[Federal Register Volume 61, Number 215 (Tuesday, November 5, 1996)]
[Rules and Regulations]
[Pages 56894-56896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28401]


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DEPARTMENT OF STATE

22 CFR Part 121

[Public Notice 2465]


Removal of Commercial Communications Satellites and Hot Section 
Technology From State's USML for Transfer to Commerce's CCL

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: This rule amends the International Traffic in Arms Regulations 
(ITAR) by removing from the U.S. Munitions List (USML), for transfer to 
the Department of Commerce's Commerce Control List, hot-section 
technologies associated with commercial aircraft engines and commercial 
communications satellites.

EFFECTIVE DATE: November 5, 1996.

FOR FURTHER INFORMATION CONTACT:
William Lowell, Director, Office of Defense Trade Controls, Department 
of State, Telephone (703) 812-2567 or FAX (703) 875-6647 ATTN: 
Regulatory Change, Commercial Communications Satellites and Commercial 
Hot Section Technologies.

SUPPLEMENTARY INFORMATION: On March 14, 1996, the Administration 
announced a decision concerning commercial aircraft engine hot section 
technologies and commercial communications satellites. The decision has 
several key features. First, commercial aircraft engine hot section 
technologies will be controlled on the Commerce Control List (CCL) of 
dual-use items that are licensed by Commerce. Commercial

[[Page 56895]]

communications satellites will be controlled on the dual-use list, as 
well, even if they include individual munitions list components or 
technologies; in all other cases, munitions list components or 
technologies, themselves, will continue to be controlled on the U.S. 
Munitions List, subject to State Department licensing. Second, new 
control procedures and regulations have been developed for the Commerce 
control list that will provide for strong national security and foreign 
policy controls to all destinations and end users worldwide for these 
items. Enhanced Interagency review of CCL licenses for these items has 
been established. This decision does not result in the decontrol of any 
of these items. The Administration's decision only serves to provide 
clarification from which agency exporters must obtain licenses for 
exports of commercial aircraft engine hot section technology and 
commercial communications satellites by removing these items from the 
U.S. Munitions List for transfer to the Commerce Control List.
    In carrying out this directive, Categories VIII, XIII and XV of the 
U.S. Munitions List are amended.
    This amendment involves a foreign affairs function of the United 
States. It is exempt from review under Executive Order 12866 but has 
been reviewed internally by the Department to ensure consistency with 
the purposes thereof. It is also not subject to 5 U.S.C. 553 and 554, 
and does not require analysis under the Regulatory Flexibility Act or 
the Unfunded Mandates Reform Act. However, interested parties are 
invited to submit written comments to the Department of State, Office 
of Defense Trade Controls, ATTN: Regulatory Change, Commercial 
Communications Satellites and Commercial Hot Section Technologies, Room 
200, SA-6, Washington, D.C. 2052-0602.

List of Subjects in 22 CFR Part 121

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth above, Title 22, Chapter 1, 
subchapter M, is amended as follows:

PART 121--THE UNITED STATES MUNITIONS LIST

    1. The authority citation for part 121 continues to read as 
follows:

    Authority: Sec. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); E.O. 11958, 42 FR 4311; 3 CFR 1977 Comp. 
P. 79; 22 U.S.C. 2658.

    2. In Sec. 121.1 Category VIII is amended by revising paragraphs 
(f) and (i); Category XIII is amended by adding immediately before the 
Note, a new paragraph (b)(1)(x); and Category XV is amended by revising 
paragraphs (a), (c), (e) and (f) and by adding a paragraph (g) to read 
as follows:


Sec. 121.1  General. The United States Munitions List.

Category VIII--Aircraft and Associated Equipment

* * * * *
    (f) Developmental aircraft, engines, and components thereof 
specifically designed, modified, or equipped for military uses or 
purposes, or developed principally with U.S. Department of Defense 
funding, excluding such aircraft, engines, and components subject to 
the jurisdiction of the Department of Commerce.

    Note: Developmental aircraft, engines, and components thereof, 
having no commercial application at the time of this amendment and 
which have been specifically designed for military uses or purposes, 
or developed principally with U.S. Department of Defense funding, 
will be considered eligible for a CCL license when actually applied 
to a commercial aircraft or commercial aircraft engine program. 
Exporters may seek to establish commercial application either on a 
case-by-case basis through submission of documentation demonstrating 
application to a commercial program in requesting an export license 
application from Commerce in respect of a specific export or, in the 
case of use for broad categories of aircraft, engines, or 
components, a commodity jurisdiction from State.

    (g) * * *
    (h) * * *
    (i) Technical data (as defined in Sec. 120.10) and defense services 
(as defined in Sec. 120.9) directly related to the defense articles 
enumerated in paragraphs (a) through (h) of this category (see 
Sec. 125.4 for exemptions), except for hot section technical data 
associated with commercial aircraft engines. Technical data directly 
related to the manufacture or production of any defense articles 
enumerated elsewhere in this category that are designated as 
Significant Military Equipment (SME) shall itself be designated SME.

Category XIII--Auxiliary Military Equipment

* * * * *
    (b) * * *
    (1) * * *
    (x) Tracking, telemetry and control (TT&C) encryption/decryption 
when embedded in a commercial communications satellite identified in 
ECCN 9A004a of the Export Administration Regulations; embedded means 
that the device or system cannot feasibly be removed from the satellite 
and that it cannot be used for other purposes.
* * * * *

Category XV--Spacecraft Systems and Associated Equipment

    * (a) Spacecraft, including satellites, specifically designed or 
modified for military use.
    (b) * * *
    *(c) Military communications satellites or multi-mission satellites 
(including commercial communications satellites having additional, non-
communication mission(s) or payload(s) controlled under this subchapter 
but not including ground stations and their associated equipment and 
technical data not enumerated elsewhere in Sec. 121.1 of this 
subchapter; for controls on such ground stations see the Commerce 
Control List).
    (d) * * *
    (e) Systems, components, parts, accessories, attachments, and 
associated equipment (including ground support equipment) specifically 
designed, modified or configured for the articles in paragraphs (a) 
through (d) of this category, except as provided in paragraph (c).
    (f) The following individual systems, components or parts (except 
when included in a commercial communications satellite licensed under 
ECCN 9A004a of the Export Administration Regulations):
    (1) Anti-jam systems with the ability to respond to incoming 
interference by adaptively reducing antenna gain (nulling) in the 
direction of the interference.
    (2) Antennas:
    (i) With aperture (overall dimension of the radiating portions of 
the antenna) greater than 30 feet; or
    (ii) With all sidelobes less than or equal to -35dB, relative to 
the peak of the main beam; or
    (iii) Designed, modified, or configured to provide coverage area on 
the surface of the earth less than 200 nautical miles 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).
    (3) Intersatellite data relay links that do not involve a ground 
relay terminal (``cross-links'').
    (4) Spaceborne regenerative baseband processing equipment.
    (5) Radiation-hardened microelectronic circuits that are 
specifically designed or rated to meet or exceed all five of the 
following characteristics:
    (i) A total dose of 5 x 105 Rads (SI);

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    (ii) A dose rate upset of 5 x 108 Rads (SI)/Sec;
    (iii) A neutron dose of 1 x 1014 N/cm2;
    (iv) A single event upset of 1 x 10-7 or less error/bit/day;
    (v) Single event latch-up free and having a dose rate latch-up of 
5 x 108 Rads(SI)/sec or greater.
    (6) Propulsion systems which permit acceleration of the satellite 
on-orbit (i.e., after mission orbit injection) at rates greater than 
0.1g.
    (7) Attitude control and determination systems designed to provide 
spacecraft pointing determination and control or payload pointing 
system control better than 0.02 degrees per axis.
    (8) Orbit transfer engines (``kick-motors'') which are embedded in 
the spacecraft. Orbit transfer engines which are not embedded in the 
spacecraft are controlled under Category IV of this subchapter (except 
as noted in the note for this paragraph (f)). Here ``embedded'' means 
that the device or system cannot feasibly be removed from the 
spacecraft and cannot be used for other purposes.
    (9) Cryptographic items described in Category XIII(b)(1)(x) of this 
subchapter.

    Note: Commercial communications satellites are subject to 
Commerce Licensing jurisdiction even if they include the individual 
munitions list systems, components or parts identified in paragraph 
(f) of this category. In all other cases, these systems, components 
or parts remain on the USML except non-embedded, solid propellant 
orbit transfer engines (``kick motors'') are subject to Commerce 
licensing jurisdiction (and not controlled under this subchapter) 
when they are to be utilized for a specific commercial 
communications satellite launch, provided the solid propellant 
``kick motor'' being utilized is not specifically designed or 
modified for military use or capable of being restarted after 
achievement of mission orbit (such orbit transfer engines are always 
controlled under Category IV of this subchapter). Technical data (as 
defined in Sec. 120.10 of this subchapter) and defense services (as 
defined in Sec. 120.9 of this subchapter) related to the systems, 
components, or parts referred to in paragraph (f) of this cateory 
are always controlled under this subchapter, even when the satellite 
itself is licensed by the Department of Commerce.

    (g) Technical data (as defined in Sec. 120.10 of this subchapter) 
and defense services (as defined in Sec. 120.9 of this subchapter) 
directly related to paragraphs (a) through (f) of this category. (See 
Sec. 125.4 for exemptions.) Technical data directly related to the 
manufacture or production of any defense articles enumerated elsewhere 
in this category that are designated as Significant Military Equipment 
(SME) shall itself be designated SME. In addition, detailed design, 
development, production or manufacturing data for all spacecraft 
systems and for specifically designed or modified components for all 
spacecraft systems, regardless of which U.S. Government agency has 
jurisdiction for export of the spacecraft. (See Sec. 125.4 for 
exemptions.) This coverage by the U.S. Munitions List of detailed 
design, development, manufacturing or production information directly 
related to satellites which are not otherwise under the control of this 
section does not include that level of technical data (including 
marketing data) necessary and reasonable for a purchaser to have 
assurance that a U.S.-built item intended to operate in space has been 
designed, manufactured and tested in conformance with specified 
contract requirements (e.g., operational performance, reliability, 
lifetime, product quality, or delivery expectations), as well as data 
necessary to evaluate in-orbit anomalies and to operate and maintain 
associated ground equipment.

    Note 1: All defense services and technical assistance for 
satellites and/or launch vehicles, including compatibility, 
integration, or processing data, is controlled under this 
subchapter. Technical data provided to the launch provider (form, 
fit, function, mass, electrical, mechanical, dynamic/environmental, 
telemetry, safety, facility, launch pad access, and launch 
parameters) for commercial communications satellites that describe 
the interfaces for mating and parameters for launch (e.g., orbit, 
timing) of the satellite is under Commerce jurisdiction.

    Note 2: The international space station, being developed, 
launched and operated under the supervision of the National 
Aeronautics and Space Administration, is controlled for export 
purposes under the Export Administration Regulations.

    Dated: October 25, 1996.
Lynn E. Davis,
Under Secretary for Arms Control and International Security Affairs.
[FR Doc. 96-28401 Filed 11-4-96; 8:45 am]
BILLING CODE 4710-25-M