[Federal Register Volume 61, Number 251 (Monday, December 30, 1996)]
[Rules and Regulations]
[Page 68633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33010]



[[Page 68633]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF STATE

Bureau of Political-Military Affairs

22 CFR Part 121


Amendment to the International Traffic In Arms Regulations

AGENCY: Department of State.

ACTION: Final rule.

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

SUMMARY: This rule amends the International Traffic in Arms Regulations 
by removing from the U.S. Munitions List (USML), for transfer to the 
Department of Commerce's Commerce Control List (CCL), all cryptographic 
items except those specifically designed, developed, configured, 
adapted, or modified for military applications (including command, 
control and intelligence applications).

EFFECTIVE DATE: December 30, 1996.

FOR FURTHER INFORMATION CONTACT:
Rose Biancaniello, Office of Defense Trade Controls, Department of 
State, Telephone (703) 812-2568 or FAX (703) 875-6647 ATTN: Regulatory 
Change, Cryptographic Items.

SUPPLEMENTARY INFORMATION: On October 1, 1996, the Administration 
announced a decision to transfer from the USML to the CCL all 
cryptographic items designated in USML Category XIII(b), except those 
specifically designed, developed, configured, adapted, or modified for 
military applications (including command, control and intelligence 
applications). New control procedures and regulations have been 
developed for the CCL 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.
    In order to ensure an orderly transition, the Department of 
Commerce is providing special authorization in a revision to the Export 
Administration Regulations being published in parallel with this 
amendment for U.S. persons to ship the remaining balances of 
outstanding USML licenses and to continue to carry-out overseas 
activities authorized by other approvals (e.g., distribution 
agreements), without applying for a new Department of Commerce license, 
through filing of Shippers' Export Declarations (SEDs) with District 
Directors of Customs and direct reporting to the Department of Commerce 
on previously authorized distribution activities. U.S. persons are 
advised to consult the Department of Commerce's EAR publication for 
details. Therefore, effective upon the date of this publication, all 
USML licenses and other approvals issued by the Department of State, in 
accordance with ITAR, for Category XIII(b) items being removed from the 
USML are no longer valid.
    In carrying out the decision, Category XIII(b) of the USML is 
amended.
    This amendment involves a foreign affairs function of the United 
States and, thus, is excluded from the procedures of Executive Order 
12866 (68 FR 51735) and 9 U.S.C. 553 and 554. However, interested 
parties are invited to submit written comments to the Department of 
State, Office of Defense Trade Controls, ATTN: Regulatory Change, 
Cryptographic Items, Room 200, SA-6, Washington, DC 20520-0602.

List of Subjects in 22 CFR Part 121

    Arms and Munitions, Exports.

    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, Part 121, is amended as follows:

PART 121--THE UNITED STATES MUNITIONS LIST

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

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629 Arms Export 
Control Act, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797): E.O. 11958, 
42 FR 4311; 22 U.S.C. 2658.

    2. In Sec. 121.1, Category XIII(b) is revised to read as follows:


Sec. 121.1  General. The United States Munitions List.

* * * * *
Category XIII--Auxiliary Military Equipment
* * * * *
    (b) Military Information Security Systems and equipment, 
cryptographic devices, software, and components specifically designed 
or modified therefor (i.e., such items when specifically designed, 
developed, configured, adapted or modified for military applications 
(including command, control and intelligence applications)). This 
includes:
    (1) Military cryptographic (including key management) systems, 
equipment, assemblies, modules, integrated circuits, components or 
software with the capability of maintaining secrecy or confidentiality 
of information or information systems, except cryptographic equipment 
and software as follows:
    (i) 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 feasibility be removed from the 
satellite and that it cannot be used for other purposes.
    (2) Military cryptographic (including key management) systems, 
equipment, assemblies, modules, integrated circuits, components of 
software which have the capability of generating spreading or hopping 
codes for spread spectrum systems or equipment.
    (3) Military cryptanalytic systems, equipment, assemblies, modules, 
integrated circuits, components or software.
    (4) Military systems, equipment, assemblies, modules, integrated 
circuits, components or software providing certified or certifiable 
multi-level security or user isolation exceeding class B2 of the 
Trusted Computer System Evaluation Criteria (TCSEC) and software to 
certify such systems, equipment or software.
    (5) Ancillary equipment specifically designed or modified for 
paragraphs (b) (1), (2), (3), and (4) of this category.
* * * * *
    Dated: December 23, 1996.
Lynn E. Davis,
Under Secretary of State for Arms Control and International Security 
Affairs.
[FR Doc. 96-33010 Filed 12-26-96; 8:45 am]
BILLING CODE 4710-25-M