has had a boycott in force against 
Israel. Such a request from Jordan after August 16, 1995 would not 
be presumed boycott-related because the underlying boycott 
requirement/basis for the certification has been eliminated. 
Similarly, a U.S. company would not be prohibited from complying 
with a request received from Jordanian government officials to 
furnish the place of birth of employees the company is seeking to 
take to Jordan because there is no underlying boycott law or policy 
that would give rise to a presumption that the request was boycott-
related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to the 
regulations, irrespective of the country of origin. For example, 
requests containing references to ``blacklisted companies'', 
``Israel boycott list'', ``non-Israeli goods'' or other phrases or 
words indicating boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations.

PART 762--RECORDKEEPING

Sec.
762.1  Scope.
762.2  Records to be retained.
762.3  Records exempt from recordkeeping requirements.
762.4  Original records required.
762.5  Reproduction of original records.
762.6  Period of retention.
762.7  Producing and inspecting records.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 762.1  Scope.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C.
    (a) Transactions subject to this part. The recordkeeping provisions 
of this part apply to the following transactions:
    (1) Transactions involving restrictive trade practices or boycotts 
described in part 760 of the EAR;
    (2) Exports of commodities, software, or technology from the United 
States and any known reexports, transshipment, or diversions of items 
exported from the United States;
    (3) Exports to Canada, if, at any stage in the transaction, it 
appears that a person in a country other than the United States or 
Canada has an interest therein, or that the item involved is to be 
reexported, transshipped, or diverted from Canada to another foreign 
country; or
    (4) Any other transactions subject to the EAR, including, but not 
limited to, the prohibitions against servicing, forwarding and other 
actions for or on behalf of end-users of proliferation concern 
contained in Secs. 734.2(b)(7) and 744.6 of the EAR. This part also 
applies to all negotiations connected with those transactions, except 
that for export control matters a mere preliminary inquiry or offer to 
do business and negative response thereto shall not constitute 
negotiations, unless the inquiry or offer to do business proposes a 
transaction that a reasonably prudent exporter would believe likely to 
lead to a violation of the EAA, the EAR or any order, license or 
authorization issued thereunder.
    (b) Persons subject to this part. Any person subject to the 
jurisdiction of the United States who, as principal or agent (including 
a forwarding agent), participates in any transaction described in 
paragraph (a) of this section, and any person in the United States or 
abroad who is required to make and maintain records under any provision 
of the EAR, shall keep and maintain all records described in Sec. 762.2 
of this part that are made or obtained by that person and shall produce 
them in a manner provided by Sec. 762.6 of this part.


Sec. 762.2  Records to be retained.

    (a) Records required to be retained. The records required to be 
retained under this part 762 include the following:
    (1) Export control documents, as defined in part 772 of the EAR;
    (2) Memoranda;
    (3) Notes;
    (4) Correspondence;
    (5) Contracts;
    (6) Invitations to bid;
    (7) Books of account;
    (8) Financial records;
    (9) Restrictive trade practice or boycott documents and reports, 
and
    (10) Other records pertaining to the types of transactions 
described in Sec. 762.1(a) of this part, which are made or obtained by 
a person described in Sec. 762.1(b) of this part.
    (b) Records retention references. Paragraph (a) of this section 
describes records that are required to be retained. Other parts, 
sections, or supplements of the EAR which require the retention of 
records or contain recordkeeping provisions, include, but are not 
limited to the following:
    (1) Part 736, General Prohibitions;
    (2) Sec. 732.6, Steps for other requirements;
    (3) Sec. 740.1, Introduction (to License Exceptions);
    (4) Sec. 742.12(a)(3), High Performance Computers;
    (5) Supplement No. 3 to part 742 High Performance Computers, 
Safeguards and Related Information;
    (6) Sec. 740.7, Humanitarian donations (NEED);
    (7) Sec. 748.4(a), Disclosure and substantiation of facts on 
license applications;

[[Page 12901]]

    (8) Sec. 748.6, General instructions for license applications;
    (9) Sec. 748.9, Support documents for license applications;
    (10) Sec. 748.10, Import and End-user Certificates;
    (11) Sec. 748.11, Statement by Ultimate Consignee and Purchaser;
    (12) Sec. 748.13, Delivery Verification (DV);
    (13) Sec. 748.2(c), Obtaining forms; mailing addresses;
    (14) Sec. 750.7, Issuance of license;
    (15) Sec. 750.8, Revocation or suspension of license;
    (16) Sec. 750.9, Duplicate licenses;
    (17) Sec. 750.10, Transfer of licenses for export;
    (18) Sec. 752.7, Direct shipment to customers;
    (19) Sec. 752.9, Action on SCL applications;
    (20) Sec. 752.10, Changes to the SCL;
    (21) Sec. 752.11, Internal Control Programs;
    (22) Sec. 752.12, Recordkeeping requirements;
    (23) Sec. 752.13, Inspection of records;
    (24) Sec. 752.14, System reviews;
    (25) Sec. 752.15, Export clearance;
    (26) Sec. 754.4, Unprocessed western red cedar;
    (27) Sec. 758.1(b)(3), Record and proof of agent's authority;
    (28) Sec. 758.3, Shipper's Export Declaration;
    (29) Sec. 758.6, Destination control statements;
    (30) Sec. 760.6, Restrictive Trade Practices and Boycotts;
    (31) Sec. 762.2, Records to be retained;
    (32) Sec. 764.2, Violations;
    (33) Sec. 764.5, Voluntary self-disclosure; and
    (34) Sec. 766.10, Subpoenas.


Sec. 762.3  Records exempt from recordkeeping requirements.

    (a) The following types of records have been determined to be 
exempt from the recordkeeping requirement procedures:
    (1) Export information page;
    (2) Special export file list;
    (3) Vessel log from freight forwarder;
    (4) Inspection certificate;
    (5) Warranty certificate;
    (6) Guarantee certificate;
    (7) Parking material certificate;
    (8) Goods quality certificate;
    (9) Notification to customer of advance meeting;
    (10) Letter of indemnity;
    (11) Financial release form;
    (12) Financial hold form;
    (13) Export parts shipping problem form;
    (14) Draft number log;
    (15) Expense invoice mailing log;
    (16) Financial status report;
    (17) Bank release of guarantees;
    (18) Cash sheet;
    (19) Commission payment back-up;
    (20) Commissions payable worksheet;
    (21) Commissions payable control;
    (22) Check request forms;
    (23) Accounts receivable correction form;
    (24) Check request register;
    (25) Commission payment printout;
    (26) Engineering fees invoice;
    (27) Foreign tax receipt;
    (28) Individual customer credit status;
    (29) Request for export customers code forms;
    (30) Acknowledgement for receipt of funds;
    (31) Escalation development form;
    (32) Summary quote;
    (33) Purchase order review form;
    (34) Proposal extensions;
    (35) Financial proposal to export customers;
and
    (36) Sales summaries.
    (b) [Reserved]


Sec. 762.4   Original records required.

    The regulated person must maintain the original records in the form 
in which that person receives or creates them unless that person meets 
all of the conditions of Sec. 762.5 of this part relating to 
reproduction of records. If the original record does not meet the 
standards of legibility and readability described in Sec. 762.5 of this 
part and the regulated person intends to rely on that record to meet 
the recordkeeping requirements of the EAR, that person must retain the 
original record.


Sec. 762.5   Reproduction of original records.

    (a) The regulated person may maintain reproductions instead of the 
original records provided all of the requirements of paragraph (b) of 
this section are met.
    (b) In order to maintain the records required by Sec. 762.2 of this 
part, the regulated persons defined in Sec. 762.1 of this part may use 
any photographic, photostatic, miniature photographic, micrographic, 
automated archival storage, or other process that completely, 
accurately, legibly and durably reproduces the original records 
(whether on paper, microfilm, or through electronic digital storage 
techniques). The process must meet all of the following requirements, 
which are applicable to all systems:
    (1) The system must be capable of reproducing all records on paper.
    (2) The system must record and be able to reproduce all marks, 
information, and other characteristics of the original record, 
including both obverse and reverse sides of paper documents in legible 
form.
    (3) When displayed on a viewer, monitor, or reproduced on paper, 
the records must exhibit a high degree of legibility and readability. 
(For purposes of this section, legible and legibility mean the quality 
of a letter or numeral that enable the observer to identify it 
positively and quickly to the exclusion of all other letters or 
numerals. Readable and readability mean the quality of a group of 
letters or numerals being recognized as complete words or numbers.)
    (4) The system must preserve the initial image (including both 
obverse and reverse sides of paper documents) and record all changes, 
who made them and when they were made. This information must be stored 
in such a manner that none of it may be altered once it is initially 
recorded.
    (5) The regulated person must establish written procedures to 
identify the individuals who are responsible for the operation, use and 
maintenance of the system.
    (6) The regulated person must establish written procedures for 
inspection and quality assurance of records in the system and document 
the implementation of those procedures.
    (7) The system must be complete and contain all records required to 
be kept by this part or the regulated person must provide a method for 
correlating, identifying and locating records relating to the same 
transaction(s) that are kept in other record keeping systems.
    (8) The regulated person must keep a record of where, when, by 
whom, and on what equipment the records and other information were 
entered into the system.
    (9) Upon request by the Office of Export Enforcement, the Office of 
Antiboycott Compliance, or any other agency of competent jurisdiction, 
the regulated person must furnish, at the examination site, the 
records, the equipment and, if necessary, knowledgeable personnel for 
locating, reading, and reproducing any record in the system.
    (c) Requirements applicable to systems based on the storage of 
digital images. For systems based on the storage of digital images, the 
system must provide accessibility to any digital image in the system. 
With respect to records of transactions, including those involving 
restrictive trade practices or boycott requirements or requests. The 
system must be able to locate and reproduce all records relating to a 
particular transaction based on any one of the following criteria:

[[Page 12902]]

    (1) The name(s) of the parties to the transaction;
    (2) Any country(ies) connected with the transaction; or
    (3) A document reference number that was on any original document.
    (d) Requirements applicable to a system based on photographic 
processes. For systems based on photographic, photostatic, or miniature 
photographic processes, the regulated person must maintain a detailed 
index of all records in the system that is arranged in such a manner as 
to allow immediate location of any particular record in the system.


Sec. 762.6  Period of retention.

    (a) Five year retention period. All records required to be kept by 
the EAR must be retained for five years from the latest of the 
following times:
    (1) The export from the United States of the item involved in the 
transaction to which the records pertain or the provision of financing, 
transporting or other service for or on behalf of end-users of 
proliferation concern as described in Secs. 736.2(b)(7) and 744.6 of 
the EAR;
    (2) Any known reexport, transshipment, or diversion of such item;
    (3) Any other termination of the transaction, whether formally in 
writing or by any other means; or
    (4) In the case of records of pertaining to transactions involving 
restrictive trade practices or boycotts described in part 760 of the 
EAR, the date the regulated person receives the boycott-related request 
or requirement.
    (b) Destruction or disposal of records. If the Bureau of Export 
Administration or any other government agency makes a formal or 
informal request for a certain record or records, such record or 
records may not be destroyed or disposed of without the written 
authorization of the agency concerned. This prohibition applies to 
records pertaining to voluntary disclosures made to BXA in accordance 
with Sec. 765.5(c)(4)(ii) and other records even if such records have 
been retained for a period of time exceeding that required by paragraph 
(a) of this section.


Sec. 762.7  Producing and inspecting records.

    (a) Persons located in the United States. Persons located in the 
United States may be asked to produce records that are required to be 
kept by any provision of the EAR, or any license, order, or 
authorization issued thereunder and to make them available for 
inspection and copying by any authorized agent, official, or employee 
of the Bureau of Export Administration, the U.S. Customs Service, or 
any other agency of the U.S. Government, without any charge or expense 
to such agent, official, or employee. The Office of Export Enforcement 
and the Office of Antiboycott Compliance encourage voluntary 
cooperation with such requests. When voluntary cooperation is not 
forthcoming, the Office of Export Enforcement and the Office of 
Antiboycott Compliance are authorized to issue subpoenas for books, 
records, and other writings. In instances where a person does not 
comply with a subpoena, the Department of Commerce may petition a 
district court to have a subpoena enforced.
    (b) Persons located outside of the United States. Persons located 
outside of the United States that are required to keep records by any 
provision of the EAR or by any license, order, or authorization issued 
thereunder shall produce all records or reproductions of records 
required to be kept, and make them available for inspection and copying 
upon request by an authorized agent, official, or employee of the 
Bureau of Export Administration, the U.S. Customs Service, or a Foreign 
Service post, or by any other accredited representative of the U.S. 
Government, without any charge or expense to such agent, official or 
employee.

PART 764--ENFORCEMENT AND PROTECTIVE MEASURES

Sec.
764.1  Introduction.
764.2  Violations.
764.3  Sanctions.
764.4  Reporting of violations.
764.5  Voluntary self-disclosure.
764.6  Protective administrative measures.

Supplement No. 1 to Part 764--Standard Terms of Orders Denying Export 
Privileges

Supplement No. 2 to Part 764--Denied Persons List

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 764.1  Introduction.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. This part specifies conduct that constitutes 
a violation of the Export Administration Act (EAA) and/or the Export 
Administration Regulations (EAR) and the sanctions that may be imposed 
for such violations. Antiboycott violations are described in part 760 
of the EAR, and the violations and sanctions specified in part 764 also 
apply to conduct relating to part 760, unless otherwise stated. This 
part describes administrative sanctions that may be imposed by the 
Bureau of Export Administration (BXA). This part also describes 
criminal sanctions that may be imposed by a United States court and 
other sanctions that are neither administrative nor criminal. 
Information is provided on how to report and disclose violations. 
Finally, this part identifies protective administrative measures that 
BXA may take in the exercise of its regulatory authority.


Sec. 764.2  Violations.

    (a) Engaging in prohibited conduct. No person may engage in any 
conduct prohibited by or contrary to, or refrain from engaging in any 
conduct required by, the EAA, the EAR, or any order, license or 
authorization issued thereunder.
    (b) Causing, aiding, or abetting a violation. No person may cause 
or aid, abet, counsel, command, induce, procure, or permit the doing of 
any act prohibited, or the omission of any act required, by the EAA, 
the EAR, or any order, license or authorization issued thereunder.
    (c) Solicitation and attempt. No person may solicit or attempt a 
violation of the EAA, the EAR, or any order, license or authorization 
issued thereunder.
    (d) Conspiracy. No person may conspire or act in concert with one 
or more persons in any manner or for any purpose to bring about or to 
do any act that constitutes a violation of the EAA, the EAR, or any 
order, license or authorization issued thereunder.
    (e) Acting with knowledge of a violation. No person may order, buy, 
remove, conceal, store, use, sell, loan, dispose of, transfer, 
transport, finance, forward, or otherwise service, in whole or in part, 
any item exported or to be exported from the United States, or that is 
otherwise subject to the EAR, with knowledge that a violation of the 
EAA, the EAR, or any order, license or authorization issued thereunder, 
has occurred, is about to occur, or is intended to occur in connection 
with the item.
    (f) Possession with intent to export illegally. No person may 
possess any item controlled for national security or foreign policy 
reasons under sections 5 or 6 of the EAA:
    (1) With intent to export such item in violation of the EAA, the 
EAR, or any order, license or authorization issued thereunder; or
    (2) With knowledge or reason to believe that the item would be so 
exported.
    (g) Misrepresentation and concealment of facts. (1) No person may 
make any false or misleading representation, statement, or

[[Page 12903]]
certification, or falsify or conceal any material fact, either directly 
to BXA, the United States Customs Service, or an official of any other 
United States agency, or indirectly through any other person:
    (i) In the course of an investigation or other action subject to 
the EAR; or
    (ii) In connection with the preparation, submission, issuance, use, 
or maintenance of any export control document or restrictive trade 
practice or boycott request report, as defined in Sec. 760.6 of the 
EAR; or
    (iii) For the purpose of or in connection with effecting an export, 
reexport or other activity subject to the EAR.
    (2) All representations, statements, and certifications made by any 
person are deemed to be continuing in effect. Every person who has made 
any representation, statement, or certification must notify BXA and any 
other relevant agency, in writing, of any change of any material fact 
or intention from that previously represented, stated, or certified, 
immediately upon receipt of any information that would lead a 
reasonably prudent person to know that a change of material fact or 
intention has occurred or may occur in the future.
    (h) Evasion. No person may engage in any transaction or take any 
other action with intent to evade the provisions of the EAA, the EAR, 
or any order, license or authorization issued thereunder.
    (i) Failure to comply with reporting, recordkeeping requirements. 
No person may fail or refuse to comply with any reporting or 
recordkeeping requirement of the EAR or of any order, license or 
authorization issued thereunder.
    (j) License alteration. Except as specifically authorized in the 
EAR or in writing by BXA, no person may alter any license, 
authorization, export control document, or order issued under the EAR.
    (k) Acting contrary to the terms of a denial order. No person may 
take any action that is prohibited by a denial order. See 
Sec. 764.3(a)(2) of this part.


Sec. 764.3  Sanctions.

    (a) Administrative.\1\ Violations of the EAA, the EAR, or any 
order, license or authorization issued thereunder are subject to the 
administrative sanctions described in this section and to any other 
liability, sanction, or penalty available under law. The protective 
administrative measures that are described in Sec. 764.6 of this part 
are distinct from administrative sanctions.

    \1\ In the event that any part of the EAR is not under the 
authority of the EAA, sanctions shall be limited to those provided 
for by such other authority, but the provisions of this part and of 
part 766 of the EAR shall apply insofar as not inconsistent with 
that other authority.
---------------------------------------------------------------------------

    (1) Civil penalty. (i) A civil penalty not to exceed $10,000 may be 
imposed for each violation, except that a civil penalty not to exceed 
$100,000 may be imposed for each violation involving national security 
controls imposed under section 5 of the EAA.
    (ii) The payment of any civil penalty may be made a condition, for 
a period not exceeding one year after the imposition of such penalty, 
to the granting, restoration, or continuing validity of any export 
license, License Exception, permission, or privilege granted or to be 
granted to the person upon whom such penalty is imposed.
    (iii) The payment of any civil penalty may be deferred or suspended 
in whole or in part during any probation period that may be imposed. 
Such deferral or suspension shall not bar the collection of the penalty 
if the conditions of the deferral, suspension, or probation are not 
fulfilled.
    (2) Denial of export privileges. An order may be issued that 
restricts the ability of the named persons to engage in export and 
reexport transactions involving items subject to the EAR, or that 
restricts access by named persons to items subject to the EAR. An order 
denying export privileges may be imposed either as a sanction for a 
violation specified in this part or as a protective administrative 
measure described in Sec. 764.6(c) or (d) of this part. An order 
denying export privileges may suspend or revoke any or all outstanding 
licenses issued under the EAR to a person named in the denial order or 
in which such person has an interest, may deny or restrict exports and 
reexports by or to such person of any item subject to the EAR, and may 
restrict dealings in which that person may benefit from any export or 
reexport of such items. The standard terms of a denial order are set 
forth in Supplement No. 1 to this part. A non-standard denial order, 
narrower in scope, may be issued. Authorization to engage in actions 
otherwise prohibited by a denial order may be given by the Office of 
Exporter Services, in consultation with the Office of Export 
Enforcement, following application by a person named in the denial 
order or by a person seeking permission to deal with a named person.
    (3) Exclusion from practice. Any person acting as an attorney, 
accountant, consultant, freight forwarder, or in any other 
representative capacity for any license application or other matter 
before BXA may be excluded by order from any or all such activities 
before BXA.
    (b) Criminal.\2\ (1) General. Except as provided in paragraph 
(b)(2) of this section, whoever knowingly violates or conspires to or 
attempts to violate the EAA, the EAR, or any order or license issued 
thereunder, shall be fined not more than five times the value of the 
exports involved or $50,000, whichever is greater, or imprisoned not 
more than five years, or both.

    \2\ In the event that any part of the EAR is not under the 
authority of the EAA, sanctions shall be limited to those provided 
for by such other authority or by 18 U.S.C. 3571, a criminal code 
provision that establishes a maximum criminal fine for a felony that 
is the greater of the amount provided by the statute that was 
violated, or an amount not more than $500,000 for an organization. 
The Federal Sentencing Guidelines found in Sec. 2M5.1 of Appendix 4 
to Title 18 of the United States Code apply, to the extent followed 
by the court, to sentencing for convictions for violating the EAA.
---------------------------------------------------------------------------

    (2) Willful violations. (i) Whoever willfully violates or conspires 
to or attempts to violate any provision of the EAA, the EAR, or any 
order or license issued thereunder, with knowledge that the exports 
involved will be used for the benefit of, or that the destination or 
intended destination of the items involved is, any controlled country 
or any country to which exports are controlled for foreign policy 
purposes, except in the case of an individual, shall be fined not more 
than five times the value of the export involved or $1,000,000, 
whichever is greater; and, in the case of an individual, shall be fined 
not more than $250,000, or imprisoned not more than 10 years, or both.
    (ii) Any person who is issued a license under the EAA or the EAR 
for the export of any items to a controlled country and who, with 
knowledge that such export is being used by such controlled country for 
military or intelligence gathering purposes contrary to the conditions 
under which the license was issued, willfully fails to report such use 
to the Secretary of Defense, except in the case of an individual, shall 
be fined not more than five times the value of the exports involved or 
$1,000,000, whichever is greater; and, in the case of an individual, 
shall be fined not more than $250,000, or imprisoned not more than five 
years, or both.
    (iii) Any person who possesses any item with intent to export such 
item in violation of an export control imposed under sections 5 or 6 of 
the EAA, the EAR, or any order or license issued thereunder, or knowing 
or having reason to believe that the item would be so exported, shall, 
in the case of a violation of an export control imposed under section 5 
of the EAA (or the EAR, or any order or license issued

[[Page 12904]]
thereunder with respect to such control), be subject to the penalties 
set forth in paragraph (b)(2)(i) of this section and shall, in the case 
of a violation of an export control imposed under section 6 of the EAA 
(or the EAR, or any order or license issued thereunder with respect to 
such control), be subject to the penalties set forth in paragraph 
(b)(1) of this section.
    (iv) Any person who takes any action with intent to evade the 
provisions of the EAA, the EAR, or any order or license issued 
thereunder, shall be subject to the penalties set forth in paragraph 
(b)(1) of this section, except that in the case of an evasion of an 
export control imposed under sections 5 or 6 of the EAA (or the EAR, or 
any order or license issued thereunder with respect to such control), 
such person shall be subject to the penalties set forth in paragraph 
(b)(2)(i) of this section.
    (3) Other criminal sanctions. Conduct that constitutes a violation 
of the EAA, the EAR, or any order, license or authorization issued 
thereunder, or that occurs in connection with such a violation, may 
also be prosecuted under other provisions of law, including 18 U.S.C. 
371 (conspiracy), 18 U.S.C. 1001 (false statements), 18 U.S.C. 1341, 
1343, and 1346 (mail and wire fraud), and 18 U.S.C. 1956 and 1957 
(money laundering).
    (c) Other sanctions. Conduct that violates the EAA, the EAR, or any 
order, license or authorization issued thereunder, and other conduct 
specified in the EAA may be subject to sanctions or other measures in 
addition to criminal and administrative sanctions under the EAA or EAR. 
These include, but are not limited to, the following:
    (1) Statutory sanctions. Statutorily-mandated sanctions may be 
imposed on account of specified conduct related to weapons 
proliferation. Such statutory sanctions are not civil or criminal 
penalties, but restrict imports and procurement (See section 11A of the 
EAA, Multilateral Export Control Violations, and section 11C of the 
EAA, Chemical and Biological Weapons Proliferation), or restrict export 
licenses (See section 11B of the EAA, Missile Proliferation Violations, 
and the Iran-Iraq Arms Non-Proliferation Act of 1992).
    (2) Other sanctions and measures. (i) Seizure and forfeiture. Items 
that have been, are being, or are intended to be, exported or shipped 
from or taken out of the United States in violation of the EAA, the 
EAR, or any order, license or authorization issued thereunder, are 
subject to being seized and detained as are the vessels, vehicles, and 
aircraft carrying such items. Seized items are subject to forfeiture. 
(50 U.S.C. app. 2411(g); 22 U.S.C. 401.)
    (ii) Cross-debarment. (A) The Department of State may deny licenses 
or approvals for the export or reexport of defense articles and defense 
services controlled under the Arms Export Control Act to persons 
indicted or convicted of specified criminal offenses, including 
violations of the EAA, or to persons denied export privileges by BXA or 
another agency. (22 CFR 126.7(a) and 127.11(a).)
    (B) The Department of Defense, among other agencies, may suspend 
the right of any person to contract with the United States Government 
based on export control violations. (Federal Acquisition Regulations 
9.407-2.)


Sec. 764.4  Reporting of violations.

    (a) Where to report. If a person learns that an export control 
violation of the EAR has occurred or may occur, that person may notify:

Office of Export Enforcement, Bureau of Export Administration,U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-4520, Washington, D.C. 20230, Tel: (202) 482-1208, Facsimile: (202) 
482-0964

or, for violations of part 760 of the EAR:

Office of Antiboycott Compliance, Bureau of Export Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-6099C, Washington, D.C. 20230, Tel: (202) 482-2381, Facsimile: (202) 
482-0913.
    (b) Failure to report violations. Failure to report potential 
violations may result in the unwarranted issuance of licenses or 
exports without the required licenses to the detriment of the interests 
of the United States.
    (c) Reporting requirement distinguished. The reporting provisions 
in paragraph (a) of this section are not ``reporting requirements'' 
within the meaning of Sec. 764.2(i) of this part.


Sec. 764.5  Voluntary self-disclosure.

    (a) General policy. BXA strongly encourages disclosure to OEE if 
you believe that you may have violated the EAR, or any order, license 
or authorization issued thereunder. Voluntary self-disclosure is a 
mitigating factor in determining what administrative sanctions, if any, 
will be sought by OEE.
    (b) Limitations.
    (1) The provisions of this section do not apply to disclosures of 
violations relating to part 760 of the EAR.
    (2) The provisions of this section apply only when information is 
provided to OEE for its review in determining whether to take 
administrative action under part 766 of the EAR for violations of the 
export control provisions of the EAR.
    (3) The provisions of this section apply only when information is 
received by OEE for review prior to the time that OEE, or any other 
agency of the United States Government, has learned the same or 
substantially similar information from another source and has commenced 
an investigation or inquiry in connection with that information.
    (4) While voluntary self-disclosure is a mitigating factor in 
determining what administrative sanctions, if any, will be sought by 
OEE, it is a factor that is considered together with all other factors 
in a case. The weight given to voluntary self-disclosure is solely 
within the discretion of OEE, and the mitigating effect of voluntary 
self-disclosure may be outweighed by aggravating factors. Voluntary 
self-disclosure does not prevent transactions from being referred to 
the Department of Justice for criminal prosecution. In such a case, OEE 
would notify the Department of Justice of the voluntary self-
disclosure, but the consideration of that factor is within the 
discretion of the Department of Justice.
    (5) A firm will not be deemed to have made a disclosure under this 
section unless the individual making the disclosure did so with the 
full knowledge and authorization of the firm's senior management.
    (6) The provisions of this section do not, nor should they be 
relied on to, create, confer, or grant any rights, benefits, 
privileges, or protection enforceable at law or in equity by any 
person, business, or entity in any civil, criminal, administrative, or 
other matter.
    (c) Information to be provided.
    (1) General. Any person wanting to disclose information that 
constitutes a voluntary self-disclosure should, in the manner outlined 
below, initially notify OEE as soon as possible after violations are 
discovered, and then conduct a thorough review of all export-related 
transactions where violations are suspected.
    (2) Initial notification. 
    (i) The initial notification should be in writing and be sent to 
one of the addresses in Sec. 764.5(c)(7) of this part. The notification 
should include the name of the person making the disclosure and a brief 
description of the suspected violations. The notification should 
describe the general nature and extent of the violations. If the person 
making the disclosure subsequently

[[Page 12905]]
completes the narrative account required by Sec. 764.5(c)(3) of this 
part, the disclosure will be deemed to have been made on the date of 
the initial notification for purposes of Sec. 764.5(b)(3) of this part.
    (ii) OEE recognizes that there may be situations where it will not 
be practical to make an initial notification in writing. For example, 
written notification may not be practical if a shipment leaves the 
United States without the required license, yet there is still an 
opportunity to prevent acquisition of the items by unauthorized 
persons. In such situations, OEE should be contacted promptly at one of 
the offices listed in Sec. 764.5(c)(7) of this part.
    (3) Narrative account. After the initial notification, a thorough 
review should be conducted of all export-related transactions where 
possible violations are suspected. OEE recommends that the review cover 
a period of five years prior to the date of the initial notification. 
If your review goes back less than five years, you risk failing to 
discover violations that may later become the subject of an 
investigation. Any violations not voluntarily disclosed do not receive 
consideration under this section. However, the failure to make such 
disclosures will not be treated as a separate violation unless some 
other section of the EAR or other provision of law requires disclosure. 
Upon completion of the review, OEE should be furnished with a narrative 
account that sufficiently describes the suspected violations so that 
their nature and gravity can be assessed. The narrative account should 
also describe the nature of the review conducted and measures that may 
have been taken to minimize the likelihood that violations will occur 
in the future. The narrative account should include:
    (i) The kind of violation involved, for example, a shipment without 
the required license or dealing with a party denied export privileges;
    (ii) An explanation of when and how the violations occurred;
    (iii) The complete identities and addresses of all individuals and 
organizations, whether foreign or domestic, involved in the activities 
giving rise to the violations;
    (iv) License numbers;
    (v) The description, quantity, value in U.S. dollars and ECCN or 
other classification of the items involved; and
    (vi) A description of any mitigating circumstances.
    (4) Supporting documentation.
    (i) The narrative account should be accompanied by copies of 
documents that explain and support it, including:
    (A) Licensing documents such as licenses, license applications, 
import certificates and end-user statements;
    (B) Shipping documents such as Shipper's Export Declarations, air 
waybills and bills of lading; and
    (C) Other documents such as letters, facsimiles, telexes and other 
evidence of written or oral communications, internal memoranda, 
purchase orders, invoices, letters of credit and brochures.
    (ii) Any relevant documents not attached to the narrative account 
must be retained by the person making the disclosure until OEE requests 
them, or until a final decision on the disclosed information has been 
made. After a final decision, the documents should be handled in 
accordance with the recordkeeping rules in part 762 of the EAR.
    (5) Certification. A certification must be submitted stating that 
all of the representations made in connection with the voluntary self-
disclosure are true and correct to the best of that person's knowledge 
and belief. Certifications made by a corporation or other organization 
should be signed by an official of the corporation or other 
organization with the authority to do so. Section 764.2(g) of this 
part, relating to false or misleading representations, applies in 
connection with the disclosure of information under this section.
    (6) Oral presentations. OEE believes that oral presentations are 
generally not necessary to augment the written narrative account and 
supporting documentation. If the person making the disclosure believes 
otherwise, a request for a meeting should be included with the 
disclosure.
    (7) Where to make voluntary self-disclosures. The information 
constituting a voluntary self-disclosure or any other correspondence 
pertaining to a voluntary self-disclosure may be submitted to:

Office of Export Enforcement, Director, Intelligence Division, U.S. 
Department of Commerce, P.O. Box 70, Washington, D.C. 20044
Office of Export Enforcement, Director, Intelligence Division, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-4520,Washington, D.C. 20230, Tel: (202) 482-1208, Facsimile: (202) 
482-0964,

or to any of the following field offices:

Special Agent in Charge, Boston Field Office, Office of Export 
Enforcement, New Boston Federal Building, 10 Causeway Street, Room 350, 
Boston, Massachusetts 02222, Tel: (617) 565-6030, Facsimile: (617) 835-
6039
Special Agent in Charge, Chicago Field Office, Office of Export 
Enforcement, 2400 East Devon, Suite 300, Des Plaines, Illinois 60018, 
Tel: (312) 353-6640, Facsimile: (312) 353-8008
Special Agent in Charge, Dallas Field Office, Office of Export 
Enforcement, 525 Griffin Street, Room 622, Dallas, Texas 75202, Tel: 
(214) 767-9294, Facsimile: (214) 729-9299
Special Agent in Charge, Los Angeles Field Office, Office of Export 
Enforcement, 2601 Main Street, Suite 310, Irvine, California 92714-
6299, Tel: (714) 251-9001, Facsimile: (714) 791-9103
Special Agent in Charge, Miami Field Office, Office of Export 
Enforcement, 200 East Las Olas Boulevard, Suite 1260, Fort Lauderdale, 
Florida 33301, Tel: (954) 356-7540, Facsimile: (954) 356-7549
Special Agent in Charge, New York Field Office, Office of Export 
Enforcement, Teleport II, 2 Teleport Drive, Staten Island, New York 
10311-1001, Tel: (718) 370-0070, Facsimile: (718) 370-8226
Special Agent in Charge, San Jose Field Office, Office of Export 
Enforcement, 96 North 3rd Street, Suite 250, San Jose, California 
95112-5572, Tel: (408) 291-4204, Facsimile: (408) 291-4320
Special Agent in Charge, Washington, D.C. Field Office, Office of 
Export Enforcement, 8001 Forbes Place, Room 201, Springfield, Virginia 
22151-0838, Tel: (703) 487-4950, Facsimile: (703) 487-4955.

    (d) Action by the Office of Export Enforcement. After OEE has been 
provided with the required narrative and supporting documentation, it 
will acknowledge the disclosure by letter, provide the person making 
the disclosure with a point of contact, and take whatever additional 
action, including further investigation, it deems appropriate. As 
quickly as the facts and circumstances of a given case permit, OEE may 
take any of the following actions:
    (1) Inform the person making the disclosure that, based on the 
facts disclosed, it plans to take no action;
    (2) Issue a warning letter;
    (3) Issue a proposed charging letter pursuant to Sec. 766.18 of the 
EAR and attempt to settle the matter;
    (4) Issue a charging letter pursuant to Sec. 766.3 of the EAR if a 
settlement is not reached; and/or
    (5) Refer the matter to the Department of Justice for criminal 
prosecution.
    (e) Criteria. For purposes of determining what administrative 
action to take and what sanctions, if any, to

[[Page 12906]]
seek, the fact that a voluntary self-disclosure has been made will be a 
mitigating factor. OEE will take that factor into account along with 
other mitigating and aggravating factors when determining what, if any, 
administrative sanctions should be imposed. The factors that OEE will 
consider are in its sole discretion, but may include:
    (1) The extent to which the purpose of the control is undermined by 
the transaction;
    (2) Whether the transaction would have been authorized had proper 
application been made;
    (3) The quantity and value of the items involved;
    (4) Why the violations occurred. For example, OEE may consider 
whether the violations were intentional or inadvertent; the degree to 
which the person responsible for the violation making the disclosure 
was familiar with the EAR; and whether the violator has been the 
subject of prior administrative or criminal action under the EAA or the 
EAR;
    (5) Whether, as a result of the information provided, OEE is able 
to prevent any items exported illegally from reaching unauthorized 
persons or destinations;
    (6) The degree of cooperation with the ensuing investigation;
    (7) Whether the person has instituted or improved an internal 
compliance program to reduce the likelihood of future violations.
    (f) Treatment of unlawfully exported items after voluntary self-
disclosure.
    (1) Any person taking certain actions with knowledge that a 
violation of the EAA or the EAR has occurred has violated Sec. 764.2(e) 
of this part. Any person who has made a voluntary self-disclosure knows 
that a violation may have occurred. Therefore, at the time that a 
voluntary self-disclosure is made, the person making the disclosure may 
request permission from BXA to engage in the activities described in 
Sec. 764.2(e) of this part that would otherwise be prohibited. If the 
request is granted by the Office of Exporter Services in consultation 
with OEE, future activities with respect to those items that would 
otherwise violate Sec. 764.2(e) of this part will not constitute 
violations. However, even if permission is granted, the person making 
the voluntary self-disclosure is not absolved from liability for any 
violations disclosed nor relieved of the obligation to obtain any 
required reexport authorizations.
    (2) A license to reexport items that are the subject of a voluntary 
self-disclosure, and that have been exported contrary to the provisions 
of the EAA or the EAR, may be requested from BXA in accordance with the 
provisions of part 748 of the EAR. If the applicant for reexport 
authorization knows that the items are the subject of a voluntary self-
disclosure, the request should state that a voluntary self-disclosure 
was made in connection with the export of the commodities for which 
reexport authorization is sought.


Sec. 764.6  Protective administrative measures.

    (a) License Exception limitation. As provided in Sec. 740.2(b) of 
the EAR , all License Exceptions are subject to revision, suspension, 
or revocation.
    (b) Revocation or suspension of licenses. As provided in Sec. 750.8 
of the EAR, all licenses are subject to revision, suspension, or 
revocation.
    (c) Temporary denial orders. BXA may, in accordance with 
Sec. 766.24 of the EAR, issue an order temporarily denying export 
privileges when such an order is necessary in the public interest to 
prevent the occurrence of an imminent violation.
    (d) Denial based on criminal conviction. BXA may, in accordance 
with Sec. 766.25 of the EAR, issue an order denying the export 
privileges of any person who has been convicted of an offense specified 
in Sec. 11(h) of the EAA.

Supplement No. 1 To Part 764--Standard Terms of Orders Denying Export 
Privileges

    (a) General. Orders denying export privileges may be ``standard'' 
or ``non-standard.'' This Supplement specifies terms of the standard 
order denying export privileges. All denial orders are published in the 
Federal Register. The failure by any person to comply with any denial 
order is a violation of the Export Administration Regulations (EAR). 
(See General Prohibition Four at Sec. 736.2(b)(4) of the EAR; 
Sec. 764.2(k) of this part.) All persons whose export privileges are 
denied by any form of denial order are identified on the Denied Persons 
List (Supplement No. 2 to this part), with an indication of whether an 
order is standard or non-standard denoted in the ``Terms of order'' 
column. The Denied Persons List also tells you where each denial order 
can be found in the Federal Register. Reference should be made to the 
text of the denial order, as published in the Federal Register, to 
learn the scope of any denial order, including any non-standard denial 
order.
    Denial orders issued prior to March 25, 1996, are to be construed, 
insofar as possible, as having the same scope and effect as the 
standard denial order.
    The introduction to each denial order shall be specific to that 
order, and shall include: (1) The name and address of any denied 
persons and any related persons subject to the denial order; (2) the 
basis for the denial order, such as final decision following charges of 
violation, settlement agreement, Sec. 11(h) of the EAA, or temporary 
denial order request; (3) the period of denial, the effective date of 
the order, whether and for how long any portion of the denial of export 
privileges is suspended, and any conditions of probation; and (4) 
whether any or all outstanding licenses issued under the EAR to the 
person(s) named in the denial order or in which such person(s) has an 
interest, are suspended or revoked.
    (b) Standard text.
    The standard denial order shall provide:
    ``It is therefore ordered:
    First, that [the denied person(s)] may not, directly or indirectly, 
participate in any way in any transaction involving any commodity, 
software or technology (hereinafter collectively referred to as 
``item'') exported or to be exported from the United States that is 
subject to the Export Administration Regulations (EAR), or in any other 
activity subject to the EAR, including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the EAR, or in any other activity 
subject to the EAR; or
    C. Benefiting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the EAR, or in any other activity subject to the EAR.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the denied person any item 
subject to the EAR;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a denied person of the ownership, possession, or control 
of any item subject to the EAR that has been or will be exported from 
the United States, including financing or other support activities 
related to a transaction whereby a denied person acquires or attempts 
to acquire such ownership, possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from the denied person of

[[Page 12907]]
any item subject to the EAR that has been exported from the United 
States;
    D. Obtain from the denied person in the United States any item 
subject to the EAR with knowledge or reason to know that the item will 
be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the EAR 
that has been or will be exported from the United States and which is 
owned, possessed or controlled by a denied person, or service any item, 
of whatever origin, that is owned, possessed or controlled by a denied 
person if such service involves the use of any item subject to the EAR 
that has been or will be exported from the United States. For purposes 
of this paragraph, servicing means installation, maintenance, repair, 
modification or testing.
    Third, that, after notice and opportunity for comment as provided 
in Sec. 766.23 of the EAR, any person, firm, corporation, or business 
organization related to the denied person by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be made subject to the provisions of this 
order.
    Fourth, that this order does not prohibit any export, reexport, or 
other transaction subject to the EAR where the only items involved that 
are subject to the EAR are the foreign-produced direct product of U.S.-
origin technology.
    This order, which constitutes the final agency action in this 
matter, is effective immediately.''

Supplement No. 2 To Part 764--Denied Persons List

    (a) General.
    (1) The Denied Persons List identifies those persons denied export 
privileges by the Bureau of Export Administration (BXA) pursuant to the 
terms of an order. Part A of the Denied Persons List lists all denied 
persons in alphabetical order and provides supplementary information, 
while Part B lists all denied persons by geographic area. Part A of the 
Denied Persons List is organized into five columns, including the name 
and address of the denied person, the effective and expiration dates of 
the order, a brief description of the terms of the order, and a 
citation to the Federal Register where the terms of the order can be 
located. Reference should always be made to the text of a denial order 
when using the Denied Persons List.
    (2) Denial orders issued subsequent to March 25, 1996, shall be 
identified in part A as being standard or non-standard, and denial 
orders issued prior to March 25, 1996, shall be construed, insofar as 
possible, as having the same scope and effect as the standard denial 
order. Non-standard orders are denoted by the phrase ``non-standard'' 
in the ``Terms of order'' column in part A, standard orders are denoted 
by the word ``standard,'' and orders issued prior to March 25, 1996, 
are denoted by the same brief description entered at the time of 
issuance. Standard orders denying export privileges contain the 
standard terms set forth in Supplement No. 1 to part 764.
    (3) You are responsible for ensuring that you take no action 
involving items subject to the Export Administration Regulations (EAR) 
that is contrary to the terms of a denial order.
    (b) Related persons. Related persons who are denied export 
privileges subsequent to [the effective date of the interim EAR] shall 
appear in part A of the Denied Persons List with a note identifying the 
denied persons to whom they are related in the column entitled ``Terms 
of order.''
    (c) Publication. New and amended denial orders are published in the 
Federal Register as they are issued. This publication constitutes 
official notice to the public.
    (d) Updates and availability.
    (1) As a convenience for the public, issuance of denial orders is 
announced in Export Administration Bulletins. Part A of the Denied 
Persons List is also available electronically on two bulletin boards of 
Department of Commerce agencies, Fedworld (National Technical 
Information Service) and the Economic Bulletin Board (Economics and 
Statistics Administration).

PART 766--ADMINISTRATIVE ENFORCEMENT PROCEEDINGS

Sec.
766.1  Scope.
766.2  Definitions.
766.3  Institution of administrative enforcement proceedings.
766.4  Representation.
766.5  Filing and service of papers other than charging letter.
766.6  Answer and demand for hearing.
766.7  Default.
766.8  Summary decision.
766.9  Discovery.
766.10  Subpoenas.
766.11  Matter protected against disclosure.
766.12  Prehearing conference.
766.13  Hearings.
766.14  Interlocutory review of rulings.
766.15  Proceeding without a hearing.
766.16  Procedural stipulations; extension of time.
766.17  Decision of the administrative law judge.
766.18  Settlement.
766.19  Reopening.
766.20  Record for decision and availability of documents.
766.21  Appeals.
766.22  Review by Under Secretary.
766.23  Related persons.
766.24  Temporary denials.
766.25  Administrative action denying permission to apply for or use 
export licenses.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 766.1 Scope.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. This part describes the procedures for 
imposing administrative sanctions for violations of the Export 
Administration Act of 1979, as amended (the EAA), the Export 
Administration Regulations (EAR), or any order, license or 
authorization issued thereunder. Parts 760 and 764 of the EAR specify 
those actions that constitute violations, and part 764 describes the 
sanctions that apply. In addition to describing the procedures for 
imposing sanctions, this part describes the procedures for imposing 
temporary denial orders to prevent imminent violations of the EAA, the 
EAR, or any order, license or authorization issued thereunder. This 
part also describes the procedures for taking the discretionary 
protective administrative action of denying the export privileges of 
persons who have been convicted of violating any of the statutes, 
including the EAA, listed in section 11(h) of the EAA. Nothing in this 
part shall be construed as applying to or limiting other administrative 
or enforcement action relating to the EAA or the EAR, including the 
exercise of any investigative authorities conferred by the EAA. This 
part does not confer any procedural rights or impose any requirements 
based on the Administrative Procedure Act for proceedings charging 
violations under the EAA, except as expressly provided for in this 
part.


Sec. 766.2  Definitions.

    As used in this part, the following definitions apply:
    Administrative law judge. The person authorized to conduct hearings 
in administrative enforcement proceedings brought under the EAA or to 
hear appeals from the imposition of temporary denial orders. The term 
``judge'' may be used for brevity when it is clear that the reference 
is to the administrative law judge.
    Assistant Secretary. The Assistant Secretary for Export 
Enforcement, Bureau of Export Administration.
    Bureau of Export Administration (BXA). Bureau of Export 
Administration, United States

[[Page 12908]]
Department of Commerce, and all of its component units, including, in 
particular for purposes of this part, the Office of Antiboycott 
Compliance, the Office of Export Enforcement, and the Office of 
Exporter Services.
    Final decision. A decision or order assessing a civil penalty, 
denial of export privileges or other sanction, or otherwise disposing 
of or dismissing a case, which is not subject to further review under 
this part, but which is subject to collection proceedings or judicial 
review in an appropriate Federal district court as authorized by law.
    Initial decision. A decision of the administrative law judge in 
proceedings involving violations relating to part 760 of the EAR, which 
is subject to appellate review by the Under Secretary for Export 
Administration, but which becomes the final decision in the absence of 
such an appeal.
    Party. BXA and any person named as a respondent under this part.
    Recommended decision. A decision of the administrative law judge in 
proceedings involving violations other than those relating to part 760 
of the EAR, which is subject to review by the Under Secretary of 
Commerce for Export Administration, who issues a written order 
affirming, modifying or vacating the recommended decision.
    Respondent. Any person named as the subject of a charging letter, 
proposed charging letter, temporary denial order, or other order 
proposed or issued under this part.
    Under Secretary. The Under Secretary for Export Administration, 
United States Department of Commerce.


Sec. 766.3  Institution of administrative enforcement proceedings.

    (a) Charging letters. The Director of the Office of Export 
Enforcement 1 (OEE) or the Director of the Office of Antiboycott 
Compliance (OAC), as appropriate, may begin administrative enforcement 
proceedings under this part by issuing a charging letter in the name of 
BXA. The charging letter shall constitute the formal complaint and will 
state that there is reason to believe that a violation of the EAA, the 
EAR, or any order, license or authorization issued thereunder, has 
occurred. It will set forth the essential facts about the alleged 
violation, refer to the specific regulatory or other provisions 
involved, and give notice of the sanctions available under part 764 of 
the EAR. The charging letter will inform the respondent that failure to 
answer the charges as provided in Sec. 766.6 of this part will be 
treated as a default under Sec. 766.7 of this part, that the respondent 
is entitled to a hearing if a written demand for one is requested with 
the answer, and that the respondent may be represented by counsel, or 
by other authorized representative who has a power of attorney to 
represent the respondent. A copy of the charging letter shall be filed 
with the administrative law judge, which filing shall toll the running 
of the applicable statute of limitations. Charging letters may be 
amended or supplemented at any time before an answer is filed, or, with 
permission of the administrative law judge, afterwards. BXA may 
unilaterally withdraw charging letters at any time, by notifying the 
respondent and the administrative law judge.

    \1\ By agreement with the Director of the Office of Strategic 
Industries and Economic Resource Administration, the Director of the 
Office of Export Enforcement enforces short supply controls imposed 
under section 7 of the EAA.
---------------------------------------------------------------------------

    (b) Notice of issuance of charging letter instituting 
administrative enforcement proceeding. A respondent shall be notified 
of the issuance of a charging letter, or any amendment or supplement 
thereto:
    (1) By mailing a copy by registered or certified mail addressed to 
the respondent at the respondent's last known address;
    (2) By leaving a copy with the respondent or with an officer, a 
managing or general agent, or any other agent authorized by appointment 
or by law to receive service of process for the respondent; or
    (3) By leaving a copy with a person of suitable age and discretion 
who resides at the respondent's last known dwelling.
    (4) Delivery of a copy of the charging letter, if made in the 
manner described in paragraph (b)(2) or (3) of this section, shall be 
evidenced by a certificate of service signed by the person making such 
service, stating the method of service and the identity of the person 
with whom the charging letter was left. The certificate of service 
shall be filed with the administrative law judge.
    (c) Date. The date of service of notice of the issuance of a 
charging letter instituting an administrative enforcement proceeding, 
or service of notice of the issuance of a supplement or amendment to a 
charging letter, is the date of its delivery, or of its attempted 
delivery if delivery is refused.


Sec. 766.4  Representation.

    A respondent individual may appear and participate in person, a 
corporation by a duly authorized officer or employee, and a partnership 
by a partner. If a respondent is represented by counsel, counsel shall 
be a member in good standing of the bar of any State, Commonwealth or 
Territory of the United States, or of the District of Columbia, or be 
licensed to practice law in the country in which counsel resides if not 
the United States. A respondent personally, or through counsel or other 
representative, shall file a notice of appearance with the 
administrative law judge. BXA will be represented by the Office of 
Chief Counsel for Export Administration, U.S. Department of Commerce.


Sec. 766.5  Filing and service of papers other than charging letter.

    (a) Filing. All papers to be filed shall be addressed to ``EAR 
Administrative Enforcement Proceedings,'' U.S. Department of Commerce, 
Room H-6716, 14th Street and Constitution Avenue, N.W., Washington, 
D.C. 20230, or such other place as the administrative law judge may 
designate. Filing by United States mail, first class postage prepaid, 
by express or equivalent parcel delivery service, or by hand delivery, 
is acceptable. Filing by mail from a foreign country shall be by 
airmail. In addition, the administrative law judge may authorize filing 
of papers by facsimile or other electronic means, provided that a hard 
copy of any such paper is subsequently filed. A copy of each paper 
filed shall be simultaneously served on each party.
    (b) Service. Service shall be made by personal delivery or by 
mailing one copy of each paper to each party in the proceeding. Service 
by delivery service or facsimile, in the manner set forth in paragraph 
(a) of this section, is acceptable. Service on BXA shall be addressed 
to the Chief Counsel for Export Administration, Room H-3839, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230. Service on a respondent shall be to the address 
to which the charging letter was sent or to such other address as 
respondent may provide. When a party has appeared by counsel or other 
representative, service on counsel or other representative shall 
constitute service on that party.
    (c) Date. The date of filing or service is the day when the papers 
are deposited in the mail or are delivered in person, by delivery 
service, or by facsimile.
    (d) Certificate of service. A certificate of service signed by the 
party making service, stating the date and manner of service, shall 
accompany every paper, other than the charging letter, filed and served 
on parties.
    (e) Computing period of time. In computing any period of time 
prescribed or allowed by this part or by

[[Page 12909]]
order of the administrative law judge or the Under Secretary, the day 
of the act, event, or default from which the designated period of time 
begins to run is not to be included. The last day of the period so 
computed is to be included unless it is a Saturday, a Sunday, or a 
legal holiday (as defined in Rule 6(a) of the Federal Rules of Civil 
Procedure), in which case the period runs until the end of the next day 
which is neither a Saturday, a Sunday, nor a legal holiday. 
Intermediate Saturdays, Sundays, and legal holidays are excluded from 
the computation when the period of time prescribed or allowed is seven 
days or less.


Sec. 766.6  Answer and demand for hearing.

    (a) When to answer. The respondent must answer the charging letter 
within 30 days after being served with notice of the issuance of a 
charging letter instituting an administrative enforcement proceeding, 
or within 30 days of notice of any supplement or amendment to a 
charging letter, unless time is extended under Sec. 766.16 of this 
part.
    (b) Contents of answer. The answer must be responsive to the 
charging letter and must fully set forth the nature of the respondent's 
defense or defenses. The answer must admit or deny specifically each 
separate allegation of the charging letter; if the respondent is 
without knowledge, the answer must so state and will operate as a 
denial. Failure to deny or controvert a particular allegation will be 
deemed an admission of that allegation. The answer must also set forth 
any additional or new matter the respondent believes supports a defense 
or claim of mitigation. Any defense or partial defense not specifically 
set forth in the answer shall be deemed waived, and evidence thereon 
may be refused, except for good cause shown.
    (c) Demand for hearing. If the respondent desires a hearing, a 
written demand for one must be submitted with the answer. Any demand by 
BXA for a hearing must be filed with the administrative law judge 
within 30 days after service of the answer. Failure to make a timely 
written demand for a hearing shall be deemed a waiver of the party's 
right to a hearing, except for good cause shown. If no party demands a 
hearing, the matter will go forward in accordance with the procedures 
set forth in Sec. 766.15 of this part.
    (d) English language required. The answer, all other papers, and 
all documentary evidence must be submitted in English, or translations 
into English must be filed and served at the same time.


Sec. 766.7  Default.

    (a) General. Failure of the respondent to file an answer within the 
time provided constitutes a waiver of the respondent's right to appear 
and contest the allegations in the charging letter. In such event, the 
administrative law judge, on BXA's motion and without further notice to 
the respondent, shall find the facts to be as alleged in the charging 
letter and render an initial or recommended decision containing 
findings of fact and appropriate conclusions of law and issue or 
recommend an order imposing appropriate sanctions. The decision and 
order shall be subject to review by the Under Secretary in accordance 
with the applicable procedures set forth in Sec. 766.21 or Sec. 766.22 
of this part.
    (b) Petition to set aside default. (1) Procedure. Upon petition 
filed by a respondent against whom a default order has been issued, 
which petition is accompanied by an answer meeting the requirements of 
Sec. 766.6(b) of this part, the Under Secretary may, after giving all 
parties an opportunity to comment, and for good cause shown, set aside 
the default and vacate the order entered thereon and remand the matter 
to the administrative law judge for further proceedings.
    (2) Time limits. A petition under this section must be made within 
one year of the date of entry of the order which the petition seeks to 
have vacated.


Sec. 766.8  Summary decision.

    At any time after a proceeding has been initiated, a party may move 
for a summary decision disposing of some or all of the issues. The 
administrative law judge may render an initial or recommended decision 
and issue or recommend an order if the entire record shows, as to the 
issue(s) under consideration:
    (a) That there is no genuine issue as to any material fact; and
    (b) That the moving party is entitled to a summary decision as a 
matter of law.


Sec. 766.9  Discovery.

    (a) General. The parties are encouraged to engage in voluntary 
discovery regarding any matter, not privileged, which is relevant to 
the subject matter of the pending proceeding. The provisions of the 
Federal Rules of Civil Procedure relating to discovery apply to the 
extent consistent with this part and except as otherwise provided by 
the administrative law judge or by waiver or agreement of the parties. 
The administrative law judge may make any order which justice requires 
to protect a party or person from annoyance, embarrassment, oppression, 
or undue burden or expense. These orders may include limitations on the 
scope, method, time and place of discovery, and provisions for 
protecting the confidentiality of classified or otherwise sensitive 
information.
    (b) Interrogatories and requests for admission or production of 
documents. A party may serve on any party interrogatories, requests for 
admission, or requests for production of documents for inspection and 
copying, and a party concerned may apply to the administrative law 
judge for such enforcement or protective order as that party deems 
warranted with respect to such discovery. The service of a discovery 
request shall be made at least 20 days before the scheduled date of the 
hearing unless the administrative law judge specifies a shorter time 
period. Copies of interrogatories, requests for admission and requests 
for production of documents and responses thereto shall be served on 
all parties, and a copy of the certificate of service shall be filed 
with the administrative law judge. Matters of fact or law of which 
admission is requested shall be deemed admitted unless, within a period 
designated in the request (at least 10 days after service, or within 
such additional time as the administrative law judge may allow), the 
party to whom the request is directed serves upon the requesting party 
a sworn statement either denying specifically the matters of which 
admission is requested or setting forth in detail the reasons why the 
party to whom the request is directed cannot truthfully either admit or 
deny such matters.
    (c) Depositions. Upon application of a party and for good cause 
shown, the administrative law judge may order the taking of the 
testimony of any person by deposition and the production of specified 
documents or materials by the person at the deposition. The application 
shall state the purpose of the deposition and set forth the facts 
sought to be established through the deposition.
    (d) Enforcement. The administrative law judge may order a party to 
answer designated questions, to produce specified documents or things 
or to take any other action in response to a proper discovery request. 
If a party does not comply with such an order, the administrative law 
judge may make a determination or enter any order in the proceeding as 
the judge deems reasonable and appropriate. The judge may strike 
related charges or defenses in whole or in part or may take particular 
facts relating to the discovery request to

[[Page 12910]]
which the party failed or refused to respond as being established for 
purposes of the proceeding in accordance with the contentions of the 
party seeking discovery. In addition, enforcement by a district court 
of the United States may be sought under section 12(a) of the EAA.


Sec. 766.10  Subpoenas.

    (a) Issuance. Upon the application of any party, supported by a 
satisfactory showing that there is substantial reason to believe that 
the evidence would not otherwise be available, the administrative law 
judge will issue subpoenas requiring the attendance and testimony of 
witnesses and the production of such books, records or other 
documentary or physical evidence for the purpose of the hearing, as the 
judge deems relevant and material to the proceedings, and reasonable in 
scope.
    (b) Service. Subpoenas issued by the administrative law judge may 
be served in any of the methods set forth in Sec. 766.5(b) of this 
part.
    (c) Timing. Applications for subpoenas must be submitted at least 
10 days before the scheduled hearing or deposition, unless the 
administrative law judge determines, for good cause shown, that 
extraordinary circumstances warrant a shorter time.


Sec. 766.11  Matter protected against disclosure.

    (a) Protective measures. It is often necessary for BXA to receive 
and consider information and documents that are sensitive from the 
standpoint of national security, foreign policy, business 
confidentiality, or investigative concern, and that are to be protected 
against disclosure. Accordingly, and without limiting the discretion of 
the administrative law judge to give effect to any other applicable 
privilege, it is proper for the administrative law judge to limit 
discovery or introduction of evidence or to issue such protective or 
other orders as in the judge's judgment may be consistent with the 
objective of preventing undue disclosure of the sensitive documents or 
information. Where the administrative law judge determines that 
documents containing the sensitive matter need to be made available to 
a respondent to avoid prejudice, the judge may direct BXA to prepare an 
unclassified and nonsensitive summary or extract of the documents. The 
administrative law judge may compare the extract or summary with the 
original to ensure that it is supported by the source document and that 
it omits only so much as must remain classified or undisclosed. The 
summary or extract may be admitted as evidence in the record.
    (b) Arrangements for access. If the administrative law judge 
determines that this procedure is unsatisfactory and that classified or 
otherwise sensitive matter must form part of the record in order to 
avoid prejudice to a party, the judge may provide the parties 
opportunity to make arrangements that permit a party or a 
representative to have access to such matter without compromising 
sensitive information. Such arrangements may include obtaining security 
clearances, obtaining a national interest determination under section 
12(c) of the EAA, or giving counsel for a party access to sensitive 
information and documents subject to assurances against further 
disclosure, including a protective order, if necessary.


Sec. 766.12  Prehearing conference.

    (a) The administrative law judge, on the judge's own motion or on 
request of a party, may direct the parties to participate in a 
prehearing conference, either in person or by telephone, to consider:
    (1) Simplification of issues;
    (2) The necessity or desirability of amendments to pleadings;
    (3) Obtaining stipulations of fact and of documents to avoid 
unnecessary proof; or
    (4) Such other matters as may expedite the disposition of the 
proceedings.
    (b) The administrative law judge may order the conference 
proceedings to be recorded electronically or taken by a reporter, 
transcribed and filed with the judge.
    (c) If a prehearing conference is impracticable, the administrative 
law judge may direct the parties to correspond with the judge to 
achieve the purposes of such a conference.
    (d) The administrative law judge will prepare a summary of any 
actions agreed on or taken pursuant to this section. The summary will 
include any written stipulations or agreements made by the parties.


Sec. 766.13  Hearings.

    (a) Scheduling. The administrative law judge, by agreement with the 
parties or upon notice to all parties of not less than 30 days, will 
schedule a hearing. All hearings will be held in Washington, D.C., 
unless the administrative law judge determines, for good cause shown, 
that another location would better serve the interests of justice.
    (b) Hearing procedure. Hearings will be conducted in a fair and 
impartial manner by the administrative law judge, who may limit 
attendance at any hearing or portion thereof to the parties, their 
representatives and witnesses if the judge deems this necessary or 
advisable in order to protect sensitive matter (see Sec. 766.11 of this 
part) from improper disclosure. The rules of evidence prevailing in 
courts of law do not apply, and all evidentiary material deemed by the 
administrative law judge to be relevant and material to the proceeding 
and not unduly repetitious will be received and given appropriate 
weight.
    (c) Testimony and record. Witnesses will testify under oath or 
affirmation. A verbatim record of the hearing and of any other oral 
proceedings will be taken by reporter or by electronic recording, 
transcribed and filed with the administrative law judge. A respondent 
may examine the transcript and may obtain a copy by paying any 
applicable costs. Upon such terms as the administrative law judge deems 
just, the judge may direct that the testimony of any person be taken by 
deposition and may admit an affidavit or declaration as evidence, 
provided that any affidavits or declarations have been filed and served 
on the parties sufficiently in advance of the hearing to permit a party 
to file and serve an objection thereto on the grounds that it is 
necessary that the affiant or declarant testify at the hearing and be 
subject to cross-examination.
    (d) Failure to appear. If a party fails to appear in person or by 
counsel at a scheduled hearing, the hearing may nevertheless proceed, 
and that party's failure to appear will not affect the validity of the 
hearing or any proceedings or action taken thereafter.


Sec. 766.14  Interlocutory review of rulings.

    (a) At the request of a party, or on the judge's own initiative, 
the administrative law judge may certify to the Under Secretary for 
review a ruling that does not finally dispose of a proceeding, if the 
administrative law judge determines that immediate review may hasten or 
facilitate the final disposition of the matter.
    (b) Upon certification to the Under Secretary of the interlocutory 
ruling for review, the parties will have 10 days to file and serve 
briefs stating their positions, and five days to file and serve 
replies, following which the Under Secretary will decide the matter 
promptly.


Sec. 766.15  Proceeding without a hearing.

    If the parties have waived a hearing, the case will be decided on 
the record by the administrative law judge. Proceeding without a 
hearing does not relieve the parties from the necessity of

[[Page 12911]]
proving the facts supporting their charges or defenses. Affidavits or 
declarations, depositions, admissions, answers to interrogatories and 
stipulations may supplement other documentary evidence in the record. 
The administrative law judge will give each party reasonable 
opportunity to file rebuttal evidence.


Sec. 766.16  Procedural stipulations; extension of time.

    (a) Procedural stipulations. Unless otherwise ordered, a written 
stipulation agreed to by all parties and filed with the administrative 
law judge will modify any procedures established by this part.
    (b) Extension of time. (1) The parties may extend any applicable 
time limitation, by stipulation filed with the administrative law judge 
before the time limitation expires.
    (2) The administrative law judge may, on the judge's own initiative 
or upon application by any party, either before or after the expiration 
of any applicable time limitation, extend the time within which to file 
and serve an answer to a charging letter or do any other act required 
by this part.


Sec. 766.17  Decision of the administrative law judge.

    (a) Predecisional matters. Except for default proceedings under 
Sec. 766.7 of this part, the administrative law judge will give the 
parties reasonable opportunity to submit the following, which will be 
made a part of the record:
    (1) Exceptions to any ruling by the judge or to the admissibility 
of evidence proffered at the hearing;
    (2) Proposed findings of fact and conclusions of law;
    (3) Supporting legal arguments for the exceptions and proposed 
findings and conclusions submitted; and
    (4) A proposed order.
    (b) Decision and order. After considering the entire record in the 
proceeding, the administrative law judge will issue a written decision.
    (1) Initial decision. For proceedings charging violations relating 
to part 760 of the EAR, the decision rendered shall be an initial 
decision. The decision will include findings of fact, conclusions of 
law, and findings as to whether there has been a violation of the EAA, 
the EAR, or any order, license or authorization issued thereunder. If 
the administrative law judge finds that the evidence of record is 
insufficient to sustain a finding that a violation has occurred with 
respect to one or more charges, the judge shall order dismissal of the 
charges in whole or in part, as appropriate. If the administrative law 
judge finds that one or more violations have been committed, the judge 
may issue an order imposing administrative sanctions, as provided in 
part 764 of the EAR. The decision and order shall be served on each 
party, and shall become effective as the final decision of the 
Department 30 days after service, unless an appeal is filed in 
accordance with Sec. 766.21 of this part.
    (2) Recommended decision. For proceedings not involving violations 
relating to part 760 of the EAR, the decision rendered shall be a 
recommended decision. The decision will include recommended findings of 
fact, conclusions of law, and findings as to whether there has been a 
violation of the EAA, the EAR or any order, license or authorization 
issued thereunder. If the administrative law judge finds that the 
evidence of record is insufficient to sustain a recommended finding 
that a violation has occurred with respect to one or more charges, the 
judge shall recommend dismissal of any such charge. If the 
administrative law judge finds that one or more violations have been 
committed, the judge shall recommend an order imposing administrative 
sanctions, as provided in part 764 of the EAR, or such other action as 
the judge deems appropriate. The administrative law judge shall 
immediately certify the record, including the original copy of the 
recommended decision and order, to the Under Secretary for review in 
accordance with Sec. 766.22 of this part. The administrative law judge 
shall also immediately serve the recommended decision on all parties. 
Because of the time limits established in the EAA for review by the 
Under Secretary, service upon parties shall be by personal delivery, 
express mail or other overnight carrier.
    (c) Suspension of sanctions. Any order imposing administrative 
sanctions may provide for the suspension of the sanction imposed, in 
whole or in part and on such terms of probation or other conditions as 
the administrative law judge or the Under Secretary may specify. Any 
suspension order may be modified or revoked by the signing official 
upon application of BXA showing a violation of the probationary terms 
or other conditions, after service on the respondent of notice of the 
application in accordance with the service provisions of Sec. 766.3 of 
this part, and with such opportunity for response as the responsible 
signing official in his/her discretion may allow. A copy of any order 
modifying or revoking the suspension shall also be served on the 
respondent in accordance with the provisions of Sec. 766.3 of this 
part.
    (d) Time for decision. Administrative enforcement proceedings not 
involving violations relating to part 760 of the EAR shall be 
concluded, including review by the Under Secretary under Sec. 766.22 of 
this part, within one year of the submission of a charging letter, 
unless the administrative law judge, for good cause shown, extends such 
period. The charging letter will be deemed to have been submitted to 
the administrative law judge on the date the respondent files an answer 
or on the date BXA files a motion for a default order pursuant to 
Sec. 766.7(a) of this part, whichever occurs first.


Sec. 766.18  Settlement.

    (a) Cases may be settled before service of a charging letter. In 
cases in which settlement is reached before service of a charging 
letter, a proposed charging letter will be prepared, and a settlement 
proposal consisting of a settlement agreement and order will be 
submitted to the Assistant Secretary for approval and signature. If the 
Assistant Secretary does not approve the proposal, he/she will notify 
the parties and the case will proceed as though no settlement proposal 
had been made. If the Assistant Secretary approves the proposal, he/she 
will issue an appropriate order, and no action will be required by the 
administrative law judge.
    (b) Cases may also be settled after service of a charging letter. 
(1) If the case is pending before the administrative law judge, the 
judge shall stay the proceedings for a reasonable period of time, 
usually not to exceed 30 days, upon notification by the parties that 
they have entered into good faith settlement negotiations. The 
administrative law judge may, in his/her discretion, grant additional 
stays. If settlement is reached, a proposal will be submitted to the 
Assistant Secretary for approval and signature. If the Assistant 
Secretary approves the proposal, he/she will issue an appropriate 
order, and notify the administrative law judge that the case is 
withdrawn from adjudication. If the Assistant Secretary does not 
approve the proposal, he/she will notify the parties and the case will 
proceed to adjudication by the administrative law judge as though no 
settlement proposal had been made.
    (2) If the case is pending before the Under Secretary under 
Sec. 766.21 or Sec. 766.22 of this part, the parties may submit a 
settlement proposal to the Under Secretary for approval and signature. 
If the Under Secretary approves the proposal, he/she will issue an 
appropriate order. If the Under Secretary does not approve the 
proposal, the case will proceed to final

[[Page 12912]]
decision in accordance with Sec. 766.21 or Sec. 766.22 of this part, as 
appropriate.
    (c) Any order disposing of a case by settlement may suspend the 
administrative sanction imposed, in whole or in part, on such terms of 
probation or other conditions as the signing official may specify. Any 
such suspension may be modified or revoked by the signing official, in 
accordance with the procedures set forth in Sec. 766.17(c) of this 
part.
    (d) Any respondent who agrees to an order imposing any 
administrative sanction does so solely for the purpose of resolving the 
claims in the administrative enforcement proceeding brought under this 
part. This reflects the fact that BXA has neither the authority nor the 
responsibility for instituting, conducting, settling, or otherwise 
disposing of criminal proceedings. That authority and responsibility 
are vested in the Attorney General and the Department of Justice.
    (e) Cases that are settled may not be reopened or appealed.


Sec. 766.19  Reopening.

    The respondent may petition the administrative law judge within one 
year of the date of the final decision, except where the decision 
arises from a default judgment or from a settlement, to reopen an 
administrative enforcement proceeding to receive any relevant and 
material evidence which was unknown or unobtainable at the time the 
proceeding was held. The petition must include a summary of such 
evidence, the reasons why it is deemed relevant and material, and the 
reasons why it could not have been presented at the time the 
proceedings were held. The administrative law judge will grant or deny 
the petition after providing other parties reasonable opportunity to 
comment. If the proceeding is reopened, the administrative law judge 
may make such arrangements as the judge deems appropriate for receiving 
the new evidence and completing the record. The administrative law 
judge will then issue a new initial or recommended decision and order, 
and the case will proceed to final decision and order in accordance 
with Sec. 766.21 or Sec. 766.22 of this part, as appropriate.


Sec. 766.20  Record for decision and availability of documents.

    (a) General. The transcript of hearings, exhibits, rulings, orders, 
all papers and requests filed in the proceedings and, for purposes of 
any appeal under Sec. 766.21 of this part or review under Sec. 766.22 
of this part, the decision of the administrative law judge and such 
submissions as are provided for by Secs. 766.21 and 766.22 of this 
part, will constitute the record and the exclusive basis for decision. 
When a case is settled after the service of a charging letter, the 
record will consist of any and all of the foregoing, as well as the 
settlement agreement and the order. When a case is settled before 
service of a charging letter, the record will consist of the proposed 
charging letter, the settlement agreement and the order.
    (b) Restricted access. On the judge's own motion, or on the motion 
of any party, the administrative law judge may direct that there be a 
restricted access portion of the record for any material in the record 
to which public access is restricted by law or by the terms of a 
protective order entered in the proceedings. A party seeking to 
restrict access to any portion of the record is responsible for 
submitting, at the time specified in Sec. 766.20(c)(2) of this part, a 
version of the document proposed for public availability that reflects 
the requested deletion. The restricted access portion of the record 
will be placed in a separate file and the file will be clearly marked 
to avoid improper disclosure and to identify it as a portion of the 
official record in the proceedings. The administrative law judge may 
act at any time to permit material that becomes declassified or 
unrestricted through passage of time to be transferred to the 
unrestricted access portion of the record.
    (c) Availability of documents. (1) Scope. (i) For proceedings 
started on or after October 12, 1979, all charging letters, answers, 
initial and recommended decisions, and orders disposing of a case will 
be made available for public inspection in the BXA Freedom of 
Information Records Inspection Facility, U.S. Department of Commerce, 
Room H-6624, 14th Street and Pennsylvania Avenue, N.W., Washington, 
D.C. 20230. The complete record for decision, as defined in paragraphs 
(a) and (b) of this section will be made available on request. In 
addition, all decisions of the Under Secretary on appeal pursuant to 
Sec. 766.22 of this part and those final orders providing for denial, 
suspension or revocation of export privileges shall be published in the 
Federal Register.
    (ii) For proceedings started before October 12, 1979, the public 
availability of the record for decision will be governed by the 
applicable regulations in effect when the proceedings were begun.
    (2) Timing. (i) Antiboycott cases. For matters relating to part 760 
of the EAR, documents are available immediately upon filing, except for 
any portion of the record for which a request for segregation is made. 
Parties that seek to restrict access to any portion of the record under 
paragraph (b) of this section must make such a request, together with 
the reasons supporting the claim of confidentiality, simultaneously 
with the submission of material for the record.
    (ii) Other cases. In all other cases, documents will be available 
only after the final administrative disposition of the case. In these 
cases, parties desiring to restrict access to any portion of the record 
under paragraph (b) of this section must assert their claim of 
confidentiality, together with the reasons for supporting the claim, 
before the close of the proceeding.


Sec. 766.21  Appeals.

    (a) Grounds. For proceedings charging violations relating to part 
760 of the EAR, a party may appeal to the Under Secretary from an order 
disposing of a proceeding or an order denying a petition to set aside a 
default or a petition for reopening, on the grounds:
    (1) That a necessary finding of fact is omitted, erroneous or 
unsupported by substantial evidence of record;
    (2) That a necessary legal conclusion or finding is contrary to 
law;
    (3) That prejudicial procedural error occurred, or
    (4) That the decision or the extent of sanctions is arbitrary, 
capricious or an abuse of discretion. The appeal must specify the 
grounds on which the appeal is based and the provisions of the order 
from which the appeal is taken.
    (b) Filing of appeal. An appeal from an order must be filed with 
the Office of the Under Secretary for Export Administration, Bureau of 
Export Administration, U.S. Department of Commerce, Room H-3898, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230, within 30 
days after service of the order appealed from. If the Under Secretary 
cannot act on an appeal for any reason, the Under Secretary will 
designate another Department of Commerce official to receive and act on 
the appeal.
    (c) Effect of appeal. The filing of an appeal shall not stay the 
operation of any order, unless the order by its express terms so 
provides or unless the Under Secretary, upon application by a party and 
with opportunity for response, grants a stay.
    (d) Appeal procedure. The Under Secretary normally will not hold 
hearings or entertain oral argument on appeals. A full written 
statement in support of the appeal must be filed with the appeal and be 
simultaneously served on all parties, who shall have 30 days from 
service to file a reply. At his/

[[Page 12913]]
her discretion, the Under Secretary may accept new submissions, but 
will not ordinarily accept those submissions filed more than 30 days 
after the filing of the reply to the appellant's first submission.
    (e) Decisions. The decision will be in writing and will be 
accompanied by an order signed by the Under Secretary giving effect to 
the decision. The order may either dispose of the case by affirming, 
modifying or reversing the order of the administrative law judge or may 
refer the case back to the administrative law judge for further 
proceedings.


Sec. 766.22  Review by Under Secretary.

    (a) Recommended decision. For proceedings not involving violations 
relating to part 760 of the EAR, the administrative law judge shall 
immediately refer the recommended decision and order to the Under 
Secretary. Because of the time limits provided under the EAA for review 
by the Under Secretary, service of the recommended decision and order 
on the parties, all papers filed by the parties in response, and the 
final decision of the Under Secretary must be by personal delivery, 
facsimile, express mail or other overnight carrier. If the Under 
Secretary cannot act on a recommended decision and order for any 
reason, the Under Secretary will designate another Department of 
Commerce official to receive and act on the recommendation.
    (b) Submissions by parties. Parties shall have 12 days from the 
date of issuance of the recommended decision and order in which to 
submit simultaneous responses. Parties thereafter shall have eight days 
from receipt of any response(s) in which to submit replies. Any 
response or reply must be received within the time specified by the 
Under Secretary.
    (c) Final decision. Within 30 days after receipt of the recommended 
decision and order, the Under Secretary shall issue a written order 
affirming, modifying or vacating the recommended decision and order of 
the administrative law judge. If he/she vacates the recommended 
decision and order, the Under Secretary may refer the case back to the 
administrative law judge for further proceedings. Because of the time 
limits, the Under Secretary's review will ordinarily be limited to the 
written record for decision, including the transcript of any hearing, 
and any submissions by the parties concerning the recommended decision.
    (d) Delivery. The final decision and implementing order shall be 
served on the parties and will be publicly available in accordance with 
Sec. 766.20 of this part.
    (e) Appeals. The charged party may appeal the Under Secretary's 
written order within 15 days to the United States Court of Appeals for 
the District of Columbia pursuant to 50 U.S.C. app. Sec. 2412(c)(3).


Sec. 766.23  Related persons.

    (a) General. In order to prevent evasion, certain types of orders 
under this part may be made applicable not only to the respondent, but 
also to other persons then or thereafter related to the respondent by 
ownership, control, position of responsibility, affiliation, or other 
connection in the conduct of trade or business. Orders that may be made 
applicable to related persons include those that deny or affect export 
privileges, including temporary denial orders, and those that exclude a 
respondent from practice before BXA.
    (b) Procedures. If BXA has reason to believe that a person is 
related to the respondent and that an order that is being sought or 
that has been issued should be made applicable to that person in order 
to prevent evasion of the order, BXA shall, except in an ex parte 
proceeding under Sec. 766.24(a) of this part, give that person notice 
in accordance with Sec. 766.5(b) of this part and an opportunity to 
oppose such action. If the official authorized to issue the order 
against the respondent finds that the order should be made applicable 
to that person in order to prevent evasion of the order that official 
shall issue or amend the order accordingly.
    (c) Appeals. Any person named by BXA in an order as related to the 
respondent may file an appeal with the administrative law judge. The 
sole issues to be raised and ruled on in any such appeal are whether 
the person so named is related to the respondent and whether the order 
is justified in order to prevent evasion. The recommended decision and 
order of the administrative law judge shall be reviewed by the Under 
Secretary in accordance with the procedures set forth in Sec. 766.22 of 
this part.


Sec. 766.24  Temporary denials.

    (a) General. The procedures in this section apply to temporary 
denial orders issued on or after July 12, 1985. For temporary denial 
orders issued on or before July 11, 1985, the proceedings will be 
governed by the applicable regulations in effect at the time the 
temporary denial orders were issued. Without limiting any other action 
BXA may take under the EAR with respect to any application, order, 
license or authorization issued under the EAA, BXA may ask the 
Assistant Secretary to issue a temporary denial order on an ex parte 
basis to prevent an imminent violation, as defined in this section, of 
the EAA, the EAR, or any order, license or authorization issued 
thereunder. The temporary denial order will deny export privileges to 
any person named in the order as provided for in Sec. 764.3(a)(2) of 
the EAR.
    (b) Issuance. (1) The Assistant Secretary may issue an order 
temporarily denying to a person any or all of the export privileges 
described in part 764 of the EAR upon a showing by BXA that the order 
is necessary in the public interest to prevent an imminent violation of 
the EAA, the EAR, or any order, license or authorization issued 
thereunder.
    (2) The temporary denial order shall define the imminent violation 
and state why it was issued without a hearing. Because all denial 
orders are public, the description of the imminent violation and the 
reasons for proceeding on an ex parte basis set forth therein shall be 
stated in a manner that is consistent with national security, foreign 
policy, business confidentiality, and investigative concerns.
    (3) A violation may be ``imminent'' either in time or in degree of 
likelihood. To establish grounds for the temporary denial order, BXA 
may show either that a violation is about to occur, or that the general 
circumstances of the matter under investigation or case under criminal 
or administrative charges demonstrate a likelihood of future 
violations. To indicate the likelihood of future violations, BXA may 
show that the violation under investigation or charges is significant, 
deliberate, covert and/or likely to occur again, rather than technical 
or negligent, and that it is appropriate to give notice to companies in 
the United States and abroad to cease dealing with the person in U.S.-
origin items in order to reduce the likelihood that a person under 
investigation or charges continues to export or acquire abroad such 
items, risking subsequent disposition contrary to export control 
requirements. Lack of information establishing the precise time a 
violation may occur does not preclude a finding that a violation is 
imminent, so long as there is sufficient reason to believe the 
likelihood of a violation.
    (4) The temporary denial order will be issued for a period not 
exceeding 180 days.
    (5) Notice of the issuance of a temporary denial order on an ex 
parte basis shall be given in accordance with Sec. 766.5(b) of this 
part upon issuance.

[[Page 12914]]

    (c) Related persons. A temporary denial order may be made 
applicable to related persons in accordance with Sec. 766.23 of this 
part.
    (d) Renewal. (1) If, no later than 20 days before the expiration 
date of a temporary denial order, BXA believes that renewal of the 
denial order is necessary in the public interest to prevent an imminent 
violation, BXA may file a written request setting forth the basis for 
its belief, including any additional or changed circumstances, asking 
that the Assistant Secretary renew the temporary denial order, with 
modifications, if any are appropriate, for an additional period not 
exceeding 180 days. BXA's request shall be delivered to the respondent, 
or any agent designated for this purpose, in accordance with 
Sec. 766.5(b) of this part, which will constitute notice of the renewal 
application.
    (2) Non-resident respondents. To facilitate timely notice of 
renewal requests, a respondent not a resident of the United States may 
designate a local agent for this purpose and provide written 
notification of such designation to BXA in the manner set forth in 
Sec. 766.5(b) of this part.
    (3) Hearing. (i) A respondent may oppose renewal of a temporary 
denial order by filing with the Assistant Secretary a written 
submission, supported by appropriate evidence, to be received not later 
than seven days before the expiration date of such order. For good 
cause shown, the Assistant Secretary may consider submissions received 
not later than five days before the expiration date. The Assistant 
Secretary ordinarily will not allow discovery; however, for good cause 
shown in respondent's submission, he/she may allow the parties to take 
limited discovery, consisting of a request for production of documents. 
If requested by the respondent in the written submission, the Assistant 
Secretary shall hold a hearing on the renewal application. The hearing 
shall be on the record and ordinarily will consist only of oral 
argument. The only issue to be considered on BXA's request for renewal 
is whether the temporary denial order should be continued to prevent an 
imminent violation as defined herein.
    (ii) Any person designated as a related person may not oppose 
issuance or renewal of the temporary denial order, but may file an 
appeal in accordance with Sec. 766.2(3)(c) of this part.
    (iii) If no written opposition to BXA's renewal request is received 
within the specified time, the Assistant Secretary may issue the order 
renewing the temporary denial order without a hearing.
    (4) A temporary denial order may be renewed more than once.
    (e) Appeals. (1) Filing. (i) A respondent may, at any time, file an 
appeal of the initial or renewed temporary denial order with the 
administrative law judge.
    (ii) The filing of an appeal shall stay neither the effectiveness 
of the temporary denial order nor any application for renewal, nor will 
it operate to bar the Assistant Secretary's consideration of any 
renewal application.
    (2) Grounds. A respondent may appeal on the grounds that the 
finding that the order is necessary in the public interest to prevent 
an imminent violation is unsupported.
    (3) Appeal procedure. A full written statement in support of the 
appeal must be filed with the appeal together with appropriate 
evidence, and be simultaneously served on BXA, which shall have seven 
days from receipt to file a reply. Service on the administrative law 
judge shall be addressed to the Office of the Administrative Law Judge, 
U.S. Department of Commerce, Room H-6716, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230. Service on BXA shall be as set 
forth in Sec. 766.5(b) of this part. The administrative law judge 
normally will not hold hearings or entertain oral argument on appeals.
    (4) Recommended Decision. Within 10 working days after an appeal is 
filed, the administrative law judge shall submit a recommended decision 
to the Under Secretary, and serve copies on the parties, recommending 
whether the issuance or the renewal of the temporary denial order 
should be affirmed, modified or vacated.
    (5) Final decision. Within five working days after receipt of the 
recommended decision, the Under Secretary shall issue a written order 
accepting, rejecting or modifying the recommended decision. Because of 
the time constraints, the Under Secretary's review will ordinarily be 
limited to the written record for decision, including the transcript of 
any hearing. The issuance or renewal of the temporary denial order 
shall be affirmed only if there is reason to believe that the temporary 
denial order is required in the public interest to prevent an imminent 
violation of the EAA, the EAR, or any order, license or other 
authorization issued under the EAA. The Under Secretary's written order 
is final and is not subject to judicial review, except as provided in 
paragraph (g) of this section.
    (f) Delivery. A copy of any temporary denial order issued or 
renewed and any final decision on appeal shall be published in the 
Federal Register and shall be delivered to BXA and to the respondent, 
or any agent designated for this purpose, and to any related person in 
the same manner as provided in Sec. 766.5 of this part for filing for 
papers other than a charging letter.
    (g) Judicial review. A respondent temporarily denied export 
privileges by order of the Under Secretary may appeal to the United 
States Court of Appeals for the District of Columbia pursuant to 50 
U.S.C. app. Sec. 2412(d)(3).


Sec. 766.25  Administrative action denying permission to apply for or 
use export licenses.

    (a) General. The Director of the Office of Exporter Services, in 
consultation with the Director of the Office of Export Enforcement, may 
deny permission to apply for or use any license, including any License 
Exception, to any person who has been convicted of a violation of the 
EAA, the EAR, or any order, license or authorization issued thereunder; 
any regulation, license or order issued under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706); 18 U.S.C. 793, 794 
or 798; section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 
783(b)), or section 38 of the Arms Export Control Act (22 U.S.C. 2778).
    (b) Procedure. Upon notification that a person has been convicted 
of a violation of one or more of the provisions specified in paragraph 
(a) of this section, the Director of the Office of Exporter Services, 
in consultation with the Director of the Office of Export Enforcement, 
will determine whether to deny permission to apply for or use any 
export license, including any License Exception, to any such person. 
The Director of the Office of Exporter Services will notify each person 
denied under this section by letter stating that permission to apply 
for or use export licenses has been denied.
    (c) Criteria. In determining whether and for how long to deny U.S. 
export privileges to a person previously convicted of one or more of 
the statutes set forth in paragraph (a) of this section, the Director 
of the Office of Exporter Services may take into consideration any 
relevant information, including, but not limited to, the seriousness of 
the offense involved in the criminal prosecution, the nature and 
duration of the criminal sanctions imposed, and whether the person has 
undertaken any corrective measures.
    (d) Duration. Any denial of permission to apply for or use export

[[Page 12915]]
licenses, including any License Exception, under this section shall not 
exceed 10 years from the date of the conviction of the person who is 
subject to the denial.
    (e) Effect. Any person denied permission to apply for and use 
licenses under this section will be considered a ``person denied export 
privileges'' for purposes of Sec. 736.2(b)(4) (General Prohibition 4--
Engage in actions prohibited by a denial order) and Sec. 764.2(k) of 
the EAR.
    (f) Publication. The name and address(es) of any person denied 
permission to apply for or use export licenses under this section will 
be published as described in Supplement No. 2 to part 764 of the EAR, 
noting that such action was taken pursuant to this section and section 
11(h) of the EAA.
    (g) Appeal. An appeal of an action under this section will be 
pursuant to part 756 of the EAR.
    (h) Applicability to related person. The Director of the Office of 
Exporter Services, in consultation with the Director of the Office of 
Export Enforcement, may take action in accordance with Sec. 766.23 of 
this part to make applicable to related persons an order that is being 
sought or that has been issued under this section.

PART 768--FOREIGN AVAILABILITY DETERMINATION PROCEDURES AND 
CRITERIA

Sec. 768.1  Introduction.
Sec. 768.2  Foreign availability described.
Sec. 768.3  Foreign availability assessment.
Sec. 768.4  Initiation of an assessment.
Sec. 768.5  Contents of foreign availability submissions and 
Technical Advisory Committee certifications.
Sec. 768.6  Criteria.
Sec. 768.7  Procedures.
Sec. 768.8  Eligibility of expedited licensing procedures for non-
controlled countries.
Sec. 768.9  Appeals of negative foreign availability determinations.
Sec. 768.10  Removal of controls on less sophisticated items.

Supplement No. 1 to Part 768--Evidence of Foreign Availability

Supplement No. 2 to Part 768--Items Eligible For Expedited Licensing 
Procedures

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 768.1  Introduction.

    In this part, references to the Export Administration Regulations 
(EAR) are references to 15 CFR chapter VII, subchapter C.
    (a) Authority. Pursuant to sections 5(f) and 5(h) of the Export 
Administration Act (EAA), the Under Secretary of Commerce for Export 
Administration directs the Bureau of Export Administration (BXA) in 
gathering and analyzing all the evidence necessary for the Secretary to 
determine foreign availability.
    (b) Scope. This part applies only to the extent that items are 
controlled for national security purposes.
    (c) Types of programs. There are two general programs of foreign 
availability:
    (1) Foreign availability to controlled countries. In this category 
are denied license assessments (see Secs. 768.4(b) and 768.7 of this 
part) and decontrol assessments (see Secs. 768.4(c) and 768.7 of this 
part).
    (2) Foreign availability to non-controlled countries. In this 
category are denied license assessments, decontrol assessments, and 
evaluations of eligibility for expedited licensing (see Sec. 768.8 of 
this part).
    (d) Definitions. The following are definitions of terms used in 
this part 768:
    Allegation. See foreign availability submission.
    Assessment. An evidentiary analysis that BXA conducts concerning 
the foreign availability of a given item based on the assessment 
criteria, data gathered by BXA, and the data and recommendations 
submitted by the Departments of Defense and State and other relevant 
departments and agencies, TAC committees, and industry.
    Assessment criteria. Statutorily established criteria that must be 
assessed for the Secretary to make a determination with respect to 
foreign availability. They are, available-in-fact, from a non-U.S. 
source, in sufficient quantity so as to render the control ineffective, 
and of comparable quality. (See Sec. 768.6 of this part).
    Available-in-fact. An item is available-in-fact to a country if it 
is produced within the country or if it may be obtained by that country 
from a third country. Ordinarily, items will not be considered 
available-in-fact to non-controlled countries if the items are 
available only under a validated national security license or a 
comparable authorization from a country that maintains export controls 
on such items cooperatively with the United States.
    Claimant. Any party who makes a foreign availability submission, 
excluding TACs.
    Comparable quality. An item is of comparable quality to an item 
controlled under the EAR if it possesses the characteristics specified 
in the Commerce Control List (CCL) for that item and is alike in key 
characteristics that include, but are not limited to: (1) Function; (2) 
technological approach; (3) performance thresholds; (4) maintainability 
and service life; and (5) any other attribute relevant to the purpose 
for which the control was placed on the item.
    Controlled countries. Albania, Armenia, Azerbaijan, Belarus, 
Bulgaria, Cambodia, Cuba, Estonia, Georgia, Kazakhstan, Kyrgystan, 
Laos, Latvia, Lithuania, Moldova, Mongolia, North Korea, Romania, 
Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Vietnam and the 
People's Republic of China.
    Decontrol. Removal of license requirements under the EAR.
    Decontrol assessment. An assessment of the foreign availability of 
an item to a country or countries for purposes of determining whether 
decontrol is warranted. Such assessments may be conducted after BXA 
receives a foreign availability submission or a TAC certification, or 
by the Secretary's own initiative.
    Denied license assessment. A foreign availability assessment 
conducted as a result of a claimant's allegation of foreign 
availability for an item (or items) that BXA has denied or has issued a 
letter of intent to deny a license. If the Secretary determines that 
foreign availability exists, BXA's approval of a license will be 
limited to the items, countries, and quantities in the allegation.
    Determination. The Secretary's decision that foreign availability 
within the meaning of the EAA does or does not exist. (See Sec. 768.7 
of this part).
    Expedited licensing procedure eligibility evaluation. An evaluation 
that BXA initiates for the purpose of determining whether an item is 
eligible for the expedited licensing procedure. (See Sec. 768.8 of this 
part).
    Expedited licensing procedures. Under expedited licensing 
procedures, BXA reviews and processes a license application for the 
export of an eligible item to a non-controlled country within statutory 
time limits. Licenses are deemed approved unless BXA denies within the 
statutory time limits (See Sec. 768.8 of this part).
    Foreign availability submission (FAS). An allegation of foreign 
availability a claimant makes, supported by reasonable evidence, and 
submits to BXA. (See Sec. 768.5 of this part).
    Item. Any commodity, software, or technology.
    Items eligible for non-controlled country expedited licensing 
procedures. The items described in Supplement No. 2 to this part 768 
are eligible for the

[[Page 12916]]
expedited license procedures (See Sec. 768.8 of this part).
    National Security Override (NSO). A Presidential decision to 
maintain export controls on an item notwithstanding its foreign 
availability as determined under the EAA. The President's decision is 
based on his/her determination that the absence of the controls would 
prove detrimental to the national security of the United States. Once 
the President makes such a decision, the President must actively pursue 
negotiations to eliminate foreign availability with the governments of 
the sources of foreign availability. (See Sec. 768.7 of this part).
    Non-controlled countries. Any country not defined as a controlled 
country by this section.
    Non-U.S. source/foreign source. A person located outside the 
jurisdiction of the United States (as defined in part 772 of the EAR).
    Reasonable evidence. Relevant information that is credible.
    Reliable evidence. Relevant information that is credible and 
dependable.
    Secretary. As used in this part, the Secretary refers to the 
Secretary of Commerce or his/her designee.
    Similar quality. An item is of similar quality to an item that is 
controlled under the EAR if it is substantially alike in key 
characteristics that may include, but are not limited to: (1) Function; 
(2) technological approach; (3) performance thresholds; (4) 
maintainability and service life; and (5) any other attribute relevant 
to the purpose for which the control was placed on the item.
    Sufficient quantity. The amount of an item that would render the 
U.S. export control, or the denial of the license in question, 
ineffective in achieving its purpose. For a controlled country, it is 
the quantity that meets the military needs of that country so that U.S. 
exports of the item to that country would not make a significant 
contribution to its military potential.
    Technical Advisory Committee (TAC). A Committee created under 
section 5(h) of the EAA that advises and assists the Secretary of 
Commerce, the Secretary of Defense, and any other department, agency, 
or official of the Government of the United States to which the 
President delegates authority under the EAA on export control matters 
related to specific areas of controlled items.
    TAC certification. A statement that a TAC submits to BXA, supported 
by reasonable evidence, documented as in a FAS, that foreign 
availability to a controlled country exists for an item that falls 
within the TAC's area of technical expertise.


Sec. 768.2  Foreign availability described.

    (a) Foreign availability. Foreign availability exists when the 
Secretary determines that an item is comparable in quality to an item 
subject to U.S. national security export controls, and is available-in-
fact to a country, from a non-U.S. source, in sufficient quantities to 
render the U.S. export control of that item or the denial of a license 
ineffective. For a controlled country, such control or denial is 
``ineffective'' when maintaining such control or denying a specific 
license would not restrict the availability of items that would make a 
significant contribution to the military potential of the controlled 
country or combination of countries detrimental to the national 
security of the United States (see sections 5(a) and 3(2)(A) of the 
EAA.)
    (b) Types of foreign availability. There are two types of foreign 
availability:
    (1) Foreign availability to a controlled country; and
    (2) Foreign availability to a non-controlled country.

(Note to paragraph (b) of this section: See Sec. 768.7 of this part 
for delineation of the foreign availability assessment procedures, 
and Sec. 768.6 of this part for the criteria used in determining 
foreign availability)


Sec. 768.3  Foreign availability assessment.

    (a) Foreign availability assessment. A foreign availability 
assessment is an evidentiary analysis that BXA conducts to assess the 
foreign availability of a given item according to the assessment 
criteria, based on data submitted by a claimant, the data gathered by 
BXA, and the data and recommendations submitted by the Departments of 
Defense and State and other relevant departments and agencies, TAC 
committees, and industry. BXA uses the results of the analysis in 
formulating its recommendation to the Secretary on whether foreign 
availability exists for a given item. If the Secretary determines that 
foreign availability exists, the Secretary will decontrol the item for 
national security reasons or approve the license in question if there 
is no foreign policy reason to deny the license, unless the President 
exercises a National Security Override (see Sec. 768.7 of this part).
    (b) Types of assessments. There are two types of foreign 
availability assessments:
    (1) Denied license assessment; and
    (2) Decontrol assessment.
    (c) Expedited licensing procedures. See Sec. 768.8 of this part for 
the evaluation of eligibility of an item for the expedited licensing 
procedures.


Sec. 768.4  Initiation of an assessment.

    (a) Assessment request. To initiate an assessment, each claimant or 
TAC must submit a FAS or a TAC Certification to BXA. TACs are 
authorized to certify foreign availability only to controlled 
countries. Claimants can allege foreign availability for either 
controlled or non-controlled countries.
    (b) Denied license assessment. A claimant whose license application 
BXA has denied, or for which it has issued a letter of intent to deny 
on national security grounds, may request that BXA initiate a denied 
license assessment by submitting a Foreign Availability Submission 
(FAS) within 90 days after denial of the license. As part of its 
submission, the claimant must request that the specified license 
application be approved on the grounds of foreign availability. The 
evidence must relate to the particular export as described on the 
license application and to the alleged comparable item. If foreign 
availability is found, the Secretary will approve the license for the 
specific items, countries, and quantities listed on the application. 
The denied license assessment procedure, however, is not intended to 
result in the removal of the U.S. export control on an item by 
incrementally providing a country with amounts that, taken together, 
would constitute a sufficient quantity of an item. The Secretary will 
not approve on foreign availability grounds a denied license if the 
approval of such license would itself render the U.S. export control 
ineffective in achieving its purpose. In the case of a positive 
determination, the Secretary will determine whether a decontrol 
assessment is warranted. If so, then BXA will initiate a decontrol 
assessment.
    (c) Decontrol assessment. (1) Any claimant may at any time request 
that BXA initiate a decontrol assessment by a FAS to BXA alleging 
foreign availability to any country or countries.
    (2) A TAC may request that BXA initiate a decontrol assessment at 
any time by submitting a TAC Certification to BXA that there is foreign 
availability to a controlled country for items that fall within the 
area of the TAC's technical expertise.
    (3) The Secretary, on his/her own initiative, may initiate a 
decontrol assessment.
    (d) BXA mailing address. All foreign availability submissions and 
TAC certifications should be submitted to: Department of Commerce, 
Bureau of Export Administration, 14th Street and Pennsylvania Avenue, 
NW, Room 3877, Washington, DC 20230.

[[Page 12917]]



Sec. 768.5  Contents of foreign availability submissions and Technical 
Advisory Committee certifications.

    (a) All foreign availability submissions must contain, in addition 
to information on product or technology alleged to be available from 
foreign sources, at least:
    (1) The name of the claimant;
    (2) The claimant's mailing and business address;
    (3) The claimant's telephone number; and
    (4) A contact point and telephone number.
    (b) Foreign availability submissions and TAC certifications should 
contain as much evidence as is available to support the claim, 
including, but not limited to:
    (1) Product names and model designations of the items alleged to be 
comparable;
    (2) Extent to which the alleged comparable item is based on U.S. 
technology;
    (3) Names and locations of the non-U.S. sources and the basis for 
claiming that the item is a non-U.S. source item;
    (4) Key performance elements, attributes, and characteristics of 
the items on which a qualitative comparison may be made;
    (5) Non-U.S. source's production quantities and/or sales of the 
alleged comparable items and marketing efforts;
    (6) Estimated market demand and the economic impact of the control;
    (7) Product names, model designations, and value of U.S. controlled 
parts and components incorporated in the items alleged to be 
comparable; and
    (8) The basis for the claim that the item is available-in-fact to 
the country or countries for which foreign availability is alleged.
    (c) Supporting evidence of foreign availability may include, but is 
not limited to, the following:
    (1) Foreign manufacturers' catalogs, brochures, operation or 
maintenance manuals;
    (2) Articles from reputable trade and technical publications;
    (3) Photographs;
    (4) Depositions based on eyewitness accounts; and
    (5) Other credible evidence.

    Note to paragraph (c) of this section: See Supplement No. 1 to 
part 768 for additional examples of supporting evidence.

    (d) Upon receipt of a FAS or TAC certification, BXA will review it 
to determine whether there is sufficient evidence to support the belief 
that foreign availability may exist. If BXA determines the FAS or TAC 
certification is lacking in supporting evidence, BXA will seek 
additional evidence from appropriate sources, including the claimant or 
TAC. BXA will initiate the assessment when it determines that it has 
sufficient evidence that foreign availability may exist. Claimant and 
TAC certified assessments will be deemed to be initiated as of the date 
of such determination.
    (e) Claimants and TACs are advised to review the foreign 
availability assessment criteria described in Sec. 768.6 of this part 
and the examples of evidence described in Supplement No. 1 to part 768 
when assembling supporting evidence for inclusion in the FAS or TAC 
certification.


Sec. 768.6  Criteria.

    BXA will evaluate the evidence contained in a FAS or TAC 
certification and all other evidence gathered in the assessment process 
in accordance with certain criteria that must be met before BXA can 
recommend a positive determination to the Secretary. The criteria are 
defined in Sec. 768.1(d) of this part. In order to initiate an 
assessment, each FAS and TAC certification should address each of these 
criteria. The criteria are statutorily prescribed and are:
    (a) Available-in-fact;
    (b) Non-U.S. source;
    (c) Sufficient quantity; and
    (d) Comparable quality.


Sec. 768.7  Procedures.

    (a) Initiation of an assessment. (1) Once BXA accepts a FAS or TAC 
certification of foreign availability, BXA will notify the claimant or 
TAC that it is initiating the assessment.
    (2) BXA will publish a Federal Register notice of the initiation of 
any assessment.
    (3) BXA will notify the Departments of Defense and State, the 
intelligence community, and any other departments, agencies and their 
contractors that may have information concerning the item on which BXA 
has initiated an assessment. Each such department, agency, and 
contractor shall provide BXA all relevant information concerning the 
item. BXA will invite interested departments and agencies to 
participate in the assessment process (See paragraph (e) of this 
section).
    (b) Data gathering. BXA will seek and consider all available 
information that bears upon the presence or absence of foreign 
availability, including but not limited to that evidence described in 
Sec. 768.5 (b) and (c) of this part. As soon as BXA initiates the 
assessment, it will seek evidence relevant to the assessment, including 
an analysis of the military needs of a selected country or countries, 
technical analysis, and intelligence information from the Departments 
of Defense and State, and other U.S. agencies. Evidence is particularly 
sought from: industry sources worldwide; other U.S. organizations; 
foreign governments; commercial, academic and classified data bases; 
scientific and engineering research and development organizations; and 
international trade fairs.
    (c) Analysis. BXA will conduct its analysis by evaluating whether 
the reasonable and reliable evidence that is relevant to each of the 
foreign availability criteria provides a sufficient basis to recommend 
a determination that foreign availability does or does not exist.
    (d) Recommendation and determination. (1) Upon completion of each 
assessment, BXA, on the basis of its analysis, will recommend that the 
Secretary make a determination either that there is or that there is 
not foreign availability, whichever the evidence supports. The 
assessment upon which BXA bases its recommendation will accompany the 
recommendation to the Secretary.
    (2) BXA will recommend on the basis of its analysis that the 
Secretary determine that foreign availability exists to a country when 
the available evidence demonstrates that an item of comparable quality 
is available-in-fact to the country, from non-U.S. sources, in 
sufficient quantity so that continuation of the existing national 
security export control, or denial of the license application in 
question on national security grounds, would be ineffective in 
achieving its purpose. For a controlled country, such control or denial 
is ``ineffective'' when comparable items are available-in-fact from 
foreign sources in sufficient quantities so that maintaining such 
control or denying a license would not be effective in restricting the 
availability of items that would make a significant contribution to the 
military potential of any country or combination of countries 
detrimental to the national security of the United States.
    (3) The Secretary will make the determination of foreign 
availability on the basis of the BXA assessment and recommendation; the 
Secretary's determination will take into account the evidence provided 
to BXA, the recommendations of the Secretaries of Defense and State and 
any other interested agencies, and any other information that the 
Secretary considers relevant.

[[Page 12918]]

    (4) For all decontrol and denied license assessments (under section 
5(f)(3) of the EAA) initiated by a FAS, the Secretary will make a 
determination within 4 months of the initiation of the assessment and 
will notify the claimant. The Secretary will submit positive 
determinations for review to the appropriate departments and agencies.
    (5) The deadlines for determinations based on self-initiated and 
TAC-initiated assessments are different from the deadlines for 
claimant-initiated assessments (see paragraphs (f)(2) and (f)(3) of 
this section).
    (e) Interagency review. BXA will notify all appropriate U.S. 
agencies and Departments upon the initiation of an assessment and will 
invite their participation in the assessment process. BXA will provide 
all interested agencies and departments an opportunity to review source 
material, draft analyses and draft assessments immediately upon their 
receipt or production. For claimant-initiated assessments, BXA will 
provide a copy of all positive recommendations and assessments to 
interested agencies and departments for their review following the 
Secretary's determination of foreign availability. For self-initiated 
and TAC-initiated assessments, BXA will provide all interested agencies 
an opportunity to review and comment on the assessment.
    (f) Notification. (1) No later than 5 months after the initiation 
of an assessment based on a FAS (claimant assessments), the Secretary 
will inform the claimant in writing and will submit for publication in 
the Federal Register a notice that:
    (i) Foreign availability exists, and
    (A) The requirement of a license has been removed or the license 
application in question has been approved; or
    (B) The President has determined that for national security 
purposes the export controls must be maintained or the license 
application must be denied, notwithstanding foreign availability, and 
that appropriate steps to eliminate the foreign availability are being 
initiated; or
    (C) In the case of an item controlled multilaterally under the 
former COCOM regime, the U.S. Government will conduct any necessary 
consultations concerning the proposed decontrol or approval of the 
license with the former COCOM regime for a period of up to 4 months 
from the date of the publication of the determination in the Federal 
Register (the U.S. Government may remove the license requirement for 
exports to non-controlled countries pending completion of the former 
COCOM regime review process); or
    (ii) Foreign availability does not exist.
    (2) For all TAC certification assessments, the Secretary will make 
a foreign availability determination within 90 days following 
initiation of the assessment. BXA will prepare and submit a report to 
the TAC and to the Congress stating that:
    (i) The Secretary has found foreign availability and has removed 
the license requirement; or
    (ii) The Secretary has found foreign availability, but has 
recommended to the President that negotiations be undertaken to 
eliminate the foreign availability; or
    (iii) The Secretary has not found foreign availability.
    (3) There is no statutory deadline for assessments self-initiated 
by the Secretary or for the resulting determination. However, BXA will 
make every effort to complete such assessments and determinations 
promptly.
    (g) Foreign availability to controlled countries. When the 
Secretary determines that an item controlled for national security 
reasons is available to a controlled country and the President does not 
issue a National Security Override (NSO), BXA will submit the 
determination to the Department of State, along with a draft proposal 
for the multilateral decontrol of the item or for the former COCOM 
regime approval of the license. The Department of State will submit the 
proposal or the license for former COCOM regime review. The former 
COCOM regime will have up to 4 months for review of the proposal.
    (h) Foreign availability to non-controlled countries. If the 
Secretary determines that foreign availability to non-controlled 
countries exists, the Secretary will decontrol the item for export to 
all non-controlled countries where it is found to be available, or 
approve the license in question, unless the President exercises a 
National Security Override.
    (i) Negotiations to eliminate foreign availability. (1) The 
President may determine that an export control must be maintained 
notwithstanding the existence of foreign availability. Such a 
determination is called a National Security Override (NSO) and is based 
on the President's decision that the absence of the control would prove 
detrimental to the United States national security. Unless extended (as 
described in paragraph (i)(7) of this section), an NSO is effective for 
6 months. Where the President invokes an NSO, the U.S. Government will 
actively pursue negotiations with the government of any source country 
during the 6 month period to eliminate the availability.
    (2) There are two types of National Security Overrides:
    (i) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(f) of the EAA 
(claimant and self-initiated assessments); and
    (ii) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(h) of the EAA (TAC-
certification assessments).
    (3) For an NSO resulting from an assessment initiated under section 
5(f) of the EAA, the Secretary of any agency may recommend that the 
President exercise the authority under the EAA to retain the controls 
or deny the license notwithstanding the finding of foreign 
availability.
    (4) For an NSO resulting from an assessment initiated under section 
5(h) of the EAA, the Secretary of Commerce may recommend that the 
President exercise the authority under the EAA to retain the controls 
notwithstanding the finding of foreign availability.
    (5) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on International Relations of 
the House of Representatives will be notified of the initiation of the 
required negotiations. The notice will include an explanation of the 
national security interest that necessitates the retention of controls.
    (6) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, BXA will publish notices in the Federal 
Register consisting of:
    (i) The Secretary's determination of foreign availability;
    (ii) The President's decision to exercise the NSO;
    (iii) A concise statement of the basis for the President's 
decision; and
    (iv) An estimate of the economic impact of the decision.
    (7) The 6 month effective period for an NSO may be extended up to 
an additional 12 months if, prior to the end of the 6 months, the 
President certifies to Congress that the negotiations are progressing, 
and determines that the absence of the controls would continue to be 
detrimental to the United States national security.
    (8) After the conclusion of negotiations, BXA will retain the 
control only to the extent that foreign availability is eliminated. If 
foreign availability is not eliminated, BXA will decontrol the item by 
removing the requirement for a license for the export of the item to 
the destinations covered by the assessment. To the extent that the 
negotiations are successful and the

[[Page 12919]]
foreign availability is eliminated, BXA will remove the license 
requirement for the export of the item to any country that has agreed 
to eliminate foreign availability.
    (j) Changes in foreign availability. If BXA becomes aware of 
conditions, including new evidence, that affect a previous 
determination that foreign availability exists or does not exist, BXA 
may review the conditions. If BXA finds that the foreign availability 
previously determined no longer exists, or that foreign availability 
not earlier found now does exist, BXA will make a recommendation to the 
Secretary of Commerce for the appropriate changes in the control. The 
Secretary of Commerce will make a determination, and BXA will publish a 
Federal Register notice of the determination.


Sec. 768.8  Eligibility of expedited licensing procedures for non-
controlled countries.

    (a) BXA determines the eligibility of an item for expedited 
licensing procedures on the basis of an evaluation of the foreign 
availability of the item. Eligibility is specific to the items and the 
countries to which they are found to be available.
    (b) BXA will initiate an eligibility evaluation:
    (1) On its own initiative;
    (2) On receipt of a FAS; or
    (3) On receipt of a TAC certification.
    (c) Upon initiation of an eligibility evaluation following receipt 
of either a FAS or TAC certification, BXA will notify the claimant or 
TAC of the receipt and initiation of an evaluation and publish a 
Federal Register notice of the initiation of the evaluation.
    (d) The criteria for determining eligibility for expedited 
licensing procedures are:
    (1) The item must be available-in-fact to the specified
    non-controlled country from a foreign source;
    (2) The item must be of a quality similar to that of the U.S.-
controlled item; and
    (3) The item must be available-in-fact to the specified non-
controlled country without effective restrictions.
    (e) Within 30 days of initiation of the evaluation, the Secretary 
of Commerce will make a determination of foreign availability on the 
basis of the BXA evaluation and recommendation, taking into 
consideration the evidence the Secretaries of Defense, State, and other 
interested agencies provide to BXA and any other information that the 
Secretary considers relevant.
    (f) Within 30 days of the receipt of the FAS or TAC certification, 
BXA will publish the Secretary's determination in the Federal Register, 
that the item will or will not be eligible for expedited licensing 
procedures to the stated countries and, where appropriate, amend 
Supplement No. 2 to part 768.
    (g) Following completion of a self-initiated evaluation, BXA will 
be notified of the Secretary's determination and, where appropriate, 
Supplement No. 2 to part 768 will be amended.
    (h) Foreign availability submissions and TAC certifications to 
initiate an expedited licensing procedure evaluation must be clearly 
designated on their face as a request for expedited licensing procedure 
and must specify the items, quantities and countries alleged eligible. 
Submissions and certifications should be sent to: Department of 
Commerce, Bureau of Export Administration, 14th Street and Pennsylvania 
Avenue, NW., Room 3877, Washington, DC 20230.


Sec. 768.9  Appeals of negative foreign availability determinations.

    Appeals of negative determinations will be conducted according to 
the standards and procedures described in part 756 of the EAR. A 
Presidential decision (NSO) to deny a license or continue controls 
notwithstanding a determination of foreign availability is not subject 
to appeal.


Sec. 768.10  Removal of controls on less sophisticated items.

    Where the Secretary has removed national security controls on an 
item for foreign availability reasons, the Secretary will also remove 
controls on similar items that are controlled for national security 
reasons and whose functions, technological approach, performance 
thresholds, and other attributes that form the basis for national 
security export controls do not exceed the technical parameters of the 
item that BXA has decontrolled for foreign availability reasons.

Supplement No. 1 to Part 768--Evidence of Foreign Availability

    This Supplement provides a list of examples of evidence that the 
Bureau of Export Administration (BXA) has found to be useful in 
conducting assessments of foreign availability. A claimant submitting 
evidence supporting a claim of foreign availability should review this 
list for suggestions as evidence is collected. Acceptable evidence 
indicating possible foreign availability is not limited to these 
examples, nor is any one of these examples, usually, in and of itself, 
necessarily sufficient to meet a foreign availability criterion. A 
combination of several types of evidence for each criterion usually is 
required. A Foreign Availability Submission (FAS) should include as 
much evidence as possible on all four of the criteria listed below. BXA 
combines the submitted evidence with the evidence that it collects from 
other sources. BXA evaluates all evidence, taking into account factors 
that may include, but are not limited to: Information concerning the 
source of the evidence, corroborative or contradictory indications, and 
experience concerning the reliability or reasonableness of such 
evidence. BXA will assess all relevant evidence to determine whether 
each of the four criteria has been met. Where possible, all information 
should be in writing. If information is based on third party 
documentation, the submitter should provide such documentation to BXA. 
If information is based on oral statements a third party made, the 
submitter should provide a memorandum of the conversation to BXA if the 
submitter cannot obtain a written memorandum from the source. BXA will 
amend this informational list as it identifies new examples of 
evidence.
    (a) Examples of evidence of foreign availability:
    The following are intended as examples of evidence that BXA will 
consider in evaluating foreign availability. BXA will evaluate all 
evidence according to the provisions in Sec. 768.7(c) of this part in 
order for it to be used in support of a foreign availability 
determination. This list is illustrative only.
    (1) Available-in-fact:
    (i) Evidence of marketing of an item in a foreign country (e.g., an 
advertisement in the media of the foreign country that the item is for 
sale there);
    (ii) Copies of sales receipts demonstrating sales to foreign 
countries;
    (iii) The terms of a contract under which the item has been or is 
being sold to a foreign country;
    (iv) Information, preferably in writing, from an appropriate 
foreign government official that the government will not deny the sale 
of an item it produces to another country in accordance with its laws 
and regulations;
    (v) Information, preferably in writing, from a named company 
official that the company legally can and would sell an item it 
produces to a foreign country;
    (vi) Evidence of actual shipments of the item to foreign countries 
(e.g., shipping documents, photographs, news reports);
    (vii) An eyewitness report of such an item in operation in a 
foreign country, providing as much information as available, including 
where possible the

[[Page 12920]]
make and model of the item and its observed operating characteristics;
    (viii) Evidence of the presence of sales personnel or technical 
service personnel in a foreign country;
    (ix) Evidence of production within a foreign country;
    (x) Evidence of the item being exhibited at a trade fair in a 
foreign country, particularly for the purpose of inducing sales of the 
item to the foreign country;
    (xi) A copy of the export control laws or regulations of the source 
country, showing that the item is not controlled; or
    (xii) A catalog or brochure indicating the item is for sale in a 
specific country.
    (2) Foreign (non-U.S.) source:
    (i) Names of foreign manufacturers of the item including, if 
possible, addresses and telephone numbers;
    (ii) A report from a reputable source of information on commercial 
relationships that a foreign manufacturer is not linked financially or 
administratively with a U.S. company;
    (iii) A list of the components in the U.S. item and foreign item 
indicating model numbers and their sources;
    (iv) A schematic of the foreign item identifying its components and 
their sources;
    (v) Evidence that the item is a direct product of foreign 
technology (e.g., a patent law suit lost by a U.S. producer, a foreign 
patent);
    (vi) Evidence of indigenous technology, production facilities, and 
the capabilities at those facilities; or
    (vii) Evidence that the parts and components of the item are of 
foreign origin or are exempt from U.S. licensing requirements by the 
parts and components provision Sec. 732.4 of the EAR.
    (3) Sufficient quantity:
    (i) Evidence that foreign sources have the item in serial 
production;
    (ii) Evidence that the item or its product is used in civilian 
applications in foreign countries;
    (iii) Evidence that a foreign country is marketing in the specific 
country an item of its indigenous manufacture;
    (iv) Evidence of foreign inventories of the item;
    (v) Evidence of excess capacity in a foreign country's production 
facility;
    (vi) Evidence that foreign countries have not targeted the item or 
are not seeking to purchase it in the West;
    (vii) An estimate by a knowledgeable source of the foreign 
country's needs; or
    (viii) An authoritative analysis of the worldwide market (i.e., 
demand, production rate for the item for various manufacturers, plant 
capacities, installed tooling, monthly production rates, orders, sales 
and cumulative sales over 5-6 years).
    (4) Comparable quality:
    (i) A sample of the foreign item;
    (ii) Operation or maintenance manuals of the U.S. and foreign 
items;
    (iii) Records or a statement from a user of the foreign item;
    (iv) A comparative evaluation, preferably in writing, of the U.S. 
and foreign items by, for example, a western producer or purchaser of 
the item, a recognized expert, a reputable trade publication, or 
independent laboratory;
    (v) A comparative list identifying, by manufacturers and model 
numbers, the key performance components and the materials used in the 
item that qualitatively affect the performance of the U.S. and foreign 
items;
    (vi) Evidence of the interchangeability of U.S. and foreign items;
    (vii) Patent descriptions for the U.S. and foreign items;
    (viii) Evidence that the U.S. and foreign items meet a published 
industry, national, or international standard;
    (ix) A report or eyewitness account, by deposition or otherwise, of 
the foreign item's operation;
    (x) Evidence concerning the foreign manufacturers' corporate 
reputation;
    (xi) Comparison of the U.S. and foreign end item(s) made from a 
specific commodity, tool(s), device(s), or technical data; or
    (xii) Evidence of the reputation of the foreign item including, if 
possible, information on maintenance, repair, performance, and other 
pertinent factors.

Supplement No. 2 to Part 768--Items Eligible for Expedited Licensing 
Procedures--[Reserved]

PART 770--INTERPRETATIONS

Sec.
770.1  Introduction.
770.2  Commodity interpretations.
770.3  Interpretations related to exports of technology and software 
to destinations in Country Group D:1.
770.4  Interpretations related to chemical mixtures--de minimis 
exceptions examples.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 770.1  Introduction.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. This part provides commodity, technology, 
and software interpretations. These interpretations clarify the scope 
of controls where such scope is not readily apparent from the Commerce 
Control List (CCL) (see Supplement No. 1 to part 774 of the EAR) and 
other provisions of the Export Administration Regulations.


Sec. 770.2  Commodity interpretations.

    (a) Interpretation 1: Anti-friction bearing or bearing systems and 
specially designed parts. (1) Anti-friction bearings or bearing systems 
shipped as spares or replacements are classified under Export Control 
Classification Numbers (ECCNs) 2A001, 2A002, 2A003, 2A004, 2A005, and 
2A006 (ball, roller, or needle-roller bearings and parts). This applies 
to separate shipments of anti-friction bearings or bearing systems and 
anti-friction bearings or bearing systems shipped with machinery or 
equipment for which they are intended to be used as spares or 
replacement parts.
    (2) An anti-friction bearing or bearing system physically 
incorporated in a segment of a machine or in a complete machine prior 
to shipment loses its identity as a bearing. In this scenario, the 
machine or segment of machinery containing the bearing is the item 
subject to export control requirements.
    (3) An anti-friction bearing or bearing system not incorporated in 
a segment of a machine prior to shipment, but shipped as a component of 
a complete unassembled (knocked-down) machine, is considered a 
component of a machine. In this scenario, the complete machine is the 
item subject to export license requirements.
    (b) Interpretation 2: Classification of ``parts'' of machinery, 
equipment, or other items. (1) An assembled machine or unit of 
equipment is being exported. In instances where one or more assembled 
machines or units of equipment are being exported, the individual 
component parts that are physically incorporated into the machine or 
equipment do not require a license. The license or general exception 
under which the complete machine or unit of equipment is exported will 
also cover its component parts, provided that the parts are normal and 
usual components of the machine or equipment being exported, or that 
the physical incorporation is not used as a device to evade the 
requirement for a license.
    (2) Parts are exported as spares, replacements, for resale, or for 
stock. In instances where parts are exported as spares, replacements, 
for resale, or for stock, a license is required only if the appropriate 
entry for the part specifies that a license is required for the 
intended destination.
    (c) Interpretation 3: Wire or cable cut to length. (1) Wire or 
cable may be included as a component of a system or piece of equipment, 
whether or not the

[[Page 12921]]
wire or cable is cut to length and whether or not it is fitted with 
connectors at one or both ends, so long as it is in normal quantity 
necessary to make the original installation of the equipment and is 
necessary to its operation.
    (2) Wire or cable exported as replacement or spares, or for further 
manufacture is controlled under the applicable wire or cable ECCN only. 
This includes wire or cable, whether or not cut to length or fitted 
with connectors at one or both ends.
    (d) Interpretation 4: Telecommunications equipment and systems. 
Control equipment for paging systems (broadcast radio or selectively 
signalled receiving systems) is defined as circuit switching equipment 
in Category 5 of the CCL.
    (e) Interpretation 5: Numerical control systems. (1) Classification 
of ``Numerical Control'' Units. ``Numerical control'' units for machine 
tools, regardless of their configurations or architectures, are 
controlled by their functional characteristics as described in ECCN 
2B001.a. ``Numerical control'' units include computers with add-on 
``motion control boards''. A computer with add-on ``motion control 
boards'' for machine tools may be controlled under ECCN 2B001.a even 
when the computer alone without ``motion control boards'' is not 
subject to licensing requirements under Category 4 and the ``motion 
control boards'' are not controlled under ECCN 2B001.b.
    (2) Export documentation requirement. (i) When preparing a license 
application for a numerical control system, the machine tool and the 
control unit are classified separately. If either the machine tool or 
the control unit requires a license, then the entire unit requires a 
license. If either a machine tool or a control unit is exported 
separately from the system, the exported component is classified on the 
license application without regard to the other parts of a possible 
system.
    (ii) When preparing the Shipper's Export Declaration (SED), a 
system being shipped complete (i.e., machine and control unit), should 
be reported under the Schedule B number for each machine. When either a 
control unit or a machine is shipped separately, it should be reported 
under the Schedule B number appropriate for the individual item being 
exported.
    (f) Interpretation 6: Parts, accessories, and equipment exported as 
scrap. Parts, accessories, or equipment that are being shipped as scrap 
should be described on the SED in sufficient detail to be identified 
under the proper ECCN. When commodities declared as parts, accessories, 
or equipment are shipped in bulk, or are otherwise not packaged, 
packed, or sorted in accordance with normal trade practices, the 
Customs Officer may require evidence that the shipment is not scrap. 
Such evidence may include, but is not limited to, bills of sale, orders 
and correspondence indicating whether the commodities are scrap or are 
being exported for use as parts, accessories, or equipment.
    (g) Interpretation 7: Scrap arms, ammunition, and implements of 
war. Arms, ammunition, and implements of war, as defined in the U.S. 
Munitions List, and are under the jurisdiction of the U.S. Department 
of State (22 CFR parts 120 through 130), except for the following, 
which are under the jurisdiction of the Department of Commerce:
    (1) Cartridge and shell cases that have been rendered useless 
beyond the possibility of restoration to their original identity by 
means of excessive heating, flame treatment, mangling, crushing, 
cutting, or by any other method are ``scrap''.
    (2) Cartridge and shell cases that have been sold by the armed 
services as ``scrap'', whether or not they have been heated, flame-
treated, mangled, crushed, cut, or reduced to scrap by any other 
method.
    (3) Other commodities that may have been on the U.S. Munitions List 
are ``scrap'', and therefore under the jurisdiction of the Department 
of Commerce, if they have been rendered useless beyond the possibility 
of restoration to their original identify only by means of mangling, 
crushing, or cutting. When in doubt as to whether a commodity covered 
by the Munitions List has been rendered useless, exporters should 
consult the Office of Defense Trade Controls, U.S. Department of State, 
Washington, DC 20520, or the Exporter Counseling Division, Office of 
Exporter Services, Room 1099A, U.S. Department of Commerce, Washington, 
DC 20230, before reporting a shipment as metal scrap.
    (h) Interpretation 8: Military automotive vehicles and parts for 
such vehicles. (1) Military automotive vehicles. (i) For purposes of 
U.S. export controls, military automotive vehicles ``possessing or 
built to current military specifications differing materially from 
normal commercial specifications'' may include, but are not limited to, 
the following characteristics:
    (A) Special fittings for mounting ordnance or military equipment;
    (B) Bullet-proof glass;
    (C) Armor plate;
    (D) Fungus preventive treatment;
    (E) Twenty-four volt electrical systems;
    (F) Shielded electrical system (electronic emission suppression); 
or
    (G) Puncture-proof or run-flat tires.
    (ii) Automotive vehicles fall into two categories.
    (A) Military automotive vehicles on the Munitions List, new and 
used. Automotive vehicles in this category are primarily combat 
(fighting) vehicles, with or without armor and/or armament, ``designed 
for specific fighting function.'' These automotive vehicles are 
licensed for export by the U.S. Department of State (22 CFR parts 120 
through 130).
    (B) Military automotive vehicles not on the U.S. Munitions List, 
new and used. Automotive vehicles in this category are primarily 
transport vehicles designed for non-combat military purposes 
(transporting cargo, personnel and/or equipment, and/or for to wing 
other vehicles and equipment over land and roads in close support of 
fighting vehicles and troops). These automotive vehicles are licensed 
for export by the U.S. Department of Commerce.
    (iii) Parts for military automotive vehicles. Functional parts are 
defined as those parts making up the power train of the vehicles, 
including the electrical system, the cooling system, the fuel system, 
and the control system (brake and steering mechanism), the front and 
rear axle assemblies including the wheels, the chassis frame, springs 
and shock absorbers. Parts specifically designed for military 
automotive vehicles on the Munitions List are licensed for export by 
the U.S. Department of State (22 CFR parts 120 through 130).
    (iv) General instructions. Manufacturers of non-Munitions List 
automotive vehicles and/or parts will know whether their products meet 
the conditions described in this paragraph (h). Merchant exporters and 
other parties who are not sure whether their products (automotive 
vehicles and/or parts) meet these conditions should check with their 
suppliers for the required information before making a shipment under 
general exception or submitting an application to BXA for a license.
    (2) [Reserved]
    (i) Interpretation 9: Aircraft, parts, accessories and components. 
Aircraft, parts, accessories, and components defined in Categories VIII 
and IX of the Munitions List are under the export licensing authority 
of the U.S. Department of State (22 CFR parts 120 through 130). All 
other aircraft, and parts, accessories and components therefor, are 
under the export licensing

[[Page 12922]]
authority of the U.S. Department of Commerce. The following aircraft, 
parts, accessories and components are under the licensing authority of 
the U.S. Department of Commerce:
    (1) Any aircraft (except an aircraft that has been demilitarized, 
but including aircraft specified in paragraph (i)(2) of this section) 
that conforms to a Federal Aviation Agency type certificate in the 
normal, utility, acrobatic, transport, or restricted category, provided 
such aircraft has not been equipped with or modified to include 
military equipment, such as gun mounts, turrets, rocket launchers, or 
similar equipment designed for military combat or military training 
purposes.
    (2) Only the following military aircraft, demilitarized (aircraft 
not specifically equipped, reequipped, or modified for military 
operations):
    (i) Cargo, bearing designations ``C-45 through C-118 inclusive,'' 
and ``C-121'';
    (ii) Trainers, bearing a ``T'' designation and using piston 
engines;
    (iii) Utility, bearing a ``U'' designation and using piston 
engines;
    (iv) Liaison, bearing an ``L'' designation; and
    (v) Observation, bearing an ``O'' designation and using piston 
engines.
    (3) All reciprocating engines.
    (4) Other aircraft engines not specifically designed or modified 
for military aircraft.
    (5) Parts, accessories, and components (including propellers), 
designed exclusively for aircraft and engines described in paragraphs 
(i)(1), (i)(2), (i)(3), and (i)(4) of this section.
    (6) General purpose parts, accessories, and components usable 
interchangeably on either military or civil aircraft.
    (j) Interpretation 10: Civil aircraft inertial navigation 
equipment. (1) The Department of Commerce has licensing jurisdiction 
over exports and reexports to all destinations of inertial navigation 
systems, inertial navigation equipment, and specially designed 
components therefor for ``civil aircraft''.
    (2) The Department of State, retains jurisdiction over all software 
and technology for inertial navigation systems and navigation 
equipment, and specially designed components therefor, for shipborne 
use, underwater use, ground vehicle use, spaceborne use or use other 
than ``civil aircraft''.
    (k) Interpretation 11: Precursor chemicals. The following chemicals 
are controlled by ECCN 1C350. The appropriate Chemical Abstract Service 
Registry (C.A.S.) number and synonyms, (i.e., alternative names) are 
included to help you determine whether your chemicals are controlled by 
this entry. These chemicals require a license to all countries except 
Argentina, Australia, Austria, Belgium, Canada, Denmark, Czech 
Republic, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, 
Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

(1) (C.A.S. #1341-49-7) Ammonium hydrogen bifluoride
    Acid ammonium fluoride
    Ammonium bifluoride
    Ammonium difluoride
    Ammonium hydrofluoride
    Ammonium hydrogen bifluoride
    Ammonium hydrogen difluoride
    Ammonium monohydrogen difluoride
(2) (C.A.S. #7784-34-1) Arsenic trichloride
    Arsenic (III) chloride
    Arsenous chloride
    Fuming liquid arsenic
    Trichloroarsine
(3) (C.A.S. #76-93-7) Benzilic acid
    .alpha.,.alpha.-Diphenyl-.alpha.-hydroxyacetic acid
    Diphenylglycolic acid
    .alpha.,.alpha.-Diphenylglycolic acid
    Diphenylhydroxyacetic acid
    .alpha.-Hydroxy-2,2-diphenylacetic acid
    2-Hydroxy-2,2-diphenylacetic acid
    .alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid
    Hydroxydiphenylacetic acid
(4) (C.A.S. #107-07-3) 2-Chloroethanol
    2-Chloro-1-ethanol
    Chloroethanol
    2-Chloroethyl alcohol
    Ethene chlorohydrin
    Ethylchlorohydrin
    Ethylene chlorhydrin
    Ethylene chlorohydrin
    Glycol chlorohydrin
    Glycol monochlorohydrin
    2-Hydroxyethyl chloride
(5) (C.A.S. #78-38-6) Diethyl ethylphosphonate Ethylphosphonic acid 
diethyl ester
(6) (C.A.S. #15715-41-0) Diethyl methylphosphonite
    Diethoxymethylphosphine
    Diethyl methanephosphonite
    0,0-Diethyl methylphosphonite
    Methyldiethoxyphosphine
    Methylphosphonous acid diethyl ester
(7) (C.A.S. #2404-03-7) Diethyl-N, N-dimethylphosphoro-amidate
    N,N-Dimethyl-O,O'-diethyl phosphoramidate
    Diethyl dimethylphosphoramidate
    Dimethylphosphoramidic acid diethyl ester
(8) (C.A.S. #762-04-9) Diethyl phosphite
    Diethoxyphosphine oxide
    Diethyl acid phosphite
    Diethyl hydrogen phosphite
    Diethyo phosphonate
    Hydrogen diethyl phosphite
(9) (C.A.S. #100-37-8) N, N-Diethylethanolamine
    N,N-Diethyl-2-aminoethanol
    Diethyl (2-hydroxyethyl) amine
    N,N-Diethyl-N-(.beta.-hydroxyethyl) amine
    N,N-Diethyl-2-hydroxyethylamine
    Diethylaminoethanol
    2-(Diethylamino) ethanol
    2-(Diethylamino)ethyl alcohol
    N,N-Diethylmonoethanolamine
    (2-Hydroxyethyl) diethylamine
    2-Hydroxytriethylamine
(10) (C.A.S. #5842-07-9) N,N-Diisopropyl-.beta.-aminoethane thiol
    2-(Diisopropylamino) ethanethiol
    Diisopropylaminoethanethiol
    .beta.-Diisopropylaminoethanethiol
    2-(bis(1-Methylethyl)amino) ethanethiol
(11) (C.A.S. #4261-68-1) N, N-Diisopropyl-.2-aminoethyl chloride 
hydrochloride
(12) (C.A.S. #96-80-0) N,N-Diisopropyl-.beta.-aminoethanol
    N,N-Diisopropyl-2-aminoethanol
    2-(Diisopropylamino) ethanol
    (N,N-Diisopropylamino) ethanol
    2-(Diisopropylamino) ethyl alcohol
    N,N-Diisopropylethanolamine
(13) (C.A.S. #96-79-7) N,N-Diisopropyl-.beta.-aminoethyl chloride
    2-Chloro-N,N-diisopropylethanamine
    1-Chloro-N,N-diisopropylaminoethane
    2-Chloro-N,N-diisopropylethylamine
    N-(2-chloroethyl)-N-(1-methylethyl)-2-propanamine
    N-(2-Chloroethyl) diisopropylamine
    N,N-Diisopropyl-2-chloroethylamine
    1-(Diisopropylamino)-2-cholorethane
    2-(Diisopropylamino)ethyl chloride
    Diisopropylaminoethyl chloride
    .beta.-Diisopropylaminoethyl chloride
(14) (C.A.S. #108-18-9) Diisopropylamine
    N,N-Diisopropylamine
    N-(1-Methylethyl)-2-propanamine
(15) (C.A.S. #6163-75-3) Dimethyl ethylphosphonate
    Dimethyl ethanephosphonate
    Ethylphosphonic acid dimethyl ester
(16) (C.A.S. #756-79-6) Dimethyl methylphosphonate
    Dimethoxymethyl phosphine oxide
    Dimethyl methanephosphonate
    Methanephosphonic acid dimethyl ester
    Methylphosphonic acid dimethyl ester
(17) (C.A.S. #868-85-9) Dimethyl phosphite
    Dimethoxyphosphine oxide
    Dimethyl acid phosphite
    Dimethyl hydrogen phosphite
    
[[Page 12923]]

    Dimethyl phosphonate
    Hydrogen dimethyl phosphite
    Methyl phosphate
(18) (C.A.S. #124-40-3) Dimethylamine
    N-Methyl methanamine
(19) (C.A.S. #506-59-2) Dimethylamine hydrochloride
    Dimethylammonium chloride
    N-Methyl methanamine hydrochloride
(20) (C.A.S. #57856-11-8) O-Ethyl-2-diisoprophylaminoethyl 
methylphosphonite (QL)
    Methylphosphonous acid 2-(bis(1-methylethyl)amino)ethyl ethyl ester
(21) (C.A.S. #1498-40-4) Ethylphosphonous dichloride
    Dichloroethylphosphine
    Ethyl phosphonous dichloride
    Ethyldichlorophosphine
(22) (C.A.S. #430-78-4) Ethylphosphonus difluoride
    Ethyldifluorophosphine
(23) (C.A.S. #1066-50-8) Ethylphosphonyl dichloride
    Dichloroethylphosphine oxide
    Ethanephosphonyl chloride
    Ethylphosphinic dichloride
    Ethylphosphonic acid dichloride
    Ethylphosphonic dichloride
(24) (C.A.S. #753-98-0) Ethylphosphonyl difluoride
    Ethyl difluorophosphite
    Ethyldifluorophosphine oxide
    Ethylphosphonic difluoride
(25) (C.A.S. #7664-39-3) Hydrogen fluoride
    Anhydrous hydrofluoric acid
    Fluorhydric acid
    Fluorine monohydride
    Hydrofluoric acid gas
(26) (C.A.S. #3554-74-3) 3-Hydroxyl-1-methylpiperidine
    3-Hydroxy-N-methylpiperidine
    1-Methyl-3-hydroxypiperidine
    N-Methyl-3-hydroxypiperidine
    1-Methyl-3-piperidinol
    N-Methyl-3-piperidonol
(27) (C.A.S. #76-89-1) Methyl benzilate
    Benzilic acid methyl ester
    .alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid methyl ester
    Methyl .alpha.-phenylmandelate
    Methyl diphenylglycolate
(28) (C.A.S. #676-83-5) Methylphosphonous dichloride
    Dichloromethylphosphine
    Methyldichlorophosphine
    Methylphosphorus dichloride
(29) (C.A.S. #753-59-3) Methylphosphonous diflouride
    Difluoromethylphosphine
    Methyldifluorophosphine
(30) (C.A.S. #676-97-1) Methylphosphonyl dichloride
    Dichloromethylphosphine oxide
    Methanephosphonodichloridic acid
    Methanephosphonyl chloride
    Methylphosphonic acid dichloride
    Methylphosphonic dichloride
    Methylphosphonodichloridic acid
    Methylphosphonyl chloride
(31) (C.A.S. #676-99-3) Methylphosphonyl difluoride
    Difluoromethylphosphine oxide
    Methyl difluorophosphite
    Methylphosphonic difluoride
(32) (C.A.S. #10025-87-3) Phosphorus oxychloride
    Phosphonyl trichloride
    Phosphoric chloride
    Phosphoric trichloride
    Phosphoroxychloride
    Phosphoroxytrichloride
    Phosphorus chloride oxide
    Phosphorus monoxide trichloride
    Phosphorus oxide trichloride
    Phosphorus oxytrichloride
    Phosphorus trichloride oxide
    Phosphoryl trichloride
    Trichlorophosphine oxide
    Trichlorophosphorus oxide
(33) (C.A.S. #10026-13-8) Phosphorus pentachloride
    Pentachlorophosphorane
    Pentachlorophosphorus
    Phosphoric chloride
    Phosphorus(V) chloride
    Phosphorus perchloride
(34) (C.A.S. #1314-80-3) Phosphorus pentasulfide
    Diphosphorus pentasulfide
    Phosphoric sulfide
    Phosphorus persulfide
    Phosphorus sulfide
(35) (C.A.S. #7719-12-2) Phosphorus trichloride
    Phosphorus chloride
    Trichlorophosphine
(36) C.A.S. #75-97-8) Pinacolone
    tert-Butyl methyl ketone
    2,2-Dimethyl-3-butanone
    3,3-Dimethyl-2-butanone
    2,2-Dimethylbutanone
    3,3-Dimethylbutanone
    1,1-Dimethylethyl methyl ketone
    Methyl tert-butyl ketone
    Pinacolin
    Pinacoline
    1,1,1-Trimethylacetone
(37) (C.A.S. #464-07-3) Pinacolyl alcohol
    tert-Butyl methyl carbinol
    2,2-Dimethyl-3-butanol
    3,3-Dimethyl-2-butanol
    1-Methyl-2,2-dimethylpropanol
(38) (C.A.S. #151-50-8) Potassium cyanide
(39) (C.A.S. #7789-23-3) Potassium fluoride
    Potassium monofluoride
(40) (C.A.S. #7789-29-9) Potassium hydrogen fluoride
    Hydrogen potassium difluoride
    Hydrogen potassium fluoride
    Potassium acid fluoride
    Potassium bifluoride
    Potassium hydrogen difluoride
    Potassium monohydrogen difluoride
(41) (C.A.S. #1619-34-7) 3-Quinuclidinol
    1-Azabicyclo(2.2.2)octan-3-ol
    3-Hydroxyquinuclidine
(42) (C.A.S. #3731-38-2) 3-Quinuclidinone
    1-Azabicyclo(2.2.2)octan-3-one
    3-Oxyquinuclidine
    Quinuclidone
(43) (C.A.S.) #1333-83-1) Sodium bifluoride
    Sodium hydrogen difluoride
    Sodium hydrogen fluoride
(44) (C.A.S. #143-33-9) Sodium cyanide
(45) (C.A.S. #7681-49-4) Sodium fluoride
    Sodium monofluoride
(46) (C.A.S. #1313-82-2) Sodium sulfide
    Disodium monosulfide
    Disodium sulfide
    Sodium monosulfide
    Sodium sulphide
(47) (C.A.S. #10025-67-9) Sulfur Monochloride
(48) (C.A.S. #10545-99-0) Sulfur dicholoride
(49) (C.A.S. #111-48-8) Thiodiglycol
    Bis(2-hydroxyethyl) sulfide
    Bis(2-hydroxyethyl) thioether
    Di(2-hydroxyethyl) sulfide
    Diethanol sulfide
    2,2'-Dithiobis-(ethanol)
    3-Thiapentane-1,5-diol
    2,2'-Thiobisethanol
    2,2'-Thiodiethanol
    Thiodiethylene glycol
    2,2'-Thiodiglycol
(50) C.A.S. #7719-09-7) Thionyl chloride
    Sulfinyl chloride
    Sulfinyl dichloride
    Sulfur chloride oxide
    Sulfur oxychloride
    Sulfurous dichloride
    Sulfurous oxychloride
    Thionyl dichloride
(51) (C.A.S. #102-71-6) Triethanolamine
    Alkanolamine 244
    Nitrilotriethanol
    2,2',2''-Nitrilotriethanol
    2,2',2''-Nitrilotris(ethanol)
    TEA
    TEA (amino alcohol)
    Tri (2-hydroxyethyl) amine
    Triethanolamin
    Tris (.beta.-hydroxyethyl) amine
    Tris (2-hydroxyethyl) amine
    Trolamine
(52) (C.A.S. #637-39-8) Triethanolamine hydrochloride
(53) (C.A.S. #122-52-1) Triethyl phosphite
    Phosphorous acid triethyl ester
    Triethoxyphosphine
    Tris(ethoxy)phosphine
    
[[Page 12924]]

(54) (C.A.S. #121-45-9) Trimethyl phosphite
    Phosphorus acid trimethyl ester
    Trimethoxyphosphine


Sec. 770.3  Interpretations related to exports of technology and 
software to destinations in Country Group D:1.

    (a) Introduction. This section is intended to provide you 
additional guidance on how to determine whether your technology or 
software would be eligible for a License Exception, may be exported 
under NLR, or require a license, for export to Country Group D:1.
    (b) Scope of licenses. The export of technology and software under 
a license is authorized only to the extent specifically indicated on 
the face of the license. The only technology and software related to 
equipment exports that may be exported without a license is technology 
described in Secs. 734.7 through 734.11 of the EAR; operating 
technology and software described in Sec. 740.8(a) of the EAR; sales 
technology described in Sec. 740.8(b) of the EAR; and software updates 
described in Sec. 740.8(c) of the EAR.
    (c) Commingled technology and software. (1) U.S.-origin technology 
does not lose its U.S.-origin when it is redrawn, used, consulted, or 
otherwise commingled abroad in any respect with other technology of any 
other origin. Therefore, any subsequent or similar technical data 
prepared or engineered abroad for the design, construction, operation, 
or maintenance of any plant or equipment, or part thereof, which is 
based on or utilizes any U.S.-origin technology, is subject to the EAR 
is the same manner as the original U.S.-origin technology, including 
license requirements, unless the commingled technology is not subject 
to the EAR by reason of the de minimis exclusions described at 
Sec. 732.4 of the EAR.
    (2) U.S.-origin software that is incorporated into or commingled 
with foreign-origin software does not lose its U.S.-origin. Such 
commingled software is subject to the EAR is the same manner as the 
original U.S.-origin software, including license requirements, unless 
the commingled software is not subject to the EAR by reason of the de 
minimis exclusions described at Sec. 732.4 of the EAR.
    (d) Certain License Exception. The following questions and answers 
are intended to further clarify the scope of technology and software 
eligible for a License Exception.
    (1)(i) Question 1. (A) Our engineers, in installing or repairing 
equipment, use techniques (experience as well as proprietary knowledge 
of the internal componentry or specifications of the equipment) that 
exceed what is provided in the standard manuals or instructions 
(including training) given to the customer. In some cases, it is also a 
condition of the license that such information provided to the customer 
be constrained to the minimum necessary for normal installation, 
maintenance and operation situations.
    (B) Can we send an engineer (with knowledge and experience) to the 
customer site to perform the installation or repair, under the 
provisions of License Exception for operating technology and software 
(OTS) described in Sec. 740.8(a) of the EAR, if it is understood that 
he is restricted by our normal business practices to performing the 
work without imparting the knowledge or technology to the customer 
personnel?
    (ii) Answer 1. Export of technology includes release of U.S.-origin 
data in a foreign country, and ``release'' includes ``application to 
situations abroad of personal knowledge or technical experience 
acquired in the United States.'' As the release of technology in the 
circumstances described here would exceed that permitted under the 
License Exception for operating technology and software described in 
Sec. 740.8(a) of the EAR, a license would be required even though the 
technician could apply the data without disclosing it to the customer.
    (2)(i) Question 2. We plan, according to our normal business 
practices, to train customer engineers to maintain equipment that we 
have exported under a license, License Exception, or NLR. The training 
is contractual in nature, provided for a fee, and is scheduled to take 
place in part in the customer's facility and in part in the U.S. Can we 
now proceed with this training at both locations under a License 
Exception?
    (ii) Answer 2. (A) Provided that this is your normal training, and 
involves technology contained in your manuals and standard instructions 
for the exported equipment, and meets the other requirements of License 
Exception for operating technology and software (OTS) described in 
Sec. 740.8(a), the training may be provided within the limits of that 
License Exception. The location of the training is not significant, as 
the export occurs at the time and place of the actual transfer or 
imparting of the technology to the customer's engineers.
    (B) Any training beyond that covered under the provisions of 
License Exception for operating technology and software (OTS) described 
in Sec. 740.8(a), but specifically represented in your license 
application as required for this customer installation, and in fact 
authorized on the face of the license or a separate technology license, 
may not be undertaken while the license is suspended or revoked.


Sec. 770.4  Interpretations related to chemical mixtures--de minimis 
exceptions examples.

    (a)(1) Introduction: The following are examples for applying the de 
minimis exceptions for chemical mixtures containing precursor and 
intermediate chemicals controlled under ECCN 1C350.
    (2) In ECCN 1C350, Note 2, paragraphs (c) and (d) within the 
Mixtures Exemptions state that a validated license is required when at 
least one of the listed chemicals constitutes more than 10% or 25%, 
respectively, of the weight of the mixture on a solvent free basis.
    (b)(1) Example One. A mixture contains the following components:
    (i) 90% polymer polyol (a liquid raw material used to make 
polyurethane polymers); and
    (ii) 10% Australia Group (AG)-controlled chemical eligible for 25% 
de minimis exemption.

    Note to paragraph (b) of this section: The polymer does not 
dissolve the AG-controlled chemical.

    (2) In this example, the polymer polyol does not dissolve the AG-
controlled chemical (the only other component of the mixture). 
Therefore, the polyol is NOT considered a solvent, and the 
concentration of the polymer polyol is included in the concentration 
calculation. As a result, the AG-controlled chemical's concentration is 
10% when calculated on a solvent-free basis (.10/1.00). Accordingly, 
this concentration is below the threshold concentration of 25% 
applicable to specific AG-controlled chemicals under the chemical 
mixtures rule and can be exported under NLR to all destinations except 
Iran, Sudan, Syria, and Country Group E:2 in Supplement No. 1 to part 
740 of the EAR.
    (3) To determine the classification of this mixture, it is 
necessary to determine whether the polymer is capable of functioning as 
a solvent for the other components of the mixture. If the polymer 
polyol is capable of functioning as a solvent for the controlled AG 
chemical, then the polymer component is omitted from the concentration 
calculation. If the polymer polyol is not capable of functioning as a 
solvent for the AG chemical, then the polymer component is included in 
the concentration calculation.

[[Page 12925]]

    (c)(1) Example Two: An automotive coolant (antifreeze) is a mixture 
of the following components:
    (i) 75% ethylene glycol;
    (ii) 10% additive package; and
    (iii) 15% water.

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

    (2) To determine if this mixture requires a license it is necessary 
to calculate the concentration of the AG-controlled chemical on a 
solvent-free basis. Since the water dissolves all of the other 
components of the mixture, water is considered a ``solvent'' and the 
quantity of water present is not included in the calculation of the AG-
chemical concentration. Consequently, the concentration of the AG 
chemical is approximately 11% (.09/.85), and the mixture is classified 
under ECCN 1C350. Accordingly, since this concentration is above the 
threshold concentration of 10% applicable to this category of AG-
controlled chemical under the chemical mixtures rule, a license is 
required to all destinations except AG member countries.
    (d)(1) Example Three. A pesticide formulation consists of an AG-
controlled chemical that is eligible for the 25% de minimis exemption, 
and an active ingredient that is not AG-controlled. The formulation is 
diluted with water to allow safe, effective, and economic application. 
The resulting mixture is 15% AG chemical, 40% active ingredient and 45% 
water. Although the water is added as a diluent, it dissolves the other 
components of the mixture.
    (2) Since the water dissolves all components in the mixture, it is 
considered a solvent even though it was added as a diluent. The percent 
concentration of the AG-controlled chemical calculated on a solvent 
free basis is .15/.55 = 27%, and the mixture is therefore classified 
under ECCN 1C350. Accordingly, since this concentration is above the 
threshold concentration of 25% applicable to this category of AG-
controlled chemicals under the chemical mixtures rule, a license is 
required to all destinations except AG member countries.
    (e)(1) Example Four. A mixture contains the following components:
    (i) 10% water;
    (ii) 22% Chemical A;
    (iii) 21% Chemical B;
    (iv) 20% Chemical C;
    (v) 19% Chemical D; and
    (vi) 8% Chemical E.

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

    (2) In this example, water is considered a solvent since it 
dissolves all components in the mixture. Therefore, the quantity of 
water present in the mixture is not included in calculating the 
concentrations of the controlled chemicals on a solvent-free basis. The 
concentrations of the controlled chemicals are as follows: Chemical A 
24%; Chemical B 23%; Chemical C 22%; Chemical D 21%; Chemical E 9%. It 
is important to note that in this example, even though the cumulative 
amount of the mixture (90%) consists of controlled chemicals, each one 
of the controlled chemicals is below the de minimis level for its 
category. Consequently, this mixture can be exported under NLR to all 
destinations except Iran, Sudan, Syria, and Country Group E:2 in 
Supplement No. 1 to part 740 of the EAR.

PART 772--DEFINITIONS OF TERMS

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August 
15, 1995 (60 FR 42767, August 17, 1995).

    The following are definitions of terms as used in the Export 
Administration Regulations (EAR). In this part, references to the EAR 
are references to 15 CFR chapter VII, subchapter C. Those terms in 
quotation marks refer to terms used on the Commerce Control List (CCL) 
(Supplement No. 1 to part 774 of the EAR). Parenthetical references 
following the terms in quotation marks (i.e., (Cat 5)) refer to the CCL 
category in which that term is found.
    ``ATM.'' (Cat 5)--See ``Asynchronous Transfer Mode.''
    ``Accuracy.'' (Cat 2 and 6)--``Accuracy'' is usually measured in 
terms of inaccuracy. It is defined as the maximum deviation, positive 
or negative, of an indicated value from an accepted standard or true 
value.
    ``Active flight control systems.'' (Cat 7)--Function to prevent 
undesirable ``aircraft'' and ``missile'' motions or structural loads by 
autonomously processing outputs from multiple sensors and then 
providing necessary preventive commands to effect automatic control.
    ``Active pixel.'' (Cat 6 and 8)--A maximum (single) element of the 
solid state array that has a photoelectric transfer function when 
exposed to light (electromagnetic) radiation.
    ``Adaptive control.'' (Cat 2)--A control system that adjusts the 
response from conditions detected during the operation (Ref. ISO 2806-
1980).
    Advisory Committee on Export Policy (ACEP). The ACEP voting members 
include the Assistant Secretary of Commerce for Export Administration, 
and Assistant Secretary-level representatives from the Departments of 
State, Defense, Energy, and the Arms Control and Disarmament Agency. 
The appropriate representatives of the Joint Chiefs of Staff and the 
Director of the Nonproliferation Center of the Central Intelligence 
Agency are non-voting members. The Assistant Secretary of Commerce for 
Export Administration is the Chair. Appropriate acting Assistant 
Secretary, Deputy Assistant Secretary or equivalent of any agency or 
department may serve in lieu of the Assistant Secretary of the 
concerned agency or department. Such representatives, regardless of 
rank, will speak and vote on behalf of their agencies or departments. 
The ACEP may invite Assistant Secretary-level representatives of other 
Government agencies or departments (other than those identified above) 
to participate in the activities of the ACEP when matters of interest 
to such agencies or departments are under consideration. Decisions are 
made by majority vote.
    ``Aircraft.'' (Cat 7 and 9)--A fixed wing, swivelwing, rotary wing 
(helicopter), tilt rotor or tilt-wing airborne vehicle. (See also 
``civil aircraft''.)
    Airline. Any person engaged primarily in the transport of persons 
or property by aircraft for compensation or hire, pursuant to 
authorization by the U.S. Government or a foreign government.
    ``Angular position deviation.'' (Cat 2)--The maximum difference 
between angular position and the actual, very accurately measured 
angular position after the workpiece mount of the table has been turned 
out of its initial position. (Reference: VDI/VDE 2617, Draft: ``Rotary 
tables on coordinate measuring machines'').
    Applicant. That person who, as the principal party in interest in 
the transaction, has the power and responsibility for determining and 
controlling the sending of the item out of the country and is thus, in 
reality, the exporter. (For additional information see Sec. 748.4 of 
the EAR.) (See also ``U.S. exporter''.)

[[Page 12926]]

    ``Assembly.'' (Cat 3 and 4)--A number of electronic components 
(i.e.,''circuit elements'', ``discrete components'', integrated 
circuits, etc.) connected together to perform (a) specific function(s), 
replaceable as an entity and normally capable of being disassembled.

    Notes: 1. ``Circuit element'': a single active or passive 
functional part of an electronic circuit, such as one diode,one 
transistor, one resistor, one capacitor, etc.
    2. ``Discrete component'': a separately packaged ``circuit 
element'' with its own external connections.

    ``Asynchronous transfer mode.'' (ATM) (Cat 5)--A transfer mode in 
which the information is organized into cells; it is asynchronous in 
the sense that the recurrence of cells depends on the required or 
instantaneous bit rate. (CCITT Recommendation L.113)
    Australia Group. The members belonging to this group have agreed to 
adopt controls on dual-use chemicals, i.e., weapons precursors, 
equipment, and biological microorganisms and related equipment in order 
to prevent the proliferation of chemical and biological weapons. Member 
countries as of November 1, 1995 include: Argentina, Australia, 
Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, 
the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak 
Republic, Spain, Sweden, Switzerland, the United Kingdom, and the 
United States. See also Sec. 742.2 of the EAR.
    ``Automatic target tracking.'' (Cat 6)--A processing technique that 
automatically determines and provides as output an extrapolated value 
of the most probable position of the target in real time.
    ``Bandwidth of one voice channel.'' (Cat 5)--In the case of data 
communication equipment designed to operate in one voice channel of 
3,100 Hz, as defined in CCITT Recommendation G.151.
    ``Basic gate propagation delay time.'' (Cat 3)--The propagation 
delay time value corresponding to the basic gate utilized within a 
``family'' of ``monolithic integrated circuits''. This may be 
specified, for a given ``family'', either as the propagation delay time 
per typical gate or as the typical propagation delay time per gate.

    Note: ``Basic gate propagation delay time'' is not to be 
confused with input/output delay time of a complex ``monolithic 
integrated circuit''.

    ``Basic Scientific Research.'' (GTN)--Experimental or theoretical 
work undertaken principally to acquire new knowledge of the fundamental 
principles of phenomena or observable facts, not primarily directed 
towards a specific practical aim or objective.
    ``Beat length.'' (Cat 6)--The distance over which two orthogonally 
polarized signals, initially in phase, must pass in order to achieve a 
2 Pi radian(s) phase difference.
    ``Bias.'' (accelerometer) (Cat 7)--An accelerometer output when no 
acceleration is applied.
    Bill of Lading. The contract of carriage and receipt for items, 
issued by the carrier. It includes an air waybill, but does not include 
an inland bill of lading or a domestic air waybill covering movement to 
port only.
    CCL. See Commerce Control List.
    CCL Group. The Commerce Control List (CCL) is divided into 10 
categories. Each category is subdivided into five groups, designated by 
letters A through E: (A) Equipment, assemblies, and components; (B) 
Test, production, and inspection equipment; (C) Materials; (D) 
Software; and (E) Technology. See Sec. 738.2(b) of the EAR.
    ``CE.''--See ``Computing Element.''
    ``CTP.''--See ``Composite theoretical performance.'' This term may 
also appear without quotation marks.
    ``Camming.'' (axial displacement) (Cat 2)--Axial displacement in 
one revolution of the main spindle measured in a plane perpendicular to 
the spindle faceplate, at a point next to the circumference of the 
spindle faceplate (Ref.: ISO 230 Part 1-1986, paragraph 5.63).
    Canadian airline. Any citizen of Canada who is authorized by the 
Canadian Government to engage in business as an airline. For purposes 
of this definition, a Canadian citizen is:
    (a) A natural person who is a citizen of Canada; or
    (b) A partnership of which each member is such an individual; or
    (c) A Canadian firm incorporated or otherwise organized under the 
laws of Canada or any Canadian province, having a total foreign stock 
interest not greater than 40 percent and having the Chairman or Acting 
Chairman and at least two-thirds of the Directors thereof Canadian 
citizens.
    ``Capable of.'' (MTCR context)--See ``usable in''.
    Category. The Commerce Control List is divided into 10 categories: 
(0) Nuclear Materials, Facilities, and Equipment, and Miscellaneous; 
(1) Materials, Chemicals, ``Microorganisms,'' and Toxins; (2) Materials 
Processing; (3) Electronics; (4) Computers; (5) Telecommunications and 
Information Security; (6) Lasers and Sensors; (7) Navigation and 
Avionics; (8) Marine; and (9) Propulsion Systems, Space Vehicles, and 
Transportation Equipment. See Sec. 738.2(a) of the EAR.
    ``Chemical laser.'' (Cat 6)--A ``laser'' in which the excited 
species is produced by the output energy from a chemical reaction.
    ``Circulation.'' (controlled, anti-torque direction control 
systems) (Cat 7)--Use air blown over aerodynamic surfaces to increase 
or control the forces generated by the surfaces.
    ``Civil aircraft.'' (Cat 7 and 9)--Only those ``aircraft'' listed 
by designation in published airworthiness certification lists by the 
civil aviation authorities to fly commercial civil internal and 
external routes or for legitimate civil, private or business use. (See 
also ``aircraft'')
    COCOM (Coordinating Committee on Multilateral Export Controls). A 
multilateral organization that cooperated in restricting strategic 
exports to controlled countries. COCOM was officially disbanded on 
March 31, 1994. COCOM members included the NATO countries, except 
Iceland, plus Japan and Australia.
    Commerce Control List (CCL). A list of items under the export 
control jurisdiction of the Bureau of Export Administration, U.S. 
Department of Commerce. Note that certain additional items described in 
part 732 of the EAR are also subject to the EAR. The CCL is found in 
Supplement No. 1 to part 774 of the EAR.
    ``Commingled.'' (Cat 1)--Filament to filament blending of 
thermoplastic fibers and reinforcement fibers in order to produce a 
fiber reinforcement/matrix mix in total fiber form.
    ``Comminution.'' (Cat 1)--A process to reduce a material to 
particles by crushing or grinding.
    Commodity. Any article, material, or supply except technology and 
software.
    ``Common channel signalling.'' (Cat 5)--A signalling method in 
which a single channel between exchanges conveys, by means of labelled 
messages, signalling information relating to a multiplicity of circuits 
or calls and other information such as that used for network 
management.
    ``Communications channel controller.'' (Cat 5)--The physical 
interface that controls the flow of synchronous or asynchronous digital 
information. It is an assembly that can be integrated into computer or 
telecommunications equipment to provide communications access.
    ``Composite.'' (Cat 1, 6, 8, and 9)--A ``matrix'' and an additional 
phase or additional phases consisting of particles, whiskers, fibers or 
any

[[Page 12927]]
combination thereof, present for a specific purpose or purposes.
    ``Composite theoretical performance.'' (CTP) (Cat 4)--A measure of 
computational performance given in millions of theoretical operations 
per second (Mtops), calculated using the aggregation of ``computing 
elements (CE)''. (See Category 4, Technical Note.) This term may also 
appear without quotation marks. The formula to calculate the CTP is 
contained in a technical note titled ``Information on How to Calculate 
``Composite Theoretical Performance'' at the end of Category 4 of the 
CCL.
    ``Compound rotary table.'' (Cat 2)--A table allowing the workpiece 
to rotate and tilt about two non-parallel axis that can be coordinated 
simultaneously for ``contouring control''.
    ``Computer using facility.'' (Cat 4)--The end-user's contiguous and 
accessible facilities:
    (a) Housing the ``computer operating area'' and those end-user 
functions that are being supported by the stated application of the 
electronic computer and its related equipment; and
    (b) Not extending beyond 1,500 meters in any direction from the 
center of the ``computer operating area''.

    Note: ``Computer operating area'': the immediate contiguous and 
accessible area around the electronic computer, where the normal 
operating, support and service functions take place.

    ``Computing element.'' (CE) (Cat 4)--The smallest computational 
unit that produces an arithmetic logic result.
    ``Contouring control.'' (Cat 2)--Two or more numerically controlled 
motions operating in accordance with instructions that specify the next 
required position and the required feed rates to that position. These 
feed rates are varied in relation to each other so that a desired 
contour is generated (Ref. ISO/DIS 2806--1980).
    Controlled country. A list of countries designated controlled for 
national security purposes found in Country Group D:1 (see Supplement 
No. 1 to part 740 of the EAR). This list was established under 
authority delegated to the Secretary of Commerce by Executive Order 
12214 of May 2, 1980 pursuant to section 5(b) of the EAA, and 
including: Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, 
the People's Republic of China, Estonia, Georgia, Kazakstan, 
Kyrgyzstan, Laos, Latvia, Lithuania, Moldova, Mongolia, Romania, 
Russia, Tajikstan, Turkmenistan, Ukraine, Uzbekistan, and Vietnam. Cuba 
and North Korea are controlled countries, but they are listed in 
Country Group E:2 (unilateral embargoes) rather than Country Group D:1. 
This definition does not apply to part 768 of the EAR (Foreign 
Availability), which provides a dedicated definition.
    Controlled in fact. For purposes of the Special Comprehensive 
License (part 752 of the EAR), controlled in fact is defined as it is 
under the Restrictive Trade Practices or Boycotts (Sec. 760.1(c) of the 
EAR).
    Cooperating country. A country that cooperated with the former 
COCOM member countries in restricting strategic exports in accordance 
with COCOM standards. The ``Cooperating Countries'' are: Austria, 
Finland, Hong Kong, Ireland, Korea (Republic of), New Zealand, Sweden, 
and Switzerland.
    Countries supporting international terrorism. In accordance with 
section 6(j) of the Export Administration Act of 1979, as amended 
(EAA), the Secretary of State has determined that the following 
countries' governments have repeatedly provided support for acts of 
international terrorism: Cuba, Iran, Iraq, Libya, North Korea, Sudan, 
and Syria.
    Country Chart. A chart, found in Supplement No. 1 to part 738 of 
the EAR, that contains certain licensing requirements based on 
destination and reason for control. In combination with the CCL, the 
Country Chart indicates when a license is required for any item on the 
CCL to any country in the world under General Prohibition One (Exports 
and Reexports in the Form Received), General Prohibition Two (Parts and 
Components Reexports), and General Prohibition Three (Foreign Produced 
Direct Product Reexports). See part 736 of the EAR.
    Country Groups. For export control purposes, foreign countries are 
separated into five country groups designated by the symbols A, B, C, 
D, and E. (See Supplement No. 1 to part 740 of the EAR for a list of 
countries in each Country Group.)
    ``Critical temperature.'' (Cat 1, 3, and 6)--The ``critical 
temperature'' (sometimes referred to as the transition temperature) of 
a specific ``superconductive'' material is the temperature at which the 
material loses all resistance to the flow of direct electrical current.
    ``Cryptanalysis.'' (Cat 5)--The analysis of a cryptographic system 
or its inputs and outputs to derive confidential variables or sensitive 
data including clear text. (ISO 7498-2-1988(E), paragraph 3.3.18)
    ``Cryptography.'' (Cat 5)--The discipline that embodies principles, 
means and methods for the transformation of data in order to hide its 
information content, prevent its undetected modification or prevent its 
unauthorized use. ``Cryptography'' is limited to the transformation of 
information using one or more ``secret parameters'' (e.g., crypto 
variables) and/or associated key management.

    Note: ``Secret parameter'': a constant or key kept from the 
knowledge of others or shared only within a group.

    Customs officer. The Customs officers in the U.S. Customs Service 
and postmasters unless the context indicates otherwise.
    ``Data signalling rate.'' (Cat 5)--The rate, as defined in ITU 
Recommendation 53-36, taking into account that, for non-binary 
modulation, baud and bit per second are not equal. Bits for coding, 
checking and synchronization functions are to be included.

    Notes: 1. When determining the ``data signalling rate'', 
servicing and administrative channels shall be excluded.
    2. It is the maximum one-way rate, i.e., the maximum rate in 
either transmission or reception.
    (a) Mirrors:
    (1) Mirrors having a single continuous optical reflecting 
surface that is dynamically deformed by the application of 
individual torques or forces to compensate for distortions in the 
optical waveform incident upon the mirror; or
    (2) Mirrors having multiple optical reflecting elements that can 
be individually and dynamically repositioned by the application of 
torques or forces to compensate for distortions in the optical 
waveform incident upon the mirror.
    (b) Deformable mirrors are also known as adaptive optic mirrors.

    ``Datagram.'' (Cat 4 and 5)--A self-contained, independent entity 
of data carrying sufficient information to be routed from the source to 
the destination data terminal equipment without reliance on earlier 
exchanges between this source and destination data terminal equipment 
and the transporting network.
    Defense Trade Control (DTC). The office at the Department of State, 
formerly known as the Office of Munitions Control, responsible for 
reviewing applications to export and reexport items on the U.S. 
Munitions List. (See 22 CFR parts 120 through 130.)
    Denied Persons List. A list, referenced in Supplement No. 2 to part 
764 of the EAR, of specific persons that have been denied export 
privileges, in whole or in part. The full text of each order denying 
export privileges is published in the Federal Register.
    ``Designed or modified.'' (MTCR context)--Equipment, parts, 
components, or ``software'' that, as a result of ``development'', or

[[Page 12928]]
modification, have specified properties that make them fit for a 
particular application. ``Designed or modified'' equipment, parts, 
components or ``software'' can be used for other applications. For 
example, a titanium coated pump designed for a ``missile'' may be used 
with corrosive fluids other than propellants.
    ``Development.'' (General Technology Note)--``Development'' is 
related to all stages prior to serial production, such as: design, 
design research, design analyses, design concepts, assembly and testing 
of prototypes, pilot production schemes, design data, process of 
transforming design data into a product, configuration design, 
integration design, layouts.
    ``Diffusion bonding.'' (Cat 1, 2, and 9)--A solid-state molecular 
joining of at least two separate metals into a single piece with a 
joint strength equivalent to that of the weakest material.
    ``Digital computer.'' (Cat 4 and 5)--Equipment that can, in the 
form of one or more discrete variables:
    (a) Accept data;
    (b) Store data or instructions in fixed or alterable (writable) 
storage devices;
    (c) Process data by means of a stored sequence of instructions that 
is modifiable; and
    (d) Provide output of data.

    Note: Modifications of a stored sequence of instructions include 
replacement of fixed storage devices, but not a physical change in 
wiring or interconnections.

    ``Digital transfer rate.'' (Cat 5)--The total bit rate of the 
information that is directly transferred on any type of medium.
    ``Direct-acting hydraulic pressing.'' (Cat 2)--A deformation 
process that uses a fluid-filled flexible bladder in direct contact 
with the workpiece.
    ``Drift rate.'' (gyro) (Cat 7)--The time rate of output deviation 
from the desired output. It consists of random and systematic 
components and is expressed as an equivalent input angular displacement 
per unit time with respect to inertial space.
    Dual use. Items that have both commercial and military or 
proliferation applications. While this term is used informally to 
describe items that are subject to the EAR, purely commercial items are 
also subject to the EAR (see Sec. 734.2(a) of the EAR).
    ``Dynamic adaptive routing.'' (Cat 5)--Automatic rerouting of 
traffic based on sensing and analysis of current actual network 
conditions.

    Note: This does not include cases of routing decisions taken on 
predefined information.

    ``Dynamic signal analyzers.'' (Cat 3)--``Signal analyzers'' that 
use digital sampling and transformation techniques to form a Fourier 
spectrum display of the given waveform including amplitude and phase 
information.
    Effective control. For purposes of the Special Comprehensive 
License (SCL), effective control means the exercise of a right, under a 
contractual agreement between the SCL Holder and the consignee, to 
determine and control the export of items authorized under an SCL.
    ``Electronically steerable phased array antenna.'' (Cat 6)--An 
antenna that forms a beam by means of phase coupling, i.e., the beam 
direction is controlled by the complex excitation coefficients of the 
radiating elements and the direction of that beam can be varied in 
azimuth or in elevation, or both, by application, both in transmission 
and reception, of an electrical signal.
    ``End-effectors.'' (Cat 2)--``End-effectors'' include grippers, 
``active tooling units'' and any other tooling that is attached to the 
baseplate on the end of a ``robot'' manipulator arm.

    Note: ``Active tooling unit'': a device for applying motive 
power, process energy or sensing to the workpiece.

    ``Equivalent Density.'' (Cat 6)--The mass of an optic per unit 
optical area projected onto the optical surface.
    ``Expert systems.'' (Cat 4)--Systems providing results by 
application of rules to data that are stored independently of the 
``program'' and capable of any of the following:
    (a) Modifying automatically the ``source code'' introduced by the 
user;
    (b) Providing knowledge linked to a class of problems in quasi-
natural language; or
    (c) Acquiring the knowledge required for their development 
(symbolic training).
    Export. Export means an actual shipment or transmission of items 
out of the United States. (See Sec. 734.2(b) of the EAR.)
    Export Administration Act (EAA). Export Administration Act of 1979, 
as amended, effective October 1, 1979.
    Export Administration Regulations (EAR). Regulations set forth in 
parts 730-774, inclusive, of Title 15 of the Code of Federal 
Regulations.
    Export Administration Review Board (EARB). EARB voting members are 
the Secretary of Commerce, the Secretary of State, the Secretary of 
Defense, the Secretary of Energy, and the Director of the Arms Control 
and Disarmament Agency. The Chairman of the Joint Chiefs of Staff and 
the Director of Central Intelligence are non-voting members. The 
Secretary of Commerce is the Chair of the EARB. No alternate EARB 
members may be designated, but the acting head or deputy head of any 
agency or department may serve in lieu of the head of the concerned 
agency or department. The EARB may invite the heads of other Government 
agencies or departments (other than those identified in this 
definition) to participate in the activities of the EARB when matters 
of interest to such agencies or departments are under consideration. 
Decisions are made by majority vote.
    Export Control Classification Number (ECCN). The numbers used in 
Supplement No. 1 to part 774 of the EAR and throughout the EAR. The 
Export Control Classification Number consists of a set of digits and a 
letter. Reference Sec. 738.2(c) of the EAR for a complete description 
of each ECCN's composition.
    Export control document. A license; application for license; any 
and all documents submitted in accordance with the requirements of the 
EAR in support of, or in relation to, a license application; 
application for International Import Certificate; International Import 
Certificate; Delivery Verification Certificate or similar evidence of 
delivery; Shipper's Export Declaration (SED) presented in connection 
with shipments to any country; a Dock Receipt or bill of lading issued 
by any carrier in connection with any export subject to the EAR and any 
and all documents prepared and submitted by exporters and agents 
pursuant to the export clearance requirements of part 758 of the EAR; a 
U.S. exporter's report of request received for information, 
certification, or other action indicating a restrictive trade practice 
or boycott imposed by a foreign country against a country friendly to 
the United States, submitted to the U.S. Department of Commerce in 
accordance with the provisions of part 760 of the EAR; Customs Form 
7512, Transportation Entry and Manifest of Goods, Subject to Customs 
Inspection and Permit, when used for Transportation and Exportation 
(T.& E.) or Immediate Exportation (I.E.); and any other document issued 
by a U.S. Government agency as evidence of the existence of a license 
for the purpose of loading onto an exporting carrier or otherwise 
facilitating or effecting an export from the United States or any 
reexport of any item requiring a license.
    Export of satellites. The term export, as applied to satellites 
controlled by the Department of Commerce, includes the physical 
movement of a satellite from the United States to another country for

[[Page 12929]]
any purpose, or the transfer of registration of a satellite or 
operational control over a satellite from a person resident in the 
United States to a person resident in another country. Under the 
Commercial Space Launch Act, a launch of a launch vehicle and payload 
is not an export for purposes of controlling export.
    Exporter. See U.S. exporter.
    Exporting carrier. Any instrumentality of water, land, or air 
transportation by which an export is effected, including any domestic 
air carrier on which any cargo for export is laden or carried.
    ``FMU.''--See ``flexible manufacturing unit''
    ``Family.'' (Cat 3)--Consists of microprocessor or microcomputer 
microcircuits that have:
    (a) The same architecture;
    (b) The same basic instruction set; and
    (c) The same basic technology (e.g., only NMOS or only CMOS).
    ``Fast select.'' (Cat 4 and 5)--A facility applicable to virtual 
calls that allows data terminal equipment to expand the possibility to 
transmit data in call set-up and clearing ``packets'' beyond the basic 
capabilities of a virtual call.

    Note: ``Packet'': a group of binary digits including data and 
call control signals that is switched as a composite whole. The 
data, call control signals, and possible error control information 
are arranged in a specified format.

    ``Fault tolerance.'' (Cat 4)--The capability of a computer system, 
after any malfunction of any of its hardware or ``software'' 
components, to continue to operate without human intervention, at a 
given level of service that provides: continuity of operation, data 
integrity, and recovery of service within a given time.
    ``Fibrous or filamentary materials.'' (Cat 1 and 8)--The term 
``fibrous and filamentary materials'' includes:
    (a) Continuous monofilaments;
    (b) Continuous yarns and rovings;
    (c) Tapes, fabrics, random mats and braids;
    (d) Chopped fibers, staple fibers and coherent fiber blankets;
    (e) Whiskers, either monocrystalline or polycrystalline, of any 
length;
    (f) Aromatic polyimide pulp.
    ``Film type integrated circuit.'' (Cat 3)--An array of ``circuit 
elements'' and metallic interconnections formed by deposition of a 
thick or thin film on an insulating ``substrate''.

    Note: ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode, one transistor, 
one resistor, one capacitor, etc.

    Firm. A corporation, partnership, limited partnership, association, 
company, trust, or any other kind of organization or body corporate, 
situated, residing, or doing business in the United States or any 
foreign country, including any government or agency thereof.
    ``Fixed.'' (Cat 5)--The coding or compression algorithm cannot 
accept externally supplied parameters (e.g., cryptographic or key 
variables) and cannot be modified by the user.
    ``Flexible manufacturing unit.'' (FMU), (sometimes also referred to 
as `flexible manufacturing system' (FMS) or `flexible manufacturing 
cell' (FMC)) (Cat 2)--An entity that includes a combination of at 
least:
    (a) A ``digital computer'' including its own ``main storage'' and 
its own ``related equipment''; and
    (b) Two or more of the following:
    (1) A machine tool described in 2B001.c;
    (2) A dimensional inspection machine described in Category 2, or 
another digitally controlled measuring machine controlled by an entry 
in Category 2;
    (3) A ``robot'' controlled by an entry in Category 2 or 8;
    (4) Digitally controlled equipment controlled by 1B003, 2B003, or 
9B001;
    (5) ``Stored program controlled'' equipment controlled by 3B001;
    (6) Digitally controlled equipment controlled by 1B001;
    (7) Digitally controlled electronic equipment controlled by 3A002.
    ``Fluoride fibers.'' (Cat 6)--Fibers manufactured from bulk 
fluoride compounds.
    ``Focal plane array.'' (Cat 6)--A linear or two-dimensional planar 
layer, or combination of planar layers, of individual detector 
elements, with or without readout electronics, that work in the focal 
plane.

    N.B. This definition does not include a stack of single detector 
elements or any two, three, or four element detectors provided time 
delay and integration is not performed within the element.

    Foreign government agency. For the purposes of exemption from 
support documentation (see Sec. 748.9 of the EAR), a foreign government 
agency is defined as follows:
    (a) National governmental departments operated by government-paid 
personnel performing governmental administrative functions; e.g. 
Finance Ministry, Ministry of Defense, Ministry of Health, etc. 
(municipal or other local government entities must submit required 
support documentation); or
    (b) National government-owned public service entities; e.g., 
nationally owned railway, postal, telephone, telegraph, broadcasting, 
and power systems, etc. The term ``foreign government agency'' does not 
include government corporations, quasi-government agencies, and state 
enterprises engaged in commercial, industrial, and manufacturing 
activities, such as petroleum refineries, mines, steel mills, retail 
stores, automobile manufacturing plants, airlines, or steamship lines 
that operate between two or more countries, etc.
    Foreign policy control. A control imposed under the EAR for any and 
all of the following reasons: chemical and biological weapons, nuclear 
nonproliferation, missile technology, regional stability, crime 
control, anti-terrorism, United Nations sanctions, and any other reason 
for control implemented under section 6 of the EAA or other similar 
authority.
    Forwarding agent. The person authorized by an exporter to perform 
for that exporter services to facilitate the export of items. The 
forwarding agent need not be a person regularly engaged in the freight 
forwarding business. The forwarding agent must be designated by the 
exporter in writing in the power-of-attorney set forth on the Shippers' 
Export Declaration or in a general power-of-attorney, or other written 
form, subscribed and sworn to by a duly authorized officer or employee 
of the exporter.
    ``Frequency agility.'' (frequency hopping) (Cat 5)--A form of 
``spread spectrum'' in which the transmission frequency of a single 
communication channel is made to change by discrete steps.
    ``Frequency agility.'' (radar) (Cat 6)--(see ``Radar frequency 
agility'')
    ``Frequency switching time.'' (Cat 3 and 5)--The maximum time 
(i.e., delay), taken by a signal, when switched from one selected 
output frequency to another selected output frequency, to reach:
    (a) A frequency within 100 Hz of the final frequency; or
    (b) An output level within 1 dB of the final output level.
    ``Frequency synthesizer.'' (Cat 3)--Any kind of frequency source or 
signal generator, regardless of the actual technique used, providing a 
multiplicity of simultaneous or alternative output frequencies, from 
one or more outputs, controlled by, derived from or disciplined by a 
lesser number of standard (or master) frequencies.
    ``Gas Atomization.'' (Cat 1)--A process to reduce a molten stream 
of metal alloy to droplets of 500-micrometer diameter or less by a 
high-pressure gas stream.

[[Page 12930]]

    ``Gateway.'' (Cat 5)--The function, realized by any combination of 
equipment and ``software'', to carry out the conversion of conventions 
for representing, processing or communicating information used on one 
system into the corresponding, but different conventions used in 
another system.
    General prohibitions. The 10 prohibitions found in part 734 of the 
EAR that prohibit certain exports, reexports, and other conduct, 
subject to the EAR, absent a license, License Exception, or 
determination that no license is required (``NLR'').
    ``Generic software.'' (Cat 5)--A set of instructions for a ``stored 
program controlled'' switching system that is the same for all switches 
using that type of switching system.

    Note: The data base portion is not considered to be a part of 
the generic ``software''.

    ``Geographically dispersed.'' (Cat 6)--Sensors are considered 
geographically dispersed when each location is distant from any other 
more than 1,500 m in any direction. Mobile sensors are always 
considered geographically dispersed.
    ``Global interrupt latency time.'' (Cat 4)--The time taken by the 
computer system to recognize an interrupt due to the event, service the 
interrupt and perform a context switch to an alternate memory-resident 
task waiting on the interrupt.
    Hold Without Action (HWA). License applications may be held without 
action only in the limited circumstances described in Sec. 750.4(c) of 
the EAR.
    ``Hot isostatic densification.'' (Cat 2)--A process of pressurizing 
a casting at temperatures exceeding 375 K (102  deg.C) in a closed 
cavity through various media (gas, liquid, solid particles, etc.) to 
create equal force in all directions to reduce or eliminate internal 
voids in the casting.
    ``Hybrid computer.'' (Cat 4)--Equipment that can:
    (a) Accept data;
    (b) Process data, in both analog and digital representation; and
    (c) Provide output of data.
    ``Hybrid integrated circuit.'' (Cat 3)--Any combination of 
integrated circuit(s), or integrated circuit with ``circuit elements'' 
or ``discrete components'' connected together to perform (a) specific 
function(s), and having all of the following criteria:
    (a) Containing at least one unencapsulated device;
    (b) Connected together using typical IC-production methods;
    (c) Replaceable as an entity; and
    (d) Not normally capable of being disassembled.

    Notes: 1. ``Circuit element'': a single active or passive 
functional part of an electronic circuit, such as one diode, one 
transistor, one resistor, one capacitor, etc.
    2. ``Discrete component'': a separately packaged ``circuit 
element'' with its own external connections.

    ``ISDN.''--See ``Integrated Services Digital Network''.
    ``Image enhancement.'' (Cat 4)--The processing of externally 
derived information-bearing images by algorithms such as time 
compression, filtering, extraction, selection, correlation, convolution 
or transformations between domains (e.g., fast Fourier transform or 
Walsh transform). This does not include algorithms using only linear or 
rotational transformation of a single image, such as translation, 
feature extraction, registration or false coloration.
    ``Information security.'' (Cat 5)--All the means and functions 
ensuring the accessibility, confidentiality or integrity of information 
or communications, excluding the means and functions intended to 
safeguard against malfunctions. This includes ``cryptography'', 
``cryptanalysis'', protection against compromising emanations and 
computer security.

    N.B. ``Cryptanalysis'': the analysis of a cryptographic system 
or its inputs and outputs to derive confidential variables or 
sensitive data, including clear text. (ISO 7498-2-1988 (E), 
paragraph 3.3.18)

    ``Instantaneous bandwidth.'' (Cat 3)--The bandwidth over which 
output power remains constant within 3 dB without adjustment of other 
operating parameters.
    ``Instrumented range.'' (Cat 6)--The specified unambiguous display 
range of a radar.
    ``Integrated Services Digital Network.'' (ISDN) (Cat 5)--A unified 
end-to-end digital network, in which data originating from all types of 
communication (e.g., voice, text, data, still and moving pictures) are 
transmitted from one port (terminal) in the exchange (switch) over one 
access line to and from the subscriber.
    Intent to Deny (ITD) letter. A letter informing the applicant:
    (a) Of the reason for BXA's decision to deny a license application; 
and
    (b) That the application will be denied 45 days from the date of 
the ITD letter, unless the applicant provides, and BXA accepts, a 
reason why the application should not be denied for the stated reason. 
See Sec. 750.6 of the EAR.
    ``Interconnected radar sensors.'' (Cat 6)--Two or more radar 
sensors are interconnected when they mutually exchange data in real 
time.
    Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter, the purchaser, or the ultimate 
consignee, for the purpose of effecting delivery of the items to the 
ultimate consignee.
    ``Intrinsic Magnetic Gradiometer.'' (Cat 6)--A single magnetic 
field gradient sensing element and associated electronics the output of 
which is a measure of magnetic field gradient. (See also ``Magnetic 
Gradiometer'')
    ``Isostatic presses.'' (Cat 2)--Equipment capable of pressurizing a 
closed cavity through various media (gas, liquid, solid particles, 
etc.) to create equal pressure in all directions within the cavity upon 
a workpiece or material.
    Item. ``Item'' means ``commodities, software, and technology.'' 
When the EAR intend to refer specifically to commodities, software, or 
technology, the text will use the specific reference.
    Know. See ``knowledge.''
    Knowledge. Knowledge of a circumstance (the term may be a variant, 
such as ``know,'' ``reason to know,'' or ``reason to believe'') 
includes not only positive knowledge that the circumstance exists or is 
substantially certain to occur, but also an awareness of a high 
probability of its existence or future occurrence. Such awareness is 
inferred from evidence of the conscious disregard of facts known to a 
person and is also inferred from a person's willful avoidance of facts. 
This definition does not apply to part 760 of the EAR (Restrictive 
Trade Practices or Boycotts).
    ``Laser.'' (Cat 2, 3, 5, 6, and 9)--An assembly of components that 
produce both spatially and temporally coherent light that is amplified 
by stimulated emission of radiation. See also: ``Chemical laser''; ``Q-
switched laser''; ``Super High Power Laser''; and ``Transfer laser''.
    Law or regulation relating to export control. Any statute, 
proclamation, executive order, regulation, rule, license, or order 
applicable to any conduct involving an export transaction shall be 
deemed to be a ``law or regulation relating to export control.''
    Legible or legibility. Legible and legibility mean the quality of a 
letter or numeral that enables the observer to identify it positively 
and quickly to the exclusion of all other letters or numerals.
    License. Authority issued by the Bureau of Export Administration 
authorizing an export, reexport, or other regulated activity. The term 
``license'' does not include authority represented by a ``License 
Exception.''

[[Page 12931]]

    License application; application for license. License application 
and similar wording mean an application to BXA requesting the issuance 
of a license to the applicant.
    License Exception. An authorization described in part 740 of the 
EAR that allows you to export or reexport, under stated conditions, 
items subject to the EAR that otherwise would require a license. Unless 
otherwise indicated, these License Exceptions are not applicable to 
exports under the licensing jurisdiction of agencies other than the 
Department of Commerce.
    Licensee. The person to whom a license has been issued by BXA. See 
Sec. 750.7(c) of the EAR for a complete definition and identification 
of a licensee's responsibilities.
    ``Linearity.'' (Cat 2)--``Linearity'' (usually measured in terms of 
non-linearity) is the maximum deviation of the actual characteristic 
(average of upscale and downscale readings), positive or negative, from 
a straight line so positioned as to equalize and minimize the maximum 
deviations.
    ``Local area network.'' (Cat 4)--A data communication system that:
    (a) Allows an arbitrary number of independent ``data devices'' to 
communicate directly with each other; and
    (b) Is confined to a geographical area of moderate size (e.g., 
office building, plant, campus, warehouse).

    Note: ``Data device'': equipment capable of transmitting or 
receiving sequences of digital information.

    ``MBTR''.--See ``maximum bit transfer rate''.
    MTCR. See Missile Technology Control Regime.
    MTEC. See Missile Technology Export Control Group.
    ``Magnetic Gradiometers.'' (Cat 6)--Are designed to detect the 
spatial variation of magnetic fields from sources external to the 
instrument. They consist of multiple ``magnetometers'' and associated 
electronics the output of which is a measure of magnetic field 
gradient. (See also ``Intrinsic Magnetic Gradiometer''.)
    ``Magnetometers.'' (Cat 6)--Are designed to detect magnetic fields 
from sources external to the instrument. They consist of a single 
magnetic field sensing element and associated electronics the output of 
which is a measure of the magnetic field.
    ``Main storage.'' (Cat 4)--The primary storage for data or 
instructions for rapid access by a central processing unit. It consists 
of the internal storage of a ``digital computer'' and any hierarchical 
extension thereto, such as cache storage or non-sequentially accessed 
extended storage.
    ``Matrix.'' (Cat 1, 2, 8, and 9)--A substantially continuous phase 
that fills the space between particles, whiskers or fibers.
    ``Maximum bit transfer rate.'' (MBTR) (Cat 4)--Of solid state 
storage equipment: the number of data bits per second transferred 
between the equipment and its controller. Of a disk drive: the internal 
data transfer rate calculated as follows:

     ``MBTR'' (bits per second)=B x R x T, where:

B=Maximum number of data bits per track available to read or write 
in a single revolution;
R=Revolutions per second;
T=Number of tracks that can be used or written simultaneously.

    ``Measurement uncertainty.'' (Cat 2)--The characteristic parameter 
that specifies in what range around the output value the correct value 
of the measurable variable lies with a confidence level of 95%. It 
includes the uncorrected systematic deviations, the uncorrected 
backlash, and the random deviations (Ref.: VDI/VDE 2617).
    ``Mechanical alloying.'' (Cat 1)--An alloying process resulting 
from the bonding, fracturing and rebonding of elemental and master 
alloy powders by mechanical impact. Non-metallic particles may be 
incorporated in the alloy by addition of the appropriate powders.
    ``Media access unit.'' (Cat 5)--Equipment that contains one or more 
communication interfaces (``network access controller'', 
``communications channel controller'', modem or computer bus) to 
connect terminal equipment to a network.
    ``Melt Extraction.'' (Cat 1)--A process to ``solidify rapidly'' and 
extract a ribbon-like alloy product by the insertion of a short segment 
of a rotating chilled block into a bath of a molten metal alloy.

    Note: ``Solidify rapidly'': solidification of molten material at 
cooling rates exceeding 1,000 K/sec.

    ``Melt Spinning.'' (Cat 1)--A process to ``solidify rapidly'' a 
molten metal stream impinging upon a rotating chilled block, forming a 
flake, ribbon or rod-like product.

    Note: ``Solidify rapidly'': solidification of molten material at 
cooling rates exceeding 1,000 K/sec.

    ``Microprocessor microcircuit.'' (Cat 3)--A ``monolithic integrated 
circuit'' or ``multichip integrated circuit'' containing an arithmetic 
logic unit (ALU) capable of executing a series of general purpose 
instructions from an external storage.

    N.B. 1: The ``microprocessor microcircuit'' normally does not 
contain integral user-accessible storage, although storage present 
on-the-chip may be used in performing its logic function.
    N.B. 2: This definition includes chip sets that are designed to 
operate together to provide the function of a ``microprocessor 
microcircuit''.

    ``Microprogram.'' (Cat 4 and 5)--A sequence of elementary 
instructions, maintained in a special storage, the execution of which 
is initiated by the introduction of its reference instruction into an 
instruction register.
    Missile Technology Control Regime (MTCR). The United States and 
other nations in this multilateral control regime have agreed to 
guidelines for restricting the export and reexport of dual-use items 
that may contribute to the development of missiles. The MTCR Annex 
lists missile-related equipment and technology controlled either by the 
Department of Commerce or by the Department of State's Office of 
Defense Trade Controls (22 CFR parts 120 through 130).
    Missile Technology Export Control Group (MTEC). Chaired by the 
Department of State, the MTEC primarily reviews applications involving 
items controlled for Missile Technology (MT) reasons. The MTEC also 
reviews applications involving items not controlled for MT reasons, but 
destined for a country and/or end-use/end-user of concern.
    ``Missiles.'' (All)--Rocket systems (including ballistic missile 
systems, space launch vehicles, and sounding rockets) and unmanned air 
vehicle systems (including cruise missile systems, target drones, and 
reconnaissance drones) ``capable of'' delivering at least 500 kilograms 
payload to a range of at least 300 kilometers.
    ``Monolithic integrated circuit.'' (Cat 3)--A combination of 
passive or active ``circuit elements'' or both that:
    (a) Are formed by means of diffusion processes, implantation 
processes or deposition processes in or on a single semiconducting 
piece of material, a so-called 'chip';
    (b) Can be considered as indivisibly associated; and
    (c) Perform the function(s) of a circuit.

    Note: ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode, one transistor, 
one resistor, one capacitor, etc.

    ``Most immediate storage.'' (Cat 4)--The portion of the ``main 
storage'' most directly accessible by the central processing unit:

[[Page 12932]]

    (a) For single level ``main storage'', the internal storage; or
    (b) For hierarchical ``main storage'':
    (1) The cache storage;
    (2) The instruction stack; or
    (3) The data stack.
    ``Motion control board.'' (Cat 2)--An electronic ``assembly'' 
specially designed to provide a computer system with the capability to 
coordinate simultaneously the motion of axes of machine tools for 
``contouring control''.
    ``Multichip integrated circuit.'' (Cat 3)--Two or more ``monolithic 
integrated circuits'' bonded to a common ``substrate''.
    ``Multi-data-stream processing.'' (Cat 4)--The ``microprogram'' or 
equipment architecture technique that permits simultaneous processing 
of two or more data sequences under the control of one or more 
instruction sequences by means such as:
    (a) Single Instruction Multiple Data (SIMD) architectures such as 
vector or array processors;
    (b) Multiple Single Instruction Multiple Data (MSIMD) 
architectures;
    (c) Multiple Instruction Multiple Data (MIMD) architectures, 
including those that are tightly coupled, closely coupled or loosely 
coupled; or
    (d) Structured arrays of processing elements, including systolic 
arrays.
    ``Multilevel security.'' (Cat 5)--A class of system containing 
information with different sensitivities that simultaneously permits 
access by users with different security clearances and need-to-know, 
but prevents users from obtaining access to information for which they 
lack authorization.

    Note: ``Multilevel security'' is computer security and not 
computer reliability that deals with equipment fault prevention or 
human error prevention in general.

    ``Multispectral Imaging Sensors.'' (Cat 6)--Are capable of 
simultaneous or serial acquisition of imaging data from two or more 
discrete spectral bands. Sensors having more than twenty discrete 
spectral bands are sometimes referred to as hyperspectral imaging 
sensors.
    ``N.E.S.'' N.E.S or n.e.s. is an abbreviation meaning ``not 
elsewhere specified''.
    NLR. NLR (``no license required'') is a symbol entered on the 
Shipper's Export Declaration, certifying that no license is required.
    NSG. See Nuclear Suppliers Group.
    NATO (North Atlantic Treaty Organization). A strategic defensive 
organization that consists of the following member nations: Belgium, 
Canada, Denmark, France, Germany, Greece, Iceland, Italy, Luxembourg, 
the Netherlands, Norway, Portugal, Spain, Turkey, the United Kingdom, 
and the United States.
    Net value. The actual selling price, less shipping charges or 
current market price, whichever is the larger, to the same type of 
purchaser in the United States.
    ``Network access controller.'' (Cat 4 and 5)--A physical interface 
to a distributed switching network. It uses a common medium that 
operates throughout at the same ``digital transfer rate'' using 
arbitration (e.g., token or carrier sense) for transmission. 
Independently from any other, it selects data packets or data groups 
(e.g., IEEE 802) addressed to it. It is an assembly that can be 
integrated into computer or telecommunications equipment to provide 
communications access.
    ``Neural computer.'' (Cat 4)--A computational device designed or 
modified to mimic the behavior of a neuron or a collection of neurons 
(i.e., a computational device that is distinguished by its hardware 
capability to modulate the weights and numbers of the interconnections 
of a multiplicity of computational components based on previous data).
    ``Noise level.'' (Cat 6)--An electrical signal given in terms of 
power spectral density. The relation between ``noise level'' expressed 
in peak-to-peak is given by S\2\pp=8No(f2-f\1\), where 
Spp is the peak-to-peak value of the signal (e.g., nanoteslas), 
No is the power spectral density (e.g., (nanotesla)\2\/Hz) and 
(f2-f1) defines the bandwidth of interest.
    Nuclear Suppliers Group (NSG). The United States and other nations 
in this multilateral control regime have agreed to guidelines for 
restricting the export or reexport of items with nuclear applications. 
As of February 1, 1996, members include: Argentina, Australia, Austria, 
Belgium, Bulgaria, Canada, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, the 
Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea, 
Romania, Russia, Slovak Republic, Spain, South Africa, Sweden, 
Switzerland, the United Kingdom, and the United States. See also 
Sec. 742.3 of the EAR.
    ``Numerical control.'' (Cat 2)--The automatic control of a process 
performed by a device that makes use of numeric data usually introduced 
as the operation is in progress (Ref. ISO 2382).
    ``Object code.'' (or object language) (Cat 4)--An equipment 
executable form of a convenient expression of one or more processes 
(``source code'' (or source language)) that has been converted by a 
programming system. (See also ``source code'')
    Office of Foreign Assets Control (FAC) or (OFAC). The office at the 
Department of the Treasury responsible for blocking assets of foreign 
countries subject to economic sanctions, controlling participation by 
U.S. persons, including foreign subsidiaries, in transactions with 
specific countries or nationals of such countries, and administering 
embargoes on certain countries or areas of countries. (See 31 CFR parts 
500 through 590.)
    ``Operate autonomously.'' (Cat 8)--Fully submerged, without 
snorkel, all systems working and cruising at minimum speed at which the 
submersible can safely control its depth dynamically by using its depth 
planes only, with no need for a support vessel or support base on the 
surface, sea-bed or shore, and containing a propulsion system for 
submerged or surface use.
    Operating Committee (OC). The OC voting members include 
representatives of appropriate agencies in the Departments of Commerce, 
State, Defense, and Energy and the Arms Control and Disarmament Agency. 
The appropriate representatives of the Joint Chiefs of Staff and the 
Director of the Nonproliferation Center of the Central Intelligence 
Agency are non-voting members. The Department of Commerce 
representative, appointed by the Secretary, is the Chair of the OC and 
serves as the Executive Secretary of the Advisory Committee on Export 
Policy. The OC may invite representatives of other Government agencies 
or departments (other than those identified above) to participate in 
the activities of the OC when matters of interest to such agencies or 
departments are under consideration.
    ``Optical amplification.'' (Cat 5)--In optical communications, an 
amplification technique that introduces a gain of optical signals that 
have been generated by a separate optical source, without conversion to 
electrical signals, i.e., using semiconductor optical amplifiers, 
optical fiber luminescent amplifiers.
    ``Optical computer.'' (Cat 4)--A computer designed or modified to 
use light to represent data and whose computational logic elements are 
based on directly coupled optical devices.
    ``Optical fiber preforms.'' (Cat 5 and 6)--Bars, ingots, or rods of 
glass, plastic or other materials that have been specially processed 
for use in fabricating optical fibers. The characteristics of the 
preform determine the basic parameters of the resultant drawn optical 
fibers.

[[Page 12933]]

    ``Optical integrated circuit.'' (Cat 3)--A ``monolithic integrated 
circuit'' or a ``hybrid integrated circuit'', containing one or more 
parts designed to function as photosensor or photoemitter or to perform 
(an) optical or (an) electro-optical function(s).
    ``Optical switching.'' (Cat 5)--The routing of or switching of 
signals in optical form without conversion to electrical signals.
    ``Overall current density.'' (Cat 3)--The total number of ampere-
turns in the coil (i.e., the sum of the number of turns multiplied by 
the maximum current carried by each turn) divided by the total cross-
section of the coil (comprising the superconducting filaments, the 
metallic matrix in which the superconducting filaments are embedded, 
the encapsulating material, any cooling channels, etc.).
    ``PABX.'' (Cat 5)--(See ``Private automatic branch exchange''.)
    ``Part program.'' (Cat. 2)--An ordered set of instructions that is 
in a language and in a format required to cause operations to be 
effected under automatic control and that is either written in the form 
of a machine program on an input medium or prepared as input data for 
processing in a computer to obtain a machine program (Ref. ISO 2806-
1980).
    ``Peak power.'' (Cat 6)--Energy per pulse in Joule divided by the 
pulse duration in seconds.
    Person. A natural person, including a citizen or national of the 
United States or of any foreign country; any firm; any government, 
government agency, government department, or government commission; any 
labor union; any fraternal or social organization; and any other 
association or organization whether or not organized for profit. This 
definition does not apply to part 760 of the EAR (Restrictive Trade 
Practices or Boycotts).
    ``Personalized smart card.'' (Cat 5)--A smart card containing a 
microcircuit, in accordance with ISO/IEC 7816, that has been programmed 
by the issuer and cannot be changed by the user.
    Port of export. The port where the cargo to be shipped abroad is 
laden aboard the exporting carrier. It includes, in the case of an 
export by mail, the place of mailing.
    ``Positioning accuracy.'' (Cat. 2)--The positioning accuracy of 
``numerically controlled'' machine tools is to be determined and 
presented in accordance with ISO/DIS 230/2, paragraph 2.13, in 
conjunction with the following requirements:
    (a) Test conditions:
    (1) For 12 hours before and during measurements, the machine tool 
and accuracy measuring equipment will be kept at the same ambient 
temperature. During the pre-measurement time the slides of the machine 
will be continuously cycled in the same manner that the accuracy 
measurements will be taken;
    (2) The machine shall be equipped with any mechanical, electronic, 
or software compensation to be exported with the machine;
    (3) Accuracy of measuring equipment for the measurements shall be 
at least four times more accurate than the expected machine tool 
accuracy;
    (4) Power supply for slide drives shall be as follows:
    (i) Line voltage variation shall exceed 10% of nominal 
rated voltage;
    (ii) Frequency variation shall not exceed 2 Hz of 
normal frequency;
    (iii) Lineouts or interrupted service are not permitted.
    (b) Test programs:
    (1) Feed rate (velocity of slides) during measurement shall be the 
rapid traverse rate;

    Note: In case of machine tools that generate optical quality 
surfaces, the feedrate shall be equal to or less than 50 mm per 
minute.

    (2) Measurements shall be made in an incremental manner from one 
limit of the axis travel to the other without returning to the starting 
position for each move to the target position;
    (3) Axes not being measured shall be retained at mid travel during 
the test of an axis.
    (c) Presentation of test results: The results of the measurement 
must include:
    (1) Position accuracy (A); and
    (2) The mean reversal error (B).
    ``Power management.'' (Cat 7)--Changing the transmitted power of 
the altimeter signal so that received power at the ``aircraft'' 
altitude is always at the minimum necessary to determine the altitude.
    ``Principal element.'' (Cat 4)--An element is a ``principal 
element'' when its replacement value is more than 35% of the total 
value of the system of which it is an element. Element value is the 
price paid for the element by the manufacturer of the system, or by the 
system integrator. Total value is the normal international selling 
price to unrelated parties at the point of manufacture or consolidation 
of shipment.
    ``Private automatic branch exchange.'' (PABX) (Cat 5)--An automatic 
telephone exchange, typically incorporating a position for an 
attendant, designed to provide access to the public network and serving 
extensions in an institution such as a business, government, public 
service or similar organization.
    ``Production.'' (General Technology Note)--Means all production 
stages, such as: product engineering, manufacture, integration, 
assembly (mounting), inspection, testing, quality assurance.
    Production facility. As defined by 10 CFR 110.2 of the Nuclear 
Regulatory Commission Regulations, production facility means any 
nuclear reactor or plant specially designed or used to produce special 
nuclear material through the irradiation of source material or special 
nuclear material, the separation of isotopes or the chemical 
reprocessing or irradiated source or special nuclear material.
    ``Program.'' (Cat 2, 4, and 5)--A sequence of instructions to carry 
out a process in, or convertible into, a form executable by an 
electronic computer.
    ``Proof test.'' (Cat 5)--On-line or off-line production screen 
testing that dynamically applies a prescribed tensile stress over a 0.5 
to 3 m length of fiber at a running rate of 2 to 5 m/s while passing 
between capstans approximately 150 mm in diameter. The ambient 
temperature is a nominal 293 K (20 deg. C) and relative humidity 40%.

    Note: Equivalent national standards for executing the ``proof 
test'' may be used.

    Publicly available information. Information that is generally 
accessible to the interested public in any form and, therefore, not 
subject to the EAR (See part 732 of the EAR).
    Publicly available technology and software. Technology and software 
that are already published or will be published; arise during, or 
result from fundamental research; are educational; or are included in 
certain patent applications (see Sec. 734.3(b)(3) of the EAR).
    ``Pulse compression.'' (Cat 6)--The coding and processing of a 
radar signal pulse of long time duration to one of short time duration, 
while maintaining the benefits of high pulse energy.
    ``Pulse duration.'' (Cat 6)--Duration of a ``laser'' pulse measured 
at Full Width Half Intensity (FWHI) levels.
    Purchaser. The person abroad who has entered into a transaction 
with the applicant to purchase an item for delivery to the ultimate 
consignee. A bank, freight forwarder, forwarding agent, or other 
intermediary is not a purchaser.
    ``Q-switched laser.'' (Cat 6)--A ``laser'' in which the energy is 
stored in the population inversion or in the optical resonator and 
subsequently emitted in a pulse.
    RWA. See Return Without Action.
    
[[Page 12934]]

    ``Radar frequency agility.'' (Cat 6)--Any technique that changes, 
in a pseudo-random sequence, the carrier frequency of a pulsed radar 
transmitter between pulses or between groups of pulses by an amount 
equal to or larger than the pulse bandwidth.
    ``Radar spread spectrum.'' (Cat 6)--Any modulation technique for 
spreading energy originating from a signal with a relatively narrow 
frequency band, over a much wider band of frequencies, by using random 
or pseudo-random coding.
    ``Range.'' (Cat 8)--Half the maximum distance a submersible vehicle 
can cover.
    Readable or readability. Readable and readability mean the quality 
of a group of letters or numerals being recognized as complete words or 
numbers.
    ``Real-time bandwidth.'' (Cat 3)--For ``dynamic signal analyzers'', 
the widest frequency range that the analyzer can output to display or 
mass storage without causing any discontinuity in the analysis of the 
input data. For analyzers with more than one channel, the channel 
configuration yielding the widest ``real-time bandwidth'' shall be used 
to make the calculation.
    ``Real-time Processing.'' (Cat 2 and 4)--The processing of data by 
a computer system providing a required level of service, as a function 
of available resources, within a guaranteed response time, regardless 
of the load of the system, when stimulated by an external event.
    Reasons for Control. Reasons for Control are: Anti-Terrorism (AT), 
Chemical & Biological Weapons (CB), Crime Control (CC), High 
Performance Computer (XP), Missile Technology (MT), National Security 
(NS), Nuclear Nonproliferation (NP), Regional Stability (RS), Short 
Supply (SS), and United Nations sanctions (UN). Items controlled within 
a particular ECCN may be controlled for more than one reason.
    Reexport. ``Reexport'' means an actual shipment or transmission of 
items subject to the EAR from one foreign country to another foreign 
country. For purposes of the EAR, the export or reexport of items 
subject to the EAR that will transit through a country or countries, or 
be transshipped in a country or countries to a new country, or are 
intended for reexport to the new country, are deemed to be exports to 
the new country. (See Sec. 734.2(b)of the EAR.) In addition, for 
purposes of satellites controlled by the Department of Commerce, the 
term ``reexport'' also includes the transfer of registration of a 
satellite or operational control over a satellite from a party resident 
in one country to a party resident in another country.
    Replacement license. An authorization by the Bureau of Export 
Administration revising the information, conditions, or riders stated 
on a license issued by BXA. See Sec. 750.7 of the EAR.
    ``Required.''-- As applied to ``software'', refers to only that 
portion of ``software'' that is peculiarly responsible for achieving or 
exceeding the control performance levels, characteristics or function. 
Such ``required'' ``software'' may be shared by different products. 
``Technology'' ``required'' for the ``development'', ``production'', or 
``use'' of a controlled product remains controlled even when applicable 
to a product controlled at a lower level (see the General Technology 
Note).
    ``Resolution.'' (Cat 2)--The least increment of a measuring device; 
on digital instruments, the least significant bit (Ref.: ANSI B-
89.1.12).
    Return Without Action (RWA). An application may be RWA'd for one of 
the following reasons:
    (a) The applicant has requested the application be returned;
    (b) A License Exception applies;
    (c) The items are not under Department of Commerce jurisdiction;
    (d) Required documentation has not been submitted with the 
application; or
    (e) The applicant cannot be reached after several attempts to 
request additional information necessary for processing of the 
application.
    ``Robot.'' (Cat 2 and 8)--A manipulation mechanism, which may be of 
the continuous path or of the point-to-point variety, may use 
``sensors'', and has all the following characteristics:
    (a) Is multifunctional;
    (b) Is capable of positioning or orienting material, parts, tools 
or special devices through variable movements in a three dimensional 
space;
    (c) Incorporates three or more closed or open loop servo-devices 
that may include stepping motors; and
    (d) Has ``user-accessible programmability'' by means of teach/
playback method or by means of an electronic computer that may be a 
programmable logic controller, i.e., without mechanical intervention.

    Note: This definition does not include the following devices:

    (a) Manipulation mechanisms that are only manually/teleoperator 
controllable;
    (b) Mixed sequence manipulation mechanisms that are automated 
moving devices, operating according to mechanically fixed programmed 
motions. The program is mechanically limited by fixed stops, such as 
pins or cams. The sequence of motions and the selection of paths or 
angles are not variable or changeable by mechanical, electronic or 
electrical means;
    (c) Mechanically controlled variable sequence manipulation 
mechanisms that are automated moving devices, operating according to 
mechanically fixed programmed motions. The program is mechanically 
limited by fixed, but adjustable stops, such as pins or cams. The 
sequence of motions and the selection of paths or angles are 
variable within the fixed program pattern. Variations or 
modifications of the program pattern (e.g., changes of pins or 
exchanges of cams) in one or more motion axes are accomplished only 
through mechanical operations;
    (d) Non-servo-controlled variable sequence manipulation 
mechanisms that are automated moving devices, operating according to 
mechanically fixed programmed motions. The program is variable, but 
the sequence proceeds only by the binary signal from mechanically 
fixed electrical binary devices or adjustable stops;
    (e) Stacker cranes defined as Cartesian coordinate manipulator 
systems manufactured as an integral part of a vertical array of 
storage bins and designed to access the contents of those bins for 
storage or retrieval.

    ``Rotary Atomization.'' (Cat 1)--A process to reduce a stream or 
pool of molten metal to droplets to a diameter of 500 micrometer or 
less by centrifugal force.
    ``Run-out.'' (out-of-true running) (Cat 2)--Radial displacement in 
one revolution of the main spindle measured in a plane perpendicular to 
the spindle axis at a point on the external or internal revolving 
surface to be tested (Ref.: ISO 230 Part 1-1986, paragraph 5.61).
    ``SDH.''--See ``synchronous digital hierarchy'' Sensors (Cat. 6)--
Detectors of a physical phenomenon, the output of which (after 
conversion into a signal that can be interpreted by a controller) is 
able to generate ``programs'' or modify programmed instructions or 
numerical program data. This includes ``sensors'' with machine vision, 
infrared imaging, acoustical imaging, tactile feel, inertial position 
measuring, optical or acoustic ranging or force or torque measuring 
capabilities.
    SNEC. See Subgroup on Nuclear Export Coordination.
    ``SONET.''--See ``synchronous optical network''.
    ``Scale factor.'' (gyro or accelerometer) (Cat 7)--The ratio of 
change in output to a change in the input intended to be measured. 
Scale factor is generally evaluated as the slope of the straight line 
that can be fitted by the method of least squares to input-output data 
obtained by varying the input cyclically over the input range.
    Schedule B numbers. The commodity numbers appearing in the current

[[Page 12935]]
edition of the Bureau of the Census publication, Schedule B Statistical 
Classification of Domestic and Foreign Commodities Exported from the 
United States. (See part 758 of the EAR for information on use of 
Schedule B numbers.)
    ``Settling time.'' (Cat 3)--The time required for the output to 
come within one-half bit of the final value when switching between any 
two levels of the converter.
    Shield. Chaired by the Department of State, the Shield primarily 
reviews applications involving items controlled for Chemical and 
Biological Weapons (CBW) reasons. The Shield also reviews applications 
involving items not controlled for CBW reasons, but destined for a 
country and/or end-use/end-user of concern. See Sec. 750.4 of the EAR.
    ``Signal analyzers.'' (Cat 3)--Apparatus capable of measuring and 
displaying basic properties of the single-frequency components of 
multi-frequency signals.
    ``Signal analyzers.'' (dynamic) (Cat 3)--(See ``Dynamic signal 
analyzers''.)
    ``Signal processing.'' (Cat 3, 4 and 5)--The processing of 
externally derived information-bearing signals by algorithms such as 
time compression, filtering, extraction, selection, correlation, 
convolution or transformations between domains (e.g., fast Fourier 
transform or Walsh transform).
    ``Simple educational devices.'' (Cat 3)--Devices designed for use 
in teaching basic scientific principles and demonstrating the operation 
of those principles in educational institutions.
    Single shipment. All items moving at the same time from one 
exporter to one consignee or intermediate consignee on the same 
exporting carrier, even if these items will be forwarded to one or more 
ultimate consignees. Items being transported in this manner shall be 
treated as a single shipment even if the items represent more than one 
order or are in separate containers.
    ``Software.'' (Cat: all)--A collection of one or more ``programs'' 
or ``microprograms'' fixed in any tangible medium of expression.
    ``Source code.'' (or source language) (Cat 4)--A convenient 
expression of one or more processes that may be turned by a programming 
system into equipment executable form (``object code'' (or object 
language)).
    ``Spacecraft.'' (Cat 7 and 9)--Active and passive satellites and 
space probes.
    ``Space qualified.'' (Cat 3 and 6)--Products designed, manufactured 
and tested to meet the special electrical, mechanical or environmental 
requirements for use in the launch and deployment of satellites or 
high-altitude flight systems operating at altitudes of 100 km or 
higher.
    Specially Designated National (SDN). Any person who is determined 
by the Secretary of the Treasury to be a specially designated national 
for any reason under regulations issued by the Office of Foreign Assets 
Control (see 31 CFR parts 500 through 590).
    Specially Designated Terrorist (STN). Any person who is determined 
by the Secretary of the Treasury to be a specially designated terrorist 
under notices or regulations issued by the Office of Foreign Assets 
Control (see 31 CFR chapter V).
    ``Specially designed.'' (MTCR context)--Equipment, parts, 
components or ``software'' that, as a result of ``development'', have 
unique properties that distinguish them for certain predetermined 
purposes. For example, a piece of equipment that is ``specially 
designed'' for use in a ``missile'' will only be considered so if it 
has no other function or use. Similarly, a piece of manufacturing 
equipment that is ``specially designed'' to produce a certain type of 
component will only be considered such if it is not capable of 
producing other types of components.
    ``Specific modulus.'' (Cat 1)--Young's modulus in pascals, 
equivalent to N/m\2\ divided by specific weight in N/m\3\, measured at 
a temperature of (296  2) K ((23  2) deg. C) 
and a relative humidity of (50  5)%.
    ``Specific tensile strength.'' (Cat 1)--Ultimate tensile strength 
in pascals, equivalent to N/m\2\ divided by specific weight in N/m\3\, 
measured at a temperature of (296  2) K ((23  
2) deg. C) and relative humidity of (50  5)%.
    ``Spectral efficiency.'' (Cat 5)--A figure of merit parametrized to 
characterize the efficiency of transmission system that uses complex 
modulation schemes such as QAM (quadrature amplitude modulation), 
Trellis coding, QSPK (Q-phased shift key), etc. It is defined as 
follows:
[GRAPHIC] [TIFF OMITTED] TR25MR96.013

    ``Splat Quenching.'' (Cat 1)--A process to ``solidify rapidly'' a 
molten metal stream impinging upon a chilled block, forming a flake-
like product.

    Note: ``Solidify rapidly'': solidification of molten material at 
cooling rates exceeding 1,000 K/sec.

    ``Spread spectrum.'' (Cat 5)--The technique whereby energy in a 
relatively narrow-band communication channel is spread over a much 
wider energy spectrum.
    ``Spread spectrum radar.'' (Cat 6)--(see ``Radar spread spectrum'')
    ``Sputtering.'' (Cat 4)--An overlay coating process wherein 
positively charged ions are accelerated by an electric field towards 
the surface of a target (coating material). The kinetic energy of the 
impacting ions is sufficient to cause target surface atoms to be 
released and deposited on the substrate.

    Note: Triode, magnetron or radio frequency sputtering to 
increase adhesion of coating and rate of deposition are ordinary 
modifications of the process.

    ``Stability.'' (Cat 7)--Standard deviation (1 sigma) of the 
variation of a particular parameter from its calibrated value measured 
under stable temperature conditions. This can be expressed as a 
function of time.
    ``Stored program controlled.'' (Cat 2, 3, and 5)--A control using 
instructions stored in an electronic storage that a processor can 
execute in order to direct the performance of predetermined functions.

    Note: Equipment may be ``stored program controlled'' whether the 
electronic storage is internal or external to the equipment.

    Subgroup on Nuclear Export Coordination (SNEC). Chaired by the 
Department of State, the SNEC primarily reviews applications involving 
items controlled for nuclear nonproliferation (NP) reasons. The SNEC 
also reviews applications involving items not controlled for NP 
reasons, but destined for a country and/or end-use/end-user of NP 
concern.
    Subject to the EAR. A term used in the EAR to describe those 
commodities, Software, technology, and activities over which the Bureau 
of Export Administration (BXA) exercises regulatory jurisdiction under 
the EAR (See Sec. 734.2(a) of the EAR).

[[Page 12936]]

    ``Substrate.'' (Cat 3)--A sheet of base material with or without an 
interconnection pattern and on which or within which ``discrete 
components'' or integrated circuits or both can be located.

    Note: ``Discrete component'': a separately packaged ``circuit 
element'' with its own external connections.

    ``Substrate blanks.'' (Cat 6)--Monolithic compounds with dimensions 
suitable for the production of optical elements such as mirrors or 
optical windows.
    ``Superalloys.'' (Cat 2 and 9)--Nickel-, cobalt-, or iron-base 
alloys having strengths superior to any alloys in the AISI 300 series 
at temperatures over 922 K (694 degrees C) under severe environmental 
and operating conditions.
    ``Superconductive.'' (Cat 1, 3, 6, and 8)--Materials, i.e., metals, 
alloys, or compounds that can lose all electrical resistance, i.e., 
that can attain infinite electrical conductivity and carry very large 
electrical currents without Joule heating.

    Note: The ``superconductive'' state of a material is 
individually characterized by a ``critical temperature'', a critical 
magnetic field that is a function of temperature, and a critical 
current density that is a function of both magnetic field and 
temperature.

    ``Super High Power Laser.'' (SHPL) (Cat 6)--A ``laser'' capable of 
delivering (the total or any portion of) the output energy exceeding 1 
kJ within 50 ms or having an average or CW power exceeding 20 kW.
    ``Superplastic forming.'' (Cat 1 and 2)--A deformation process 
using heat for metals that are normally characterized by low of 
elongation (less than 20%) at the breaking point as determined at room 
temperature by conventional tensile strength testing, in order to 
achieve elongations during processing that are at least 2 times those 
values.
    ``Swept frequency network analyzers.'' (Cat 3)--Involve the 
automatic measurement of equivalent circuit parameters over a range of 
frequencies, involving swept frequency measurement techniques, but not 
continuous wave point-to-point measurements.
    ``Switch fabric.'' (Cat 5)--That hardware and associated 
``software'' that provides the physical or virtual connection path for 
in-transit message traffic being switched.
    ``Synchronous digital hierarchy.'' (SDH) (Cat 5)--A digital 
hierarchy providing a means to manage, multiplex, and access various 
forms of digital traffic using a synchronous transmission format on 
different types of media. The format is based on the Synchronous 
Transport Module (STM) that is defined by CCITT Recommendation G.703, 
G.707, G.708, G.709 and others yet to be published. The first level 
rate of ``SDH'' is 155.52 Mbits/s.
    ``Synchronous optical network.'' (SONET) (Cat 5)--A network 
providing a means to manage, multiplex and access various forms of 
digital traffic using a synchronous transmission format on fiber 
optics. The format is the North America version of ``SDH'' and also 
uses the Synchronous Transport Module (STM). However, it uses the 
Synchronous Transport Signal (STS) as the basic transport module with a 
first level rate of 51.81 Mbits/s. The SONET standards are being 
integrated into those of ``SDH''.
    ``Systems tracks.'' (Cat 6)--Processed, correlated (fusion of radar 
target data to flight plan position) and updated aircraft flight 
position report available to the Air Traffic Control center 
controllers.
    ``Systolic array computer.'' (Cat 4)--A computer where the flow and 
modification of the data is dynamically controllable at the logic gate 
level by the user.
    ``Technology.'' (General Technology Note)--Specific information 
necessary for the ``development'', ``production'', or ``use'' of a 
product. The information takes the form of ``technical data'' or 
``technical assistance''. Controlled ``technology'' is defined in the 
General Technology Note and in the Commerce Control List (Supplement 
No. 1 to part 774 of the EAR).

    N.B.: Technical assistance--May take forms such as instruction, 
skills training, working knowledge, consulting services.

    Note: ``Technical assistance'' may involve transfer of 
``technical data''.

    ``Technical data.''--May take forms such as blueprints, plans, 
diagrams, models, formulae, tables, engineering designs and 
specifications, manuals and instructions written or recorded on other 
media or devices such as disk, tape, read-only memories.
    ``Telecommunication transmission equipment.'' (Cat 5)--
    (a) Categorized as follows, or combinations thereof:
    (1) Radio equipment (e.g., transmitters, receivers and 
transceivers);
    (2) Line terminating equipment;
    (3) Intermediate amplifier equipment;
    (4) Repeater equipment;
    (5) Regenerator equipment;
    (6) Translation encoders (transcoders);
    (7) Multiplex equipment (statistical multiplex included);
    (8) Modulators/demodulators (modems);
    (9) Transmultiplex equipment (see CCITT Rec. G701);
    (10) ``Stored program controlled'' digital crossconnection 
equipment;
    (11) ``Gateways'' and bridges;
    (12) ``Media'' access units; and
    (b) Designed for use in single or multi-channel communication via:
    (1) Wire (line);
    (2) Coaxial cable;
    (3) Optical fiber cable;
    (4) Electromagnetic radiation.
    ``Terminal interface equipment.'' (Cat 4)--Equipment at which 
information enters or leaves the telecommunication systems, e.g., 
telephone, data device, computer, facsimile device.
    ``Three dimensional Vector Rate.'' (Cat 4)--The number of vectors 
generated per second that have 10 pixel poly line vectors, clip tested, 
randomly oriented, with either integer or floating point X-Y-Z 
coordinate values (whichever produces the maximum rate).
    ``Tilting spindle.'' (Cat 2)--A tool-handling spindle that alters, 
during the machining process, the angular position of its center line 
with respect to any other axis.
    ``Time constant.'' (Cat 6)--The time taken from the application of 
a light stimulus for the current increment to reach a value of 1-1/e 
times the final value (i.e., 63% of the final value).
    ``Total digital transfer rate.'' (Cat 5)--The number of bits, 
including line coding, overhead and so forth per unit time passing 
between corresponding equipment in a digital transmission system. (See 
also ``digital transfer rate''.)
    Transfer. A transfer to any person of items subject to the EAR 
either within the United States or outside of the United States with 
the knowledge or intent that the items will be shipped, transferred, or 
transmitted to an unauthorized recipient.
    ``Transfer laser.'' (Cat 6)--A ``laser'' in which the lasting 
species is excited through the transfer of energy by collision of a 
non-lasing atom or molecule with a lasing atom or molecule species.
    ``Tunable.'' (Cat 6)--The ability of a ``laser'' to produce a 
continuous output at all wavelengths over a range of several ``laser'' 
transitions. A line selectable ``laser'' produces discrete wavelengths 
within one ``laser'' transition and is not considered ``tunable''.
    ``Two dimensional Vector Rate.'' (Cat 4)--The number vectors 
generated per second that have 10 pixel poly line vectors, clip tested, 
randomly oriented, with either integer or floating point X-Y coordinate 
values (whichever produces the maximum rate).

[[Page 12937]]

    U.S. exporter. That person who, as the principal party in interest 
in the export transaction, has the power and responsibility for 
determining and controlling the sending of the items out of the United 
States. (See also ``applicant''.)
    U.S. person. (a) For purposes of Sec. 744.6 of the EAR, the term 
U.S. person includes:
    (1) Any individual who is a citizen of the United States, a 
permanent resident alien of the United States, or a protected 
individual as defined by 8 U.S.C. 1324b(a)(3);
    (2) Any juridical person organized under the laws of the United 
States or any jurisdiction within the United States, including foreign 
branches; and
    (3) Any person in the United States.
    (b) See also parts 746 and 760 of the EAR for definitions of ``U.S. 
person'' that are specific to those parts.
    Ultimate consignee. The person located abroad who is the true party 
in interest in actually receiving the export or reexport for the 
designated end-use. (See Sec. 748.4(b)(5) of the EAR.)
    United States. Unless otherwise stated, the 50 States, including 
offshore areas within their jurisdiction pursuant to section 3 of the 
Submerged Lands Act (43 U.S.C. 1311), the District of Columbia, Puerto 
Rico, and all territories, dependencies, and possessions of the United 
States, including foreign trade zones established pursuant to 19 U.S.C. 
81A-81U, and also including the outer continental shelf, as defined in 
section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1331(a)).
    United States airline. Any citizen of the United States who is 
authorized by the U.S. Government to engage in business as an airline. 
For purposes of this definition, a U.S. citizen is:
    (a) An individual who is a citizen of the United States or one of 
its possessions; or
    (b) A partnership of which each member is such an individual; or
    (c) A corporation or association created or organized under the 
laws of the United States, or of any State, Territory, or possession of 
the United States, of which the president and two-thirds of the board 
of directors and other managing officers thereof are such individuals 
and in which at least 75 percent of the voting interest is owned or 
controlled by persons who are citizens of the United States or of one 
of its possessions.
    ``Usable in or Capable of.'' (MTCR context)--Equipment, parts, 
components or ``software'' that are suitable for a particular purpose. 
There is no need for the equipment, parts, components or ``software'' 
to have been configured, modified or specified for the particular 
purpose. For example, any military specification memory circuit would 
be ``capable of'' operation in a guidance system.
    ``Use.'' (General Technology Note)--Operation, installation 
(including on-site installation), maintenance (checking), repair, 
overhaul and refurbishing.
    ``User-accessible programmability.'' (Cat 4, 5, and 6)--The 
facility allowing a user to insert, modify, or replace ``programs'' by 
means other than:
    (a) A physical change in wiring or interconnections; or
    (b) The setting of function controls including entry of parameters.
    Utilization facility. (a) As defined by 10 CFR 110.2 of the Nuclear 
Regulatory Commission Regulations, utilization facility means a nuclear 
reactor, other than one that is a production facility, any of the 
following major components of a nuclear reactor: Pressure vessels 
designed to contain the core of a nuclear reactor, other than one that 
is a production facility, and the following major components of a 
nuclear reactor:
    (1) Primary coolant pumps;
    (2) Fuel charging or discharging machines; and
    (3) Control rods.
    (b) Utilization facility does not include the steam turbine 
generator portion of a nuclear power plant.
    ``Vacuum Atomization.'' (Cat 1)--A process to reduce a molten 
stream of metal to droplets of a diameter of 500 micrometer or less by 
the rapid evolution of a dissolved gas upon exposure to a vacuum.
    ``Variable geometry airfoils.'' (Cat 7)--Use trailing edge flaps or 
tabs, or leading edge slats or pivoted nose droop, the position of 
which can be controlled in flight.
    ``Vector Rate.'' (Cat 4)--See: ``Two dimensional Vector Rate''; 
``Three dimensional Vector Rate''.
    You. Any person, including a natural person, including a citizen of 
the United States or any foreign country; any firm; any government, 
government agency, government department, or government commission; any 
labor union; any fraternal or social organization; and any other 
association or organization whether or not organized for profit.

PART 774--THE COMMERCE CONTROL LIST

Sec.
774.1  Introduction.
774.2  [Reserved.]
Supplement No. 1 to Part 774--The Commerce Control List
Supplement No. 2 to Part 774--General Technology and Software Notes
Supplement No. 3 to Part 774--Cross-Reference List

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


Sec. 774.1  Introduction.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. The Bureau of Export Administration (BXA) 
maintains the Commerce Control List (CCL) that includes items 
(commodities, software, and technology) subject to the authority of 
BXA. The CCL does not include those items exclusively controlled for 
export by another department or agency of the U.S. Government. In 
instances where other agencies administer controls over related items, 
entries in the CCL will contain a reference to these controls. Those 
items subject to the EAR but not specified on the CCL are identified by 
the designator ``EAR99''. See Sec. 734.2(a) of the EAR for items that 
are ``subject to the EAR''. You should consult part 738 of the EAR for 
an explanation of the organization of the CCL and its relationship to 
the Country Chart.
    The CCL is contained in Supplement No. 1 to this part, and 
Supplement No. 2 to this part contains the General Technology and 
Software Notes relevant to entries contained in the CCL.

Supplement No. 1 to Part 774--The Commerce Control List

Category 0--Nuclear Materials, Facilities & Equipment and 
Miscellaneous

A. Equipment, Assemblies and Components


0A018  Items on the International Munitions List.

License Requirements

    Reason for Control: NS, RS, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
RS applies to 0A918.c..................  RS Column 2.                   
AT applies to entire entry.............  AT Column 1.                   
UN applies to entire entry.............  Rwanda.                        
------------------------------------------------------------------------

License Exceptions

    LVS: $5000 for 0A918.a and b; $3000 for 0A918.c; $1500 for 
0A918.d through .f; and $0 for entire entry for Rwanda
    GBS: N/A
    CIV: N/A
    List of Items Controlled
    Unit: 0A918.a, .b, and .c in $ value; 0A18.d, .e, and .f in 
number
    Related Controls: N/A
    
[[Page 12938]]

    Related Definitions: N/A
    Items:

    a. Power controlled searchlights and control units therefor, 
designed for military use, and equipment mounting such units; and 
specially designed parts and accessories therefor;
    b. Construction equipment built to military specifications, 
specially designed for airborne transport; and specially designed 
parts and accessories therefor;
    c. Specially designed components and parts for ammunition, 
except cartridge cases, powder bags, bullets, jackets, cores, 
shells, projectiles, boosters, fuses and components, primers, and 
other detonating devices and ammunition belting and linking machines 
(all of which are subject to the export licensing authority of the 
U.S. Department of State, Office of Defense Trade Controls. (See 22 
CFR parts 120 through 130.)
    d. Bayonets;
    e. Muzzle-loading (black powder) firearms;

    Note: Antique small arms dating prior to 1890 and their 
reproductions are not controlled by this ECCN 0A918.

    f. Military helmets, except:
    f.1. Conventional steel helmets other than those described by 
0A918f.2 below.
    f.2. Helmets, made of any material, equipped with communications 
hardware, optional sights, slewing devices or mechanisms to protect 
against thermal flash or lasers.

    Note: Helmets described in 0A918.f.1 are controlled by 0A988. 
Helmets described in 0A918.f.2 are controlled by the U.S. Department 
of State, Office of Defense Trade Controls (See 22 CFR part 121, 
Category X).

0A980  Horses by sea.

License Requirements

    Reason for Control: SS

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
SS applies to entire entry. For                                         
 licensing requirements (and possible                                   
 License Exceptions), proceed directly                                  
 to part 754 of the EAR. The Commerce                                   
 Country Chart is not designed to                                       
 determine licensing requirements for                                   
 items controlled for SS reasons.                                       
------------------------------------------------------------------------

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:  The list of items controlled is contained in the ECCN 
heading.


0A982  Saps; thumbcuffs, leg irons, shackles, and handcuffs; straight 
jackets, plastic handcuffs, police helmets and shields; and parts and 
accessories, n.e.s.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


0A983  Specially designed implements of torture and thumbscrews; and 
parts and accessories, n.e.s.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry. A license                                   
 is required for ALL destinations,                                      
 regardless of end-use. Accordingly, a                                  
 column specific to this control does                                   
 not appear on the Commerce Country                                     
 Chart. (See part 742 of the EAR for                                    
 additional information.).                                              
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    The list of items controlled is contained in the ECCN heading.


0A984  Shotguns, barrel length 18 inches (45.72 cm) inches or over; 
buckshot shotgun shells; except equipment used exclusively to treat or 
tranquilize animals, and except arms designed solely for signal, flare, 
or saluting use; and parts, n.e.s.

License Requirements

    Reason for Control: CC, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to shotguns with a barrel     CC Column 1.                   
 length over 18 in. (45.72 cm) but less                                 
 than 24 in. (60.96 cm) or buckshot                                     
 shotgun shells controlled by this                                      
 entry, regardless of end-user.                                         
CC applies to shotguns with a barrel     CC Column 2.                   
 length over 24 in. (60.96 cm),                                         
 regardless of end-user.                                                
CC applies to shotguns with a barrel     CC Column 3.                   
 length over 24 in. (60.96 cm) if for                                   
 sale or resale to police or law                                        
 enforcement.                                                           
UN applies to entire entry.............  Rwanda.                        
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: This entry does not control shotguns with a 
barrel length of less than 18 inches (45.72 cm). See 22 CFR part 
121, Category I. These items are subject to the export licensing 
authority of the Department of State, Office of Defense Trade 
Controls.
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


0A985  Optical sighting devices for shotguns controlled by 0A984; 
discharge type arms (for example, stun guns, shock batons, electric 
cattle prods, immobilization guns and projectiles, etc.) except 
equipment used exclusively to treat or tranquilize animals, and except 
arms designed solely for signal, flare, or saluting use; and parts, 
n.e.s.

License Requirements

    Reason for Control: CC, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
UN applies to entire entry.............  Rwanda.                        
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled:

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


0A986  Shotgun shells, except buckshot shotgun shells, and parts.

License Requirements

    Reason for Control: UN
    UN applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Libya, North Korea and Rwanda. The 
Commerce Country Chart is not designed to determine licensing 
requirements for this entry. See part 746 of the EAR for additional 
information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 746.7 of the EAR for additional information on 
this requirement.)

[[Page 12939]]


License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


0A988  Conventional military steel helmets as described by 0A018.f.1; 
and machetes.

License Requirements

    Reason for Control: UN

    UN applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Libya, North Korea and Rwanda. The 
Commerce Country Chart is not designed to determine licensing 
requirements for this entry. See part 746 of the EAR for additional 
information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See to Sec. 746.7 of the EAR for additional information on 
this requirement.)

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

B. Test, Inspection and Production Equipment


0B001  Valves, specially designed or prepared for gaseous diffusion 
separation process, that are wholly made of or lined with aluminum, 
aluminum alloys, nickel, or alloy containing 60 percent by weight or 
more nickel, 40 mm (1.6 in.) or more in diameter, with bellows seals, 
and specially designed parts and components therefor.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: 1.) This CCL entry controls only a subset of 
the items contained on the corresponding EU List number (e.g., 
0B001.b). The items not included in this CCL entry are subject to 
the export licensing authority of the Nuclear Regulatory Commission 
(see 10 CFR part 110.) 2.) Specially designed or prepared valves for 
gaseous diffusion separation process are also subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 
CFR part 110.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


0B003  Plants for the production of uranium hexaflouride (UF6) and 
specially designed or prepared equipment (including UF6 
purification equipment), and specially designed parts and accessories 
therefor.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: This entry does not control nuclear plants 
(i.e., fuel fabrication facilities, enrichment facilities, 
reprocessing facilities, and heavy water production facilities). 
Nuclear plants are subject to the export licensing authority of the 
Nuclear Regulatory Commission. (See 10 CFR part 110.)
    Related Definitions: N/A
    Items:

    a. Plants for the production of UF6;
    b. Equipment and components, as follows, specially designed or 
prepared for UF6 production:
    b.1. Fluorination and hydrofluorination screw and fluid bed 
reactors and flame towers;
    b.2. Distillation equipment for the purification of UF6.


0B008  Reactor and power plant simulators and analytical models for 
reactor and power plant simulators, models or mock-ups.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Nuclear equipment is also subject to the 
export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials


0C006  Nickel powder and porous nickel metal.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilogram
    Related Controls: Nickel powders which are specially prepared 
for the manufacture of gaseous diffusion barriers are subject to the 
export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
    Related Definitions: N/A
    Items:

    a. Powder with a nickel purity content of 99.0% or greater and a 
mean particle size of less than 10 micrometers measured by the 
American Society for Testing and Materials (ASTM) B 330 standard, 
except filamentary nickel powders;
    b. Porous nickel metal produced from materials controlled by 
0C006.a except single porous nickel metal sheets not exceeding 1000 
cm2 per sheet.

    Note: 0C006.b controls porous metal formed by compacting and 
sintering the material controlled by 0C006.a to form a metal 
material with fine pores interconnected throughout the structure.

D. Software


0D001  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of items controlled by 
0B001, 0B003, 0B008 or 0C006.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 12940]]


E. Technology


0E001  ``Technology'' according to the General Technology Note for the 
``development'', ``production'' or ``use'' of items controlled by 
0B001, 0B003, 0B008 or 0C006.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


0E018  ``Technology'' for the ``development'', ``production'', or 
``use'' of items controlled by 0A018.b through 0A018.e.

License Requirements

    Reason for Control: NS, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
UN applies to entire entry.............  Rwanda.                        
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


0E984  ``Technology'' for the ``development'' or ``production'' of 
shotguns controlled by 0A984 and buckshot shotgun shells.

License Requirements

    Reason for Control: CC, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to ``technology'' for         CC Column 1.                   
 shotguns with a barrel length over 18                                  
 in. (45.72 cm) but less than 24 in.                                    
 (60.96 cm) and shotgun shells,                                         
 regardless of end-user.                                                
CC applies to ``technology'' for         CC Column 2.                   
 shotguns with a barrel length over 24                                  
 in. (60.96 cm), regardless of end-user.                                
CC applies to ``technology'' for         CC Column 3.                   
 shotguns with a barrel length over 24                                  
 in. (60.96 cm) if for sale or resale                                   
 to police or law enforcement.                                          
UN applies to entire entry.............  Rwanda.                        
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins

A. Equipment, Assemblies and Components


1A001  Components made from fluorinated compounds.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Seals, gaskets, sealants or fuel bladders specially designed 
for aircraft or aerospace use made from more than 50% of any of the 
materials controlled by 1C009.b or .c;
    b. Piezoelectric polymers and copolymers made from vinylidene 
fluoride:
    b.1. In sheet or film form; and
    b.2. With a thickness exceeding 200 micrometer;
    c. Seals, gaskets, valve seats, bladders or diaphragms made from 
fluoroelastomers containing at least one vinylether monomer, 
specially designed for aircraft, aerospace or missile use.


1A002  ``Composite'' structures or laminates.

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to ``composite'' structures   MT Column 1.                   
 that are specially designed for                                        
 missile applications (including                                        
 specially designed subsystems and                                      
 components).                                                           
NP applies to 1A002.b..................  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definition: This entry does not control ``composite'' 
structures or laminates made from epoxy resin impregnated carbon 
``fibrous or filamentary materials'' for the repair of aircraft 
structures of laminates, provided that the size does not exceed one 
square meter (1 m2).
    Items:

    a. Having an organic ``matrix'' and made from materials 
controlled by 1C010.c, .d or .e; or
    b. Having a metal or carbon ``matrix'' and made from:
    b.1. Carbon ``fibrous and filamentary materials'' with:
    b.1.a. A ``specific modulus'' exceeding 10.15 x 106 m; and
    b.1.b. A ``specific tensile strength'' exceeding 17.7 x 104 
m; or
    b.2. Materials controlled by 1C010.c.

Technical Notes

    1. Specific modulus: Young's modulus in pascals, equivalent to 
N/m2 divided by specific weight in N/m3, measured at a 
temperature of (296  2) K ((23  2) deg. C) 
and a relative humidity of (50  5)%.
    2. Specific tensile strength: ultimate tensile strength in 
pascals, equivalent to N/m2 divided by specific weight in N/
m3, measured at a temperature of (296  2) K ((23 
 2) deg. C) and a relative humidity of (50 # 5)%.


1A003  Manufactures of non-fluorinated polymeric substances controlled 
by 1C008.a, in film, sheet, tape or ribbon form.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $200
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    
[[Page 12941]]

    Items:

    a. With a thickness exceeding 0.254 mm; or
    b. Coated or laminated with carbon, graphite, metals or magnetic 
substances.


1A102  Resaturated pyrolized carbon-carbon materials designed for 
systems controlled by 9A004.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: 1.) See 9A110 for controls on ``composite'' 
structures or laminates usable in missile systems. 2.) The 
corresponding EU number contains a reference to 9A104. Items 
controlled by the EU under 9A104 are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls (see 22 CFR part 121).
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1A202  ``Composite'' structures, other than those controlled by 1A002, 
in the form of tubes with an inside diameter of between 75 mm and 400 
mm made with ``fibrous or filamentary materials'' controlled by 1C010.a 
or .b or 1C210.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1A225  Platinized catalysts specially designed or prepared for 
promoting the hydrogen isotope exchange reaction between hydrogen and 
water for the recovery of tritium from heavy water or for the 
production of heavy water.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1A226  Specialized packings for use in separating heavy water from 
ordinary water and made of phosphor bronze mesh (chemically treated to 
improve wettability) and designed for use in vacuum distillation 
towers.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1A227  High density (lead glass or other) radiation shielding windows 
greater than 0.09 m2 on cold area and with a density greater than 
3 g/cm3 and a thickness of 100 mm or greater; and specially 
designed frames therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Nuclear equipment is also subject to the 
export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1A290  Depleted uranium (any uranium containing less than 0.711% of the 
isotope U-235) in shipments of more than 1,000 kilograms in the form of 
shielding contained in X-ray units, radiographic exposure or 
teletherapy devices, radioactive thermoelectric generators, or 
packaging for the transportation of radioactive materials.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: 1.) This entry does not control depleted 
uranium in fabricated forms for use in munitions. See 22 CFR part 
121 for depleted uranium subject to the export licensing authority 
of the U.S. Department of State, Office of Defense Trade Controls. 
2.) All forms of depleted uranium not specifically described in this 
entry, or in the above note, are subject to the export licensing 
authority of the Nuclear Regulatory Commission. (See 10 CFR part 
110.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1A984  Chemical agents, including tear gas formulation containing 1 
percent or less of orthochlorobenzalmalononitrile (CS), or 1 percent or 
less of chloroacetophenone (CN), except in individual containers with a 
net weight of 20 grams or less; smoke bombs; non-irritant smoke flares, 
canisters, grenades and charges; other pyrotechnic articles having dual 
military and commercial use; and fingerprinting powders, dyes and inks.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 12942]]



1A988   Bulletproof and bullet resistant vests.

License Requirements

    Reason for Control: UN

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
UN applies to entire entry. A license                                   
 is required for items controlled by                                    
 this entry to Cuba, Libya, North Korea                                 
 and Rwanda. The Commerce Country Chart                                 
 is not designed to determine licensing                                 
 requirements for this entry. See part                                  
 746 of the EAR for additional                                          
 information.                                                           
------------------------------------------------------------------------

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of the Treasury, Office of Foreign Assets 
Control. (See Sec. 746.7 of the EAR for additional information on 
this requirement.)

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: Bulletproof and bullet resistant vests (body 
armor) are also subject to the export licensing authority of the 
U.S. Department of State, Office of Defense Trade Controls. (See 22 
CFR 121.1, Category X.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

B. Test, Inspection and Production Equipment


1B001   Equipment for the ``production'' of fibers, prepregs, preforms 
or ``composites'' controlled by 1A002 or 1C010, and specially designed 
components and accessories therefor.

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to entire entry EXCEPT        MT Column 1.                   
 1B001.d.4 and .f.                                                      
NP applies to filament winding machines  NP Column 1.                   
 described in 1B001.a that are capable                                  
 of winding cylindrical rotors having a                                 
 diameter between 75 mm (3 in) and 400                                  
 mm (16 in) and lengths of 600 mm (24                                   
 in) or greater; AND coordinating and                                   
 programming controls and precision                                     
 mandrels for these filament winding                                    
 machines.                                                              
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A for 1B001.a; $5000 for all other items
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Filament winding machines of which the motions for 
positioning, wrapping and winding fibers are coordinated and 
programmed in three or more axes, specially designed for the 
manufacture of ``composite'' structures or laminates from ``fibrous 
and filamentary materials'';
    b. Tape-laying or tow-placement machines of which the motions 
for positioning and laying tape, tows or sheets can be coordinated 
and programmed in two or more axes, specially designed for the 
manufacture of ``composite'' airframe or ``missile'' structures;
    c. Multi-directional, multidimensional weaving machines or 
interlacing machines, including adapters and modification kits, for 
weaving, interlacing or braiding fibers to manufacture ``composite'' 
structures, except textile machinery not modified for the above end-
uses;
    d. Equipment specially designed or adapted for the 
``production'' of ``fibrous or filamentary materials''; as follows:
    d.1. Equipment for converting polymeric fibers (such as 
polyacrylonitrile, rayon, pitch or polycarbosilane) into carbon 
fibers or silicon carbide fibers, including special equipment to 
strain the fiber during heating;
    d.2. Equipment for the chemical vapor deposition of elements or 
compounds on heated filamentary substrates to manufacture silicon 
carbide fibers;
    d.3. Equipment for the wet-spinning of refractory ceramics (such 
as aluminum oxide);
    d.4. Equipment for converting aluminum containing precursor 
fibers into alumina fibers by heat treatment;
    e. Equipment for producing prepregs controlled by 1C010.e by the 
hot melt method;
    f. Non-destructive inspection equipment capable of inspecting 
defects three dimensionally, using ultrasonic or X-ray tomography 
and specially designed for ``composite'' materials;


1B002   Systems and components therefor specially designed for 
producing metal alloys, metal alloy powder or alloyed materials 
controlled by 1C002.a.2, 1C002.b, or 1C002.c.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1B003   Tools, dies, molds or fixtures, for ``superplastic forming'' or 
``diffusion bonding'' titanium or aluminum or their alloys, specially 
designed for the manufacture of equipment described in this entry.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; components in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Airframe or aerospace structures;
    b. Aircraft or aerospace engines; or
    c. Specially designed components for those structures or 
engines.


1B018   Equipment on the International Munitions List.

License Requirements

    Reason for Control: NS, MT, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to equipment for the          MT Column 1.                   
 ``production'' of rocket propellants.                                  
RS applies to 1B018.a..................  RS Column 2.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000 for 1B018.a for countries WITHOUT an ``X'' in RS 
Column 2 on the Country Chart contained in Supplement No. 1 to part 
738 of the EAR; $5000 for 1B018.b
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Equipment for the ``production'' of military explosives and 
solid propellants.
    a.1. Complete installations;
    a.2. Specialized components (for example, dehydration presses; 
extrusion presses for the extrusion of small arms, cannon and rocket

[[Page 12943]]
propellants; cutting machines for the sizing of extruded 
propellants; sweetie barrels (tumblers) 6 feet and over in diameter 
and having over 500 pounds product capacity; and continuous mixers 
for solid propellants); or
    a.3. Nitrators, continuous types; and
    a.4. Specially designed parts and accessories therefor.
    b. Environmental chambers capable of pressures below (10-4) 
Torr, and specially designed components therefor.


1B101   Equipment, other than that controlled by 1B001, for the 
production of structural composites and specially designed components 
and accessories thereof.

License Requirements

    Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
NP applies to 1B101.a only.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: Components and accessories controlled by 
this entry include moulds, mandrels, dies, fixtures and tooling for 
the preform processing, curing, casting, sintering or bonding of 
composite structures, laminates and manufactures thereof.
    Items:

    a. Filament winding machines, of which the motions for 
positioning, wrapping and winding fibers can be coordinated and 
programmed in three or more axes, designed for the manufacture of 
``composite'' structures or laminates from ``fibrous or filamentary 
materials''.
    b. Tape-laying machines, of which the motions for positioning 
and laying tape or sheets can be coordinated and programmed in two 
or more axes, designed for the manufacture of ``composite'' airframe 
or ``missile'' structures.
    c. Equipment designed or modified for the ``production'' of 
``fibrous or filamentary materials'', as follows:
    c.1. Equipment for converting polymeric fibers (such as 
polyacrylonitrile, rayon, or polycarbosilane) including special 
equipment to strain the fiber during heating;
    c.2. Equipment for the chemical vapor deposition of elements or 
compounds on heated filament substrates; and
    c.3. Equipment for the wet-spinning of refractory ceramics (such 
as aluminum oxide).
    d. Equipment designed or modified for special fiber surface 
treatment or for producing prepregs and preforms, not controlled by 
9A110.

    Note: Equipment covered by 1B101.d includes but is not limited 
to rollers, tension stretchers, coating equipment, cutting 
equipment, and clicker dies.


1B115  Equipment for the ``production'', handling and acceptance 
testing of propellants or propellant constituents specified in 1C115.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; components in $ value
    Related Controls: 1.) For other equipment for ``production'', 
handling, mixing, curing, casting, pressing, machining, extruding or 
acceptance testing of solid propellants or propellant constituents, 
including but not limited to: equipment for the ``production'' of 
atomized or spherical metallic powder in a controlled environment; 
and fluid energy mills for grinding or milling ammonium perchlorate, 
RDX, or HMX; 2.) Equipment for ``production'', handling, or 
acceptance testing of liquid propellants or propellant constituents; 
and 3.) Specially designed components for the items described in 
1B115.a is subject to the export licensing authority of the 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121.)
    Related Definitions: N/A
    Items:

    a. Batch mixers and continuous mixers, as follows, capable of 
mixing solid propellants or propellant constituents under vacuum in 
the range from 0 kPa to 13.326 kPa, and with temperature control 
capability of the mixing chamber:
    a.1. Batch mixers having:
    a.1.a. A total volumetric capacity of 110 liters (30 gallons) or 
more; and
    a.1.b. At least one mixing/kneading shaft mounted off center;
    a.2. Continuous mixers having:
    a.2.a. Two or more mixing/kneading shafts; and
    a.2.b. Capability to open the mixing chamber.


1B116  Specially designed nozzles for producing pyrolitically derived 
materials formed on a mold, mandrel or other substrate from precursor 
gases that decompose in the 1573 K (1300 deg. C) to 3,173 K (2900 deg. 
C) temperature range at pressures of 130 Pa to 20 kPa.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1B201  Filament winding machines, other than those specified in 1B001 
or 1B101, in which the motions for positioning, wrapping, and winding 
fibers are coordinated and programmed in two or more axes, specially 
designed to fabricate ``composite'' structures or laminates from 
``fibrous and filamentary materials'' and capable of winding 
cylindrical rotors of diameters between 75 mm (3 in.) and 400 mm (16 
in.) and lengths of 600 mm (24 in.) or greater; coordinating and 
programming controls therefor; and precision mandrels therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1B225  Electrolytic cells for fluorine production with a production 
capacity greater than 250 g of fluorine per hour.

License Requirements

    Reason for Control: NS, NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 12944]]



1B226  Electromagnetic isotope separators designed for, or equipped 
with, single or multiple ion sources capable of providing a total ion 
beam current of 50 mA or greater.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Isotope separators specially designed or 
prepared for separating uranium isotopes are subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 
CFR part 110.)
    Related Definitions: This entry controls; (a) separators capable 
of enriching stable isotopes; and, (b) seperators with the ion 
sources and collectors both in the magnetic field and those 
configurations in which they are external to the field.
    Items: The list of items controlled is contained in the ECCN 
heading.


1B227  Ammonia synthesis converters or ammonia synthesis units in which 
the synthesis gas (nitrogen and hydrogen) is withdrawn from an ammonia/
hydrogen high-pressure exchange column and the synthesized ammonia is 
returned to that column.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1B228  Hydrogen-cryogenic distillation columns having all of the 
following characteristics.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Heavy water production equipment is also 
subject to the export licensing authority of the Nuclear Regulatory 
Commission. (See 10 CFR part 110.)
    Related Definitions: N/A
    Items:

    a. Designed to operate at internal temperatures of 35 K 
(-238 deg. C) or less;
    b. Designed to operate at internal pressure of 0.5 to 5 Mpa (5 
to 50 atmospheres);
    c. Constructed of fine-grain stainless steels of the 300 series 
with low sulfur content or equivalent cryogenic and H2-
compatible materials; and
    Note: Fine-grain stainless steels in this ECCN are defined to be 
fine-grain austenitic stainless steels with an ASTM (or equivalent 
standard) grain size number of 5 or greater.
    d. With internal diameters of 1 m or greater and effective 
lengths of 5 m or greater.


1B229  Water-hydrogen sulfide exchange tray columns constructed from 
fine carbon steel with a diameter of 1.8 m (6 ft) or greater that can 
operate at a nominal pressure of 2 MPa (300 psi) or greater, and 
internal contactors therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: (1.) This entry does not control columns 
specially designed or prepared for the production of heavy water 
controlled on the NSG Trigger List (INFCIRC/254/part 2). See 10 CFR 
part 110 for heavy water production equipment subject to the export 
licensing authority of the Nuclear Regulatory Commission.
    Related Definition: (1.) 1B229 includes internal contactors of 
the columns are segmented trays with an effective assembled diameter 
of 1.8 m (6 ft.) or greater, are designed to facilitate 
countercurrent contacting and constructed of materials resistant to 
corrosion by hydrogen sulfide/water mixtures. These may be sieve 
trays, valve trays, bubble cap trays or turbogrid trays. (2.) Fine 
carbon steel in this entry is defined to be steel with the 
austenitic ASTM (or equivalent standard) grain size number of 5 or 
greater. (3.) Materials resistant to corrosion by hydrogen sulfide/
water mixtures in this entry are defined to be stainless steels with 
a carbon content of 0.03% or less.
    Items: The list of items controlled is contained in the ECCN 
heading.


1B230  Pumps circulating solutions of diluted or concentrated potassium 
amide catalyst in liquid ammonia (KNH2/NH3) having all of the 
following characteristics.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Heavy water production equipment is also 
subject to the export licensing authority of the Nuclear Regulatory 
Commission. (See 10 CFR part 110.)
    Related Definitions: N/A
    Items:

    a. Airtight (i.e., hermetically sealed);
    b. For concentrated potassium amide solutions (1% or greater), 
operating pressure of 1.5 to 60 MPa (15 to 600 atmospheres [atm]); 
or for dilute potassium amide solution (less than 1%), operating 
pressure of 20 to 60 MPa (200 to 600 atm); and
    c. A capacity greater than 8.5 m3/h (5 cubic feet per 
minute).


1B231  Tritium facilities, plants and equipment.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: This entry does not control tritium, tritium 
compounds, and mixtures containing tritium, or products or devices 
thereof. See 10 CFR part 110 for tritium subject to the export 
licensing authority of the Nuclear Regulatory Commission.
    Related Definitions: N/A
    Items:

    a. Facilities or plants for the production, recovery, 
extraction, concentration, or handling of tritium;
    b. Equipment for tritium facilities or plants, as follows:
    b.1. Hydrogen or helium refrigeration units capable of cooling 
to 23 K (-250 deg.C) or less,

[[Page 12945]]
with heat removal capacity greater than 150 watts; or
    b.2. Hydrogen isotope storage and purification systems using 
metal hydrides as the storage, or purification medium.


1B232  Turboexpanders or turboexpander-compressor sets designed for 
operation below 35K and a throughput of hydrogen gas of 1000 kg/hr or 
greater.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials


1C001  Materials specially designed for use as absorbers of 
electromagnetic waves, or intrinsically conductive polymers.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Materials for absorbing frequencies exceeding 2 x 108 Hz 
but less than 3 x 1012 Hz, except materials as follows:
    a.1. Hair type absorbers, constructed of natural or synthetic 
fibers, with non-magnetic loading to provide absorption;
    a.2. Absorbers having no magnetic loss and whose incident 
surface is non-planar in shape, including pyramids, cones, wedges 
and convoluted surfaces;
    a.3. Planar absorbers:
    a.3.a. Made from:
    a.3.a.1. Plastic foam materials (flexible or non-flexible) with 
carbon-loading, or organic materials, including binders, providing 
more than 5% echo compared with metal over a bandwidth exceeding 
15% of the center frequency of the incident energy, and 
not capable of withstanding temperatures exceeding 450 K (177 deg. 
C); or
    a.3.a.2. Ceramic materials providing more than 20% echo compared 
with metal over a bandwidth exceeding  15% of the center 
frequency of the incident energy, and not capable of withstanding 
temperatures exceeding 800 K (527 deg. C);

    Technical Note: Absorption test samples for 1C001.a.3.a should 
be a square at least 5 wavelengths of center frequency on a side and 
positioned in the far field of the radiating element.

    a.3.b. Tensile strength less than 7 x 106N/m2; and
    a.3.c. Compressive strength less than 14 x 106N/m2;
    a.4. Planar absorbers made of sintered ferrite, with:
    a.4.a. A specific gravity exceeding 4.4; and
    a.4.b. A maximum operating temperature of 548 K (275  deg.C);

    Note: Nothing in 1C001.a releases magnetic materials to provide 
absorption when contained in paint.

    b. Materials for absorbing frequencies exceeding 1.5 x 1014 
Hz but less than 3.7 x 1014 Hz and not transparent to visible 
light;
    c. Intrinsically conductive polymeric materials with a bulk 
electrical conductivity exceeding 10,000 S/m (Siemens per meter) or 
a sheet (surface) resistivity of less than 100 ohms/square, based on 
any of the following polymers:
    c.1. Polyaniline;
    c.2. Polypyrrole;
    c.3. Polythiophene;
    c.4. Poly phenylene-vinylene;
    c.5. Poly thienylene-vinylene;

    Technical Note: Bulk electrical conductivity and sheet (surface) 
resistivity should be determined using ASTM D-257 or equivalents.


1C002  Metal alloys, metal alloy powder or alloyed materials.

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
NP applies to 1C002.a.2.c or a.2.d if    NP Column 1.                   
 they exceed the parameters stated in                                   
 1C202.                                                                 
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definition: This entry does not control metal alloys, 
metal alloy powder or alloyed materials for coating substrates.
    Items:

    a. Metal alloys, as follows:
    a.1. Nickel or titanium-based alloys in the form of aluminides, 
as follows, in crude or semi-fabricated forms:
    a.1.a. Nickel aluminides containing 10 weight percent or more 
aluminum;
    a.1.b. Titanium aluminides containing 12 weight percent or more 
aluminum;
    a.2. Metal alloys, as follows, made from metal alloy powder or 
particulate material controlled by 1C002.b:
    a.2.a. Nickel alloys with:
    a.2.a.1. A stress-rupture life of 10,000 hours or longer at 923 
K (650  deg.C) and at a stress of 550 MPa; or
    a.2.a.2. A low cycle fatigue life of 10,000 cycles or more at 
823 K (550  deg.C) at a maximum stress of 700 MPa;
    a.2.b. Niobium alloys with:
    a.2.b.1. A stress-rupture life of 10,000 hours or longer at 
1,073 K (800  deg.C) and at a stress of 400 MPa; or
    a.2.b.2. A low cycle fatigue life of 10,000 cycles or more at 
973 K (700  deg.C) at a maximum stress of 700 MPa;
    a.2.c. Titanium alloys with:
    a.2.c.1. A stress-rupture life of 10,000 hours or longer at 723 
K (450  deg.C) and at a stress of 200 MPa; or
    a.2.c.2. A low cycle fatigue life of 10,000 cycles or more at 
723 K (450  deg.C) at a maximum stress of 400 MPa;
    a.2.d. Aluminum alloys with a tensile strength of:
    a.2.d.1. 240 MPa or more at 473 K (200  deg.C); or
    a.2.d.2. 415 MPa or more at 298 K (25  deg.C);
    a.2.e. Magnesium alloys with a tensile strength of 345 MPa or 
more and a corrosion rate of less than 1 mm/year in 3% sodium 
chloride aqueous solution measured in accordance with ASTM standard 
G-31 or equivalents;

    Technical Notes: 1. The metal alloys in 1C002.a are those 
containing a higher percentage by weight of the stated metal than of 
any other element.

    2. Stress-rupture life should be measured in accordance with 
ASTM standard E-139 or equivalents.
    3. Low cycle fatigue life should be measured in accordance with 
ASTM Standard E-606 `Recommended Practice for Constant-Amplitude 
Low-Cycle Fatigue Testing' or equivalents. Testing should be axial 
with an average stress ratio equal to 1 and a stress-concentration 
factor (Kt) equal to 1. The average stress is defined as 
maximum stress minus minimum stress divided by maximum stress.
    b. Metal alloy powder or particulate material for materials 
controlled by 1C002.a, as follows:
    b.1. Made from any of the following composition systems:

    Technical Note: X in the following equals one or more alloying 
elements.

    b.1.a. Nickel alloys (Ni-Al-X, Ni-X-Al) qualified for turbine 
engine parts or components, i.e. with less than 3 non-metallic 
particles (introduced during the manufacturing process) larger than 
100 micrometer in 109 alloy particles;
    b.1.b. Niobium alloys (Nb-Al-X or Nb-X-Al, Nb-Si-X or Nb-X-Si, 
Nb-Ti-X or Nb-X-Ti);
    b.1.c. Titanium alloys (Ti-Al-X or Ti-X-Al);
    b.1.d. Aluminum alloys (Al-Mg-X or Al-X-Mg, Al-Zn-X or Al-X-Zn, 
Al-Fe-X or Al-X-Fe); or

[[Page 12946]]

    b.1.e. Magnesium alloys (Mg-Al-X or Mg-X-Al); and

    Technical Note: X equals one or more alloying elements.

    b.2. Made in a controlled environment by any of the following 
processes:
    b.2.a. ``Vacuum atomization'';
    b.2.b. ``Gas atomization'';
    b.2.c. ``Rotary atomization'';
    b.2.d. ``Splat quenching'';
    b.2.e. ``Melt spinning'' and ``comminution'';
    b.2.f. ``Melt extraction'' and ``comminution''; or
    b.2.g. ``Mechanical alloying'';
    c. Alloyed materials, in the form of uncomminuted flakes, 
ribbons or thin rods produced in a controlled environment by ``splat 
quenching,'' ``melt spinning'' or ``melt extraction'', used in the 
manufacture of metal alloy powder or particulate material controlled 
by 1C002.b;


1C003  Magnetic metals, of all types and of whatever form, having any 
of the following characteristics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled:

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Initial relative permeability 120,000 or more and thickness 
0.05 mm or less;

    Technical Note: Measurement of initial permeability must be 
performed on fully annealed materials.

    b. Magnetostrictive alloys with:
    b.1. A saturation magnetostriction of more than 5 x 10-4; 
or
    b.2. A magnetomechanical coupling factor (k) of more than 0.8; 
or
    c. Amorphous alloy strips with:
    c.1. A composition having a minimum of 75 weight percent of 
iron, cobalt or nickel; and
    c.2. A saturation magnetic induction (Bs) of 1.6 T or more, 
and:
    c.2.a. A strip thickness of 0.02 mm or less; or
    c.2.b. An electrical resistivity of 2 x 10-4 ohmcm or more.


1C004  Uranium titanium alloys or tungsten alloys with a ``matrix'' 
based on iron, nickel or copper.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. A density exceeding 17.5 g/cm3;
    b. An elastic limit exceeding 1,250 MPa;
    c. An ultimate tensile strength exceeding 1,270 MPa; and
    d. An elongation exceeding 8%.


1C005  ``Superconductive'' ``composite'' conductors in lengths 
exceeding 100 m or with a mass exceeding 100 g.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions:

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Multifilamentary ``superconductive'' ``composite'' conductors 
containing one or more niobium-titanium filaments:
    a.1. Embedded in a ``matrix'' other than a copper or copper 
based mixed ``matrix''; or
    a.2. With a cross-section area less than 
0.28 x 10-4mm2 (i.e., 6 micrometer in diameter for 
circular filaments);
    b. ``Superconductive'' ``composite'' conductors consisting of 
one or more ``superconductive'' filaments other than niobium-
titanium:
    b.1. With a ``critical temperature'' at zero magnetic induction 
exceeding 9.85 K (-263.31 deg. C) but less than 24 K (-249.16 deg. 
C);
    b.2. With a cross-section of less than 0.28 x 10-4mm2; 
and
    b.3. Which remain in the ``superconductive'' state at a 
temperature of 4.2 K (-268.96 deg. C) when exposed to a magnetic 
field corresponding to a magnetic induction of 12 T.


1C006  Fluids and lubricating materials.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Barrels (55 U.S. gallons/ 209 liters)
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Hydraulic fluids containing, as their principal ingredients, 
any of the following compounds or materials:
    a.1. Synthetic hydrocarbon oils or silahydrocarbon oils with:
    a.1.a. A flash point exceeding 477 K (204 deg. C);
    a.1.b. A pour point at 239 K (-34 deg. C) or less;
    a.1.c. A viscosity index of 75 or more; and
    a.1.d. A thermal stability at 616 K (343 deg. C); or

    Note: For the purpose of 1C006.a.1, silahydrocarbon oils contain 
exclusively silicon, hydrogen and carbon.

    a.2. Chlorofluorocarbons with:
    a.2.a. No flash point;
    a.2.b. An autogenous ignition temperature exceeding 977 K 
(704 deg. C);
    a.2.c. A pour point at 219 K (-54 deg. C) or less;
    a.2.d. A viscosity index of 80 or more; and
    a.2.e. A boiling point at 473 K (200 deg. C) or higher;

    Note: For the purpose of 1C006.a.2, chlorofluorocarbons contain 
exclusively carbon, fluorine and chlorine.

    b. Lubricating materials containing, as their principal 
ingredients, any of the following compounds or materials:
    b.1. Phenylene or alkylphenylene ethers or thio-ethers, or their 
mixtures, containing more than two ether or thio-ether functions or 
mixtures thereof; or
    b.2. Fluorinated silicone fluids with a kinematic viscosity of 
less than 5,000 mm2/s (5,000 centistokes) measured at 298 K 
(25 deg. C);
    c. Damping or flotation fluids with a purity exceeding 99.8%, 
containing less than 25 particles of 200 micrometer or larger in 
size per 100 ml and made from at least 85% of any of the following 
compounds or materials:
    c.1. Dibromotetrafluoroethane;
    c.2. Polychlorotrifluoroethylene (oily and waxy modifications 
only); or
    c.3. Polybromotrifluoroethylene;

    Technical Note: For the purpose of 1C006:

    a. Flash point is determined using the Cleveland Open Cup Method 
described in ASTM D-92 or equivalents.
    b. Pour point is determined using the method described in ASTM 
D-97 or equivalents.
    c. Viscosity index is determined using the method described in 
ASTM D-2270 or equivalents.
    d. Thermal stability is determined by the following test 
procedure or equivalents: Twenty ml of the fluid under test is 
placed in a 46 ml type 317 stainless steel chamber containing one 
each of 12.5 mm (nominal) diameter balls of M-10 tool steel, 52100 
steel and naval bronze (60% Cu, 39% Zn, 0.75%

[[Page 12947]]
Sn). The chamber is purged with nitrogen, sealed at atmospheric 
pressure and the temperature raised to and maintained at 644 
6 K (371 6 deg. C) for six hours. The 
specimen will be considered thermally stable if, on completion of 
the above procedure, all of the following conditions are met:
    1. The loss in weight of each ball is less than 10 mg/mm2 
of ball surface;
    2. The change in original viscosity as determined at 311 K 
(38 deg. C) is less than 25%; and
    3. The total acid or base number is less than 0.40.
    e. Autogenous ignition temperature is determined using the 
method described in ASTM E-659 or equivalents.


1C007  Ceramic base materials, non-``composite'' ceramic materials, 
ceramic ``matrix'' ``composite'' materials and precursor materials.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to items described in         MT Column 1.                   
 1C007.d (dielectric constant less than                                 
 6 at frequencies from 100Hz to 10,000                                  
 MHZ) for use in missile radomes.                                       
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000, except N/A for 1C007.e
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Base materials of single or complex borides of titanium 
having total metallic impurities, excluding intentional additions, 
of less than 5,000 ppm, an average particle size equal to or less 
than 5 micrometer and no more than 10% of the particles larger than 
10 micrometer;
    b. Non-``composite'' ceramic materials in crude or semi-
fabricated form, composed of borides of titanium with a density of 
98% or more of the theoretical density, except abrasives;
    c. Ceramic-ceramic ``composite'' materials with a glass or 
oxide-``matrix'' and reinforced with fibers from any of the 
following systems:
    c.1. Si-N;
    c.2. Si-C;
    c.3. Si-Al-O-N; or
    c.4. Si-O-N;
    d. Ceramic-ceramic ``composite'' materials, with or without a 
continuous metallic phase, containing finely dispersed particles or 
phases of any fibrous or whisker-like material, where carbides or 
nitrides of silicon, zirconium or boron form the ``matrix'';
    e. Precursor materials (i.e., special purpose polymeric or 
metallo-organic materials) for producing any phase or phases of the 
materials controlled by 1C007.c, as follows:
    e.1. Polydiorganosilanes (for producing silicon carbide);
    e.2. Polysilazanes (for producing silicon nitride); or
    e.3. Polycarbosilazanes (for producing ceramics with silicon, 
carbon and nitrogen components).


1C008  Non-fluorinated polymeric substances.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $200
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a.1. Bismaleimides;
    a.2. Aromatic polyamide-imides;
    a.3. Aromatic polyimides;
    a.4. Aromatic polyetherimides having a glass transition 
temperature (Tg) exceeding 503 K (230 deg. C) as measured by 
the wet method.

    Note: 1C008.a does not control non-fusible compression molding 
powders or molded forms.

    b. Thermoplastic liquid crystal copolymers having a heat 
distortion temperature exceeding 523 K (250 deg. C) measured 
according to ASTM D-648, method A, or equivalents, with a load of 
1.82 N/mm2 and composed of:
    b.1. Either of the following:
    b.1.a. Phenylene, biphenylene or naphthalene; or
    b.1.b. Methyl, tertiary-butyl or phenyl substituted phenylene, 
biphenylene or naphthalene; and
    b.2. Any of the following acids:
    b.2.a. Terephthalic acid;
    b.2.b. 6-hydroxy-2 naphthoic acid; or
    b.2.c. 4-hydroxybenzoic acid;
    c. Polyarylene ether ketones, as follows:
    c.1. Polyether ether ketone (PEEK);
    c.2. Polyether ketone ketone (PEKK);
    c.3. Polyether ketone (PEK);
    c.4. Polyether ketone ether ketone ketone (PEKEKK);
    d. Polyarylene ketones;
    e. Polyarylene sulphides, where the arylene group is 
biphenylene, triphenylene or combinations thereof;
    f. Polybiphenylenethersulphone.


1C009  Unprocessed fluorinated compounds.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Copolymers of vinylidene fluoride having 75% or more beta 
crystalline structure without stretching;
    b. Fluorinated polyimides containing 30% or more of combined 
fluorine;
    c. Fluorinated phosphazene elastomers containing 30% or more of 
combined fluorine.


1C010  ``Fibrous and filamentary materials'' that may be used in 
organic ``matrix'', metallic ``matrix'' or carbon ``matrix'' 
``composite'' structures or laminates.

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
NP applies to 1C010.a, .b, .c, and e.1.  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1500, except for 1C010.a, .b, .c and e.1
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Organic ``fibrous and filamentary materials'' (except 
polyethylene) with:
    a.1. A ``specific modulus'' exceeding 12.7 x 10\6\m; and
    a.2. A ``specific tensile strength'' exceeding 23.5 x 10\4\m;
    b. Carbon ``fibrous and filamentary materials'' with:
    b.1. A ``specific modulus'' exceeding 12.7 x 10\6\m; and
    b.2. A ``specific tensile strength'' exceeding 23.5 x 10\4\m;

    Technical Note: Properties for materials described in 1C010.b 
should be determined using Suppliers of Advance Composite Materials 
Association (SACMA) recommended methods SRM 12 to 17, or equivalent 
tow tests, such as Japanese Industrial Standard JIS-R-7601, 
Paragraph 6.6.2., and based on lot average.

    Note: 1C010.b does not control fabric made from ``fibrous or 
filamentary materials'' for the repair of aircraft structures or 
laminates,

[[Page 12948]]
in which the size of individual sheets does not exceed 50 cm x 90 
cm.

    c. Inorganic ``fibrous or filamentary materials'' with:
    c.1. A ``specific modulus'' exceeding 2.54 x 106 m; and
    c.2. A melting, decomposition or sublimation point exceeding 
1,922 K (1,649 deg. C) in an inert environment; except

    Note: 1C010.c does not control:

    1. Discontinuous, multiphase, polycrystalline alumina fibers in 
chopped fiber or random mat form, containing 3 weight percent or 
more silica, with a ``specific modulus'' of less than 10 x 10\6\ m;
    2. Molybdenum and molybdenum alloy fibers;
    3. Boron fibers;
    4. Discontinuous ceramic fibers with a melting, decomposition or 
sublimation point lower than 2,043 K (1,770 deg. C) in an inert 
environment.
    d. ``Fibrous or filamentary materials'':
    d.1. Composed of any of the following:
    d.1.a. Polyetherimides controlled by 1C008.a; or
    d.1.b. Materials controlled by 1C008.b, .c, .d, .e, or .f; or
    d.2. Composed of materials controlled by 1C010.d.1.a or .b and 
``commingled'' with other fibers controlled by 1C010.a, b, or c;
    e. Resin- or pitch-impregnated fibers (prepregs), metal or 
carbon-coated fibers (preforms) or ``carbon fiber preforms'', as 
follows:
    e.1. Made from ``fibrous or filamentary materials'' controlled 
by 1C010.a, .b, or .c; or
    e.2. Made from organic or carbon ``fibrous or filamentary 
materials'':
    e.2.a. With a ``specific tensile strength'' exceeding 
17.7 x 10\4\m;
    e.2.b. With a ``specific modulus'' exceeding 10.15 x 10\6\m;
    e.2.c. Not controlled by 1C010.a or .b; and
    e.2.d. When impregnated with materials controlled by 1C008 or 
1C009.b, or with phenolic or epoxy resins, having a glass transition 
temperature (Tg) exceeding 383 K (110 deg. C).

    Note: 1C010.e does not control epoxy resin matrix impregnated 
carbon ``fibrous or filamentary materials'' (prepregs) for the 
repair of aircraft structures or laminates, in which the size of 
individual sheets of prepreg does not exceed 50 cm x 90cm.


1C018  Materials on the International Munitions List.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes for items listed in Advisory Note to 1C018
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Ethyl and Methyl centralites.
    b. NN-Diphenylurea (unsymmetrical diphenylurea).
    c. Methyl-NN-diphenylurea (methyl unsymmetrical diphenylurea).
    d. Ethyl-NN-diphenylurea (ethyl unsymmetrical diphenylurea).
    e. Ethyl phenyl urethane.
    f. Diphenyl urethane.
    g. Diortho tolyl-urethane.
    h. 2-Nitrodiphenylamine.
    i. p-Nitromethylaniline.
    j. 2,2' Dinitropropanol.
    k. Bis(2,2' dinitropropyl) formal and acetal.
    l. 3-Nitraza-1,5 pentane diisocyanate.
    m. Guanidine nitrate.
    n. Hydrogen peroxide in concentrations of 85%.
    o. Charges specially designed for civilian applications, 
containing military explosives, except those items described in 
1C992.

    Technical Note: Military high explosives are solid, liquid or 
gaseous substances or mixtures of substances that, in their 
application as primary, booster, or main charges in warheads, 
demolition and other military applications, are required to 
detonate.

    Advisory Note: Licenses are likely to be approved for export and 
reexport to satisfactory end-users in Country Group D:1 of certain 
explosive substances and mixtures in reasonable quantities for 
civilian or industrial purposes when made into cartridges or charges 
of an exclusively civilian or industrial nature, such as propellants 
for sporting purposes or shooting gallery practice; cartridges for 
riveting guns; and explosive charges for agricultural purposes, 
public works, mines, quarries or oil-well drilling. The following 
are the substances or mixtures to which this procedure applies:

    a. Nitrate-based (40 percent or more) and provided they do not 
contain more than 40 percent nitroglycol/nitroglycerin or no more 
than 16 percent TNT;
    b. Nitrocellulose with a nitrogen content of over 12.2 percent;
    c. Nitroglycerin;
    d. Single base nitrocellulose;
    e. Sodium azide and other inorganic azides.


1C101  Materials and devices for reduced observables such as radar 
reflectivity, ultraviolet/infrared signatures and acoustic signatures 
other than those controlled by 1C001, usable in ``missiles'' and their 
subsystems.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: Materials controlled by this entry include: 
(a) structural materials and coatings specially designed for reduced 
radar reflectivity; (b) coatings, including paints, specially 
designed for reduced or tailored reflectivity or emissivity in the 
microwave, infrared or ultraviolet spectra. This entry does not 
control coatings when specially used for the thermal control of 
satellites.
    Items: The list of items controlled is contained in the ECCN 
heading.


1C107  Graphite and ceramic materials.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Fine grain recrystallized bulk graphites (with a bulk density 
of at least 1.72 g/cm\3\ measured at 288 K (15 deg. C) and having a 
particle size of 100 micrometers or less), pyrolytic, or fibrous 
reinforced graphites usable for rocket nozzles and reentry vehicle 
nose tips; and
    b. Ceramic ``composite'' materials (dielectric constant less 
than 6 at frequencies from 100 Hz to 10,000 MHz) for use in radomes, 
and bulk machinable silicon-carbide reinforced unfired ceramic, 
useable for nose tips.


1C115  Propellants and constituent chemicals for propellants.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: The following materials, whether or not 
encapsulated in aluminum, beryllium, magnesium, or zirconium are 
subject to the export licensing authority of the U.S.

[[Page 12949]]
Department of State, Office of Defense Trade Controls: (See 22 CFR 
part 121, Category V): (a.) Spherical aluminum powder with particles 
of uniform diameter 60 x 10-6 m (60 micrometers) or less and an 
aluminum content of 97 percent or greater; (b.) Metal fuels in 
particle sizes less than 60 x 10-6m (60 microns), whether 
spherical, atomized, spheroidal, flaked or ground, manufactured from 
material consisting of 99 percent or more of: Boron; magnesium; 
zirconium; alloys of boron, magnesium or zirconium; beryllium; or 
iron powder with average particle size of 3 x 10-6 m (3 
microns) or less produced by hydrogen reduction of iron oxide.
    Related Definitions: N/A
    Items:

    a. Fuel substances:
    a.1. Spherical aluminum powder, as follows:
    a.1.a. Spherical aluminum powder with particles of uniform 
diameter less than 500 x 10-6 m (500 micrometers), but greater 
than 60 x 10-6 m (60 micrometers), and an aluminum content of 
97 percent by weight or greater;
    a.1.b. Spherical aluminum powder with particles of uniform 
diameter 60 x 10-6 m (60 micrometers) or less, and an aluminum 
content of 97 percent by weight or greater, but less than 99 
percent;
    a.2. Metal fuels containing beryllium, boron, magnesium, 
zirconium, or alloys of boron, magnesium, or zirconium, as follows:
    a.2.a. Metal fuels in particle sizes less than 500 x 10-6 m 
(500 microns), but equal to or greater than 60 x 10-6 m (60 
microns), whether spherical, atomized, spheroidal, flaked or ground, 
consisting of 97 percent by weight or more of beryllium, boron, 
magnesium, zirconium, and alloys of boron, magnesium, or zirconium;
    a.2.b. Metal fuels in particle sizes less than 60 x 10-6 m 
(60 microns), whether spherical, atomized, spheroidal, flaked or 
ground, consisting of 97 percent by weight or more, but less than 99 
percent, of beryllium, boron, magnesium, zirconium, and alloys of 
boron, magnesium, or zirconium;
    a.3. Metal fuels in particle sizes less than 500 x 10-6 m 
(500 microns), whether spherical, atomized, spheroidal, flaked or 
ground, consisting of 97 percent by weight or more of alloys of 
beryllium.
    a.4. Liquid oxidizer substances:
    a.4.a. Dinitrogen trioxide;
    a.4.b. Nitrogen dioxide/dinitrogen tetroxide;
    a.4.c. Dinitrogen pentoxide;
    b. Polymeric substances:
    b.1. Carboxy-terminated polybutadiene (CTPB);
    b.2. Commercial grade Hydroxy-terminated polybutadiene (HTPB);

    Note: Military grade (i.e., Hydroxy-terminated polybutadiene 
(HTPB) with a hydroxyl functionality greater than or equal to 2.2 
but less than or equal to 2.4, a hydroxyl value of less than 0.77 
meq/g, and a viscosity at 30 deg. C of less than 47 poise) is 
controlled by the Office of Defense Trade Controls, U.S. Department 
of State (see Category V of the USML (22 CFR part 121)).

    b.3. Polybutadiene-acrylic acid (PBAA);
    b.4. Polybutadiene-acrylic acid-acrylonitrile (PBAN).
    c. Other propellant additives and agents:
    c.1. Burning rate modifiers as follows: Butacene;
    c.2. Nitrate esters and nitrated plasticizers as follows:
    c.2.a. Triethylene glycol dinitrate (TEGDN);
    c.2.b. Trimethylolethane trinitrate (TMETN);
    c.2.c. Diethylene glycol dinitrate (DEGDN);
    c.3. Stabilizers, as follows: 2-nitrodiphenylamine.


1C116  Maraging steels (steels generally characterized by high nickel, 
very low carbon content and the use of substitutional elements or 
precipitates to produce age-hardening), other than those controlled by 
1C216, having an Ultimate Tensile Strength of 1500 MPa or greater 
measured at 293 K (20 deg. C), in the form of sheet, plate, or tubing 
with a wall or plate thickness equal to or less than 5.0mm (0.2 inch).

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C117  Tungsten, molybdenum, and alloys of these metals in the form of 
uniform spherical or atomized particles of 500 micrometer diameter or 
less with a purity of 97% or higher for fabrication of rocket motor 
components; i.e., heat shields, nozzle substrates, nozzle throats, and 
thrust vector control surfaces.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C202  Aluminum and titanium alloys in the form of tubes or cylindrical 
solid forms (including forgings) with an outside diameter of more than 
75 mm (3 inches).

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls:
    Related Definition: The phrase ``alloys capable of'' encompasses 
before and after heat treatment.
    Items:

    a. Aluminum alloys capable of an ultimate tensile strength of 
460 MPa (.46 x 109 N/m2) or more at 293 K (20 deg. C);
    b. Titanium alloys capable of an ultimate tensile strength of 
900 MPa (0.9 x 109 N/m2) (130,500 lbs./in\2\) or more at 
293 K (20 deg. C).


1C210  ``Fibrous and filamentary materials'' not controlled by 1C010.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: See 9A110 for fiber prepregs.
    Related Definitions: For the purpose of this entry, the term 
``fibrous or filamentary materials'' means continuous monofilaments, 
yarns, rovings, tows or tapes.
    Defintions for other terms used in this entry:
    Filament or Monofilament is the smallest increment of fiber, 
usually several m in diameter.
    Strand is a bundle of filaments (typically over 200) arranged 
approximately parallel.
    Roving is a bundle (typically 12-120) of approximately parallel 
strands.
    Yarn is a bundle of twisted strands.
    Tow is a bundle of filaments, usually approximately parallel.
    Tape is a material constructed of interlaced or unidirectional 
filaments, strands, rovings, tows or yarns, etc., usually 
preimpregnated with resin.
    Specific modulus is the Young's modulus in N/m\2\ divided by the 
specific weight

[[Page 12950]]
in N/m\3\, measured at a temperature of 232 deg. C and a 
relative humidity of 505 percent.
    Specific tensile strength is the ultimate tensile strength in N/
m\2\ divided by specific weight in N/m\3\, measured at a temperature 
of 232 deg. C and a relative humidity of 505 
percent.
    Items:

    a. Carbon and aramid ``fibrous and filamentary materials'' 
having:
    a.1. A ``specific modulus'' of 12.7 x 10\6\ m or greater; or
    a.2. A ``specific tensile strength'' of 23.5 x 10\4\ m or 
greater; or

    Note: 1C210.a does not include aramid ``fibrous or filamentary 
materials'' having 0.25 percent or more by weight of an ester based 
fiber surface modifier.

    b. Glass ``fibrous and filamentary materials'' having:
    b.1. A ``specific modulus'' of 3.18 x 10\6\ m or greater; and
    b.2. A ``specific tensile strength'' of 7.62 x 10\4\ m or 
greater; or
    c. Thermoset resin impregnated continuous yarns, rovings, tows 
or tapes with a width no greater than 15 mm (prepregs), made from 
carbon or glass ``fibrous or filamentary materials'' described in 
1C210.a or .b;

    Note: The resin forms the matrix of the composite.


1C216  Maraging steel capable of an ultimate tensile strength of 2050 
MPa (2.050 x 109 N/m2) (300,000 lbs./in\2\) or more at 293 K 
(20 deg. C), except forms in which no linear dimension exceeds 75 mm (3 
inches).

License Requirements

    Reason for Control: NP, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
MT applies to maraging steels            MT Column 1.                   
 controlled by this entry that also                                     
 meet the specifications of 1C116.                                      
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: The phrase ``maraging steel capable of'' 
encompasses maraging steel before or after heat treatment.
    Items: The list of items controlled is contained in the ECCN 
heading.


1C225  Boron and boron compounds, mixtures, and loaded materials in 
which the boron-10 isotope is more than 20% by weight of the total 
boron content.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C226  Parts made of tungsten, tungsten carbide, or tungsten alloys 
(greater than 90% tungsten) having a mass greater than 20 kg and a 
hollow cylindrical symmetry (including cylinder segments) with an 
inside diameter greater than 100 mm (4 in.), but less than 300 mm (12 
in.), except parts specially designed for use as weights or gamma-ray 
collimators.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C227  Calcium (high purity) containing both less than 1,000 parts per 
million by weight of metallic impurities other than magnesium and less 
than 10 parts per million of boron.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C228  Magnesium (high purity) containing both less than 200 parts per 
million by weight of metallic impurities other than calcium and less 
than 10 parts per million of boron.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C229  High purity (99.99% or greater) bismuth with very low silver 
content (less than 10 parts per million).

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C230  Beryllium.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: This entry does not control: a.) Metal 
windows for X-ray machines, or for bore-hole logging devices; b.) 
Oxide shapes in fabricated or semi-fabricated forms specially 
designed for electronic component parts or as substrates for 
electronic circuits; and, c.) Beryl (silicate of beryllium and

[[Page 12951]]
aluminum) in the form of emeralds or aquamarines.
    Items:

    a. Beryllium metal;
    b. Alloys containing more than 50% beryllium by weight;
    c. Beryllium compounds;
    d. Manufactures of beryllium metal, alloys, or compounds 
described in 1C230.a, .b, or .c; or
    e. Waste and scrap from beryllium metal, alloys, compounds, or 
manufactures thereof described in 1C230.a, .b, .c or .d.


1C231  Hafnium.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Hafnium metal;
    b. Alloys and compounds of hafnium containing more than 60 
percent hafnium by weight; or
    c. Manufactures of hafnium metal, alloys, or compounds described 
in 1C231.a or .b.


1C232  Helium-3 or helium isotopically enriched in the helium-3 
isotope, mixtures containing helium-3, and products or devices 
containing any of the foregoing, except; a product or device containing 
less than 1g of helium-3.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Liters
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C233  Lithium.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Lithium enriched in the 6 isotope (6Li) to greater than 
7.5 atom percent, alloys, compounds or mixtures containing lithium 
enriched in the 6 isotope, and products or devices containing any of 
the foregoing; except thermoluminescent dosimeters.

    Note: The natural occurrence of the 6 isotope in lithium is 7.5 
atom percent.

    b. Reserved.


1C234  Zirconium, with a hafnium content of less than 1 part hafnium to 
500 parts zirconium by weight.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: Zirconium metal and alloys in the form of 
tubes or assemblies of tubes, specially designed or prepared for use 
in a reactor are subject to the export licensing authority of the 
Nuclear Regulatory Commission. (See 10 CFR part 110.)

    This entry does not control zirconium in the form of foil or 
strip having a thickness not exceeding 0.10 mm (0.004 in.).

    Items:

    a. Zirconium metal;
    b. Alloys containing more than 50% zirconium by weight;
    c. Compounds;
    d. Manufactures of zirconium metal, alloys, or compounds 
described in 1C234.a, .b, or .c; or
    e. Waste and scrap from zirconium metal, alloys, compounds, or 
manufactures thereof controlled by 1C234.a, .b, .c, or .d;

    Advisory Note: (Not eligible for License Exception GBS) Licenses 
are likely to be approved for export and reexport to satisfactory 
end-users in Country Group D:1 of the following:
    a. Finished parts made of zirconium metal or alloys, specially 
designed for an identified civil research or power reactor facility, 
provided that:
    a.1. None of the parts contains fissile materials; and
    a.2. The importing country has agreed to the application of the 
Safeguards of the International Atomic Energy Agency (IAEA) in 
connection with the nuclear reactor facility;
    b. Contained zirconium metal, or parts made therefrom, in 
individual shipments not exceeding 100 kg, when intended for use in, 
or in support of, an identified civil research or power reactor 
facility, in connection with which it is contemplated that IAEA 
Safeguards would be applied.
    N.B.: The provisions of this Advisory Note notwithstanding, 
current law prohibits approval to nuclear production or utilization 
facilities in the People's Republic of China.


1C236  Alpha-emitting radionuclides having an alpha half-life of 10 
days or greater, but less than 200 years, including compounds and 
mixtures containing these radionuclides with a total alpha activity of 
1 curie per kilogram (37 GBq) or greater; except devices containing 
less than 3.7 GBq (100 millicuries) of alpha activity per device.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Millicuries
    Related Controls: Alpha emitting radionuclides are subject to 
the export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
    Related Definition: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C237  Radium-226, radium-226 compounds, or mixtures containing radium-
226, and products or devices containing any of the foregoing; except 
medical applicators, or a product or device containing not more than 
0.37 GBq (10 millicuries) of radium-226 in any form.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    
[[Page 12952]]

    Related Controls: N/A
    Related Definition: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C238  Chlorine trifluoride (C1F3).

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C350  Chemicals, that may be used as precursors for toxic chemical 
agents.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 2.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Requirement Notes

    1. SAMPLE SHIPMENTS: Certain sample shipments of chemicals 
controlled under ECCN 1C350 may be made without a license, as 
provided by the following:
    a. Chemicals Not Eligible: The following chemicals are not 
eligible for sample shipments: 0-Ethyl-2-diisopropylaminoethyl 
methylphosphonite (QL) (C.A.S. #57856-11-8), Ethylphosphonyl 
difluoride (C.A.S. #753-98-0), and Methylphosphonyl difluoride 
(C.A.S. #676-99-3).
    b. Countries Not Eligible: The following countries are not 
eligible to receive sample shipments: Cuba, Iran, Libya, North 
Korea, Sudan, Syria.
    c. Sample Shipments: A license is not required for sample 
shipments when the cumulative total of these shipments does not 
exceed a 55-gallon container or 200 kg of each chemical to any one 
consignee per calendar year. Multiple sample shipments, in any 
quantity, not exceeding the totals indicated in this paragraph may 
be exported without a license, in accordance with the provisions of 
this NOTE 1.
    d. The exporter is required to submit a quarterly written report 
for shipments of samples made under this Note 1. The report must be 
on company letterhead stationery (titled ``Report of Sample 
Shipments of Chemical Precursors'' at the top of the first page) and 
identify the chemical(s), Chemical Abstract Service Registry 
(C.A.S.) number(s), quantity(ies), the ultimate consignee's name and 
address, and the date exported. The report must be sent to the U.S. 
Department of Commerce, Bureau of Export Administration, Room 2705, 
Washington, DC 20230, Attn: ``Report of Sample Shipments of Chemical 
Precursors''.
    2. MIXTURES: Mixtures controlled by this entry that contain 
certain concentrations of precursor and intermediate chemicals are 
subject to the following licensing requirements:
    a. A license is required, regardless of the concentrations in 
the mixture, for the following chemicals: 0-Ethyl-2-
diisopropylaminoethyl methylphosphonite (QL) (C.A.S.#57856-11-8), 
Ethylphosphonyl difluoride (C.A.S.#753-98-0) and Methylphosphonyl 
difluoride (C.A.S.#676-99-3);
    b. A license is required when at least one of the following 
chemicals constitutes more than 10 percent of the weight of the 
mixture on a solvent free basis: Arsenic trichloride (C.A.S.#7784-
34-1), Benzilic acid (C.A.S.#76-93-7), Diethyl ethylphosphonate 
(C.A.S.#78-38-6), Diethyl methylphosphonite (C.A.S.#15715-41-0), 
Diethyl-N,N-dimethylphosphoroamidate (C.A.S.#2404-03-7), N,N-
Diisopropyl-beta-aminoethane thiol (C.A.S.#5842-07-9), N,N-
Diisopropyl-2-aminoethyl chloride hydrochloride (C.A.S.#4261-68-1), 
N,N-Diisopropyl-beta-aminoethanol (C.A.S.#96-80-0), N,N-Diisopropyl-
beta-aminoethyl chloride (C.A.S.#96-79-7), Dimethyl ethylphosphonate 
(C.A.S.#6163-75-3), Dimethyl methylphosphonate (C.A.S.#756-79-6), 
Ethylphosphonous dichloride [Ethylphosphinyl dichloride] 
(C.A.S.#1498-40-4), Ethylphosphonus difluoride [Ethylphosphinyl 
difluoride] (C.A.S.#430-78-4), Ethylphosphonyl dichloride 
(C.A.S.#1066-50-8), Methylphosphonous dichloride [Methylphosphinyl 
dicloride] (C.A.S.#676-83-5), Methylphosphonous difluoride 
[Methylphosphinyl difluoride] (C.A.S.#753-59-3), Methylphosphonyl 
dichloride (C.A.S.#676-97-1), Pinacolyl alcohol (C.A.S.#464-07-3), 
3-Quinuclidinol (C.A.S.#1619-34-7), and Thiodiglycol (C.A.S.#111-48-
8); (Related ECCN: 1C995)
    c. A license is required when at least one of all other 
chemicals in the List of Items Controlled constitutes more than 25 
percent of the weight of the mixture on a solvent free basis 
(related ECCN: 1C995); and
    d. A license is not required under this entry for mixtures when 
the controlled chemical is a normal ingredient in consumer goods 
packaged for retail sale for personal use. Such consumer goods are 
controlled by ECCN EAR99.
    e. Calculation of concentrations of AG-controlled chemicals.
    1. Usual Commercial Purposes. In calculating the percentage of 
an AG controlled chemical in a mixture (solution), any other 
chemical must be excluded if it was not added for usual commercial 
purposes, but was added for the sole purpose of circumventing the 
Export Administration Regulations.
    2. ``Solvent Free Basis Requirement.'' When calculating the 
percentage, by weight, of components in a chemical mixture, you must 
exclude from the calculation any component of the mixture that acts 
as a solvent.
    3. Solvent--For purposes of this ECCN ``A substance capable of 
dissolving another substance to form a uniformly dispersed mixture 
(solution)''.
     Solvents are liquids at standard temperature and 
pressure (STP).
     In no instance is an AG controlled chemical considered 
a ``solvent''.
     All ingredients of mixtures are expressed in terms of 
weight.
     The solvent component of the mixture converts it into a 
solution.
    3. Compounds: A license is not required under this entry for 
chemical compounds created with any chemicals identified in this 
ECCN 1C350, unless those compounds are also identified in this 
entry.
    4. Special Comprehensive License: See part 752 of the EAR for 
eligibility.

    Technical Notes: 1. For purposes of this entry, a ``mixture'' is 
defined as a solid, liquid or gaseous product made up of two or more 
components that do not react together under normal storage 
conditions.
    2. The scope of this control applicable to Hydrogen Fluoride 
(Item 25 in List of Items Controlled) includes its liquid, gaseous, 
and aqueous phases, and hydrates.
    3. All de minimis exclusions of this entry extend to all 
mixtures including those that contain no solvents.
    4. A Solvent is defined as a substance capable of dissolving 
another substance to form a uniformly dispersed mixture (solution). 
For examples and clarification of the term ``solvent free'' basis, 
see Supplement No. 3 to part 774 of the EAR.

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Liters or kilograms, as appropriate
    Related Controls: N/A
    Related Definition: See part 770.2(k) of the EAR for synonyms 
for the chemicals listed in this entry.
    Items:

    a. Precursor Chemicals, as follows:
    a.1. (C.A.S. #1341-49-7) Ammonium hydrogen fluoride;
    a.2. (C.A.S. #7784-34-1) Arsenic trichloride;
    a.3. (C.A.S. #76-93-7) Benzilic acid;
    a.4. (C.A.S. #107-07-3) 2-Chloroethanol;
    a.5. (C.A.S. #78-38-6) Diethyl ethylphosphonate;
    a.6. (C.A.S. #15715-41-0) Diethyl methylphosphonite;
    a.7. (C.A.S. #2404-03-7) Diethyl-N,N-dimethylphosphoroamidate;
    a.8. (C.A.S. #762-04-9) Diethyl phosphite;
    a.9. (C.A.S. #100-37-8) N,N-Diethylethanolamine;
    a.10. (C.A.S. #5842-07-9) N,N-Diisopropyl-.beta.-
aminoethanethiol;
    a.11. (C.A.S. #4261-68-1) N,N-Diisopropyl-.2.-aminoethyl 
chloride hydrochloride;
    a.12. (C.A.S. #96-80-0) N,N-Diisopropyl-.beta.-aminoethanol;
    a.13. (C.A.S. #96-79-7), N,N-Diisopropyl-.beta.-aminoethyl 
chloride;
    a.14. (C.A.S. #108-18-9) Diisopropylamine;
    a.15. (C.A.S. #6163-75-3) Dimethyl ethylphosphonate;
    
[[Page 12953]]

    a.16. (C.A.S. #756-79-6) Dimethyl methylphosphonate;
    a.17. (C.A.S. #868-85-9) Dimethyl phosphite (dimethyl hyrogen 
phosphite);
    a.18. (C.A.S. #124-40-3) Dimethylamine;
    a.19. (C.A.S. #506-59-2) Dimethylamine hydrochloride;
    a.20. (C.A.S. #57856-11-8) 0-Ethyl-2-diisopropylaminoethyl 
methylphosphonite (QL);
    a.21. (C.A.S. #1498-40-4) Ethylphosphonous dichloride 
[Ethylphosphinyl dichloride];/c
    a.22. (C.A.S. #430-78-4) Ethylphosphonus difluoride 
[Ethylphosphinyl difluoride];
    a.23. (C.A.S. #1066-50-8) Ethylphosphonyl dichloride;
    a.24. (C.A.S. #753-98-0) Ethylphosphonyl difluoride;
    a.25. (C.A.S. #7664-39-3) Hydrogen fluoride;
    a.26. (C.A.S. #3554-74-3) 3-Hydroxyl-1-methylpiperidine;
    a.27. (C.A.S. #76-89-1) Methyl benzilate;
    a.28. (C.A.S. #676-83-5) Methylphosphonous dichloride 
[Methylphosphinyl dicloride];
    a.29. (C.A.S. #753-59-3) Methylphosphonous difluoride 
[Methylphosphinyl difluoride];
    a.30. (C.A.S. #676-97-1) Methylphosphonyl dichloride;
    a.31. (C.A.S. #676-99-3) Methylphosphonyl difluoride;
    a.32. (C.A.S. #10025-87-3) Phosphorus oxychloride;
    a.33. (C.A.S. #10026-13-8) Phosphorus pentachloride;
    a.34. (C.A.S. #1314-80-3) Phosphorus pentasulfide;
    a.35. (C.A.S. #7719-12-2) Phosphorus trichloride;
    a.36. (C.A.S. #75-97-8) Pinacolone;
    a.37. (C.A.S. #464-07-3) Pinacolyl alcohol;
    a.38. (C.A.S. #151-50-8) Potassium cyanide;
    a.39. (C.A.S. #7789-23-3) Potassium fluoride;
    a.40. (C.A.S. #7789-29-9) Potassium hydrogen fluoride;
    a.41. (C.A.S. #1619-34-7) 3-Quinuclidinol;
    a.42. (C.A.S. #3731-38-2) 3-Quinuclidinone;
    a.43. (C.A.S. #1333-83-1) Sodium bifluoride;
    a.44. (C.A.S. #143-33-9) Sodium cyanide;
    a.45. (C.A.S. #7681-49-4) Sodium fluoride;
    a.46. (C.A.S. #1313-82-2) Sodium sulfide;
    a.47. (C.A.S. #10025-67-9) Sulfur monochloride;
    a.48. (C.A.S. #10545-99-0) Sulfur dichloride;
    a.49. (C.A.S. #111-48-8) Thiodiglycol;
    a.50. (C.A.S. #7719-09-7) Thionyl chloride;
    a.51. (C.A.S. #102-71-6) Triethanolamine;
    a.52. (C.A.S. #637-39-8) Triethanolamine hydrochloride;
    a.53. (C.A.S. #122-52-1) Triethyl phosphite; and
    a.54. (C.A.S. #121-45-9) Trimethyl phosphite.
    b. Reserved.


1C351  Human pathogens, zoonoses, and ``toxins''.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
 CB applies to entire entry............  CB Column 1.                   
 AT applies to entire entry............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: All vaccines and ``immunotoxins'' are excluded 
from the scope of this entry. See ECCN 1C996.
    Related Definition: (1) For the purposes of this entry 
``immunotoxin'' is defined as an antibody-toxin conjugate intended 
to destroy specific target cells (e.g., tumor cells) that bear 
antigens homologous to the antibody. (2) For the purposes of this 
entry ``subunit'' is defined as a portion of the ``toxin''.
    Items:

    a. Viruses, as follows:
    a.1. Chikungunya virus
    a.2. Congo-Crimean haemorrhagic fever virus;
    a.3. Dengue fever virus;
    a.4. Eastern equine encephalitis virus;
    a.5. Ebola virus;
    a.6. Hantaan virus;
    a.7. Japanese encephalitis virus;
    a.8. Junin virus;
    a.9. Lassa fever virus
    a.10. Lymphocytic choriomeningitis virus;
    a.11. Machupo virus;
    a.12. Marburg virus;
    a.13. Monkey pox virus;
    a.14. Rift Valley fever virus;
    a.15. Tick-borne encephalitis virus (Russian Spring-Summer 
encephalitis virus);
    a.16. Variola virus;
    a.17. Venezuelan equine encephalitis virus;
    a.18. Western equine encephalitis virus;
    a.19. White pox; or
    a.20. Yellow fever virus.
    b. Rickettsiae, as follows:
    b.1. Bartonella quintana (Rochalimea quintana, Rickettsia 
quintana);
    b.2. Coxiella burnetii;
    b.3. Rickettsia prowasecki; or
    b.4. Rickettsia rickettsii.
    c. Bacteria, as follows:
    c.1. Bacillus anthracis;
    c.2. Brucella abortus;
    c.3. Brucella melitensis;
    c.4. Brucella suis;
    c.5. Burkholderia mallei (Pseudomonas mallei);
    c.6. Burkholderia pseudomallei (Pseudomonas pseudomallei);
    c.7. Chlamydia psittaci;
    c.8. Clostridium botulinum;
    c.9. Francisella tularensis;
    c.10. Salmonella typhi;
    c.11. Shigella dysenteriae;
    c.12. Vibrio cholerae;
    c.13. Yersinia pestis.
    d. ``Toxins'', as follows: and subunits thereof:
    d.1. Botulinum toxins;
    d.2. Clostridium perfringens toxins;
    d.3. Conotoxin;
    d.4. Microcystin (cyanogenosin);
    d.5. Ricin;
    d.6. Saxitoxin;
    d.7. Shiga toxin;
    d.8. Staphylococcus aureus toxins;
    d.9. Tetrodotoxin; or
    d.10. Verotoxin.


1C352  Animal pathogens.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

     Unit: $ value
    Related Controls: All vaccines are excluded from the scope of 
this entry. See ECCN 1C996.
    Related Definition: N/A
    Items:

List of Items Controlled

    a. Viruses, as follows:
    a.1. African swine fever virus;
    a.2. Avian influenza virus that are;
    a.2.a. Defined in EC Directive 92/40/EC as having high 
pathogenicity, as follows:
    a.2.a.1. Type A viruses with an IVPI (intravenous pathogenicity 
index) in 6 week old chickens of greater than 1.2;
    or
    a.2.a.2. Type A viruses H5 or H7 subtype for which nucleotide 
sequencing has demonstrated multiple basic amino acids at the 
cleavage site of haemegglutinin.
    a.2.b. Reserved.
    a.3. Bluetongue virus;
    a.4. Foot and mouth disease virus;
    a.5. Goat pox virus;
    a.6. Herpes virus (Aujeszky's disease);
    a.7. Hog cholera virus;
    a.8. Lyssa virus;
    a.9. Newcastle disease virus
    a.10. Peste des petits ruminants virus;
    a.11. Porcine enterovirus type 9;
    a.12. Rinderpest virus;
    a.13. Sheep pox virus;
    a.14. Teschen disease virus;
    a.15. Vesicular stomatitis virus; and
    b. Bacteria, as follows:
    b.1. Mycoplasma mycoides;
    b.2. Reserved.


1C353  Genetically modified ``microorganisms''.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 1.                   

[[Page 12954]]
                                                                        
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------



License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: All vacines are excluded from the scope of 
this entry. See ECCN 1C996.
    Related Definition: N/A
    Items:

    a. Genetically modified ``microorganisms'' or genetic elements 
that contain nucleic acid sequences associated with pathogenicity 
derived from organisms identified in ECCNs 1C351.a to .c, 1C352, or 
1C354.
    b. Genetically modified ``microorganisms'' or genetic elements 
that contain nucleic acid sequences coding for any of the 
``toxins'', or their subunits, controlled by 1C351.,d


1C354  Plant pathogens.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: All vaccines are excluded from the scope of 
this entry. See ECCN 1C996.
    Related Definitions: N/A
    Items: 

List of Items Controlled

    a. Bacteria, as follows:
    a.1. Xanthonomas albilineas;
    a.2. Xanthonomas campestris pv. citri;
    b. Fungi, as follows:
    b.1. Colletotrichum coffeanum var. virulans;
    b.2. Cochliobolus miyabeanus (Helminthosporium oryzae);
    b.3. Microcyclus ulei (syn. Dothidella ulei);
    b.4. Puccinia graminis (syn. Puccinia graminis f. sp. tritici);
    b.5. Puccinia striiformis (syn. Puccinia glumarum); or
    b.6. Pyricularia grisea/Pyricularia oryzae.


1C980  Inorganic chemicals listed in Supplement No. 1 to part 754 of 
the EAR that were produced or derived from the Naval Petroleum Reserves 
(NPR) or became available for export as a result of an exchange of any 
NPR produced or derived commodities.

License Requirements

    Reason for Control: SS

Control(s)

    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of the 
EAR. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

    Unit: Barrels/Liters
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C981  Crude petroleum including reconstituted crude petroleum, tar 
sands & crude shale oil listed in Supplement No. 1 to part 754 of the 
EAR.

License Requirements

    Reason for Control: SS

Control(s)

    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of the 
EAR. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

    Unit: Barrels/Liters
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C982  Other petroleum products listed in Supplement No. 1 to part 754 
of the EAR that were produced or derived from the Naval Petroleum 
Reserves (NPR) or became available for export as a result of an 
exchange of any NPR produced or derived commodities.

License Requirements

    Reason for Control: SS

Control(s)

    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of the 
EAR. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C983  Natural gas liquids and other natural gas derivatives listed in 
Supplement No. 1 to part 754 of the EAR that were produced or derived 
from the Naval Petroleum Reserves (NPR) or became available for export 
as a result of an exchange of any NPR produced or derived commodities.

License Requirements

    Reason for Control: SS

Control(s)

    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of the 
EAR. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

    Unit: Barrels/Liters
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C984  Manufactured gas and synthetic natural gas (except when 
commingled with natural gas and thus subject to export authorization 
from the Department of Energy) listed in Supplement No. 1 to part 754 
of the EAR that were produced or derived from the Naval Petroleum 
Reserves (NPR) or became available for export as a result of an 
exchange of any NPR produced or derived commodities.

License Requirements

    Reason for Control: SS

Control(s)

    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of the 
EAR. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

    Unit: Millions of cubic feet
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C988  Western red cedar (thuja picata), logs and timber, and rough, 
dressed and worked lumber containing wane listed in Supplement No. 2 to 
part 754 of the EAR.

License Requirements

    Reason for Control: SS

Control(s)

    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of the 
EAR. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

    Unit: Million board feet scribner
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C991  Vaccines containing items controlled by ECCNs 1C351, 1C352, 
1C353 and 1C354.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------


[[Page 12955]]


License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C992  Oil well perforators.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Materials in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Shaped charges specially designed for oil well operations, 
utilizing one charge functioning along a single axis, that upon 
detonation produce a hole, and:
    a.1. Contain any formulation of RDX, PYX, PETN, HNS, or HMX; and
    a.2. Have only a uniformly shaped conical liner with an included 
angle of 90 degrees or less; and
    a.3. Have a total explosive mass of no more than 90 grams; and
    a.4. Have a diameter not exceeding three inches.


1C993  Fibrous and filamentary materials, not controlled by 1C010 or 
1C210, for use in ``composite'' structures and with a specific modulus 
of 3.18 x 106 m or greater and a specific tensile strength of 7.62 
x 104 m or greater.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1C994  Fluorocarbon electronic cooling fluids.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    Fluorocarbon electronic cooling fluids made from at least 85% of 
any of the following:
    a. Monomeric or polymeric forms of perfluoropolyalkylether-
friazines or perfluoroaliphatic-ethers;
    b. Perfluoroalkylamines; or
    c. Perfluorocycloalkanes or perfluoroalkanes with all of the 
following characteristics:
    c.1. Density of 298K (25 deg. C) of 1.5 g/ml or more;
    c.2. In a liquid state at 273K; (0 deg. C); and
    c.3. Containing 60% or more by weight of fluorine.


1C995  Mixtures containing precursor and intermediate chemicals used in 
the ``production'' of chemical warfare agents that are not controlled 
by ECCN 1C350.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definition: For calculation of de minimis quantities of 
controlled chemicals in mixtures, see ECCN 1C350 and [Supplement 3 
to part 770].
    Items: The list of items controlled is contained in the ECCN 
heading.

D. Software


1D001  ``Software'' specially designed or modified for the 
``development'', ``production'', or ``use'' of items controlled by 
1B001 to 1B003.

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``software'' for the       MT Column 1.                   
 ``development'', ``production'', or                                    
 ``use'' of items controlled by 1B001                                   
 for MT reasons.                                                        
NP applies to ``software'' for the       NP Column 1.                   
 ``development'', ``production'' or                                     
 ``use'' of items controlled by 1B001                                   
 for NP reasons.                                                        
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: Yes
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1D002  ``Software'' for the ``development'' of organic matrix, metal 
matrix or carbon matrix laminates or ``composites''.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``software'' specially     MT Column 1.                   
 designed or modified for the                                           
 ``development'' of ``composites''                                      
 controlled by 1A, 1B or 1C entries for                                 
 MT reasons.                                                            
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: Yes
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1D018  ``Software'' specially designed or modified for the 
``development'', ``production'', or ``use'' of items controlled by 
1B018.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``software'' for the       MT Column 1.                   
 ``development'', ``production'', or                                    
 ``use'' of items controlled by 1B018                                   
 for MT reasons.                                                        
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    
[[Page 12956]]

    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1D101  Other ``software'' not controlled by 1D001, 1D002, 1D103, and 
1D018 specially designed for the ``development'', ``production'', or 
``use'' of items controlled by 1A, 1B, and 1C for MT reasons.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1D103  ``Software'' specially designed for analysis of reduced 
observables such as radar reflectivity, ultraviolet/infrared signatures 
and acoustic signatures.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1D201  ``Software'' specially designed or modified for the ``use'' of 
items controlled by 1B101 or 1B201 for NP reasons.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1D390  ``Software'' for process control that is specifically configured 
to control or initiate ``production'' of chemicals controlled by ECCN 
1C350.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 2.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value

    The list of items controlled is contained in the ECCN heading.


1D993   ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of equipment or materials controlled by 
1C210.b, 1C993, 1C994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

E. Technology


1E001   ``Technology'' according to the General Technology Note for the 
``development'' or ``production'' of items controlled by 1A001.b, 
1A001.c, 1A002, 1A003, 1A102, 1B or 1C (except 1C980 to 1C984, 1C988 
and 1C991 to 1C995).

License Requirements

    Reason for Control: NS, MT, NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1.                   
 controlled by 1A001.b and .c, 1A002,                                   
 1A003, 1B001 to 1B003, 1B018, 1B225,                                   
 1C001 to 1C010, 1C018, 1C230, 1C231,                                   
 1C233, or 1C234.                                                       
MT applies to ``technology'' for items   MT Column 1.                   
 controlled by 1A002, 1A102, 1B001,                                     
 1B018, 1B101, 1B115, 1B116, 1C001,                                     
 1C007, 1C101, 1C107, 1C115 to 1C117,                                   
 or 1C216 for MT reasons.                                               
NP applies to ``technology'' for items   NP Column 1.                   
 controlled by 1A002, 1B001, 1B101,                                     
 1B201, 1B225 to 1B232, 1C001, 1C010,                                   
 1C202, 1C210, 1C216, 1C225 to 1C234,                                   
 1C236 to 1C238 for NP reasons.                                         
CB applies to ``technology'' for items   CB Column 1.                   
 controlled by 1C351, 1C352, 1C353, or                                  
 1C354.                                                                 
CB applies to ``technology'' for         CB Column 2.                   
 materials controlled by 1C350.                                         
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: The corresponding EU number captures 
controls related to 1C235. This EU entry is not contained on the CCL 
and is subject to the export licensing authority of the Nuclear 
Regulatory Commission (See 10 CFR part 110.)
    Items: The list of items controlled is contained in the ECCN 
heading.


1E002   Other ``technology''.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Technology'' for the ``development'' or ``production'' of 
polybenzothiazoles or polybenzoxazoles;
    b. ``Technology'' for the ``development'' or ``production'' of 
fluoroelastomer compounds containing at least one vinylether 
monomer;
    c. ``Technology'' for the design or ``production'' of the 
following base materials or non-``composite'' ceramic materials:
    c.1. Base materials having all the following characteristics:
    c.1.a. Any of the following compositions:
    c.1.a.1. Single or complex oxides of zirconium and complex 
oxides of silicon or aluminium;
    c.1.a.2. Single nitrides of boron (cubic crystalline forms);
    c.1.a.3. Single or complex carbides of silicon or boron; or
    
[[Page 12957]]

    c.1.a.4. Single or complex nitrides of silicon;
    c.1.b. Total metallic impurities, excluding intentional 
additions, of less than:
    c.1.b.1. 1,000 ppm for single oxides or carbides; or
    c.1.b.2. 5,000 ppm for complex compounds or single nitrides; and
    c.1.c.1. Average particle size equal to or less than 5 
micrometer and no more than 10% of the particles larger than 10 
micrometer; or
    N.B.: For zirconia, these limits are 1 micrometer and 5 
micrometer respectively;
    c.1.c.2.a. Platelets with a length to thickness ratio exceeding 
5;
    c.1.c.2.b. Whiskers with a length to diameter ratio exceeding 10 
for diameters less than 2 micrometer; and
    c.1.c.2.c. Continuous or chopped fibers less than 10 micrometer 
in diameter.
    c.2. Non-``composite'' ceramic materials, except abrasives, 
composed of the materials described in 1E002.c.1;
    d. ``Technology'' for the ``production'' of aromatic polyamide 
fibers;
    e. ``Technology'' for the installation, maintenance or repair of 
materials controlled by 1C001;
    f. ``Technology'' for the repair of ``composite'' structures, 
laminates or materials controlled by 1A002, 1C007.c, or 1C007.d.

    Note: 1E002.f does not control ``technology'' for the repair of 
``civil aircraft'' structures using carbon ``fibrous or filamentary 
materials'' and epoxy resins, contained in aircraft manufacturers' 
manuals.


1E101   ``Technology'' according to the General Technology Note for the 
``use'' of items controlled by 1A102, 1B001, 1B101, 1B115, 1B116, 
1C001, 1C101, 1C107 or 1C115 to 1C117 for MT reasons.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1E103   ``Technology'' (including processing conditions) and procedures 
for the regulation of temperature, pressures or atmosphere in 
autoclaves or hydroclaves when used for the ``production'' of 
``composites'' or partially processed ``composites''.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1E104   ``Technology'' for producing pyrolytically derived materials 
formed on a mould, mandrel, or other substrate from precursor gases 
that decompose at 1,300  deg.C to 2,900  deg.C temperature range at 
pressures of 130 Pa (1 mm Hg) to 20 kPa (150 mm Hg).

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: This entry includes ``technology'' for the 
composition of precursor gasses, flow-rates and process control 
schedules and parameters.
    Items: The list of items controlled is contained in the ECCN 
heading.


1E201   ``Technology'' according to the General Technology Note for the 
``use'' of items controlled by 1A002, 1A202, 1A225 to 1A227, 1A290, 
1B001.a, 1B101, 1B201, 1B225 to 1B232, 1C002.a.2.c or a.2.d, 1C010.b, 
1C202, 1C210, 1C216, 1C225 to 1C239 or 1D201 for NP reasons.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1E202   ``Technology'' according to the General Technology Note for the 
``development'' or ``production'' of items controlled by 1A202 or 1A225 
to 1A227, or 1A290.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1E203  ``Technology'' according to the General Technology Note for the 
``development'' of ``software'' controlled by 1D201.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1E350  ``Technology'' for the ``use'' of chemicals controlled by 1C350 
and for facilities designed or intended to produce chemicals controlled 
by 1C350.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 2.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Overall plant design;
    b. Design, specification, or procurement of equipment;
    
[[Page 12958]]

    c. Supervision of construction, installation, or operation of 
complete plant or components thereof;
    d. Training of personnel; and
    e. Consultation on specific problems involving such facilities.


1E351  ``Technology'' for the ``use'' of microbiological materials 
controlled by 1C351, 1C352, 1C353, or 1C354.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1E391  ``Technology'' for the disposal of chemicals or microbiological 
materials controlled by 1C350, 1C351, 1C352, 1C353, or 1C354.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to ``technology'' for the     CB Column 1.                   
 disposal of items controlled by 1C351,                                 
 1C352, 1C353, or 1C354.                                                
CB applies to ``technology'' for the     CB Column 2.                   
 disposal of items controlled by 1C350.                                 
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


1E994  ``Technology'' for the ``development'', ``production'', or 
``use'' of fibrous and filamentary materials controlled by 1C993 or 
fluorocarbon electronic cooling fluids controlled by 1C994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Category 2--Materials Processing

A. Equipment, Assemblies and Components


2A001  Ball bearings or solid roller bearings (except tapered roller 
bearings) having tolerances specified by the manufacturer in accordance 
with ABEC 7, ABEC 7P, or ABEC 7T or ISO Standard Class 4 or better (or 
equivalents) and having any of the following characteristics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: Quiet running bearings are subject to the 
export licensing authority of the Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121, Category VI.)
    Related Definitions: (1.) This entry does not control balls with 
tolerance specified by the manufacturer in accordance with ISO 3290 
as grade 5 or worse. (2.) (a) DN is the product of the bearing bore 
diameter in mm and the bearing rotational velocity in rpm. (b) 
Operating temperatures include those temperatures obtained when a 
gas turbine engine has stopped after operation. (3.) Annular Bearing 
Engineers Committee (ABEC)
    Items:
    a. Rings, balls or rollers made from monel or beryllium;
    b. Manufactured for use at operating temperatures above 573 K 
(300 deg. C) either by using special materials or by special heat 
treatment; or
    c. With lubricating elements or component modifications that, 
according to the manufacturer's specifications, are specially 
designed to enable the bearings to operate at speeds exceeding 2.3 
million DN.


2A002  Other ball bearings or solid roller bearings (except tapered 
roller bearings) having tolerances specified by the manufacturer in 
accordance with ABEC 9, ABEC 9P or ISO Standard Class 2 or better (or 
equivalents).

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: (1.) This entry does not control balls with 
tolerance specified by the manufacturer in accordance with ISO 3290 
as grade 5 or worse. (2.) (a) DN is the product of the bearing bore 
diameter in mm and the bearing rotational velocity in rpm. (b) 
Operating temperatures include those temperatures obtained when a 
gas turbine engine has stopped after operation. (3.) Annular Bearing 
Engineers Committee (ABEC)
    Items: The list of items controlled is contained in the ECCN 
heading.


2A003  Solid tapered roller bearings, having tolerances specified by 
the manufacturer in accordance with ANSI/AFBMA Class 00 (inch) or Class 
A (metric) or better (or equivalents) and having either of the 
following characteristics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: (1.) This entry does not control balls with 
tolerance specified by the manufacturer in accordance with ISO 3290 
as grade 5 or worse. (2.) (a) DN is the product of the bearing bore 
diameter in mm and the bearing rotational velocity in rpm. (b) 
Operating temperatures include those temperatures obtained when a 
gas turbine engine has stopped after operation. (3.) American 
National Standards Institute (ANSI); Anti-Friction Bearing 
Manufacturers Association (AFBMA)
    Items:

    a. With lubricating elements or component modifications that, 
according to the manufacturer's specifications, are specially 
designed to enable the bearings to operate at speeds exceeding 2.3 
million DN; or
    b. Manufactured for use at operating temperatures below 219 K 
(-54 deg.C) or above 423 K (150 deg. C).

[[Page 12959]]



2A004  Gas-lubricated foil bearing manufactured for use at operating 
temperatures of 561 K (288 deg. C) or higher and a unit load capacity 
exceeding 1 MPa.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: (a) DN is the product of the bearing bore 
diameter in mm and the bearing rotational velocity in rpm. (b) 
Operating temperatures include those temperatures obtained when a 
gas turbine engine has stopped after operation.
    Items: The list of items controlled is contained in the ECCN 
heading.


2A005  Active magnetic bearing systems.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: (a) DN is the product of the bearing bore 
diameter in mm and the bearing rotational velocity in rpm. (b) 
Operating temperatures include those temperatures obtained when a 
gas turbine engine has stopped after operation.
    Items: The list of items controlled is contained in the ECCN 
heading.


2A006  Fabric-lined self-aligning or fabric-lined journal sliding 
bearings manufactured for use at operating temperatures below 219 K(-54 
 deg.C) or above 423 K (150  deg.C).

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: (a) DN is the product of the bearing bore 
diameter in mm and the bearing rotational velocity in rpm. (b) 
Operating temperatures include those temperatures obtained when a 
gas turbine engine has stopped after operation.
    Items: The list of items controlled is contained in the ECCN 
heading.


2A225  Crucibles made of materials resistant to liquid actinide metals.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Crucibles with a volume between 150 ml and 8 liters, and made 
of or coated with any of the following materials having a purity of 
98% or greater:
    a.1. Calcium fluoride (CaF2);
    a.2. Calcium zirconate (metazirconate) (CaZrO3);
    a.3. Cerium sulfide (Ce2S3);
    a.4. Erbium oxide (erbia) (Er2O3);
    a.5. Hafnium oxide (hafnia) (HfO2);
    a.6. Magnesium oxide (MgO);
    a.7. Nitrided niobium-titanium-tungsten alloy (approximately 50% 
Nb, 30% Ti, and 20% W);
    a.8. Yttrium oxide (yttria) (Y2O3); or
    a.9. Zirconium oxide (zirconia) (ZrO2);
    b. Crucibles with a volume between 50 ml and 2 liters, and made 
of or lined with tantalum, having a purity of 99.9% or greater;
    c. Crucibles with a volume between 50 ml and 2 liters and made 
of or lined with tantalum (having a purity of 98% or greater) or 
coated with tantalum carbide, nitride, boride (or any combination of 
these).


2A226  Valves not controlled by 0B001 that are 5 mm (0.2 in.) or 
greater in nominal size, with a bellows seal, wholly made of or lined 
with aluminum, aluminum alloy, nickel, or alloy containing 60% or more 
nickel, either manually or automatically operated.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Valves are also subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 
CFR part 110.)
    Related Definition: For valves with different inlet and outlet 
diameter, the nominal size parameter above refers to the smallest 
diameter.
    Items: The list of items controlled is contained in the ECCN 
heading.


2A290  Generators and other equipment specially designed, prepared, or 
intended for use with nuclear plants.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Nuclear equipment is also subject to the 
export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
    Related Definitions: N/A
    Items:

    a. Generators, turbine-generator sets, steam turbines, heat 
exchangers, and heat exchanger type condensers designed or intended 
for use in a nuclear reactor;
    b. Process control systems intended for use with the equipment 
controlled by 2A290.a.


2A291  Equipment related to nuclear material handling and processing 
and to nuclear reactors.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: Nuclear equipment is also subject to the 
export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
    Related Definitions: N/A
    Items:


[[Page 12960]]

    a. Process control systems, except those controlled by 2A290.b, 
intended for use with nuclear reactors.
    b. Casks that are specially designed for transportation of high-
level radioactive material and that weigh more than 1,000 kg.
    c. Commodities, parts and accessories specially designed or 
prepared for use with nuclear plants (e.g., snubbers, airlocks, 
reactor and fuel inspection equipment) except items licensed by the 
Nuclear Regulatory Commission, pursuant to 10 CFR part 110.


2A292  Piping, fittings and valves made of, or lined with, stainless 
steel, copper-nickel alloy or other alloy steel containing 10% or more 
nickel and/or chromium.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Pressure tubes, pipes, and fittings in kilograms; valves 
in number; parts and accessories in $ value
    Related Controls: Piping, fittings, and valves are also subject 
to the export licensing authority of the Nuclear Regulatory 
Commission. (See 10 CFR part 110.)
    Related Definitions: N/A
    Items:

    a. Pressure tube, pipe, and fittings of 200 mm (8 inches) or 
more inside diameter, and suitable for operation at pressures of 3.4 
MPa (500 psi) or greater;
    b. Pipe valves having all of the following characteristics:
    b.1. A pipe size connection of 8 inches or more inside diameter;
    b.2. Rated at 1,500 psi or more;
    c. Parts, n.e.s.


2A293  Pumps designed to move molten metals by electromagnetic forces.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2A993  Explosive detection systems, consisting of an automated device, 
or combination of devices, with the ability to detect the presence of 
different types of explosives, in passenger checked baggage, without 
need for human skill, vigilance, or judgment.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2A994  Portable electric generators and specially designed parts.

License Requirements

    Reason for Control: AT

Control(s)

    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran, Libya, and North Korea. The 
Commerce Country Chart is not designed to determine licensing 
requirements for this entry. See part 746 of the EAR for additional 
information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 742.8 and Sec. 746.7 of the EAR for additional 
information on this requirement.)

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

B. Test, Inspection and Production Equipment

    Note for Category 2B: 2B001 to 2B009 do not control measuring 
interferometer systems, without closed or open loop feedback, 
containing a ``laser'' to measure slide movement errors of machine-
tools, dimensional inspection machines or similar equipment.


2B001  ``Numerical control'' units, ``motion control boards'', 
specially designed for ``numerical control'' applications on machine 
tools, machine tools, and specially designed components therefore.

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
NP applies to entire entry.............  NP Column 1.                   
Except as noted below: 2B001.a and .b    ...............................
 unless controlled ``software'' in                                      
 2D001 or 2D002.b resides therein,                                      
 2B001.c.1.b.1 (turning machines only),                                 
 c.1.b.2, c.1.b.3, c.1.b.4, c.1.b.5.b.2                                 
 (except bar machines (Swissturn),                                      
 limited to machining only bar feed                                     
 through, if maximum diameter is equal                                  
 to or less than 42mm and there is no                                   
 capability of mounting chucks.                                         
 Machines may have drilling and/or                                      
 milling capabilities for machining                                     
 parts with diameters less than 42 mm),                                 
 c.1.b.6, c.2. and c.4, turning                                         
 machines with capacity 35                                   
 mm in diameter, milling machines with                                  
 greater than 2 meters travel and worse                                 
 than 30 micron accuracy, or crankshaft                                 
 and camshaft grinding machines.                                        
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: Yes, for items described in Advisory Note 1
    CIV: Yes, for items described in Advisory Note 1

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    Technical Notes: 1. Secondary parallel contouring axes, e.g., 
the w-axis on horizontal boring mills or a secondary rotary axis the 
center line of which is parallel to the primary rotary axis, are not 
counted in the total number of contouring axes.
    Note: Rotary axes need not rotate over 360 deg.. A rotary axis 
can be driven by a linear device, e.g., a screw or a rack-and-
pinion.

    2. Axis nomenclature shall be in accordance with International 
Standard ISO 841, Numerical Control Machines--Axis and Motion 
Nomenclature.
    a. ``Numerical control'' units for machine tools, as follows, 
and specially designed components therefor:

[[Page 12961]]

    a.1. Having more than four interpolating axes that can be 
coordinated simultaneously for ``contouring control''; or
    a.2. Having two, three or four interpolating axes that can be 
coordinated simultaneously for ``contouring control'' and:
    a.2.a. Capable of ``real-time processing'' of data to modify, 
during the machining operation, tool path, feed rate and spindle 
data by either:
    a.2.a.1. Automatic calculation and modification of part program 
data for machining in two or more axes by means of measuring cycles 
and access to source data; or
    a.2.a.2. ``Adaptive control'' with more than one physical 
variable measured and processing by means of a computing model 
(strategy) to change one or more machining instructions to optimize 
the process; or
    a.2.b. Capable of receiving directly (on-line) and processing 
computer-aided-design (CAD) data for internal preparation of machine 
instructions; or
    a.2.c. Capable, without modification, according to the 
manufacturer's technical specifications, of accepting additional 
boards which would permit an increase above the control levels 
specified in 2B001, in the number of interpolating axes that can be 
coordinated simultaneously for ``contouring control'', even if they 
do not contain these additional boards;

    Note: 2B001.a does not control ``numerical control'' units if:
    a. Modified for and incorporated in uncontrolled machines; or
    b. Specially designed for uncontrolled machines.

    b. ``Motion control boards'' specially designed for machine 
tools and having any of the following characteristics:
    b.1. Interpolation in more than four axes;
    b.2. Capable of ``real time processing'' as described in 
2B001.a.2.a; or
    b.3. Capable of receiving and processing CAD data as described 
in 2B001.a.2.b;
    c. Machine tools, as follows, for removing or cutting metals, 
ceramics or composites, that, according to the manufacturer's 
technical specifications, can be equipped with electronic devices 
for simultaneous ``contouring control'' in two or more axes:
    c.1. Machine tools for turning, grinding, milling or any 
combination thereof that:
    c.1.a. Have two or more axes that can be coordinated 
simultaneously for ``contouring control''; and
    c.1.b. Have any of the following characteristics:
    c.1.b.1. Two or more contouring rotary axes;

    Technical Note: The c-axis on jig grinders used to maintain 
grinding wheels normal to the work surface is not considered a 
contouring rotary axis.

    c.1.b.2. One or more contouring ``tilting spindles'';

    Note: 2B001.c.1.b.2 applies to machine tools for grinding or 
milling only.

    c.1.b.3. ``Camming'' (axial displacement) in one revolution of 
the spindle less (better) than 0.0006 mm total indicator reading 
(TIR);

    Note: 2B001.c.1.b.3 applies to machine tools for turning only.

    c.1.b.4. ``Run out'' (out-of-true running) in one revolution of 
the spindle less (better) than 0.0006 mm total indicator reading 
(TIR);
    c.1.b.5. The ``positioning accuracies'', with all compensations 
available, are less (better) than:
    c.1.b.5.a. 0.001 deg. on any rotary axis; or
    c.1.b.5.b.1. 0.004 mm along any linear axis (overall 
positioning) for grinding machines;
    c.1.b.5.b.2. 0.006 mm along any linear axis (overall 
positioning) for turning or milling machines;
    N.B.: 2B001.c.1.b.5 does not control milling or turning machine 
tools with a positioning accuracy along one axis, with all 
compensations available, equal to or greater (worse) than 0.005 mm.

    Technical Note: The positioning accuracy of ``numerically 
controlled'' machine tools is to be determined and presented in 
accordance with ISO/DIS 230/2, paragraph 2.13, in conjunction with 
the requirements below:
    a. Test conditions (paragraph 3):
    1. For 12 hours before and during measurements, the machine tool 
and accuracy measuring equipment will be kept at the same ambient 
temperature. During the premeasurement time the slides of the 
machine will be continuously cycled in the same manner that the 
accuracy measurements will be taken;
    2. The machine shall be equipped with any mechanical, 
electronic, or software compensation to be exported with the 
machine;
    3. Accuracy of measuring equipment for the measurements shall be 
at least four times more accurate than the expected machine tool 
accuracy;
    4. Power supply for slide drives shall be as follows:
    a. Line voltage variation shall not exceed 10% of 
nominal rated voltage;
    b. Frequency variation shall not exceed 2 Hz of 
normal frequency;
    c. Lineouts or interrupted service are not permitted.
    b. Test program (paragraph 4):
    1. Feed rate (velocity of slides) during measurement shall be 
the rapid traverse rate;

    Note: In the case of machine tools that generate optical quality 
surfaces, the feedrate shall be equal to or less than 50 mm per 
minute.
    2. Measurements shall be made in an incremental manner from one 
limit of the axis travel to the other without returning to the 
starting position for each move to the target position;
    3. Axes not being measured shall be retained at mid travel 
during test of an axis.
    c. Presentation of test results (paragraph 2): The results of 
the measurement must include:
    1. Positioning accuracy (A); and
    2. The mean reversal error (B).
    c.1.b.6.a A ``positioning accuracy'' less (better) than 0.007 
mm; and
    c.1.b.6.b. A slide motion from rest for all slides within 20% of 
a motion command input for inputs of less than 0.5 micrometer;

    Technical Note: Minimum increment of motion test (slide motion 
from rest): The test is conducted only if the machine tool is 
equipped with a control unit the minimum increment of which is less 
(better) than 0.5 micrometer. Prepare the machine for testing in 
accordance with ISO 230.2 paragraphs 3.1, 3.2, 3.3. Conduct the test 
on each axis (slide) of the machine tool as follows:
    1. Move the axis over at least 50% of the maximum travel in plus 
and minus directions twice at maximum feed rate, rapid traverse rate 
or jog control;
    2. Wait at least 10 seconds;
    3. With manual data input, input the minimum programmable 
increment of the control unit;
    4. Measure the axis movement;
    5. Clear the control unit with the servo null, reset or whatever 
clears any signal (voltage) in the servo loop;
    6. Repeat steps 2 to 5 five times, twice in the same direction 
of the axis travel and three times in the opposite direction of 
travel for a total of six test points;
    7. If the axis movement is between 80% and 120% of the minimum 
programmable input for four of the six test points, the machine is 
controlled. For rotary axes, the measurement is taken 200 mm from 
the center of rotation.

    Note 1: 2B001.c.1 does not control cylindrical external, 
internal, and external-internal grinding machines having all of the 
following characteristics:
    a. Not centerless (shoe-type) grinding machines;
    b. Limited to cylindrical grinding;
    c. A maximum workpiece capacity of 150 mm diameter or length;
    d. Only two axes which can be coordinated simultaneously for 
``contouring control''; and
    e. No contouring c axis.

    Note 2: 2B001.c.1 does not control machines designed 
specifically as jig grinders having both of the following 
characteristics:
    a. Axes limited to x, y, c and a, where the c-axis is used to 
maintain the grinding wheel normal to the work surface and the a-
axis is configured to grind barrel cams; and
    b. A spindle ``run out'' not less (not better) than 0.0006 mm.

    Note 3: 2B001.c.1 does not control tool or cutter grinding 
machines having all of the following characteristics:
    a. Shipped as a complete system with ``software'' specially 
designed for the production of tools or cutters;
    b. No more than two rotary axes that can be coordinated 
simultaneously for ``contouring control'';
    c. ``Run out'' (out-of-true running) in one revolution of the 
spindle not less (not better) than 0.0006 mm total indicator reading 
(TIR); and
    d. The ``positioning accuracies'', with all compensations 
available, are not less (not better) than:
    1. 0.004 mm along any linear axis for overall positioning; or
    2. 0.001 deg. on any rotary axis.

    c.2. Electrical discharge machines (EDM) of the wire feed type 
that have five or more axes that can be coordinated simultaneously 
for ``contouring control'';
    c.3. Electrical discharge machines (EDM) of the non-wire type 
that have two or more rotary axes that can be coordinated 
simultaneously for ``contouring control'';

[[Page 12962]]

    c.4. Machine tools for removing metals, ceramics or composites:
    c.4.a. By means of:
    c.4.a.1. Water or other liquid jets, including those employing 
abrasive additives;
    c.4.a.2. Electron beam; or
    c.4.a.3. ``Laser'' beam; and
    c.4.b. Having two or more rotary axes that:
    c.4.b.1. Can be coordinated simultaneously for ``contouring 
control''; and
    c.4.b.2. Have a ``positioning accuracy'' of less (better) than 
0.003 deg.C.

    Technical Note: Machines capable of being simultaneously 
coordinated for contouring control in two or more rotary axes or one 
or more ``tilting spindles'', remain controlled regardless of the 
number of simultaneously coordinated contouring axes that can be 
controlled by the ``numerical control'' unit attached to the 
machine.


2B002  Non-''numerically controlled'' machine tools for generating 
optical quality surfaces.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Turning machines using a single point cutting tool and having 
all of the following characteristics:
    a.1. Slide ``positioning accuracy'' less (better) than 0.0005 mm 
per 300 mm of travel;
    a.2. Bidirectional slide positioning ``repeatability'' less 
(better) than 0.00025 mm per 300 mm of travel;
    a.3. Spindle ``run out'' and ``camming'' less (better) than 
0.0004 mm total indicator reading (TIR);
    a.4. Angular deviation of the slide movement (yaw, pitch and 
roll) less (better) than 2 seconds of arc, TIR, over full travel; 
and
    a.5. Slide perpendicularity less (better) than 0.001 mm per 300 
mm of travel;

    Technical Note: The bidirectional slide positioning 
``repeatability'' (R) of an axis is the maximum value of the 
repeatability of positioning at any position along or around the 
axis determined using the procedure and under the conditions 
specified in part 2.11 of ISO 230/2: 1988.

    b. Fly cutting machines having both of the following 
characteristics:
    b.1. Spindle ``run out'' and ``camming'' less (better) than 
0.004 mm TIR; and
    b.2. Angular deviation of slide movement (yaw, pitch and roll) 
less (better) than 2 seconds of arc, TIR, over full travel.


2B003  ``Numerically controlled'' or manual machine tools specially 
designed for cutting, finishing, grinding or honing either of the 
following classes of bevel or parallel axis hardened (Rc = 40 or 
more) gears, and specially designed components, controls and 
accessories therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: Yes for 2B003.a
    CIV: Yes for 2B003.a

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Hardened bevel gears finished to a quality of better than 
American Gear Manufacturers Association (AGMA) 13 (equivalent to ISO 
1328 class 4); or
    b. Hardened spur, helical and double-helical gears with a pitch 
diameter exceeding 1,250 mm and a face width of 15% of pitch 
diameter or larger finished to a quality of AGMA 14 or better 
(equivalent to ISO 1328 class 3).


2B004  Hot ``isostatic presses'' and specially designed dies, molds, 
components, accessories and controls therefor.

License Requirements

    Reason for Control: NS, MT, NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Having a controlled thermal environment within the closed 
cavity and possessing a chamber cavity with an inside diameter of 
406 mm or more; and
    b. Having:
    b.1. A maximum working pressure exceeding 207 MPa;
    b.2. A controlled thermal environment exceeding 1,773 K 
(1,500 deg. C); or
    b.3. A facility for hydrocarbon impregnation and removal of 
resultant gaseous degradation products.

    Technical Note: The inside chamber dimension is that of the 
chamber in which both the working temperature and the working 
pressure are achieved and does not include fixtures. That dimension 
will be the smaller of either the inside diameter of the pressure 
chamber or the inside diameter of the insulated furnace chamber, 
depending on which of the two chambers is located inside the other.


2B005  Equipment specially designed for deposition, processing and in-
process control of inorganic overlays, coatings and surface 
modification, for non-electronic substrates, by processes shown in the 
Table and associated Notes following 2E003.d, and specially designed 
automated handling, positioning, manipulation and control components 
therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $1000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Stored program controlled'' chemical vapor deposition (CVD) 
production equipment with both of the following:
    a.1. Process modified for one of the following:
    a.1.a. Pulsating CVD;
    a.1.b. Controlled nucleation thermal decomposition (CNTD); or
    a.1.c. Plasma enhanced or plasma assisted CVD; and
    a.2. Either of the following:
    a.2.a. Incorporating high vacuum (equal to or less than 0.01 Pa) 
rotating seals; or
    a.2.b. Incorporating in situ coating thickness control;
    b. ``Stored program controlled'' ion implantation production 
equipment having beam currents of 5 mA or more;
    c. ``Stored program controlled'' electron beam physical vapor 
deposition (EB-PVD) production equipment incorporating:
    c.1. Power systems rated for over 80 kW;
    c.2. A liquid pool level ``laser'' control system that regulates 
precisely the ingots feed rate; and
    c.3. A computer controlled rate monitor operating on the 
principle of photo-luminescence of the ionized atoms in the 
evaporant stream to control the deposition rate of a coating 
containing two or more elements;
    d. ``Stored program controlled'' plasma spraying production 
equipment having either of the following characteristics:
    d.1. Operating at reduced pressure controlled atmosphere (equal 
to or less than 10 kPa measured above and within 300 mm

[[Page 12963]]
of the gun nozzle exit) in a vacuum chamber capable of evacuation 
down to 0.01 Pa prior to the spraying process; or
    d.2. Incorporating in situ coating thickness control;
    e. ``Stored program controlled'' sputter deposition production 
equipment capable of current densities of 0.1 mA/mm2 or higher 
at a deposition rate of 15 micrometer/hr or more;
    f. ``Stored program controlled'' cathodic arc deposition 
production equipment incorporating a grid of electromagnets for 
steering control of the arc spot on the cathode;
    g. ``Stored program controlled'' ion plating production 
equipment allowing for the in situ measurement of either:
    g.1. Coating thickness on the substrate and rate control; or
    g.2. Optical characteristics.

    Note: 2B005.g does not control standard ion plating coating 
equipment for cutting or machining tools.


2B006  Dimensional inspection or measuring systems or equipment.

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
NP applies to 2B006.a, b and .c........  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definition: This entry does not control measuring 
interferometer systems, without closed or open loop feedback, 
containing a ``laser'' to measure slide movement errors of machine 
tools, dimensional inspection machines or similar equipment.
    Items:

    a. Computer controlled, ``numerically controlled'' or ``stored 
program controlled'' dimensional inspection machines, having both of 
the following characteristics:
    a.1. Two or more axes; and
    a.2. A one dimensional length ``measurement uncertainty'' equal 
to or less (better) than (1.25+L/1,000) micrometer tested with a 
probe with an ``accuracy'' of less (better) than 0.2 micrometer (L 
is the measured length in mm);
    b. Linear and angular displacement measuring instruments, as 
follows:
    b.1. Linear measuring instruments having any of the following 
characteristics:
    b.1.a. Non-contact type measuring systems with a ``resolution'' 
equal to or less (better) than 0.2 micrometer within a measuring 
range up to 0.2 mm;
    b.1.b. Linear voltage differential transformer systems with both 
of the following characteristics:
    b.1.b.1. ``Linearity'' equal to or less (better) than 0.1% 
within a measuring range up to 5 mm; and
    b.1.b.2. Drift equal to or less (better) than 0.1% per day at a 
standard ambient test room temperature 1 K; or
    b.1.c. Measuring systems having both of the following 
characteristics:
    b.1.c.1. Containing a ``laser''; and
    b.1.c.2. Maintaining, for at least 12 hours, over a temperature 
range of 1 K around a standard temperature and at a 
standard pressure:
    b.1.c.2.a. A ``resolution'' over their full scale of 0.1 
micrometer or less (better); and
    b.1.c.2.b. A ``measurement uncertainty'' equal to or less 
(better) than (0.2+L/2,000) micrometer (L is the measured length in 
mm);
    b.2. Angular measuring instruments having an ``angular position 
deviation'' equal to or less (better) than 0.00025 deg.;

    Note: 2B006.b.2 does not control optical instruments, such as 
autocollimators, using collimated light to detect angular 
displacement of a mirror.

    c. Systems for simultaneous linear-angular inspection of 
hemishells, having both of the following characteristics:
    c.1. ``Measurement uncertainty'' along any linear axis equal to 
or less (better) than 3.5 micrometer per 5 mm; and
    c.2. ``Angular position deviation'' equal to or less (better) 
than 0.02 deg.;
    d. Equipment for measuring surface irregularities, by measuring 
optical scatter as a function of angle, with a sensitivity of 0.5 nm 
or less (better);
    Notes: 1. Machine tools that can be used as measuring machines 
are controlled if they meet or exceed the criteria specified for the 
machine tool function or the measuring machine function.
    2. A machine described in 2B006 is controlled if it exceeds the 
control threshold anywhere within its operating range.
    Technical Notes: 1. The probe used in determining the 
``measurement uncertainty'' of a dimensional inspection system shall 
be as described in VDI/VDE 2617 Parts 2, 3, and 4.
    2. All measurement values in 2B006 represent permissible 
positive and negative deviations from the target value, i.e., not 
total band.


2B007  ``Robots'', and specially designed controllers and ``end-
effectors'' therefor.

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
NP applies to 2B007.b and .c and to      NP Column 1.                   
 specially designed controllers and                                     
 ``endeffectors'' therefor..                                            
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000, except 2B007.b and .c
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Capable in real time of full three-dimensional image 
processing or full three-dimensional scene analysis to generate or 
modify ``programs'' or to generate or modify numerical program data;

    Note: The scene analysis limitation does not include 
approximation of the third dimension by viewing at a given angle, or 
limited grey scale interpretation for the perception of depth or 
texture for the approved tasks (2\1/2\ D).

    b. Specially designed to comply with safety standards applicable 
to explosive munitions environments (i.e.) meeting electrical code 
ratings for high explosives); or
    c. Specially designed or rated as radiation hardened to 
withstand greater than 5 x 104 grays(Silicon) (5 x 106 
rad(Silicon)) without operational degradation.


2B008  Assemblies, units or inserts specially designed for machine 
tools, or for equipment controlled by 2B006 or 2B007.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: This entry does not control measuring 
interferometer systems, without closed or open loop feedback, 
containing a laser to measure slide movement errors of machine-
tools, dimensional inspection machines or similar equipment.
    Items:

    a. Spindle assemblies, consisting of spindles and bearings as a 
minimal assembly, with radial (``run out'') or axial (``camming'') 
axis motion in one revolution of the spindle less (better) than 
0.0006 mm total indicator reading (TIR);
    b. Linear position feedback units, e.g., inductive type devices, 
graduated scales, infrared systems or ``laser'' systems, having an 
overall ``accuracy'' less (better) than (800 + (600  x  L  x  
10-3))nm (L equals the effective length in mm);
    c. Rotary position feedback units, e.g., inductive type devices, 
graduated scales, infrared systems or ``laser'' systems, having an 
``accuracy'' less (better) than 0.00025 deg.;
    d. Slide way assemblies consisting of a minimal assembly of 
ways, bed and slide having all of the following characteristics:
    d.1. A yaw, pitch or roll of less (better) than 2 seconds of arc 
TIR (reference: ISO/DIS 230/1) over full travel;

[[Page 12964]]

    d.2. A horizontal straightness of less (better) than 2 
micrometer per 300 mm length; and
    d.3. A vertical straightness of less (better) than 2 micrometer 
per 300 mm length;
    e. Single point diamond cutting tool inserts, having all of the 
following characteristics:
    e.1. Flawless and chip-free cutting edge when magnified 400 
times in any direction;
    e.2. Cutting radius from 0.1 to 5 mm inclusive; and
    e.3. Cutting radius out-of-roundness less (better) than 0.002 mm 
TIR.


2B009  Specially designed printed circuit boards with mounted 
components, or ``compound rotary tables'' or ``tilting spindles'', 
capable of upgrading, according to the manufacturer's specifications, 
``numerical control'' units, machine tools or feed-back devices to or 
above the levels specified in ECCNs 2B001, 2B002, 2B003, 2B004, 2B005, 
2B006, 2B007, or 2B008.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2B018  Equipment on the International Munitions List.

License Requirements

    Reason for Control: NS, MT, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to specialized machinery,     MT Column 1.                   
 equipment, and gear for producing                                      
 rocket systems (including ballistic                                    
 missile systems, space launch                                          
 vehicles, and sounding rockets) and                                    
 unmanned air vehicle systems                                           
 (including cruise missile systems,                                     
 target drones, and reconnaissance                                      
 drones) usable in systems that are                                     
 controlled for MT reasons including                                    
 their propulsion systems and                                           
 components, and pyrolytic deposition                                   
 and densification equipment.                                           
RS applies to entire entry.............  RS Column 2.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: Yes for Advisory Note in this entry to 2B018
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in Sec. value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    Specialized machinery, equipment, gear, and specially designed 
parts and accessories therefor, including but not limited to the 
following, that are specially designed for the examination, 
manufacture, testing, and checking of arms, appliances, machines, 
and implements of war:
    a. Armor plate drilling machines, other than radial drilling 
machines;
    b. Armor plate planing machines;
    c. Armor plate quenching presses;
    d. Centrifugal casting machines capable of casting tubes 6 feet 
(183 cm) or more in length, with a wall thickness of 2 inches (5 cm) 
and over;
    e. Gun barrel rifling and broaching machines, and tools 
therefor;
    f. Gun barrel rifling machines;
    g. Gun barrel trepanning machines;
    h. Gun boring and turning machines;
    i. Gun honing machines of 6 feet (183 cm) stroke or more;
    j. Gun jump screw lathes;
    k. Gun rifling machines;
    l. Gun straightening presses;
    m. Induction hardening machines for tank turret rings and 
sprockets;
    n. Jigs and fixtures and other metal-working implements or 
accessories of the kinds exclusively designed for use in the 
manufacture of firearms, ordnance, and other stores and appliances 
for land, sea, or aerial warfare;
    o. Small arms chambering machines;
    p. Small arms deep hole drilling machines and drills therefor;
    q. Small arms rifling machines;
    r. Small arms spill boring machines;
    s. Tank turret bearing grinding machines.

    Advisory Note: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to Country Group 
D:1 of equipment used to determine the safety data of explosives, as 
required by the International Convention on the Transport of 
Dangerous Goods (C.I.M.) articles 3 and 4 in Annex 1 RID, provided 
that such equipment will be used only by the railway authorities of 
current C.I.M. members, or by the Government-accredited testing 
facilities in those countries, for the testing of explosives to 
transport safety standards, of the following description:

    a. Equipment for determining the ignition and deflagration 
temperatures;
    b. Equipment for steel-shell tests;
    c. Drophammers not exceeding 20 kg in weight for determining the 
sensitivity of explosives to shock;
    d. Equipment for determining the friction sensitivity of 
explosives when exposed to charges not exceeding 36 kg in weight.


2B104   Equipment and process controls designed or modified for 
densification and pyrolysis of structural composite rocket nozzles and 
reentry vehicle nose tips.

License Requirements

    Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
NP applies to 2B104.a..................  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: a. ``Isostatic presses'' other than those controlled by 
2B004 having all of the following characteristics:

    a.1. Capable of achieving a maximum working pressure of 10,000 
psi (69 MPa) or greater;
    a.2. Designed to achieve and maintain a controlled thermal 
environment of 873 K (600 deg. C) or greater; and
    a.3. Possessing a chamber cavity with an inside diameter of 254 
mm or greater;
    b. Chemical vapor deposition furnaces designed or modified for 
the densification of carbon-carbon composites.


2B115  Flow forming machines, and specially designed components 
therefor.

License Requirements

    Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
NP applies to 2B115.a..................  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definition: This entry controls only spin-forming 
machines combining the functions of spin-forming and flow-forming.
    Items: a. Flow-forming and spin-forming machines, and specially 
designed components therefor, that according to the manufacturer's 
technical specifications, can be equipped with ``numerical control'' 
units or a computer control; and

    b. Having more than two axes that can be coordinated 
simultaneously for ``contouring control''.

[[Page 12965]]



2B116  Vibration test systems, equipment, and components therefor.

License Requirements

    Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3,000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: NOTE: The term ``digital control'' refers 
to equipment, the functions of which are, partly or entirely, 
automatically controlled by stored and digitally coded electrical 
signals.
    Items: a. Vibration test systems employing feedback or closed 
loop techniques and incorporating a digital controler, capable of 
vibrating a system at 10 g RMS or more over the entire range 20 Hz 
to 2,000 Hz and imparting forces of 50 kN (11,250 lbs.), measured 
``bare table'', or greater;

    Note: NP controls in 2B116.a apply to electrodynamic vibration 
test systems, employing feedback or closed loop control techniques 
and incorporating a digital controller, capable of vibrating at 10 g 
RMS or more between 20 Hz and 2000 Hz and imparting forces of 50 kN 
(11,250 lbs.) measured ``bare table,'' or greater.

    b. Digital controllers, combined with specially designed 
vibration test ``software'', with a real-time bandwidth greater than 
5 kHz and designed for use with vibration test systems described in 
2B116.a;
    c. Vibration thrusters (shaker units), with or without 
associated amplifiers, capable of imparting a force of 50 kN (11,250 
lbs.), measured ``bare table'', or greater, and usable in vibration 
test systems described in 2B116.a;
    d. Test piece support structures and electronic units designed 
to combine multiple shaker units into a complete shaker system 
capable of providing an effective combined force of 50 kN, measured 
``bare table'', or greater, and usable in vibration test systems 
described in 2B116.a.


2B204  ``Isostatic presses,'' not controlled by 2B004 or 2B104, capable 
of achieving a maximum working pressure of 10,000 psi (69 MPa) or 
greater and having a chamber cavity with an inside diameter in excess 
of 152 mm (6 inches) and specially designed dies and moulds, and 
controls therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definition: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2B207  ``Robots'', and ``end-effectors'', other than those controlled 
by 2B007, specially designed to comply with safety standards applicable 
to handling explosives (i.e., meeting electrical code ratings for high 
explosives) and specially designed controllers therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2B215  Flow-forming and spin-forming machines other than those 
controlled by 2B115, and rotor-forming mandrels.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definition: This entry controls only spin-forming 
machines combining the functions of spin-forming and flow-forming.
    Items: a. Having three or more rollers (active or guiding); and
    a.1. According to the manufacturer's technical specifications, 
can be equipped with ``numerical control'' units or a computer 
control;
    b. Rotor-forming mandrels designed to form cylindrical rotors of 
inside diameter between 75 mm (3 in.) and 400 mm (16 in.).

    Note: This entry includes machines which have only a single 
roller designed to deform metal plus two auxiliary rollers which 
support the mandrel, but do not participate directly in the 
deformation process.


2B225  Remote manipulators that can be used to provide remote actions 
in radiochemical separation operations and hot cells.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: Remote manipulators provide translation of 
human operator actions to a remote operating arm and terminal 
fixture. They may be of a `master/slave' type or operated by 
joystick or keypad.
    Items:

    a. Having a capability of penetrating 0.6 m or more of hot cell 
wall (through-the-wall operation); or
    b. Having a capability of bridging over the top of a hot cell 
wall with a thickness of 0.6 m or more (over-the-wall operation)


2B226  Vacuum and controlled environment (inert gas) induction) 
furnaces capable of operating above 1,123 K (850'C) and having 
induction coils 600 mm or less in diameter and designed for power 
inputs of 5 kW or more, and power supplies specially designed therefor 
with a specified power output of 5 kW or more.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: This entry does not control furnaces 
designed for semiconductor wafer manufacturing or processing.
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 12966]]



2B227  Vacuum and controlled atmosphere metallurgical melting and 
casting furnaces, and specially configured computer control and 
monitoring systems therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: Related Definition: This entry does not 
control furnaces designed for semiconductor wafer manufacturing or 
processing.
    Items:

    a. Arc remelt and casting furnaces with consumable electrode 
capacities between 1,000 cm3 and 20,000 cm3, and capable 
of operating with melting temperatures above 1,973 K (1,700 deg. C);
    b. Electron beam melting and plasma atomization and melting 
furnaces with a power of 50 kW or greater and capable of operating 
with melting temperatures above 1,473 K (1,200 deg. C).


2B228  Rotor fabrication and assembly equipment and bellows-forming 
mandrels and dies.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: N/A
    Items:

    a. Rotor assembly equipment (e.g., precision mandrels, clamps, 
and shrink fit machines) for assembly of gas centrifuge rotor tube 
sections, baffles, and end caps.
    b. Rotor straightening equipment for alignment of gas centrifuge 
rotor tube sections to a common axis;

    Technical Note: Normally such equipment will consist of 
precision measuring probes linked to a computer that subsequently 
controls the action of, for example, pneumatic rams used for 
aligning the rotor tube sections.

    c. Bellows-forming mandrels and dies for producing single-
convolution bellows (bellows made of high-strength aluminum alloys, 
maraging steel, or high-strength filamentary materials) that have 
all of the following dimensions:
    c.1. 75 mm to 400 mm (3 in. to 6 in.) inside diameter;
    c.2. 12.7 mm (0.5 in) or more in length; and
    c.3. Single convolution depth more than 2 mm (0.08 in.).


2B229  Centrifugal balancing machines, fixed or portable, horizontal or 
vertical.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: a. Designed for balancing flexible rotors having a length 
of 600 mm (24 in.) or more and having all of the following 
characteristics:
    a.1. A swing or journal diameter of 75 mm (3 in.) or more;
    a.2. Mass capability for 0.9 kg (2 lb.) to 23 kg (50 lb.); and
    a.3. Capable of balancing speed of more than 5,000 rpm;
    b. Designed for balancing hollow cylindrical rotor components, 
and having all of the following characteristics:
    b.1. A journal diameter of 75 mm (3 in.) or more;
    b.2. Mass capability from 0.9 kg (2 lb.) to 23 kg (50 lb.);
    b.3. Capable of balancing to a residual imbalance of 0.010 kg-
mm/kg per plane or better; and
    b.4. Belt drive type.


2B230  Pressure transducers which are capable of measuring absolute 
pressure at any point in the range 0 to 13 kPa, with pressure sensing 
elements made of or protected by nickel, nickel alloys with more than 
60% nickel by weight, aluminum or aluminum alloys.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: (1.)Pressure transducers are devices that 
convert pressure measurements into an electrical signal. (2.) For 
the purposes of this entry, ``accuracy'' includes non-linearity, 
hysteresis and repeatability at ambient temperature.
    Items:

    a. Transducers with a full scale of less than 13 kPa and an 
accuracy of better than  1% of full scale;
    b. Transducers with a full scale of 13 kPa or greater and an 
accuracy of better than  130 Pa.


2B231  Vacuum pumps with an input throat size of 38 cm (15 in.) or 
greater with a pumping speed of 15,000 liters/second or greater and 
capable of producing an ultimate vacuum better than 10\4\ Torr 
(1.33 x 10-4 mbar).

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Vacuum pumps for gaseous diffusion separation 
process are subject to the export licensing authority of the Nuclear 
Regulatory Commission. (See 10 CFR part 110.)
    Related Definition: (1.) The ultimate vacuum is determined at 
the input of the pump with the input of the pump blocked off. (2.) 
The pumping speed is determined at the measurement point with 
nitrogen gas or air.
    Items: The list of items controlled is contained in the ECCN 
heading.


2B232  Multistage light gas guns or other high-velocity gun systems 
(coil, electromagnetic, electrothermal, or other advanced systems) 
capable of accelerating projectiles to 2 km/s or greater and 
specialized components therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    
[[Page 12967]]

    Items: The list of items controlled is contained in the ECCN 
heading.


2B290  ``Numerically controlled'' machine tools not controlled by 
2B001.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in Sec. value
    Related Controls: N/A
    Related Definition: N/A
    Items:

    a. Turning machines or combination turning/milling machines that 
are capable of machining diameters greater than 2.5 meters.
    b. Reserved.


2B350  Chemical manufacturing facilities and equipment.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 3.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: The controls in this entry do not apply to 
equipment that is; a.) specially designed for use in civil 
applications (e.g., food processing, pulp and paper processing, or 
water purification); AND b.) inappropriate, by the nature of its 
design, for use in storing, processing, producing or conducting and 
controlling the flow of chemical weapons precursors controlled by 
1C350.
    Related Definition: For purposes of this entry the term 
``chemical warfare agents'' are those agents subject to the export 
licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR Part 121, Category XIV)
    Items:

    a. Chemical processing equipment described in paragraph a.1 
having any of the flow contact surfaces described in paragraph a.2:
    a.1. Chemical processing equipment, as follows:
    a.1.a. Reaction vessels or reactors, with or without agitators, 
with a total internal (geometric) volume greater than 0.1 m3 
(100 liters) and less than 20 m3 (20,000 liters);
    a.1.b Agitators for use in reaction vessels or reactors 
described in 2B350.a.1.a;
    a.1.c. Storage tanks, containers or receivers with a total 
internal (geometric) volume greater than 0.1 m3 (100 1);
    a.1.d. Heat exchangers or condensers with a heat transfer 
surface area less than 20 m2;
    a.1.e. Distillation or absorption columns having a diameter 
greater than 0.1 m;
    a.1.f. Multiple seal valves incorporating a leak detection port, 
bellows-seal valves, non-return (check) valves or diaphragm valves; 
or
    a.1.g. Multi-walled piping incorporating a leak detection port;
    a.2. Where all surfaces that come into direct contact with the 
chemical(s) being processed or contained are made from any of the 
following materials:
    a.2.a. Nickel, or alloys with more than 40% nickel by weight;
    a.2.b. Alloys with more than 25% nickel and 20% chromium by 
weight;
    a.2.c. Fluoropolymers;
    a.2.d. Glass or glass-lined (including vitrified or enamelled 
coating);
    a.2.e. Graphite (for heat exchangers or condensers, distillation 
or absorption columns, or multi-walled piping only);
    a.2.f. Tantalum or tantalum alloys;
    a.2.g. Titanium or titanium alloys; or
    a.2.h. Zirconium or zirconium alloys.
    b. Remotely operated filling equipment in which all surfaces 
that come into direct contact with the chemical(s) being processed 
are made from any of the following materials:
    b.1. Nickel, or alloys with more than 40% nickel by weight; or
    b.2. Alloys with more than 25% nickel and 20% chromium by 
weight.
    c. Multi-seal, canned drive, magnetic, bellows, or diaphragm 
pumps, with manufacturer's specified maximum flow-rate greater than 
0.6m3/h, or vacuum pumps with the manufacturer's specified 
maximum flow-rate greater than 5 m3/h (under standard 
temperature (0 deg.C) and pressure (101.30 kPa) conditions) in which 
all surfaces that come into direct contact with the chemical(s) 
being processed are made from any of the following materials:
    c.1. Nickel, or alloys with more than 40% nickel by weight;
    c.2. Alloys with more than 25% nickel and 20% chromium by 
weight;
    c.3. Fluoropolymers;
    c.4. Glass or glass-lined (including vitrified or enamelled 
coating);
    c.5. Graphite;
    c.6. Tantalum or tantalum alloys;
    c.7. Titanium or titanium alloys;
    c.8. Zirconium or zirconium alloys;
    c.9. Ceramics; or
    c.10. Ferrosilicon.
    d. Incinerators that are designed to destroy chemical warfare 
agents, or chemical weapons precursors controlled by ECCN 1C350, 
having specially designed waste supply systems, special handling 
facilities with an average combustion chamber temperature greater 
than 1000 deg.C in which all surfaces in the waste supply system 
that come into direct contact with the waste products are made from 
or lined with any of the following materials:
    d.1. Nickel, or alloys with more than 40% nickel by weight;
    d.2. Alloys with more than 25% nickel and 20% chromium by 
weight; or
    d.3. Ceramics.


2B351  Toxic gas monitoring system; and dedicated detectors therefor.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 3.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Designed for continuous operation and usable for detecting 
chemical warfare agents controlled on the U.S. Munitions List (See 
22 CFR part 121) or chemical weapons precursors controlled by ECCN 
1C350, or detecting organic compounds containing phosphorus, 
sulphur, fluorine, or chlorine, or their compounds, at a 
concentration less than 0.3 mg/m3; and
    b. Designed for the detection of chemical compounds having a 
cholinesterase-inhibiting activity.


2B352  Biological equipment.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 3.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Complete containment facilities at P3 or P4 containment 
level;

    Technical Note: P3 or P4 (BL3, BL4, L3, L4) containment levels 
are as specified in the WHO Laboratory Biosafety Manual (Geneva, 
1983).

    b. Fermenters capable of cultivation of pathogenic micro-
organisms, viruses or for toxin production, without the propagation 
of aerosols, having a capacity equal to or greater than 100 liters.

    Technical Note: Fermenters include bioreactors, chemostats, and 
continuous-flow systems.


[[Page 12968]]

    c. Centrifugal separators capable of the continuous separation 
of pathogenic microorganisms, without the propagation of aerosols, 
and having all of the following characteristics:
    c.1. A flow rate greater than 100 liters per hour;
    c.2. Components of polished stainless steel or titanium;
    c.3. Double or multiple sealing joints within the stream 
containment area;
    c.4. Capable of in situ stream sterilization in a closed state.

    Technical Note: Centifugal separators include decanters.

    d. Cross-flow filtration equipment capable of continuous 
separation of pathogenic microorganisms, viruses, toxins, and cell 
cultures without the propagation of aerosols, having all of the 
following characteristics:
    d.1. Equal to or greater than 5 square meters;
    d.2. Capable of in situ sterilization.
    e. Steam sterilizable freeze-drying equipment with a condenser 
capacity greater than 50 kgs. but less than 1,000 kgs. of ice in 24 
hours.
    f. Equipment that incorporates or is contained in P3 or P4 
containment housing, as follows:
    f.1. Independently ventilated protective full or half suits; and
    f.2. Class III biological safety cabinets or isolators with 
similar performance standards;

    Note: In this entry, isolators include flexible isolators, dry 
boxes, anaerobic chambers and glove boxes.

    g. Chambers designed for aerosol challenge testing with 
microorganisms, viruses, or toxins and having a capacity of 1 
m3 or greater.


2B985  Equipment specially designed for manufacturing shotgun shells; 
and ammunition hand-loading equipment for both cartridges and shotgun 
shells.

License Requirements

    Reason for Control: UN

Control(s)

    UN applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Libya, North Korea and Rwanda. The 
Commerce Country Chart is not designed to determine licensing 
requirements for this entry. See part 746 of the EAR for additional 
information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See to Sec. 746.7 of the EAR for additional information on 
this requirement.)

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2B991  Numerical control units for machine tools and ``numerically 
controlled'' machine tools, n.e.s

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Numerical control'' units for machine tools:
    a.1. Having four interpolating axes that can be coordinated 
simultaneously for ``contouring control''; or
    a.2. Having two or more axes that can be coordinated 
simultaneously for ``contouring control'' and a minimum programmable 
increment better (less) than 0.001 mm;
    b. ``Numerically controlled'' machine tools that, according to 
the manufacturer's technical specifications, can be equipped with 
electronic devices for simultaneous ``contouring control'' in two or 
more axes and that have both of the following characteristics:
    b.1. Two or more axes that can be coordinated simultaneously for 
contouring control; and
    b.2. ``Positioning accuracies'', with all compensations 
available:
    b.2.a. Better than 0.020 mm, but no better than 0.004 mm along 
any linear axis (overall positioning) for grinding machines;
    b.2.b. Better than 0.020 mm, but no better than 0.006 mm along 
any linear axis (overall positioning) for milling machines; or
    b.2.c. Better than 0.020 mm, but no better than 0.010 mm along 
any linear axis (overall positioning) for turning machines.


2B992  Manual dimensional inspection machines with two or more axes, 
and measurement uncertainty equal to or less (better) than (3 + L/300) 
micrometer in any axes (L measured length in mm).

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled:

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2B993  Gearmaking and/or finishing machinery not controlled by 2B003 
capable of producing gears to a quality level of better than AGMA 11.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled:

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2B994  ``Robots'' not controlled by 2B007 or 2B207 that are capable of 
employing feedback information in real-time processing from one or more 
sensors to generate or modify ``programs'' or to generate or modify 
numerical program data.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials [Reserved]

D. Software


2D001  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled by 
2A001 to 2A007 or 2B001 to 2B009.

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``software'' for           MT Column 1.                   
 equipment controlled by 2B004.                                         
NP applies to ``software'' for           NP Column 1.                   
 equipment controlled by 2B001, 2B004,                                  
 2B006, 2B007 for NP reasons.                                           
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------


[[Page 12969]]


License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2D002  Specific ``software.''

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
NP applies to 2D002.b..................  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: Sec. value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Software'' to provide ``adaptive control'' and having both 
of the following characteristics:
    a.1. For ``flexible manufacturing units'' (FMUs) which consist 
at least of equipment described in b.1 and b.2 of the definition of 
``flexible manufacturing unit'' contained in part 772 of the EAR; 
and
    a.2. Capable of generating or modifying, in ``real time 
processing'', programs or data by using the signals obtained 
simultaneously by means of at least two detection techniques, such 
as:
    a.2.a. Machine vision (optical ranging);
    a.2.b. Infrared imaging;
    a.2.c. Acoustical imaging (acoustical ranging);
    a.2.d. Tactile measurement;
    a.2.e. Inertial positioning;
    a.2.f. Force measurement;
    a.2.g. Torque measurement;

    Note: 2D002.a does not control ``software'' which only provides 
rescheduling of functionally identical equipment within ``flexible 
manufacturing units'' using pre-stored part programs and a pre-
stored strategy for the distribution of the part programs.

    b. ``Software'' for electronic devices other than those 
described in 2B001.a or b, which provides the ``numerical control'' 
capability of the equipment controlled by 2B001.


2D018   ``Software'' for the ``development'', ``production'' or ``use'' 
of equipment controlled by 2B018.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``software'' for           MT Column 1.                   
 equipment controlled by 2B018 for MT                                   
 reasons.                                                               
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2D101   ``Software'' for the ``development'', ``production'', or 
``use'' of items controlled by 2B104, 2B115 or 2B116.

License Requirements

    Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2D201   ``Software'' specially designed for the ``development'', 
``production'' or ``use'' of items controlled by 2B204, 2B207, 2B215, 
2B227 or 2B229.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2D290   ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of items controlled by 
2A290, 2A291 or 2B290.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NP applies to ``software'' for           NP Column 1.                   
 equipment controlled by 2A291 or 2B290.                                
NP applies to ``software'' for           NP Column 2.                   
 equipment controlled by 2A290.                                         
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2D992   ``Software'' specially designed for the ``development'' or 
``production'' of equipment controlled by 2B992.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2D993   ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of equipment controlled by 2B991, 2B993, or 
2B994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2D994   ``Software'' specially designed for the ``development'' or 
``production'' of portable electric generators controlled by 2A994.

License Requirements

    Reason for Control: AT
    
[[Page 12970]]


Control(s)

    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran, Libya, and North Korea. The 
Commerce Country Chart is not designed to determine licensing 
requirements for this entry. See part 746 of the EAR for additional 
information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 742.8 and Sec. 746.7 for additional information 
on this requirement.)

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

E. Technology


2E001   ``Technology'' according to the General Technology Note for the 
``development'' of items controlled by 2A (except 2A993 and 2A994) or 
2B (except 2B018, 2B991 to 2B994) 2D (except 2D018, 2D992 to 2D994)

License Requirements

    Reason for Control: NS, MT, NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1.                   
 controlled by 2A001 to 2A006, 2B001 to                                 
 2B009, 2D001 or 2D002.                                                 
MT applies to ``technology'' for items   MT Column 1.                   
 controlled by 2B004, 2B018 or 2B116,                                   
 2D001 or 2D101 for MT reasons.                                         
NP applies to ``technology'' for items   NP Column 1.                   
 controlled by 2A292, 2A293, 2B001,                                     
 2B004, 2B006, 2B007, 2B104, 2B215,                                     
 2B225, 2B226, 2B228, 2B229, 2B231,                                     
 2B290, 2D001, 2D002 or 2D201 for NP                                    
 reasons.                                                               
NP applies to ``technology'' for         NP Column 2.                   
 equipment controlled by 2A290.                                         
CB applies to ``technology'' for         CB Column 3.                   
 equipment controlled by 2B350 to 2B352.                                
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2E002   ``Technology'' according to the General Technology Note for the 
``production'' of items controlled by 2A (except 2A993 and 2A994) or 2B 
(except 2B018, 2B991 to 2B994).

License Requirements

    Reason for Control: NS, MT, NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for         NS Column 1.                   
 equipment controlled by 2A001 to                                       
 2A006, 2B001 to 2B009.                                                 
MT applies to ``technology'' for         MT Column 1.                   
 equipment controlled by 2B004, 2B018,                                  
 and 2B116 for MT reasons.                                              
NP applies to ``technology'' for         NP Column 1.                   
 equipment controlled by 2A292, 2A293,                                  
 2B001, 2B004, 2B006, 2B007, 2B104,                                     
 2B215, 2B225, 2B226, 2B228, 2B229,                                     
 2B231, 2B290 NP reasons.                                               
NP applies to ``technology'' for         NP Column 2.                   
 equipment controlled by 2A290.                                         
CB applies to ``technology'' for         CB Column 3.                   
 equipment controlled by 2B350 to 2b352.                                
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2E003  Other ``technology''.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
NP applies to ``technology'' controlled  NP Column 1.                   
 by 2E003.a.1 or a.3..                                                  
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes, except 2E003.a.1, a.3, .b, and .d

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Technology'':

    a.1  For the ``development'' of interactive graphics as an 
integrated part in ``numerical control'' units for preparation or 
modification of part programs;
    a.2  For the ``development'' of generators of machine tool 
instructions (e.g., part programs) from design data residing inside 
``numerical control'' units;
    a.3  For the ``development'' of integration ``software'' for 
incorporation of expert systems for advanced decision support of 
shop floor operations into ``numerical control'' units;
    b. ``Technology'' for metal-working manufacturing processes, as 
follows:
    b.1. ``Technology'' for the design of tools, dies or fixtures 
specially designed for the following processes:
    b.1.a. ``Superplastic forming'';
    b.1.b. ``Diffusion bonding'';
    b.1.c. ``Direct-acting hydraulic pressing'';
    b.2. ``Technology'' consisting of process methods or parameters 
as listed below used to control:
    b.2.a. ``Superplastic forming'' of aluminium alloys, titanium 
alloys or ``superalloys'':
    b.2.a.1. Surface preparation;
    b.2.a.2. Strain rate;
    b.2.a.3. Temperature;
    b.2.a.4. Pressure;
    b.2.b. ``Diffusion bonding'' of ``superalloys'' or titanium 
alloys:
    b.2.b.1. Surface preparation;
    b.2.b.2. Temperature;
    b.2.b.3. Pressure;
    b.2.c. ``Direct-acting hydraulic pressing'' of aluminium alloys 
or titanium alloys:
    b.2.c.1. Pressure;
    b.2.c.2. Cycle time;
    b.2.d. ``Hot isostatic densification'' of titanium alloys, 
aluminium alloys or ``superalloys'':
    b.2.d.1. Temperature;
    b.2.d.2. Pressure;
    b.2.d.3. Cycle time;
    c. ``Technology'' for the ``development'' or ``production'' of 
hydraulic stretch-forming machines and dies therefor, for the 
manufacture of airframe structures;
    d. ``Technology'' for:
    d.1 The application of inorganic overlay coatings or inorganic 
surface modification coatings, specified in column 3 of the 
following Table;
    d.2 To non-electronic substrates, specified in column 2 of the 
following Table;
    d.3 By processes specified in column 1 of the following Table 
and defined in the Technical Note;

     Category 2E--Materials Processing Table; Deposition Techniques     
------------------------------------------------------------------------
   1. Coating Process (1)         2. Substrate      3. Resultant Coating
------------------------------------------------------------------------
A. Chemical Vapor Deposition  ``Superalloys''.....  Aluminides for      
 (CDV).                                              internal passages. 

[[Page 12971]]
                                                                        
                              Ceramics and Low-     Silicides.          
                               expansion glasses    Carbides.           
                               (14).                Dielectric layers   
                                                     (15).              
                              Carbon-carbon,        Silicides.          
                               Ceramic, and Metal   Carbides.           
                               matrix composites.   Refractory metals.  
                                                    Mixtures thereof    
                                                     (4).               
                                                    Dielectric layers   
                                                     (15).              
                                                    Aluminides          
                                                    Alloyed aluminides  
                                                     (2).               
                              Cemented tungsten     Carbides.           
                               carbide (16),        Tungsten.           
                               Silicon carbide.     Mixtures thereof.   
                                                     (4)                
                                                    Dielectric layers   
                                                     (15).              
                              Molybdenum and        Dielectric layers   
                               Molybdenum alloys.    (15).              
                              Beryllium and         Dielectric layers   
                               Beryllium alloys.     (15).              
                              Sensor window         Dielectric layers   
                               materials (9).        (15).              
B. Thermal-Evaporation                                                  
 Physical Vapor Deposition                                              
 (TE-PVD).                                                              
    1. Physical Vapor         ``Superalloys''.....  Alloyed silicides.  
     Deposition (PVD):                              Alloyed aluminides  
     Electron-Beam (EB-PVB).                         (2).               
                                                    MCrAlx (5).         
                                                    Modified zirconia   
                                                     (12).              
                                                    Silicides.          
                                                    Aluminides.         
                                                    Mixtures thereof    
                                                     (4).               
                              Ceramics and Low-     Dielectric layers   
                               expansion glasses     (15).              
                               (14).                                    
                              Corrosion resistant   MCrAlx (5).         
                               steel (7).           Modified zirconia   
                                                     (12).              
                                                    Mixtures thereof    
                                                     (4).               
                              Carbon-carbon,        Silicides.          
                               Ceramic and Metal    Carbides.           
                               matrix composites.   Refractory metals.  
                                                    Mixtures thereof    
                                                     (4).               
                                                    Dielectric layers   
                                                     (15).              
                              Cemented tungsten     Carbides.           
                               carbide (16),        Tungsten.           
                               Silicon carbide.     Mixtures thereof (4)
                                                    Dielectric layers   
                                                     (15).              
                              Molybdenum and        Dielectric layers   
                               Molybdenum alloys.    (15).              
                              Beryllium and         Dielectric layers   
                               Beryllium alloys.     (15).              
                                                    Borides.            
                              Sensor window         Dielectric layers   
                               materials (9).        (15).              
                              Titanium alloys (13)  Borides.            
                                                    Nitrides.           
    2. Ion assisted           Ceramics and Low-     Dielectric layers   
     resistive heating         expansion glasses     (15).              
     Physical Vapor            (14).                                    
     Deposition (Ion                                                    
     Plating).                                                          
                              Carbon-carbon,        Dielectric layers   
                               Ceramic and Metal     (15).              
                               matrix composites.                       
                              Cemented tungsten     Dielectric layers   
                               carbide (16),         (15).              
                               Silicon carbide.                         
                              Molybdenum and        Dielectric layers   
                               Molybdenum alloys.    (15).              
                              Beryllium and         Dielectric layers   
                               Beryllium alloys.     (15).              
                              Sensor window         Dielectric layers   
                               materials (9).        (15).              
    3. Physical Vapor         Ceramics and Low-     Silicides.          
     Deposition: ``laser''     expansion glasses    Dielectric layers   
     evaporation.              (14).                 (15).              
                              Carbon-carbon,        Dielectric layers   
                               Ceramic and Metal     (15).              
                               matrix composites.                       
                              Cemented tungsten     Dielectric layers   
                               carbide (16),         (15).              
                               Silicon carbide.                         
                              Molybdenum and        Dielectric layers   
                               Molybdenum alloys.    (15).              
                              Beryllium and         Dielectric layers   
                               Beryllium alloys.     (15).              
                              Sensor window         Dielectric layers   
                               materials (9).        (15).              
    4. Physical Vapor         ``Superalloys''.....  Alloyed silicides.  
     Deposition: cathodic                           Alloyed aluminides  
     arc discharge.                                  (2).               
                                                    MCrAlx (5).         
                              Polymers (11) and     Borides.            
                               Organic matrix       Carbides.           
                               composites.          Nitrides.           
C. Pack cementation (see A    Carbon-carbon,        Silicides.          
 above for out-of-pack         Ceramic and Metal    Carbides.           
 cementation) (10).            matrix composites.   Mixtures thereof    
                                                     (4).               

[[Page 12972]]
                                                                        
                              Titanium alloys (13)  Silicides.          
                                                    Aluminides.         
                                                    Alloyed aluminides  
                                                     (2).               
                              Refractory metals                         
                               and alloys (8).                          
D. Plasma spraying..........  Superalloys.........  MCrAlx (5).         
                                                    Modified zirconia   
                                                     (12).              
                                                    Mixtures thereof    
                                                     (4).               
                                                    Abradable.          
                                                    Nickel-Graphite.    
                                                    Abradable.          
                                                    Ni-Cr-Al-.          
                                                    Bentonite.          
                                                    Abradable.          
                                                    Al-Si-Polyester.    
                                                    Alloyed aluminides  
                                                     (2).               
                              Aluminum alloys (6).  MCrAlx (5).         
                                                    Modified zirconia   
                                                     (12).              
                                                    Silicides.          
                                                    Mixtures thereof    
                                                     (4).               
                              Refractory metals     Aluminides.         
                               and alloys (8).      Silicides.          
                                                    Carbides.           
                              Corrosion resistant   Modified zirconia   
                               steel (7).            (12).              
                                                    Mixtures thereof    
                                                     (4).               
                              Titanium alloys (13)  Carbides.           
                                                    Aluminides.         
                                                    Silicides.          
                                                    Alloyed aluminides  
                                                     (2).               
                                                    Abradable.          
                                                    Nickel-Graphite.    
                                                    Abradable.          
                                                    Ni-Cr-Al-.          
                                                    Bentonite.          
                                                    Abradable.          
                                                    Al-Si-Polyester.    
E. Slurry Deposition........  Refractory metals     Fused silicides.    
                               and alloys (8).      Fused aluminides    
                                                     except for         
                                                     resistance heating 
                                                     elements.          
                              Carbon-carbon,        Silicides.          
                               Ceramic and Metal    Carbides.           
                               matrix composites.   Mixtures thereof    
                                                     (4).               
F. Sputter Deposition.......  ``Superalloys''.....  Alloyed silicides.  
                                                    Alloyed aluminides  
                                                     (2).               
                                                    Noble metal modified
                                                     aluminides (3).    
                                                    MCrAlx (5).         
                                                    Modified zirconia   
                                                     (12).              
                                                    Platinum.           
                                                    Mixtures thereof    
                                                     (4).               
                              Ceramics and Low-     Silicides.          
                               expansion glasses    Platinum.           
                               (14).                Mixtures thereof.   
                                                     (4)                
                                                    Dielectric layers   
                                                     (15).              
                              Titanium alloys (13)  Borides.            
                                                    Nitrides.           
                                                    Oxides.             
                                                    Silicides.          
                                                    Aluminides.         
                                                    Alloyed aluminides  
                                                     (2).               
                                                    Carbides.           
                              Carbon-carbon,        Silicides.          
                               Ceramic and Metal    Carbides.           
                               matrix composites.   Refractory metals.  
                                                    Mixtures thereof    
                                                     (4).               
                                                    Dielectric layers   
                                                     (15).              
                              Cemented tungsten     Carbides.           
                               carbide (16),        Tungsten.           
                               Silicon carbide.     Mixtures thereof    
                                                     (4).               
                                                    Dielectric layers   
                                                     (15).              
                              Molybdenum and        Dielectric layers   
                               Molybdenum alloys.    (15).              
                              Beryllium and         Borides.            
                               Beryllium alloys.    Dielectric layers   
                                                     (15).              
                              Sensor window         Dielectric layers   
                               materials (9).        (15).              

[[Page 12973]]
                                                                        
                              Refractory metals     Aluminides.         
                               and alloys (8).      Silicides.          
                                                    Oxides.             
                                                    Carbides.           
G. Ion Implantation.........  High temperature      Additions of        
                               bearing steels.       Chromium, Tantalum,
                                                     or Niobium         
                                                     (Columbium).       
                              Titanium alloys (15)  Borides.            
                                                    Nitrides.           
                              Beryllium and         Borides.            
                               Beryllium alloys.                        
                              Cemented tungsten     Carbides.           
                               carbide (16).        Nitrides.           
------------------------------------------------------------------------



Notes to Table on Deposition Techniques

    1. The term ``coating process'' includes coating repair and 
refurbishing as well as original coating.
    2. The term ``alloyed aluminide'' coating includes single or 
multiple-step coatings in which an element or elements are deposited 
prior to or during application of the aluminide coating, even if 
these elements are deposited by another coating process. It does 
not, however, include the multiple use of single-step pack 
cementation processes to achieve alloyed aluminides.
    3. The term `noble metal modified aluminide' coating includes 
multiple-step coatings in which the noble metal or noble metals are 
laid down by some other coating process prior to application of the 
aluminide coating.
    4. Mixtures consist of infiltrated material, graded 
compositions, co-deposits and multilayer deposits and are obtained 
by one or more of the coating processes specified in the Table.
    5. MCrAlX refers to a coating alloy where M equals cobalt, iron, 
nickel or combinations thereof and X equals hafnium, yttrium, 
silicon, tantalum in any amount or other intentional additions over 
0.01 weight percent in various proportions and combinations, except:
    a. CoCrAlY coatings which contain less than 22 weight percent of 
chromium, less than 7 weight percent of aluminium and less than 2 
weight percent of yttrium;
    b. CoCrAlY coatings which contain 22 to 24 weight percent of 
chromium, 10 to 12 weight percent of aluminium and 0.5 to 0.7 weight 
percent of yttrium; or
    c. NiCrAlY coatings which contain 21 to 23 weight percent of 
chromium, 10 to 12 weight percent of aluminium and 0.9 to 1.1 weight 
percent of yttrium.
    6. The term ``aluminium alloys'' refers to alloys having an 
ultimate tensile strength of 190 MPa or more measured at 293 K 
(20 deg. C).
    7. The term `corrosion resistant steel' refers to AISI (American 
Iron and Steel Institute) 300 series or equivalent standard steels.
    8. Refractory metals consist of the following metals and their 
alloys: niobium (columbium), molybdenum, tungsten and tantalum.
    9. Sensor window materials, as follows: alumina, silicon, 
germanium, zinc sulphide, zinc selenide, gallium arsenide and the 
following metal halides: potassium iodide, potassium fluoride, or 
sensor window materials of more than 40 mm diameter for thallium 
bromide and thallium chlorobromide.
    10. ``Technology'' for single-step pack cementation of solid 
airfoils is not controlled by this Category.
    11. Polymers, as follows: polyimide, polyester, polysulfide, 
polycarbonates and polyurethanes.
    12. Modified zirconia refers to additions of other metal oxides, 
e.g., calcia, magnesia, yttria, hafnia, rare earth oxides, etc., to 
zirconia in order to stabilize certain crystallographic phases and 
phase compositions. Thermal barrier coatings made of zirconia, 
modified with calcia or magnesia by mixing or fusion, are not 
controlled.
    13. Titanium alloys refers to aerospace alloys having an 
ultimate tensile strength of 900 MPa or more measured at 293 K 
(20 deg. C).
    14. Low-expansion glasses refers to glasses which have a 
coefficient of thermal expansion of 1  x  10-7 K-1 or less 
measured at 293 K (20 deg. C).
    15. Dielectric layers are coatings constructed of multi-layers 
of insulator materials in which the interference properties of a 
design composed of materials of various refractive indices are used 
to reflect, transmit or absorb various wavelength bands. Dielectric 
layers refers to more than four dielectric layers or dielectric/
metal composite layers.
    16. Cemented tungsten carbide does not include cutting and 
forming tool materials consisting of tungsten carbide/(cobalt, 
nickel), titanium carbide/(cobalt, nickel), chromium carbide/nickel-
chromium and chromium arbide/nickel.

Technical Note to Table on Deposition Techniques

    Processes specified in Column 1 of the Table are defined as 
follows:
    a. Chemical Vapor Deposition (CVD) is an overlay coating or 
surface modification coating process wherein a metal, alloy, 
composite, dielectric or ceramic is deposited upon a heated 
substrate. Gaseous reactants are decomposed or combined in the 
vicinity of a substrate resulting in the deposition of the desired 
elemental, alloy or compound material on the substrate. Energy for 
this decomposition or chemical reaction process may be provided by 
the heat of the substrate, a glow discharge plasma, or ``laser'' 
irradiation.

    Note 1: CVD includes the following processes: directed gas flow 
out-of-pack deposition, pulsating CVD, controlled nucleation thermal 
decomposition (CNTD), plasma enhanced or plasma assisted CVD 
processes.
    Note 2: Pack denotes a substrate immersed in a powder mixture.
    Note 3: The gaseous reactants used in the out-of-pack process 
are produced using the same basic reactions and parameters as the 
pack cementation process, except that the substrate to be coated is 
not in contact with the powder mixture.

    b. Thermal Evaporation-Physical Vapor Deposition (TE-PVD) is an 
overlay coating process conducted in a vacuum with a pressure less 
than 0.1 Pa wherein a source of thermal energy is used to vaporize 
the coating material. This process results in the condensation, or 
deposition, of the evaporated species onto appropriately positioned 
substrates. The addition of gases to the vacuum chamber during the 
coating process to synthesize compound coatings is an ordinary 
modification of the process. The use of ion or electron beams, or 
plasma, to activate or assist the coating's deposition is also a 
common modification in this technique. The use of monitors to 
provide in-process measurement of optical characteristics and 
thickness of coatings can be a feature of these processes. Specific 
TE-PVD processes are as follows:
    1. Electron Beam PVD uses an electron beam to heat and evaporate 
the material which forms the coating;
    2. Resistive Heating PVD employs electrically resistive heating 
sources capable of producing a controlled and uniform flux of 
evaporated coating species;
    3. ``Laser'' Evaporation uses either pulsed or continuous wave 
``laser'' beams to heat the material which forms the coating;
    4. Cathodic Arc Deposition employs a consumable cathode of the 
material which forms the coating and has an arc discharge 
established on the surface by a momentary contact of a ground 
trigger. Controlled motion of arcing erodes the cathode surface 
creating a highly ionized plasma. The anode can be either a cone 
attached to the periphery of the cathode, through an insulator, or 
the chamber. Substrate biasing is used for non line-of-sight 
deposition.

    Note: This definition does not include random cathodic arc 
deposition with non-biased substrates.

    c. Ion Plating is a special modification of a general TE-PVD 
process in which a plasma

[[Page 12974]]
or an ion source is used to ionize the species to be deposited, and 
a negative bias is applied to the substrate in order to facilitate 
the extraction of the species to be deposited from the plasma. The 
introduction of reactive species, evaporation of solids within the 
process chamber, and the use of monitors to provide in-process 
measurement of optical characteristics and thicknesses of coatings 
are ordinary modifications of the process.
    d. Pack Cementation is a surface modification coating or overlay 
coating process wherein a substrate is immersed in a powder mixture 
(a pack), that consists of:
    1. The metallic powders that are to be deposited (usually 
aluminum, chromium, silicon or combinations thereof);
    2. An activator (normally a halide salt); and
    3. An inert powder, most frequently alumina. The substrate and 
powder mixture is contained within a retort which is heated to 
between 1,030 K (757 deg. C) to 1,375 K (1,102 deg. C) for 
sufficient time to deposit the coating.
    e. Plasma Spraying is an overlay coating process wherein a gun 
(spray torch) which produces and controls a plasma accepts powder or 
wire coating materials, melts them and propels them towards a 
substrate, whereon an integrally bonded coating is formed. Plasma 
spraying constitutes either low pressure plasma spraying or high 
velocity plasma spraying carried out underwater.

    Note 1: Low pressure means less than ambient atmospheric 
pressure.
    Note 2: High velocity refers to nozzle-exit gas velocity 
exceeding 750 m/s calculated at 293 K (20 deg. C) at 0.1 MPa.

    f. Slurry Deposition is a surface modification coating or 
overlay coating process wherein a metallic or ceramic powder with an 
organic binder is suspended in a liquid and is applied to a 
substrate by either spraying, dipping or painting, subsequent air or 
oven drying, and heat treatment to obtain the desired coating.
    g. Sputter Deposition is an overlay coating process based on a 
momentum transfer phenomenon, wherein positive ions are accelerated 
by an electric field towards the surface of a target (coating 
material). The kinetic energy of the impacting ions is sufficient to 
cause target surface atoms to be released and deposited on an 
appropriately positioned substrate.

    Note 1: The Table refers only to triode, magnetron or reactive 
sputter deposition which is used to increase adhesion of the coating 
and rate of deposition and to radio frequency (RF) augmented sputter 
deposition used to permit vaporization of non-metallic coating 
materials.
    Note 2: Low-energy ion beams (less than 5 keV) can be used to 
activate the deposition.

    h. Ion Implantation is a surface modification coating process in 
which the element to be alloyed is ionized, accelerated through a 
potential gradient and implanted into the surface region of the 
substrate. This includes processes in which ion implantation is 
performed simultaneously with electron beam physical vapor 
deposition or sputter deposition.

Accompanying Technical Information to Table on Deposition Techniques

    1. ``Technology'' for pretreatments of the substrates listed in 
the Table, as follows:
    a. Chemical stripping and cleaning bath cycle parameters, as 
follows:
    1. Bath composition;
    a. For the removal of old or defective coating corrosion product 
or foreign deposits;
    b. For preparation of virgin substrates;
    2. Time in bath;
    3. Temperature of bath;
    4. Number and sequences of wash cycles;
    b. Visual and macroscopic criteria for acceptance of the cleaned 
part;
    c. Heat treatment cycle parameters, as follows:
    1. Atmosphere parameters, as follows:
    a. Composition of the atmosphere;
    b. Pressure of the atmosphere;
    2. Temperature for heat treatment;
    3. Time of heat treatment;
    d. Substrate surface preparation parameters, as follows:
    1. Grit blasting parameters, as follows:
    a. Grit composition;
    b. Grit size and shape;
    c. Grit velocity;
    2. Time and sequence of cleaning cycle after grit blast;
    3. Surface finish parameters;
    e. Masking technique parameters, as follows:
    1. Material of mask;
    2. Location of mask;
    2. ``Technology'' for in situ quality assurance techniques for 
evaluation of the coating processes listed in the Table, as follows:
    a. Atmosphere parameters, as follows:
    1. Composition of the atmosphere;
    2. Pressure of the atmosphere;
    b. Time parameters;
    c. Temperature parameters;
    d. Thickness parameters;
    e. Index of refraction parameters;
    3. ``Technology'' for post deposition treatments of the coated 
substrates listed in the Table, as follows:
    a. Shot peening parameters, as follows:
    1. Shot composition;
    2. Shot size;
    3. Shot velocity;
    b. Post shot peening cleaning parameters;
    c. Heat treatment cycle parameters, as follows:
    1. Atmosphere parameters, as follows:
    a. Composition of the atmosphere;
    b. Pressure of the atmosphere;
    2. Time-temperature cycles;
    d. Post heat treatment visual and macroscopic criteria for 
acceptance of the coated substrates;
    4. ``Technology'' for quality assurance techniques for the 
evaluation of the coated substrates listed in the Table, as follows:
    a. Statistical sampling criteria;
    b. Microscopic criteria for:
    1. Magnification;
    2. Coating thickness uniformity;
    3. Coating integrity;
    4. Coating composition;
    5. Coating and substrates bonding;
    6. Microstructural uniformity.
    c. Criteria for optical properties assessment:
    1. Reflectance;
    2. Transmission;
    3. Absorption;
    4. Scatter;
    5. ``Technology'' and parameters related to specific coating and 
surface modification processes listed in the Table, as follows:
    a. For Chemical Vapor Deposition:
    1. Coating source composition and formulation;
    2. Carrier gas composition;
    3. Substrate temperature;
    4. Time-temperature-pressure cycles;
    5. Gas control and part manipulation;
    b. For Thermal Evaporation--Physical Vapor Deposition:
    1. Ingot or coating material source composition;
    2. Substrate temperature;
    3. Reactive gas composition;
    4. Ingot feed rate or material vaporization rate;
    5. Time-temperature-pressure cycles;
    6. Beam and part manipulation;
    7. ``Laser'' parameters, as follows:
    a. Wave length;
    b. Power density;
    c. Pulse length;
    d. Repetition ratio;
    e. Source;
    f. Substrate orientation;
    c. For Pack Cementation:
    1. Pack composition and formulation;
    2. Carrier gas composition;
    3. Time-temperature-pressure cycles;
    d. For Plasma Spraying:
    1. Powder composition, preparation and size distributions;
    2. Feed gas composition and parameters;
    3. Substrate temperature;
    4. Gun power parameters;
    5. Spray distance;
    6. Spray angle;
    7. Cover gas composition, pressure and flow rates;
    8. Gun control and part manipulation;
    e. For Sputter Deposition:
    1. Target composition and fabrication;
    2. Geometrical positioning of part and target;
    3. Reactive gas composition;
    4. Electrical bias;
    5. Time-temperature-pressure cycles;
    6. Triode power;
    7. Part manipulation;
    f. For Ion Implantation:
    1. Beam control and part manipulation;
    2. Ion source design details;
    3. Control techniques for ion beam and deposition rate 
parameters;
    4. Time-temperature-pressure cycles.
    g. For Ion Plating:
    1. Beam control and part manipulation;
    2. Ion source design details;
    3. Control techniques for ion beam and deposition rate 
parameters;
    4. Time-temperature-pressure cycles;
    5. Coating material feed rate and vaporization rate;
    6. Substrate temperature;
    7. Substrate bias parameters.


2E018  ``Technology'' for the ``use'' of equipment controlled by 2B018.

License Requirements

    Reason for Control: NS, MT, AT

[[Page 12975]]


------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``technology'' for         MT Column 1.                   
 equipment controlled by 2B018 for MT                                   
 reasons.                                                               
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2E101  ``Technology'' according to the General Technology Note for the 
``use'' of items or ``software'' controlled by 2B004, 2B104, 2B115, 
2B116 or 2D101.

License Requirements

    Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
NP applies to 2B004 and 2B104.a........  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions


    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2E201  ``Technology'' according to the General Technology Note for the 
``use'' of items or ``software'' controlled by 2A225, 2A226, 2B001, 
2B006, 2B007, 2B204, 2B207, 2B215, 2B225 to 2B232 or 2D201 for NP 
reasons.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions


    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2E290  ``Technology'' according to the General Technology Note for the 
``use'' of items controlled by 2A290, 2A291, 2A292, 2A293, 2A294, 29295 
and 2B290.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NP applies to ``technology'' for         NP Column 1.                   
 equipment controlled by 2A291 to 2A295                                 
 or 2B290.                                                              
NP applies to ``technology'' for         NP Column 2.                   
 equipment controlled by 2A290.                                         
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions


    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2E301  ``Technology'' for ``use'' of items controlled by 2B350, 2B351 
and 2B352.

License Requirements

    Reason for Control: CB, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 3.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions


    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The lists of items controlled are contained in the ECCN 
headings.


2E993  ``Technology'' for the ``use'' of equipment controlled by 2B991, 
2B992, 2B993, or 2B994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions


    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


2E994  ``Technology'' for the ``use'' of portable electric generators 
controlled by 2A994.

License Requirements

    Reason for Control: AT
    Control(s): AT applies to entire entry. A license is required 
for items controlled by this entry to Cuba, Iran, Libya, and North 
Korea. The Commerce Country Chart is not designed to determine 
licensing requirements for this entry. See part 746 of the EAR for 
additional information.

    Note: Exports from the U.S. and transshipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 742.8 and Sec. 746.7 of the EAR for additional 
information on this requirement.)

License Exceptions


    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes for Category 2

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, to satisfactory end-users in the People's 
Republic of China of machine tools for milling controlled by 
2B001.c.1 to civil end-users other than nuclear and aerospace, 
provided that they are not controlled by 2B001.c.1.b.1, c.1.b.4, 
c.1.b.5, or c.1.b.6.

    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, to satisfactory end-users in Country 
Group D:1 of equipment controlled by 2B006.b.1 to civil end-users 
not engaged in aerospace or nuclear activities.

Category 3--Electronics Design, Development and Production

A. Equipment, Assemblies and Components

    Note 1: The control status of equipment, devices and components 
described in Category 3A, other than those described in 3A001.a.3 to 
a.10, or 3A001.a.12, that are specially designed for or that have 
the same functional characteristics as other equipment are 
determined by the control status of the other equipment.
    Note 2: The control status of integrated circuits described in 
3A001.a.3 to a.9 or 3A001.a.12 that are unalterably programmed or 
designed for a specific function for other equipment is determined 
by the control status of the other equipment.

    N.B.: When the manufacturer or applicant cannot determine the 
control status of the other equipment, the control status of the 
integrated circuits is determined in 3A001.a.3 to a.9 or 3A001.a.12. 
If the

[[Page 12976]]
integrated circuit is a silicon-based ``microcomputer microcircuit'' 
or a microcontroller microcircuit described in 3A001.a.3 having an 
operand (data) word length of 8 bits or less, the control status of 
the integrated circuit is determined in 3A001.a.3.


3A001  Electronic devices and components.

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to 3A001.a.1.a..............  MT Column 1.                   
NP applies to 3A001.e.5................  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1500: 3A001.c; $3000: 3A001.b.1, b.2, b.3, .d, .e and .f; 
$5000: 3A001.a, and .b.4 to b.7
    GBS: Yes, except 3A001.a.1, b.1, b.3 to b.7, c to f
    CIV: Yes, except 3A001.a.1, a.2, a.5, a.6, a.9, a.10, and a.12, 
.b, .c, .d, .e, and .f

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: a. General purpose integrated circuits, as follows:

    Notes: 1. The control status of wafers (finished or unfinished), 
in which the function has been determined, is to be evaluated 
against the parameters of 3A001.a.

    2. Integrated circuits include the following types:
    ``Monolithic integrated circuits'';
    ``Hybrid integrated circuits'';
    ``Multichip integrated circuits'';
    ``Film type integrated circuits'', including silicon-on-sapphire 
integrated circuits;
    ``Optical integrated circuits''.
    a.1. Integrated circuits, designed or rated as radiation 
hardened to withstand either of the following:
    a.1.a. A total dose of 5 x 10\5\ Rads (Si), or higher; or
    a.1.b. A dose rate upset of 5 x 10\8\ Rads (Si)/s or higher;
    a.2. Integrated circuits described in 3A00l.a.3 to a.10 or 
3A00l.a.12, as follow:
    a.2.a. Rated for operation at an ambient temperature above 398 K 
(+125 deg. C);
    a.2.b. Rated for operation at an ambient temperature below 218 K 
(-55 deg. C); or
    a.2.c. Rated for operation over the entire ambient temperature 
range from 218 K (-55 deg. C) to 398 K (+125 deg. C);

    Note: 3A00l.a.2 does not apply to integrated circuits for civil 
automobile or railway train applications.

    a.3. ``Microprocessor microcircuits'', ``microcomputer 
microcircuits'' and microcontroller microcircuits, having any of the 
following:

    Note: 3A00l.a.3 includes digital signal processors, digital 
array processors and digital coprocessors.

    a.3.a An arithmetic logic unit with an access width of 32 bit or 
more and a ``composite theoretical performance'' (``CTP'') of 80 
million theoretical operations per second (Mtops) or more;
    a.3.b. Manufactured from a compound semiconductor and operating 
a clock frequency exceeding 40 MHz; or
    a.3.c. More than one data or instruction bus or serial 
communication port for external interconnection in a parallel 
processor with a transfer rate exceeding 2.5 Mbyte/s;
    a.4. Electrically erasable programmable read-only memories 
(EEPROMs), static random-access memories (SRAMs), and storage 
integrated circuits manufactured from a compound semiconductor, as 
follows:
    a.4.a. Electrically erasable programmable read-only memories 
(EEPROMs) with a storage capacity:
    a.4.a.1. Exceeding 16 Mbit per package for flash memory types; 
or
    a.4.a.2. Exceeding either of the following limits for all other 
EEPROM types:
    a.4.a.2.a. 4 Mbit per package; or
    a.4.a.2.b. 1 Mbit per package and having a maximum access time 
of less than 80 ns;
    a.4.b. Static random-access memories (SRAMs) with a storage 
capacity:
    a.4.b.1. Exceeding 4 Mbit per package; or
    b.4.b.2. Exceeding 1 Mbit per package and having a maximum 
access time of less than 20 ns;
    a.4.c. Storage integrated circuits manufactured from a compound 
semiconductor;
    a.5. Analog-to-digital and digital-to-analog converter 
integrated circuits, as follows:
    a.5.a. Analog-to-digital converters having any of the following:
    a.5.a.1. A resolution of 8 bits or more, but less than 12 bits, 
with a total conversion time to maximum resolution of less than 10 
ns;
    a.5.a.2. A resolution of 12 bits with a total conversion time to 
maximum resolution of less than 200 ns; or
    a.5.a.3. A resolution of more than 12 bits with a total 
conversion time to maximum resolution of less than 2 microseconds;
    a.5.b. Digital-to-analog converters with a resolution of 12 bits 
or more, and a ``settling time'' of less than 10 ns;
    a.6. Electro-optical or ``optical integrated circuits'' for 
``signal processing'' having all of the following:
    a.6.a. One or more internal ``laser'' diodes;
    a.6.b. One or more internal light detecting elements; and
    a.6.c. Optical waveguides;
    a.7. Field programmable gate arrays having either of the 
following:
    a.7.a. An equivalent usable gate count of more than 30,000 (2 
input gates); or
    a.7.b. A typical ``basic gate propagation delay time'' of less 
than 0.4 ns;
    a.8. Field programmable logic arrays having either of the 
following:
    a.8.a. An equivalent usable gate count of more than 30,000 (2 
input gates); or
    b. A toggle frequency exceeding 133 MHz;
    a.9. Neural network integrated circuits;
    a.10. Custom integrated circuits for which either the function 
is unknown, or the control status of the equipment in which the 
integrated circuits will be used is unknown to the manufacturer, 
having any of the following:
    a.10.a. More than 144 terminals;
    a.10.b. A typical ``basic gate propagation delay time'' of less 
than 0.4 ns; or
    a.10.c. An operating frequency exceeding 3 GHz;
    a.11. Digital integrated circuits, other than those described in 
3A001.a.3 to a.l0 or 3A001.a.12, based upon any compound 
semiconductor and having either of the following:
    a.11.a. An equivalent gate count of more than 300 (2 input 
gates); or
    a.11.b. A toggle frequency exceeding 1.2 GHz;
    a.12. Fast Fourier Transform (FFT) processors having any of the 
following characteristics:
    a.12.a. A rated execution time for a 1,024 point complex FFT of 
less than 1 ms;
    a.12.b. A rated execution time for an N-point complex FFT of 
other than 1,024 points of less than N log2 N/10,240 ms, where 
N is the number of points; or
    a.12.c. A butterfly throughput of more than 5.12 MHz;
    b. Microwave or millimeter wave devices:
    b.1. Electronic vacuum tubes and cathodes, as follows:
    (Frequency agile magnetron tubes are subject to the export 
licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. See 22 CFR part 121, Category XI.)

    Note: 3A001.b.1 does not control tubes designed or rated to 
operate in the Standard Civil Telecommunications Bands at 
frequencies not exceeding 31 GHz.

    b.1.a. Traveling wave tubes, pulsed or continuous wave, as 
follows:
    b.1.a.1 Operating at frequencies higher than 31 GHz;
    b.1.a.2. Having a cathode heater element with a turn on time to 
rated RF power of less than 3 seconds;
    b.1.a.3. Coupled cavity tubes, or derivatives thereof, with an 
``instantaneous bandwidth'' of more than 7% or a peak power 
exceeding 2.5 kW;
    b.1.a.4. Helix tubes, or derivatives thereof, with any of the 
following characteristics:
    b.1.a.4.a. An ``instantaneous bandwidth'' of more than one 
octave, and average power (expressed in kW) times frequency 
(expressed in GHz) of more than 0.5;
    b.1.a.4.b. An ``instantaneous bandwidth'' of one octave or less, 
and average power (expressed in kW) times frequency (expressed in 
GHz) of more than 1; or
    b.1.a.4.c. ``Space qualified'';
    b.1.b. Crossed-field amplifier tubes with a gain of more than 17 
dB;
    b.1.c. Impregnated cathodes for electronic tubes, with either of 
the following:
    b.1.c.1. Having a turn on time to rated emission of less than 3 
seconds; or
    b.1.c.2. Producing a continuous emission current density at 
rated operating conditions exceeding 5 A/cm2;
    b.2. Microwave integrated circuits or modules containing 
``monolithic integrated circuits'' operating at frequencies 
exceeding 3 GHz;

    Note: 3A001.b.2 does not control circuits or modules for 
equipment designed or rated to operate in the Standard Civil

[[Page 12977]]
Telecommunications Bands at frequencies not exceeding 31 GHz.

    b.3. Microwave transistors rated for operation at frequencies 
exceeding 31 GHz;
    b.4. Microwave solid state amplifiers, as follows:
    b.4.a. Operating at frequencies exceeding 10.5 GHz and having an 
``instantaneous bandwidth'' of more than half an octave; or
    b.4.b. Operating at frequencies exceeding 31 GHz;
    b.5. Electronically or magnetically tunable band-pass or band-
stop filters having more than 5 tunable resonators capable of tuning 
across a 1.5:1 frequency band (fmax/fmin) in less than 10 
microseconds with either:
    b.5.a. A band-pass bandwidth of more than 0.5 % of center 
frequency; or
    b.5.b. A band-stop bandwidth of less than 0.5 percent of center 
frequency;
    b.6. Microwave assemblies capable of operating at frequencies 
exceeding 31 GHz;
    b.7. Mixers and converters designed to extend the frequency 
range of equipment described in 3A002.c, 3A002.e or 3A002.f beyond 
the control limits stated therein;
    c. Acoustic wave devices, as follows, and specially designed 
components therefor:
    c.1. Surface acoustic wave and surface skimming (shallow bulk) 
acoustic wave devices (i.e., ``signal processing'' devices employing 
elastic waves in materials), having any of the following:
    c.1.a. A carrier frequency exceeding 2.5 GHz;
    c.1.b. A carrier frequency 2.5 GHz or less, and:
    c.1.b.1. A frequency side-lobe rejection exceeding 55 dB;
    c.1.b.2. A product of the maximum delay time and the bandwidth 
(time in microseconds and bandwidth in MHz) of more than 100; or
    c.1.b.3. A dispersive delay of more than 10 microseconds; or
    c.1.c. A carrier frequency exceeding 1 GHz and a bandwidth of 
250 MHz or more;
    c.2. Bulk (volume) acoustic wave devices (i.e., ``signal 
processing'' devices employing elastic waves) that permit the direct 
processing of signals at frequencies exceeding 1 GHz;
    c.3. Acoustic-optic ``signal processing'' devices employing 
interaction between acoustic waves (bulk wave or surface wave) and 
light waves that permit the direct processing of signals or images, 
including spectral analysis, correlation or convolution;
    d. Electronic devices or circuits containing components, 
manufactured from ``superconductive'' materials specially designed 
for operation at temperatures below the ``critical temperature'' of 
at least one of the ``superconductive'' constituents, with any of 
the following:
    d.1. Electromagnetic amplification:
    d.1.a. At frequencies equal to or less than 31 GHz with a noise 
figure of less than 0.5 dB; or
    d.1.b. At frequencies exceeding 31 GHz;
    d.2. Current switching for digital circuits using 
``superconductive'' gates with a product of delay time per gate (in 
seconds) and power dissipation per gate (in watts) of less than 
10-14 J; or
    d.3. Frequency selection at all frequencies using resonant 
circuits with Q-values exceeding 10,000;
    e. High energy devices, as follows:
    e.1. Batteries, as follows:

    Note: 3A001.e.1 does not control batteries with volumes equal to 
or less than 27 cm3 (e.g., standard C-cells or R 14 batteries).

    e.1.a. Primary cells and batteries having an energy density 
exceeding 480 Wh/kg and rated for operation in the temperature range 
from below 243 K (-30 deg. C) to above 343 K (70 deg. C);
    e.1.b. Rechargeable cells and batteries having an energy density 
exceeding 150 Wh/kg after 75 charge/discharge cycles at a discharge 
current equal to C/5 hours (C being the nominal capacity in ampere 
hours) when operating in the temperature range from below 253 K 
(-20 deg. C) to above 333 K (60 deg. C);

    Technical Note: Energy density is obtained by multiplying the 
average power in watts (average voltage in volts times average 
current in amperes) by the duration of the discharge in hours to 75% 
of the open circuit voltage divided by the total mass of the cell 
(or battery) in kg.

    e.1.c. ``Space qualified'' and radiation hardened photovoltaic 
arrays with a specific power exceeding 160 W/m2 at an operating 
temperature of 301 K (28 deg. C) under a tungsten illumination of 1 
kW/m2 at 2,800 K (2,527 deg. C);
    e.2. High energy storage capacitors, as follows:
    e.2.a. Capacitors with a repetition rate of less than 10 Hz 
(single shot capacitors) having all of the following:
    e.2.a.1. A voltage rating equal, to or more than 5 kV;
    e.2.a.2. An energy density equal to or more than 250 J/kg; and
    e.2.a.3. A total energy equal to or more than 25 kJ;
    e.2.b. Capacitors with a repetition rate of 10 Hz or more 
(repetition rated capacitors) having all of the following:
    e.2.b.1. A voltage rating equal to or more than 5 kv;
    e.2.b.2. An energy density equal to or more than 50 J/kg;
    e.2.b.3. A total energy equal to or more than 100 J; and
    e.2.b.4. A charge/discharge cycle life equal to or more than 
10,000;
    e.3. ``Superconductive'' electromagnets or solenoids specially 
designed to be fully charged or discharged in less than one second, 
having all of the following:
    e.3.a. Energy delivered during the discharge exceeding 10 kJ in 
the first second;
    e.3.b. Inner diameter of the current carrying windings of more 
than 250 mm; and
    e.3.c. Rated for a magnetic induction of more than 8 T or 
``overall current density'' in the winding of more than 300 A/
mm2;

    Note: 3A001.e.3. does not control ``superconductive'' 
electromagnets or solenoids specially designed for Magnetic 
Resonance Imaging (MRI) medical equipment.

    e.4. Circuits or systems for electromagnetic energy storage, 
containing components manufactured from ``superconductive'' 
materials specially designed for operation at temperatures below the 
``critical temperature of at least one of their ``superconductive'' 
constituents, having all of the following:
    e.4.a. Resonant operating frequencies exceeding 1 MHz;
    e.4.b. A stored energy density of 1 MJ/m 3 or more; and
    3.4.c. A discharge time of less than 1 ms; e.5. Flash discharge 
type X-ray systems, and tubes therefor, having all of the following:
    e.5.a. A peak power exceeding 500 MW;
    e.5.b. An output voltage exceeding 500 kV; and
    e.5.c. A pulse width of less than 0.2 microsecond;
    f. Rotary input type shaft absolute position encoders having 
either of the following:
    f.1. A resolution of better than 1 part in 265,000 (18 bit 
resolution) of full scale; or
    f.2. An accuracy better than  2.5 seconds of arc.


3A002  General purpose electronic equipment.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000: 3A002.a, .e, .f, .g; $5000: 3A002.b to d, and 
3A002.h
    GBS: Yes for 3A002.a.1. 3A002.h and a.2, .b, d.2, as described 
in Advisory Note 1 to Category 3
    CIV: Yes for 3A002.h, and a.1, a.2, .b, d.2, as described in 
Advisory Note 1 to Category 3

List of Items Controlled

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

    a. Recording equipment, as follows, and specially designed test 
tape therefor:
    a.1. Analog instrumentation magnetic tape recorders, including 
those permitting the recording of digital signals (e.g., using a 
high density digital recording (HDDR) module), having any of the 
following:
    a.1.a. A bandwidth exceeding 4 MHz per electronic channel or 
track;
    a.1.b. A bandwidth exceeding 2 MHz per electronic channel or 
track and having more than 42 tracks; or
    a.1.c. A time displacement (base) error, measured in accordance 
with applicable Inter Range Instrumentation Group (IRIG) or 
Electronic Industries Association (EIA) documents, of less than #0.1 
microsecond;
    a.2. Digital video magnetic tape recorders having a maximum 
digital interface transfer rate exceeding 180 Mbit/s, except those 
specially designed for television recording using a signal format as 
standardized or recommended by the International Radio Consultative 
Committee (CCIR) or the International Technical Commission (IEC) for 
civil television applications;

[[Page 12978]]

    a.3. Digital instrumentation magnetic tape data recorders 
employing helical scan techniques or fixed head techniques, having 
either of the following characteristics:
    a.3.a. A maximum digital interface transfer rate exceeding 175 
Mbits/s; or
    a.3. b. ``Space qualified'';

    Note: 3A002.a.3 does not control analog magnetic tape recorders 
equipped with HDDR conversion electronics and configured to record 
only digital data.

    a.4. Equipment, with a maximum digital interface transfer rate 
exceeding 175 Mbit/s, designed to convert digital video magnetic 
tape recorders for use as digital instrumentation data recorders;
    a.5. Waveform digitizers and transient recorders with both of 
the following characteristics:
    a.5.a. Digitizing rates equal to or more than 200 million 
samples per second and a resolution of 10 bits or more; and
    a.5.b. A continuous throughput of 2 Gbits/s or more;

    Technical Note: For those instruments with a parallel bus 
architecture, the continuous throughput rates the highest word rate 
multiplied by the number of bits in a word. Continuous throughput is 
the fastest data rate the instrument can output to mass storage 
without the loss of any information while sustaining the sampling 
rate and analog-to-digital conversion.

    b. ``Frequency synthesizer'' ``electronic assemblies'' having a 
``frequency switching time'' from one selected frequency to another 
of less than 1 ms;
    c. ``Signal analyzers'', as follows:
    c.1. Capable of analyzing frequencies exceeding 31 GHz;
    c.2. ``Dynamic signal analyzers'' with a ``real-time bandwidth'' 
exceeding 25.6 kHz, except those using only constant percentage 
bandwidth filters (also known as octave or fractional octave 
filters);
    d. Frequency synthesized signal generators producing output 
frequencies, the accuracy and short term and long term stability of 
which are controlled, derived from or disciplined by the internal 
master frequency, and having any of the following:
    d.1. A maximum synthesized frequency exceeding 31 GHz;
    d.2. A ``frequency switching time'' from one selected frequency 
to another of less than 1 ms; or
    d.3. A single sideband (SSB) phase noise better than 
-(126+20log10F-20 log10f) in dBc/Hz, where F is the off-
set from the operating frequency in Hz and f is the operating 
frequency in MHz;

    Note: 3A002.d does not control equipment in which the output 
frequency is either produced by the addition or subtraction of two 
or more crystal oscillator frequencies, or by an addition or 
subtraction followed by a multiplication of the result.

    e. Network analyzers with a maximum operating frequency 
exceeding 31 GHz;

    Note: 3A002.e does not control ``swept frequency network 
analyzers'' with a maximum operating frequency not exceeding 40 GHz 
and that do not contain a data bus for remote control interfacing.

    f. Microwave test receivers with both of the following:
    f.1. A maximum operating frequency exceeding 31 GHz; and
    f.2. Capable of measuring amplitude and phase simultaneously;
    g. Atomic frequency standards having either of the following 
characteristics:
    g.1. Long term stability (aging) less (better) than 1 x 10 
-11/month; or
    g.2. ``Space qualified'';

    Note: 3A002.g.1 does not control non-``space qualified'' 
rubidium standards.

    h. Emulators for microcircuits controlled by 3A001.a.3 or 
3A001.a.9.

    Note: 3A002.h does not control emulators designed for a 
``family'' that contains at least one device not controlled by 
3A001.a.3 or 3A001.a.9.


3A101  Electronic equipment, devices and components, other than those 
specified in 3A001.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

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

List of Items Controlled

    Unit: Number
    Related Controls: The corresponding EU list number controls 
analog-to-digital converters, usable in ``missiles'', designed to 
meet military specifications for ruggedized equipment in 1A101.a. 
These items are not controlled by this CCL entry. These items are 
subject to the export licensing authority of the U.S. Departement of 
State, Office of Defense Trade Controls (See 22 CFR 121.16, Item 
14--Category II).
    Related Definitions: N/A
    Items:

    a. Reserved.
    b. Accelerators capable of delivering electromagnetic radiation 
produced by bremsstrahlung from accelerated electrons of 2Mev or 
greater, and systems containing those accelerators, excluding that 
equipment specially designed for medical purposes.


3A201  Electronic components, other than those specified in 3A001.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls:
    Related Definition: This entry does not control magnets that are 
specially designed for and exported as parts of medical nuclear 
magnetic resonance (NMR) imaging systems. Such parts may be exported 
in separate shipments from different sources, provided that the 
related export control documents clearly specify that the parts are 
for medical NMR imaging systems that are being exported.
    Items:

    a. Capacitors with the following characteristics:
    a.1. Voltage rating greater than 1.4 kV, energy storage greater 
than 10J, capacitance greater than 500 nF and series inductance less 
than 50 nH; or
    a.2. Voltage rating greater than 750 V, capacitance greater than 
250 nF and series inductance less than 10 nH;
    b. Superconducting solenoidal electromagnets with all of the 
following characteristics:
    b.1. Capable of creating magnetic fields of more than 2 teslas 
(20 kilogauss);
    b.2. With an L/D ratio (length divided by inner diameter) 
greater than 2;
    b.3. With an inner diameter of more than 300 mm; and
    b.4. With a magnetic field uniform to better than 1% over the 
central 50% of the inner volume;
    c. Flash X-ray generators or pulsed electron accelerators with 
peak energy of 500 keV or greater, as follows; except: Accelerators 
that are component parts of devices designed for purposes other than 
electron beam or X-ray radiation (electron microscopy, for example) 
and those designed for medical purposes:
    c.1. Having an accelerator peak electron energy of 500 keV or 
greater but less than 25 MeV and with a figure of merit (K) of 0.25 
or greater, where K is defined as: K=1.7 x 103V2.65Q, 
where V is the peak electron energy in million electron volts and Q 
is the total accelerated charge in coulombs if the accelerator beam 
pulse duration is less than or equal to 1 microsecond; if the 
accelerator beam pulse duration is greater than 1 microsecond, Q is 
the maximum accelerated charge in 1 microsecond [Q equals the 
integral of i with respect to t, over the lesser of 1 microsecond or 
the time duration of the beam pulse (Q=[integral] idt), where i is 
beam current in amperes and t is time in seconds]; or
    c.2. Having an accelerator peak electron energy of 25 MeV or 
greater and a peak power greater than 50 MW. [Peak power=(peak 
potential in volts) x (peak beam current in amperes)].

    Technical Notes: a. Time duration of the beam pulse - In 
machines, based on microwave accelerating cavities, the time 
duration of the beam pulse is the lesser of 1 microsecond or the 
duration of the bunched beam packet resulting from one microwave 
modulator pulse.

    b. Peak beam current--In machines based on microwave 
accelerating cavities, the peak beam current is the average current 
in the time duration of a bunched beam packet.

[[Page 12979]]



3A202  Oscilloscopes and transient recorders other than those 
controlled by 3A002.a.5, and specially designed components therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: Specially designed components specified in 
this item are the following, for analog oscilloscopes:
    1. Plug-in units;
    2. External amplifiers;
    3. pre-amplifiers;
    4. Sampling devices;
    5. Cathode ray tubes.
    Items:

    a. Non-modular analog oscilloscopes having a bandwidth of 1 GHz 
or greater;

    Technical Note: ``Bandwidth'' is defined as the band of 
frequencies over which the deflection on the cathode ray tube does 
not fall below 70.7% of that at the maximum point measured with a 
constant input voltage to the oscilloscope amplifier.

    b. Modular analog oscilloscope systems having either of the 
following characteristics:
    b.1. A mainframe with a bandwidth of 1 GHz or greater; or
    b.2. Plug-in modules with an individual bandwidth of 4 GHz or 
greater;
    c. Analog sampling oscilloscopes for the analysis of recurring 
phenomena with an effective bandwidth greater than 4 GHz;
    d. Digital oscilloscopes and transient recorders using analog-
to-digital conversion techniques, capable of storing transients by 
sequentially sampling one-shot input signals at successive intervals 
of less than 1 ns (greater than 1 giga-sample per second), 
digitizing to 8 bits or greater resolution, and storing 256 or more 
samples.


3A225  Frequency changers (also known as converters or inverters) or 
generators, having all of the following characteristics.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: Frequency changers (also known as converters 
or inverters) especially designed or prepared to supply motor 
stators and having the characteristics described in 3A225.b and .d, 
together with a total harmonic distortion of less than 2 percent and 
an efficiency of greater than 80 percent are subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 
CFR part 110.)
    Related Definition: Motor stators are especially designed or 
prepared ring-shaped stators for high-speed multiphase AC hysteresis 
(or reluctance) motors for synchronous operation within a vacuum in 
the frequency range of 600 Hz to 2,000 Hz, and a power range of 50 
VA to 1,000 VA. The stators consist of multiphase windings on a 
laminated low-loss iron core comprising thin layers typically to 2.0 
mm (.008 in) thick or less.
    Items:

    a. A multisphase output capable of providing power of 40 W or 
more;
    b. Capable of operating in the frequency range between 600 and 
2,000 Hz;
    c. Total harmonic distortion below 10%; and
    d. Frequency control better than 0.1%.


3A226  Direct current high-power supplies capable of continuously 
producing, over a time period of 8 hours, 100 V or greater with a 
current output of 500 A or greater and with a current or voltage 
regulation better than 0.1%.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3A227  High-voltage direct current power supplies capable of 
continuously producing, over a time period of 8 hours, 20,000 V or 
greater with a current output of 1 A or greater and with a current or 
voltage regulation better than 0.1%.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3A228  Switching devices.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

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

    a. Cold-cathode tubes (including gas krytron tubes and vacuum 
sprytron tubes), whether gas filled or not, operating similarly to a 
spark gap, containing three or more electrodes, and having all of 
the following characteristics:
    a.1. Anode peak voltage rating of 2,500 V or more;
    a.2. Anode peak current rating of 100 A or more; and
    a.3. Anode delay time of 10 microseconds or less;
    b. Triggered spark-gaps having an anode delay time of 15 
microseconds or less and rated for a peak current of 500 A or more;
    c. Modules or assemblies with a fast switching function having 
all of the following characteristics:
    c.1. Anode peak voltage rating greater than 2,000 V;
    c.2. Anode peak current rating of 500 A or more; and
    c.3. Turn-on time of 1 microseconds or less.


3A229  Firing sets and equivalent high-current pulse generators (for 
detonators controlled by 3A232).

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

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


[[Page 12980]]

    a. Explosive detonator firing sets designed to drive multiple 
detonators of the type controlled by ECCN 3A232;
    b. Modular electrical pulse generators (pulsers) designed for 
portable, mobile, or ruggedized use (including xenon flash-lamp 
drivers) having all the following characteristics:
    b.1. Capable of delivering their energy in less than 15 
microseconds;
    b.2. Having an output greater than 100 A; and
    b.3. Having a ``rise time'' of less than 10 microseconds into 
loads of less than 40 ohms.

    Technical Note: ``Rise time'' is defined as the time interval 
from 10% to 90% current amplitude when driving a resistive load.

    b.4. Enclosed in a dust-tight enclosure;
    b.5. No dimension greater than 254 mm (10 in.);
    b.6. Weight less than 25 kg (55 lb.); and
    b.7. Specified for use over an extended temperature range (223 K 
[-50 deg. C] to 373 K [100 deg. C]) or specified as suitable for 
aerospace use.


3A230  High-speed pulse generators with output voltages greater than 6 
volts into a less than 55 ohm resistive load, and with pulse transition 
times less than 500 picoseconds (defined as the time interval between 
10% and 90% voltage amplitude).

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3A231  Neutron generator systems, including tubes, designed for 
operation without an external vacuum system, and utilizing 
electrostatic acceleration to induce a tritium-deuterium nuclear 
reaction.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number, parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3A232  Detonators and multipoint initiation systems (exploding bridge 
wire, slapper, etc.).

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definition: Detonators using only primary explosives, 
such as lead azide, are not controlled by this entry.
    Items:

    a. Electrically driven explosive detonators, as follows:
    a.1. Exploding bridge (EB);
    a.2. Exploding bridge wire (EBW);
    a.3. Slapper;
    a.4. Exploding foil initiators (EFI)
    b. Arrangements using single or multiple detonators designed to 
nearly simultaneously initiate an expolsive surface (over greater 
than 5,000 mm\2\) from a single firing signal (with an initiation 
timing spread over the surface of less than 2.5 microseconds).

    Technical Note: The detonators controlled by 3A232 utilize a 
small electrical conductor (bridge, bridgewire, or foil) that 
explosively vaporizes when a fast, high-current electrical pulse is 
passed through it. In nonslapper types, the exploding conductor 
starts a chemical detonation in a contacting high-explosive material 
such as PETN (pentaerythritoltetranitrate). In slapper detonators, 
the explosive vaporization of the electrical conductor drives a 
flyer or slapper across a gap, and the impact of the slapper on an 
explosive starts a chemical detonation. The slapper in some designs 
is driven by magnetic force. The term exploding foil detonator may 
refer to either an EB or a slapper-type detonator. Also, the word 
initiator is sometimes used in place of the word detonator.


3A233  Mass spectrometers capable of measuring ions of 230 atomic mass 
units or greater and having a resolution of better than 2 parts in 230, 
and ion sources therefor.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: Specially designed or prepared magnetic or 
quadruple mass spectrometers that have the following characteristics 
and are capable of taking on-line samples of feed, product, or tails 
from UF6 gas streams are subject to the export licensing 
authority of the Nuclear Regulatory Commission. (See 10 CFR part 
110.): (a) Unit resolution for mass greater than 320; (b) Ion 
sources that are constructed of or lined with nichrome or that are 
monel or nickel-plated; (c) Electron bombardment ionization sources; 
(d) Having a collector system suitable for isotopic analysis.
    Related Definitions: N/A
    Items:

    a. Inductively coupled plasma mass spectrometers (ICP/MS);
    b. Glow discharge mass spectrometers (GDMS);
    c. Thermal ionization mass spectrometers (TIMS);
    d. Electron bombardment mass spectrometers that have a source 
chamber constructed from, or lined with or plated with materials 
resistent to UF6;
    e. Molecular beam mass spectrometers that:
    e.1. Have a source chamber constructed from, or lined with or 
plated with stainless steel or molybdenum and have a cold trap 
capable of cooling to 193 K (-80 deg. C) or less; or
    e.2. Have a source chamber constructed from, or lined with or 
plated with materials resistant to UF6; or
    f. Mass spectrometers equipped with a microfluorination ion 
source designed for use with actinides or actinide fluorides.


3A980  Voice print identification and analysis equipment and parts, 
n.e.s.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 12981]]



3A981  Polygraphs (except biomedical recorders designed for use in 
medical facilities for monitoring biological and neurophysical 
responses); fingerprint analyzers, cameras and equipment, n.e.s.; 
automated fingerprint and identification retrieval systems, n.e.s.; 
psychological stress analysis equipment; electronic monitoring 
restraint devices; and specially designed parts and accessories, n.e.s.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3A992  Electronic devices and components not controlled by 3A001.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Microprocessor microcircuits'', ``microcomputer 
microcircuits'', and microcontroller microcircuits having a clock 
frequency exceeding 25 MHz;
    b. Storage integrated circuits not controlled by 3A001, as 
follows:
    b.1. Electrical erasable programmable read-only memories 
(EEPROMs) with a storage capacity;
    b.1.a. Exceeding 1 Mbit per package; or
    b.1.b. Exceeding 256 kbit per package and a maximum access time 
of less than 80 ns;
    b.2. Static random access memories (SRAMs) with a storage 
capacity:
    b.2.a. Exceeding 1 Mbit per package; or
    b.2.b. Exceeding 256 kbit per package and a maximum access time 
of less than 25 ns;
    c. Field programmable logic arrays not controlled by 3A001 
having either of the following:
    c.1. An equivalent gate count of more than 5,000 (2 input 
gates); or
    c.2. A toggle frequency exceeding 100 MHz;
    d. Travelling wave tubes, pulsed or continuous wave, not 
controlled by 3A001, as follows:
    d.1. Coupled cavity tubes, or derivatives thereof;
    d.2. Helix tubes, or derivatives thereof, with any of the 
following:
    d.a.1. An ``instantaneous bandwidth'' of half an octave or more; 
and
    d.a.2. The product of the rated average output power (expressed 
in kW) and the maximum operating frequency (expressed in GHz) of 
more than 0.2;
    d.2.b.1 An ``instantaneous bandwidth'' of less than half an 
octave; and
    d.2.b.2. The product of the rated average output power 
(expressed in kW) and the maximum operating frequency (expressed in 
GHz) of more than 0.4;
    e. Flexible waveguides designed for use at frequencies exceeding 
40 GHz;
    f. Surface acoustic wave and surface skimming (shallow bulk) 
acoustic wave devices (i.e., ``signal processing'' devices employing 
elastic waves in materials), not controlled by 3A001, having either 
of the following:
    f.1. A carrier frequency exceeding 1 GHz; or
    f.2. A carrier frequency of 1 GHz or less, and
    f.2.a. A frequency side-lobe rejection exceeding 55 dB;
    f.2.b. A product of the maximum delay time and bandwidth (time 
in microseconds and bandwidth in MHz) of more than 100; or
    f.2.c. A dispersive delay of more than 10 microseconds.
    g. Batteries not controlled by 3A001, as follows:

    Note: 3A992.g does not control batteries with volumes equal to 
or less than 26 cm3 (e.g., standard C-cells or UM-2 batteries).

    g.1. Primary cells and batteries having an energy density 
exceeding 350 Wh/kg and rated for operation in the temperature range 
from below 243 K (-30 deg. C) to above 343 K (70 deg. C);
    g.2. Rechargeable cells and batteries having an energy density 
exceeding 150 Wh/kg after 75 charge/discharge cycles at a discharge 
current equal to C/5 hours (C being the nominal capacity in ampere 
hours) when operating in the temperature range from below 253 K 
(-20 deg. C) to above 333 K (60 deg. C);

    Technical Note: Energy density is obtained by multiplying the 
average power in watts (average voltage in volts times average 
current in amperes) by the duration of the discharge in hours to 75 
percent of the open circuit voltage divided by the total mass of the 
cell (or battery) in kg.

    g.3. ``Space qualified'' or radiation hardened photovoltaic 
arrays with a specific power exceeding 160 W/m\2\ at an operating 
temperature of 301 K (28 deg. C) under a tungsten illumination of 1 
kW/m\2\ at 2,800 K (2,527 deg. C);
    h. ``Superconductive'' electromagnets or solenoids specially 
designed to be fully charged or discharged in less than one minute, 
not controlled by 3A001, having all of the following:

    Note: 3A992.h does not control ``superconductive'' 
electromagnets or solenoids designed for Magnetic Resonance Imaging 
(MRI) medical equipment.

    h.1. Maximum energy delivered during the discharge divided by 
the duration of the discharge of more than 500 kJ per minute;
    h.2. Inner diameter of the current carrying windings of more 
than 250 mm; and
    h.3. Rated for a magnetic induction of more than 8T or ``overall 
current density'' in the winding of more than 300 A/mm \2\.


3A993  Electronic test equipment in Category 3A n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1000 for Syria only
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3A994  General purpose electronic equipment not controlled by 3A002.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Digital instrumentation magnetic tape data recorders not 
controlled by 3A002 having any of the following characteristics;
    a.1. A maximum digital interface transfer rate exceeding 60 
Mbit/s and employing helical scan techniques;
    a.2. A maximum digital interface transfer rate exceeding 120 
Mbit/s and employing fixed head techniques; or
    a.3. ``Space qualified'';
    b. Equipment, not controlled by 3A002, with a maximum digital 
interface transfer rate exceeding 60 Mbit/s, designed to convert 
digital video magnetic tape recorders for use as digital 
instrumentation data recorders;
    c. Hydrogen/hydrogen-isotope thyratrons of ceramic-metal 
construction and rate for a peak current of 500A or more.

[[Page 12982]]


B. TEST, INSPECTION AND PRODUCTION EQUIPMENT


3B001  ``Stored program controlled'' equipment for epitaxial growth.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: Yes, except 3B001 .b and .c
    CIV: Yes for equipment controlled by 3B001.a as described in 
Advisory Note 1.d

List of Items Controlled

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

    a. Capable of producing a layer thickness uniform to less than 
 2.5% across a distance of 75 mm or more;
    b. Metal organic chemical vapour deposition (MOCVD) reactors 
specially designed for compound semiconductor crystal growth by the 
chemical reaction between materials controlled by 3C003 or 3C004;
    c. Molecular beam epitaxial growth equipment using gas sources.


3B002  ``Stored program controlled'' equipment designed for ion 
implanation, having the following characteristics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: Yes
    CIV: N/A

List of Items Controlled

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

    a. An accelerating voltage exceeding 200 keV;
    b. Specially designed and optimized to operate at accelerating 
voltages of less than 10 keV;
    c. Direct write capability; or
    d. Capable of high energy oxygen implant into a heated 
semiconductor material ``substrate''.


3B003  ``Stored program controlled'' anisotropic plasma dry etching 
equipment.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: Yes
    CIV: N/A

List of Items Controlled

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

    a. With cassette-to-cassette operation and load-locks, and 
having either of the following:
    a.1. Magnetic confinement; or
    a.1. Electron cyclotron resonance (ECR);
    b. Specially designed for equipment controlled by 3B005 and 
having either of the following:
    b.1. Magnetic confinement; or
    b.2. Electron cyclotron resonance (ECR).


3B004  ``Stored program controlled'' plasma enchanced CVD equipment.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: Yes
    CIV: N/A

List of Items Controlled

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

    a. With cassette-to-cassette operation and load-locks, and 
having either of the following:
    a.1. Magnetic confinement; or
    a.2. Electron cyclotron resonance (ECR);
    b. Specially designed for equipment controlled by 3B005 and 
having either of the following:
    b.1. Magnetic confinement; or
    b.2. Electron cyclotron resonance (ECR);


3B005  ``Stored program controlled'' automatic loading multi-chamber 
central wafer handling systems, having interfaces for wafer input and 
output, to which more than two pieces of semiconductor processing 
equipment are to be connected, to form an integrated system in a vacuum 
environment for sequential multiple wafer processing.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: Yes, except when connected with equipment controlled by 
3B001.b and .c or 3B006
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: This entry does not control automatic 
robotic wafer handling systems not designed to operate in a vacuum 
environment.
    Items: The list of items controlled is contained in the ECCN 
heading.


3B006  ``Stored program controlled'' lithography equipment.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: N/A
    CIV: N/A

List of Items Controlled

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

    a. Align and expose step and repeat equipment for wafer 
processing using photo-optical or X-ray methods, having either of 
the following:
    a.1. A light source wavelength shorter than 400 nm;
    a.2. Capable of producing a pattern with a minimum resolvable 
feature size of 0.7 micrometers or less when calculated by the 
following formula:
[GRAPHIC] [TIFF OMITTED] TR25MR96.025


[[Page 12983]]

where:

MRF is the minimum resolvable feature size; the K factor = 0.7; and 
wavlength is the exposure light source wavelength;

    b. Equipment specially designed for mask making or semiconductor 
device processing using deflected focussed electron beam, ion beam 
or ``laser'' beam, with any of the following:
    b.1. A spot size smaller than 0.2 micrometer;
    b.2. Capable of producing a pattern with a feature size of less 
than 1 micrometer; or
    b.3. An overlay accuracy of better than  0.20 
micrometer (3 sigma).


3B007  Masks or reticles.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: Yes
    CIV: N/A

List of Items Controlled

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

    a. For integrated circuits controlled by 3A001;
    b. Multi-layer masks with a phase shift layer.


3B008  ``Stored program controlled'' test equipment, specially designed 
for testing semiconductor devices and unencapsulated dice.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $500
    GBS: Yes
    CIV: N/A

List of Items Controlled

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

    a. For testing S-parameters of transistor devices at frequencies 
exceeding 31 GHz;
    b. For testing integrated circuits, capable of performing 
functional (truth table) testing at a pattern rate of more than 40 
MHz;

    Note: 3B008.b does not control test equipment specially designed 
for testing:

    1. ``Electronic assemblies'' or a class of ``electronic 
assemblies'' for home or entertainment applications;
    2. Non-controlled electronic components, ``electronic 
assemblies'' or integrated circuits.
    c. For testing microwave integrated circuits at frequencies 
exceeding 3 GHz;

    Note: 3B008.c does not control test equipment specially designed 
for testing microwave integrated circuits operating solely in the 
Standard Civil Telecommunication Bands at frequencies not exceeding 
31 GHz.

    d. Electron beam systems designed for operation at or below 3 
keV, or ``laser'' beam systems, for the non-contactive probing of 
powered-up semiconductor devices, with both of the following:
    d.1. Stroboscopic capability with either beam-blanking or 
detector strobing; and
    d.2. An electron spectrometer for voltage measurement with a 
resolution of less than 0.5 V.

    Note: 3B008.d does not control scanning electron microscopes, 
except when specially designed and instrumented for the non-
contactive probing of powered-up semiconductor devices.


3B991  Equipment not controlled by 3B001 for the manufacture or testing 
of electronic components and materials, and specially designed 
components and accessories therefor.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    a. Equipment specially designed for the manufacture or testing 
of electron tubes, optical elements and specially designed 
components therefor controlled by 3A001;
    b. Equipment specially designed for the manufacture or testing 
of semiconductor devices, integrated circuits and ``assemblies'', as 
follows, and systems incorporating or having the characteristics of 
such equipment:

    Note: 3B991.b also controls equipment used or modified for use 
in the manufacture or testing of other devices, such as imaging 
devices, electro-optical devices, acoustic-wave devices.

    b.1. Equipment for the processing of materials for the 
manufacture of devices and components as specified in the heading of 
3B991.b, as follows:

    Note: 3B991 does not control quartz furnace tubes, furnace 
liners, paddles, boats (except specially designed caged boats), 
bubblers, cassettes or crucibles specially designed for the 
processing equipment controlled by 3B991.b.1.

    b.1.a. Equipment for producing polycrystalline silicon and 
materials controlled by 3C001;
    b.1.b. Equipment specially designed for purifying or processing 
III/V and II/VI semiconductor materials controlled by 3C001, 3C002, 
3C003, or 3C004, except crystal pullers, for which see 3B991.b.1.c 
below;
    b.1.c. Crystal pullers and furnaces, as follows:

    Note: 3B991.b.1.c does not control diffusion and oxidation 
furnaces.

    b.1.c.1. Annealing or recrystallizing equipment other than 
constant temperature furnaces employing high rates of energy 
transfer capable of processing wafers at a rate exceeding 0.005 
m2 per minute;
    b.1.c.2. ``Stored programme controlled'' crystal pullers having 
any of the following characteristics:
    b.1.c.2.a. Rechargeable without replacing the crucible 
container;
    b.1.c.2.b. Capable of operation at pressures above 2.5 x 105 Pa; 
or
    b.1.c.2.c. Capable of pulling crystals of a diameter exceeding 
100 mm;
    b.1.d. ``Stored program controlled'' equipment for epitaxial 
growth having any of the following characteristics:
    b.1.d.1. Capable of producing a layer thickness uniformity 
across the wafer of equal to or better than +3.5%;
    b.1.d.2. Rotation of individual wafers during processing; or
    b.1.e. Molecular beam epitaxial growth equipment;
    b.1.f. ``Magnetically enhanced'' ``sputtering'' equipment with 
specially designed integral load locks capable of transferring 
wafers in an isolated vacuum environment;
    b.1.g. Equipment specially designed for ion implantation, ion-
enhanced or photo-enhanced diffusion, having any of the following 
characteristics:
    b.1.g.1. Patterning capability;
    b.1.g.2. Accelerating voltage for more than 200 keV; or
    b.1.g.3. Capable of high energy oxygen implant into a heated 
``substrate'';
    b.1.h. ``Stored program controlled'' equipment for the selective 
removal (etching) by means of anisotropic dry methods (e.g., 
plasma), as follows:
    b.1.h.1. Batch types having either of the following:
    b.1.h.1.a. End-point detection, other than optical emission 
spectroscopy types; or
    b.1.h.1.b. Reactor operational (etching) pressure of 26.66 Pa or 
less;
    b.1.h.2. Single wafer types having any of the following:
    b.1.h.2.a. End-point detection, other than optical emission 
spectroscopy types;
    b.1.h.2.b. Reactor operational (etching) pressure of 26.66 Pa or 
less; or
    b.1.h.2.c. Cassette-to-cassette and load locks wafer handling;

    Notes: 1. ``Batch types'' refers to machines not specially 
designed for production processing of single wafers. Such machines 
can process two or more wafers simultaneously with common process 
parameters, e.g., RF power, temperature, etch gas species, flow 
rates.


[[Page 12984]]

    2. ``Single wafer types'' refers to machines specially designed 
for production processing of single wafers. These machines may use 
automatic wafer handling techniques to load a single wafer into the 
equipment for processing. The definition includes equipment that can 
load and process several wafers but where the etching parameters, 
e.g., RF power or end point, can be independently determined for 
each individual wafer.
    b.1.i. ``Chemical vapor deposition'' (CVD) equipment, e.g., 
plasma-enhanced CVD (PECVD) or photo-enhanced CVD, for semiconductor 
device manufacturing, having either of the following capabilities, 
for deposition of oxides, nitrides, metals or polysilicon:
    b.1.i.1. ``Chemical vapor deposition'' equipment operating below 
105 Pa; or
    b.1.i.2. PECVD equipment operating either below 60 Pa (450 
millitorr) or having automatic cassette-to-cassette and load lock 
wafer handling;

    Note: 3B991.b.1.i does not control low pressure ``chemical vapor 
deposition'' (LPCVD) systems or reactive ``sputtering'' equipment.

    b.1.j. Electron beam systems specially designed or modified for 
mask making or semiconductor device processing having any of the 
following characteristics:
    b.1.j.1. Electrostatic beam deflection;
    b.1.j.2. Shaped, non-Gaussian beam profile;
    b.1.j.3. Digital-to-analog conversion rate exceeding 3 MHz;
    b.1.j.4. Digital-to-analog conversion accuracy exceeding 12 bit; 
or
    b.1.j.5. Target-to-beam position feedback control precision of 1 
micrometer or finer;

    Note: 3B991.b.1.j does not control electron beam deposition 
systems or general purpose scanning electron microscopes.

    b.1.k. Surface finishing equipment for the processing of 
semiconductor wafers as follows:
    b.1.k.1. Specially designed equipment for backside processing of 
wafers thinner than 100 micrometer and the subsequent separation 
thereof; or
    b.1.k.2. Specially designed equipment for achieving a surface 
roughness of the active surface of a processed wafer with a two-
sigma value of 2 micrometer or less, total indicator reading (TIR);

    Note: 3B991.b.1.k does not control single-side lapping and 
polishing equipment for wafer surface finishing.

    b.1.l. Interconnection equipment which includes common single or 
multiple vacuum chambers specially designed to permit the 
integration of any equipment controlled by 3B991 into a complete 
system;
    b.1.m. ``Stored program controlled'' equipment using ``lasers'' 
for the repair or trimming of ``monolithic integrated circuits'' 
with either of the following characteristics:
    b.1.m.1. Positioning accuracy less than 1 
micrometer; or
    b.1.m.2. Spot size (kerf width) less than 3 micrometer.
    b.2. Masks, mask ``substrates'', mask-making equipment and image 
transfer equipment for the manufacture of devices and components as 
specified in the heading of 3B991, as follows:

    Note: The term ``masks'' refers to those used in electron beam 
lithography, X-ray lithography, and ultraviolet lithography, as well 
as the usual ultraviolet and visible photo-lithography.

    b.2.a. Finished masks, reticles and designs therefor, except:
    b.2.a.1. Finished masks or reticles for the production of 
unembargoed integrated circuits; or
    b.2.a.2. Masks or reticles, having both of the following 
characteristics:
    b.2.a.2.a. Their design is based on geometries of 2.5 micrometer 
or more; and
    b.2.a.2.b. The design does not include special features to alter 
the intended use by means of production equipment or ``software'';
    b.2.b. Mask ``substrates'' as follows:
    b.2.b.1. Hard surface (e.g., chromium, silicon, molybdenum) 
coated ``substrates'' (e.g., glass, quartz, sapphire) for the 
preparation of masks having dimensions exceeding 125 mm x 125 mm; or
    b.2.b.2. ``Substrates'' specially designed for X-ray masks;
    b.2.c. Equipment, other than general purpose computers, 
specially designed for computer aided design (CAD) of semiconductor 
devices or integrated circuits;
    b.2.d. Equipment or machines, as follows, for mask or reticle 
fabrication:
    b.2.d.1. Photo-optical step and repeat cameras capable of 
producing arrays larger than 100 mm x 100 mm, or capable of 
producing a single exposure larger than 6 mm x 6 mm in the image 
(i.e., focal) plane, or capable of producing line widths of less 
than 2.5 micrometer in the photoresist on the ``substrate'';
    b.2.d.2. Mask or reticle fabrication equipment using ion or 
``laser'' beam lithography capable of producing line widths of less 
than 2.5 micrometer; or
    b.2.d.3. Equipment or holders for altering masks or reticles or 
adding pellicles to remove defects;

    Note: 3B991.b.2.d.1 and b.2.d.2 do not control mask fabrication 
equipment using photo-optical methods which was either commercially 
available before the 1st January, 1980, or has a performance no 
better than such equipment.

    b.2.e. ``Stored program controlled'' equipment for the 
inspection of masks, reticles or pellicles with:
    b.2.e.1. A resolution of 0.25 micrometer or finer; and
    b.2.e.2. A precision of 0.75 micrometer or finer over a distance 
in one or two coordinates of 63.5 mm or more;

    Note: 3B991.b.2.e does not control general purpose scanning 
electron microscopes except when specially designed and instrumented 
for automatic pattern inspection.

    b.2.f. Align and expose equipment for wafer production using 
photo-optical methods, including both projection image transfer 
equipment and step and repeat equipment, capable of performing any 
of the following functions:

    Note: 3B991.b.2.f does not control photo-optical contact and 
proximity mask align and expose equipment or contact image transfer 
equipment.

    b.2.f.1. Production of a pattern size of less than 2.5 
micrometer;
    b.2.f.2. Alignment with a precision finer than 0.25 
micrometer (3 sigma); or
    b.2.f.3. Machine-to-machine overlay no better than + 0.3 
micrometer;
    b.2.g. Electron beam, ion beam or X-ray equipment for projection 
image transfer capable of producing patterns less than 2.5 
micrometer;

    Note: For focussed, deflected-beam systems (direct write 
systems), see 3B91.b.1.j or b.10.

    b.2.h. Equipment using ``lasers'' for direct write on wafers 
capable of producing patterns less than 2.5 micrometer.
    b.3. ``Stored program controlled'' inspection equipment for the 
automatic detection of defects, errors or contaminants of 0.6 
micrometer or less in or on processed wafers, ``substrates'', other 
than printed circuit boards or chips, using optical image 
acquisition techniques for pattern comparison;

    Note: 3B991.b.3 does not control general purpose scanning 
electron microscopes, except when specially designed and 
instrumented for automatic pattern inspection.

    b.4. Specially designed ``stored program controlled'' measuring 
and analysis equipment, as follows:
    b.4.a. Specially designed for the measurement of oxygen or 
carbon content in semiconductor materials;
    b.4.b. Equipment for line width measurement with a resolution of 
1 micrometer or finer;
    b.4.c. Specially designed flatness measurement instruments 
capable of measuring deviations from flatness of 10 micrometer or 
less with a resolution of 1 micrometer or finer.
    b.5. Equipment for the assembly of integrated circuits, as 
follows:
    b.5.a. ``Stored program controlled'' die bonders having all of 
the following characteristics:
    b.5.a.1. Specially designed for ``hybrid integrated circuits'';
    b.5.a.2. X-Y stage positioning travel exceeding 37.5 x 37.5 mm; 
and
    b.5.a.3. Placement accuracy in the X-Y plane of finer than + 10 
micrometer;
    b.5.b. ``Stored program controlled'' equipment for producing 
multiple bonds in a single operation (e.g., beam lead bonders, chip 
carrier bonders, tape bonders);
    b.5.c. Semi-automatic or automatic hot cap sealers, in which the 
cap is heated locally to a higher temperature than the body of the 
package, specially designed for ceramic microcircuit packages 
controlled by 3A001 and that have a throughput equal to or more than 
one package per minute.

    Note: 3B991.b.5. does not control general purpose resistance 
type spot welders.

    b.6. ``Stored program controlled'' wafer probing equipment 
having any of the following characteristics:
    b.6.a. Positioning accuracy finer than 3.5 micrometer;
    b.6.b. Capable of testing devices having more than 68 terminals; 
or
    b.6.c. Capable of testing at a frequency exceeding 1 GHz;
    
[[Page 12985]]

    b.7. Test equipment as follows:
    b.7.a. ``Stored program controlled'' equipment specially 
designed for testing discrete semiconductor devices and 
unencapsulated dice, capable of testing at frequencies exceeding 18 
GHz;

    Technical Note: Discrete semiconductor devices include 
photocells and solar cells.

    b.7.b. ``Stored program controlled'' equipment specially 
designed for testing integrated circuits and ``assemblies'' thereof, 
capable of functional testing:
    b.7.b.1. At a pattern rate exceeding 20 MHz; or
    b.7.b.2. At a pattern rate exceeding 10 MHz but not exceeding 20 
MHz and capable of testing packages of more than 68 terminals;

    Note: 3B991.b.7.b. does not control equipment specially designed 
for testing integrated circuits not controlled by 3A001 or 3A991.

    Notes: 1. 3B991.b.7.b does not control test equipment specially 
designed for testing ``assemblies'' or a class of ``assemblies'' for 
home and entertainment applications.

    2. 3B991.b.7.b does not control test equipment specially 
designed for testing electronic components, ``assemblies'' and 
integrated circuits not controlled by 3A001 or 3A991 provided such 
test equipment does not incorporate computing facilities with ``user 
accessible programmability''.
    b.7.c. Equipment specially designed for determining the 
performance of focal-plane arrays at wavelengths of more than 1,200 
nm, using ``stored program controlled'' measurements or computer 
aided evaluation and having any of the following characteristics:
    b.7.c.1. Using scanning light spot diameters of less than 0.12 
mm;
    b.7.c.2. Designed for measuring photosensitive performance 
parameters and for evaluating frequency response, modulation 
transfer function, uniformity of responsivity or noise; or
    b.7.c.3. Designed for evaluating arrays capable of creating 
images with more than 32 x 32 line elements;
    b.8. Filters for clean rooms capable of providing an air 
environment of 10 or less particles of 0.3 micrometer or smaller per 
0.02832 m 3 and filter materials therefor;
    b.9. Electron beam test systems, capable of operating at or 
below 3,000 eV, for non-contactive probing of powered-up 
semiconductor devices having any of the following:
    b.9.a. Stroboscopic capability with either beam blanking or 
detector strobing;
    b.9.b. An electron spectrometer for voltage measurements with a 
resolution of less than 0.5 V; or
    b.9.c. Electrical tests fixtures for performance analysis of 
integrated circuits;

    Note: 3B991.b.9 does not control scanning electron microscopes, 
except when specially designed and instrumented for non-contactive 
probing of a powered-up semiconductor device.

    b.10. ``Stored program controlled'' multifunctional focused ion 
beam systems specially designed for manufacturing, repairing, 
physical layout analysis and testing of masks or semiconductor 
devices and having either of the following characteristics:
    b.10.a. Target-to-beam position feedback control precision of 1 
micrometer or finer; or
    b.10.b. Digital-to-analog conversion accuracy exceeding 12 bit;
    b.11. Particle measuring systems employing ``lasers'' designed 
for measuring particle size and concentration in air having both of 
the following characteristics:
    b.11.a. Capable of measuring particle sizes of 0.2 micrometer or 
less at a flow rate of 0.02832 m3 per minute or more; and
    b.11.b. Capable of characterizing Class 10 clean air or better.

C. Materials


3C001  Hetero-epitaxial materials consisting of a ``substrate'' with 
stacked epitaxially grown multiple layers.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3,000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Silicon;
    b. Germanium; or
    c. III/V compounds of gallium or indium.

    Technical Note: III/V compounds are polycrystalline or binary or 
complex monocrystalline products consisting of elements of groups 
IIIA and VA of Mendeleyev's periodic classification table (gallium 
arsenide, gallium-aluminium arsenide, indium phosphide, etc.).


3C002  Resist materials, and ``substrates'' coated with controlled 
resists.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes for 3C002.a as described in Advisory Note 1.e
    CIV: Yes for 3C002.a as described in Advisory Note 1.e

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Positive resists for semiconductor lithography specially 
adjusted (optimized) for use at wavelengths below 370 nm;
    b. All resists, for use with electron beams or ion beams, with a 
sensitivity of 0.01 microcoulomb/mm2 or better;
    c. All resists, for use with X-rays, with a sensitivity of 2.5 
mJ/mm2 or better;
    d. All resists optimized for surface imaging technologies, 
including silyated resists.

    Technical Note: Silyation techniques are defined as processes 
incorporating oxidation of the resist surface to enhance performance 
for both wet and dry developing.


3C003  Organo-inorganic compounds.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3,000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: This entry controls only compounds whose 
metallic, partly metallic or non-metallic element is directly linked 
to carbon in the organic part of the molecule.
    Items:

    a. Organo-metallic compounds of aluminum, gallium or indium 
having a purity (metal basis) better than 99.999%; or
    b. Organo-arsenic, organo-antimony and organo-phosphorus 
compounds having a purity (inorganic element basis) better than 
99.999% percent.


3C004  Hydrides of phosphorus, arsenic or antimony, having a purity 
better than 99.999%, even diluted in inert gases or hydrogen.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: This entry does not control hydrides 
containing less than 20% molar or more of inert gases or hydrogen.
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 12986]]


D. Software


3D001  ``Software'' specially designed for the ``development'' or 
``production'' of equipment controlled by 3A001.a.1.a, 3A001.b to 
3A001.f, 3A002, 3A101 or 3B (except 3B991).

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``software'' for           NS Column 1.                   
 equipment controlled by 3A001.b to                                     
 3A001.f, 3A002, and 3B001 to 3B008.                                    
MT applies to ``software'' for           MT Column 1.                   
 equipment controlled by 3A001.a.1.a or                                 
 3A101.                                                                 
NP applies to ``software'' for           NP Column 1.                   
 equipment controlled by 3A001.e.5.                                     
At applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes, except 3A001.e.5

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3D002  ``Software'' specially designed for the ``use'' of ``stored 
program controlled'' items controlled by 3B (except 3B991).

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A Items: The list of items controlled is 
contained in the ECCN heading.


3D003  Computer-aided-design (CAD) ``software'' for semiconductor 
device or integrated circuits, having any of the following.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: (a) This entry does not control 
``software'' specially designed for schematic entry, logic 
simulation, placing and routing, layout verification or pattern 
generation tape. (b) Libraries, design attributes or associated data 
for the design of semiconductor devices or integrated circuits are 
considered as ``technology''.
    Items:

    a. Design rules or circuit verification rules;
    b. Simulation of the physically laid out circuits; or
    c. Lithographic processing simulators for design.

    Technical Note: A lithographic processing simulator is a 
``software'' package used in the design phase to define the sequence 
of lithographic, etching and deposition steps for translating 
masking patterns into specific topographical patterns in conductors, 
dielectrics or semiconductor material.


3D101 ``Software'' specially designed for the ``use'' of items 
controlled by 3A101.b.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1                    
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A Items: The list of items controlled is 
contained in the ECCN heading.


3D980  ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of items controlled by 3A980 and 3A981.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3D994  ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of electronic devices or components 
controlled by 3A992, electronic test equipment controlled by 3A993, 
general purpose electronic equipment controlled by 3A994, or 
manufacturing and test equipment controlled by 3B991.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

E. Technology


3E001 ``Technology'' according to the General Technology Note for the 
``development'' or ``production'' of items controlled by 3A (except 
3A980, 3A981, and 3A992 to 3A994), 3B (except 3B991) or 3C.

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1.                   
 controlled by 3A001, 3A002, 3B001 to                                   
 3B008 or 3C001 to 3C004.                                               
MT applies to ``technology'' for         MT Column 1.                   
 equipment controlled by 3A001 or 3A101                                 
 for MT reasons.                                                        
NP applies to ``technology'' for         NP Column 1.                   
 equipment controlled by 3A001, 3A201,                                  
 3A202, 3A225 to 3A233 for NP reasons.                                  
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes, except 3A001.a.1.a and e.5

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definition: This entry does not control ``technology'' 
for the ``development'' or ``production'' of: (a) Microwave 
transistors operating at frequencies below 31 GHz; (b) Integrated 
circuits controlled by 3A001.a.3 to a.12, having both of the 
following characteristics using ``technology'' of one micrometer or 
more, AND not incorporating multi-layer structures. This does not 
preclude the export and reexport of multilayer ``technology'' for 
devices incorporating a maximum of two metal layers and two 
polysilicon layers.

[[Page 12987]]

    Items: The list of items controlled is contained in the ECCN 
heading.


3E002 Other  ``technology'' for the ``development'' or ``production'' 
of items described in this entry.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Vacuum microelectronic devices;
    b. Hetero-structure semiconductor devices such as high electron 
mobility transistors (HEMT), hetero-bipolar transistors (HBT), 
quantum well or super lattice devices;
    c. ``Superconductive'' electronic devices;
    d. ``Substrates'' of films of diamond for electronic components.


3E101  ``Technology'' according to the General Technology Note for the 
``use'' of equipment controlled by 3A001.a.1.a or 3A101.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3E201  ``Technology'' according to the General Technology Note for the 
``use'' of items controlled by 3A001.e.2, e.3, and e.5, 3A201, 3A202, 
3A225 to 3A233.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3E980  ``Technology'' specially designed for ``development'', 
``production'', or ``use'' of items controlled by 3A980 and 3A981.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


3E994  ``Technology'' for the ``development'', ``production'', or 
``use'' of electronic devices or components controlled by 3A992, 
electronic test equipment controlled by 3A993, general purpose 
electronic equipment controlled by 3A994, or manufacturing and test 
equipment controlled by 3B991.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes for Category 3

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports to satisfactory end-users in 
the People's Republic of China of:

    a. Analog instrumentation magnetic tape recorders controlled by 
3A002.a.1, provided that all of the following conditions are met:
    1. Bandwidths do not exceed:
    a. 4 MHz per track and have up to 28 tracks; or
    b. 2 MHz per track and have up to 42 tracks;
    2. Tape speed does not exceed 6.1 m/s;
    3. They are not designed for underwater use;
    4. They are not ruggedized for military use; and
    5. Recording density does not exceed 653.2 magnetic flux sine 
waves per mm;
    b. Video magnetic tape recorders specially designed for civil 
television recording;
    c. Instrument ``frequency synthesizers'' or synthesized signal 
generators controlled by 3A002.b or 3A002.d.2, and specially 
designed components or accessories therefor, having:
    1. A synthesized output frequency of 2.6 GHz or less; and
    2. A ``frequency switching time'' of 0.3 ms or more;
    d. Epitaxial reactors controlled by 3B001.a, except those also 
controlled by 3B001.b or 3B001.c;
    e. Positive resists not optimized for photolithography at a 
wavelength of less than 365 nm, provided that they are not 
controlled by 3C002.b to 3C002.d.

    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, for exports to satisfactory end-users in 
Country Group D:1 of items controlled by 3A001.a.4.a or a.4.b.
    Advisory Note 3: Licenses are likely to be approved for exports 
and reexports to satisfactory end-uses in Country Group D:1 of items 
controlled by 3A231, including tubes, provided that they are for 
civil use.
    N.B.: The provisions of this Advisory Note notwithstanding, 
current law prohibits approval to nuclear production or utilization 
facilities in the People's Republic of China.

Category 4--Computers

    Note 1: Computers, related equipment or ``software'' performing 
telecommunications or ``local area network'' functions must also be 
evaluated against the performance characteristics in Category 5 
(Part I. Telecommunications).

    N.B. 1: Control units that directly interconnect the buses or 
channels of central processing units, ``main storage'' or disk 
controllers, are not regarded as telecommunications equipment 
described in Category 5 (Part I. Telecommunications).
    N.B. 2: For the control status of ``software'' that provides 
routing or switching of ``datagram'' or ``fast select'' packets 
(i.e., packet by packet route selection) or for ``software'' 
specially designed for packet switching, see Category 5 (Part I. 
Telecommunications).

    Note 2: Computers, related equipment or ``software'' performing 
cryptographic, cryptanalytic, certifiable multi-level security or 
certifiable user isolation functions, or that limit electronmagnetic 
compatibility (EMC), must also be evaluated against the performance 
characteristics in Category 5 (Part II. ``Information Security'').

A. Equipment, Assemblies and Components


4A001  Electronic computers and related equipment, and ``electronic 
assemblies'' and specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT, NP, XP

[[Page 12988]]


------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to 4A001.a..................  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

    NP applies to all equipment controlled by this entry unless a 
License Exception is available. See Sec. 742.3(b) of the EAR for 
information on applicable licensing review policies.
    XP applies to all equipment controlled by this entry unless a 
License Exception is available. XP controls vary according to 
destination and end-user and end-use.
    See Sec. 742.12 of the EAR for additional information.

License Exceptions

    LVS: $5,000 for 4A001.a; N/A for 4A001.b
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: Equipment designed or rated for transient 
ionizing radiation is subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Controls. (See 
22 CFR part 121, Category XI.)
    Related Definitions: N/A
    Items:

    a. Specially designed to have either of the following 
characteristics:
    a.1. Rated for operation at an ambient temperature below 228 K 
(-45  deg.C) or above 358 K (85  deg.C);

    Note: The temperature limits in 4A001.a.1. do not apply to 
computers specially designed for civil automobile and railway train 
applications.

    a.2. Radiation-hardened to exceed any of the following 
specifications:
    a.2.a. Total Dose: 5  x  105 Rads (Si);
    a.2.b. Dose Rate Upset: 5  x  108 Rads (Si)/sec;
    a.2.c. Single Event Upse: 1  x  10-7 Error/bit/day; or
    b. Having characteristics or performing functions exceeding the 
limits in Category 5 (Part II. ``Information Security'').


4A002  ``Hybrid computers'', and ``electronic assemblies'' and 
specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT, NP, XP

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to hybrid computers combined  MT Column 1.                   
 with specially designed ``software'',                                  
 for modeling, simulation, or design                                    
 integration of complete rocket systems                                 
 and unmanned air vehicle systems that                                  
 are usable in systems controlled for                                   
 MT reasons.                                                            
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

    NP applies to all equipment controlled by this entry unless a 
License Exception is available. See Sec. 742.3(b) of the EAR for 
information on applicable licensing review policies.
    XP applies to all equipment controlled by this entry unless a 
License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.

License Exceptions

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

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Containing ``digital computers'' controlled by 4A003;
    b. Containing analog-to-digital converters having both of the 
following characteristics:
    b.1. 32 channels or more; and
    b.2. A resolution of 14 bits (plus sign bit) or more with a 
conversion rate of 200,000 conversions/s or more.


4A003  ``Digital computers'', ``electronic assemblies'', and related 
equipment therefor, and specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, CC, AT, NP, XP

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to digital computers used as  MT Column 1.                   
 ancillary equipment for test                                           
 facilities and equipment that are                                      
 controlled by 9B005 or 9B006.                                          
CC applies to computers for              CC Column 1.                   
 computerized fingerprint equipment.                                    
AT applies to entire entry (refer to     AT Column 1.                   
 4A994 for controls on computers with a                                 
 CTP  6 but  to                                   
 260 Mtops).                                                            
------------------------------------------------------------------------

    NP applies to all equipment controlled by this entry unless a 
License Exception is available. See Sec. 742.3(b) of the EAR for 
information on applicable licensing review policies.
    XP applies to all equipment controlled by this entry unless a 
License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.

License Exceptions

    LVS: $5,000
    GBS: Yes, for computers with a CTP not exceeding 1,000 Mtops 
(500 Mtops for eligible countries in Country Group D:2) and 
specially designed components therefor, exported separately or as 
part of a system; and related equipment therefor when exported with 
these computers as part of a system. (GBS is not available for the 
export or reexport of items controlled by 4A003 if you know they 
will be used to: enhance the performance capability [i.e., CTP] of a 
computer to 2,000 Mtops. or greater, or enhance the performance 
capability of a computer with a CTP 2,000 Mtops.)
    CTP: Yes
    CIV: Yes, for 4A03.d (having a 3-D vector rate less that 3M 
vectors/sec) and .f (see Advisory Notes 2, 3 and 4 to Category 4)

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    Note 1: 4A003 includes vector processors, array processors, 
digital signal processors, logic processors, and equipment for 
``image enhancement'' or ``signal processing''.

    Note 2: The control status of the ``digital computers'' or 
related equipment described in 4A003 is governed by the control 
status of other equipment or systems provided:
    a. The ``digital computers'' or related equipment are essential 
for the operation of the other equipment or systems;
    b. The ``digital computers'' or related equipment are not a 
``principal element'' of the other equipment or systems; and

    N.B.1: The control status of ``signal processing'' or ``image 
enhancement'' equipment specially designed for other equipment with 
functions limited to those required for the other equipment is 
determined by the control status of the other equipment even if it 
exceeds the ``principal element'' criterion.
    N.B.2: For the control status of ``digital computers'' or 
related equipment for telecommunications equipment, see the 
telecommunications entries in Category 5.

    c. The ``technology'' for the ``digital computers'' and related 
equipment is governed by 4E.
    a. Designed or modified for ``fault tolerance'';

    Note: For the purposes of 4A003.a, ``digital computers'' and 
related equipment are not considered to be designed or modified for 
``fault tolerance'', if they use:
    1. Error detection or correction algorithms in ``main storage'';
    2. The interconnection of two ``digital computers'' so that, if 
the active central processing unit fails, an idling but mirroring 
central processing unit can continue the system's functioning;
    3. The interconnection of two central processing units by data 
channels or by use of shared storage to permit one central 
processing unit to perform other work until the second central 
processing unit fails, at

[[Page 12989]]
which time the first central processing unit takes over in order to 
continue the system's functioning; or
    4. The synchronization of two central processing units by 
``software'' so that one central processing unit recognizes when the 
other central processing unit fails and recovers tasks from the 
failing unit.
    b. ``Digital computers'' having a ``Composite Theoretical 
Performance'' (``CTP'') exceeding 260 million composite theoretical 
operations per second (Mtops);
    c. ``Electronic assemblies'' specially designed or modified to 
be capable of enhancing performance by aggregation of ``computing 
elements'', so that the ``CTP'' of the aggregation exceeds the limit 
in 4A003.b.

    Note 1: 4A003.c applies only to ``electronic assemblies'' and 
programmable interconnections not exceeding the limits in 4A003.b, 
when shipped as unintegrated ``electronic assemblies''. It does not 
apply to ``electronic assemblies'' inherently limited by nature of 
their design for use as related equipment controlled by 4A003.d to 
4A003.f.
    Note 2: 4A003.c does not control ``electronic assemblies'' 
specially designed for a product or family of products whose maximum 
configuration does not exceed the limits of 4A003.b.

    d. Graphics accelerators or graphics coprocessors exceeding a 
``3-D Vector Rate'' of 1,600,000;
    e. Equipment performing analog-to-digital conversions exceeding 
the limits in 3A001.a.5;
    f. Equipment containing ``terminal interface equipment'' 
exceeding the limits in 5A001.b.3;

    Note: For the purposes of 4A003.f, ``terminal interface 
equipment'' includes ``local area network'' interfaces, modems and 
other communications interfaces. ``Local area network'' interfaces 
are evaluated as ``network access controllers''.

    g. Equipment, specially designed to provide for the external 
interconnection of ``digital computers'' or associated equipment, 
that allows communications at data rates exceeding 80 Mbytes/s.

    Note: 4A003.g does not control internal interconnection 
equipment (e.g., backplanes, buses) or passive interconnection 
equipment.


4A004  Computers, and specially designed related equipment, 
``electronic assemblies'' and components therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

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

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Systolic array computers'';
    b. ``Neural computers''; and
    c. ``Optical computers''.


4A101  Analog computers, ``digital computers'', or digital differential 
analyzers, other than those controlled by 4A001.a.1, designed or 
modified for use in missiles, having either of the following 
characteristics.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Rated for continuous operation at temperatures from below 
-45 deg. C to above +55 deg. C; or
    b. Designed as ruggedized or ``radiation hardened''.


4A980  Computers for fingerprint equipment, n.e.s.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


4A994  Computers, ``electronic assemblies'', and related equipment not 
controlled by 4A001, 4A002, or 4A003, and specially designed components 
therefor.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Electronic computers and related equipment, and ``electronic 
assemblies'' and specially designed components therefor, rated for 
operation at an ambient temperature above 343 K (70 deg. C);
    b. ``Digital computers'' having a ``composite theoretical 
performance'' (``CTP'') equal to or greater than 6 million 
theoretical operations per second (Mtops);
    c. ``Assemblies'' not controlled by 4A003 that are specially 
designed or modified to enhance performance by aggregation of 
``computing elements'' (``CEs''), as follows:
    c.1. Designed to be capable of aggregation in configurations of 
16 or more ``computing elements'' (``CEs''); or
    c.2. Having a sum of maximum data rates on all channels 
available for connection to associated processors exceeding 40 
million Bytes/s;

    Note 1: 4A994.c applies only to ``electronic assemblies'' and 
programmable interconnections with a ``CTP'' not exceeding the 
limits in 4A994.b, when shipped as unintegrated ``electronic 
assemblies''. It does not apply to ``electronic assemblies'' 
inherently limited by nature of their design for use as related 
equipment controlled by 4A994.
    Note 2: 4A994.c does not control any ``electronic assembly'' 
specially designed for a product or family of products whose maximum 
configuration does not exceed the limits of 4A994.b.

    d. Disk drives and solid state storage equipment:
    d.1. Magnetic, erasable optical or magneto-optical disk drives 
with a ``maximum bit transfer rate'' exceeding 25 million bit/s;
    d.2. Solid state storage equipment, other than ``main storage'' 
(also known as solid state disks or RAM disks), with a ``maximum bit 
transfer rate'' exceeding 36 million bit/s;
    e. Input/output control units designed for use with equipment 
controlled by 4A994.d;
    f. Equipment for ``signal processing'' or ``image enhancement'', 
not controlled by 4A003, having a ``composite theoretical 
performance'' (``CTP'') exceeding 8.5 million theoretical operations 
per second (Mtops);
    g. Graphics accelerators or graphics coprocessors, not 
controlled by 4A003, that exceeds a ``3-D vector rate'' of 400,000 
or, if supported by 2-D vectors only, a ``2-D vector rate'' of 
600,000;

    Note 1: The provisions of 4A994.g do not apply to work stations 
designed for and limited to:

    a. Graphic arts (e.g., printing, publishing); and
    b. The display of two-dimensional vectors.
    h. Color displays or monitors having more than 120 resolvable 
elements per cm in the direction of the maximum pixel density;

    Note 1: 4A994.h does not control displays or monitors not 
specially designed for electronic computers.

[[Page 12990]]

    Note 2: Displays specially designed for air traffic control 
(ATC) systems are treated as specially designed components for ATC 
systems under Category 6.

    i. Equipment containing ``terminal interface equipment'' 
exceeding the limits in 5A991.

    Note: For the purposes of 4A994.i, ``terminal interface 
equipment'' includes ``local area network'' interfaces, modems and 
other communications interfaces. ``Local area network'' interfaces 
are evaluated as ``network access controllers''.

B. Test, Inspection and Production Equipment


4B994  Equipment for the ``development'' and ``production'' of magnetic 
and optical storage equipment.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: This entry does not control general-purpose 
sputtering equipment.
    Items:

    a. Equipment specially designed for the application of magnetic 
coating to controlled non-flexible (rigid) magnetic or magneto-
optical media;
    b. ``Stored program controlled'' equipment specially designed 
for monitoring, grading, exercising or testing controlled rigid 
magnetic media;
    c. Equipment specially designed for the ``production'' or 
alignment of heads or head/disk assemblies for controlled rigid 
magnetic and magneto-optical storage, and electro-mechanical or 
optical components therefor.

C. Materials


4C994  Materials specially formulated for and required for the 
fabrication of head/disk assemblies for controlled magnetic and 
magneto-optical hard disk drives.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

D. Software


4D001  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled by 
4A001 to 4A004, 4A101, or ``software'' controlled by 4D001 to 4D003.

License Requirements

    Reason for Control: NS, MT, CC, AT, NP, XP

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``software'' for items     NS Column 1.                   
 controlled by 4A001 to 4A004, 4D001 or                                 
 4D003.                                                                 
MT applies to ``software'' for           MT Column 1.                   
 equipment controlled by 4A001 to 4A003                                 
 or 4A101 for MT reasons.                                               
CC applies to ``software'' for           CC Column 1.                   
 equipment controlled by 4A003 for CC                                   
 reasons.                                                               
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

    NP applies to all ``software'' controlled by this entry unless a 
License Exception is available. See Sec. 742.3(b) of the EAR for 
information on applicable licensing review policies.
    XP applies to all ``software'' controlled by this entry unless a 
License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.

License Exceptions

    CIV: Yes, (see Advisory Notes 2 and 3 to Category 4)
    TSR: Yes, except for computers requiring a license.

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


4D002  ``Software'' specially designed or modified to support 
``technology'' controlled by 4E001 or 4E002.

License Requirements

    Reason for Control: NS, MT, AT, NP, XP

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``software'' for           MT Column 1.                   
 equipment controlled by 4A001 to 4A003                                 
 or 4A101 for MT reasons.                                               
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

    NP applies to all ``software'' controlled by this entry unless a 
License Exception is available. See Sec. 742.3(b) of the EAR for 
information on applicable licensing review policies.
    XP applies to all ``software'' controlled by this entry unless a 
License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.

License Exceptions

    CIV: N/A
    TSR: Yes, except ``software'' specifically designed or modified 
to support ``technology'' for computers requiring a license.

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


4D003  Specific ``software'', as described in this entry.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes, except 4D003.c

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Operating system ``software'', ``software'' ``development'' 
tools and compilers specially designed for ``multi-data-stream 
processing'' equipment, in ``source code'';
    b. ``Expert systems'' or ``software'' for ``expert system'' 
inference engines providing both:
    b.1. Time dependent rules; and
    b.2. Primitives to handle the time characteristics of the rules 
and the facts;
    c. ``Software'' having characteristics or performing functions 
exceeding the limits in the ``information security'' entries in 
Category 5;
    d. Operating systems specially designed for ``real time 
processing'' equipment that guarantees a ``global interrupt latency 
time'' of less than 20 microseconds.


4D980  ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of items controlled by 4A980.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A
    
[[Page 12991]]


List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


4D993  ``Program'' proof and validation ``software'', ``software'' 
allowing the automatic generation of ``source codes'', and operating 
systems not controlled by 4D003 that are specially designed for real 
time processing equipment.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Program'' proof and validation ``software'' using 
mathematical and analytical techniques and designed or modified for 
``programs'' having more than 500,000 ``source code'' instructions;
    b. ``Software'' allowing the automatic generation of ``source 
codes'' from data acquired on line from external sensors described 
in the Commerce Control List;
    c. Operating systems not controlled by 4D003 that are specially 
designed for ``real time processing'' equipment that guarantees a 
``global interrupt latency time'' of less than 30 microseconds.


4D994  ``Software'' specially designed or modified for the 
``development'', ``production'', or ``use'' of equipment controlled by 
4A994, 4B994 and materials controlled by 4C994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

E. Technology


4E001  ``Technology'' according to the General Technology Note, for the 
``development'', ``production'' or ``use'' of equipment controlled by 
4A001 to 4A004, 4A101 or ``software'' controlled by 4D (except 4A980, 
4A993 or 4A994).

License Requirements

    Reason for Control: NS, MT, CC, AT, NP, XP

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1.                   
 controlled by 4A001 to 4A004, 4D001 or                                 
 4D002.                                                                 
MT applies to ``technology'' for items   MT Column 1.                   
 controlled by 4A001 to 4A003, 4A101                                    
 4D001 or 4D002 for MT reasons.                                         
CC applies to ``technology'' for         CC Column 1.                   
 equipment controlled by 4A003 for CC                                   
 reasons.                                                               
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

    NP applies to all ``technology'' controlled by this entry unless 
a License Exception is available. See Sec. 742.3(b) of the EAR for 
information on applicable licensing review policies.
    XP applies to all ``technology'' controlled by this entry unless 
a License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.

License Exceptions

    CIV: N/A
    TSR: Yes, except ``technology'' for computers with a CTP > 2,000 
Mtops.

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


4E002  Other ``technology''.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Technology'' for the ``development'' or ``production'' of 
equipment designed for ``multi-data-stream processing'' where the 
``CTP'' exceeds 120 Mtops;
    b. ``Technology'' ``required'' for the ``development'' or 
``production'' of magnetic hard disk drives with a Maximum Bit 
Transfer Rate (``MBTR'') exceeding 47 Mbits/s.


4E980  ``Technology'' for the ``development'', ``production'', or 
``use'' of items controlled by 4A980.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


4E992  ``Technology'' for the ``development'', ``production'', or 
``use'' of equipment controlled by 4A994 and 4B994, materials 
controlled by 4C994, or ``software'' controlled by 4D992, 4D993, or 
4D994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


4E993  ``Technology'' for the ``development'' or ``production'' of 
graphics accelerators or equipment designed for ``multi-data-stream 
processing'' and ``technology'' ``required'' for the ``development'' or 
``production'' of magnetic hard disk drives.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A
    
[[Page 12992]]


List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Technology'' for the ``development'' or ``production'' of 
graphics accelerators not controlled by 4A003.d or 4A994.g;
    b. ``Technology'', not controlled by 4E002.a, for the 
``development'' or ``production'' of equipment designed for ``multi-
data-stream processing'';
    c. ``Technology'', not controlled by 4E002.b, ``required'' for 
the ``development'' or ``production'' of magnetic hard disk drives 
with a ``maximum bit transfer rate'' (``MBTR'') exceeding 11 Mbit/s.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes for Category 4

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Romania of the items controlled by Category 4 for 
national security reasons, except:
    a. Computers controlled by 4A001 or 4A002;
    b. ``Digital computers'' controlled by 4A003.b having a 
``composite theoretical performance (``CPT'') exceeding 100 million 
theoretical operations per second (Mtops);
    c. Computers controlled by 4A004, and specially related 
equipment, ``electronic assemblies'' and components therefor;
    d. ``Software'' specially designed and ``technology'' 
``required'' for the equipment described in this Advisory Note 1 .a, 
.b, or .c that are controlled by 4D or 4E.
    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in the People's Republic of China of ``digital 
computers'', specially designed components and related equipment 
therefor, controlled by 4A003.b, .d, .e, .f, or ``software'' 
controlled by 4D001, provided that:
    a. They will be operated by civil end-users for civil 
applications;
    b. They are exported or reexported as complete systems or 
enhancements to previously exported systems up to the limits in this 
Advisory Note 2.d;
    c. They have been primarily designed and used for non-strategic 
applications;
    d. The ``CTP'' of the ``digital computers'' does not exceed 20 
Mtops;
    e. Equipment containing ``terminal interface equipment'' does 
not exceed:
    1. The limits of Advisory Note 3 to Category 5, Section I 
(Telecommunications);
    2. The limits of 5A002.c.2; or
    3. A ``digital transfer rate'' of 100 Mbits/s on the common 
media for ``network access controllers'' and related equipment 
controlled by 5A002.c.3; and
    f. Any controlled ``software'' is the minimum required for the 
``use'' of the approved ``digital computers'' and related equipment.

    Advisory Note 3: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of ``digital computers'', 
``electronic assemblies'' or related equipment controlled by 4A003, 
or specially designed components therefor, and ``software'' 
controlled by 4D001, provided that:
    a. They will be operated by civil end-users for civil 
applications;
    b. They have been primarily designed and used for non-strategic 
applications;
    c. They do not exceed any of the following limits:
    1. The ``CTP'' of the ``digital computers'' does not exceed 
1,000 Mtops;
    2. The ``3-D vector rate'' does not exceed 3 million;
    3. The total data transfer rate of equipment controlled by 
4A003.g does not exceed 400 MB/second;
    d. When exported as enhancements, the enhanced ``digital 
computer'' does not exceed the limit in this Advisory Note 3.c;
    e. Exports of items covered by this Advisory Note 3 shall be 
subject to the following restrictions:
    1. The equipment will be used primarily for the specific non-
strategic application for which the export or reexport has been 
approved; and
    2. The equipment will not be used for the design, 
``development'', or ``production'' of items controlled for national 
security reasons; and
    3. The exporter or reexporter shall report promptly any evidence 
of the removal or diversion of the equipment from authorized 
purposes related to the specific license;
    f. For systems where the ``CTP'' exceeds 520 Mtops, the 
following conditions apply:
    1. The licensee or the designated representative of the 
licensee, who must be from a country other than that listed in 
Country Group D:1, must have the right of access to all the 
equipment and may carry out inspections;
    2. The licensee, upon the request of the BXA, must carry out 
inspections to establish that all the equipment and systems exported 
or reexported under the provisions of this Advisory Note:
    a. Are being used for the intended civil purposes; and
    b. Are still located at the installation sites. The licensee 
shall report the findings from the inspection to the BXA (at P.O. 
Box 273, Washington, D.C. 20044) within one month after completing 
the inspection.

    Advisory Note 4: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of equipment controlled by 4A003.g, 
provided that it is exported or reexported for ``use'' in 
interconnecting peripheral equipment to ``digital computers'' not 
controlled by 4A003.b.

    Information on How to Calculate ``Composite Theoretical 
Performance'' (``CTP''):

    Technical Note: ``Composite Theoretical Performance'' (CTP).

Abbreviations Used in This Technical Note

CE  ``computing element'' (typically an arithmetic logical unit)
FP  floating point
XP  fixed point
t  execution time
XOR  exclusive OR
CPU  central processing unit
TP  theoretical performance (of a single CE)
CTP  ``composite theoretical performance'' (multiple CEs)
R  effective calculating rate
WL  word length
L  word length adjustment
*  multiply

    Execution time `t' is expressed in microseconds, TP and ``CTP'' 
are expressed in Mtops (millions of theoretical operations per 
second) and WL is expressed in bits.

Outline of ``CTP'' Calculation Method

    ``CTP'' is a measure of computational performance given in 
millions of theoretical operations per second (Mtops). In 
calculating the ``Composite Theoretical Performance'' (``CTP'') of 
an aggregation of ``Computing Elements'' (``CEs''), the following 
three steps are required:
    1. Calculate the effective calculating rate (R) for each 
``computing element'' (``CE'');
    2. Apply the word length adjustment (L) to the effective 
calculating rate (R), resulting in a Theoretical Performance (TP) 
for each ``computing element'' (``CE'');
    3. If there is more than one ``computing element'' (``CE''), 
combine the Theoretical Performances (TPs), resulting in a 
``Composite Theoretical Performance'' (``CTP'') for the aggregation. 
Details for these steps are given in the following section.

    Note 1: For aggregations of multiple ``computing elements'' 
(``CEs'') that have both shared and unshared memory subsystems, the 
calculation of ``CTP'' is completed hierarchically, in two steps: 
first, aggregate the group of ``computing elements'' (``CEs'') 
sharing memory, second calculate the ``CTP'' of the groups using the 
calculation method for multiple ``computing elements'' (``CEs'') not 
sharing memory.

    Note 2: ``Computing elements'' (``CEs'') that are limited to 
input/output and peripheral functions (e.g., disk drive, 
communication and video display controllers) are not aggregated into 
the ``CTP'' calculation.

    The following table shows the method of calculating the 
``Effective Calculating Rate'' (R) for each ``Computing Element'' 
(``CE''):
    Step 1: The effective calculating rate R. For Computing Elements 
(CEs) Implementing: Effective calculating Rate, R

    Note: Every ``CE'' must be evaluated independently

[[Page 12993]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.014


    If no add is implemented use:
    [GRAPHIC] [TIFF OMITTED] TR25MR96.015
    
    If neither add nor multiply is implemented use the fastest 
available arithmetic operation as follows:
[GRAPHIC] [TIFF OMITTED] TR25MR96.016

    See Notes X and Y.
    [GRAPHIC] [TIFF OMITTED] TR25MR96.017
    
    See Notes X and Y.
    Both FP and XP (R).
    Calculate both Rxp, Rfp.
    For simple logic processors not implementing any of the 
specified arithmetic operations.
[GRAPHIC] [TIFF OMITTED] TR25MR96.018

    Where tlog is the execute time of the XOR, or for logic 
hardware not implementing the XOR, the fastest simple logic 
operation.
    See Notes X and Z.
    For special logic processors not using any of the specified 
arithmetic or logic operations. R = Rt x WL/64
    Where R is the number of results per second, WL is the number of 
bits upon which the logic operation occurs, and 64 is a factor to 
normalize to a 64 bit operation.

    Note W: For a pipelined ``CE'' capable of executing up to one 
arithmetic or logic operation every clock cycle after the pipeline 
is full, a pipelined rate can be established. The effective 
calculating rate (R) for such a ``CE'' is the faster of the 
pipelined rate or non-pipelined execution rate.

    Note X: For a ``CE'' that performs multiple operations of a 
specific type in a single cycle (e.g., two additions per cycle or 
two identical logic operations per cycle), the execution time t is 
given by:
[GRAPHIC] [TIFF OMITTED] TR25MR96.019

    ``Computing elements'' (``CEs'') that perform different types of 
arithmetic or logic operations in a single machine cycle are to be 
treated as multiple separate ``computing elements'' (``CEs'') 
performing simultaneously (e.g., a ``CE'' performing an addition and 
a multiplication in one cycle is to be treated as two ``CEs'', the 
first performing an addition in one cycle and the second performing 
a multiplication in one cycle).
    If a single ``Computing element'' (``CE'') has both scalar 
function and vector function, use the shorter execution time value.

    Note Y: For the ``CE'' that does not implement FP add or FP 
multiply, but that performs FP divide:

[[Page 12994]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.020


    If the ``CE'' implements FP reciprocal, but not FP add, FP 
multiply or FP divide, then:
[GRAPHIC] [TIFF OMITTED] TR25MR96.021

    If the divide is not implemented, the fp reciprocal should be 
used.
    If none of the specified instructions is implemented, the 
effective floating point (FP) rate is 0.
    Note Z: In simple logic operations, a single instruction 
performs a single logic manipulation of no more than two operands of 
given lengths. In complex logic operations, a single instruction 
performs multiple logic manipulations to produce one or more results 
from two or more operands.
    Rates should be calculated for all supported operand lengths 
considering both pipelined operations (if supported), and non-
pipelined operations, using the fastest executing instruction for 
each operand length based on:
    1. Pipelined or register-to-register operations. Exclude 
extraordinarily short execution times generated for operations on a 
predetermined operand or operands (for example, multiplication by 0 
or 1). If no register-to-register operations are implemented, 
continue with (2).
    2. The faster of register-to-memory or memory-to-register 
operations; if these also do not exist, then continue with (3).
    3. Memory-to-memory.
    In each case above, use the shortest execution time certified by 
the manufacturer.
    Step 2: TP for each supported operand length WL:
    Adjust the effective rate R (or Rt) by the word length 
adjustment L as follows:
[GRAPHIC] [TIFF OMITTED] TR25MR96.022

    Note: The word length WL used in these calculations is the 
operand length in bits. (If an operation uses operands of different 
lengths, select the largest word length.)

    The combination of a mantissa ALU and an exponent ALU of a 
floating point processor or unit is considered to be one ``computing 
Element'' (``CE'') with a Word Length (WL) equal to the number of 
bits in the data representation (typically 32 or 64) for purposes of 
the ``Composite Theoretical Performance'' (``CTP'') calculations.
    This adjustment is not applied to specialized logic processors 
that do not use XOR instructions. In this case TP = R.
    Select the maximum resulting value of TP for:
    Each XP-only ``CE'' (Rxp);
    Each FP-only ``CE'' (Rfp);
    Each combined FP and XP ``CE'' (R);
    Each simple logic processor not implementing any of the 
specified arithmetic operations; and
    Each special logic processor not using any of the specified 
arithmetic or logic operations.
    Step 3: ``CTP'' for aggregations of ``CEs'', including CPU's:
    For a CPU with a single ``CE'', ``CTP'' = TP (for CEs performing 
both fixed and floating point operations, TP = max (TPfp, 
TPxp)).
    ``CTP'' for aggregations of multiple ``CEs'' operating 
simultaneously is calculated as follows:

    Note 1: For aggregations that do not allow all of the ``CEs'' to 
run simultaneously, the possible combination of ``CEs'' that 
provides the largest ``CTP'' should be used. The TP of each 
contributing ``CE'' is to be calculated at its maximum value 
theoretically possible before the ``CTP'' of the combination is 
derived.

    N.B.: To determine the possible combinations of simultaneously 
operating ``CEs'', generate an instruction sequence that initiates 
operations in multiple ``CEs'', beginning with the slowest ``CE'' 
(the one needing the largest number of cycles to complete its 
operation) and ending with the fastest ``CE''. At each cycle of the 
sequence, the combination of ``CEs'' that are in operation during 
that cycle is a possible combination. The instruction sequence must 
take into account all hardware and/or architectural constraints on 
overlapping operations.

    Note 2: A single integrated circuit chip or board assembly may 
contain multiple ``CEs''.
    Note 3: Simultaneous operations are assumed to exist when the 
computer manufacturer claims concurrent, parallel or simultaneous 
operation or execution in a manual or brochure for the computer.
    Note 4: ``CTP'' values are not to be aggregated for ``CE''-
combinations (inter)connected by ``Local Area Networks'', Wide Area 
Networks, Input/Output shared connections/devices, I/O controllers 
and any communication interconnection implemented by ``software''.
    Note 5: ``CTP'' values must be aggregated for multiple ``CEs'' 
specially designed to enhance performance by aggregation, operating 
simultaneously and sharing memory,-- or multiple memory/``CE''--
combinations operating simultaneously utilizing specially designed 
hardware. This aggregation does not apply to ``electronic 
assemblies'' controlled by 4A003.c.

    ``CTP'' = TP1 + C2 * TP2 + . . . + Cn * 
TPn, where the TPs are ordered by value, with TP1, being 
the highest, TP2 being the second highest, . . . and TPn 
being the lowest. Ci is a coefficient determined by the 
strength of the interconnection between ``CEs'', as follows:
    For multiple ``CEs'' operating simultaneously and sharing 
memory:
[GRAPHIC] [TIFF OMITTED] TR25MR96.023

    Note 1: When the ``CTP'' calculated by the above method does not 
exceed 194 Mtops, the following formula may be used to calculate 
Ci:
[GRAPHIC] [TIFF OMITTED] TR25MR96.024

    where m = the number of ``CEs'' or groups of ``CEs'' sharing 
access.
    Provided:
    1. The TPi of each ``CE'' or group of ``CEs'' does not 
exceed 30 Mtops;
    2. The ``CEs'' or groups of ``CEs'' share access to main memory 
(excluding cache memory) over a single channel; and
    3. Only one ``CE'' or group of ``CEs'' can have use of the 
channel at any given time.

    N.B.: This does not apply to items controlled under Category 3.

    Note 2: ``CEs'' share memory if they access a common segment of 
solid state memory. This memory may include cache memory, main 
memory, or other internal memory. Peripheral memory devices such as 
disk drives, tape drives, or RAM disks are not included.

    For multiple ``CEs'' or groups of ``CEs'' not sharing memory, 
interconnected by one or more data channels:

Ci=0.75*ki (i=2, . . ., 32) (see NOTE on ki factor)
=0.60*ki (i=33, . . ., 64)
=0.45*ki (i=65, . . ., 256)
=0.30*ki (i>256)

    The value of Ci is based on the number of ``CEs'', not the 
number of nodes.

where ki=min (Si/Kr, 1), and
    Kr=normalizing factor of 20 MByte/s.
    Si=sum of the maximum data rates (in units of MBytes/s) for 
all data channels connected to the ith ``CE'' or group of 
``CEs'' sharing memory.

    When calculating a Ci for a group of ``CEs'', the number of 
the first ``CE'' in a group determines the proper limit for Ci. 
For example, in an aggregation of groups consisting of 3 ``CEs'' 
each, the 22nd group will contain ``CE''64, ``CE''65 and 
``CE''66 . The proper limit for Ci for this group is 0.60.
    Aggregation (of ``CEs'' or groups of ``CEs'') should be from the 
fastest-to-slowest; i.e.:

[[Page 12995]]

    TP1TP2TP3; and in the case 
of TPi=TPi+1, from the largest to smallest, i.e.:
    CiCi+1

    Note: The ki factor is not to be applied to ``CEs'' to 2 to 
12 if the TP i / of the ``CE'' or group of ``CEs'' is more than 50 
Mtops; i.e., Ci for ``CEs'' 2 to 12 is 0.75.

Category 5--Telecommunications and Information Security

    Notice: Category 5 entries are divided into two sections. (I) 
Telecommunications and (II) Information Security.

I. Telecommnications

    Notes: 1. The control status of components, ``lasers'', test and 
``production'' equipment, materials and ``software'' therefor that 
are specially designed for telecommunications equipment or systems 
is defined in the telecommunications entries in this Category.

    2. ``Digital computers'', related equipment or ``software'', 
when essential for the operation and support of telecommunications 
equipment described by the telecommunications equipment in this 
Category, are regarded as specially designed components, provided 
they are the standard models customarily supplied by the 
manufacturer. This includes operation, administration, maintenance, 
engineering or billing computer systems.

A. Equipment, Assemblies and Components


5A001  Any type of telecommunications equipment having any of the 
following characteristics, functions or features:

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to 5A001.a..................  NS Column 1.                   
NS applies to 5A001.b., c., d., .e, or   NS Column 2.                   
 .f.                                                                    
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A for 5A001.a;
    $5000 for 5A001.b, .c, .d, and .f;
    $3000 for 5A001.e
    GBS: Yes, except 5A001.a, b.8, and b.9
    CIV: Yes, except 5A001.a, b.8, and b.9

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Any type of telecommunications equipment having any of the 
following characteristics, functions or features:
    a.1. Specially designed to withstand transitory electronic 
effects or electromagnetic pulse arising from a nuclear explosion;
    a.2. Specially hardened to withstand gamma, neutron or ion 
radiation;
    a.3. Specially designed to operate outside the temperature range 
from 218 K (-55 deg. C) to 397 K (124 deg. C).

    Note: 5A001.a.3 applies only to electronic equipment.
    Note: 5A001.a.2 and a.3 do not apply to equipment on board 
satellites.

    b. Telecommunication transmission equipment or systems and 
specially designed components and accessories therefor, having any 
of the characteristics, functions or features:

    Note: Telecommunication transmission equipment:
    a. Categorized as follows, or combinations thereof:
    1. Radio equipment (e.g., transmitters, receivers and 
transceivers);
    2. Line terminating equipment;
    3. Intermediate amplifier equipment;
    4. Repeater equipment;
    5. Regenerator equipment;
    6. Translation encoders (transcoders);
    7. Multiplex equipment (statistical multiplex included);
    8. Modulators/demodulators (modems);
    9. Transmultiplex equipment (see CCITT Rec. G.7Ol);
    10. ``Stored program controlled'' digital crossconnection 
equipment;
    11. ``Gateways'' and bridges;
    12. ``Media access units''; and
    b. Designed for use in single or multi-channel communication 
via:
    1. Wire (line);
    2. Coaxial cable;
    3. Optical fiber cable;
    4. Electromagnetic radiation; or
    5. Underwater acoustic wave propagation.
    b.1. Employing digital techniques, including digital processing 
of analog signals, and designed to operate at a ``digital transfer 
rate'' at the highest multiplex level exceeding 45 Mbit/s or a 
``total digital transfer rate'' exceeding 90 Mbit/s.

    Note: 5A001.b.1. does not control equipment specially designed 
to be integrated and operated in any satellite system for civil use.

    b.2. Being ``stored program controlled'' digital cross connect 
equipment with a ``digital transfer rate'' exceeding 8.5 Mbit/s per 
port.
    b.3. Being equipment containing:
    b.3.a. Modems using the ``bandwidth of one voice channel'' with 
a ``data signalling rate'' exceeding 28,800 bits/s;
    b.3.b. ``Communication channel controllers'' with a digital 
output having a ``data signalling rate'' exceeding 2.1 Mbit/s per 
channel; or
    b.3.c. ``Network access controllers'' and their related common 
medium having a ``digital transfer rate'' exceeding 156 Mbit/s;

    Note: If any non-controlled equipment contains a ``network 
access controller'', it cannot have any type of telecommunications 
interface except those described in, but not controlled by, 
5A001.b.3.
    b.4 Employing a ``laser'' and having any of the following 
characteristics:
    b.4.a. Having a transmission wavelength exceeding 1,000 nm;
    b.4.b. Employing analog techniques and having a bandwidth 
exceeding 45 MHz;
    b.4.c. Employing coherent optical transmission or coherent 
optical detection techniques (also called optical heterodyne or 
homodyne techniques);
    b.4.d. Employing wavelength division multiplexing techniques; or
    b.4.e. Performing ``optical amplification''.
    b.5. Radio equipment operating at input or output frequencies 
exceeding:
    b.5.a. 31 GHz for satellite-earth station applications; or
    b.5.b. 26.5 GHz for other applications;

    Note: 5A001.b.5.b. does not control equipment for civil use when 
conforming with an International Telecommunicatios Union (ITU) 
allocated band between 26.5 GHz and 31 GHz.
    b.6. Being radio equipment:
    b.6.a. Employing quadrature-amplitude-modulation (QAM) 
techniques above level 4 if the ``total digital transfer rate'' 
exceeds 8.5 Mbit/s;
    b.6.b. Employing quadrature-amplitude-modulation (QAM) 
techniques above level 16 if the ``total digital transfer rate'' is 
equal to or less than 8.5 Mbit/s; or
    b.6.c. Employing other digital modulation techniques and having 
a ``spectral efficiency'' greater than 3 bit/sec/Hz;

    Note 1: 5A001.b.6 does not control equipment specially designed 
to be integrated and operated in any satellite system for civil use.

    Note 2: 5A001.b.6. does not control radio relay equipment for 
operation in an ITU allocated band:
    a.1. Not exceeding 960 MHz; or
    a.2. With a ``total digital transfer rate'' not exceeding 8.5 
Mbit/s; and
    b. Having a ``spectral efficiency'' not exceeding 4 bit/sec/Hz.
    b.7 Being radio equipment operating in the 1.5 to 87.5 MHz band 
and having either of the following characteristics:
    b.7.a.1. Automatically predicting and selecting frequencies and 
``total digital transfer rates'' per channel to optimize the 
transmission; and
    b.7.a.2. Incorporating a linear power amplifier configuration 
having a capability to support multiple signals simultaneously at an 
output power of 1 kW or more in the 1.5 to 30 Mhz frequency range or 
250 W or more in the 30 to 87.5 MHz frequency range, over an 
``instantaneous bandwidth'' of one octave or more and with an output 
harmonic and distortion content of better than -80 dB; or
    b.7.b. Incorporating adaptive techniques providing more than 15 
dB suppression of an interfering signal.
    b.8. Being radio equipment employing ``spread spectrum'' or 
``frequency agility'' (frequency hopping) techniques having any of 
the following characteristics:
    b.8.a. User programmable spreading codes; or
    b.8.b. A total transmitted bandwidth that is 100 or more times 
the bandwidth of any one information channel and in excess of 50 
kHz.
    b.9. Being digitally controlled radio receivers having more than 
1,000 channels, that:
    b.9.a. Search or scan automatically a part of the 
electromagnetic spectrum;
    b.9.b. Identify the received signals or the type of transmitter; 
and
    b.9.c. Have a ``frequency switching time'' of less than 1 ms;
    b.10. Providing functions of digital ``signal processing'' as 
follows:
    b.10.a. Voice coding at rates less than 2,400 bit/s;
    
[[Page 12996]]

    b.10.b. Employing circuitry that incorporates ``user-accessible 
programmability'' of digital ``signal processing'' circuits 
exceeding the limits of 4A003.b;
    b.11. Being underwater communications systems having any of the 
following characteristics:
    b.11.a. An acoustic carrier frequency outside the range of 20 to 
60 kHz;
    b.11.b. Using an electromagnetic carrier frequency below 30 kHz; 
or
    b.11.c. Using electronic beam steering techniques.
    c. ``Stored program controlled'' switching equipment and related 
signalling systems having any of the following characteristics, 
functions or features; and specially designed components and 
accessories therefor:

    Note: Statistical multiplexers with digital input and digital 
output that provide switching are treated as ``stored program 
controlled'' switches.

    c.1. ``Common channel signalling'',

    Note: Signalling systems in which the signalling channel is 
carried in and refers to no more than 32 multiplexed channels 
forming a trunk line of no more than 2.1 Mbit/s, and in which the 
signalling information is carried in a fixed, time division 
multiplexed channel without the use of labelled messages, are not 
considered to be ``common channel signalling'' systems.

    c.2. Containing ``Integrated Services Digital Network'' (ISDN) 
functions and having either of the following:
    c.2.a. Switch-terminal (e.g., subscriber line) interfaces with a 
``digital transfer rate'' at the highest multiplex level exceeding 
192,000 bit/s, including the associated signalling channel (e.g., 
2B+D); or
    c.2.b. The capability that a signalling message received by a 
switch on a given channel that is related to a communication on 
another channel may be passed through to another switch.

    Note: 5A001.c.2. does not preclude:

    a. The evaluation and appropriate actions taken by the receiving 
switch.
    b. Unrelated user message traffic on a D channel of ISDN.
    c.3. Multi-level priority and pre-emption for circuit switching;

    Note: 5A001.c.3. does not control single-level call preemption.

    c.4. ``Dynamic adaptive routing'';
    c.5. Routing or switching of ``datagram'' packets;
    c.6. Routing or switching of ``fast select'' packets;

    Note: The restrictions in 5A001.c.5. and c.6. do not apply to 
networks restricted to using only ``network access controllers'' or 
to ``network access controllers'' themselves.

    c.7. Designed for automatic hand-off of cellular radio calls to 
other cellular switches or automatic connection to a centralized 
subscriber data base common to more than one switch;
    c.8. Being packet switches, circuit switches and routers with 
ports or lines exceeding either:
    c.8.a. A ``data signalling rate'' of 64,000 bit/s per channel 
for a ``communications channel controller''; or

    Note: 5A001.c.8.a. does not preclude the multiplexing over a 
composite link of communications channels not controlled by 
5A001.b.1.

    c.8.b. A ``digital transfer rate'' of 33 Mbit/s for a ``network 
access controller'' and related common media.
    c.9. ``Optical switching'';
    c.10. Employing ``Asynchronous Transfer Mode'' (ATM) techniques;
    c.11. Containing ``stored program controlled'' digital 
crossconnect equipment with ``digital transfer rate'' exceeding 8.5 
Mbit/s per port;
    d. Centralized network control having both of the following 
characteristics:
    d.1. Receives data from the nodes; and
    d.2. Processes these data in order to provide control of traffic 
not requiring operator decisions, and thereby performing ``dynamic 
adaptive routing'';

    Note: 5A001.d. does not preclude control of traffic as a 
function of predictable statistical traffic conditions.

    e. Optical fiber communication cables, optical fibers and 
accessories therefor, as follows:
    e.1. Optical fiber or cable of more than 50 m in length having 
either of the following characteristics:
    e.1.a. Designed for single mode operation; or
    e.1.b. For optical fibers, specified by the manufacturer as 
being capable of withstanding a Proof Test tensile stress of 
2. x 109 N/m2 or more;

    Technical Note: Proof Test: On-line or off-line production 
screen testing that dynamically applies a prescribed tensile stress 
over a 0.5 to 3 m length of fiber at a running rate of 2 to 5 m/s 
while passing between capstans approximately 150 mm in diameter. The 
ambient temperature is a nominal 293 K (20 deg. C) and relative 
humidity of 40%.

    N.B.: Equivalent national standards may be used for executing 
the Proof Test.

    e.2. Optical fiber cables and accessories designed for 
underwater use (for fiber-optic hull penetrators or connectors, see 
8A002.c);
    f. Phased array antennae, operating above 10.5 GHz, containing 
active elements and distributed components, and designed to permit 
electronic control of beam shaping and pointing, except for landing 
systems with instruments meeting International Civil Aviation 
Organization (ICAO) standards (microwave landing systems (MLS)).


5A101  Telemetering and telecontrol equipment usable for ``missiles''.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5A980  Communications intercepting devices; and parts and accessories 
therefor.

License Requirements

    Reason for Control:
    Controls on equipment described in this entry are maintained in 
accordance with the Omnibus Crime Control and Safe Streets Act of 
1968 (Pub. L. 90-351). A license is required for ALL destinations, 
regardless of end-use. Accordingly, a column specific to this 
control does not appear on the Commerce Country Chart. (See 
Sec. 742.13 of the EAR for additional information on the scope of 
this control.)

    Note: These items are subject to the United Nations Security 
Council arms embargo against Rwanda described in Sec. 746.8 of the 
EAR.

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5A990  Any type of telecommunications equipment, not controlled by 
5A001.a, specially designed to operate outside the temperature range 
from 219 K (-54 deg. C) to 397 K (124 deg. C).

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5A991  Transmission equipment, not controlled by 5A001.b.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------


[[Page 12997]]


License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Modems using the ``bandwidth of one voice channel'' with a 
``data signalling rate'' exceeding 9,600 bits per second;
    b. ``Communication channel controllers'' with a digital output 
having a ``data signalling rate'' exceeding 64,000 bit/s per 
channel; or
    c. ``Network access controller'' and their related common medium 
having a ``digital transfer rate'' exceeding 33 Mbit/s.


5A992  Mobile communications equipment, n.e.s., and assemblies and 
components therefor.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5A993  Radio relay communications equipment designed for use at 
frequencies equal to or exceeding 19.7 GHz and assemblies and 
components therefor, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5A994  ``Data (message) switching'' equipment or systems designed for 
``packet-mode operation'' and assemblies and components therefor, 
n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: Data (message) switching is defined as the 
technique for: (a) Accepting data groups (including messages, 
packets, or other digital or telegraphic information groups 
transmitted as a composite whole); (b) Storing (buffering) data 
groups as necessary; (c) Processing part of all the data groups, as 
necessary, for the purpose of: (1) Control (routing, priority, 
formatting, code conversion, error control, retransmission or 
journaling); (2) Transmission; or (3) Multiplexing; and (d) 
Retransmitting (processed) data groups when transmission or 
receiving facilities are available.
    Items: The list of items controlled is contained in the ECCN 
heading.

B. Test, Inspection and Production Equipment

License Requirements


5B001  Equipment, and specially designed components and accessories 
therefor.

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definition: This entry does not control optical fibers 
and ``optical fiber preform'' characterization equipment not using 
semiconductor ``lasers''.
    Items:
    a. Equipment and specially designed components and accessories 
therefor, specially designed for:
    a.1. ``Development'' of equipment, materials, functions, or 
features controlled by 5A001, 5B001, 5C001, 5D001 or 5E001, 
including measuring or test equipment;
    a.2. ``Production'' of equipment, materials, functions, or 
features controlled by 5A001, 5B001, 5C001, 5D001 or 5E001, 
including measuring, test or repair equipment;
    a.3. ``Use'' of equipment, materials, functions, or features 
exceeding any of the least stringent control criteria applicable in 
5A001, 5B001, 5C001, 5D001 or 5E001, including measuring, repair or 
test equipment.
    b. Other equipment as follows:
    b.1. Bit error rate (BER) test equipment designed or modified to 
test the equipment controlled by 5A001.b.1.;
    b.2. Data communication protocol analyzers, testers and 
simulators for functions controlled by 5A001;
    b.3. Stand alone ``stored program controlled'' radio 
transmission media simulators/channel estimators specially designed 
for testing equipment controlled by 5A001.b.5.


5B994  Telecommunications test equipment, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1,000 for Syria; N/A to Iran
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials


5C001  Preforms of glass or of any other material optimized for the 
manufacture of optical fibers controlled by 5A001.e.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

D. Software


5D001:  Telecommunications ``Software''.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: Yes
    TSR: Yes
    
[[Page 12998]]


List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment or materials 
controlled by 5A001, 5B001, or 5C001.
    b. ``Software'' specially designed or modified to support 
``technology'' controlled by 5E001.
    c. Specific ``software'' as follows:
    c.1. ``Generic software'', other than in machine-executable 
form, specially designed or modified for the ``use'' of ``stored 
program controlled'' digital switching equipment or systems;
    c.2. ``Software'', other than in machine-executable form, 
specially designed or modified for the ``use'' of digital cellular 
radio equipment or systems;
    c.3. ``Software'' specially designed or modified to provide 
characteristics, functions or features of equipment controlled by 
5A001 or 5B001;
    c.4. ``Software'' that provides capability of recovering 
``source code'' of telecommunications ``software'' controlled by 
this Category.
    c.5. ``Software'' specially designed for the ``development'' or 
``production'' of ``software'' controlled by 5D001;


5D101  ``Software'' designed or modified for the ``development'', 
``production'' or ``use'' of items controlled by 5A101.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5D990  ``Software'' specially designed or modified for the 
``development'', ``production'', or ``use'' of equipment controlled by 
5A990 and 5A991.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5D991  ``Software'' specially designed or modified for the 
``development'', ``production'', or ``use'' of telecommunications test 
equipment controlled by 5B994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5D992  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of mobile communications 
equipment controlled by 5A992.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5D993  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of radio relay communication 
equipment controlled by 5A993.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5D994  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of data (message) switching 
equipment controlled by 5A994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

E. Technology


5E001  Telecommunications ``technology''.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Technology'' according to the General Technology Note for 
the ``development'', ``production'' or ``use'' (excluding operation) 
of equipment, systems, materials or ``software'' controlled by 
5A001, 5B001, 5C001, or 5D001.
    b. Specific technologies, as follows:
    b.1. ``Required'' technology for the ``development'' or 
``production'' of telecommunications equipment specially designed to 
be used on board satellites.
    b.2. ``Technology'' for the ``development'' or ``use'' of laser 
communication techniques with the capability of automatically 
acquiring and tracking signals and maintaining communications 
through exoatmosphere or sub-surface (water) media;
    b.3. ``Technology'' for the processing and application of 
coatings to optical fiber specially designed to make it suitable for 
underwater use;
    b.4. ``Technology'' for the ``development'' or ``production'' of 
equipment employing ``Synchronous Digital Hierarchy'' (SDH) or 
``Synchronous Optical Network'' (SONET) techniques;
    b.5. ``Technology'' for the ``development'' or ``production'' of 
``switch fabric'' exceeding 64,000 bits per second per information 
channel other than for digital cross connect integrated in the 
switch;

[[Page 12999]]

    b.6. ``Technology'' for the ``development'' or ``production'' of 
centralized network control;
    b.7. ``Technology'' for the ``development'' or ``production'' of 
digital cellular radio systems;
    b.8. ``Technology'' for the ``development'' or ``production'' of 
``Integrated Services Digital Network'' (ISDN).
    b.9. ``Technology'' for the ``development'' of QAM techniques, 
for radio equipment, above level 4.


5E101  ``Technology'' according to the General Technology Note for the 
``development'', ``production'' or ``use'' of equipment controlled by 
5A101 or ``software'' controlled by 5D101.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1 .                  
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5E990  Technology for the ``development'', ``production'' or ``use'' of 
equipment controlled by 5A990 or 5A991 or ``software'' controlled by 
5D990.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5E991  ``Technology'' for the ``development'', ``production'', or 
``use'' of telecommunications test equipment controlled by 5B994, or 
``software'' controlled by 5D991.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5E992  ``Technology'' for the ``development'', ``production'', or 
``use'' of mobile communications equipment controlled by 5A992 or 
``software'' controlled by 5D992.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5E993  ``Technology'' for the ``development'', ``production'', or 
``use'' of radio relay communication equipment controlled by 5A993, or 
``software'' controlled by 5D993.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


5E994  ``Technology'' for the ``development'', ``production'' or 
``use'' of data (message) switching equipment controlled by 5A994, or 
``software'' controlled by 5D994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes for Telecommnications
    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Estonia, Latvia and Lithuania of equipment or systems 
controlled by 5A001.b, .c, .d, .e, and .f, and test equipment, 
``software'' and ``use'' technology therefor, provided that:
    a. The equipment or systems:
    1. Are designed for and will be used for specific civil 
applications; and
    2. Will be operated in the importing country by a civil end-user 
who has furnished to the supplier a Statement by Ultimate Consignee 
and Purchaser (Form BXA-711), or a statement on company letterhead 
described in Sec. 748.11(e) of the EAR certifying that the equipment 
or systems will used only for the specific end-use;
    b. The information to accompany each application will include:
    1. End-use assurances provided by the importer and backed by the 
importing country;
    2. Acceptance of on-site inspection of the equipment or system 
by the licensee or the designated representative of the licensee 
from a country other than that listed in Country Group D:1;
    3. A full description of the equipment or systems to be 
provided; and
    4. The end-use information clearly stated including the 
installation site and intended application.

    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of the following 
communications, measuring or test equipment:
    a. ``Telecommunications transmission equipment'' controlled by 
5A001.b.1, b.2, b.4 provided that:
    1. It is intended for general commercial traffic in a civil 
communication system;
    2. It is designed for operation at a ``digital transfer rate'' 
at the highest multiplex level of 140 Mbit/s or less and at a 
``total digital transfer rate'' of 168 Mbit/s or less;

    N.B.: An additional 2 Mbit/s for operation, maintenance and 
service communications may be added to the ``total digital transfer 
rate'' of 168 Mbit/s.

    3. For equipment controlled by 5A001.b.4, the transmission 
wavelength must not exceed 1,370 nm and optical fiber must be used 
as the communication medium;
    4. It is to be installed under the supervision of the seller in 
a permanent circuit; and
    5. It is to be operated by the civilian authorities of the 
importing country;
    b. Measuring or test equipment controlled by 5B001.a.3, 
5B001.b.1, 5B001.b.2, that is necessary for the ``use'' (i.e., 
installation, operation and maintenance) of equipment

[[Page 13000]]
exported under the conditions of this Advisory Note, provided that:
    1. It is designed for ``use'' with communication transmission 
equipment operating at a ``digital transfer rate'' of 140 Mbit/s or 
less, and at a ``total digital transfer rate'' of 168 Mbit/s or 
less; and
    2. It will be supplied in the minimum quantity required for the 
transmission equipment eligible for administrative exception 
treatment.

    N.B.1: Where possible, built-in test equipment (BITE) will be 
provided for installation or maintenance of transmission equipment 
eligible for administrative exception treatment under this Advisory 
Note rather than individual test equipment.

    N.B.2: The license application must include the locations of the 
connection points, types of equipment being connected and 
transmission rates.

    Advisory Note 3: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of ``network access 
controllers'' controlled by 5A001.b.3.c, when exported under the 
conditions of Advisory Note 2 to Category 4, with a ``digital 
transfer rate'' not exceeding 100 Mbits/s.

    Advisory Note 4: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of the following, 
provided that the associated multiplex equipment is designed for 
operation at a ``digital transfer rate'' at the highest multiplex 
level of 140 Mbit/s or less:
    a. Digital microwave radio relay equipment controlled by 
5A001.b.1 or 5B001.b.6, for fixed civil installations, operating at 
fixed frequencies not exceeding 23.6 GHz, with a ``total digital 
transfer rate'' not exceeding 168 Mbit/s;
    b. Ground communication radio equipment for use with temporarily 
fixed services operated by civil authorities and designed to be used 
at fixed frequencies not exceeding 23.6 GHz;
    c. Radio transmission media simulators/channel estimators 
controlled by 5B001.b.3, designed for testing equipment described in 
this Advisory Note 4.a or .b.

    Advisory Note 5: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of equipment controlled 
by 5A001.c.1 or ``software'' for ``common channel signalling'' 
controlled by 5D001.a or 5D001.c.3, provided that:
    a. The ``common channel signalling'' is restricted to quasi-
associated or associated mode of operation according to CCITT Red 
Book, Volume X, fascicle X.1;
    b. No functions, other than those described in the following 
recommendations in the Red Book of CCITT: Q.701 to Q.709, Q.721 to 
Q.725, Q.791 and Q.795, are included;

    N.B.: Only functions described in paragraph 2 of Q.795 are to be 
included. These Q.795 functions may not provide centralized network 
control having all of the following characteristics:
    a. Is based on a network management protocol; and
    b. Does both of the following:
    1. Receives data from the nodes; and
    2. Processes these data in order to:
    a. Control traffic; and
    b. Directionalize paths;
    c. No form of ``Integrated Services Digital Network'' (ISDN) is 
provided;
    d. Equipment or ``software'' is restricted to that necessary for 
the operation within a city or, for ``Private Automatic Branch 
Exchanges'', within a radius of 100 km;

    N.B.1: Where a recognized city contains more than one 
subordinate entity or city, the larger unified boundary prevails. In 
no case is the boundary larger than that of Beijing.

    N.B.2: A suburban entity that does not belong to a city, but is 
located within a circle with a diameter of 50 km and with a city in 
the middle, can be considered as part of a city.

    e. No means are provided that will allow ``common channel 
signalling'' via analog transmission links;
    f. All the applicable conditions enumerated in this Advisory 
Note 5.a to .e are accomplished by:
    1. Omission or physical removal of equipment or coding;
    2. Over-writing with non-functioning statements; or
    3. Reasonably non-reversible modifications.

    Advisory Note 6: Licenses are likely to be approved, as 
administrative exceptions, for export to satisfactory end-users in 
the People's Republic of China of equipment controlled by 5B001.a.2, 
as follows:
    a. Optical fiber or ``optical fiber preform'' characterization 
equipment using semiconductor ``laser'' with a wavelength not 
exceeding 1,370 nm;
    b. Equipment for the manufacture of silica-based ``optical fiber 
preforms'', optical fibers or cables.

    Advisory Note 7: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of test and inspection 
equipment and specially designed components and accessories therefor 
controlled by 5B001.a or 5B001.b and ``software'' and technology for 
such equipment, components and accessories, for the repair of 
telecommunications equipment, provided that:
    a. Such equipment, components, accessories, ``software'' and 
technology:
    1. Are specially designed for repair;
    2. Are to be used to repair controlled equipment authorized for 
export or equipment that is not controlled for national security 
reasons;
    3. Are shipped in reasonable quantities necessary for the types 
and quantities of exported equipment being serviced;
    4. Do not provide local production facilities;
    5. Do not provide for testing of individual electronic 
components; and
    6. Do not include ``software'' in ``source code'' controlled by 
5D001.c.1;
    b. The repair does not upgrade the equipment or ``software'';
    c. All the records of repair activity are kept by a 
representative of the supplier located in a country other than that 
listed in Country Group D:1; and
    d. The information to accompany each license application shall 
include:
    1. A complete list of equipment to be provided; and
    2. A clear identification of the users and their activities.

    N.B.: Nothing in this Advisory Note 7 shall be construed as 
overriding controls in other ECCNs contained in the Commerce Control 
List.

    Advisory Note 8: Licenses are likely to be approved, as 
administrative exceptions, for export to satisfactory end-users in 
the People's Republic of China of ``optical fiber preforms'' 
controlled by 5C001, specially designed for the manufacture of 
silica-based optical fibers, provided they are specially designed to 
produce non-militarized silica-based optical fibers that are 
optimized to operate at a wavelength not exceeding 1,370 nm.

    Advisory Note 9: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to the People's 
Republic of China of minimum quantities of semiconductor ``lasers'' 
designed and intended for use with a civil fiber optic communication 
system that would be either not controlled for national security 
reasons or eligible for administrative exceptions treatment under 
Advisory Note 2 (Notes for Telecommunications), having an output 
wavelength not exceeding 1,370 nm and a CW power output not 
exceeding 100 mW.

    Advisory Note 10: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Albania, Bulgaria, the People's Republic of China, 
Mongolia, Romania or Vietnam of telecommunication equipment for 
optical fibers controlled by 5A001.b.4.a, provided that the 
transmission wavelength does not exceed 1,370 nm.

    Advisory Note 11: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Albania, Bulgaria, the People's Republic of China, 
Mongolia, Romania or Vietnam of cables or fibers controlled by 
5A001.e, provided that:
    a. Quantities are normal for the envisaged end-use; and
    b. They are for a specified civil end-use.

    Advisory Note 12: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Albania, Bulgaria, the People's Republic of China, 
Mongolia, Romania or Vietnam of optical fiber test equipment 
controlled by 5B001.a.3 using a transmission wavelength not 
exceeding 1,370 nm.

    Advisory Note 13: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of digital radio equipment or systems 
controlled by 5A001.b.1 or 5A001.b.6, provided that:
    a. The equipment or system is intended for general commercial 
international traffic in an international civil telecommunication 
system, one end of which is in a country listed in Country Group 
A:1;

[[Page 13001]]

    b. It is to be installed in a permanent circuit under the 
supervision of the licensee;
    c. No means are to be provided for the transmission of traffic 
between points in a single country listed in Country Group D:1 other 
than Romania;
    d. The ``digital transfer rate'' at the highest multiplex level 
does not exceed 156 Mbit/s;
    e. The equipment does not employ either of the following:
    1. Quadrature Amplitude Modulation (QAM) techniques above level 
64; or
    2. Other digital modulation techniques with a ``spectral 
efficiency'' exceeding 6 bit/s/Hz;
    f. The equipment is not controlled by 5A001.b.4 or b.7 or by the 
``Information Security'' entries in Category 5;
    g. Spare parts shall remain under the control of the licensee or 
the licensee's designated representative;

    Note: The supervision of the spare parts by the licensee may be 
effected by stock inventory procedures and does not require the 
permanent on-site presence of a representative of the licensee.

    h. The licensee or the licensee's designated representative who 
shall be from a country other than that listed in Country Group D:1, 
shall have the right of access to all the equipment;
    i. There will be no transfer of technology controlled for 
national security reasons;
    j. Supervision of systems installation, operation and 
maintenance shall be performed by the licensee or the licensee's 
designated representative, who shall be from a country other than 
that listed in Country Group D:1, using only personnel from 
countries other than those listed in Country Group D:1;

    N.B.1: Supervision of maintenance includes preventive 
maintenance at periodic intervals and intervention for major 
functions.

    N.B.2: This does not mean that only nationals from the exporting 
country should install the system.

    k. Upon request, the licensee shall carry out an inspection to 
establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this 
Advisory Note is being used for the stated purpose and is still 
located at the installation sites. The licensee shall report the 
findings from the inspection to the BXA within one month after 
completing the inspection.

    Advisory Note 14: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Groups D:1 of fiber optic telecommunication 
transmission system or equipment controlled by 5A001.b.1 and 
5A001.b.4.a, fiber optic cables controlled by 5A001.e, or coaxial 
cable telecommunications transmission systems controlled by 
5A001.b.1, and the test equipment, specially designed components, 
accessories, ``software'' and technology, necessary for the ``use'' 
thereof, provided that:
    a. They are intended for international telecommunications links 
dedicated to international civil traffic between the following 
locations:
    1.a. From the following countries: Austria, Belgium, the Czech 
Republic, Denmark, Estonia, Finland, France, Germany, Greece, 
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, 
Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, 
Switzerland, Turkey, or the United Kingdom;
    b. To the following cities as listed by country: Albania 
(Tirana), Armenia (Yerevan), Azerbaijan (Baku), Bulgaria (Sophia, 
Varna), Belarus (Minsk), Georgia (Tbilissi), Kazakhstan (Alma-Ata), 
Kyrgyzstan (Bishkek), Moldova (Chisinau), Romania (Bucharest, 
Constanza), Russia (Moscow, Novorossiisk, Rostov-on-Don, St. 
Petersburg, Volgograd), Tajikistan (Dushanbe), Turkmenistan 
(Ashgabat), Ukraine (Kiev, Odessa, Sebastopol), Uzbekistan 
(Tashkent) or:
    2.a. From the following countries: Australia, Canada, Hong Kong, 
Japan, New Zealand, South Korea, or the United States;
    b. To the following cities as listed by country: People's 
Republic of China (Shanghai, Guangzhou), Russia (Khabarovsk, 
Nakhodka, Vladivostok, Yuzhno-Sadhalinsk), Vietnam (Hanoi, Ho Chi 
Minh City);

    N.B.: No traffic shall be carried between points in countries 
listed in Country Group D:1, except in Estonia, Latvia, and 
Lithuania.

    b. [Reserved]
    c. They are designed to operate at a ``digital transfer rate'' 
at the highest multiplex level of 623 Mbit/s or less;
    d. The ``laser'' transmission wavelength does not exceed 1,590 
nm;
    e. The equipment, if employing synchronous transmission 
techniques, must conform to one of the approved SONET or SDH 
standards or recommendations (i.e. ANSI or CCITT);
    f. Supervision of systems installation and maintenance of 
controlled transmission equipment must be performed by the licensee 
or the licensee's designated representative, who must be from a 
country other than that listed in Country Group D:1. Any portion of 
the installation of controlled transmission equipment which would 
require the transfer of controlled technology must be performed by 
the licensee or the licensee's designated representative using only 
personnel from countries other than those listed in Country Group 
D:1;

    N.B.1: Supervision of maintenance includes preventive 
maintenance at periodic intervals and intervention for major 
malfunctions.

    N.B.2: This is not meant to require that only nationals from the 
exporting country should install the system.

    g. Controlled test equipment and controlled spare parts must 
remain under the supervision of the licensee or the licensee's 
designated representative, who shall be from a country other than 
that listed in Country Group D:1;

    N.B.: The supervision of the test equipment and spare parts by 
the licensee may be effected by stock inventory procedures and does 
not require the permanent on-site presence of a representative of 
the licensee.

    h. The licensee or the licensee's designated representative who 
shall be from a country other than that listed in Country Group D:1, 
must have the right of access to all the equipment;
    i. Upon request of the government of the exporting country, the 
licensee must carry out an inspection to establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this 
Advisory Note is being used for the stated end purpose and is still 
located at the installation sites. The licensee shall report the 
findings from the inspection to the BXA (at P.O. Box 273, Washington 
D.C. 20044) within one month after completing the inspection.
    j. The license application must include a system plan containing 
equipment quantities and approximate locations for the proposed 
system. After final installation, unless already provided, the 
applicant must provide to its licensing authorities the final 
location of the installed equipment to the greatest degree of 
precision available and a map of the final cable route.

    Advisory Note 15: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of fiber optic telecommunication 
transmission systems or equipment controlled by 5A001.b.1 and 
5A001.b.4.a, digital radio equipment or systems controlled by 
5A001.b.1 and 5A001.b.6.a, coaxial cable telecommunications 
transmission equipment or systems controlled by 5A001.b.1, or fiber 
optic cables controlled by 5A001.e and the test equipment, specially 
designed components, accessories, ``software'' and technology, 
necessary for the ``use thereof, provided that:
    a. They are intended for:
    1. Intra-city or inter-city links within Albania, Armenia, 
Azerbaijan, Bulgaria, Belarus, Georgia, Kazakhstan, Kyrgyzstan, 
Moldova, Mongolia, Romania, Russia, Tajikistan, Turkmenistan, 
Ukraine, Uzbekistan, or Vietnam.

    N.B.: Intra-city links provide service within a local service 
area which must not extend beyond a circle with a diameter of 50 km 
and with the city in the middle.

    2. Inter-city links between cities in Albania, Armenia, 
Azerbaijan, Bulgaria, Belarus, Georgia, Kazakhstan, Kyrgyzstan, 
Moldova, Mongolia, Romania, Russia, Tajikistan, Turkmenistan, 
Ukraine, or Uzbekistan;
    b. They are designed to operate at a ``digital transfer rate'' 
at the highest multiplex level of 156 Mbit/s or less;
    c. The ``laser'' transmission wavelength does not exceed 1,590 
nm;
    d. The radio transmission system does not employ Quadrature 
Amplitude Modulation (QAM) techniques above level 16;
    e. The equipment or systems are designed and intended to be used 
for fixed civil applications directly connected to the civilian 
network;
    f. The equipment, if employing synchronous transmission 
techniques, must conform to one of the approved SONET or

[[Page 13002]]
SDH standards or recommendations (i.e., ANSI or CCITT);
    g. Supervision of systems installation and of maintenance of 
controlled transmission equipment must be performed by the licensee 
or the licensee's designated representative, who must be from a 
country other than that listed in Country Group D:1. Any portion of 
the installation of controlled transmission equipment which would 
require the transfer of controlled technology must be performed by 
the licensee or the licensee's designated representative using only 
personnel from countries other than those listed in Country Group 
D:1;

    N.B.1: Supervision of maintenance includes preventive 
maintenance at period intervals and intervention for major 
malfunctions.

    N.B.2: This is not meant to require that only nationals from the 
exporting country should install the system.

    h. Controlled test equipment and controlled spare parts must 
remain under the supervision of the Country Group A:1 member country 
licensee;

    N.B.: The supervision of the test equipment and spare parts by 
the licensee may be effected by stock inventory procedures and does 
not require the permanent on-site presence of a representative of 
the licensee.

    i. The Country Group A:1 country licensee or his designated 
representative, who must be from a country other than that listed in 
Country Group D:1, must have the right of access to all the 
equipment;
    j. Upon request of the government of the exporting country, the 
licensee must carry out an inspection to establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this 
Advisory Note is being used for the stated end purpose and is still 
located at the installation sites. The licensee shall report the 
findings from the inspection to the Bureau of Export Administration 
within one month after completing the inspection.
    k. The license application must include a system plan containing 
equipment quantities and approximate locations for the proposed 
system. After final installation, unless already provided, the 
applicant must provide to its licensing authorities the final 
location of the installed equipment to the greatest degree of 
precision available and a map of the final cable route.

    Advisory Note 16: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of systems or equipment controlled by 
5A001.c.1 or 5A001.c.2, or ``software'' for ``common channel 
signalling'' controlled by 5D001.a or 5D001.c.3, and test equipment, 
specially designed components, accessories and technology necessary 
for the ``use'' thereof, provided that:
    a. They are intended for fiber optic, radio, or coaxial cable 
international telecommunication links fulfilling the provisions of 
Advisory Note l4.a and b.;
    b. The ``common channel signalling'' (CCS) is restricted to 
associated mode of operation. Signalling channels and all related 
traffic channels must be carried on the same transmission system. 
Only international traffic between the locations listed in Advisory 
Note l4.a is permitted (i.e. calls originating in a country listed 
in Country Group D:1 will not be rerouted to any country listed in 
Country Group D:1;
    c. No general service of ``Integrated Service Digital Network'' 
(ISDN) is provided by the country listed in Country Group D:1 
gateway switch, except:
    1. The ISDN user part (ISP) may be used on the international 
signalling link;
    2. ISDN service may be provided for specified subscribers on the 
Country Group D:1 countries gateway switch;
    d. Supervision of systems installation and of maintenance of 
controlled equipment and ``software'' must be performed by the 
licensee or the licensee's designated representative, who must be 
from a country other than that listed in Country Group D:1. Any 
portion of the installation of controlled equipment and ``software'' 
that would require the transfer of controlled technology must be 
performed by the licensee or the licensee's designated 
representative using only personnel from countries other than those 
listed in Country Group D:1;

    N.B.1: Supervision of maintenance includes preventive 
maintenance at periodic intervals and intervention for major 
malfunctions.

    N.B.2: This is not meant to require that only nationals from the 
exporting country should install the system.

    e. Controlled test equipment and controlled spare parts must 
remain under the supervision of the Country Group A:1 country 
licensee;

    N.B: The supervision of the test equipment and spare parts by 
the licensee may be effected by stock inventory procedures and does 
not require the permanent on-site presence of a representative of 
the licensee.

    f. All ``common channel signalling'' equipment including spares, 
is operational in such a form that any removal from or manipulation 
on the end in a country listed in Country Group D:1 is immediately 
recognized (e.g. through remote maintenance and monitoring 
procedures) by the operator (i.e., an operator from one of the 
countries listed in Advisory Note l4.a.1.a or a.2.a);
    g. The licensee or operator (i.e., an operator from one of the 
countries listed in Advisory Note l4.a.1.a or a.2.a) takes immediate 
action to ensure that non-operational equipment is repaired or 
replaced within a week of the failure;
    h. The Country Group A:1 country licensee or the designated 
representative of the licensee, who must be from a country other 
than that listed in Country Group D:1, must have the right of access 
to all the equipment;
    i. Nationals from countries listed in Country Group D:1 are not 
given tools or training allowing them to modify the approved 
configuration or divert equipment or ``software'' to non-approved 
uses;
    j. Upon request of the government of the exporting country, the 
licensee or operator (i.e., an operator from one of the countries 
listed in Advisory Note l4.a.1.a or a.2.a) must carry out an 
inspection to establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this 
Advisory Note is being used for the stated end purpose and is still 
located at the installation sites. The licensee shall report the 
findings from the inspection to the BXA (at P.O. Box 273, 
Washington, D.C. 20044) within one month after completing the 
inspection.
    k. The operator (i.e., an operator from one of the countries 
listed in Advisory Note l4.a.1.a or a.2.a) informs the exporting 
government immediately of any sign of misuse or diversion of 
``common channel signalling'' hardware or ``software'' on the other 
end of the international link, or of any failure of the operator at 
the other end (i.e, the operator from one of the countries) listed 
in Advisory Note l4.a.l.b or a.2.b) to allow the operator to comply 
with the terms of the license;
    l. Contractual agreements between the licensee and the operators 
on both ends of the link require that the operator at the other end 
of the international link (i.e., the operator from one of the 
countries listed in Advisory Note l4.a.1.b or a.2.b) complies fully 
with all the conditions stipulated in the license and that, in the 
event of failure by the latter to comply, the operator who is from 
one of the countries listed in Advisory Note l4.a.l.a or a.2.a will 
inform the authorities of such country and the government of the 
exporting country.

    Advisory Note 17: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of equipment controlled by 5A001.c.4, 
5A001.c.5 or 5A001.c.6, ``software'' controlled by 5D001.c.3 that 
provides features described in 5A001.c.4, 5A001.c.5, or 5A001.c.6, 
specially designed components and accessories therefor, and test 
equipment, ``software'' and technology necessary for the ``use'' 
thereof, provided that:
    a. The equipment or ``software'' will be used for a specified 
civil end-use by a civil end-user only;
    b. The equipment or ``software'' does not perform circuit 
switching or circuit switching functions;
    c. Supervision of systems installation and of maintenance of 
controlled equipment or ``software'' must be performed by the 
licensee or the licensee's designated representative, who must be 
from a country other than that listed in Country Group D:1. Any 
portion of the installation of controlled equipment or ``software'' 
that would require the transfer of controlled technology must be 
performed by the licensee or the licensee's designated 
representative using only personnel from countries other than those 
listed in Country Group D:1.

    N.B.1: Supervision of maintenance includes preventative 
maintenance at periodic intervals and intervention for major 
malfunctions.

    N.B.2: This is not meant to require that only exporting country 
should install the system.

    N.B.3: This does not apply if the equipment or ``software'' is 
designed for

[[Page 13003]]
installation by the user without further substantial support by the 
supplier.

    d. The Country Group A:1 country licensee or the designated 
representative of the licensee, who must be from a country other 
than that listed in Country Group D:1, must have the right of access 
to all the equipment and may carry out inspections;
    e. Upon request of the government of the exporting country, the 
licensee must carry out an inspection to establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this 
Advisory Note is being used for the stated end purpose and is still 
located at the installation site. The licensee shall report the 
findings from the inspection to the BXA (at P.O. Box 273, 
Washington, D.C. 20044) within one month after completing the 
inspection.

    Advisory Note 18: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of ``software'' controlled by 
5D001.c.1, and related technology, ``software'' tools and test 
equipment necessary for the ``development'', ``production'' or 
``use'' thereof, provided that:
    a. The ``software'', technology, ``software'' tools and test 
equipment will be limited to those necessary for problem analysis 
and reporting or for local adaptation of the switching equipment 
such as for subscriber terminal interface, network interface, 
billing, administration or similar adaptations for local civilian 
telecommunications requirements, by a civil end-user;
    b. No ``software'' or technology ``required'' for the 
``development'', ``production'' or ``use'' of functions, features or 
equipment controlled by the telecommunications entries in 5A, 5B or 
5E of Subcategory I to Category 5 shall be included;

    Note: This Advisory Note does not release from control the 
``software'' in ``source code'' comprising that ``software'' that 
controls the management and execution of programs, commonly referred 
to as the operating system.

    c. Such ``software'', technology, ``software'' tools or test 
equipment do not provide the capability to decompile, disassemble or 
perform similar activities to ``software'' in ``object code'' or 
similar format and thereby reverse-engineer controlled 
characteristics, functions or features;
    d. The licensee or the licensee's designated representative, who 
shall be from a country other than that listed in Country Group D:1, 
shall have the right of access to the site of, and computing 
equipment being used to perform, such adaptations so as to have 
access to:
    1. The ``software'', technology, ``software'' tools and test 
equipment referred to in this Advisory Note; and
    2. All ``software'' developed or derived from the ``software'' 
technology, ``software'' tools and test equipment licensed under 
this Advisory Note;
    e. Upon request of the BXA, the licensee must carry out an 
inspection to establish that:
    1. The ``software'', technology, ``software'' tools and test 
equipment referred to in this Advisory Note are being used for the 
intended civil purpose; and
    2. All the ``software'', technology, ``software'' tools and test 
equipment exported under the provisions of this Advisory Note are 
being used for the stated end purpose and are still located at the 
installation sites. The licensee shall report the findings from the 
inspection to the Bureau of Export Administration within one month 
after completing the inspection.

    Advisory Note 19: Licenses are likely to be approved, as 
Administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of components, parts and materials, 
controlled for national security reasons by entries on the Commerce 
Control List, necessary for the ``production'' of telecommunication 
equipment or systems, provided that:
    a. The ``production'' equipment and technology for the equipment 
concerned has been previously legally exported;
    b. The quantity of components, parts and materials exported is 
normal for the stated end-use;
    c. Authorization under this Advisory Note will cover a program 
of supplies up to two calendar years for the ``production'' by the 
same licensee of equipment authorized under this Advisory Note 19.a;
    d. No technology or ``software'' ``required'' for 
``development'', ``production'' or ``use'' shall be included;
    e. The components, parts and materials exported will not be 
permitted to exceed the performance threshold or features of the 
equipment previously authorized;
    f. The contract includes explicit conditions to ensure that:
    1. The equipment manufactured with the exported components, 
parts and materials is not exported or reexported, either directly 
or indirectly, to another country listed in Country Group D:1;
    2. The supplier or licensor may appoint a representative who is 
entitled to verify that the ``production'' technology and 
``production'' equipment or systems serve their intended use;
    3. Any modification of the capabilities or functions of the 
equipment produced must be approved by the supplier or licensor;
    4. The supplier's or licensor's personnel have right of access 
to all the facilities directly involved in the production of the 
equipment or systems;
    5. The equipment or systems produced will be for civil end-use 
only.

    Advisory Note 20: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to Albania, 
Armenia, Azerbaijan, Bulgaria, Belarus, Estonia, Georgia, 
Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, the 
People's Republic of China, Romania, Russia, Tajikistan, 
Turkmenistan, kraine, zbekistan, and Vietnam of telecommunications 
equipment or systems controlled by 5A001.b.1, 5A001.b.7, 5A001.c, 
5A001.d or 5A001.e, measuring, test or repair equipment controlled 
by 5B001.a.3 or 5B001.b, and specially designed components and 
accessories, ``software'' and technology necessary for the ``use'' 
thereof, provided that:
    a. Optical fiber telecommunication transmission equipment or 
systems:
    1. Are designed to operate at a ``digital transfer rate'' of 623 
Mbit/s or less at the highest multiplex level; and
    2. Are designed to operate on a ``laser'' transmission 
wavelength not exceeding 1,590 nm.
    b. Digital radio equipment or systems:
    1. Are designed to operate at a ``digital transfer rate'' of 623 
Mbit/s or less at the highest multiplex level;
    2. Do not employ QAM techniques exceeding level 512 or other 
digital modulation techniques having a ``spectral efficiency'' 
exceeding 9 bit/s/Hz;
    c. ``CCS'':
    1. Is limited to the associated mode of operation;
    2. Signalling and related speech/data channels are limited to 
two signalling points and must not be routed via different 
transmission media or different routes;

    N.B.: A single route consists of one or more consecutive serial 
connection links that may use different transmission media.

    3. Message Transfer Part (MTP) level 3 signalling routes are 
limited to two signalling points;

    N.B.: MTP Level 3 is found in Q.704 and related recommendations 
of the IT-T Q series for ``CCS''.

    4. For point-to-point inter-city ``CCS'' connectivity between 
two signalling points, where permitted by this Advisory Note 20.c.1, 
c.2, or c.3, the Originating Point Codes (OPC) and Destination Point 
Codes (DPC) for all signalling messages over such signalling links 
cannot be reinstalled or changed following the vendor's initial 
software installation without prior authorization, being available 
in object code only; all compilation mechanisms and administrative 
tools that allow for modification of the Point Codes are removed 
following installation;
    d. The equipment or systems are designed and intended to be used 
for fixed civil applications directly connected to a civilian 
network;
    e. The equipment or systems, if employing synchronous 
transmission techniques, conform to one of the ANSI or IT-T approved 
standards or recommendations for ``SONET'' or ``SDH'';
    f. Measuring, test or repair equipment controlled by 5B001.a.3 
or 5B001.b and controlled spare parts remain under the supervision 
of the licensee or the licensee's designated representative;
    g. The licensee or the licensee's designated representative have 
the right of access to all the equipment or systems and may carry 
out inspections;
    h. Upon the request of the BXA, the licensee must carry out 
inspections to establish that:
    1. All the equipment or systems exported under the provisions of 
this Advisory Note are being used for the intended civil purpose; 
and
    2. Are still located at the installation sites. The licensee 
shall report the findings from the inspection to the BXA (at P.O. 
Box 273, Washington DC 20044) within one month after completing the 
inspection;

[[Page 13004]]

    i. Supervision of systems installation and maintenance of 
controlled transmission equipment is performed by the licensee or 
the licensee's designated representative. Any portion of the 
installation of controlled transmission equipment that would require 
the transfer of controlled technology is performed by the licensee 
or the licensee's designated representative;

    N.B.1: Supervision of maintenance includes prevention 
maintenance at periodic intervals and intervention for major 
malfunctions.

    j. License applications to export systems or equipment for 
``common channel signalling'' identify the intended system routes 
and locations of signalling points.

II. Information Security

    Note: The control status of ``information security'' equipment, 
``software'', systems, application specific ``electronic 
assemblies'', modules, integrated circuits, components, or functions 
is defined in the ``information security'' entries in this Category 
even if they are components or ``electronic assemblies'' of other 
equipment.

    Note: ``Information security'' equipment, ``software'', systems, 
application specific ``assemblies'', modules, integrated circuits, 
components, technology or functions that are excepted from control, 
not controlled, or eligible for licensing under an Advisory Note are 
under the licensing jurisdiction of the Department of Commerce. In 
addition, anti-virus software controlled under 5D002.c is also under 
the licensing jurisdiction of the Department of Commerce. For all 
other items, exporters requesting a license from the Bureau of 
Export Administration must provide a statement from the Department 
of State, Office of Defense Trade Controls, verifying that the 
equipment intended for export is under the licensing jurisdiction of 
the Department of Commerce.

A. Equipment, Assemblies and Components


5A002  Systems, equipment, application specific ``electronic 
assemblies'', modules or integrated circuits for ``information 
security'', and specially designed components therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: N/A
    GBS: Yes as described in Advisory Note 1 to Category 5--
Information Security
    CIV: Yes as described in Advisory Note 1 to Category 5--
Information Security

List of Items Controlled

    Unit: $value
    a. Designed or modified to use ``cryptography'' employing 
digital techniques to ensure ``information security'';
    b. Designed or modified to perform cryptanalytic functions;
    c. Designed or modified to use ``cryptography'' employing analog 
techniques to ensure ``information security'', except:
    c.1. Equipment using ``fixed'' band scrambling not exceeding 8 
bands and in which the transpositions change not more frequently 
than once every second;
    c.2. Equipment using ``fixed'' band scrambling exceeding 8 bands 
and in which the transpositions change not more frequently than once 
every ten seconds;
    c.3. Equipment using ``fixed'' frequency inversion and in which 
the transpositions change not more frequently than once every 
second;
    c.4. Facsimile equipment;
    c.5. Restricted audience broadcast equipment;
    c.6. Civil television equipment;
    d. Designed or modified to suppress the compromising emanations 
of information-bearing signals;

    Note: 5A002.d does not control equipment specially designed to 
suppress emanations for health or safety reasons.

    e. Designed or modified to use cryptographic techniques to 
generate the spreading code for ``spread spectrum'' or hopping code 
for ``frequency agility'' systems;

    f. Designed or modified to provide certified or certifiable 
``multilevel security'' or user isolation at a level exceeding Class 
B2 of the Trusted Computer System Evaluation Criteria (TCSEC) or 
equivalent;
    g. Communications cable systems designed or modified using 
mechanical, electrical or electronic means to detect surreptitious 
intrusion.

    Note: 5A002 does not control:

    a. ``Personalized smart cards'' using ``cryptography'' 
restricted for use only in equipment or systems, as follows:
    1. Excluded from control under 5A002.c.1 to c.6;
    2. Excluded from control under paragraphs b., c., or e. of this 
Note;
    3.a. Access control equipment, such as automatic teller 
machines, self-service statement printers or point of sale 
terminals, that protects password or personal identification numbers 
(PIN) or similar data to prevent unauthorized access to facilities 
but does not allow for encryption of files or text, except as 
directly related to the password or PIN protection;
    b. Data authentication equipment that calculates a Message 
Authentication Code (MAC) or similar result to ensure no alteration 
of text has taken place, or to authenticate users, but does not 
allow for encryption of data, text or other media other than that 
needed for the authentication;
    c. Cryptographic equipment specially designed, developed or 
modified for use in machines for banking or money transactions, such 
as automatic teller machines, self-service statement printers, point 
of sale terminals, or equipment for the encryption of interbanking 
transactions, and intended for use only in such applications;
    d. Portable (personal) or mobile radiotelephones for civil use 
(e.g., for use with commercial civil cellular radiocommunications 
systems, containing encryption;
    b. Equipment containing ``fixed'' data compression or coding 
techniques;
    c. Receiving equipment for radio broadcast, pay television or 
similar restricted audience television of the consumer type, without 
digital encryption and where digital decryption is limited to the 
video, audio or management functions;
    d. Portable (personal) or mobile radiotelephones for civil use 
(e.g., for use with commercial civil cellular radiocommunications 
systems, containing encryption, when accompanying their users;
    e. Decryption functions specially designed to allow the 
execution of copy-protected ``software'', provided the decryption 
functions are not user-accessible.


5A995:  ``Information security'' equipment, n.e.s.; (e.g., 
cryptographic, cryptoanalytic, and cryptologic equipment, n.e.s.), and 
components therefor.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value

    The list of items controlled is contained in the ECCN heading.

B. Test, Inspection and Production Equipment


5B002:  Information Security--test, inspection and ``production'' 
equipment.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value

    a. Equipment specially designed for:
    a.1. The ``development'' of equipment or functions controlled by 
5A002, 5B002, 5D002 or 5E002, including measuring or test equipment;
    a.2. The ``production'' of equipment or functions controlled by 
5A002, 5B002, 5D002, or 5E002, including measuring, test, repair or 
production equipment;
    b. Measuring equipment specially designed to evaluate and 
validate the ``information security'' functions controlled by 5A002 
or 5D002.

[[Page 13005]]


C. Materials

[Reserved]

D. Software


5D002:  Information Security--``Software''.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: Yes as described in Advisory Note 2 to Category 5--
Information Security
    TSR: Yes for 5D002.a and .c as described in Advisory Note 2 to 
Category 5--Information Security

List of Items Controlled

    Unit: $ value

    a. ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment or 
``software'' controlled by 5A002, 5B002 or 5D002.
    b. ``Software'' specially designed or modified to support 
``technology'' controlled by 5E002.
    c. Specific ``software'' as follows:
    c.1. ``Software'' having the characteristics, or performing or 
simulating the functions of the equipment controlled by 5A002 or 
5B002;
    c.2. ``Software'' to certify ``software'' controlled by 
5D002.c.1;
    c.3. ``Software'' designed or modified to protect against 
malicious computer damage, e.g., viruses;

    Note: 5D002 does not control:

    a. ``Software'' ``required'' for the ``use'' of equipment 
excluded from control under the Note to 5A002;
    b. ``Software'' providing any of the functions of equipment 
excluded from control under the Note to 5A002.


5D995:  ``Software'', n.e.s., specially designed or modified for the 
``development'', ``production'', or use of information security or 
cryptologic equipment (e.g., equipment controlled by 5A995).

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value

    The list of items controlled is contained in the ECCN heading.

E. Technology


5E002:  ``Technology'' according to the General Technology Note for the 
``development'', ``production'' or use of equipment controlled by 5A002 
or 5B002 or ``software'' controlled by 5D11, 5D12, or entry 5D002.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A

    The list of items controlled is contained in the ECCN heading.


5E995:  ``Technology'', n.e.s., for the ``development'', 
``production'', or ``use'' of ``information security'' or cryptologic 
equipment (e.g., equipment controlled by 5A995), or software controlled 
by 5D995.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A

    The list of items controlled is contained in the ECCN heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes For ``Information Security''
    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of the following cryptographic 
equipment, provided that the equipment is intended for civil use:

    a. Access control equipment, such as automatic teller machines, 
self-service statement printers or point of sale terminals, that 
protects password or personal identification numbers (PIN) or 
similar data to prevent unauthorized access to facilities, but does 
not allow for encryption of files or text, except as directly 
related to the password of PIN protection;
    b. Data authentication equipment that calculates a Message 
Authentication Code (MAC) or similar result to ensure no alteration 
of text has taken place, or to authenticate users, but does not 
allow for encryption of data, text or other media other than that 
needed for the authentication;
    c. Cryptographic equipment specially designed, developed or 
modified for use in machines for banking or money transactions, such 
as automatic teller machines, self-service statement printers, point 
of sale terminals or equipment for the encryption of interbanking 
transactions, and intended for use only in such applications.

    Advisory Note 2: (Eligible for TSR). Licenses are likely to be 
approved, as administrative exceptions, for exports and reexports to 
satisfactory end-users in Country Group D:1 of the following 
cryptographic ``software'':

    a. ``Software'' required for the ``use'' of equipment eligible 
for administrative exceptions treatment under Advisory Note 1 (Notes 
for ``Information Security'').
    b. ``Software'' providing any of the functions of equipment 
eligible for administrative exceptions treatment under Advisory Note 
1 (Notes for ``Information Security'').

Category 6--Sensors

A. Equipment, Assemblies and Components


6A001  Acoustics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes for 6A001.a.1.b.4 and 6A001.b
    CIV: Yes for 6A001.a.1.b.4 and 6A001.b

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Marine acoustic systems, equipment and specially designed 
components therefor, as follows:
    a.1. Active (transmitting or transmitting-and-receiving) 
systems, equipment or specially designed components therefor, as 
follows:

    Note: 6A001.a.1 does not control:

    a.1.a Depth sounders operating vertically below the apparatus, 
not including a scanning function exceeding 10 deg., and 
limited to measuring the depth of water, the distance of submerged 
or buried objects or fish finding.
    a.1.b. Acoustic beacons, as follows:
    a.1.b.1. Acoustic emergency beacons; or
    a.1.b.2. Pingers specially designed for relocating or returning 
to an underwater position.
    a.1.a. Wide-swath bathymetric survey systems for sea bed 
topographic mapping:
    a.1.a.1. Designed:
    a.1.a.1.a. To take measurements at an angle exceeding 10 deg. 
from the vertical; and
    a.1.a.1.b. To measure depths exceeding 600 m below the water 
surface; and

[[Page 13006]]

    a.1.a.2. Designed:
    a.1.a.2.a. To incorporate multiple beams any of which is less 
than 2 deg.; or
    a.1.a.2.b. To provide data accuracies of better than 0.5% of 
water depth across the swath averaged over the individual 
measurements within the swath;
    a.1.b. Object detection or location systems having any of the 
following:
    a.1.b.1. A transmitting frequency below 10 kHz;
    a.1.b.2. Sound pressure level exceeding 224 dB (reference 1 
micropascal at 1 m) for equipment with an operating frequency in the 
band from 10 kHz to 24 kHz inclusive;
    a.1.b.3. Sound pressure level exceeding 235 dB (reference 1 
micropascal at 1 m) for equipment with an operating frequency in the 
band between 24 kHz and 30 kHz;
    a.1.b.4. Forming beams of less than 1 deg. on any axis and 
having an operating frequency of less than 100 kHz;
    a.1.b.5. Designed to withstand pressure during normal operation 
at depths exceeding 1,000 m and having transducers:
    a.1.b.5.a. Dynamically compensated for pressure; or
    a.1.b.5.b. Incorporating other than lead zirconate titanate as 
the transduction element; or
    a.1.b.6. Designed to operate with an unambiguous display range 
exceeding 5,120 m;
    a.1.c. Acoustic projectors, including transducers, incorporating 
piezoelectric, magnetostrictive, electrostrictive, electrodynamic or 
hydraulic elements operating individually or in a designed 
combination, having any of the following characteristics:

    Note 1: The control status of acoustic projectors, including 
transducers, specially designed for other equipment is determined by 
the control status of the other equipment.

    Note 2: 6A001.a.1.c does not control electronic sources that 
direct the sound vertically only, or mechanical (e.g., air gun or 
vapor-shock gun) or chemical (e.g., explosive) sources.

    a.1.c.1. An instantaneous radiated acoustic power density 
exceeding 0.01 mW/mm \2\/Hz for devices operating at frequencies 
below 10 kHz;
    a.1.c.2. A continuously radiated acoustic power density 
exceeding 0.001 mW/mm \2\/Hz for devices operating at frequencies 
below 10 kHz;
    a.1.c.3. Designed to withstand pressure during normal operation 
at depths exceeding 1,000 m; or
    a.1.c.4. Side-lobe suppression exceeding 22 dB.

    Technical Note: Acoustic power density is obtained by dividing 
the output acoustic power by the product of the area of the 
radiating surface and the frequency of operation.

    a.1.d. Acoustic systems, equipment and specially designed 
components for determining the position of surface vessels or 
underwater vehicles designed:
    a.1.d.1. To operate at a range exceeding 1,000 m with a 
positioning accuracy of less than 10 m rms (root mean square) when 
measured at a range of 1,000 m; or
    a.1.d.2. To withstand pressure at depths exceeding 1,000 m;

    Note: 6A001.a.1.d.1 includes equipment using coherent ``signal 
processing'' between two or more beacons and the hydrophone unit 
carried by the surface vessel or underwater vehicle, or capable of 
automatically correcting speed-of-sound propagation errors for 
calculation of a point.

    a.2. Passive (receiving, whether or not related in normal 
application to separate active equipment) systems, equipment or 
specially designed components therefor, as follows:
    a.2.a. Hydrophones (transducers) with any of the following 
characteristics:
    a.2.a.1. Incorporating continuous flexible sensors or assemblies 
of discrete sensor elements with either a diameter or length less 
than 20 mm and with a separation between elements of less than 20 
mm;
    a.2.a.2. Having any of the following sensing elements:
    a.2.a.2.a. Optical fibers;
    a.2.a.2.b. Piezoelectric polymers; or
    a.2.a.2.c. Flexible piezoelectric ceramic materials;
    a.2.a.3. Hydrophone sensitivity better than--180 dB at any depth 
with no acceleration compensation;
    a.2.a.4. When designed to operate at depths not exceeding 35 m, 
hydrophone sensitivity better than--186 dB with acceleration 
compensation;
    a.2.a.5. When designed for normal operation at depths exceeding 
35 m hydrophone sensitivity better than--192 dB with acceleration 
compensation;
    a.2.a.6. When designed for normal operation at depths exceeding 
100 m hydrophone sensitivity better than--204 dB; or
    a.2.a.7. Designed for operation at depths exceeding 1,000 m;

    Technical Note: Hydrophone sensitivity is defined as twenty 
times the logarithm to the base 10 of the ratio of rms output 
voltage to a 1 V rms reference, when the hydrophone sensor, without 
a pre-amplifier, is placed in a plane wave acoustic field with an 
rms pressure of 1 micropascal. For example, a hydrophone of -160 dB 
(reference 1 V per micropascal) would yield an output voltage of 
10-8 V in such a field, while one of -180 dB sensitivity would 
yield only 10-9 V output. Thus, -160 dB is better than -180 dB.

    a.2.b. Towed acoustic hydrophone arrays with any of the 
following:
    a.2.b.1. Hydrophone group spacing of less than 12.5 m;
    a.2.b.2. Hydrophone group spacing of 12.5 m to less than 25 m 
and designed or able to be modified to operate at depths exceeding 
35 m; or

    Technical Note: ``Able to be modified'' in 6A001.a.2.b.2 means 
having provisions to allow a change of the wiring or 
interconnections to alter hydrophone group spacing or operating 
depth limits. These provisions are: spare wiring exceeding 10% of 
the number of wires, hydrophone group spacing adjustment blocks or 
internal depth limiting devices that are adjustable or that control 
more than one hydrophone group.

    a.2.b.3. Hydrophone group spacing of 25 m or more and designed 
to operate at depths exceeding 100 m;
    a.2.b.4. Heading sensors controlled by 6A001a.2.d;
    a.2.b.5. Non-metallic strength members or longitudinally 
reinforced array hoses;
    a.2.b.6. An assembled array of less than 40 mm in diameter;
    a.2.b.7. Multiplexed hydrophone group signals; or
    a.2.b.8. Hydrophone characteristics specified in 6A001.a.2.a;
    a.2.c. Processing equipment specially designed for towed 
acoustic hydrophone arrays with either of the following:
    a.2.c.1. A Fast Fourier or other transform of 1,024 or more 
complex points in less than 20 ms with no ``user-accessible 
programmability''; or
    a.2.c.2. Time or frequency domain processing and correlation, 
including spectral analysis, digital filtering and beamforming using 
Fast Fourier or other transforms or processes with ``user accessible 
programmability'';
    a.2.d. Heading sensors having an accuracy of better than 
0.5 deg.; and
    a.2.d.1. Designed to be incorporated within the array hosing and 
to operate at depths exceeding 35 m or having an adjustable or 
removable depth sensing device in order to operate at depths 
exceeding 35 m; or
    a.2.d.2. Designed to be mounted external to the array hosing and 
having a sensor unit capable of operating with 360o roll at depths 
exceeding 35 m;
    b. Terrestrial geophones capable of conversion for use in marine 
systems, equipment or specially designed components controlled by 
6A001.a.2.a;
    c. Correlation-velocity sonar log equipment designed to measure 
the horizontal speed of the equipment carrier relative to the sea 
bed at distances between the carrier and the sea bed exceeding 500 
m.


6A002  Optical sensors.

License Requirements

    Reason for Control: NS, MT, CC, RS, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to optical detectors in       MT Column 1.                   
 6A002.a.1, a.3, and a.4 that are                                       
 specially designed or rated as                                         
 electromagnetic (including ``lasers'')                                 
 and ionizedparticle radiation                                          
 resistant..                                                            
RS applies to 6A002.a.1, a.2, a.3 and    RS Column 1.                   
 .c.                                                                    
CC applies to police-model infrared      CC Column 1.                   
 viewers in 6A002.c.                                                    
AT applies to entire entry.............  AT Column 1.                   
UN applies to 6A002.a.1, a.2 a.3 and c.  Rwanda.                        
------------------------------------------------------------------------

License Exceptions

    LVS: $3000, except N/A for 6A002.a.1, a.2, a.3, and c
    
[[Page 13007]]

    GBS: Yes, for 6A002.a.4
    CIV: Yes, for 6A002.a.4

List of Items Controlled

    Unit: parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: Image intensifiers defined in 6A002.a.2 and 
focal plane arrays defined in 6A002.a.3 specially designed, 
modified, or configured for military use and not part of civil 
equipment are subject to the export licensing authority of U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121 )
    Items:
    a. Optical detectors, as follows:

    Note: 6A002.a does not control germanium or silicon 
photodevices.

    a.1. ``Space-qualified'' solid-state detectors having any of the 
following:
    a.1.a.1. A peak response in the wavelength range exceeding 10 nm 
but not exceeding 300nm; and
    a.1.a.2. A response of less than 0.1% relative to the peak 
response at a wavelength exceeding 400 nm;
    a.1.b.1. A peak response in the wavelength range exceeding 900 
nm but not exceeding 1,200 nm; and
    a.1.b.2. A response ``time constant'' of 95 ns or less; or
    a.1.c. A peak response in the wavelength range exceeding 1,200 
nm but not exceeding 30,000 nm;
    a.2. Image intensifier tubes and specially designed components 
therefor, as follows:
    a.2.a. Image intensifier tubes having all the following:
    a.2.a.1. A peak response in wavelength range exceeding 400 nm, 
but not exceeding 1,050 nm;
    a.2.a.2. A microchannel plate for electron image amplification 
with a hole pitch (center-to-center spacing) of less than 25 
micrometers; and
    a.2.a.3.a. An S-20, S-25 or multialkali photocathode; or
    a.2.a.3.b. A GaAs or GaInAs photocathode;
    a.2.b. Specially designed components as follows:
    a.2.b.1. Fiber optic image inverters;
    a.2.b.2. Microchannel plates having both of the following 
characteristics:
    a.2.b.2.a. 15,000 or more hollow tubes per plate; and
    a.2.b.2.b. Hole pitch (center-to-center spacing) of less than 25 
micrometers; or
    a.2.b.3. GaAs or GaInAs photocathodes;
    a.3. Non-``space-qualified'' ``focal plane arrays'', having any 
of the following:

    Technical Note: Linear or two-dimensional multi-element detector 
arrays are referred to as ``focal plane arrays''.

    a.3.a.1. Individual elements with a peak response within the 
wavelength range exceeding 900 nm, but not exceeding 1,050 nm; and
    a.3.a.2. A response ``time constant'' of less than 0.5 ns;
    a.3.b.1. Individual elements with a peak response in the 
wavelength range exceeding 1,050 nm, but not exceeding 1,200 nm; and
    a.3.b.2. A response ``time constant'' of 95 ns or less; or
    a.3.c. Individual elements with a peak response in the 
wavelength range exceeding 1,200 nm, but not exceeding 30,000 nm;

    Note 1: 6A002.a.3 includes photoconductive arrays and 
photovoltaic arrays.

    Note 2: 6A002.a.3 does not control silicon ``focal plane 
arrays'', multi-element (not to exceed 16 elements) encapsulated 
photoconductive cells or pyroelectric detectors using any of the 
following:
    a. Lead sulphide;
    b. Triglycine sulphate and variants;
    c. Lead-lanthanum-zirconium titanate and variants;
    d. Lithium tantalate;
    e. Polyvinylidene fluoride and variants;
    f. Strontium barium niobate and variants; or
    g. Lead selenide.

    a.4. Non-``space-qualified'' single-element or non-focal-plane 
multi-element semiconductor photodiodes or phototransistors having 
both of the following:
    a.4.a. A peak response at a wavelength exceeding 1,200 nm, but 
not exceeding 30,000 nm; and
    a.4.b. A response ``time constant'' of 0.5 ns or less;
    b. ``Multispectral Imaging Sensors'' designed for remote sensing 
applications, having either of the following characteristics:
    b.1. An Instantaneous-Field-Of-View (IFOV) of less than 200 
microradians; or
    b.2. Specified for operation in the wavelength range exceeding 
400 nm, but not exceeding 30,000 nm; and
    b.2.a. Providing output imaging data in digital format; and
    b.2.b.1. ``Space-qualified''; or
    b.2.b.2. Designed for airborne operation and using other than 
silicon detectors;
    c. Direct view imaging equipment operating in the visible or 
infrared spectrum, incorporating either of the following:
    c.1. Image intensifier tubes controlled by 6A002.a.2 or
    c.2. ``Focal plane arrays'' controlled by 6A002.a.3;

    Technical Note: Direct view refers to imaging equipment 
operating in the visible or infrared spectrum, that presents a 
visual image to a human observer without converting the image into 
an electronic signal for television display, and that cannot record 
or store the image photographically, electronically, or by any other 
means.

    Note: 6A002.c does not control the following equipment 
incorporating other than GaAs or GaInAs photocathodes:
    a. Industrial or civilian intrusion alarm, traffic or industrial 
movement control or counting systems;
    b. Medical equipment;
    c. Industrial equipment used for inspection, sorting or analysis 
of the properties of materials;
    d. Flame detectors for industrial furnaces;
    e. Equipment specially designed for laboratory use.

    d. Special support components for optical sensors, as follows:
    d.1. ``Space-qualified'' cryocoolers;
    d.2. Non-``space-qualified'' cryocoolers, with a cooling source 
temperature below 218 K (-55 deg.C), as follows:
    d.2.a. Closed cycle with a specified Mean-Time-To-Failure 
(MTTF), or Mean-Time-Between-Failures (MTBF), exceeding 2,500 hours;
    d.2.b. Joule-Thomson (JT) self-regulating minicoolers with bore 
(outside) diameters of less than 8 mm;
    d.3. Optical sensing fibers:
    d.3.a. Specially fabricated either compositionally or 
structurally, or modified by coating, to be acoustically, thermally, 
inertially, electromagnetically or nuclear radiation sensitive; or
    d.3.b. Modified structurally to have a ``beat length'' of less 
than 50 mm (high birefringence).


6A003  Cameras.

License Requirements

    Reason for Control: NS, NP, RS, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
NP applies to items controlled in        NP Column 1.                   
 paragraphs 6A003.a.2, a.3 and a.4.                                     
RS applies to items controlled in        RS Column 1.                   
 6A003.b.3 and b.4.                                                     
AT applies to entire entry.............  AT Column 1.                   
UN applies to items controlled in        Rwanda.                        
 6A003.b.3 and b.4.                                                     
------------------------------------------------------------------------

License Exceptions

    LVS: $1500, except N/A for 6A003.a.2 through a.5, b.1, b.3 and 
b.4
    GBS: Yes for 6A003.a.1 and a.2 (see Advisory Note 3 to Category 
6)
    CIV: Yes for 6A003.a.1 and a.2 (see Advisory Note 3 to Category 
6)

List of Items Controlled

    Unit: Number
    Related Controls: Reference ECCNs 8A002.d and .e for cameras 
specially designed for underwater use.
    Related Definitions: N/A
    Items:

    a. Instrumentation cameras, as follows:
    a.1. High-speed cinema recording cameras using any film format 
from 8 mm to 16 mm inclusive, in which the film is continuously 
advanced throughout the recording period, and that are capable of 
recording at framing rates exceeding 13,150 frames per second;

    Note: 6A003.a.1 does not control cinema recording cameras for 
normal civil purposes.

    a.2. Mechanical high speed cameras, in which the film does not 
move, capable of recording at rates exceeding 1,000,000 frames per 
second for the full framing height of 35 mm film, or at 
proportionately higher rates for lesser frame heights, or at 
proportionately lower rates for greater frame heights;
    a.3. Mechanical or electronic streak cameras with writing speeds 
exceeding 10 mm/microsecond;
    a.4. Electronic framing cameras having a speed exceeding 
1,000,000 frames per second;
    a.5. Electronic cameras having:
    
[[Page 13008]]

    a.5.a. An electronic shutter speed (gating capability) of less 
than 1 microsecond per full frame; and
    a.5.b. A read out time allowing a framing rate of more than 125 
full frames per second;
    b. Imaging cameras, as follows:

    Note: 6A003.b does not control television or video cameras 
specially designed for television broadcasting.

    b.1. Video cameras incorporating solid state sensors, having any 
of the following:
    b.1.a. More than 4 x 10\6\ ``active pixels'' per solid state 
array for monochrome (black and white) cameras;
    b.1.b. More than 4 x 10\6\ ``active pixels'' per solid state 
array for color cameras incorporating three solid state arrays; or
    b.1.c. More than 12 x 10\6\ ``active pixels'' for solid state 
array color cameras incorporating one solid state array;
    b.2. Scanning cameras and scanning camera systems:
    b.2.a. Incorporating linear detector arrays with more than 8,192 
elements per array; and
    b.2.b. Having mechanical scanning in one direction;
    b.3. Incorporating image intensifiers controlled by 6A002.a.2.a;
    b.4. Incorporating focal plane arrays controlled by 6A002.a.3.


6A004  Optics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes for 6A004.a.1, a.2, a.4, b, d.1.a, e.2, e.4 and .f (See 
Advisory Note 4.1 to Category 6)
    CIV: Yes for 6A004.f and items in Advisory Note 4.1 to Category 
6

List of Items Controlled

    Unit: Equipment in number; cable in meters/feet; components in $ 
value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Optical mirrors (reflectors), as follows:
    a.1. ``Deformable mirrors'' with either continuous or multi-
element surfaces, and specially designed components therefor, 
capable of dynamically repositioning portions of the surface of the 
mirror at rates exceeding 100 Hz;
    a.2. Lightweight monolithic mirrors with an average ``equivalent 
density'' of less than 30 kg/m\2\, and a total weight exceeding 10 
kg;
    a.3. Lightweight ``composite'' or foam mirror structures with an 
average ``equivalent density'' of less than 30 kg/m\2\, and a total 
weight exceeding 2 kg;
    a.4. Beam steering mirrors more than 100 mm in diameter or 
length of major axis that maintain a flatness of lambda/2 or better 
(lambda is equal to 663nm) with a control bandwidth exceeding 100 
Hz;
    b. Optical components made from zinc selenide (ZnSe) or zinc 
sulphide (ZnS) with transmission in the wavelength range exceeding 
3,000 nm but not exceeding 25,000 nm and either of the following:
    b.1. Exceeding 100 cm \3\ in volume; or
    b.2. Exceeding 80 mm in diameter or length of major axis and 20 
mm in thickness (depth);
    c. ``Space-qualified'' components for optical systems, as 
follows:
    c.1. Lightweighted to less than 20% ``equivalent density'' 
compared with a solid blank of the same aperture and thickness;
    c.2. Substrates, substrates with surface coatings (single-layer 
or multi-layer, metallic or dielectric, conducting, semiconducting 
or insulating) or with protective films;
    c.3. Elements or assemblies of mirrors designed to be assembled 
in space into an optical system with a collecting aperture 
equivalent to or larger than a single optic 1 meter in diameter;
    c.4. Manufactured from ``composite'' materials having a 
coefficient of linear thermal expansion equal to or less than 
5 x 10-6 in any coordinate direction;
    d. Optical filters, as follows:
    d.1. For wavelengths longer than 250 nm, comprised of multi-
layer optical coatings and having either of the following:
    d.1.a. Bandwidths equal to or less than 1 nm Full Width Half 
Intensity (FWHI) and peak transmission of 90% or more; or
    d.1.b. Bandwidths equal to or less than 0.1 nm FWHI and peak 
transmission of 50% or more;

    Note: 6A004.d.1 does not control optical filters with fixed air 
gaps or Lyot-type filters.

    d.2. For wavelengths longer than 250 nm, and having all of the 
following:
    d.2.a. Tunable over a spectral range of 500 nm or more;
    d.2.b. Instantaneous optical bandpass of 1.25 nm or less;
    d.2.c. Wavelength resettable within 0.1 ms to an accuracy of 1 
nm or better within the tunable spectral range; and
    d.2.d. A single peak transmission of 91% or more;
    d.3. Optical opacity switches (filters) with a field of view of 
30 deg. or wider and a response time equal to or less than 1 ns;
    e. Optical control equipment, as follows:
    e.1. Specially designed to maintain the surface figure or 
orientation of the ``space-qualified'' components controlled by 
6A004.c.1 or c.3;
    e.2. Having steering, tracking, stabilization or resonator 
alignment bandwidths equal to or more than 100 Hz and an accuracy of 
10 microradians or less;
    e.3. Gimbals having a maximum slew exceeding 5 deg., a bandwidth 
equal to or more than 100 Hz and either of the following:
    e.3.a.1. Exceeding 0.15 m but not exceeding 1 m in diameter or 
major axis length;
    e.3.a.2. Capable of angular accelerations exceeding 2 radians/
s\2\; and
    e.3.a.3. Having angular pointing errors equal to or less than 
200 microradians; or
    e.3.b.1. Exceeding 1 m in diameter or major axis length;
    e.3.b.2. Capable of angular accelerations exceeding 0.5 radians/
s\2\; and
    e.3.b.3. Having angular pointing errors equal to or less than 
200 microradians;
    e.4. Specially designed to maintain the alignment of phased 
array or phased segment mirror systems consisting of mirrors with a 
segment diameter or major axis length of 1 m or more;
    f. ``Fluoride fiber'' cable, or optical fibers therefor, having 
an attenuation of less than 4 dB/km in the wavelength range 
exceeding 1,000 nm but not exceeding 3,000 nm.


6A005  Lasers, components and optical equipment.

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
NP applies to 6A005.a.1.c, a.2.a (with   NP Column 1.                   
 an output power > 40W), a.4.c, a.6,                                    
 (argon ion lasers only), c.1.b (with                                   
 an output power > 30W), c.2.c.2.a                                      
 (with an output power > 40W),                                          
 c.2.c.2.b (with an output power >                                      
 40W), c.2.d.2.b (with an output power                                  
 > 40W), and d.2.c.                                                     
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000 for all other items; N/A for NP items
    GBS: Yes, for items in Advisory Notes 5.1, 5.2 and 5.3 to 
Category 6
    CIV: Yes, except for 6A005.c.2.a, .d (except d.2.c), .e and for 
items in Advisory Notes 5.1, 5.2 and 5.3 to Category 6

List of Items Controlled

    Unit: Equipment in number; parts and accessories in Sec. value
    Related Controls: Shared aperture optical elements, capable of 
operating in super-high power laser applications are subject to the 
export licensing authority of the U.S. Department of State, Office 
of Defense Trade Controls. (See 22 CFR part 121, Category XII.)
    Related Definitions: 1. Pulsed ``lasers'' include those that run 
in a continuous wave (CW) mode with pulses superimposed. 2. Pulse-
excited ``lasers'' include those that run in a continuously excited 
mode with pulse excitation superimposed. 3. The control status of 
Raman ``lasers'' is determined by the parameters of the pumping 
source ``lasers''. The pumping source ``lasers'' can be any of the 
``lasers'' described below.
    Items:

    a. Gas ``lasers'', as follows:
    a.1. Excimer ``lasers'' having any of the following:
    a.1.a. An output wavelength not exceeding 150 nm and:
    a.1.a.1. An output energy exceeding 50 mJ per pulse; or
    a.1.a.2. An average or CW output power exceeding 1 W;
    a.1.b. An output wavelength exceeding 150 nm but not exceeding 
190 nm and:

[[Page 13009]]

    a.1.b.1. An output energy exceeding 1.5 J per pulse; or
    a.1.b.2. An average or CW output power exceeding 120 W;
    a.1.c. An output wavelength exceeding 190 nm but not exceeding 
360 nm and:
    a.1.c.1. An output energy exceeding 10 J per pulse; or
    a.1.c.2. An average or CW output power exceeding 500 W; or
    a.1.d. An output wavelength exceeding 360 nm and:
    a.1.d.1. An output energy exceeding 1.5 J per pulse; or
    a.1.d.2. An average or CW output power exceeding 30 W;
    a.2. Metal vapour ``lasers'', as follows:
    a.2.a. Copper (Cu) ``lasers'' with an average or CW output power 
exceeding 20 W;
    a.2.b. Gold (Au) ``lasers'' with an average or CW output power 
exceeding 5 W;
    a.2.c. Sodium (Na) ``lasers'' with an output power exceeding 5 
W;
    a.2.d. Barium (Ba) ``lasers'' with an average or CW output power 
exceeding 2 W;
    a.3. Carbon monoxide (CO) ``lasers'' having either:
    a.3.a. An output energy exceeding 2 J per pulse and a pulsed 
``peak power'' exceeding 5 kW; or
    a.3.b. An average or CW output power exceeding 5 kW;
    a.4. Carbon dioxide (CO2) ``lasers'' having any of the 
following:
    a.4.a. A CW output power exceeding 10 kW;
    a.4.b. A pulsed output with a ``pulse duration'' exceeding 10 
microseconds and:
    a.4.b.1. An average output power exceeding 10 kW; or
    a.4.b.2. A pulsed ``peak power'' exceeding 100 kW; or
    a.4.c. A pulsed output with a ``pulse duration'' equal to or 
less than 10 microseconds and:
    a.4.c.1. A pulse energy exceeding 5 J per pulse and ``peak 
power'' exceeding 2.5 kW; or
    a.4.c.2. An average output power exceeding 2.5 kW;
    a.5. ``Chemical lasers'', as follows:
    a.5.a. Hydrogen Fluoride (HF) ``lasers'';
    a.5.b. Deuterium Fluoride (DF) ``lasers'';
    a.5.c. ``Transfer lasers'':
    a.5.c.1. Oxygen Iodine (O2-I) ``lasers'';
    a.5.c.2. Deuterium Fluoride-Carbon dioxide (DF-CO2) 
``lasers'';
    a.6. Gas discharge and ion ``lasers'', i.e., krypton ion or 
argon ion ``lasers'', as follows:
    a.6.a. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 50 W; or
    a.6.b. An average or CW output power exceeding 50 W; or
    a.7. Other gas ``lasers'', except nitrogen ``lasers'', having 
any of the following:
    a.7.a. An output wavelength not exceeding 150 nm and:
    a.7.a.1. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    a.7.a.2. An average or CW output power exceeding 1 W;
    a.7.b. An output wavelength exceeding 150 nm but not exceeding 
800 nm and:
    a.7.b.1. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 30 W; or
    a.7.b.2. An average or CW output power exceeding 30 W;
    a.7.c. An output wavelength exceeding 800 nm but not exceeding 
1,400 nm and:
    a.7.c.1. An output energy exceeding 0.25 J per pulse and a 
pulsed ``peak power'' exceeding 10 W; or
    a.7.c.2. An average or CW output power exceeding 10 W; or
    a.7.d. An output wavelength exceeding 1,400 nm and an average or 
CW output power exceeding 1 W;
    b. Semiconductor ``lasers'', as follows:

    Technical Note: Semiconductor ``lasers'' are commonly called 
``laser'' diodes.

    Note: The control status of semiconductor ``lasers'' specially 
designed for other equipment is determined by the control status of 
the other equipment.

    b.1. Individual, single-transverse mode semiconductor ``lasers'' 
having:
    b.1.a. An average output power exceeding 100 mW; or
    b.1.b. A wavelength exceeding 1,050 nm;
    b.2. Individual, multiple-transverse mode semiconductor 
``lasers'', or arrays of individual semiconductor ``lasers'', 
having:
    b.2.a. An output energy exceeding 500 microjoules per pulse and 
a pulsed ``peak power'' exceeding 10 W;
    b.2.b. An average or CW output power exceeding 10 W; or
    b.2.c. A wavelength exceeding 1,050 nm;
    c. Solid state ``lasers'', as follows:
    c.1. ``Tunable'' ``lasers'' having any of the following:

    Note: 6A005.c.1. includes titanium-sapphire (Ti: 
Al2O3), thulium-YAG (Tm: YAG), thulium-YSGG (Tm: YSGG), 
alexandrite (Cr: BeAl2O4) and color center ``lasers''.

    c.1.a. An output wavelength less than 600 nm and:
    c.1.a.1. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.1.a.2. An average or CW output power exceeding 1 W;
    c.1.b. An output wavelength of 600 nm or more but not exceeding 
1,400 nm and:
    c.1.b.1. An output energy exceeding 1 J per pulse and a pulsed 
``peak power'' exceeding 20 W; or
    c.1.b.2. An average or CW output power exceeding 20 W; or
    c.1.c. An output wavelength exceeding 1,400 nm and:
    c.1.c.1. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.1.c.2.An average or CW output power exceeding 1 W;
    c.2. Non-''tunable'' ``lasers'', as follows:
    Note: 6A005.c.2. includes atomic transition solid state 
``lasers''.
    c.2.a. Ruby ``lasers'' having an output energy exceeding 20 J 
per pulse;
    c.2.b. Neodymium glass ``lasers'', as follows:
    c.2.b.1. ``Q-switched lasers'' having:
    c.2.b.1.a. An output energy exceeding 20 J but not exceeding 50 
J per pulse and an average output power exceeding 10 W; or
    c.2.b.1.b. An output energy exceeding 50 J per pulse;
    c.2.b.2. Non-''Q-switched lasers'' having:
    c.2.b.2.a. An output energy exceeding 50 J but not exceeding 100 
J per pulse and an average output power exceeding 20 W; or
    c.2.b.2.b. An output energy exceeding 100 J per pulse;
    c.2.c. Neodymium-doped (other than glass) ``lasers'', as 
follows, with an output wavelength exceeding 1,000 nm but not 
exceeding 1,100 nm:

    Note: For Neodymium-doped (other than glass) ``lasers'' having 
an output wavelength not exceeding 1,000 nm or exceeding 1,100 nm, 
see 6A005.c.2.d.

    c.2.c.1. Pulse excited, mode-locked, ``Q-switched lasers'' with 
a ``pulse duration'' of less than 1 ns and:
    c.2.c.1.a. A ``peak power'' exceeding 5 GW;
    c.2.c.1.b. An average output power exceeding 10 W; or
    c.2.c.1.c. A pulsed energy exceeding 0.1 J;
    c.2.c.2. Pulse-excited, ``Q-switched lasers'', with a pulse 
duration equal to or more than 1 ns, and:
    c.2.c.2.a. A single-transverse mode output with:
    c.2.c.2.a.1. A ``peak power'' exceeding 100 MW;
    c.2.c.2.a.2. An average output power exceeding 20 W; or
    c.2.c.2.a.3. A pulsed energy exceeding 2 J; or
    c.2.c.2.b. A multiple-transverse mode output with:
    c.2.c.2.b.1. A ``peak power'' exceeding 200 MW;
    c.2.c.2.b.2. An average output power exceeding 50 W; or
    c.2.c.2.b.3. A pulsed energy exceeding 2 J;
    c.2.c.3. Pulse-excited, non-``Q-switched lasers'', having:
    c.2.c.3.a. A single-transverse mode output with:
    c.2.c.3.a.1. A ``peak power'' exceeding 500 kW; or
    c.2.c.3.a.2. An average output power exceeding 150 W; or
    c.2.c.3.b. A multiple-transverse mode output with:
    c.2.c.3.b.1. A ``peak power'' exceeding 1 MW; or
    c.2.c.3.b.2. An average power exceeding 500 W;
    c.2.c.4. Continuously excited ``lasers'' having:
    c.2.c.4.a. A single-transverse mode output with:
    c.2.c.4.a.1. A ``peak power'' exceeding 500 kW; or
    c.2.c.4.a.2. An average or CW output power exceeding 150 W; or
    c.2.c.4.b. A multiple-transverse mode output with:
    c.2.c.4.b.1. A ``peak power'' exceeding 1 MW; or
    c.2.c.4.b.2. An average or CW output power exceeding 500 W;
    c.2.d. Other non-''tunable'' ``lasers'', having any of the 
following:
    c.2.d.1. A wavelength less than 150 nm and:
    c.2.d.1.a. An output energy exceeding 50 mJ per pulse and a 
pulsed ``peak power'' exceeding 1 W; or

[[Page 13010]]

    c.2.d.1.b. An average or CW output power exceeding 1 W;
    c.2.d.2. A wavelength of 150 nm or more but not exceeding 800 nm 
and:
    c.2.d.2.a. An output energy exceeding 1.5 J per pulse and a 
pulsed ``peak power'' exceeding 30 W; or
    c.2.d.2.b. An average or CW output power exceeding 30 W;
    c.2.d.3. A wavelength exceeding 800 nm but not exceeding 1,400 
nm, as follows:
    c.2.d.3.a. ``Q-switched lasers'' with:
    c.2.d.3.a.1. An output energy exceeding 0.5 J per pulse and a 
pulsed ``peak power'' exceeding 50 W; or
    c.2.d.3.a.2. An average output power exceeding:
    c.2.d.3.a.2.a. 10 W for single-mode ``lasers'';
    c.2.d.3.a.2.b. 30 W for multimode ``lasers'';
    c.2.d.3.b. Non-``Q-switched lasers'' with:
    c.2.d.3.b.1. An output energy exceeding 2 J per pulse and a 
pulsed ``peak power'' exceeding 50 W; or
    c.2.d.3.b.2. An average or CW output power exceeding 50 W; or
    c.2.d.4. A wavelength exceeding 1,400 nm and:
    c.2.d.4.a. An output energy exceeding 100 mJ per pulse and a 
pulsed ``peak power'' exceeding 1 W; or
    c.2.d.4.b. An average or CW output power exceeding 1 W;
    d. Dye and other liquid ``lasers'', having any of the following:
    d.1. A wavelength less than 150 nm and:
    d.1.a. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    d.1.b. An average or CW output power exceeding 1 W;
    d.2. A wavelength of 150 nm or more but not exceeding 800 nm 
and:
    d.2.a. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 20 W;
    d.2.b. An average or CW output power exceeding 20 W; or
    d.2.c. A pulsed single longitudinal mode oscillator with an 
average output power exceeding 1 W and a repetition rate exceeding 1 
kHz if the ``pulse duration'' is less than 100 ns;
    d.3. A wavelength exceeding 800 nm but not exceeding 1,400 nm 
and:
    d.3.a. An output energy exceeding 0.5 J per pulse and a pulsed 
``peak power'' exceeding 10 W; or
    d.3.b. An average or CW output power exceeding 10 W; or
    d.4. A wavelength exceeding 1,400 nm and:
    d.4.a. An output energy exceeding 100 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    d.4.b. An average or CW output power exceeding 1 W;
    e. Free electron ``lasers'';
    f. Components, as follows:
    f.1. Mirrors cooled either by active cooling or by heat pipe 
cooling;

    Technical Note: Active cooling is a cooling technique for 
optical components using flowing fluids within the subsurface 
(nominally less than 1 mm below the optical surface) of the optical 
component to remove heat from the optic.

    f.2. Optical mirrors or transmissive or partially transmissive 
optical or electro-optical components specially designed for use 
with controlled ``lasers'';
    g. Optical equipment, as follows:
    g.1. Dynamic wavefront (phase) measuring equipment capable of 
mapping at least 50 positions on a beam wavefront with:
    g.1.a. Frame rates equal to or more than 100 Hz and phase 
discrimination of at least 5% of the beam's wavelength; or
    g.1.b. Frame rates equal to or more than 1,000 Hz and phase 
discrimination of at least 20% of the beam's wavelength;
    g.2. ``Laser'' diagnostic equipment capable of measuring 
``Super-High Power Laser'' (SHPL) system angular beam steering 
errors of equal to or less than 10 microradians;
    g.3. Optical equipment, assemblies or components specially 
designed for a phased-array SHPL system for coherent beam 
combination to an accuracy of Lambda/10 at the designed wavelength, 
or 0.1 micrometer, whichever is the smaller;
    g.4. Projection telescopes specially designed for use with SHPL 
systems.


6A006  ``Magnetometers'', ``magnetic gradiometers'', ``intrinsic 
magnetic gradiometers'' and compensation systems and specially designed 
components.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Sec. value
    Related Controls: N/A
    Related Definition: This entry does not control instruments 
specially designed for biomagnetic measurements for medical 
diagnostics, unless they incorporate unembedded sensors controlled 
by 6A006.h.
    Items:

    a. ``Magnetometers'' using ``superconductive'', optically pumped 
or nuclear precession (proton/Overhauser) technology having a 
``noise level'' (sensitivity) lower (better) than 0.05 nT rms per 
square root Hz;
    b. Induction coil ``magnetometers'' having a ``noise level'' 
(sensitivity) lower (better) than:
    b.1. 0.05 nT rms per square root Hz at frequencies of less than 
1 Hz;
    b.2. 1 x 10-3 nT rms per square root Hz at frequencies of 1 
Hz or more but not exceeding 10 Hz; or
    b.3. 1 x 10-4 nT rms per square root Hz at frequencies 
exceeding 10 Hz;
    c. Fiber optic ``magnetometers'' having a ``noise level'' 
(sensitivity) lower (better) than 1 nT rms per square root Hz;
    d. ``Magnetic gradiometers'' using multiple ``magnetometers'' 
controlled by 6A006.a, .b or .c;
    e. Fiber optic ``intrinsic magnetic gradiometers'' having a 
magnetic gradient field ``noise level'' (sensitivity) lower (better) 
than 0.3 nT/m rms per square root Hz;
    f. ``Intrinsic magnetic gradiometers'', using technology other 
than fiber-optic technology, having a magnetic gradient field 
``noise level'' (sensitivity) lower (better) than 0.015 nT/m rms per 
square root Hz;
    g. Magnetic compensation systems for magnetic sensors designed 
for operation on mobile platforms;
    h. ``Superconductive'' electromagnetic sensors, containing 
components manufactured from ``superconductive'' materials, as 
follows:
    h.1. Designed for operation at temperatures below the ``critical 
temperature'' of at least one of their ``superconductive'' 
constituents (including Josephson effect devices or 
``superconductive'' quantum interference devices (SQUIDS));
    h.2. Designed for sensing electromagnetic field variations at 
frequencies of 1 KHz or less, and:
    h.3. Having any of the following characteristics:
    h.3.a. Incorporating thin-film SQUIDS with a minimum feature 
size of less than 2 micrometers and with associated input and output 
coupling circuits;
    h.3.b. Designed to operate with a magnetic field slew rate 
exceeding 1 x 106 magnetic flux quanta per second;
    h.3.c. Designed to function without magnetic shielding in the 
earth's ambient magnetic field; or
    h.3.d. Having a temperature coefficient less (smaller) than 0.1 
magnetic flux quantum/K;


6A007  Gravity meters (gravimeters) and gravity gradiometers.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to 6A07.b and c when the      MT Column 1.                   
 accuracies in 6A07.b.1 and b.2 are met                                 
 or exceeded.                                                           
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: N/A
    Items:

    a. Gravity meters for ground use having a static accuracy of 
less (better) than 10 microgal;

    Note: 6A007.a does not control ground gravity meters of the 
quartz element (Worden) type.


[[Page 13011]]

    b. Gravity meters for mobile platforms for ground, marine, 
submersible, space or airborne use having:
    b.1. A static accuracy of less (better) than 0.7 milligal; and
    b.2. An in-service (operational) accuracy of less (better) than 
0.7 milligal with a time-to-steady-state registration of less than 2 
minutes under any combination of attendant corrective compensations 
and motional influences;
    c. Gravity gradiometers.


6A008  Radar systems, equipment and assemblies and specially designed 
components therefor.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to items that are designed    MT Column 1.                   
 for airborne applications and that are                                 
 usable in systems controlled for MT                                    
 reasons..                                                              
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: Yes, for 6A008.b, .c, and l.1 only
    CIV: Yes, for 6A008.b, .c, and l.1 only

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: This entry does not control: 1.) Secondary 
surveillance radar (SSR); 2.) Car radar designed for collision 
prevention; 3.) Displays or monitors used for Air Traffic Control 
(ATC) having no more than 12 resolvable elements per mm; 4.) 
Meteorological (weather) radar.
    Items:

    a. Operating at frequencies from 40 GHz to 230 GHz and having an 
average output power exceeding 100mW;
    b. Having a tunable bandwidth exceeding 6.25% of the 
center operating frequency;

    Technical Note: The center operating frequency equals one half 
of the sum of the highest plus the lowest specified operating 
frequencies.

    c. Capable of operating simultaneously on more than two carrier 
frequencies;
    d. Capable of operating in synthetic aperture (SAR), inverse 
synthetic aperture (ISAR) or sidelooking airborne (SLAR) radar mode;
    e. Incorporating ``electronically steerable phased array 
antennae'';
    f. Capable of heightfinding non-cooperative targets;

    Note: 6A008.f does not control precision approach radar 
equipment (PAR) conforming to ICAO standards;

    g. Designed specially for airborne (balloon or airframe mounted) 
operation and having Doppler signal processing for the detection of 
moving targets;
    h. Employing processing of radar signals using:
    h.1. ``Radar spread spectrum'' techniques; or
    h.2. ``Radar frequency agility'' techniques;
    i. Providing ground-based operation with a maximum 
``instrumented range'' exceeding 185 km;

    Note: 6A008.i does not control:
    a. Fishing ground surveillance radar;
    b. Ground radar equipment specially designed for enroute air 
traffic control and ``software'' specially designed for ``use'' 
thereof, provided:
    1. It has a maximum ``instrumented range'' of 500 km or less
    2. It is configured so that radar target data can be transmitted 
only one way from the radar site to one or more civil ATC centers;
    3. It contains no provisions for remote control of the radar 
scan rate from the enroute ATC center; and
    4. It is to be permanently installed;

    N.B.: The ``use'' ``software'' must be limited to ``object 
code'' and the minimum amount of ``source code'' necessary for 
installation, operation or maintenance.

    j. ``Laser'' radar or Light Detection and Ranging (LIDAR) 
equipment, having either of the following:
    j.1. ``Space-qualified''; or
    j.2. Employing coherent heterodyne or homodyne detection 
techniques and having an angular resolution of less (better) than 20 
microradians;

    Note: 6A008.j does not control LIDAR equipment specially 
designed for surveying or for meteorological observation.

    k. Having signal processing sub-systems using ``pulse 
compression'' with:
    k.1. A ``pulse compression'' ratio exceeding 150; or
    k.2. A pulse width of less than 200 ns;
    l. Having data processing sub-systems with:
    l.1. ``Automatic target tracking'' providing, at any antenna 
rotation, the predicted target position beyond the time of the next 
antenna beam passage;

    Note: 6A008.l.1 does not control conflict alert capability in 
air traffic control systems, or marine or harbor radar.

    l.2. Calculation of target velocity from primary radar having 
non-periodic (variable) scanning rates;
    l.3. Processing for automatic pattern recognition (feature 
extraction) and comparison with target characteristic data bases 
(waveforms or imagery) to identify or classify targets; or
    l.4. Superposition and correlation, or fusion, of target data 
from two or more ``geographically dispersed'' and ``interconnected 
radar'' sensors to enhance and discriminate targets.

    Note: 6A008.l.4 does not control systems, equipment and 
assemblies used for marine traffic control.


6A018  Magnetic, pressure, and acoustic underwater detection devices 
specially designed for military purposes and controls and components 
therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; components in $ value
    Related Controls: N/A
    Related Definition: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6A102  Radiation hardened detectors, other than those specified in 
6A002, for use in protecting against nuclear effects (e.g., 
electromagnetic pulse (EMP), X-rays, combined blast and thermal 
effects) and usable for ``missiles'', designed or rated to withstand 
radiation levels which meet or exceed a total irradiation dose of 5 X 
105 rads (Si).

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Components in number
    Related Controls: N/A
    Related Definition: In 6A102, a detector is defined as a 
mechanical, electrical, optical or chemical device that 
automatically identifies and records, or registers a stimulus such 
as an environmental change in pressure or temperature, an electrical 
or electromagnetic signal or radiation from a radioactive material.
    Items: The list of items controlled is contained in the ECCN 
heading.


6A107  Specially designed components for gravity meters and gravity 
gradiometers specified in 6A007.b. and c.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    
[[Page 13012]]

    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6A108  Radar systems and tracking systems, other than those controlled 
by 6A008.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: This entry does not control airborne civil 
weather radar conforming to international standards for civil 
weather radars provided that they do not incorporate any of the 
following: (a) Phased array antennas; (b) Frequency agility; (c) 
Spread spectrum; or (d) Signal processing specially designed for the 
tracking of vehicles.
    Laser radar systems are defined as those that embody specialized 
transmission, scanning, receiving and signal processing techniques 
for utilization of lasers for echo ranging, direction finding and 
discrimination of targets by location, radial speed and body 
reflection characteristics.
    a. Radar and laser radar systems designed or modified for use in 
systems controlled by 9A004 (as provided in the Commerce Control 
List) and 9A104.
    b. Precision tracking systems usable for ``missiles'', as 
follows:
    b.1. Tracking systems that use a code translator in conjunction 
with either surface or airborne references or navigation satellite 
systems to provide real-time measurements of in-flight position and 
velocity;
    b.2. Range instrumentation radars including associated optical/
infrared trackers with all of the following capabilities:
    b.2.a. Angular resolution better than 3 milliradians (0.5 mils);
    b.2.b. Range of 30 km or greater, with a range resolution better 
than 10 meters rms; and
    b.2.c. Velocity resolution better than 3 meters per second.


6A202  Photomultiplier tubes with a photocathode area of greater than 
20cm2 having an anode pulse rise time of less than 1 ns.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6A203  Cameras and components not controlled by ECCN 6A003.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment and components in number; parts and accessories 
in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Mechanical rotating mirror cameras, as follows; and specially 
designed components therefor:
    a.1 Framing cameras with recording rates greater than 225,000 
frames per second;
    a.2. Streak cameras with writing speeds greater than 0.5 mm per 
microsecond;

    Technical Note: Components of such cameras include their 
synchronizing electronics units and rotor assemblies consisting of 
turbines, mirrors and bearings.

    b. Electronic streak and framing cameras and tubes, as follows:
    b.1. Electronic streak cameras capable of 50 ns or less time 
resolution and streak tubes therefor;
    b.2. Electronic (or electrically shuttered) framing cameras 
capable of 50 ns or less frame exposure time;
    b.3. Framing tubes and solid state imaging devices for use with 
cameras described in 6A203.b.2, as follows:
    b.3.a. Proximity focused image intensifier tubes having a 
photocathode deposited on a transparent conductive coating to 
decrease photocathode sheet resistance;
    b.3.b. Gated silicon intensifier target (SIT) vidicon tubes, 
where a fast system allows gating the photoelectrons from the 
photocathode before they impinge on the SIT plate;
    b.3.c. Kerr or pockel cell electro-optical shuttering; or
    b.3.d. Other framing tubes and solid-state imaging devices 
having a fast-image gating time of less than 50 ns specially 
designed for cameras controlled by 6A203.b.2;
    c. Radiation-hardended television cameras, or lenses therefor, 
specially designed or rated as radiation-hardened to withstand 
greater than 5  x  10\4\ grays (Silicon) (5  x  10\6\ rad (Silicon)) 
without operational degradation.


6A205  Lasers, other than those specified in 6A005.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Argon ion lasers with greater than 40 W average output power 
operating at wavelengths between 400 nm and 515 nm;
    b. Tunable pulsed single-mode dye oscillators capable of an 
average power output of greater than 1 W, a repetition rate greater 
than 1 kHz, a pulse less than 100 ns, and a wavelength between 300 
nm and 800 nm;
    c. Tunable pulsed dye laser amplifiers and oscillators with an 
average power output of greater than 30 W, a repetition rate greater 
than 1 kHz, a pulse width less than 100 ns, and a wavelength between 
300 nm and 800 nm; except: Single mode oscillators;
    d. Pulsed carbon dioxide lasers with a repetition rate greater 
than 250 Hz, an average power output of greater than 500 W, and a 
pulse of less than 200 ns operating at wavelengths between 9,000 nm 
and 11,000 nm;

    Note: This specification is not intended to control the higher 
power (typically 1 to 5kW) industrial CO2 lasers used in 
applications such as cutting and welding, as those latter lasers are 
either continuous wave or are pulsed with a pulse width more than 
200 ns.
    e. Para-hydrogen Raman shifters designed to operate at 16 
micrometer output wavelength and at a repetition rate greater than 
250 Hz.


6A225  Velocity interferometers for measuring velocities in excess of 1 
km per second during time intervals less than 10 microseconds (e.g. 
VISAR's, Doppler laser interferometers, DLI's, etc.).

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    
[[Page 13013]]

    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6A226  Pressure sensors.

License Requirements

    Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    a. Manganin gauges for pressures greater than 100 kilobars; or
    b. Quartz pressure transducers for pressures greater than 100 
kilobars.


6A990  Airborne radar equipment, n.e.s., and specially designed 
components therefor.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    The list of items controlled is contained in the ECCN heading.


6A992  Gravity meters (gravimeters) for ground use, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    a. Having a static accuracy of less (better) than 100 microgal; 
or
    b. Being of the quartz element (Worden) type.


6A993  ``Magnetometers'', n.e.s., having a ``noise level'' 
(sensitivity) lower (better) than 1.0 nT rms per square root Hz.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    The list of items controlled is contained in the ECCN heading.


6A994  Marine or terrestrial acoustic equipment, n.e.s., capable of 
detecting or locating underwater objects or features or positioning 
surface vessels or underwater vehicles; and specially designed 
components, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    The list of items controlled is contained in the ECCN heading.

B. Test, Inspection and Production Equipment


6B004  Optics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: Yes for Advisory Note 4.2 to Category 6
    CIV: Yes for Advisory Note 4.2 to Category 6

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definition: This entry does not control microscopes.

    a. Equipment for measuring absolute reflectance to an accuracy 
of 0.1% of the reflectance value;
    b. Equipment other than optical surface scattering measurement 
equipment, having an unobscured aperture of more than 10 cm, 
specially designed for the non-contact optical measurement of a non-
planar optical surface figure (profile) to an ``accuracy'' of 2 nm 
or less (better) against the required profile.


6B005  Specially designed or modified equipment, including tools, dies, 
fixtures or gauges, and other specially designed components and 
accessories therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. For the manufacture or inspection of:
    a.1. Free electron ``laser'' magnet wigglers;
    a.2. Free electron ``laser'' photo injectors;
    b. For the adjustment, to required tolerances, of the 
longitudinal magnetic field of free electron ``lasers''.


6B007  Equipment to produce, align and calibrate land-based gravity 
meters with a static accuracy of better than 0.1 milligal.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

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

    The list of items controlled is contained in the ECCN heading.
    
[[Page 13014]]



6B008  Pulse radar cross-section measurement systems having transmit 
pulse widths of 100 ns or less and specially designed components 
therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

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

    The list of items controlled is contained in the ECCN heading.


6B108  Systems specially designed for radar cross section measurement 
usable for ``missiles'' and their subsystems.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials


6C002  Optical sensors.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: Yes for 6C002.c
    CIV: Yes for 6C002.c

List of Items Controlled

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

    a. Elemental tellurium (Te) of purity levels equal to or more 
than 99.9995%;
    b. Single crystals of cadmium telluride (CdTe) cadmium zinc 
telluride (CdZnTe) or mercury cadmium tellurium (HgCdTe) of any 
purity level, including epitaxial wafers thereof;

    Technical Note: Purity verified in accordance with ASTM F574-83 
standard or equivalents.

    c. ``Optical fiber preforms'' specially designed for the 
manufacture of high birefringence fibers controlled by 6A002.d.3.


6C004  Optics.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $1500
    GBS: Yes for 6C004.h and 6C004.a, e.2, and .f as described in 
Advisory Note 4.1 to Category 6
    CIV: Yes for 6C004.h and 6C004.a, e.2, and .f as described in 
Advisory Note 4.1 to Category 6

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Zinc selenide (ZnSe) and zinc sulphide (ZnS) ``substrate 
blanks'' produced by the chemical vapor deposition process:
    a.1. Larger than 100 cm3 in volume; or
    a.2. Larger than 80 mm in diameter with a thickness equal to or 
more than 20 mm;
    b. Boules of the following electro-optic materials:
    b.1. Potassium titanyl arsenate (KTA);
    b.2. Silver gallium selenide (AgGaSe2);
    b.3. Thallium arsenic selenide (Tl3AsSe3, also known 
as TAS);
    c. Non-linear optical materials having:
    c.1. Third order susceptibility (chi 3) equal to or less than 1 
W/m2; and
    c.2. A response time of less than 1 ms;
    d. ``Substrate blanks'' of silicon carbide or beryllium 
beryllium (Be/Be) deposited materials exceeding 300 mm in diameter 
or major axis length;
    e. Low optical absorption materials, as follows:
    e.1. Bulk fluoride compounds containing ingredients with a 
purity of 99.999% or better; or

    Note: 6C004.e.1 controls fluorides of zirconium or aluminium and 
variants.
    e.2. Bulk fluoride glass made from compounds controlled by 
6C004.e.1;
    f. Glass, including fused silica, phosphate glass, 
fluorophosphate glass, zirconium fluoride (ZrF4) and hafnium 
fluoride (HfF4) with:
    f.1. A hydroxil ion (OH-) concentration of less than 5 ppm;
    f.2. Integrated metallic purity levels of less than 1 ppm; and
    f.3. High homogeneity (index of refraction variance) less than 
5 x 10-6;
    g. Synthetically produced diamond material with an absorption of 
less than 10-5 cm-1 for wavelengths exceeding 200 nm, but 
not exceeding 14,000 nm;
    h. ``Optical fiber preforms'' made from bulk fluoride compounds 
containing ingredients with a purity of 99.999% or better, specially 
designed for the manufacture of ``fluoride fibers'' controlled by 
6A004.f.


6C005  Synthetic crystalline ``laser'' host material in unfinished 
form.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Titanium doped sapphire;
    b. Alexandrite.

D. Software


6D001  ``Software'' specially designed for the ``development'' or 
``production'' of equipment controlled by 6A002, 6A003, 6A004, 6A005, 
6A007, 6A008, 6A102, 6A108, 6B008 or 6B108.

License Requirements

    Reason for Control: NS, MT, NP, RS, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``software'' for           NS Column 1.                   
 equipment controlled by 6A004, 6A005,                                  
 6A008 or 6B008.                                                        
MT applies to ``software'' for           MT Column 1.                   
 equipment controlled by 6A002, 6A003,                                  
 6A007, 6A008 (that is designed for                                     
 airborne applications and that are                                     
 usable in systems controlled for MT                                    
 reasons), 6A102, 6A108 or 6B108 for MT                                 
 reasons.                                                               
NP applies to ``software'' for           NP Column 1.                   
 equipment controlled by 6A005 for NP                                   
 reasons.                                                               
RS applies to ``software'' for           RS Column 1.                   
 equipment controlled by 6A002 or 6A003                                 
 for RS reasons.                                                        
AT applies to entire entry.............  AT Column 1.                   
UN applies to ``software'' for           Rwanda.                        
 equipment controlled by 6A002 or 6A003                                 
 for UN reasons.                                                        
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    
[[Page 13015]]

    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6D002  ``Software'' specially designed for the ``use'' of equipment 
controlled by 6A002.b, 6A008, or 6B008.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1                    
MT applies to ``software'' for           MT Column 1                    
 equipment controlled by 6A008 that is                                  
 designed for airborne applications and                                 
 that are usable in systems controlled                                  
 for MT reasons.                                                        
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6D003  Other ``software.''

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: N/A
    CIV: Yes for 6D003.d.1
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Acoustics:
    a.1. ``Software'' specially designed for acoustic beam forming 
for the ``real-time processing'' of acoustic data for passive 
reception using towed hydrophone arrays;
    a.2. ``Source code'' for the ``real-time processing'' of 
acoustic data for passive reception using towed hydrophone arrays;
    b. Magnetometers:
    b.1. ``Software'' specially designed for magnetic compensation 
systems for magnetic sensors designed to operate on mobile 
platforms;
    b.2. ``Software'' specially designed for magnetic anomaly 
detection on mobile platforms;
    c. Gravimeters: ``Software'' specially designed to correct 
motional influences of gravity meters or gravity gradiometers;
    d. Radar:
    d.1. Air Traffic Control ``software'' application ``programs'' 
hosted on general purpose computers located at Air Traffic Control 
centers and capable of any of the following:
    d.1.a. Processing and displaying more than 150 simultaneous 
``system tracks'';
    d.1.b. Accepting radar target data from more than four primary 
radars; or
    d.1.c. Automatically handing over primary radar target data (if 
not correlated with secondary surveillance radar (SSR) data) from 
the host ATC center to another ATC center;
    d.2. ``Software'' for the design or ``production'' of radomes 
that:
    d.2.a. Are specially designed to protect the ``electronically 
steerable phased array antennae'' controlled by 6A008.e; and
    d.2.b. Limit the average side-lobe level increase by less than 
13 dB for frequencies equal to or higher than 2 GHz.


6D102  ``Software'' specially designed for the ``use'' of equipment 
controlled by 6A002, 6A003, 6A007, 6A102, 6A108 or 6B108.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6D103  ``Software'' that processes post-flight recorded data obtained 
from systems controlled by 6A108.b, enabling determination of vehicle 
position throughout its flight path.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value

    The list of items controlled is contained in the ECCN heading.


6D990  ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of equipment controlled by 6A990, 6A992 or 
6A993.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6D994  ``Software'' specially designed for the ``development'', 
``production'', or ``use'' of equipment controlled by 6A994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:
    The list of items controlled is contained in the ECCN heading.

E. Technology


6E001  ``Technology'' according to the General Technology Note for the 
``development'' of equipment, materials or ``software'' controlled by 
6A (except 6A018 6A990, 6A992 to 6A994), 6B, 6C, or 6D (except 6D990 or 
6D994).

License Requirements

    Reason for Control: NS, MT, NP, RS, CC, AT, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1.                   
 controlled by 6A001 to 6A008, 6B004 to                                 
 6B008, 6C002 to 6C005, or 6D001 to                                     
 6D003.                                                                 
MT applies to ``technology'' for items   MT Column 1.                   
 controlled by 6A002, 6A007, 6A008,                                     
 6A102, 6A107, 6A108, 6B108, 6D001,                                     
 6D002, 6D102 or 6D103 for MT reasons.                                  

[[Page 13016]]
                                                                        
NP applies to ``technology'' for         NP Column 2.                   
 equipment controlled by 6A003, 6A005,                                  
 6A202, 6A203, 6A205, 6A225 or 6A226                                    
 for NP reasons.                                                        
RS applies to ``technology'' for         RS Column 1.                   
 equipment controlled by 6A002 or 6A003                                 
 for RS reasons.                                                        
CC applies to ``technology'' for         CC Column 1.                   
 equipment controlled by 6A002 for CC                                   
 reasons.                                                               
AT applies to entire entry.............  AT Column 1.                   
UN applies to ``technology'' for         Rwanda.                        
 equipment controlled by 6A002 or 6A003                                 
 for UN reasons.                                                        
------------------------------------------------------------------------



License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    The list of items controlled is contained in the ECCN heading.


6E002  ``Technology'' according to the General Technology Note for the 
``production'' of equipment or materials controlled by 6A (except 
6A018, 6A990, 6A992 to 6A994), 6B, or 6C.

License Requirements

    Reason for Control: NS, MT, NP, RS, AT, CC, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for         NS Column 1.                   
 equipment controlled by 6A001 to                                       
 6A008, 6B004 to 6B008, or 6C002 to                                     
 6C005.                                                                 
MT applies to ``technology'' for         MT Column 1.                   
 equipment controlled by 6A002, 6A007,                                  
 6A008, 6A102, 6A107, 6A108, or 6B108                                   
 for MT reasons.                                                        
NP applies to ``technology'' for         NP Column 1.                   
 equipment controlled by 6A003, 6A005,                                  
 6A202, 6A203, 6A205, 6A225 or 6A226                                    
 for NP reasons.                                                        
RS applies to ``technology'' for         RS Column 1.                   
 equipment controlled by 6A002 or 6A003                                 
 for RS reasons.                                                        
CC applies to ``technology'' for         CC Column 1.                   
 equipment controlled by 6A002 for CC                                   
 reasons.                                                               
AT applies to entire entry.............  AT Column 1.                   
UN applies to ``technology'' for         Rwanda.                        
 equipment controlled by 6A002 or 6A003                                 
 for UN reasons.                                                        
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6E003  Other ``technology''.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Optics.
    a.1. Optical surface coating and treatment ``technology'' 
required to achieve uniformity of 99.5% or better for optical 
coatings 500 mm or more in diameter or major axis length and with a 
total loss (absorption and scatter) of less than 5 x 10-3;
    a.2. Optical fabrication technologies, as follows:
    a.2.a. For serially producing optical components at a rate 
exceeding 10 m2 of surface area per year on any single spindle 
and with:
    a.2.a.1. An area exceeding 1 m2; and
    a.2.a.2. A surface figure exceeding lambda/10 rms at the 
designed wavelength;
    a.2.b. Single point diamond turning techniques producing surface 
finish accuracies of better than 10 nm rms on non-planar surfaces 
exceeding 0.5 m2;

    Note: See also ECCN 2E003.d in Category 2, Materials Processing.

    b. Lasers.
    b.1. ``Technology'' for optical filters with a bandwidth equal 
to or less than 10 nm, a field of view (FOV) exceeding 40 deg. and a 
resolution exceeding 0.75 line pairs per milliradian;
    b.2. ``Technology'' ``required'' for the ``development'', 
``production'' or ``use'' of specially designed diagnostic 
instruments or targets in test facilities for Super High Power 
Lasers (SHPL) testing or testing or evaluation of materials 
irradiated by SHPL beams;
    c. Magnetometers. ``Technology'' ``required'' for the 
``development'' or ``production'' of fluxgate ``magnetometers'' or 
fluxgate ``magnetometer'' systems having a noise level:
    c.1. Less than 0.05 nT rms per root Hz at frequencies of less 
than 1 Hz; or
    c.2. 1 x 10-3 nT rms per square root Hz at frequencies of 1 
Hz or more.


6E101  ``Technology'' according to the General Technology Note for the 
``use'' of equipment or ``software'' controlled in 6A002.a.1, a.3 and 
a.4, 6A007.b. and .c, 6A008, 6A102, 6A107, 6A108, 6B108, 6D001, 6D002, 
6D102 or 6D103 for MT reasons.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6E201  ``Technology'' for the ``use'' of equipment controlled by 6A003, 
6A005, 6A202, 6A203, 6A205, 6A225 or 6A226 for NP reasons.

License Requirements

    Reason for Control: NP, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6E990  ``Technology'' for the ``development'', ``production'' or 
``use'' equipment controlled by 6A990, 6A992, or 6A993.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    
[[Page 13017]]

    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


6E994  ``Technology'' for the ``development'', ``production'', or 
``use'' of equipment controlled by 6A994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    The list of items controlled is contained in the ECCN heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes for Category 6

Acoustics

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of equipment controlled by 
6A001.a.1.b.4 for use in civil research or civil exploration work.

Optical Sensors

    Advisory Note 2.1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in the People's Republic of China of image intensifier 
tubes incorporating microchannel-plates, not specially designed for 
cameras controlled by 6A003.
    N.B.: Advisory Note 2.1 does not apply to tubes incorporating a 
gallium arsenide (or similar semiconductor) photocathode.

    Advisory Note 2.2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of reasonable quantities of non-
ruggedized image intensifier tubes controlled by 6A002.a.2.a.3.a for 
bona fide medical use.

Cameras

    Advisory Note 3: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of mechanical framing cameras 
controlled by 6A003.a.2 designed for civil purposes (i.e., non-
nuclear use) with a framing speed of not more than 2 million frames 
per second.

Optics

    Advisory Note 4.1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of the following items for 
installation and use at ground-based bona fide academic or civilian 
astronomical research sites or in international air- or space-based 
bona fide academic or civilian astronomical research projects. For 
the end-use stated in this Advisory Note, the following limits 
apply:
    a. One optical mirror controlled by 6A004.a.1;
    b. Three optical mirrors controlled by 6A004.a.2;
    c. Three optical mirrors controlled by 6A004.a.4;
    d. Three optical mirrors controlled by 6A004.b;
    e. Ten optical filters controlled by 6A004.d.1.a;
    f. One piece of optical control equipment controlled by 
6A004.e.2 for each operational mirror;
    g. Four pieces of optical control equipment controlled by 
6A004.e.4;
    h. Three ``substrate blanks'' controlled by 6C004.a;
    i. A reasonable quantity of the bulk fluoride glass controlled 
by 6C004.e.2;
    j. A reasonable quantity of the materials controlled by 6C004.f.
    N.B.: The quantity limitations listed in Advisory Note 4.1 refer 
to specific projects.

    Advisory Note 4.2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of equipment controlled by 6B004.b 
for stated bona fide civil end-uses.

Lasers

    Advisory Note 5.1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in the People's Republic of China of:
    a. ``Tunable'' pulsed flowing-dye ``lasers'' having all of the 
following, and specially designed components therefor:
    1. An output wavelength less than 800 nm;
    2. A ``pulse duration'' not exceeding 100 ns; and
    3. A peak output power not exceeding 15 MW;
    b. CO2 or CO/CO2 ``lasers'' having an output 
wavelength in the range from 9,000 to 11,000 nm and having a pulsed 
output not exceeding 2 J per pulse and a maximum rated average 
single or multimode output power not exceeding 5 kW; or
    c. CO ``lasers'' having a CW maximum rated single or multimode 
output power not exceeding 10 kW.

    Advisory Note 5.2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of ``lasers'', for civil 
applications, as follows:
    a. Neodymium-doped (other than glass), pulse-excited, ``Q-
switched lasers'' controlled by 6A005.c.2.c.2.b having:
    1. A pulse duration equal to or more than 1 ns; and
    2. A multiple-transverse mode output with a ``peak power'' not 
exceeding 400 MW;
    b. Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.c.2.c.3.b or 6A005.c.2.c.4.b:
    1. Having:
    a. An output wavelength exceeding 1,000 nm, but not exceeding 
1,100 nm; and
    b. An average or CW output power not exceeding 2 kW; and
    2. Being:
    a. Pulse-excited, non-''Q-switched'' multiple-transverse mode; 
or
    b. Continuously excited, multiple-transverse mode;
    c. CO2 ``lasers'' controlled by 6A005.a.4:
    1. Being in CW multiple-transverse mode; and
    2. Having a CW output power not exceeding 15 kW.
    d. CO ``lasers'' having a CW maximum rated single or multimode 
output power not exceeding 10 kW.

    Advisory Note 5.3: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of optical equipment controlled by 
6A005.g when intended for use with ``lasers'' that are not 
controlled or controlled ``lasers'' that have been approved for 
export and reexport.

Radar

    Advisory Note 6: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of Air Traffic Control (ATC) 
``software'' application ``programs'' controlled by 6D03.d.1, 
provided that:
    a. The number of ``system tracks'' does not exceed 700;
    b. The number of primary radar inputs does not exceed 32; and
    c. The ``software'' is further limited to ``object code'' and 
the minimum amount of ``source code'' necessary for installation, 
operation or maintenance.

Category 7--Navigation and Avionics

A. Equipment, Assemblies, and Components


7A001  Accelerometers designed for use in inertial navigation or 
guidance systems and having any of the following characteristics, and 
specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.                   
MT applies to entire entry except        MT Column 1.                   
 accelerometers that are specially                                      
 designed and developed as Measurement                                  
 While Drilling (MWD) sensors for use                                   
 in downhole well service applications.                                 
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 
    a. A ``bias'' ``stability'' of less (better) than 130 micro g 
with respect to a fixed calibration value over a period of one year;

[[Page 13018]]

    b. A ``scale factor'' ``stability'' of less (better) than 130 
ppm with respect to a fixed calibration value over a period of one 
year; or
    c. Specified to function at linear acceleration levels exceeding 
100 g.


7A002  Gyros having any of the following characteristics, and specially 
designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. A ``drift rate'' ``stability'', when measured in a 1 g 
environment over a period of three months and with respect to a 
fixed calibration value, of:
    a.1. Less (better) than 0.1 deg. per hour when specified to 
function at linear acceleration levels below 10 g; or
    a.2. Less (better) than 0.5 deg. per hour when specified to 
function at linear acceleration levels from 10 g to 100 g inclusive; 
or
    b. Specified to function at linear acceleration levels above 100 
g.


7A003  Inertial navigation systems (gimballed and strapdown) and 
inertial equipment for attitude, guidance or control, having any of the 
following characteristics, and specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Inertial navigation systems and inertial 
equipment, and specially designed components therefor specifically 
designed, modified or configured for military use are subject to the 
export licensing authority of the U.S. Department of State, Office 
of Defense Trade Controls. (See 22 CFR part 121, Category VIII.)
    Related Definitions: N/A
    Items:

    a. For ``aircraft'':
    a.1. Navigation error (free inertial) of 0.8 nautical mile per 
hour (50% Circular Error Probable (CEP)) or less (better) subsequent 
to normal alignment;
    a.2. Not certified for use on ``civil aircraft'' by ``civil 
aviation authorities''; or
    a.3. Specified to function at linear acceleration levels 
exceeding 10 g.
    b. Reserved.


7A004  Gyro-astro compasses, and other devices that derive position or 
orientation by means of automatically tracking celestial bodies or 
satellites, with an azimuth accuracy of equal to or less (better) than 
5 seconds of arc; and specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry except        NS Column 2.                   
 specially designed components.                                         
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit:$ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


7A006  Airborne altimeters operating at frequencies other than 4.2 to 
4.4 GHz inclusive, having either of the following characteristics, and 
specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry except        NS Column 2.                   
 specially designed components.                                         
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: See Category 8 of the Commerce Control List 
for controls on automatic pilots for underwater vehicles, and 
Category 6 for controls on radar. Inertial navigation equipment for 
ships and submersibles is subject to the export licensing authority 
of the U.S. Department of State, Office of Defense Trade Controls. 
(See 22 CFR part 121, Category VIII, paragraph (e).)
    Related Definitions: N/A
    Items:

    a. ``Power management''; or
    b. Using phase shift key modulation.


7A101  Accelerometers, other than those specified in entry 7A001, with 
a threshold of 0.05 g or less, or a linearity error within 0.25% of 
full scale output, or both, that are designed for use in inertial 
navigation systems or in guidance systems of all types and specially 
designed components therefor.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry except        MT Column 1.                   
 accelerometers that are specially                                      
 designed and developed as Measurement                                  
 While Drilling (MWD) sensors for use                                   
 in downhole well service applications..                                
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: 7A101 does not specify accelerometers which 
are specially designed and developed as MWD (Measurement While 
Drilling) sensors for use in downhole well service operations.
    Items: The list of items is included in the entry heading.


7A102  All types of gyros, other than those specified in 7A002, usable 
in ``missiles'', with a rated ``drift rate'' ``stability'' of less than 
0.5 deg. (1 sigma or rms) per hour in a 1 g environment and specially 
designed components therefor.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Sec. value
    Related Controls: N/A
    Related Definitions: 1.) Drift rate is defined as the time rate 
of output deviation from the desired output. It consists of random 
and systematic components and is expressed as an equivalent angular 
displacement per unit time with respect

[[Page 13019]]
to inertial space. 2.) Stability is defined as standard deviation (1 
sigma) of the variation of a particular parameter from its 
calibrated value measured under stable temperature conditions. This 
can be expressed as a function of time.
    Items:

    The list of items controlled is contained in the ECCN heading.


7A103  Instrumentation, navigation equipment and systems, other than 
those specified in 7A003, and specially designed components therefor.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: 1.) Items controlled in 7A103.b in the 
corresponding EU list number are not controlled in this CCL entry. 
Those items are subject to the export licensing jurisdiction of the 
U.S. Department of State, Office of Defense Trade Controls (See 22 
CFR part 121, Category VIII.e) 2.) Inertial navigation systems and 
inertial equipment, and specially designed components therefor 
specifically designed, modified or configured for military use are 
subject to the export licensing authority of the U.S. Department of 
State, Office of Defense Trade Controls. (See 22 CFR part 121, 
Category VIII.)
    Related Definitions: N/A
    Items:

    a. Inertial or other equipment using accelerometers or gyros 
specified in 7A001, 7A002, 7A101 or 7A102 and systems incorporating 
such equipment.
    b. Reserved.


7A104  Gyro-astro compasses and other devices, other than those 
specified in 7A004, that derive position or orientation by means of 
automatically tracking celestial bodies or satellites and specially 
designed components therefor.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


7A106  Avionics equipment and components usable in missile systems.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Altimeters for missile systems controlled in 
the corresponding EU list number are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121, Category VIII, paragraph (e).)
    Related Definitions: N/A
    Items:

    a. Terrain contour mapping equipment;
    b. Scene mapping and correlation (both digital and analog) 
equipment;
    c. Doppler navigation radar equipment;
    d. Imaging sensor equipment (active).


7A115  Airborne passive sensors for determining bearing to specific 
electromagnetic sources (direction finding equipment) or terrain 
characteristics.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Airborne passive sensors designed or modified 
for use in missile systems controlled in the corresponding EU list 
number is subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121.)
    Related Definitions: N/A
    Items:

    a. Scene mapping and correlation (both digital and analog) 
equipment;
    b. Passive interferometer equipment; and,
    c. Imaging sensor equipment (passive).


7A994  Other navigation direction finding equipment, airborne 
communication equipment, all aircraft, inertial navigation systems not 
controlled under 7A003 or 7A103, and other avionic equipment, including 
parts and components, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: Global Positioning Satellite receivers having 
the following characteristics are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls (22 CFR part 121, Category XV): (a) Designed for encryption 
or decryption (e.g., Y-code) or GPS precise positioning service 
(PPS) signal; (b) Designed for producing navigation results above 
60,000 feet altitude and at 1,000 knots velocity or greater; (c) 
Specifically designed or modified for use with a null-steering 
antenna or including a null-steering antenna designed to reduce or 
avoid jamming signals; or (d) Designed or modified for use with 
unmanned air vehicle systems capable of delivering at least a 500 kg 
payload to a range of at least 300 km. (GPS receivers designed or 
modified for use with military unmanned air vehicle systems with 
less capability are considered to be specially designed, modified or 
configured for military use are controlled by 22 CFR part 121, 
Category XV, paragraph (c).
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

B. Test, Inspection and Production Equipment


7B001  Test, calibration or alignment equipment specially designed for 
equipment controlled by 7A, except equipment for Maintenance Level I or 
Maintenance Level II.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    
[[Page 13020]]

    Related Controls: N/A
    Related Definition: (1.) Maintenance Level I: The failure of an 
inertial navigation unit is detected on the aircraft by indications 
from the Control and Display Unit (CDU) or by the status message 
from the corresponding sub-system. By following the manufacturer's 
manual, the cause of the failure may be localized at the level of 
the malfunctioning line replaceable unit (LRU). The operator then 
removes the LRU and replaces it with a spare.
    (2.) Maintenance Level II: The defective LRU is sent to the 
maintenance workshop (the manufacturer's or that of the operator 
responsible for level II maintenance). At the maintenance workshop, 
the malfunctioning LRU is tested by various appropriate means to 
verify and localize the defective shop replaceable assembly (SRA) 
module responsible for the failure. This SRA is removed and replaced 
by an operative spare. The defective SRA (or possibly the complete 
LRU) is then shipped to the manufacturer. Maintenance Level II does 
not include the removal of controlled accelerometers or gyro sensors 
from the SRA.
    Items: The list of items controlled is contained in the ECCN 
heading.


7B002  Equipment specially designed to characterize mirrors for ring 
``laser'' gyros.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Scatterometers having a measurement accuracy of 10 ppm or 
less (better); or
    b. Profilometers having a measurement accuracy of 0.5 nm (5 
angstrom) or less (better).


7B003  Equipment specially designed for the ``production'' of equipment 
controlled by 7A, and specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Gyro tuning test stations;
    b. Gyro dynamic balance stations;
    c. Gyro run-in/motor test stations;
    d. Gyro evacuation and fill stations;
    e. Centrifuge fixtures for gyro bearings;
    f. Accelerometer axis align stations.


7B101  Equipment specially designed for the ``production'' of equipment 
controlled by 7A, and specially designed components therefor.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    a. Inertial Measurement Unit (IMU Module) tester;
    b. IMU platform tester;
    c. IMU stable element handling fixture;
    d. IMU platform balance fixture;
    e. Acceleromerter test station.


7B102  Reflectometers specially designed to characterize mirrors, for 
``laser'' gyros, having a measurement accuracy of 50 ppm or less 
(better).

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


7B994  Other equipment for the test, inspection, or ``production'' of 
navigation and avionics equipment.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials

[Reserved]

D. Software


7D001  ``Software'' specially designed or modified for the 
``development'' or ``production'' of equipment controlled by 7A (except 
7A994) or 7B (except 7B994).

License Requirements

    Reason for Control: NS, MT, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``software'' for           NS Column 1.                   
 equipment controlled by 7A001 to                                       
 7A004, 7A006, 7B001, 7B002 or 7B003.                                   
MT applies to entire entry.............  MT Column 1.                   
RS applies to ``software'' for inertial  RS Column 1.                   
 navigation systems inertial equipment,                                 
 and specially designed components                                      
 therefor, for ``civil aircraft''.                                      
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: (1.) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The 
``software'' related to these entries is subject to the export 
licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121.) (2.) ``Software'' for 
inertial navigation systems and inertial equipment, and specially 
designed components therefor, not for use on civil aircraft are 
subject to the export licensing authority of the U.S. Department of 
State, Office of Defense Trade Controls. (See 22

[[Page 13021]]
CFR part 121, Category VIII, paragraph (e).)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


7D002  ``Source code'' for the ``use'' of any inertial navigation 
equipment or Attitude Heading Reference Systems (AHRS) (except 
gimballed AHRS) including inertial equipment not controlled by 7A003 or 
7A004.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: AHRS generally differ from inertial 
navigation systems (INS) in that an AHRS provides altitude heading 
information and normally does not provide the acceleration, velocity 
and position information associated with INS.
    Items:  The list of items controlled is contained in the ECCN 
heading.


7D003  Other ``software''.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: 

    a. ``Software'' specially designed or modified to improve the 
operational performance or reduce the navigational error of systems 
to the levels specified in 7A003 or 7A004;
    b. ``Source code'' for hybrid integrated systems that improves 
the operational performance or reduces the navigational error of 
systems to the level specified in 7A003 by continuously combining 
inertial data with any of the following navigation data:
    b.1. Doppler radar velocity;
    b.2. Global Positioning Satellite (GPS) references or;
    b.3. Terrain data base;
    c. ``Source code'' for integrated avionics or mission systems 
that combine sensor data and employ knowledge-based expert systems;
    d. ``Source code'' for the ``development'' of:
    d.1. Digital flight management systems for flight path 
optimization;
    d.2. Integrated propulsion and flight control systems;
    d.3. Fly-by-wire or fly-by-light control systems;
    d.4. Fault-tolerant or self-reconfiguring ``active flight 
control systems'';
    d.5. Airborne automatic direction finding equipment;
    d.6. Air data systems based on surface static data;
    d.7. Raster-type head-up displays or three dimensional displays.


7D101  ``Software'' specially designed for the ``use'' of equipment 
controlled by 7A001 to 7A004, 7A006, 7A101 to 7A104, 7A106, 7A115, 
7B001, 7B002, 7B003, 7B101, or 7B102.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: (1.) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, or 7B103). The 
``software'' related to these entries is subject to the export 
licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121.) (2.) ``Software'' for 
inertial navigation systems and inertial equipment, and specially 
designed components therefor, not designed for use on civil aircraft 
by civil aviation authorities of a country listed in Country Group 
A:1 is subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121, Category VIII.)
    Related Definitions: N/A
    Items:The list of items controlled is contained in the ECCN 
heading.


7D102  Integration ``software'' for the equipment controlled by 7A003 
or 7A103.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions:

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: (1.) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 7A003.b or 7A103.b). The ``software'' related to these 
entries is subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121.)
    Related Definitions: N/A
    Items:
    The list of items controlled is contained in the ECCN heading.


7D994  ``Software'', n.e.s., for the ``development'', ``production'', 
or ``use'' of navigation, airborne communication and other avionics.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:
    The list of items controlled is contained in the ECCN heading.

E. Technology


7E001  ``Technology'' according to the General Technology Note for the 
``development'' of equipment or ``software'' controlled by 7A (except 
7A994), 7B (except 7B994), or 7D (except 7D994).

License Requirements

    Reason for Control: MT, NS, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology for items     NS Column 1.                   
 controlled by 7A001 to 7A004, 7A006,                                   
 7B001 to 7B003, 7D001 to 7D003.                                        
MT applies to entire entry.............  MT Column 1.                   
RS applies to ``technology'' for         RS Column 1.                   
 inertial navigation systems, inertial                                  
 equipment and specially designed                                       
 components therefor, for civil                                         
 aircraft.                                                              
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: The corresponding EU List number controls 
``technology''

[[Page 13022]]
relating to entries that do not appear on the CCL (e.g., 7A003.b, 
7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The software related to 
these entries is subject to the export licensing authority of the 
U.S. Department of State, Office of Defense Trade Control (see 22 
CFR part 121).
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


7E002  ``Technology'' according to the General Technology Note for the 
``production'' of equipment controlled by 7A (except 7A994) or 7B 
(except 7B994).

License Requirements

    Reason for Control: NS, MT, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``technology'' for         NS Column 1.                   
 equipment controlled by 7A001 to                                       
 7A004, 7A006 or 7B001 to 7B003.                                        
MT applies to entire entry.............  MT Column 1.                   
RS applies to ``technology'' for         RS Column 1.                   
 inertial navigation systems, inertial                                  
 equipment and specially designed                                       
 components therefor, for civil                                         
 aircraft.                                                              
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: The corresponding EU List number controls 
``technology'' relating to entries that do not appear on the CCL 
(e.g., 7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The 
software related to these entries is subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls (see 22 CFR part 121).
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


7E003  ``Technology'' according to the General Technology Note for the 
repair, refurbishing or overhaul of equipment controlled by 7A001 to 
7A004, except for maintenance ``technology'' directly associated with 
calibration, removal or replacement of damaged or unserviceable line 
replaceable units (LRU) and shop replaceable units (SRA) of a ``civil 
aircraft'' as described in Maintenance Level I or Maintenance Level II.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definition: Refer to the Related Definitions for 7B001
    Items: The list of items controlled is contained in the ECCN 
heading.


7E004  Other ``technology.''

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls:
N/A
    Related Definitions: N/A
    Items: 
    a. ``Technology'' for the ``development'' or ``production'' of:
    a.1. Airborne automatic direction finding equipment operating at 
frequencies exceeding 5 MHz;
    a.2. Air data systems based on surface static data only, i.e., 
that dispense with conventional air data probes;
    a.3. Raster-type head-up displays or three dimensional displays 
for ``aircraft'';
    a.4. Inertial navigation systems or gyro-astro compasses 
containing accelerometers or gyros controlled by 7A001 or 7A002;
    b. ``Development'' ``technology'', as follows, for ``active 
flight control systems'' (including fly-by-wire or fly-by-light);
    b.1. Configuration design for interconnecting multiple 
microelectronic processing elements (on-board computers) to achieve 
``real time processing'' for control law implementation;
    b.2. Control law compensation for sensor location or dynamic 
airframe loads, i.e., compensation for sensor vibration environment 
or for variation of sensor location from the center of gravity;
    b.3. Electronic management of data redundancy or systems 
redundancy for fault detection, fault tolerance, fault isolation or 
reconfiguration;

    Note: 7E004.b.3 does not control ``technology'' for the design 
of physical redundancy.

    b.4. Flight controls that permit inflight reconfiguration of 
force and moment controls for real time autonomous air vehicle 
control;
    b.5. Integration of digital flight control, navigation and 
propulsion control data into a digital flight management system for 
flight path optimization, except ``development'' ``technology'' for 
aircraft flight instrument systems integrated solely for VOR, DME, 
ILS or MLS navigation or approaches;
    b.6. Full authority digital flight control or multi sensor 
mission management systems incorporating knowledge-based expert 
systems;

    Note: (For ``technology'' for Full Authority Digital Engine 
Control (FADEC), see 9E003.a.10)

    c. ``Technology'' for the ``development'' of helicopter systems, 
as follows:
    c.1. Multi-axis fly-by-wire or fly-by-light controllers that 
combine the functions of at least two of the following into one 
controlling element:
    c.1.a. Collective controls;
    c.1.b. Cyclic controls;
    c.1.c. Yaw controls;
    c.2. ``Circulation-controlled anti-torque or circulation-
controlled directional control systems'';
    c.3. Rotor blades incorporating ``variable geometry airfoils'' 
for use in systems using individual blade control.


7E101  ``Technology'' according to the General Technology Note for the 
``use'' of equipment or ``software'' specified in 7A001 to 7A004, 
7A006, 7A101 to 7A104, 7A106, 7A115, 7B002, 7B003, 7B101, 7B102, 7D101 
or 7D102 for MT reasons.

License Requirements

    Reason for Control: MT, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
RS applies to ``development'' or         RS Column 1.                   
 ``production'' of inertial navigation                                  
 systems, inertial equipment and                                        
 specially designed components                                          
 therefor, for civil aircraft..                                         
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: 1.) The corresponding EU List number controls 
``technology'' relating to entries that do not appear on the CCL 
(e.g., 7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The 
software related to these entries is subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121.) 2.)
    ``Technology'' for inertial navigation systems and inertial 
equipment, and specially designed components therefor, not for use 
on civil aircraft are subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Controls. (See 
22 CFR part 121, Category VIII.)
    Related Definitions: N/A
    
[[Page 13023]]

    Items: The list of items controlled is contained in the ECCN 
heading.


97E102  ``Technology'' for protection of avionics and electrical 
subsystems against electromagnetic pulse (EMP) and electromagnetic 
interference (EMI) hazards from external sources.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Design ``technology'' for shielding systems;
    b. Design ``technology'' for the configuration of hardened 
electrical circuits and subsystems;
    c. Design ``technology'' for the determination of hardening 
criteria of paragraph a and b above.


7E994  ``Technology'', n.e.s., for the ``development'', ``production'', 
or ``use'' of navigation, airborne communication, and other avionics 
equipment.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number zEAR99.

Category 8--Marine

A. Equipment, Assemblies and Components


8A001  Submersible vehicles or surface vessels.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in Sec. value
    Related Controls: See other Categories, as appropriate, within 
the Commerce Control List for controls of equipment for submersible 
vehicles (e.g., for the control status of marine gas turbine 
engines, see Category 9).
    Related Definitions: N/A
    Items:

    a. Manned, tethered submersible vehicles designed to operate at 
depths exceeding 1,000 m;
    b. Manned, untethered submersible vehicles:
    b.1. Designed to ``operate autonomously'' and having a lifting 
capacity of:
    b.1.a. 10% or more of their weight in air; and
    b.1.b. 15 kN or more;
    b.2. Designed to operate at depths exceeding 1,000 m; or
    b.2.a. Designed to carry a crew of 4 or more;
    b.2.b. Designed to ``operate autonomously'' for 10 hours or 
more;
    b.2.c. Having a ``range'' of 25 nautical miles or more; and
    b.2.d. Having a length of 21 m or less;
    c. Unmanned, tethered submersible vehicles designed to operate 
at depths exceeding 1,000 m:
    c.1. Designed for self-propelled maneuver using propulsion 
motors or thrusters controlled by 8A002.a.2; or
    c.2. Having a fiber optic data link;
    d. Unmanned, untethered submersible vehicles:
    d.1. Designed for deciding a course relative to any geographical 
reference without real-time human assistance;
    d.2. Having an acoustic data or command link; or
    d.3. Having a fiber optic data or command link exceeding 1,000 
m;
    e. Ocean salvage systems with a lifting capacity exceeding 5 MN 
for salvaging objects from depths exceeding 250 m and having either 
of the following:
    e.1. Dynamic positioning systems capable of position keeping 
within 20 m of a given point provided by the navigation system; or
    e.2. Seafloor navigation and navigation integration systems for 
depths exceeding 1,000 m with positioning accuracies to within 10 m 
of a predetermined point;
    f. Surface-effect vehicles (fully skirted variety) with a 
maximum design speed, fully loaded, exceeding 30 knots in a 
significant wave height of 1.25 m (Sea State 3) or more, a cushion 
pressure exceeding 3,830 Pa, and a light-ship-to-full-load 
displacement ratio of less than 0.70;
    g. Surface-effect vehicles (rigid sidewalls) with a maximum 
design speed, fully loaded, exceeding 40 knots in a significant wave 
height of 3.25 m (Sea State 5) or more;
    h. Hydrofoil vessels with active systems for automatically 
controlling foil systems, with a maximum design speed, fully loaded, 
of 40 knots or more in a significant wave height of 3.25 m (Sea 
State 5) or more;
    i. Small waterplane area vessels with:
    i.1. A full load displacement exceeding 500 tons with a maximum 
design speed, fully loaded, exceeding 35 knots in a significant wave 
height of 3.25 m (Sea State 5) or more; or
    i.2. A full load displacement exceeding 1,500 tons with a 
maximum design speed, fully loaded, exceeding 25 knots in a 
significant wave height of 4 m (Sea State 6) or more.

    Technical Note: A small waterplane area vessel is defined by the 
following formula: waterplane area at an operational design draft 
less than 2  x  (displaced volume at the operational design 
draft)\2/3\.


8A002  Systems or equipment.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: Yes for 8A002.i.2 as described in Advisory Note to Category 
8 and 8A002.e.2
    CIV: Yes for 8A002.i.2 as described in Advisory Note to Category 
8 and 8A002.e.2

List of Items Controlled

    Unit: Equipment in number
    Related Controls: See other Categories, as appropriate, within 
the Commerce Control List for controls of equipment for submersible 
vehicles (e.g., for underwater communications systems, see Category 
5).
    Related Definitions: N/A
    Items:

    a. Systems or equipment, specially designed or modified for 
submersible vehicles, designed to operate at depths exceeding 1,000 
m, as follows:
    a.1. Pressure housings or pressure hulls with a maximum inside 
chamber diameter exceeding 1.5 m;
    a.2. Direct current propulsion motors or thrusters;
    a.3. Umbilical cables, and connectors therefor, using optical 
fiber and having synthetic strength members;
    b. Systems specially designed or modified for the automated 
control of the motion of equipment for submersible vehicles 
controlled by 8A001 using navigation data and having closed loop 
servo-controls to:
    b.1. Enable a vehicle to move within 10 m of a predetermined 
point in the water column;
    b.2. Maintain the position of the vehicle within 10 m of a 
predetermined point in the water column; or
    b.3. Maintain the position of the vehicle within 10 m while 
following a cable on or under the seabed;
    c. Fiber optic hull penetrators or connectors;
    
[[Page 13024]]

    d. Underwater vision systems, as follows:
    d.1.a. Television systems (comprising camera, lights, monitoring 
and signal transmission equipment) having a limiting resolution when 
measured in air of more than 500 lines and specially designed or 
modified for remote operation with a submersible vehicle; or
    d.1.b. Underwater television cameras having a limiting 
resolution when measured in air of more than 700 lines;

    Technical Note: Limiting resolution in television is a measure 
of horizontal resolution usually expressed in terms of the maximum 
number of lines per picture height discriminated on a test chart, 
using IEEE Standard 208/1960 or any equivalent standard.

    d.2. Systems, specially designed or modified for remote 
operation with an underwater vehicle, employing techniques to 
minimize the effects of back scatter, including range-gated 
illuminators or ``laser'' systems;
    d.3. Low light level television cameras specially designed or 
modified for underwater use containing:
    d.3.a. Image intensifier tubes controlled by 6A002.a.2.a; and
    d.3.b. More than 150,000 ``active pixels'' per solid state area 
array;
    e. Photographic still cameras specially designed or modified for 
underwater use, having a film format of 35 mm or larger, and:
    e.1. Annotating the film with data provided by a source external 
to the camera;
    e.2. Having autofocussing or remote focussing specially designed 
for underwater use;
    e.3. Having automatic back focal distance correction; or
    e.4. Having automatic compensation control specially designed to 
permit an underwater camera housing to be usable at depths exceeding 
1,000 m;
    f. Electronic imaging systems, specially designed or modified 
for underwater use, capable of storing digitally more than 50 
exposed images;
    g. Light systems, as follows, specially designed or modified for 
underwater use:
    g.1. Stroboscopic light systems capable of a light output energy 
of more than 300 J per flash;
    g.2. Argon arc light systems specially designed for use below 
1,000 m;
    h. ``Robots'' specially designed for underwater use, controlled 
by using a dedicated stored program computer, and:
    h.1. Having systems that control the ``robot'' using information 
from sensors that measure force or torque applied to an external 
object, distance to an external object, or tactile sense between the 
``robot'' and an external object; or
    h.2. Capable of exerting a force of 250 N or more or a torque of 
250 Nm or more and using titanium based alloys or ``fibrous and 
filamentary'' ``composite'' materials in their structural members;
    i. Remotely controlled articulated manipulators specially 
designed or modified for use with submersible vehicles and having 
either of the following characteristics:
    i.1. Having systems that control the manipulator using the 
information from sensors that measure the torque or force applied to 
an external object, or tactile sense between the manipulator and an 
external object; or
    i.2. Controlled by proportional master-slave techniques or by 
using a dedicated stored program computer, and having 5 degrees of 
freedom of movement or greater;

    Note: Only functions having proportional control using 
positional feedback or by using a dedicated stored program computer 
are counted when determining the number of degrees of freedom of 
movement.

    j. Air-independent power systems, as follows, specially designed 
for underwater use:
    j.1. Brayton, Stirling or Rankine cycle engine air independent 
power systems having any of the following:
    j.1.a. Chemical scrubber or absorber systems specially designed 
to remove carbon dioxide, carbon monoxide and particulates from 
recirculated engine exhaust;
    j.1.b. Systems specially designed to use a monoatomic gas;
    j.1.c. Devices or enclosures specially designed for underwater 
noise reduction in frequencies below 10 kHz, or special mounting 
devices for shock mitigation; or
    j.1.d. Systems specially designed:
    j.1.d.1. To pressurize the products of reaction or for fuel 
reformation;
    j.1.d.2. To store the products of the reaction; and
    j.1.d.3. To discharge the products of the reaction against a 
pressure of 100 kPa or more;
    j.2. Diesel cycle engine air independent systems, having all of 
the following:
    j.2.a. Chemical scrubber or absorber systems specially designed 
to remove carbon dioxide, carbon monoxide and particulates from 
recirculated engine exhaust;
    j.2.b. Systems specially designed to use a monoatomic gas;
    j.2.c. Devices or enclosures specially designed for underwater 
noise reduction in frequencies below 10 kHz or special mounting 
devices for shock mitigation; and
    j.2.d. Specially designed exhaust systems that do not exhaust 
continuously the products of combustion;
    j.3. Fuel cell air independent power systems with an output 
exceeding 2 kW having either of the following:
    j.3.a. Devices or enclosures specially designed for underwater 
noise reduction in frequencies below 10 kHz or special mounting 
devices for shock mitigation; or
    j.3.b. Systems specially designed:
    j.3.b.1. To pressurize the products of reaction or for fuel 
reformation;
    j.3.b.2. To store the products of the reaction; and
    j.3.b.3. To discharge the products of the reaction against a 
pressure of 100 kPa or more;
    k. Skirts, seals and fingers, as follows:
    k.1. Designed for cushion pressures of 3,830 Pa or more, 
operating in a significant wave height of 1.25 m (Sea State 3) or 
more and specially designed for surface effect vehicles (fully 
skirted variety) controlled by 8A001.f;
    k.2. Designed for cushion pressures of 6,224 Pa or more, 
operating in a significant wave height of 3.25 m (Sea State 5) or 
more and specially designed for surface effect vehicles (rigid 
sidewalls) controlled by 8A001.g;
    l. Lift fans rated at more than 400 kW specially designed for 
surface effect vehicles controlled by 8A001.f or 8A001.g;
    m. Fully submerged subcavitating or supercavitating hydrofoils 
specially designed for vessels controlled by 8A001.h;
    n. Active systems specially designed or modified to control 
automatically the sea-induced motion of vehicles or vessels 
controlled by 8A001.f, .g, .h or .i;
    o.1. Water-screw propeller or power transmission systems, as 
follows, specially designed for surface effect vehicles (fully 
skirted or rigid sidewall variety), hydrofoils or small waterplane 
area vessels controlled by 8A001.f, .g, .h or .i:
    o.1.a. Supercavitating, super-ventilated, partially-submerged or 
surface piercing propellers rated at more than 7.5 MW;
    o.1.b. Contrarotating propeller systems rated at more than 15 
MW;
    o.1.c. Systems employing pre-swirl or post-swirl techniques for 
smoothing the flow into a propeller;
    o.1.d. Light-weight, high capacity (K factor exceeding 300) 
reduction gearing;
    o.1.e. Power transmission shaft systems, incorporating 
``composite'' material components, capable of transmitting more than 
1 MW;
    o.2. Water-screw propeller, power generation or transmission 
systems for use on vessels.
    o.2.a. Controllable-pitch propellers and hub assemblies rated at 
more than 30 MW;
    o.2.b. Internally liquid-cooled electric propulsion engines with 
a power output exceeding 2.5 MW;
    o.2.c. ``Superconductive'' propulsion engines, or permanent 
magnet electric propulsion engines, with a power output exceeding 
0.1 MW;
    o.2.d. Power transmission shaft systems, incorporating 
``composite'' material components, capable of transmitting more than 
2 MW;
    o.2.e. Ventilated or base-ventilated propeller systems rated at 
more than 2.5 MW;
    o.3. Noise reduction systems for use on vessels of 1,000 tons 
displacement or more, as follows:
    o.3.a. Noise reduction systems that attenuate at frequencies 
below 500 Hz and consist of compound acoustic mounts for the 
acoustic isolation of diesel engines, diesel generator sets, gas 
turbines, gas turbine generator sets, propulsion motors or 
propulsion reduction gears, specially designed for sound or 
vibration isolation, having an intermediate mass exceeding 30% of 
the equipment to be mounted;
    o.3.b. Active noise reduction or cancellation systems, or 
magnetic bearings, specially designed for power transmission 
systems, and incorporating electronic control systems capable of 
actively reducing equipment vibration by the generation of anti-
noise or anti-vibration signals directly to the source;
    p. Pumpjet propulsion systems with a power output exceeding 2.5 
MW using divergent nozzle and flow conditioning vane

[[Page 13025]]
techniques to improve propulsive efficiency or reduce propulsion-
generated underwater-radiated noise.


8A018  Items on the International Munitions List.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Closed and semi-closed circuit (rebreathing) apparatus for 
diving and underwater swimming, and specially designed components 
for use in the conversion of open-circuit apparatus to military use;
    b. Naval equipment, as follows:
    b.1. Diesel engines of 1,500 hp and over with rotary speed of 
700 rpm or over specially designed for submarines;
    b.2. Electric motors specially designed for submarines, i.e., 
over 1,000 hp, quick reversing type, liquid cooled, and totally 
enclosed;
    b.3. Nonmagnetic diesel engines, 50 hp and over, specially 
designed for military purposes. (An engine shall be presumed to be 
specially designed for military purposes if it has nonmagnetic parts 
other than crankcase, block, head, pistons, covers, end plates, 
valve facings, gaskets, and fuel, lubrication and other supply 
lines, or its nonmagnetic content exceeds 75 percent of total 
weight.);
    b.4. Marine boilers designed to have any of the following 
characteristics:
    b.4.a. Heat release rate (at maximum rating) equal to or in 
excess of 190,000 BTU per hour per cubic foot of furnace volume; or
    b.4.b. Ratio of steam generated in pounds per hour (at maximum 
rating) to the dry weight of the boiler in pounds equal to or in 
excess of 0.83;
    b.5. Submarine and torpedo nets; and
    b.6. Components, parts, accessories, and attachments for the 
above.


8A992  Other underwater camera equipment, n.e.s., other submersible 
systems, n.e.s.; and specially designed parts therefor.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


8A993  Self-contained underwater breathing apparatus (scuba gear) and 
related equipment.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Self-contained underwater breathing apparatus (scuba gear);
    b. Pressure regulators, air cylinders, hoses, valves and 
backpacks for the apparatus described in paragraph 8A993.a;
    c. Life jackets, inflation cartridges, compasses, wetsuits, 
masks, fins, weight belts, and dive computers;
    d. Underwater lights and propulsion equipment;
    e. Air compressors and filtration systems specially designed for 
filling air cylinders; and
    f. Other self-contained underwater breathing apparatus (scuba 
gear) and related equipment, n.e.s.


8A994  Boats, n.e.s., including inflatable boats, marine engines (both 
inboard and outboard) and submarine engines, n.e.s; and specially 
designed parts therefor, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 2.                 
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

B. Test, Inspection and Production Equipment


8B001  Water tunnels, having a background noise of less than 100 dB 
(reference 1 microPascal, 1 Hz) in the frequency range from 0 to 500 
Hz, designed for measuring acoustic fields generated by a hydro-flow 
around propulsion system models.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials


8C001:  Syntactic foam for underwater use.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definition: Syntactic foam consists of hollow spheres of 
plastic or glass embedded in a resin matrix.
    Items:

    a. Designed for marine depths exceeding 1,000 m; and
    b. With a density less than 561 kg/m3.

D. Software


8D001  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment or materials 
controlled by 8A (except 8A018, 8A992 to 8A994), 8B, or 8C.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    
[[Page 13026]]

    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


8D002  Specific ``software'' specially designed or modified for the 
``development'', ``production'', repair, overhaul or refurbishing (re-
machining) of propellers specially designed for underwater noise 
reduction.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


8D992  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled by 
8A992.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


8D993  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled by 
8A993 and 8A994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 2.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

E. Technology


8E001  ``Technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment or materials controlled 
by 8A (except 8A018, 8A992 to 8A994), 8B, or 8C.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


8E002  Other technology.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Technology'' for the ``development'', ``production'', 
repair, overhaul or refurbishing (re-machining) of propellers 
specially designed for underwater noise reduction;
    b. ``Technology'' for the overhaul or refurbishing of equipment 
controlled by 8A001, 8A002.b, .j, .o, or .p.


8E992  ``Technology'' for the ``development'', ``production'' or 
``use'' of equipment controlled by 8A992.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


8E993  ``Technology'' for the ``development'', ``production'' or 
``use'' of items controlled by 8A993 and 8A994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 2.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes for Category 8

    Advisory Note: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of manipulators, for civil end-uses 
(e.g., underwater oil, gas or mining operations), that are 
controlled by 8A002.i.2 and have 5 degrees of freedom of movement.

Category 9--Propulsion Systems Space Vehicles and Related Equipment

A. Equipment, Assemblies and Components


9A001  Aero gas turbine engines incorporating any of the technologies 
controlled by 9E003.a and described in this entry.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 2.                 
MT applies to only to those engines that   MT Column 1.                 
 meet the characteristics listed in 9A101.                              
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Not certified for the specific ``civil aircraft'' for which 
they are intended;


[[Page 13027]]

    Note: For the purpose of the ``civil aircraft'' certification 
process, a limited number of civil certified engines, assemblies or 
components may be authorized for export and reexport to Country 
Group D:1. This limited number is defined as the minimum required 
(up to 16, including spares) for civil certification.

    b. Not certified for civil use by the civil aviation authorities 
in a country listed in Country Group A:1;
    c. Designed to cruise at speeds exceeding Mach 1.2 for more than 
thirty minutes;


9A002  Marine gas turbine engines with an ISO standard continuous power 
rating of 24,245 kW or more and a specific fuel consumption of less 
than 0.219 kg/kWh at any point in the power range from 35 to 100%, and 
specially designed assemblies and components therefor.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: Yes, only as described in Advisory Note 1 to Category 9
    CIV: Yes, only as described in Advisory Note 1 to Category 9

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definition: The term marine gas turbine engines includes 
those industrial, or aero-derivative, gas turbine engines adapted 
for marine propulsion or shipboard power generation.
    Items: The list of items controlled is contained in the ECCN 
heading.


9A003  Specially designed assemblies and components, incorporating any 
of the technologies controlled by 9E003.a, for gas turbine engine 
propulsion systems.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls:
    Related Definition: This entry does not control multiple domed 
combusters operating at average burner outlet temperatures equal to 
or less than 1,813 K (1,540  deg.C).
    Items:

    a. Assemblies and components specially designed for those gas 
turbine engine propulsion systems controlled by 9A001; or
    b. Whose design or production origins are either countries 
listed in Country Group D:1 or unknown to the manufacturer;


9A004  ``Spacecraft'', (not including their payloads) and specially 
designed components therefore.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; components, parts and accessories in 
$ value
    Related Controls: (1.) The corresponding EU list number controls 
space launch vehicles (not including their payloads) and other 
``spacecraft'' (not identified in this CCL entry). These items are 
subject to the export licensing authority of the U.S. Departement of 
State, Office of Defense Trade Controls (See 22 CFR part 121, 
Category XV). (2.) For the control status of products contained in 
``spacecraft'' payloads, see the appropriate categories. (3.) All 
communication satellites identified in paragraphs a.1 through a.9 of 
this entry and specially designed components, parts, accessories, 
attachments, associated equipment, and ground support equipment 
therefor, are subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121, Category XV.)
    Related Definition: (1.) Transferring registration or 
operational control to any foreign person of any satellite 
controlled by this entry must be authorized on a license issued by 
the Bureau of Export Administration. This requirement applies 
whether the satellite is physically located in the United States or 
abroad. (2.) If you are requesting a license from BXA for items 
other than those specified in 9A004, you must provide a statement 
from the U.S. Department of State, Office of Defense Trade Controls, 
verifying that the item intended for export or reexport is under the 
export licensing jurisdiction of the U.S. Department of Commerce.
    Items:

    a. Commercial Communication Satellites, except those with the 
following characteristics:
    a.1. Anti-jam capability: Antennas and/or antenna systems with 
the ability to respond to incoming interference by adaptively 
reducing antenna gain in the direction of the interference;
    a.2. Antennas:
    a.2.a. With aperture (overall dimension of the radiating 
portions(s) of the antennas) greater than 30 feet; or
    a.2.b. With all sidelobes less than or equal to -35db; or
    a.2.c. Designed, modified or configured to provide coverage area 
on the surface of the earth less than 200 nm in diameter, where 
``coverage area'' is defined as that area on the surface of the 
earth that is illuminated by the main beam width of the antenna 
(which is the angular distance between half power points of the 
beam);
    a.3. Designed, modified or configured for intersatellite data 
relay links that do not involve a ground relay terminal (``cross-
links'');
    a.4. Spaceborne baseband processing equipment that uses any 
technique other than frequency translation which can be changed on a 
channel by channel basis among previously assigned fixed frequencies 
several times a day;
    a.5. Employing any of the cryptographic items subject to the 
export licensing authority of the U.S. Department of State, Office 
of Defense Trade Controls under 22 CFR part 121, Category XIII, 
paragraph (b);
    a.6. Employing radiation-hardened devices controlled elsewhere 
in 22 CFR 121.1 that are not ``embedded'' in the satellite in such a 
way as to deny physical access. (For purposes of this subparagraph, 
``embedded'' means that the device cannot feasibly either be removed 
from the satellite or used for other purposes);
    a.7. Having propulsion systems that permit acceleration of the 
satellite on-orbit (i.e., after mission orbit injection) at rates 
greater than 0.1 g;
    a.8. Having attitude control and determination systems designed 
to provide spacecraft pointing determination and control better than 
0.02 degrees per axis; or
    a.9. Having orbit transfer engines (``kick motors'') that remain 
permanently with the spacecraft and are capable of being restarted 
after achievement of mission orbit and providing acceleration 
greater than 1 g. (Orbit transfer engines that are not designed, 
built, and shipped as an integral part of the satellite subject to 
the export licensing authority of the U.S. Department of State, 
Office of Defense Trade Controls under 22 CFR part 121, Category 
IV.)
    b. Other ``spacecraft'' not subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls under 22 CFR part 121, Category XV.)

    Note: 9A004.b includes the international space station being 
developed, launched and operated under the supervision of the U.S. 
National Aeronautics and Space Administration.


9A018  Equipment on the International Munitions List.

License Requirements

    Reason for Control: NS, RS, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.                 
RS applies to 9A018.a and b..............  RS Column 2.                 

[[Page 13028]]
                                                                        
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------



License Exceptions

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: (a) Parachute systems designed for use in 
dropping military equipment, braking military aircraft, slowing 
spacecraft descent, or retarding weapons delivery; AND (b)Instrument 
flight trainers for combat simulation are subject to the export 
licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121, Category VIII.)
    Related Definition: This entry controls parachute systems 
designed for use in dropping personnel only.
    Items:

    a. Military trainer aircraft bearing ``T'' designations:
    a.1. Using reciprocating engines; or
    a.2. Turbo prop engines with less than 600 horse power (h.p.);
    a.3. T-37 model jet trainer aircraft; and
    a.4. Specially designed component parts.
    b. Vehicles specially designed or modified for military 
purposes. (See part 770 of the EAR, Interpretation 8)
    c. Pressure refuelers, pressure refueling equipment, and 
equipment specially designed to facilitate operations in confined 
areas; and ground equipment, n.e.s, developed specially for military 
aircraft and helicopters, and specially designed parts and 
accessories, n.e.s.;
    d. Pressurized breathing equipment specially designed for use in 
military aircraft and helicopters;
    e. Military parachutes and complete canopies, harnesses, and 
platforms and electronic release mechanisms therefor, except such 
types as are in normal sporting use;
    f. Military instrument flight trainers, except for combat 
simulation; and components, parts, attachments and accessories 
specially designed for such equipment.


9A101  Lightweight turbojet and turbofan engines (including 
turbocompound engines) usable in ``missiles'', other than those 
specified in 9A001, having both the following characteristics.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in Sec. value
    Related Controls: (1.) Items controlled in 9A101.b in the 
corresponding EU List number are not controlled in this CCL entry. 
Those items are subject to the export licensing jurisdiction of the 
U.S. Department of State, Office of Defense Trade Controls (See 22 
CFR part 121, Category IV, paragraph (h) and Category VIII). (2.) 
Engines designed or modified for missiles (except engines for non-
military unmanned air vehicles [UAVs] or remotely piloted vehicles 
[RPVs]), regardless of thrust or specific fuel consumption, are 
subject to the export licensing authority of the U.S. Department of 
State, Office of Defense Trade Controls. (See 22 CFR part 121, 
Category VIII.)
    Related Definitions: N/A
    Items:

    a. Maximum thrust value greater than 1000 N (achieved un-
installed) excluding civil certified engines with a maximum thrust 
value greater than 8,890 N (achieved un-installed); and
    b. Reserved.
    c. Specific fuel consumption of 0.13kg/N/hr or less (at sea 
level static and standard conditions).


9A106  Systems or components, other than those controlled by 9A006, 
usable in ``missiles,'' as follows, specially designed for liquid 
rocket propulsion systems.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment and components in number; parts and accessories 
in $ value
    Related Controls: Items controlled in 9A106.a, .b, and .c in the 
corresponding EU List number are not controlled in this CCL entry. 
Those items are subject to the export licensing jurisdiction of the 
U.S. Department of State, Office of Defense Trade Controls (See 22 
CFR part 121, Category IV, paragraphs (f) and (h).)
    Related Definitions: Only the following servo valves and pumps 
are controlled by this entry: (1.) Servo valves designed for flow 
rates of 24 liters per minute or greater, at an absolute pressure of 
7 MPa (1,000 psi) or greater, have an actuator response time of less 
than 100 ms; (2.) Pumps, for liquid propellants, with shaft speeds 
equal to or greater than 8,000 rpm or with discharge pressures equal 
to or greater than 7 MPa (1,000 psi).
    Items:

    a. Reserved.
    b. Reserved.
    c. Reserved.
    d. Liquid or slurry propellant (including oxidizers) control 
systems designed or modified to operate in vibration environments of 
more than 10 g RMS between 20 Hz and 2,000 Hz, and specially 
designed components therefor.


9A110  Composite structures, laminates, and manufactures thereof, and 
resin impregnated fiber prepregs and metal coated fiber preforms, 
therefor, made either with organic matrix or metal matrix utilizing 
fibrous or filamentary reinforcements having a specific tensile 
strength greater than 7.62 x 10\4\ m (3 x 10\6\ inches) and a specific 
modulus greater than 3.18 x 10\6\ m (1.25 x 10\8\ inches).

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $1500
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Kilograms
    Related Controls: The corresponding EU List number includes 
references to items that are not contained on the CCL (e.g., 9A005, 
9A007, 9A010, 9A104, 9A105, 9A106.a, .b, and .c, 9A107, 9A108, 9A116 
to 9A119). These items are not cross-referenced in the CCL since 
they are subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls (see 22 CFR 
part 121) and do not appear on the CCL.
    Related Definition: The only resin impregnated fiber prepregs 
specified in entry 9A110 are those using resins with a glass 
transition temperature (Tg), after cure, exceeding 418 K 
(145 deg. C) as determined by ASTM D4065 or national equivalents.
    Items: The list of items controlled is contained in the ECCN 
heading.


9A115  Launch support equipment designed or modified for systems 
controlled by 9A004 or 9A104.

License Requirements

    Reason for Control: MT, UN, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
UN applies to entire entry.............  Rwanda.                        
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A
    
[[Page 13029]]


List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: (1.) Items controlled in 9A115.a in the 
corresponding EU List number are not controlled in this CCL entry. 
Those items are subject to the export licensing jurisdiction of the 
U.S. Department of State, Office of Defense Trade Controls (see 22 
CFR part 121, Category VIII, paragraph (e)). (2.) This entry 
contains references to EU list numbers that are not contained on the 
CCL.
    Related Definitions: N/A
    Items:

    a. Reserved.
    b. Vehicles for transport, handling, control, activation or 
launching.


9A190  Non-military unmanned air vehicle systems (UAVs) and remotely 
piloted vehicles (RPVs) that are capable of a maximum range of at least 
300 kilometers (km), regardless of payload.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.                   
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9A980  Nonmilitary mobile crime science laboratories; and parts and 
accessories, n.e.s.

License Requirements

    Reason for Control: CC

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
CC applies to entire entry.............  CC Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9A990  Diesel engines, n.e.s., for trucks, tractors, and automotive 
applications of continuous brake horsepower of 400 BHP (298 kW) or 
greater (performance based on SAE J1349 standard conditions of 100 kPa 
and 25 deg.); pressurized aircraft breathing equipment, n.e.s.; and 
specially designed parts therefor, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 2.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9A991  ``Aircraft'' and certain gas turbine engines, n.e.s.

License Requirements

    Reason for Control: AT, UN

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
UN applies to 9A991.a..................  Rwanda.                        
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

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

    a. Military aircraft, demilitarized (not specifically equipped 
or modified for military operation), as follows:
    a.1. Cargo, ``C-45 through C-118'' inclusive, and ``C-121,''
    a.2. Trainers, bearing a ``T'' designation and using piston 
engines,
    a.3. Utility, bearing a ``U'' designation and using piston 
engines,
    a.4. Liaison, bearing an ``L'' designation, and
    a.5. Observation, bearing an ``O'' designation and using piston 
engines;
    b. Other nonmilitary aircraft; and

    Note: Specify make and model of aircraft and type of avionic 
equipment on aircraft.

    c. Aero gas turbine engines not controlled by 9A001 or 9A101, 
and specially designed parts therefor.

    Note: 9A991.c does not control aero gas turbine engines that are 
destined for use in civil ``aircraft'' and that have been in use in 
bona fide civil ``aircraft'' for more than eight years. (See 9A994.)


9A992  Off highway wheel tractors of carriage capacity 9mt (20,000 lbs) 
or more; and parts and accessories, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in Sec. value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9A993  On-Highway tractors, with single or tandem rear axles rated for 
9mt per axel (20,000 lbs.) or greater and specially designed parts.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definition: This entry controls highway tractors only. 
It does not control solid chassis vehicles such as dump trucks, 
construction equipment, or panel/van type trucks.
    Items: The list of items controlled is contained in the ECCN 
heading.


9A994  Aircraft parts and components, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 13030]]


B. Test, Inspection and Production Equipment


9B001  Specially designed equipment, tooling or fixtures, as follows, 
for manufacturing or measuring gas turbine blades, vanes or tip shroud 
castings.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $5000
    GBS: Yes, for 9B001.a, .b, .f and .h
    CIV: Yes, for 9B001.a, .b, .f and .h

List of Items Controlled

    Unit:  $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Automated equipment using non-mechanical methods for 
measuring airfoil wall thickness;
    b. Tooling, fixtures or measuring equipment for the ``laser'', 
water jet or ECM/EDM hole drilling processes controlled by 9E003.c;
    c. Directional solidification or single crystal casting 
equipment;
    d. Ceramic cores or shells;
    e. Ceramic core manufacturing equipment or tools;
    f. Ceramic core leaching equipment;
    g. Ceramic shell wax pattern preparation equipment;
    h. Ceramic shell burn out or firing equipment.


9B002  On-line (real time) control systems, instrumentation (including 
sensors) or automated data acquisition and processing equipment, 
specially designed for the development of gas turbine engines, 
assemblies or components incorporating technologies controlled by 
9E003.a.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B003  Equipment specially designed for the production or test of gas 
turbine brush seals designed to operate at tip speeds exceeding 335 m/
s, and specially designed parts or accessories.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B004  Tools, dies or fixtures for the solid state joining of gas 
turbine ``superalloy'' or titanium components.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B005  On-line (real-time) control systems, instrumentation (including 
sensors) or automated data acquisition and processing equipment, 
specially designed for use with wind tunnels or devices.

License Requirements

    Reason for Control: NS, MT, AT

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

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Wind tunnels designed for speeds of Mach 1.2 or more, except 
those specially designed for educational purposes and having a test 
section size (measured laterally) of less than 250 mm;

    Technical Note: Test section size in 9B005.a means: the diameter 
of the circle, or the side of the square, or the longest side of the 
rectangle at the largest test section location.

    b. Devices for simulating flow-environments at speeds exceeding 
Mach 5, including hot-shot tunnels, plasma arc tunnels, shock tubes, 
shock tunnels, gas tunnels and light gas guns;
    c. Wind tunnels or devices, other than two-dimensional sections, 
capable of simulating Reynolds number flows exceeding 25 x 106.


9B006  Specially designed acoustic vibration test equipment capable of 
producing sound pressure levels of 160 dB or more, (reference to 20 
micropascals) with a rated output of 4 kW or more at a test cell 
temperature exceeding 1273 K (1000 deg.C), and specially designed 
transducers, strain gauges, accelerometers, thermocouples or quartz 
heaters therefor.

License Requirements:

    Reason for Control: NS, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 2.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions:

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B007  Equipment specially designed for inspecting the integrity of 
rocket motors using non-destructive test (NDT) techniques other than 
planar X-ray or basic physical or chemical analysis.

License Requirements:

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 2.                 
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 13031]]



9B008  Transducers specially designed for the direct measurement of the 
wall skin friction of the test flow with a stagnation temperature 
exceeding 833 K (560 deg. C).

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 2.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B009  Tooling specially designed for producing turbine engine powder 
metallurgy rotor components capable of operating at stress levels of 
60% of ultimate tensile strength (UTS) or more and metal temperatures 
of 873 K (600 deg. C) or more.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
                Control(s)                         Country chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 2.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B105  Wind tunnels for speeds of Mach 0.9 or more usable for 
``missiles'' and their subsystems.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B106  Environmental chambers and anechoic chambers.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. Environmental chambers capable of simulating the following 
flight conditions:
    a.1. Vibration environments of 10 g rms or greater between 20 Hz 
and 2,000 Hz and imparting forces of 50 kN or greater; and
    a.2. Altitudes of 15,000 m or greater; or
    a.3. Temperature of at least 223 K (-50  deg.C) to 398 K (+ 125 
deg.C)
    b. Anechoic chambers capable of simulating the following flight 
conditions:
    b.1. Acoustic environments at an overall sound pressure level of 
140 dB or greater (referenced to 20 microPa) or with a rated power 
output of 4 kW or greater; and
    b.2. Altitudes of 15,000 m or greater; or
    b.3. Temperature of at least 223 K (-50  deg.C) to 398 K (+125 
deg.C).


9B115  Specially designed ``production equipment'' for the systems, 
sub-systems, and components controlled by 9A004 to 9A009, 9A011, 9A101, 
9A104 to 9A109, 9A111, 9A116 to 9A119.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: This entry contains references to EU list 
numbers that are not contained on the CCL. Though the items 
controlled by 9A004 to 9A009, 9A011, 9A101, 9A104 to 9A109, 9A111, 
9A116 to 9A119 are not subject to the export licensing authority of 
BXA, the ``production equipment'' related to these items are 
controlled in this entry on the CCL.
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B116  Specially designed ``production facilities'' for the systems, 
sub-systems, and components controlled by 9A004 to 9A009, 9A011, 9A101, 
9A104 to 9A109, 9A111, 9A116 to 9A119.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: This entry contains references to EU list 
numbers that are not contained on the CCL. Though the items 
controlled by 9A004 to 9A009, 9A011, 9A101, 9A104 to 9A109, 9A111, 
9A116 to 9A119 are not subject to the export licensing authority of 
BXA, the ``production facilities'' related to these items are 
controlled in this entry on the CCL.
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9B117  Test benches and test stands for solid or liquid propellant 
rockets or rocket motors, having either of the following 
characteristics.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: $5000
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. The capacity to handle more than 90 kN (20,000 lbs.) of 
thrust; or
    b. Capable of simultaneously measuring the three axial thrust 
components.


9B994  Vibration test equipment and specially designed parts and 
components, n.e.s.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    LVS: N/A
    
[[Page 13032]]

    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

C. Materials

[Reserved]

D. ``Software''


9D001  ``Software'' ``required'' for the ``development'' of equipment 
or ``technology'' controlled by 9A (except 9A018, 9A990 to 9A994), 9B 
(except 9B994) or 9E003.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
NS applies to ``software'' for items       NS Column 1.                 
 controlled by 9A001 to 9A003, 9B001 to                                 
 9B009, 9E003.                                                          
MT applies to ``software'' for equipment   MT Column 1.                 
 controlled by 9A001, 9A101, 9A106,                                     
 9A110, 9A115, 9A190, 9B001 to 9B005,                                   
 9B007, 9B105, 9B106, 9B115 to 9B117 for                                
 for MT reasons.                                                        
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: (1.) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 9A004 to 9A011, 9A104, 9A105, 9A107 to 9A109, 9A111, 9A116 to 
9A119). The ``software'' related to these entries is subject to the 
export licensing authority of the U.S. Department of State, Office 
of Defense Trade Controls. (See 22 CFR part 121.) (2.) ``Software'' 
``required'' for the ``development'' of equipment controlled by 
9A004 is subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121, Category XV.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9D002  ``Software'' ``required'' for the ``production'' of equipment 
controlled by 9A (except 9A018, 9A990 to 9A994) or 9B (except 9B994).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to ``software'' for           NS Column 1.                   
 equipment controlled by 9A001 to 9A003                                 
 or 9B001 to 9B009.                                                     
MT applies to ``software'' for           MT Column 1.                   
 equipment controlled by 9A001, 9A101,                                  
 9A106, 9A110, 9A115, 9A190, 9B001 to                                   
 9B005, 9B007, 9B105, 9B106, 9B115 to                                   
 9B117 for for MT reasons.                                              
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

Listed of Items Controlled

    Unit: $ value
    Related Controls: (1.) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 9A005 to 9A011, 9A104, 9A105, 9A107 to 9A109, 9A111, 9A116 to 
9A119). The ``software'' related to these entries is subject to the 
export licensing authority of the U.S. Department of State, Office 
of Defense Trade Controls. (See 22 CFR part 121.) (2.) ``Software'' 
``required'' for the ``production'' of equipment controlled by 9A004 
is subject to the export licensing authority of the U.S. Department 
of State, Office of Defense Trade Controls. (See 22 CFR part 121, 
Category XV.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9D003  ``Software'' ``required'' for the ``use'' of full authority 
digital electronic engine controls (FADEC) for propulsion systems 
controlled by 9A (except 9A018, 9A990 to 9A994) or 9B (except 9B994).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
NS applies to ``software'' for ``use'' of  NS Column 1.                 
 FADEC for equipment controlled by 9A001                                
 to 9A003.                                                              
MT applies to ``software'' required for    MT Column 1.                 
 the ``use'' of FADEC for gas turbine                                   
 aero engines controlled by 9A101, 9A106,                               
 9A110, or 9A115.                                                       
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

    Unit: $ value
    Related Controls: (1.) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 9A005 to 9A011, 9A105, 9A107 to 9A109, 9A111, 9A116 to 
9A119). The ``software'' related to these entries is subject to the 
export licensing authority of the U.S. Department of State, Office 
of Defense Trade Controls (see 22 CFR part 121). (2.) ``Software'' 
``required'' for ``use'' of FADEC for equipment controlled by 9A004 
is subject to the export licensing authority of the U.S. Department 
of State, Office of Defense Trade Controls. (See 22 CFR part 121, 
Category XV.)
    Related Definitions: N/A
    Items:

    a. ``Software'' in digital electronic controls for propulsion 
systems, aerospace test facilities or air breathing aero-engine test 
facilities;
    b. Fault-tolerant ``software'' used in FADEC systems for 
propulsion systems and associated test facilities.


9D004  Other ``software''.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.                 
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Software'' specially designed for vibration test equipment 
using real time digital controls with individual exciters 
(thrusters) with a maximum thrust exceeding 50 kN;
    b. 2D or 3D viscous ``software'' validated with wind tunnel or 
flight test data ``required'' for detailed engine flow modelling;
    c. ``Software'' ``required'' for the ``development'' or 
``production'' of real time full authority electronic test 
facilities for engines or components controlled by 9A;
    d. ``Software'' for testing aero gas turbine engines, assemblies 
or components, specially designed to collect, reduce and analyze 
data in real time, and capable of feedback control, including the 
dynamic adjustment of test articles or test conditions, as the test 
is in progress;
    e. ``Software'' specially designed to control directional 
solidification or single crystal casting;
    f. ``Software'' in ``source code,'' ``object code'' or machine 
code ``required'' for the ``use'' of active compensating systems for 
rotor blade tip clearance control.

    Note: 9D004.f does not control ``software'' embedded in 
uncontrolled equipment or ``required'' for maintenance activities 
associated with the calibration or repair or updates to the active 
compensating clearance control system.

[[Page 13033]]



9D101  ``Software'' specially designed for the ``use'' of items 
specified in 9A101, 9A106, 9A110, 9A115, 9A190, 9B105, 9B106, 9B116 or 
9B117.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9D018  ``Software'' for the ``use'' of equipment controlled by 9A018.

License Requirements

    Reason for Control: NS, RS, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.                 
RS applies to 9A018.a and .b.............  RS Column 2.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: Yes for Australia, Japan, New Zealand, and NATO only

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9D990  ``Software'', n.e.s., for the ``development'' or ``production'' 
of diesel engines and pressurized aircraft breathing equipment 
controlled by 9A990.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 2.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9D991  ``Software'', n.e.s., for the ``development'' or ``production'' 
of aircraft and aero gas turbine engines controlled by 9A991 or 
aircraft parts and components controlled by 9A994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9D993  ``Software'' for the ``production'' or ``development'' of off-
highway wheel tractors controlled by 9A992 or on-highway tractors 
controlled by 9A993.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9D994  ``Software'' for the ``development'', ``production'', or ``use'' 
of equipment controlled by 9B994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.

E. Technology


9E001  ``Technology'' according to the General Technology Note for the 
``development'' of equipment or ``software'' controlled by 9A001.c, 9B 
(except 9B994), or 9D (except 9D018, 9D990 to 9D994).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
NS applies to ``technology'' for items     NS Column 1.                 
 controlled by 9A001.c, 9B001 to 9B009,                                 
 9D001 to 9D004.                                                        
MT applies to ``technology'' for items     MT Column 1.                 
 controlled by 9B001 to 9B005, 9B007,                                   
 9B105, 9B106, 9B115 to 9B117, 9D001 to                                 
 9D004 for MT reasons.                                                  
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: 1.) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 9D103). The ``software'' related to these entries is subject 
to the export licensing authority of the U.S. Department of State, 
Office of Defense Trade Controls (see 22 CFR part 121). 2.) 
``Technology'' required for the ``development'' of equipment 
controlled by 9A004 is subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Controls. (See 
22 CFR part 121, Category XV.)
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9E002  ``Technology'' according to the General Technology Note for the 
``production'' of equipment controlled by 9A001.c or 9B (except 9B994).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.                   
MT applies to ``technology'' for         MT Column 1.                   
 equipment controlled by 9B001 to                                       
 9B005, 9B007, 9B105, 9B106, 9B115 to                                   
 9B117 for MT reasons.                                                  
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    
[[Page 13034]]

    Related Controls: See 1E002.f for controls on ``technology'' for 
the repair of controlled structures, laminates or materials.
    Related Definition: Development or production ``technology'' 
controlled by 9E for gas turbine engines remains controlled when 
used as ``use'' ``technology'' for repair, rebuild and overhaul. 
Excluded from control are: technology, drawings or documentation for 
maintenance activities directly associated with calibration, removal 
or replacement of damaged or unserviceable line replaceable units, 
including replacement of whole engines or engine modules.
    Items: The list of items controlled is contained in the ECCN 
heading.


9E003   Other ``technology''.

License Requirements

    Reason for Control: NS, AT

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

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items:

    a. ``Technology'' ``required'' for the ``development'' or 
``production'' of the following gas turbine engine components or 
systems:
    a.1. Gas turbine blades, vanes or tip shrouds made from 
directionally solidified (DS) or single crystal (CS) alloys having 
(in the 001 Miller Index Direction) a stress-rupture life exceeding 
400 hours at 1,273 K (1,000 deg. C) at a stress of 200 MPa, based on 
the average property values;
    a.2. Multiple domed combustors operating at average burner 
outlet temperatures exceeding 1,643 K (1370 deg. C), or combustors 
incorporating thermally decoupled combustion liners, non-metallic 
liners or non-metallic shells;
    a.3. Components manufactured from organic ``composite'' 
materials designed to operate above 588 K (315 deg. C), or from 
metal ``matrix'' ``composite'', ceramic ``matrix'', intermetallic or 
intermetallic reinforced materials controlled by 1A002 or 1C007;
    a.4. Uncooled turbine blades, vanes, tip-shrouds or other 
components designed to operate at gas path temperatures of 1,323 K 
(1,050 deg. C) or more;
    a.5. Cooled turbine blades, vanes or tip-shrouds, other than 
those described in 9E003.a.1, exposed to gas path temperatures of 
1,643 K (1,370 deg. C) or more;
    a.6. Airfoil-to-disk blade combinations using solid state 
joining;
    a.7. Gas turbine engine components using ``diffusion bonding'' 
``technology'' controlled by 2E003.b;
    a.8. Damage tolerant gas turbine engine rotating components 
using powder metallurgy materials controlled by 1C002.b;
    a.9. Full authority digital electronic engine controls (FADEC) 
for gas turbine and combined cycle engines and their related 
diagnostic components, sensors and specially designed components;
    a.10. Adjustable flow path geometry and associated control 
systems for:
    a.10.a. Gas generator turbines;
    a.10.b. Fan or power turbines;
    a.10.c. Propelling nozzles;

    Note 1: Adjustable flow path geometry and associated control 
systems do not include inlet guide vanes, variable pitch fans, 
variable stators or bleed valves for compressors.
    Note 2: 9E003.a.10 does not control ``development'' or 
``production'' ``technology'' for adjustable flow path geometry for 
reverse thrust.

    a.11. Rotor blade tip clearance control systems employing active 
compensating casing ``technology'' limited to a design and 
development data base;
    a.12. Gas bearings for gas turbine engine rotor assemblies;
    a.13. Wide chord hollow fan blades without part-span support;
    b. ``Technology'' ``required'' for the ``development'' or 
``production'' of:
    b.1. Wind tunnel aero-models equipped with non-intrusive sensors 
capable of transmitting data from the sensors to the data 
acquisition system;
    b.2. ``Composite'' propeller blades or propfans capable of 
absorbing more than 2,000 kW at flight speeds exceeding Mach 0.55;
    c. ``Technology'' ``required'' for the ``development'' or 
``production'' of gas turbine engine components using ``laser'', 
water jet or ECM/EDM hole drilling processes to produce holes with:
    c.1.a. Depths more than four times their diameter;
    c.1.b. Diameters less than 0.76 mm; and
    c.1.c. Incidence angles equal to or less than 25 deg.; or
    c.2.a. Depths more than five times their diameter;
    c.2.b. Diameters less than 0.4 mm; and
    c.2.c. Incidence angles of more than 25 deg.;

    Technical Note: For the purposes of 9E003.c, incidence angle is 
measured from a plane tangential to the airfoil surface at the point 
where the hole axis enters the airfoil surface.

    d. ``Technology'' ``required'' for the ``development'' or 
``production'' of helicopter power transfer systems or tilt rotor or 
tilt wing ``aircraft'' power transfer systems:
    d.1. Capable of loss-of-lubrication operation for 30 minutes or 
more; or
    d.2. Having an input power-to-weight ratio equal to or more than 
8.87 kW/kg.
    e.1. ``Technology'' for the ``development'' or ``production'' of 
reciprocating diesel engine ground vehicle propulsion systems having 
all of the following:
    e.1.a. A box volume of 1.2 m\3\ or less;
    e.1.b. An overall power output of more than 750 kW based on 80/
1269/EEC, ISO 2534 or national equivalents; and
    e.1.c. A power density of more than 700 kW/m\3\ of box volume;

    Technical Note: Box volume: the product of three perpendicular 
dimensions measured in the following way:
    Length: The length of the crankshaft from front flange to 
flywheel face;
    Width: The widest of the following:
    a. The outside dimension from valve cover to valve cover;
    b. The dimensions of the outside edges of the cylinder heads; or
    c. The diameter of the flywheel housing;
    Height: The largest of the following:
    a. The dimension of the crankshaft center-line to the top plane 
of the valve cover (or cylinder head) plus twice the stroke; or
    b. The diameter of the flywheel housing.

    e.2. ``Technology'' ``required'' for the ``production'' of 
specially designed components, as follows, for ``high output diesel 
engines'':
    e.2.a. ``Technology'' ``required'' for the ``production'' of 
engine systems having all of the following components employing 
ceramics materials controlled by 1C007:
    e.2.a.1. Cylinder liners;
    e.2.a.2. Pistons;
    e.2.a.3. Cylinder heads; and
    e.2.a.4. One or more other components (including exhaust ports, 
turbochargers, valve guides, valve assemblies or insulated fuel 
injectors);
    e.2.b. ``Technology'' ``required'' for the ``production'' of 
turbocharger systems, with single-stage compressors having all of 
the following:
    e.2.b.1. Operating at pressure ratios of 4:1 or higher;
    e.2.b.2. A mass flow in the range from 30 to 130 kg per minute; 
and
    e.2.b.3. Variable flow area capability within the compressor or 
turbine sections;
    e.2.c. ``Technology'' ``required'' for the ``production'' of 
fuel injection systems with a specially designed multifuel (e.g., 
diesel or jet fuel) capability covering a viscosity range from 
diesel fuel (2.5 cSt at 310.8 K (37.8  deg.C)) down to gasoline fuel 
(0.5 cSt at 310.8 K (37.8  deg.C)), having both of the following:
    e.2.c.1. Injection amount in excess of 230 mm3 per 
injection per cylinder;
    e.2.c.2. Specially designed electronic control features for 
switching governor characteristics automatically depending on fuel 
property to provide the same torque characteristics by using the 
appropriate sensors;
    e.3. ``Technology'' ``required'' for the ``development'' or 
``production'' of ``high output diesel engines'' for solid, gas 
phase or liquid film (or combinations thereof) cylinder wall 
lubrication, permitting operation to temperatures exceeding 723 K 
(450  deg.C), measured on the cylinder wall at the top limit of 
travel of the top ring of the piston.


9E018  ``Technology'' for the ``development'', ``production'', or 
``use'' of equipment controlled by 9A018.

License Requirements

    Reason for Control: NS, RS, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.                 

[[Page 13035]]
                                                                        
RS applies to 9A018.a and .b.............  RS Column 2.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------



License Exceptions

    CIV: N/A
    TSR: Yes for Australia, Japan, New Zealand, and NATO only

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9E101  ``Technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment controlled by 9A101, 
9A106, 9A110, or 9A115.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 9A104, 9A105, 9A107 to 9A109, 9A111, 9A116 to 9A119). The 
``software'' related to these entries is subject to the export 
licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls (see 22 CFR part 121).
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9E102  ``Technology'' according to the General Technology Note for the 
``use'' of goods specified in 9A101, 9A106, 9A110, 9B105, 9B106, 9B115, 
9B116, 9B117, or 9D101.

License Requirements

    Reason for Control: MT, AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
MT applies to entire entry...............  MT Column 1.                 
AT applies to entire entry...............  AT Column 1.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL 
(e.g., 9A004 to 9A011, 9A104, 9A105, 9A107 to 9A109, 9A111, 9A116 to 
9A119, or 9D103). The ``software'' related to these entries is 
subject to the export licensing authority of the U.S. Department of 
State, Office of Defense Trade Controls (see 22 CFR part 121).
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9E990  ``Technology'', n.e.s., for the ``development'', ``production'', 
or ``use'' of diesel engines and pressurized aircraft breathing 
equipment controlled by 9A990.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                         Country Chart        
------------------------------------------------------------------------
AT applies to entire entry...............  AT Column 2.                 
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9E991  ``Technology'', n.e.s., for the ``development'', ``production'', 
or ``use'' of aircraft and aero gas turbine engines controlled by 9A991 
or aircraft parts and components controlled by 9A994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9E993  ``Technology'' for the ``development'', ``production'', or 
``use'' of off-highway wheel tractors controlled by 9A992 or on-highway 
tractors controlled by 9A993.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


9E994  ``Technology'' for ``development'', ``production'', or ``use'' 
of vibration test equipment controlled by 9B994.

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
               Control(s)                         Country Chart         
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1.                   
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: N/A
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.


EAR99  Items subject to the EAR that are not elsewhere specified in 
this CCL Category or in any other category in the CCL are designated by 
the number EAR99.

Advisory Notes for Category 9

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory 
end-users in Country Group D:1 of marine gas turbine engines 
controlled by 9A002, for installation in civil marine vessels for 
civil end-use, provided that their specific fuel consumption exceeds 
0.23 kg/kW-hr. and their continuous ISO rating is less than 20,000 
kW.

Supplement No. 2 to Part 774--General Technology and Software Notes

    1. General Technology Note. The export of ``technology'' that is 
``required'' for the ``development'', ``production'', or ``use'' of 
items on the Commerce Control List is controlled according to the 
provisions in each Category.
    ``Technology'' ``required'' for the ``development'', 
``production'', or ``use'' of a controlled product remains 
controlled even when applicable to a product controlled at a lower 
level.
    License Exception OTS is available for ``technology'' that is 
the minimum necessary for the installation, operation, maintenance 
(checking), and repair of those products that are eligible for 
License Exceptions or that are exported under a license.
    N.B.: This does not allow release under a License Exception of 
the repair ``technology'' controlled by 1E002.e, 1E002.f, 7E003, or 
8E002.a.
    N.B.: The 'minimum necessary' excludes ``development'' or 
``production'' technology and permits ``use'' technology only to the 
extent ``required'' to ensure safe and efficient use of the product. 
Individual ECCNs may further restrict export of ``minimum 
necessary'' information.
    2. General Software Note. License Exception GSN is available to 
all destinations, except Cuba, Iran, Libya, North Korea, Sudan and 
Syria, for release of

[[Page 13036]]
software that is generally available to the public by being:
    a. Sold from stock at retail selling points, without 
restriction, by means of:
    1. Over the counter transactions;
    2. Mail order transactions; or
    3. Telephone call transactions; and
    b. Designed for installation by the user without further 
substantial support by the supplier.

Supplement No. 3 to Part 774

Cross-Reference

------------------------------------------------------------------------
                Old ECCN                             New ECCN           
------------------------------------------------------------------------
                         Sorted by ``OLD'' ECCN                         
                                  CAT 0                                 
------------------------------------------------------------------------
0A18...................................  0A018                          
0A80...................................  0A980                          
0A82...................................  0A982                          
0A82...................................  0A983                          
0A84...................................  0A984                          
0A84...................................  0A985                          
0A86...................................  0A986                          
0A88...................................  0A988                          
0A95...................................  Sec.  746.4(b)(2)(i)           
0A96...................................  EAR99                          
0A98...................................  Sec.  734.3(b)(2)              
0E18...................................  0E018                          
0E84...................................  0E984                          
0E96...................................  EAR99                          
1B16...................................  0B003                          
1C19.b.................................  0C006                          
1D01...................................  0D001                          
1E19...................................  0E001                          
2A19.c.................................  0B001                          
2A50.b.................................  0B008                          
2D19...................................  0D001                          
2D50...................................  0D001                          
2E19...................................  0E001                          
2E50...................................  0E001                          
                                                                        
------------------------------------------------------------------------
                                 CAT 1                                  
                                                                        
------------------------------------------------------------------------
***....................................  1D103                          
***....................................  1E202                          
***....................................  1E203                          
1A01...................................  1A001                          
1A02...................................  1A002                          
1A03...................................  1A003                          
1A22.b.................................  1A102                          
1A27...................................  1C116                          
1A45...................................  1A226                          
1A46...................................  1C202                          
1A47...................................  1C216                          
1A48...................................  1A290                          
1A50...................................  1C226                          
1A84...................................  1A984                          
1A88...................................  1A988                          
1A96...................................  EAR99                          
1B01...................................  1B001                          
1B02...................................  1B002                          
1B03...................................  1B003                          
1B17...................................  1B225                          
1B18...................................  1B018                          
1B21...................................  1B101                          
1B28...................................  1B115                          
1B30.a.................................  1B116                          
1B41...................................  1B201                          
1B42...................................  1B226                          
1B52...................................  1B229                          
1B53...................................  1B228                          
1B54...................................  1B227                          
1B55...................................  1B232                          
1B58...................................  1B231                          
1B59...................................  1B230                          
1B96...................................  EAR99                          
1C01...................................  1C001                          
1C02...................................  1C002                          
1C03...................................  1C003                          
1C05...................................  1C005                          
1C06...................................  1C006                          
1C07...................................  1C007                          
1C08...................................  1C008                          
1C09...................................  1C009                          
1C10...................................  1C010                          
1C18...................................  1C018                          
1C19.a.................................  1C234                          
1C19.c.................................  1C233                          
1C19.d.................................  1C230                          
1C19.e.................................  1A225                          
1C19.f.................................  1C231                          
1C21...................................  1C101                          
1C22...................................  1C117                          
1C27...................................  1C107                          
1C31...................................  1C115                          
1C49...................................  1A225                          
1C50...................................  1C210                          
1C50.c.................................  1A202                          
1C51...................................  1C229                          
1C52...................................  1C227                          
1C53...................................  1C228                          
1C54...................................  1C236                          
1C55...................................  1C232                          
1C56...................................  1C238                          
1C57...................................  1C225                          
1C58...................................  1C237                          
1C60...................................  1C350                          
1C61.a (partial), .b.c (partial), .f...  1C351                          
1C61.a (partial), .c (partial).........  1C352                          
1C61.c.15,c.16, .d.....................  1C354                          
1C61.e.................................  1C353                          
1C80...................................  1C980                          
1C81...................................  1C981                          
1C82...................................  1C982                          
1C83...................................  1C983                          
1C84...................................  1C984                          
1C88...................................  1C988                          
1C91...................................  1C991                          
1C92...................................  1C992                          
1C93...................................  1C993                          
1C94...................................  1C994                          
1C95...................................  1C995                          
1C96...................................  EAR99                          
1CO4...................................  1C004                          
1D01...................................  1D018                          
1D01...................................  1D001                          
1D02...................................  1D002                          
1D23...................................  1D101                          
1D41...................................  1D201                          
1D60...................................  1D390                          
1D93...................................  1D993                          
1D94...................................  1D993                          
1D96...................................  EAR99                          
1E02...................................  1E002                          
1E23...................................  1E001                          
1E23...................................  1E101                          
1E24...................................  1E103                          
1E25...................................  1E104                          
1E40...................................  1E201                          
1E41...................................  1E201                          
1E60...................................  1E001                          
1E60...................................  1E350                          
1E60...................................  1E391                          
1E61...................................  1E001                          
1E61...................................  1E351                          
1E61...................................  1E391                          
1E94...................................  1E994                          
1E96...................................  EAR99                          
2A50.c.................................  1A227                          
                                                                        
----------------------------------------                                
                                 CAT 2                                  
                                                                        
----------------------------------------                                
***....................................  2A993                          
***....................................  2B207                          
1A44...................................  2A225                          
1B30.b.................................  2B104                          
1B50.a.................................  2B226                          
1B50.b.................................  2B227                          
1B51...................................  2B230                          
1B70.a through .d......................  2B350                          
1B70.e.................................  2B351                          
1B71...................................  2B352                          
1D50...................................  2D201                          
1E41...................................  2E201                          
1E70...................................  2E301                          
2A01...................................  2A001                          
2A02...................................  2A002                          
2A03...................................  2A003                          
2A04...................................  2A004                          
2A05...................................  2A005                          
2A06...................................  2A006                          
2A48...................................  2A226                          
2A49...................................  2A290                          
2A50.b.d.f.............................  2A291                          
2A50.e.................................  2B225                          
2A51...................................  2A292                          
2A52...................................  2B231                          
2A53...................................  2A293                          
2A94...................................  2A994                          
2A96...................................  EAR96                          
2B01...................................  2B001                          
2B02...................................  2B002                          
2B03...................................  2B003                          
2B04...................................  2B004                          
2B05...................................  2B005                          
2B06...................................  2B006                          
2B07...................................  2B007                          
2B08...................................  2B008                          
2B09...................................  2B009                          
2B18...................................  2B018                          
2B24...................................  2B104                          
2B41...................................  2B290                          
2B44...................................  2B204                          
2B50...................................  2B115                          
2B50...................................  2B215                          
2B51...................................  2B228                          
2B53...................................  2B229                          
2B85...................................  2B985                          
2B91...................................  2B991                          
2B92...................................  2B992                          
2B93...................................  2B993                          
2B94...................................  2B994                          
2B96...................................  EAR99                          
2D01...................................  2D001                          
2D02...................................  2D002                          
2D18...................................  2D018                          
2D24...................................  2D101                          
2D41...................................  2D290                          
2D49...................................  2D290                          
2D50...................................  2D290                          
2D92...................................  2D994                          
2D93...................................  2D992                          
2D94...................................  2D993                          
2D96...................................  EAR99                          
2E01...................................  2E001                          
2E02...................................  2E002                          
2E03...................................  2E003                          
2E18...................................  2E018                          

[[Page 13037]]
                                                                        
2E20...................................  2E201                          
2E24...................................  2E001                          
2E24...................................  2E002                          
2E24...................................  2E101                          
2E40...................................  2E201                          
2E40...................................  2E290                          
2E41...................................  2E001                          
2E41...................................  2E002                          
2E41...................................  2E201                          
2E41...................................  2E290                          
2E44...................................  2E001                          
2E44...................................  2E002                          
2E44...................................  2E201                          
2E44...................................  2E290                          
2E48...................................  2E001                          
2E48...................................  2E002                          
2E48...................................  2E201                          
2E49...................................  2E001                          
2E49...................................  2E002                          
2E49...................................  2E290                          
2E50...................................  2E001                          
2E50...................................  2E002                          
2E50...................................  2E201                          
2E50...................................  2E290                          
2E51...................................  2E001                          
2E51...................................  2E002                          
2E51...................................  2E201                          
2E51...................................  2E290                          
2E52...................................  2E001                          
2E52...................................  2E002                          
2E52...................................  2E201                          
2E53...................................  2E001                          
2E53...................................  2E002                          
2E53...................................  2E201                          
2E53...................................  2E290                          
2E93...................................  2E994                          
2E94...................................  2E993                          
2E96...................................  EAR99                          
3A48...................................  2B232                          
9B26.a.................................  2B116                          
                                                                        
------------------------------------------------------------------------
                                  CAT 3                                 
                                                                        
------------------------------------------------------------------------
2A19.b.................................  3A231                          
3A01...................................  3A001                          
3A02...................................  3A002                          
3A22...................................  3A101                          
3A41...................................  3A201.a                        
3A42...................................  3A201.b                        
3A43...................................  3A228                          
3A44...................................  3A230                          
3A46...................................  3A229                          
3A49...................................  3A232                          
3A50...................................  3A225                          
3A51...................................  3A233                          
3A52...................................  3A202                          
3A53...................................  3A227                          
3A54...................................  3A226                          
3A55...................................  3A201.c                        
3A80...................................  3A980                          
3A81...................................  3A981                          
3A92...................................  3A992                          
3A93...................................  3A993                          
3A94...................................  3A994                          
3A96...................................  EAR99                          
3B01.a.................................  3B001                          
3B01.b.................................  3B002                          
3B01.c.................................  3B003                          
3B01.d.................................  3B004                          
3B01.e.................................  3B005                          
3B01.f.................................  3B006                          
3B01.g.................................  3B007                          
3B01.h.................................  3B008                          
3B91...................................  3B991                          
3B96...................................  EAR99                          
3C01...................................  3C001                          
3C02...................................  3C002                          
3C03...................................  3C003                          
3C04...................................  3C004                          
3C96...................................  EAR99                          
3D02...................................  3D002                          
3D03...................................  3D003                          
3D21...................................  3D001                          
3D22...................................  3D001                          
3D22...................................  3D101                          
3D80...................................  3D980                          
3D94...................................  3D994                          
3D96...................................  EAR99                          
3E02...................................  3E002                          
3E22...................................  3E001                          
3E22...................................  3E101                          
3E40...................................  3E001                          
3E40...................................  3E201                          
3E41...................................  3E201                          
3E80...................................  3E980                          
3E94...................................  3E994                          
3E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 4                                 
                                                                        
------------------------------------------------------------------------
4A01...................................  4A001                          
4A02...................................  4A002                          
4A03...................................  4A003                          
4A04...................................  4A004                          
4A21...................................  4A101                          
4A80...................................  4A980                          
4A94...................................  4A994                          
4A96...................................  EAR99                          
4B94...................................  4B994                          
4B96...................................  EAR99                          
4C94...................................  4C994                          
4C96...................................  EAR99                          
4D01...................................  4D001                          
4D02...................................  4D002                          
4D03...................................  4D003                          
4D21...................................  4D190                          
4D80...................................  4D980                          
4D92...................................  4D994                          
4D93...................................  4D993                          
4D94...................................  4D994                          
4D96...................................  EAR99                          
4E01...................................  4E001                          
4E02...................................  4E002                          
4E80...................................  4E980                          
4E92...................................  4E994                          
4E93...................................  4E993                          
4E94...................................  4E994                          
4E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 5                                 
                                                                        
------------------------------------------------------------------------
2A19.a.................................  Deleted                        
5A01...................................  5A001.a                        
5A02...................................  5A001.b                        
5A03...................................  5A001.c                        
5A04...................................  5A001.d                        
5A05...................................  5A001.e                        
5A06...................................  5A001.f                        
5A11...................................  5A002                          
5A20...................................  5A101                          
5A80...................................  5A980                          
5A90...................................  5A990                          
5A91...................................  5A991                          
5A92...................................  5A992                          
5A93...................................  5A993                          
5A94...................................  5A994                          
5A95...................................  5A995                          
5A96...................................  EAR99                          
5B01...................................  5B001.a                        
5B02...................................  5B001.b                        
5B11...................................  5B002.a.1                      
5B12...................................  5B002.a.2                      
5B13...................................  5B002.b                        
5B94...................................  5B994                          
5B96...................................  EAR99                          
5C01...................................  5C001                          
5C96...................................  EAR99                          
5D01...................................  5D001.a                        
5D02...................................  5D001.b                        
5D03...................................  5D001.c                        
5D11...................................  5D002.a                        
5D12...................................  5D002.b                        
5D13...................................  5D002.c                        
5D20...................................  5D101                          
5D20...................................  5D190                          
5D90...................................  5D990                          
5D91...................................  5D991                          
5D92...................................  5D992                          
5D93...................................  5D993                          
5D94...................................  5D994                          
5D95...................................  5D995                          
5D96...................................  EAR99                          
5E01...................................  5E001.a                        
5E02...................................  5E001.b                        
5E11...................................  5E002                          
5E20...................................  5E101                          
5E90...................................  5E990                          
5E91...................................  5E991                          
5E92...................................  5E992                          
5E93...................................  5E993                          
5E94...................................  5E994                          
5E95...................................  5E995                          
5E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 6                                 
                                                                        
------------------------------------------------------------------------
2A44.a.................................  6A225                          
2A44.b.c...............................  6A226                          
6A01...................................  6A001                          
6A02...................................  6A002                          
6A03...................................  6A003                          
6A04...................................  6A004                          
6A05...................................  6A005                          
6A06...................................  6A006                          
6A07...................................  6A007                          
6A07...................................  6A107                          
6A08...................................  6A008                          
6A18...................................  6A018                          
6A22...................................  6A102                          
6A28...................................  6A108                          
6A29...................................  6A108                          
6A30...................................  6B108                          
6A43...................................  6A203                          
6A44...................................  6A202                          
6A50...................................  6A205                          
6A90...................................  6A990                          
6A92...................................  6A992                          
6A93...................................  6A993                          
6A94...................................  6A994                          
6A96...................................  EAR99                          
6B04...................................  6B004                          
6B05...................................  6B005                          
6B07...................................  6B007                          
6B08...................................  6B008                          
6B96...................................  EAR99                          
6C02...................................  6C002                          
6C04...................................  6C004                          
6C05...................................  6C005                          
6C96...................................  EAR99                          

[[Page 13038]]
                                                                        
6D01...................................  6D001                          
6D02...................................  6D002                          
6D03...................................  6D003                          
6D21...................................  6D001                          
6D22...................................  6D102                          
6D29...................................  6D103                          
6D90...................................  6D990                          
6D92...................................  6D990                          
6D93...................................  6D990                          
6D94...................................  6D994                          
6D96...................................  EAR99                          
6E01...................................  6E001                          
6E02...................................  6E002                          
6E03...................................  6E003                          
6E21...................................  6E001                          
6E22...................................  6E002                          
6E23...................................  6E101                          
6E40...................................  6E201                          
6E41...................................  6E001                          
6E41...................................  6E002                          
6E41...................................  6E201                          
6E94...................................  6E994                          
6E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 7                                 
                                                                        
------------------------------------------------------------------------
* * *..................................  7D102                          
7A01...................................  7A001                          
7A02...................................  7A002                          
7A03...................................  7A003                          
7A04...................................  7A004                          
7A06...................................  7A006                          
7A21...................................  7A101                          
7A22...................................  7A102                          
7A23...................................  7A103                          
7A24...................................  7A104                          
7A26...................................  7A106                          
7A27...................................  7A115                          
7A94...................................  7A994                          
7B01...................................  7B001                          
7B02...................................  7B002                          
7B03...................................  7B003                          
7B22.a.................................  7B102                          
7B22.b through .f......................  7B101                          
7B94...................................  7B994                          
7D01...................................  7D001                          
7D02...................................  7D002                          
7D03...................................  7D003                          
7D24...................................  7D001                          
7D24...................................  7D101                          
7D94...................................  7D994                          
7E01...................................  7E001                          
7E02...................................  7E002                          
7E03...................................  7E003                          
7E04...................................  7E004                          
7E21...................................  7E001                          
7E21...................................  7E002                          
7E21...................................  7E101                          
7E22...................................  7E102                          
7E94...................................  7E994                          
                                                                        
------------------------------------------------------------------------
                                 CAT 8                                  
                                                                        
------------------------------------------------------------------------
8A01...................................  8A001                          
8A02...................................  8A002                          
8A18...................................  8A018                          
8A92...................................  8A992                          
8A93...................................  8A993                          
8A94...................................  8A994                          
8A96...................................  EAR99                          
8B01...................................  8B001                          
8B96...................................  EAR99                          
8C01...................................  8C001                          
8C96...................................  EAR99                          
8D01...................................  8D001                          
8D02...................................  8D002                          
8D92...................................  8D992                          
8D93...................................  8D993                          
8D96...................................  EAR99                          
8E01...................................  8E001                          
8E02...................................  8E002                          
8E92...................................  8E992                          
8E93...................................  8E993                          
8E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                 CAT 9                                  
                                                                        
------------------------------------------------------------------------
1A22.a.................................  9A110                          
9A01...................................  9A001                          
9A02...................................  9A002                          
9A03...................................  9A003                          
9A04...................................  9A004                          
9A18...................................  9A018                          
9A21...................................  9A101                          
9A22...................................  9A115                          
9A23...................................  9A106                          
9A24...................................  9A190                          
9A80...................................  9A980                          
9A90...................................  9A990                          
9A91...................................  9A991                          
9A92...................................  9A992                          
9A93...................................  9A993                          
9A94...................................  9A994                          
9A96...................................  EAR99                          
9B01...................................  9B001                          
9B02...................................  9B002                          
9B03...................................  9B003                          
9B04...................................  9B004                          
9B05...................................  9B005                          
9B06...................................  9B006                          
9B07...................................  9B007                          
9B08...................................  9B008                          
9B09...................................  9B009                          
9B21...................................  9B115                          
9B21...................................  9B116                          
9B25...................................  9B105                          
9B26.b.................................  9B106                          
9B27...................................  9B117                          
9B94...................................  9B994                          
9B96...................................  EAR99                          
9D01...................................  9D001                          
9D02...................................  9D002                          
9D03...................................  9D003                          
9D04...................................  9D004                          
9D18...................................  9D018                          
9D24...................................  9D001                          
9D24...................................  9D002                          
9D24...................................  9D101                          
9D90...................................  9D990                          
9D91...................................  9D991                          
9D93...................................  9D993                          
9D94...................................  9D994                          
9D96...................................  EAR99                          
9E01...................................  9E001                          
9E02...................................  9E002                          
9E03...................................  9E003                          
9E18...................................  9E018                          
9E21...................................  9E101                          
9E21...................................  9E102                          
9E90...................................  9E990                          
9E91...................................  9E991                          
9E93...................................  9E993                          
9E94...................................  9E994                          
9E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                          Sorted by ``NEW'' ECCN                        
                                  CAT 0                                 
                                                                        
------------------------------------------------------------------------
0A18...................................  0A018                          
0A80...................................  0A980                          
0A82...................................  0A982                          
0A82...................................  0A983                          
0A84...................................  0A984                          
0A84...................................  0A985                          
0A86...................................  0A986                          
0A88...................................  0A988                          
2A19.c.................................  0B001                          
1B16...................................  0B003                          
2A50.b.................................  0B008                          
1C19.b.................................  0C006                          
1D01...................................  0D001                          
2D19...................................  0D001                          
2D50...................................  0D001                          
1E19...................................  0E001                          
2E19...................................  0E001                          
2E50...................................  0E001                          
0E18...................................  0E018                          
0E84...................................  0E984                          
0A98...................................  Sec.  734.3(b)(2)              
0A95...................................  Sec.  746.4(b)(2)(i)           
0A96...................................  EAR99                          
0E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 1                                 
                                                                        
------------------------------------------------------------------------
1A01...................................  1A001                          
1A02...................................  1A002                          
1A03...................................  1A003                          
1A22.b.................................  1A102                          
1C50.c.................................  1A202                          
1C19.e.................................  1A225                          
1C49...................................  1A225                          
1A45...................................  1A226                          
2A50.c.................................  1A227                          
1A48...................................  1A290                          
1A84...................................  1A984                          
1A88...................................  1A988                          
1B01...................................  1B001                          
1B02...................................  1B002                          
1B03...................................  1B003                          
1B18...................................  1B018                          
1B21...................................  1B101                          
1B28...................................  1B115                          
1B30.a.................................  1B116                          
1B41...................................  1B201                          
1B17...................................  1B225                          
1B42...................................  1B226                          
1B54...................................  1B227                          
1B53...................................  1B228                          
1B52...................................  1B229                          
1B59...................................  1B230                          
1B58...................................  1B231                          
1B55...................................  1B232                          
1C01...................................  1C001                          
1C02...................................  1C002                          
1C03...................................  1C003                          
1CO4...................................  1C004                          
1C05...................................  1C005                          
1C06...................................  1C006                          
1C07...................................  1C007                          
1C08...................................  1C008                          
1C09...................................  1C009                          
1C10...................................  1C010                          
1C18...................................  1C018                          
1C21...................................  1C101                          
1C27...................................  1C107                          
1C31...................................  1C115                          
1A27...................................  1C116                          

[[Page 13039]]
                                                                        
1C22...................................  1C117                          
1A46...................................  1C202                          
1C50...................................  1C210                          
1A47...................................  1C216                          
1C57...................................  1C225                          
1A50...................................  1C226                          
1C52...................................  1C227                          
1C53...................................  1C228                          
1C51...................................  1C229                          
1C19.d.................................  1C230                          
1C19.f.................................  1C231                          
1C55...................................  1C232                          
1C19.c.................................  1C233                          
1C19.a.................................  1C234                          
1C54...................................  1C236                          
1C58...................................  1C237                          
1C56...................................  1C238                          
1C60...................................  1C350                          
1C61.a (partial), .b.c (partial), .f...  1C351                          
1C61.a (partial), .c (partial).........  1C352                          
1C61.e.................................  1C353                          
1C61.c.15, c.16, .d....................  1C354                          
1C80...................................  1C980                          
1C81...................................  1C981                          
1C82...................................  1C982                          
1C83...................................  1C983                          
1C84...................................  1C984                          
1C88...................................  1C988                          
1C91...................................  1C991                          
1C92...................................  1C992                          
1C93...................................  1C993                          
1C94...................................  1C994                          
1C95...................................  1C995                          
1D01...................................  1D001                          
1D02...................................  1D002                          
1D01...................................  1D018                          
1D23...................................  1D101                          
* * *..................................  1D103                          
1D41...................................  1D201                          
1D60...................................  1D390                          
1D93...................................  1D993                          
1D94...................................  1D993                          
1E23...................................  1E001                          
1E60...................................  1E001                          
1E61...................................  1E001                          
1E02...................................  1E002                          
1E23...................................  1E101                          
1E24...................................  1E103                          
1E25...................................  1E104                          
1E40...................................  1E201                          
1E41...................................  1E201                          
* * *..................................  1E202                          
* * *..................................  1E203                          
1E60...................................  1E350                          
1E61...................................  1E351                          
1E60...................................  1E391                          
1E61...................................  1E391                          
1E94...................................  1E994                          
1A96...................................  EAR99                          
1B96...................................  EAR99                          
1C96...................................  EAR99                          
1D96...................................  EAR99                          
1E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 2                                 
                                                                        
------------------------------------------------------------------------
2A01...................................  2A001                          
2A02...................................  2A002                          
2A03...................................  2A003                          
2A04...................................  2A004                          
2A05...................................  2A005                          
2A06...................................  2A006                          
1A44...................................  2A225                          
2A48...................................  2A226                          
2A49...................................  2A290                          
2A50.b.d.f.............................  2A291                          
2A51...................................  2A292                          
2A53...................................  2A293                          
* * *..................................  2A993                          
2A94...................................  2A994                          
2B01...................................  2B001                          
2B02...................................  2B002                          
2B03...................................  2B003                          
2B04...................................  2B004                          
2B05...................................  2B005                          
2B06...................................  2B006                          
2B07...................................  2B007                          
2B08...................................  2B008                          
2B09...................................  2B009                          
2B18...................................  2B018                          
1B30.b.................................  2B104                          
2B24...................................  2B104                          
2B50...................................  2B115                          
9B26.a.................................  2B116                          
2B44...................................  2B204                          
* * *..................................  2B207                          
2B50...................................  2B215                          
2A50.e.................................  2B225                          
1B50.a.................................  2B226                          
1B50.b.................................  2B227                          
2B51...................................  2B228                          
2B53...................................  2B229                          
1B51...................................  2B230                          
2A52...................................  2B231                          
3A48...................................  2B232                          
2B41...................................  2B290                          
1B70.a through .d......................  2B350                          
1B70.e.................................  2B351                          
1B71...................................  2B352                          
2B85...................................  2B985                          
2B91...................................  2B991                          
2B92...................................  2B992                          
2B93...................................  2B993                          
2B94...................................  2B994                          
2D01...................................  2D001                          
2D02...................................  2D002                          
2D18...................................  2D018                          
2D24...................................  2D101                          
1D50...................................  2D201                          
2D41...................................  2D290                          
2D49...................................  2D290                          
2D50...................................  2D290                          
2D93...................................  2D992                          
2D94...................................  2D993                          
2D92...................................  2D994                          
2E01...................................  2E001                          
2E24...................................  2E001                          
2E41...................................  2E001                          
2E44...................................  2E001                          
2E48...................................  2E001                          
2E49...................................  2E001                          
2E50...................................  2E001                          
2E51...................................  2E001                          
2E52...................................  2E001                          
2E53...................................  2E001                          
2E02...................................  2E002                          
2E24...................................  2E002                          
2E41...................................  2E002                          
2E44...................................  2E002                          
2E48...................................  2E002                          
2E49...................................  2E002                          
2E50...................................  2E002                          
2E51...................................  2E002                          
2E52...................................  2E002                          
2E53...................................  2E002                          
2E03...................................  2E003                          
2E18...................................  2E018                          
2E24...................................  2E101                          
1E41...................................  2E201                          
2E20...................................  2E201                          
2E40...................................  2E201                          
2E41...................................  2E201                          
2E44...................................  2E201                          
2E48...................................  2E201                          
2E50...................................  2E201                          
2E51...................................  2E201                          
2E52...................................  2E201                          
2E53...................................  2E201                          
2E40...................................  2E290                          
2E41...................................  2E290                          
2E44...................................  2E290                          
2E49...................................  2E290                          
2E50...................................  2E290                          
2E51...................................  2E290                          
2E53...................................  2E290                          
1E70...................................  2E301                          
2E94...................................  2E993                          
2E93...................................  2E994                          
2A96...................................  EAR96                          
2B96...................................  EAR99                          
2D96...................................  EAR99                          
2E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                 CAT 3                                  
                                                                        
------------------------------------------------------------------------
3A01...................................  3A001                          
3A02...................................  3A002                          
3A22...................................  3A101                          
3A41...................................  3A201.a                        
3A42...................................  3A201.b                        
3A55...................................  3A201.c                        
3A52...................................  3A202                          
3A50...................................  3A225                          
3A54...................................  3A226                          
3A53...................................  3A227                          
3A43...................................  3A228                          
3A46...................................  3A229                          
3A44...................................  3A230                          
2A19.b.................................  3A231                          
3A49...................................  3A232                          
3A51...................................  3A233                          
3A80...................................  3A980                          
3A81...................................  3A981                          
3A92...................................  3A992                          
3A93...................................  3A993                          
3A94...................................  3A994                          
3B01.a.................................  3B001                          
3B01.b.................................  3B002                          
3B01.c.................................  3B003                          
3B01.d.................................  3B004                          
3B01.e.................................  3B005                          
3B01.f.................................  3B006                          
3B01.g.................................  3B007                          
3B01.h.................................  3B008                          
3B91...................................  3B991                          
3C01...................................  3C001                          
3C02...................................  3C002                          
3C03...................................  3C003                          
3C04...................................  3C004                          
3D21...................................  3D001                          
3D22...................................  3D001                          
3D02...................................  3D002                          
3D03...................................  3D003                          
3D22...................................  3D101                          
3D80...................................  3D980                          
3D94...................................  3D994                          
3E22...................................  3E001                          
3E40...................................  3E001                          
3E02...................................  3E002                          

[[Page 13040]]
                                                                        
3E22...................................  3E101                          
3E40...................................  3E201                          
3E41...................................  3E201                          
3E80...................................  3E980                          
3E94...................................  3E994                          
3A96...................................  EAR99                          
3B96...................................  EAR99                          
3C96...................................  EAR99                          
3D96...................................  EAR99                          
3E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 4                                 
                                                                        
------------------------------------------------------------------------
4A01...................................  4A001                          
4A02...................................  4A002                          
4A03...................................  4A003                          
4A04...................................  4A004                          
4A21...................................  4A101                          
4A80...................................  4A980                          
4A94...................................  4A994                          
4B94...................................  4B994                          
4C94...................................  4C994                          
4D01...................................  4D001                          
4D02...................................  4D002                          
4D03...................................  4D003                          
4D21...................................  4D190                          
4D80...................................  4D980                          
4D93...................................  4D993                          
4D92...................................  4D994                          
4D94...................................  4D994                          
4E01...................................  4E001                          
4E02...................................  4E002                          
4E80...................................  4E980                          
4E93...................................  4E993                          
4E92...................................  4E994                          
4E94...................................  4E994                          
4A96...................................  EAR99                          
4B96...................................  EAR99                          
4C96...................................  EAR99                          
4D96...................................  EAR99                          
4E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 5                                 
                                                                        
------------------------------------------------------------------------
5A01...................................  5A001.a                        
5A02...................................  5A001.b                        
5A03...................................  5A001.c                        
5A04...................................  5A001.d                        
5A05...................................  5A001.e                        
5A06...................................  5A001.f                        
5A11...................................  5A002                          
5A20...................................  5A101                          
5A80...................................  5A980                          
5A90...................................  5A990                          
5A91...................................  5A991                          
5A92...................................  5A992                          
5A93...................................  5A993                          
5A94...................................  5A994                          
5A95...................................  5A995                          
5B01...................................  5B001.a                        
5B02...................................  5B001.b                        
5B11...................................  5B002.a.1                      
5B12...................................  5B002.a.2                      
5B13...................................  5B002.b                        
5B94...................................  5B994                          
5C01...................................  5C001                          
5D01...................................  5D001.a                        
5D02...................................  5D001.b                        
5D03...................................  5D001.c                        
5D11...................................  5D002.a                        
5D12...................................  5D002.b                        
5D13...................................  5D002.c                        
5D20...................................  5D101                          
5D20...................................  5D190                          
5D90...................................  5D990                          
5D91...................................  5D991                          
5D92...................................  5D992                          
5D93...................................  5D993                          
5D94...................................  5D994                          
5D95...................................  5D995                          
5E01...................................  5E001.a                        
5E02...................................  5E001.b                        
5E11...................................  5E002                          
5E20...................................  5E101                          
5E90...................................  5E990                          
5E91...................................  5E991                          
5E92...................................  5E992                          
5E93...................................  5E993                          
5E94...................................  5E994                          
5E95...................................  5E995                          
2A19.a.................................  Deleted                        
5A96...................................  EAR99                          
5B96...................................  EAR99                          
5C96...................................  EAR99                          
5D96...................................  EAR99                          
5E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 6                                 
                                                                        
------------------------------------------------------------------------
6A01...................................  6A001                          
6A02...................................  6A002                          
6A03...................................  6A003                          
6A04...................................  6A004                          
6A05...................................  6A005                          
6A06...................................  6A006                          
6A07...................................  6A007                          
6A08...................................  6A008                          
6A18...................................  6A018                          
6A22...................................  6A102                          
6A07...................................  6A107                          
6A28...................................  6A108                          
6A29...................................  6A108                          
6A44...................................  6A202                          
6A43...................................  6A203                          
6A50...................................  6A205                          
2A44.a.................................  6A225                          
2A44.b.c...............................  6A226                          
6A90...................................  6A990                          
6A92...................................  6A992                          
6A93...................................  6A993                          
6A94...................................  6A994                          
6B04...................................  6B004                          
6B05...................................  6B005                          
6B07...................................  6B007                          
6B08...................................  6B008                          
6A30...................................  6B108                          
6C02...................................  6C002                          
6C04...................................  6C004                          
6C05...................................  6C005                          
6D01...................................  6D001                          
6D21...................................  6D001                          
6D02...................................  6D002                          
6D03...................................  6D003                          
6D22...................................  6D102                          
6D29...................................  6D103                          
6D90...................................  6D990                          
6D92...................................  6D990                          
6D93...................................  6D990                          
6D94...................................  6D994                          
6E01...................................  6E001                          
6E21...................................  6E001                          
6E41...................................  6E001                          
6E02...................................  6E002                          
6E22...................................  6E002                          
6E41...................................  6E002                          
6E03...................................  6E003                          
6E23...................................  6E101                          
6E40...................................  6E201                          
6E41...................................  6E201                          
6E94...................................  6E994                          
6A96...................................  EAR99                          
6B96...................................  EAR99                          
6C96...................................  EAR99                          
6D96...................................  EAR99                          
6E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 7                                 
                                                                        
------------------------------------------------------------------------
7A01...................................  7A001                          
7A02...................................  7A002                          
7A03...................................  7A003                          
7A04...................................  7A004                          
7A06...................................  7A006                          
7A21...................................  7A101                          
7A22...................................  7A102                          
7A23...................................  7A103                          
7A24...................................  7A104                          
7A26...................................  7A106                          
7A27...................................  7A115                          
7A94...................................  7A994                          
7B01...................................  7B001                          
7B02...................................  7B002                          
7B03...................................  7B003                          
7B22.b through .f......................  7B101                          
7B22.a.................................  7B102                          
7B94...................................  7B994                          
7D01...................................  7D001                          
7D24...................................  7D001                          
7D02...................................  7D002                          
7D03...................................  7D003                          
7D24...................................  7D101                          
***....................................  7D102                          
7D94...................................  7D994                          
7E01...................................  7E001                          
7E21...................................  7E001                          
7E02...................................  7E002                          
7E21...................................  7E002                          
7E03...................................  7E003                          
7E04...................................  7E004                          
7E21...................................  7E101                          
7E22...................................  7E102                          
7E94...................................  7E994                          
                                                                        
------------------------------------------------------------------------
                                  CAT 8                                 
                                                                        
------------------------------------------------------------------------
8A01...................................  8A001                          
8A02...................................  8A002                          
8A18...................................  8A018                          
8A92...................................  8A992                          
8A93...................................  8A993                          
8A94...................................  8A994                          
8B01...................................  8B001                          
8C01...................................  8C001                          
8D01...................................  8D001                          
8D02...................................  8D002                          
8D92...................................  8D992                          
8D93...................................  8D993                          
8E01...................................  8E001                          
8E02...................................  8E002                          
8E92...................................  8E992                          
8E93...................................  8E993                          
8A96...................................  EAR99                          
8B96...................................  EAR99                          
8C96...................................  EAR99                          
8D96...................................  EAR99                          
8E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------

[[Page 13041]]
                                                                        
                                  CAT 9                                 
                                                                        
------------------------------------------------------------------------
9A01...................................  9A001                          
9A02...................................  9A002                          
9A03...................................  9A003                          
9A04...................................  9A004                          
9A18...................................  9A018                          
9A21...................................  9A101                          
9A23...................................  9A106                          
1A22.a.................................  9A110                          
9A22...................................  9A115                          
9A24...................................  9A190                          
9A80...................................  9A980                          
9A90...................................  9A990                          
9A91...................................  9A991                          
9A92...................................  9A992                          
9A93...................................  9A993                          
9A94...................................  9A994                          
9B01...................................  9B001                          
9B02...................................  9B002                          
9B03...................................  9B003                          
9B04...................................  9B004                          
9B05...................................  9B005                          
9B06...................................  9B006                          
9B07...................................  9B007                          
9B08...................................  9B008                          
9B09...................................  9B009                          
9B25...................................  9B105                          
9B26.b.................................  9B106                          
9B21...................................  9B115                          
9B21...................................  9B116                          
9B27...................................  9B117                          
9B94...................................  9B994                          
9D01...................................  9D001                          
9D24...................................  9D001                          
9D02...................................  9D002                          
9D24...................................  9D002                          
9D03...................................  9D003                          
9D04...................................  9D004                          
9D18...................................  9D018                          
9D24...................................  9D101                          
9D90...................................  9D990                          
9D91...................................  9D991                          
9D93...................................  9D993                          
9D94...................................  9D994                          
9E01...................................  9E001                          
9E02...................................  9E002                          
9E03...................................  9E003                          
9E18...................................  9E018                          
9E21...................................  9E101                          
9E21...................................  9E102                          
9E90...................................  9E990                          
9E91...................................  9E991                          
9E93...................................  9E993                          
9E94...................................  9E994                          
9A96...................................  EAR99                          
9B96...................................  EAR99                          
9D96...................................  EAR99                          
9E96...................................  EAR99                          
------------------------------------------------------------------------



    Dated: February 20, 1996
Iain S. Baird,
Deputy Assistant Secretary for Export Administration
[FR Doc. 96-4173 Filed 3-22-96; 8:45 am]
BILLING CODE 3510-DT-P