[Federal Register Volume 62, Number 90 (Friday, May 9, 1997)]
[Rules and Regulations]
[Pages 25451-25470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11727]


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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, 762, 764, 768, 770, and 772

[Docket No. 970306044-7044-01]
RIN 0694-AB56


Revisions and Clarifications to the Export Administration 
Regulations

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: On March 25, 1996, the Bureau of Export Administration (BXA) 
published an interim rule (61 FR 12714) that restructured and 
reorganized the Export Administration Regulations (EAR). The interim 
rule clarified the language of the EAR and simplified the application 
and made the export control regulatory regime more user friendly. This 
rule amends the EAR by making certain revisions and clarifications and, 
in some cases, inserts material inadvertently omitted from the March 25 
interim rule.

DATES: This rule is effective May 9, 1997.

FOR FURTHER INFORMATION CONTACT: Patricia Muldonian, Office of Exporter 
Services, Bureau of Export Administration, Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
the purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor 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 current valid OMB Control Number. This rule involves 
collections of information requirements subject to the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501 et seq.). These collections have 
been approved by the Office of Management and Budget under control 
numbers 0607-0001, 0607-0018, 0607-1052, 0694-00016, 0694-1017, 0694-
0021, 0694-0029, 0694-0058, 0694-0093, 0694-0097, and 0694-0102. This 
rule also contains collections of information subject to the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501 et seq.). These collections have 
been approved by the Office of Management and Budget under control 
numbers 0694-0050 and 0694-0088. Public reporting burden for these 
collections of information are estimated to average 30 minutes for 
0694-0050 and 45 minutes for 0694-0088 respectively per response, 
including the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collections of information. Send suggestions regarding 
burden estimates or any other aspect of the data requirements, 
including suggestions for reducing the burdens to Steve Baker, Bureau 
of Export Administration, and to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington, D.C. 
20503, Attention: BXA Desk Officer.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 12612.
    4. The provisions of the Administrative Procedure Act requiring 
notice of proposed rulemaking, the opportunity for public 
participation, and a delay in effective date, are inapplicable because 
this regulation involves a military or foreign affairs function of the 
United States (see 5 U.S.C. 553(a)(1)). Further, no other law requires 
that a notice of proposed rulemaking and an opportunity for public 
comment be given for this rule. Because a notice of proposed rulemaking 
and an opportunity for public comment are not required to be given for 
this rule by 5 U.S.C. 553, or by any other law, the analytical 
requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., 
are inapplicable.
    Therefore, this regulation is issued in final form. Although there 
is no formal comment period, public comments on this regulation are 
welcome on a continuing basis. Comments should be submitted to Patricia 
Muldonian, Office of Exporter Services, Bureau of Export 
Administration, Department of Commerce, P.O. Box 273, Washington, DC 
20044.

List of Subjects

15 CFR Part 730

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

[[Page 25452]]

15 CFR Parts 732, 740, 748, 750, 752, 758 and 768

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

15 CFR Part 734

    Administrative practice and procedure, Exports, Foreign trade.

15 CFR Parts 736, 738, 742, 770, and 772

    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 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 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.

    Accordingly, parts 730, 732, 734, 736, 738, 740, 742, 744, 746, 
748, 750, 752, 754, 756, 758, 762, 764, 768, 770, and 772 of the Export 
Administration Regulations (15 CFR Parts 730-799) are amended as 
follows:
    1. The authority citation for 15 CFR Part 730 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 1701 et seq.; 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, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 42 FR 
35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p. 
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12867, 
58 FR 51747, 3 CFR, 1993 Comp., p. 649; E.O. 12918, 59 FR 28205, 3 
CFR, 1994 Comp., p. 899; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., 
p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; Notice 
of August 15, 1995, 3 CFR, 1995 Comp., p. 501; E.O. 12981, 60 FR 
62981; Notice of August 14, 1996, 61 FR 42527, August 15, 1996; E.O. 
13026, 61 FR 58767, November 18, 1996.

    2. The authority citations for 15 CFR Parts 732, 736, 740, 748, 
750, 768, 770, and 772 continue to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 
13026, November 15, 1996, 61 FR 58767; Notice of August 15, 1995, 60 
FR 42767, August 17, 1995; Notice of August 14, 1996, 61 FR 42527, 3 
CFR, 1995 Comp., p. 501.

    3. The authority citations for 15 CFR Parts 752, 756, 758, 762, and 
764 continue to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 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; Notice of August 14, 1996, 61 FR 
42527, 3 CFR, 1995 Comp., p. 501.

    4. The authority citation for 15 CFR Part 734 continues to read as 
follows:

    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; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; Notice of August 15, 1995, 60 
FR 42767, August 17, 1995; Notice of August 14, 1996, 61 FR 42527, 3 
CFR, 1995 Comp., 501; E.O. 13026, 61 FR 58767, November 19, 1996.

    5. The authority citation for 15 CFR Part 738 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 720; 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, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; 
Notice of August 15, 1995, 60 FR 42767, August 17, 1995; Notice of 
August 14, 1996, 61 FR 42527, 3 CFR, 1995 Comp., 501; E.O. 13026, 61 
FR 58767, November 19, 1996.

    6. The authority citation for 15 CFR Part 742 continues to read as 
follows:

    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. 12088, 43 FR 20947, 3 CFR, 1994 Comp., p. 917; E.O. 12851, 58 
FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 
1994 Comp., p. 917, E.O. 12938, 59 FR 59099, 3 CFR 1994 Comp., p. 
950; Notice of August 15, 1995, 60 FR 42767, August 17, 1995; Notice 
of August 14, 1996, 61 FR 42527, 3 CFR, 1995 Comp., 501; E.O. 13026, 
61 FR 58767, November 19, 1996.

    7. The authority citation for 15 CFR Part 744 continues to read as 
follows:

    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, 43 FR 20947, 3 
CFR, 1978 Comp., p. 179; E.O. 12581, 58 FR 33181, 3 CFR, 1993 Comp., 
p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 
12938, 59 FR 59099, 3 CFR 1994 Comp., p. 950; Notice of August 15, 
1995, 60 FR 42767, August 17, 1995; Notice of August 14, 1996, 61 FR 
42527, 3 CFR, 1995 Comp., 501; E.O. 13026, 61 FR 58767, November 15, 
1996.

    8. The authority citation for 15 CFR Part 746 continues to read as 
follows:

    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 
Comp., p. 899; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; 
Notice of August 15, 1995, 60 FR 42767, 3 CFR, 1995 Comp. p. 501; 
Notice of August 14, 1996, 61 FR 42527, August 15, 1996.

    9. The authority citation for 15 CFR Part 754 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
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, 59 FR 43437, 3 CFR, 1994 Comp., p. 
917; Notice of August 15, 1995, 60 FR 42767, 3 CFR, 1995 Comp., p. 
501; Notice of August 14, 1996, 61 FR 42527, August 15, 1996.

PART 730--[AMENDED]

    10. Section 730.9 is amended by revising paragraph (c) to read as 
follows:


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

* * * * *
    (c) Technical Advisory Committees. (1) 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:
    (i) The Information Systems TAC;
    (ii) The Materials TAC;
    (iii) The Materials Processing Equipment TAC;
    (iv) The Regulations and Procedures TAC;
    (v) The Sensors and Instrumentation TAC; and
    (vi) The Transportation and Related Equipment TAC.
    (2) For more information. For information on attending a TAC 
meeting or on becoming a TAC member, please contact Ms. Lee Ann 
Carpenter, Director, TAC Unit, OAS-EA/BXA, Room 3886C, U.S. Department 
of Commerce, Washington, DC 20230; Telephone number: (202) 482-2583. 
FAX number: (202) 501-8024.

[[Page 25453]]

PART 732--[AMENDED]

    11. Section 732.1 is amended by revising the introductory text of 
paragraph (a)(1) to read as follows:


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. A flow chart describing these steps is 
contained in Supplement No. 1 to part 732. By cross-references to the 
relevant provisions of the EAR, this part describes the suggested steps 
for you to determine applicability of the following:
* * * * *
    12. Section 732.2 is amended:
    a. By revising the introductory text immediately following the 
section heading;
    b. By revising paragraph (b)(1);
    c. By revising the introductory text to paragraph (d);
    d. By revising the phrase ``consider Step 5 regarding'' to read 
``consider Step 6 regarding'' in paragraph (d)(3); and
    e. By revising the phrase ``Federal Agency or unless publicly 
available'' to read ``Federal Agency or publicly available.)'' in 
paragraph (f)(3)(ii).


Sec. 732.2  Steps regarding scope of the EAR.

    Steps 1 though 6 are designed to aid you in determining the scope 
of the EAR. A flow chart describing these steps is contained in 
Supplement No. 2 to part 732.
* * * * *
    (b) * * *
    (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 if you are not a U.S. person subject to General Prohibition 
Seven. If you are a U.S. person, go to Step 15 at Sec. 732.3(j) of this 
part. If you are a U.S. person and General Prohibition Seven concerning 
proliferation activity of U.S. persons does not apply, then you may 
proceed with the export or reexport of your publicly available 
technology or software. Note that all U.S. persons are subject to the 
provisions of General Prohibition Seven.
* * * * *
    (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 and 
not currently in the U.S. Note that encryption items controlled for EI 
reasons under ECCN 5A002 or ECCN 5D002 on the Commerce Control List 
(refer to Supplement No. 1 to part 774 of the EAR) shall be subject to 
the EAR even if they incorporate less than the de minimis level of U.S. 
content. Accordingly, the provisions of the EAR concerning de minimis 
levels are not applicable to encryption items controlled for ``EI'' 
reasons under ECCNs 5A002, 5D002, or 5E002.
* * * * *
    13. Part 732.3 is amended by revising paragraph (h)(2).


Sec. 732.3  Steps regarding the ten general prohibitions.

* * * * *
    (h) * * *
    (2) Under License Exception TSU (Sec. 740.13 of the EAR), 
operational technology and software (OTS), sales technology (STS), and 
software updates (SUD) overcome General Prohibition Five (End-Use and 
End-User) (Sec. 736.2(b)(5) of the EAR) if all terms and conditions of 
these provisions are met by the exporter or reexporter.
* * * * *
    14. In part 732, Supplement No. 1 is redesignated as Supplement No. 
3 and a new Supplement No. 1 and a new Supplement No. 2 are added to 
read as follows:

BILLING CODE 3510-33-P

[[Page 25454]]

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[[Page 25455]]

[GRAPHIC] [TIFF OMITTED] TR09MY97.001



BILLING CODE 3510-33-C

[[Page 25456]]

    15. In part 732, newly designated Supplement No. 3 is amended by 
revising the phrase ``for a validated license'' to read ``for a 
license'' in paragraph (a)(6).

PART 734--[AMENDED]

    16. Section 734.3 is amended by revising paragraph (b)(4) to read 
as follows:


Sec. 734.3  Items subject to the EAR.

* * * * *
    (b) * * *
    (4) Foreign made items that have greater than the de minimis U.S. 
content based on the principles described in Sec. 734.4 of this part.
* * * * *
    17. Section 734.4 is amended:
    a. By revising the introductory text to paragraph (c);
    b. By revising the phrase ``U.S. origin'' to read ``U.S.-origin'' 
in paragraph (c)(3); and
    c. By revising the introductory text to paragraph (d), as follows:


Sec. 734.4  De minimis U.S. content.

* * * * *
    (c) Except as provided in paragraph (a) of this section for certain 
computers, the following reexports are not subject to the EAR when made 
to either an embargoed country listed in part 746 of the EAR or to a 
terrorist-supporting country as described in part 742 of the EAR:
* * * * *
    (d) 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 reexports are not subject to the EAR:
* * * * *
    18. Section 734.8 is amended:
    a. By revising the citation reference ``Sec. 732.10'' to read 
``Sec. 734.11(b)'' in paragraph (a);
    b. By revising the citation reference ``Sec. 732.11'' to read 
``Sec. 734.11'' in paragraph (b)(6); and
    c. By revising the citation reference ``Sec. 734.11'' to read 
``Sec. 734.11(b)'' in paragraph (d)(1).
    19. Supplement No. 1 to part 734 is amended:
    a. By revising the citation reference ``Sec. 734.7(d)'' to read 
``Sec. 734.7(a)'' in the ``Answer'' to ``Question B(1)'';
    b. By revising the citation reference ``Sec. 734.7(d)(4)(ii)'' to 
read ``Sec. 734.7(a)(4)(ii)'' in the ``Answer'' to ``Question B(3)'';
    c. By revising the citation reference ``Sec. 734.7(d)(4)(iii)'' to 
read ``Sec. 734.7(a)(4)(iii)'' in the ``Answer'' to ``Question B(5)''; 
and
    d. By revising the citation reference ``Sec. 734.7(d)'' to read 
``Sec. 734.7(a)'' in the ``Answer'' to ``Question C(6)''.
    20. Supplement No. 2 to part 734 is amended:
    a. By revising paragraph (a)(1)(ii);
    b. By adding a ``Note'' immediately following paragraph (a)(4), and
    c. By revising paragraph (b)(3), as follows:

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

    (a) * * *
    (1) * * *
    (ii) In calculating the U.S. content value, do not include 
parts, components, or materials that 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) or under NLR for items classified as EAR99.
* * * * *
    (4) * * *
    Note to paragraph (a)--U.S. origin peripheral or accessory 
devices that are merely rack mounted with or cable connected into 
foreign equipment are not deemed to be incorporated components even 
though intended for use with products made abroad. Rather, such 
items are treated as U.S. items that retain their identity and 
remain subject to the EAR.
    (b) * * *
    (3) Future software sales. For calculations of U.S.-content in 
foreign software, you shall include your historic and estimated 
future software sales in units and value along with the rationale 
and basis for those estimates in the report. Unlike parts 
incorporated into commodities, 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, to determine the percentage of 
U.S. controlled content. In making this calculation for foreign-made 
software, you must make an estimate of future software sales of that 
foreign software if it is commingled with or incorporated with the 
U.S. code. The value of the U.S. code commingled with or 
incorporated into the foreign made software shall be divided by the 
total selling price of all foreign-made software units already sold, 
plus the total selling price of all foreign-made software units 
estimated for future sales.
* * * * *

PART 736--[AMENDED]

    21. Section 736.2 is amended, as follows:
    a. By revising paragraph (b)(2)(ii);
    b. By revising paragraph (b)(6)(ii); and
    c. By revising paragraph (b)(8)(i).


Sec. 736.2  General prohibitions and determination of applicability.

* * * * *
    (b) * * *
    (2) * * *
    (ii) Each License Exception described in part 740 of the EAR 
supersedes General Prohibition Two if all terms and conditions of a 
given License Exception are met by the exporter or reexporter.
* * * * *
    (6) * * *
    (ii) License Exceptions to General Prohibition Six are described in 
part 746 of the EAR, on Embargoes and Other Special Controls. Unless a 
License Exception or other authorization is authorized in part 746 of 
the EAR, the License Exceptions described in part 740 of the EAR are 
not available to overcome this general prohibition.
* * * * *
    (8) * * *
    (i) Unlading and shipping in transit. You may not export or 
reexport an item through or transit through a country listed in 
paragraph (b)(8)(ii) of this section unless a License Exception or 
license authorizes such an export or reexport directly to such a 
country of transit.
* * * * *

PART 738--[AMENDED]

    22. Section 738.2 is amended:
    a. By adding a new paragraph (d)(1)(iii); and
    b. By adding the entry ``SI Significant Items'' following ``XP 
Computers'' in paragraph (d)(2)(i)(A)
    c. By revising paragraph (d)(2)(ii), as follows:


Sec. 738.2  Commerce Control List (CCL) structure.

* * * * *
    (d) * * *
    (1) * * *
    (iii) The last digit within each entry (e.g., 3A001) is used for 
the sequential numbering of ECCNs to differentiate between entries on 
the CCL.
    (2) * * *
    (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 term ``Yes'' (followed in some 
instances by the scope of Yes) appears next to each available ECCN-
driven License Exception. The term ``N/A'' will be noted for License 
Exceptions that are not available within a particular entry.

[[Page 25457]]

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. The list 
of License Exceptions contained within each ECCN is not an all-
exclusive list. Other License Exceptions, not based on particular 
ECCNs, may be available. Consult part 740 of the EAR to determine 
eligibility for non-ECCN-driven License Exceptions.
* * * * *

PART 740--[AMENDED]

    23. Section 740.1 is amended:
    a. By revising paragraph (a);
    b. By revising the citation reference ``Sec. 732.6'' to read 
``Sec. 736.2'' in paragraph (d)(2). [two revisions]; and
    c. By revising paragraph (e) to read as follows:


Sec. 740.1  Introduction.

* * * * *
    (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 Prohibition 
One, Two, or Three, as indicated under one or more of the Export 
Control Classification Numbers (ECCNs) in the Commerce Control List 
(CCL) in Supplement No. 1 to part 774 of the EAR. If your export or 
reexport is subject to General Prohibitions Six for embargoed 
destinations, refer to part 746 of the EAR to determine the 
availability of any License Exceptions. Special commodity controls 
apply to short supply items. License 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 to General Prohibition Five, 
consult part 744 of the EAR. If your export or reexport is subject to 
General Prohibitions Four, Seven, Eight, Nine, or Ten, then no License 
Exceptions apply.
* * * * *
    (e) Destination Control Statement. You may be required to enter an 
appropriate Destination Control Statement on commercial documents in 
accordance with Destination Control Statement requirements of 
Sec. 758.5 and Sec. 758.6 of the EAR.
* * * * *
    24. Section 740.2 is amended by revising paragraph (a) to read as 
follows:


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 or reexport is subject to one of the ten General 
Prohibitions, is not eligible for a License Exception, and has not been 
authorized by BXA.
    (3) 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. 740.11(b)(2)(ii) of this part, Governments 
(GOV)).
    (4) The commodity you are shipping is a specially designed crime 
control and detection instrument or equipment 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. 740.14(e) of this part (shotguns and shotgun shells).
* * * * *
    25. Section 740.4 is revised to read as follows:


Sec. 740.4  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 to the ultimate destination for national security reasons 
and identified by ``GBS--Yes'' on the CCL. License Exception GBS may be 
used to export or reexport to eligible countries any commodity (but not 
software) eligible for License Exception CIV.
    26. Section 740.9 is amended:
    a. By revising the last two sentences of paragraph (a)(2)(i);
    b. By revising paragraph (a)(2)(iv);
    c. By revising paragraph (a)(2)(viii)(A) introductory text;
    d. By revising paragraph (b)(1)(ii); and
    e. By revising paragraph (b)(2)(ii)(B), as follows:


Sec. 740.9  Temporary imports, exports, and reexports (TMP).

* * * * *
    (a) * * *
    (2) * * *
    (i) Tools of trade. * * * No tools of trade may be taken to Country 
Group E:2 and Sudan, only the 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.)
* * * * *
    (iv) Inspection and calibration. Commodities to be inspected, 
tested, calibrated or repaired abroad may be exported or reexported to 
all destinations under this section, except Country Group E:2, Sudan or 
Syria.
* * * * *
    (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, 
or Sudan (see Supplement No. 1 to part 740) if the commodities:
* * * * *
    (b) * * *
    (1) * * *
    (ii) Items may not be exported to Country Group E:2 or Sudan under 
this section.
* * * * *
    (2) * * *
    (ii) * * *
    (B) Exports to Country Group E:2 or Sudan (see Supplement No. 1 to 
part 740); or
* * * * *
    27. Section 740.11 is amended by revising paragraphs (b)(2)(iii) 
and (b)(2)(iv) to read as follows:


Sec. 740.11  Governments and international organizations (GOV).

* * * * *
    (b) * * *
    (2) * * *
    (iii) Items for official use within national territory by agencies 
of cooperating governments. This provision 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) Commercial communications satellites controlled under 9A004 and 
hot section technology for the development, production or overhaul of 
commercial aircraft engines controlled under 9E003.a.1 through a.12, 
and .f, and related controls;
    (B) Computers with a CTP greater than 10,000 MTOPS when destined 
for Argentina, Hong Kong, South Korea, Singapore or Taiwan;
    (C) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons;
    (D) Regional stability items controlled under Export Control 
Classification

[[Page 25458]]

Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002, 7D001, 7E001, 7E002, 
and 7E101 as described in Sec. 742.6(a)(1) of the EAR; or
    (E) Encryption items controlled for EI reasons as described in the 
Commerce Control List.
    (iv) Diplomatic and consular missions of a cooperating government. 
This provision 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) Commercial communications satellites controlled under 9A004 and 
hot section technology for the development, production or overhaul of 
commercial aircraft engines controlled under 9E003.a.1 through a.12, 
and .f, and related controls;
    (B) Computers with a CTP greater than 10,000 MTOPS when destined 
for Argentina, Hong Kong, South Korea, Singapore or Taiwan;
    (C) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons;
    (D) 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; or
    (E) Encryption items controlled for EI reasons as described in the 
Commerce Control List.
* * * * *
    28. Section 740.12(b)(1) is amended by revising the phrase 
``exports by groups'' to read ``exports or reexports by groups''.
    29. Section 740.13 is amended by revising paragraph (d)(3)(i) to 
read as follows:


Sec. 740.13  Technology and software--unrestricted (TSU).

* * * * *
    (d) * * *
    (3) * * *
    (i) Destinations. ``Mass market'' software is available to all 
destinations except Cuba, Iran, Iraq, Libya, North Korea, Sudan, and 
Syria.
* * * * *
    30. Section 740.14 is amended:
    a. By revising paragraph (a);
    b. By revising the introductory text to paragraph (b); and
    c. By revising the last two sentences of paragraph (d) to read as 
follows:


Sec. 740.14  Baggage (BAG).

    (a) Scope. This License Exception authorizes individuals leaving 
the United States and crew members of exporting or reexporting carriers 
to take to any destination, as personal baggage, the classes of 
commodities and software described in this section.
    (b) Eligibility. Individuals leaving the United States may export 
or reexport any of the following commodities or software to any 
destination or series of destinations. Crew members may export or 
reexport only commodities and software described in paragraphs (b)(1) 
and (b)(2) of this section to any destination.
* * * * *
    (d) Special provision: unaccompanied baggage. * * * However, 
commodities controlled for CB, MT, NS, or NP may not be exported under 
this License Exception to Country Groups D:1, D:2, D:3, D:4, E:2, or 
Sudan. (See Supplement No. 1 to part 740.)
* * * * *
    31. Section 740.16 is amended:
    a. By revising paragraph (a)(2);
    b. By revising paragraph (a)(3)(ii); and
    c. By adding a new paragraph (j), as follows:


Sec. 740.16  Additional permissive reexports (APR).

* * * * *
    (a) * * *
    (2) The commodities being reexported are not controlled for NP, CB, 
MT, SI, or CC reasons; and
    (3) * * *
    (ii) A country in Country Group D:1 (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.
* * * * *
    (j) Reexports of items controlled by NP Column 1 (see Supplement 
No. 1 to part 774 of the EAR) to, among, and from countries described 
in Country Group A:4 (see Supplement No. 1 to part 740), except:
    (1) Reexports from countries that are not identified in Country 
Group A:1 of items that are controlled for NS reasons to destinations 
in Country Group D:1; and
    (2) Reexports to destinations in Country Group E:2 and Country 
Group D:2.
    32. Supplement No. 1 to part 740 is amended:
    a. In Country Group B to add ``Rwanda'' and ``Serbia and 
Montengro'' in alphabetical order;
    b. In Country Group D by removing the reference under the 
``Country'' heading for ``South Africa'' and by removing the 
corresponding ``x'' under the heading ``[D:3] Chemical & Biological''; 
and
    c. In Country Group E by removing the reference under the 
``Country'' heading for ``Serbia and Montengro'' and by removing the 
corresponding ``x'' under the heading ``UN Embargo''.

PART 742--[AMENDED]

    33. Section 742.1 is amended:
    a. By revising the phrase ``maintains controls under EAA section 
6(j) of the EAA'' to read ``maintains controls under section 6(j) of 
the EAA'' in the third sentence of paragraph (d); and
    b. By revising the citation reference ``Sec. 742.3(b)(3)'' to read 
``Sec. 742.2(b)(3)'' in paragraph (f).
    34. Section 742.2 is amended:
    a. By revising paragraph (a)(1)(ii);
    b. By revising paragraph (a)(2)(iii) introductory text;
    c. By revising paragraph (a)(3)(ii); and
    d. By revising the phrase ``individual license applications:'' to 
read ``license applications:'' in paragraph (b)(2), as follows:


Sec. 742.2  Proliferation of chemical and biological weapons.

    (a) * * *
    (1) * * *
    (ii) Technology (ECCNs 1E001 and 1E391) for the production and/or 
disposal of microbiological commodities described in paragraph 
(a)(1)(i) of this section.
    (2) * * *
    (iii) Technology (ECCNs 1E001 and 1E391) for the production and/or 
disposal of chemical precursors described in ECCN 1C350, and technology 
(ECCNs 1E001 and 1E350) involving the following for facilities designed 
or intended to produce chemicals described in 1C350:
* * * * *
    (3) * * *
    (ii) Technology (ECCNs 2E001, 2E002 and 2E301) for development, 
production, or use of the commodities covered in ECCNs 2B350, 2B351 and 
2B352.
* * * * *
    35. Section 742.7 is amended:
    a. By revising paragraph (a)(1);
    b. By revising paragraph (a)(2); and
    c. By revising paragraph (a)(3) to read as follows:


Sec. 742.7  Crime Control.

    (a) * * *
    (1) Crime control and detection instruments and equipment and 
related technology and software identified in the appropriate ECCNs on 
the CCL under CC Column 1 in the Country Chart column of the ``License 
Requirements'' section. A license is required to countries listed in CC

[[Page 25459]]

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, 0A983, 0A984, 0A985, 0E984, 1A984, 3A980, 3A981, 3D980, 3E980, 
4A003 (for fingerprint computers only), 4A980, 4D001 (for fingerprint 
computers only), 4D980, 4E001 (for fingerprint computers only), 4E980, 
6A002 (for police-model infrared viewers only), 6E001 (for police-model 
infrared viewers only), and 9A980.
    (2) Shotguns with a barrel length greater than or equal to 24 
inches, identified in ECCN 0A984 on the CCL under CC Column 2 in the 
Country Chart column of the ``License Requirements'' section regardless 
of end-user to countries listed in CC Column 2 (Supplement No. 1 part 
738 of the EAR).
    (3) Shotguns with a barrel length greater than or equal to 24 
inches, identified in ECCN 0A984 on the CCL under CC Column 3 in the 
Country Chart column of the ``License Requirements'' section only if 
for sale or resale to police or law enforcement entities in countries 
listed in CC Column 3 (Supplement No. 1 part 738 of the EAR).
* * * * *
    36. Section 742.9 is amended by revising paragraph (b)(1)(iv) to 
read as follows:


Sec. 742.9  Anti-terrorism: Syria.

    (b) * * *
    (1) * * *
    (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 U.S. content, except for ECCNs 6A990, 7A994, and 9A994, 
for purposes of such licensing requirements.
* * * * *
    37. Supplement No. 1 to part 742 is amended:
    a. By revising paragraph (9)(ii); and
    b. By revising paragraph (9)(iii), to read as follows:

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

* * * * *
    (9) * * *
    (ii) Equipment and materials (for producing biological agents) 
described in ECCNs 1C351, 1C352, 1C353, 1C354, and 2B352; and
    (iii) Technology (for the development, production, and use of 
equipment described in ECCNs 1C351, 1C352, 1C353, 1C354, 2B350, 
2B351, and 2B352) described in ECCNs 2E001, 2E002, and 2E301.
* * * * *

PART 744--[AMENDED]

    38. Section 744.2 is amended by revising the citation reference 
``Sec. 740.12(a) and (b)'' to read ``Sec. 740.13(a) and (b)'' (2 
revisions), in paragraph (c).
    39. Section 744.3 is amended by removing the phrase ``to any 
destination, including Canada,'' in paragraph (a).
    40. Section 744.4 is amended by removing the phrase ``to any 
destination, including Canada,'' in paragraph (a).
    41. Section 744.5 is amended by removing the phrase ``to any 
destination, including Canada,'' in paragraph (a).
    42. Section 744.6 is amended:
    a. By revising paragraph (a)(1)(i); introductory text and
    b. By revising paragraph (e), as follows:


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

    (a) * * *
    (1) * * *
    (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 any item where that person knows that such items:
* * * * *
    (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 nuclear explosive devices, chemical 
or biological weapons, or of missiles.
    43. Supplement No. 1 to part 744 is removed and reserved.
    44. Supplement No. 3 to part 744 is amended by adding the country 
``Canada'' in alphabetical order.

PART 746--[AMENDED]

    45. Section 746.1 is amended:
    a. By revising the introductory paragraph;
    b. By revising paragraph (b); and
    c. By revising the first sentence of paragraph (c), as follows:


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 U.S. 
government policies. Two categories of controls are included in this 
part.
* * * * *
    (b) Rwanda. The second category of controls that apply to Rwanda 
are supplemental to the controls described in the Country Chart in part 
738 of the EAR. Such controls 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 
the Office of Defense Trade Controls in the Department of State. * * *
* * * * *
    46. Section 746.2 is amended, as follows:
    a. By revising paragraph (a)(1); and
    b. By revising the phrase ``Supplement No. 3 to part 734'' to read 
``Supplement No. 2 to part 734'' in paragraph (b)(3)(ii).


Sec. 746.2  Cuba.

    (a) * * *
    (1) License Exceptions. You may export or reexport 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 and reexports (TMP) by the news media (see 
Sec. 740.9(a)(2)(viii) of the EAR).
    (ii) Operation technology and software (TSU) for legally exported 
commodities (see Sec. 740.13(a) of the EAR).
    (iii) Sales technology (TSU) (see Sec. 740.13(b) of the EAR).
    (iv) Software updates (TSU) for legally exported software (see 
Sec. 740.13(c) of the EAR).
    (v) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (see Sec. 740.10(a) of the EAR).

[[Page 25460]]

    (vi) Baggage (BAG) (see Sec. 740.14 of the EAR).
    (vii) Governments and international organizations (GOV) (see 
Sec. 740.11 of the EAR).
    (viii) Gift parcels and humanitarian donations (GFT) (see 
Sec. 740.12 of the EAR).
    (ix) Items in transit (TMP) from Canada through the U.S. (see 
Sec. 740.9(b)(1)(iv) of the EAR).
    (x) Aircraft and vessels (AVS) for certain aircraft on temporary 
sojourn (see Sec. 740.15(a) of the EAR).
    (xi) Permissive reexports of certain spare parts in foreign-made 
equipment (see Sec. 740.16(h) of the EAR).
* * * * *
    47. Section 746.3 is amended by revising paragraph (a)(1) to read 
as follows:


Sec. 746.3  Iraq.

    (a) * * *
    (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. 740.14 of the EAR).
    (ii) Governments and international organizations (GOV) (see 
Sec. 740.11 of the EAR).
* * * * *
    48. Section 746.4 is amended:
    a. By revising paragraph (b);
    b. By revising paragraph (c)(3) introductory text;
    c. By redesignating paragraph (e) as paragraph (d); and
    d. By redesignating paragraph (f) as paragraph (e), as follows:


Sec. 746.4  Libya.

* * * * *
    (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. 740.14 of the EAR).
    (ii) Governments and international organizations (GOV) (see 
Sec. 740.11 of the EAR).
    (iii) Gift parcels (GFT) (see Sec. 740.12(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 and reexports (TMP): reexports by the news 
media (see Sec. 740.9(a)(2)(viii) of the EAR).
    (B) Operation technology and software (TSU) for legally exported 
commodities (see Sec. 740.13(a) of the EAR).
    (C) Sales technology (TSU) (see Sec. 740.13(b) of the EAR).
    (D) Software updates (TSU) for legally exported software (see 
Sec. 740.13(c) of the EAR).
    (E) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.10(a) of the EAR).
    (F) Baggage (BAG) (Sec. 740.14 of the EAR).
    (G) Aircraft and vessels (AVS) for vessels only (see 
Sec. 740.15(c)(1) of the EAR).
    (H) Governments and international organizations (GOV) (see 
Sec. 740.11 of the EAR).
    (I) Gift parcels and humanitarian donations (GFT) (see Sec. 740.12 
of the EAR).
    (J) Permissive reexports of certain spare parts in foreign-made 
equipment (see Sec. 740.16(h) of the EAR).
    (c) * * *
    (3) Notwithstanding the presumptions of denial in paragraphs (c)(2) 
(i) through (iii) of this section, licenses will generally be issued 
for items not included in paragraphs (c)(2) (iv) through (vii) of this 
section when the transaction involves:
* * * * *
    49. Section 746.5 is amended by revising paragraphs (a)(1) and 
(b)(1) to read as follows:


Sec. 746.5  North Korea.

    (a) * * *
    (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 and reexports (TMP) by the news media (see 
Sec. 740.9(a)(2)(viii) of the EAR).
    (ii) Operation technology and software (TSU) for legally exported 
commodities (see Sec. 740.13(a) of the EAR).
    (iii) Sales technology (TSU) (see Sec. 740.13(b) of the EAR).
    (iv) Software updates (TSU) for legally exported software (see 
Sec. 740.13(c) of the EAR).
    (v) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.10(a) of the EAR).
    (vi) Baggage (BAG) (Sec. 740.14 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. 740.15(a) and (b)(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. 740.11 of the EAR).
    (ix) Gift parcels and humanitarian donations (GFT) (see Sec. 740.12 
of the EAR).
    (x) Permissive reexports of certain spare parts in foreign-made 
equipment (see Sec. 740.16(h) of the EAR).
* * * * *
    (b) Licensing policy. * * *
    (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 humanitarian donation provisions of 
License Exception GFT (see Sec. 740.12(b) of the EAR). Such 
applications include single transactions involving exports to meet 
emergency needs.
* * * * *

PART 748--[AMENDED]

    50. Section 748.3 is amended:
    a. By revising the phrase ``limited to 5 items'' to read ``limited 
to six items'' in paragraph (b)(1); and
    b. By revising paragraph (b)(2), as follows:

[[Page 25461]]

Sec. 748.3  Classification and Advisory Opinions.

* * * * *
    (b) * * *
    (2) When submitting a Classification Request, you must complete 
Blocks 1 through 5, 14, 22(a), (b), (c), (d), and (i), 24, and 25 on 
Form BXA-748P. You must provide a recommended classification in Block 
22(a) and explain the basis for your recommendation based on the 
technical parameters specified in the appropriate ECCN in Block 24. If 
you are unable to determine a recommended classification for your item, 
include an explanation in Block 24, identifying the ambiguities or 
deficiencies that precluded you from making a recommended 
classification.
* * * * *
    51. Section 748.9 is amended:
    a. By adding a new paragraph (a)(7);
    b. By revising paragraph (b)(1)(ii);
    c. By revising paragraph (b)(2)(ii); and
    d. By revising paragraph (c)(2).


Sec. 748.9  Support documents for license applications.

    (a) * * *
    (7) The license application is submitted to export or reexport 
software or technology, except for software or technology subject to 
national security controls destined for Bulgaria, Czech Republic, 
Hungary, Poland, Romania, or Slovakia.
    (b) * * *
    (1) * * *
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee and Purchaser. Read the remainder of this section beginning 
with paragraph (c) of this section, then proceed to Sec. 748.11 of the 
EAR.
    (2) * * *
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee and Purchaser. Read the remainder of this section beginning 
with paragraph (c) of this section, then proceed to Sec. 748.11 of the 
EAR.
    (c) * * *
    (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 applicant receives the manually-
signed original within 60 days from the date the original is signed by 
the ultimate consignee.
* * * * *
    52. Section 748.10 is amended:
    a. By revising paragraph (b)(1); and
    b: By revising paragraph (b)(3) introductory text, as follows:


Sec. 748.10  Import and End-User Certificates.

* * * * *
    (b) * * *
    (1) Any commodities on your license application are controlled for 
national security (NS) reasons, or you have software or technology that 
is controlled for NS reasons and is destined for Bulgaria, Czech 
Republic, Hungary, Poland, Romania, or Slovakia.
    (2) * * *
    (3) Your license application involves the export of commodities and 
software classified in a single entry on the CCL, the total value of 
which exceeds $5,000.
* * * * *
    53. Section 748.11 is amended by revising paragraph (e)(1)(ii) to 
read as follows:


Sec. 748.11  Statement by Ultimate Consignee and Purchaser.

* * * * *
    (e) * * *
    (1) * * *
    (ii) Multiple. This statement is to be considered a part of every 
license application submitted by [name and address of applicant] until 
two years from the date this statement is signed.
* * * * *
    54. Section 748.12 is amended by revising paragraph (b) to read as 
follows:


Sec. 748.12  Special provisions for support documents.

* * * * *
    (b) Reexports. If a support document would be required for an 
export from the United States, 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).
* * * * *
    55. Section 748.13 is amended by revising the first sentence of 
paragraph (a)(1) to read as follows:


Sec. 748.13  Delivery Verification (DV).

    (a) * * *
    (1) BXA may request the licensee to obtain verifications of 
delivery on a selective basis. * * *
* * * * *
    56. Supplement No. 1 to part 748 is amended:
    a. By revising the introductory text;
    b. By revising Block 5;
    c. By revising the heading of Block 6;
    d. By revising the phrase ``box'' to read ``Block'' in Block 9;
    e. By revising Block 10;
    f. By revising Block 11;
    g. By revising Block 14;
    h. By revising Blocks 16 through 21;
    i. By revising the introductory text and paragraphs (b) through (f) 
of Block 22;
    j. By revising Block 24; and
    k. By revising Block 25, as follows:

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. Enter only one 
typed line of text per Block or line. 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., 022-358-0-123456F). If you are completing this form to 
request classification of your item, you must complete Blocks 1 
through 5, 14, 22(a), (b), (c), (d), and (i), 24, and 25 only.
* * * * *
    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. 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 the procedures described in 
part 752 of the EAR, mark the Box labeled ``Special Comprehensive 
License'' with an (X).
    Block 6: Documents submitted with Application. * * *
* * * * *
    Block 10: Resubmission Application Control Number. If your 
original application was returned without action (RWA), provide the 
Application Control Number. This does not apply to applications 
returned without being registered.
    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 modification that is not excepted in 
Sec. 750.7(c) of the EAR, to the license as originally approved, 
enter the original license number and complete Blocks 12 through 25, 
where applicable. Include a statement in Block 24 regarding what 
changes you wish to make to the original license.
* * * * *
    Block 14: Applicant. Enter the applicant's name, street address, 
city, state/country, and postal code. Provide a complete street 
address. P.O. Boxes are not acceptable. 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 Employee 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: * * *
    Block 16: Purchaser. Enter the purchaser's complete name, street 
address, city, country,

[[Page 25462]]

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 complete name 
and address. If your proposed transaction does not involve a 
separate purchaser, leave Block 16 blank.
    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, enter the complete 
name and address. If your proposed transaction does not involve use 
of an intermediate consignee, enter ``None''. If your proposed 
transaction involves more than one intermediate consignee, provide 
the same information in Block 24 for each additional intermediate 
consignee.
    Block 18: Ultimate Consignee. This Block must be completed if 
you are submitting a license application. 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 item for the end-use 
designated in Block 21. Refer to Sec. 748.5(e) of this part for a 
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-user and end-use is clearly identified in Block 21 or in the 
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. Provide a complete street address, P.O. Boxes are not 
acceptable. 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, use Form BXA-748P-B to 
identify each additional end-user. 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. Provide a 
complete street address, P.O. Boxes are not acceptable. 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.
    Block 21. Specific End-Use: This Block must be completed if you 
are submitting a license application. 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--vague descriptions such 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). If you wish to export, reexport, or have BXA classify more 
than one item, use Form BXA-748P-A for additional items.
    (a) * * *
    (b) CTP. You must complete this Block only 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.
    (c) Model Number. Enter the correct model number for the 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.
    (e) Quantity. Identify the quantity to be exported or 
reexported, in terms of the ``Unit'' identified for the ECCN entered 
in Block 22(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 the trade must also be shown on the 
license application. This Block may be left blank on license 
applications only if the ``Unit'' for the ECCN entered in Block 
22(a) is shown as ``N/A'' on the CCL.
* * * * *
    Block 24: Additional Information. Enter additional data 
pertinent to the application as required in the EAR. Include special 
certifications, names of parties of 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 Application Control Number from the original 
application.
    If you are requesting 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 have not identified a recommended 
classification in Block 22(a), you must state the reason you cannot 
determine the appropriate classification, identifying anything in 
the regulations that you believe 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 in this Block. Rubber-stamped or 
electronic signatures are not acceptable. 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. Type both 
your name and title in the space provided.

    57. Supplement No. 2 to part 748 is amended:
    a. By revising the introductory text of paragraph (d) and the NOTE 
following it;
    b. By revising the introductory text of paragraph (e);
    c. By revising the introductory text of paragraph (g)(1);
    d. By revising paragraph (g)(2)(i);
    e. By revising paragraph (o)(3)(i); and
    f. By revising the introductory text of paragraph (p), as follows:

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

* * * * *
    (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 for gift parcels in License Exception GFT (see 
Sec. 740.12(a) of the EAR).
* * * * *
    (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 the intransit provisions of License 
Exception TMP (see Sec. 740.9(b)(1) of the EAR), you must provide 
the following information with your license application:
* * * * *
    (g) * * *
    (1) Statement requirement. If a license is required to export or 
reexport items described in Sec. 742.3 or Sec. 744.4 of the EAR, or 
any other item (except those controlled for short supply reasons) 
where the item is intended for a nuclear end-use, prior to 
submitting a license application, you must obtain a signed written 
statement from the end-user certifying the following:
* * * * *
    (2) * * *
    (i) In Block 7, place an (X) in the box titled ``Nuclear 
Certification'';
* * * * *
    (o) * * *

[[Page 25463]]

    (3) * * *
    (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), upon 
request, you must provide BXA a copy of the 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, directly or indirectly, to a country listed in Country 
Group D:1 or E:2 (see Supplement No. 2 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.
* * * * *
    (p) Temporary exports or reexports. If you are submitting a 
license application for the temporary export or reexport of an item 
(not eligible for the temporary exports and reexports provisions of 
License Exception TMP (see Sec. 740.9(a) of the EAR)) you must 
include the following certification in Block 24:
* * * * *
    58. In Supplement No. 4 to part 748, the IC/DV Authorities column 
for ``China, PRC People's Republic of'' is amended by revising the 
phrase ``Telephone: 553031'' to read ``Telephone: 651-97-355''.
    59. In Supplement No. 4 to part 748, the IC/DV Authorities column 
for ``Italy'' is amended by revising the phrase ``Div. III, Rome'' to 
read ``Div. III, Rome or:'' and revising the phrase ``import where 
takes place'' to read ``where import takes place''.
    60. Supplement No. 5 to part 748 is amended by revising paragraph 
(a)(6)(vii) to read as follows:

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

    (a) * * *
    (6) * * *
    (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 intransit provisions of License Exception TMP 
(see Sec. 740.9(b)(1) 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.
* * * * *

PART 750--[AMENDED]

    61. Section 750.1 is revised to read as follows:


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 and the applicable processing times for various types of 
applications. Information related to the issuance, denial, revocation, 
or suspension of a license or license application is provided along 
with the procedures on obtaining a duplicate or replacement license, 
the transfer of a license and shipping tolerances available on 
licenses. This part also contains instructions on obtaining the status 
of any pending application.
    62. Section 750.4 is amended:
    a. By revising the first sentence of paragraph (b)(1); and
    b. By revising the phrase ``terrorist supporting'' to read 
``terrorist-supporting'' in paragraph (b)(6) introductory text, as 
follows:


Sec. 750.4  Procedures for processing license applications.

* * * * *
    (b) * * *
    (1) Agreement by the applicant to the delay. BXA may request 
applicants to 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. * * 
*
* * * * *
    63. Section 750.5 is amended by revising paragraph (a) to read as 
follows:


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 application pending at BXA. Press ``0'' on your keypad for online 
instructions or ``9'' for the letter ``Z''. Requests for status may be 
made only by the applicant or the applicant's agent.
* * * * *
    64. Section 750.7 is amended:
    a. By revising the phrase ``approved by the BXA,'' to read 
``approved by BXA,'' in paragraph (a); and
    b. By revising the parenthetical phrase ``(See Sec. 748.5(g) of the 
EAR)'' to read ``(see Sec. 748.4(h) of the EAR)'' in paragraphs (g) 
introductory text and (g)(1).
    65. Section 750.10(c) is amended by revising the phrase ``pending 
notification by the BXA'' to read ``pending notification by BXA''.

PART 752--[AMENDED]

    66. Section 752.1(a)(1) is amended by revising the phrase 
``described in part 734 of the EAR.'' to read ``described in part 736 
of the EAR.''.
    67. Section 752.3 is amended by revising paragraphs (a)(2) and 
(a)(3) to read as follows:


Sec. 752.3  Eligible items.

    (a) * * *
    (2) Items controlled by ECCNs 1C351, 1C352, 1C353, 1C354, 1C991, 
1E001, 1E350, 1E391, 2B352, 2E001, 2E002, and 2E301 on the CCL 
controlled for CB reasons;
    (3) Items controlled by ECCNs 1C350, 1C995, 1D390, 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);
* * * * *
    68. Section 752.5 is amended:
    a. By revising the introductory text of paragraph (c)(8)(i);
    b. By revising the introductory text and certification of paragraph 
(c)(8)(ii); and
    c. By revising the introductory text of paragraph (c)(8)(iii) to 
read as follows:


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

    (c) * * *
    (8) * * *
    (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 provision described in Sec. 740.8(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.
* * * * *
    (ii) Chemicals and chemical equipment certification. If you are 
requesting authority to export chemicals or chemical equipment eligible 
for the

[[Page 25464]]

SCL, you must obtain a signed written statement on company letterhead 
from the proposed consignee(s) and end-user(s) (except those located in 
Country Group A:3) (see Supplement No. 1 to part 740 of the EAR) 
certifying the following:

    No chemicals or chemical 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 retransferred, resold, or reexported to a party 
who is not the end-user.

    (iii) Nuclear nonproliferation certification. If you are requesting 
the export or reexport under the EAR of items controlled for nuclear 
nonproliferation reasons described in Sec. 744.2(a) of the EAR, prior 
to submitting an SCL application, you must obtain a signed written 
statement on company letterhead from the proposed consignee(s) and end-
user(s) certifying the following:
* * * * *
    69. Section 752.6 is amended by revising paragraph (b)(1) to read 
as follows:


Sec. 752.6  Reexports.

* * * * *
    (b) * * *
    (1) Transferring, reselling, or reexporting under your SCL any 
chemicals or chemical equipment 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
* * * * *
    70. Section 752.9 is amended by revising the introductory text of 
paragraph (a)(2) to read as follows:


Sec. 752.9  Action on SCL applications.

    (a) * * *
    (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. In addition, mark ``Special Comprehensive 
License'' in Block 5, place an ``x'' in ``Letter of Explanation'' in 
Block 6, and mark ``other'' in Block 8. 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 your 
company letterhead indicating:
* * * * *
    71. Section 752.10 is revised to read as follows:


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. Changes and 
notifications of license holder information must be initiated by 
submitting Form BXA-748P. Changes and notifications of consignee 
information must be initiated by submitting Form BXA-752.
    (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 ``other'' in Block 8. In Block 
9, include your SCL number. Briefly indicate the purpose of the change 
in Block 24 (i.e., a change in company name). 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 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 3, mark ``change an existing consignee'' and provide the new 
consignee information in Block 4. In Block 9, explain change of address 
from ``Address A'' to ``Address B''. Also, complete Block 10 and the 
SCL holder signature Block information.
    (3) Addition of new consignee. You must submit to BXA Form BXA-752 
for requests to add consignees to an SCL. Complete Form BXA-752 in 
accordance with the instruction in Supplement No. 3 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 Block 10 and the SCL holder 
signature block information.
    (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-748P 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 an ``x'' in the ``Special Comprehensive License'' box 
in Block 5, and ``other'' in Block 8. Include your SCL number in Block 
9. In Block 24, enter ``add ECCN''. Complete items (a) and (j) in Block 
22 and in 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. In Block 24, insert the phrase ``add ECCNs 
on attached From BXA 748P-A. Complete Block 1 on Form BXA-748P-A by 
including the

[[Page 25465]]

``Application Control Number'' (found on Form BXA-748P). Complete Block 
21 and 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 add end-users. You must submit to BXA Form BXA-752 
and Form BXA-748P-B to add or change end-users to consignee 
authorizations. When you request multiple ``types of requests'' (i.e., 
additions or changes) on a single Form BXA-752; you must specify in 
Block 9, the type of request for each end-user. Example: end-user XXX 
is to be ``added'' and end-user AAA is to be ``changed'' from ``end-
user AAA'' to ``end-user ABA''.
    (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 insert the phrase ``To add an 
end-user'' or the phrase ``To change an end-user''. Complete Block 10 
and include the SCL holder signature block information.
    (ii) Form BXA-748P-B. On Form BXA-748-B, complete Blocks 1 and 19. 
In Block 21, cite the end-user requirement or condition (i.e., end-user 
XXX is requested in compliance with Sec. 752.5(c)(8)(ii) of this part, 
which requires prior authorization to reexport chemicals under the 
SCL). Also, list the items (by ECCN and by description) that each 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 ``other'' in Block 8. In Block 9, include your SCL number. 
Briefly indicate the purpose of the change in Block 24. 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 each approved consignee to attach the copy of the 
validated form to their validated Form BXA-752.
    (2) Deletion of consignees. You must submit to BXA Form BXA-752 if 
you remove a consignee from your SCL. Complete Block 3.C. Indicate your 
consignee number in Block 4 and your SCL case number in Block 5. 
Explain the reason for the action in Block 9. Complete Block 10 and the 
SCL holder signature information. 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. Mark and 
``x'' in ``other'' in Block 8 and indicate the SCL number in Block 9. 
Include the SCL holder information number 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 1. Mark and ``x'' in ``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 Block 10 and the SCL holder signature block information.
    (iii) Transfers and SCLs after control changes. Note that under 
Sec. 750.10(a) of the EAR you may not transfer a license--including a 
Special Comprehensive License--except with the prior written approval 
of BXA. In addition, BXA reserves the right to modify, revoke, or 
suspend an SCL in the event of a change in control of the previously 
approved SCL holder or consignee(s). In reviewing requests to transfer 
an SCL or consignee authority under an SCL and in reviewing changes in 
control of an SCL holder or approved consignee, BXA will consider the 
reliability of the new parties.
    (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. You cannot add and delete countries on the 
same forms. 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 1. 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. Complete Block 
10 and the SCL holder signature block information.
    (ii) Form BXA-752-A. Complete Blocks 1, 2, 3, and 5. Mark each 
country that you are removing from the reexport territory with an 
``x''. Mark an ``x'' in ``Other Specify'' and insert ``delete''.
    (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-748P and Form BXA-748P-A, if 
applicable. The SCL holder must send a copy of each validated form to 
all applicable consignees and attach a copy to their BXA-752.
    (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 5. Mark 
``Special Comprehensive License'' in Block 5 and mark ``other'' in 
Block 8. Include your SCL number in Block 9. State ``delete ECCN'' in 
Block 24. Complete items (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, except in Block 24, state ``delete ECCNs on 
attached BXA-748P-A''. Complete Form BXA 748P-A by including the 
``application control number'' (found on Form BXA-748P) in Block 1. 
Complete 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 if you remove end-users from consignee authorizations. (Use 
Form BXA-748P-B, if additional space is needed.) 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 instructions that 
may be necessary. 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 1 and 3.B, 
``change an existing consignee''. Include the consignee number in Block 
4. Include the SCL case number in Block 5. In Block 9, include the 
phrase ``to remove an end-user(s)'' followed by the name/address 
information. Complete Block 10 and the SCL holder signature Block 
information.
    (ii) Form BXA-748P-B. If there was not enough space on Form BXA-
752,

[[Page 25466]]

Block 9, you may continue the information on Form BXA-748P-B, in Block 
24. Complete the information in Block 1. Do not complete Block 19. 
Block 19 is only used to add end-users.
    (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.
    72. Section 752.11 is amended by revising paragraph (c)(13)(i) to 
read as follows:


Sec. 752.11  Internal Control Programs.

* * * * *
    (c) * * *
    (13) * * *
    (i) The signs of potential diversion that you should take into 
consideration include, but are not limited to, the following:
    (A) The customer or purchasing agent is reluctant to offer 
information about the end-use (or end-user) of a product.
    (B) 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.
    (C) 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.
    (D) The customer has little or no business background. For example, 
financial information unavailable from normal commercial sources and 
corporate principals unknown by trade sources.
    (E) The customer is willing to pay cash for a very expensive item 
when the terms of the sale call for financing.
    (F) The customer is unfamiliar with the product's performance 
characteristics but still wants the product.
    (G) Routine installation, training or maintenance services are 
declined by the customer.
    (H) Delivery dates are vague, or deliveries are planned for out-of-
the-way destinations.
    (I) A freight forwarding firm is listed as the product's final 
destination.
    (J) The shipping route is abnormal for the product and destination.
    (K) Packaging is inconsistent with the stated method of shipment or 
destination.
    (L) When questioned, the buyer is evasive or unclear about whether 
the purchased product is for domestic use, export, or reexport.
    (M) Customer uses only a ``P.O. Box'' address or has facilities 
that appear inappropriate for the items ordered.
    (N) 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).
    (O) Customer is known to have, or is suspected of having 
unauthorized dealings with parties and/or destinations in ineligible 
countries.
* * * * *
    73. Section 752.15 is amended by revising the first sentence of 
paragraph (b) to read as follows:


Sec. 752.15  Export clearance.

* * * * *
    (b) Destination control statement. The SCL holder and consignees 
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. * * *
    74. Supplement No. 1 to part 752 is revised to read as follows:

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 
chose 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 of the EAR.
    Block 5: Type of Application. Enter an ``x'' in the Special 
Comprehensive License box.
    Block 6: Documents Submitted with Application. Enter an ``x'' in 
the appropriate boxes to indicate which forms are attached.
    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 
when requesting changes to an approved SCL.
    Block 10: Resubmission Application Control Number. Leave blank.
    Block 11: Replacement License Number. This Block should be 
completed by previous special license holders. If you have had a 
special license in the past, enter that license number (i.e., V #, 
SS #, DL #, or SF #). A new SCL number will be assigned upon 
approval of your SCL application.
    Block 12: Items Previously Exported. Leave blank.
    Block 13: Import/End-User Certificate. Leave blank.
    Block 14: Applicant. Complete according to the instructions in 
Supplement No. 1 to part 748 of the EAR.
    Block 15: Other Party Authorized to Receive License. Complete, 
if applicable, according to the instructions in Supplement No. 1 to 
part 748 of the EAR.
    Block 16: Purchaser. Leave blank.
    Block 17: Intermediate Consignee. Leave blank.
    Block 18: Ultimate Consignee. Leave blank.
    Block 19: End-User. Leave blank.
    Block 20: Original Ultimate Consignee. Leave blank.
    Block 21: Specific End-Use. Leave blank.
    Block 22: For one item, complete sub-blocks (a) through (j). For 
multiple items, complete Form BXA 748P-A.
    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.
    Block 25: Signature. Complete according to the instructions in 
Supplement No. 1 to part 748 of the EAR.
    75. Supplement No. 2 to part 752 is amended by revising Block 21 
to read as follows:

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

* * * * *
    Block 21: Continuation of Specific End-Use Information. Complete 
as necessary to fully describe the transaction(s).
* * * * *
    76. Supplement No. 3 to part 752 is revised to read as follows:

Supplement No. 3 to Part 752--Instructions on 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 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 Post Office (P.O.) Box alone is NOT 
acceptable, but may be included in this 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.

[[Page 25467]]

Leave the SCL Case No. box blank for new applications and enter the 
SCL Case No. for ``change'' actions.
    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 Relationships.
    (i) Item (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 by including the appropriate letter 
choice(s) from the following: (a) manufacturer, (b) distributor, (c) 
assembler, (d) sales agent, (e) warehouse, (f) service facility, or 
(g) other. For other, provide an explanation in Block 9.
    (ii) Item (b): Indicate the relationship between your company 
and the applicant's company by providing the appropriate letter 
choice(s) from the following: (a) wholly-owned subsidiary, (b) 
independent company, (c) joint venture company, (d) controlled-in-
fact affiliate, (e) contractor/subcontractor, or (f) other. For 
other, provide an explanation in Block 9.
    (iii) Item (c): Enter the number of years of relationship 
between your company and the applicant company.
    (iv) Item (d): Enter the estimated dollar volume of sales or 
other transactions with the SCL holder during the last twelve month 
period before submission of the application for an SCL.
    (v) Item (e): Enter an estimated dollar volume proposed under 
this application for the validity period of the SCL.
    Block 8: Disposition or Use of Items.
    (i) Item (a): Complete this Block if your company is requesting 
involvement in end-user activities that involves importing items for 
the company's own use (e.g., as capital equipment).
    (ii) Item (b): Complete this Block if your company is requesting 
involvement in end-user activities that incorporates items received 
under the SCL into a new end-product that results 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.
    (iii) Item (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.
    (iv) Item (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.
    (v) Item (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, complete 
and attach Form BXA-748P-B, End-User Appendix.
    (vi) Item (f): This item should be completed for ``other'' 
activities that are not defined in Block 8 paragraphs (a) through 
(e). Describe the proposed activities fully in Block 9 or in a 
letter submitted with this Form, and complete and submit Form BXA-
752-A, indicating the countries to which the products derived from 
these activities will be exported.
    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 their signature. All copies 
must be co-signed by the applicant in the SCL holder signature block 
and submitted with the application to BXA.

    77. Supplement No. 4 to part 752 is revised to read as follows:

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 
No. 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 wish to select. See Sec. 752.4 of 
this part for countries that are not eligible for the SCL. You may 
request a country that is not included on Form BXA-752-A by marking 
an ``x'' in the ``other'' box and including the country name.

    78. Supplement No. 5 to part 752 is revised to read as follows:

Supplement No. 5 to Part 752--Instructions for Completing Form BXA-
748-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 
No. 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. Post Office (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. Enter the consignee name and complete address of the consignee 
responsible for the end-user(s) (i.e., recordkeeping and ICP 
screening, etc.).

PART 754--[AMENDED]

    79. Section 754.6 is amended by revising paragraph (c) to read as 
follows:


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

* * * * *
    (c) Mailing address. Submit applications pursuant to the provisions 
of section 7(g) of the EAA to: Bureau of Export Administration, U.S. 
Department of Commerce, P.O. Box 273, Washington, D.C. 20044.
    80. Section 754.7 is amended by revising paragraph (d) to read as 
follows:


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

* * * * *
    (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. 20044.

PART 756--[AMENDED]

    81. Section 756.1 is amended by revising the third sentence of 
paragraph (a) to read as follows:


Sec. 756.1  Introduction.

    (a) * * * 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 
administrative action. * * *
* * * * *
    82. Section 756.2 is amended by revising paragraph (b)(4)(ii), to 
read as follows:


Sec. 756.2  Appeal from an administrative action.

* * * * *
    (b) * * *
    (4) * * *
    (ii) Evidence. The rules of evidence prevailing in courts of law do 
not apply, and all evidentiary material deemed by

[[Page 25468]]

the Under Secretary to be relevant and material to the proceeding, and 
not unduly repetitious, will be received and considered.
* * * * *

PART 758--[AMENDED]

    83. Section 758.1 is amended:
    a. By revising paragraph (b)(2);
    b. By revising the first sentence of paragraph (d)(2)(vi);
    c. By revising paragraph (e)(1)(i)(A);
    d. By revising paragraph (e)(1)(i)(C); and
    e. By revising the phrase `` ``No License Required'' of the 
applicable'' to read `` ``No License Required'', or the applicable'' in 
paragraph (f)(2)(ii).


Sec. 758.1  Export clearance requirements.

* * * * *
    (b) * * *
    (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. 748.5(a)(1) of 
the EAR which defines parties to a transaction.
* * * * *
    (d) * * *
    (2) * * *
    (vi) Software and technology. If you are exporting software or 
technology, the export of which is authorized under the License 
Exceptions in Sec. 740.6 or Sec. 740.13 of the EAR, you do not need to 
make any notation on the package. * * *
* * * * *
    (e) * * *
    (1) * * *
    (i) * * *
    (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 (or other number 
acceptable to the Foreign Trade Division, Bureau of the Census). The 
Schedule B number of an item is shown in the current edition of the 
Schedule B, Statistical Classification of Domestic and Foreign 
Commodities Exported from the United States. In paragraph (e) of this 
section, ``shipment'' means all items classified under a single 
Schedule B number (or other number acceptable to the Foreign Trade 
Statistics Division, Bureau of the Census), 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 paragraph.
    (B) * * *
    (C) Any shipment made under any other exception to the SED 
requirements found in Subpart B of the Bureau of the Census' Foreign 
Trade Statistics Regulations.
* * * * *
    84. Section 758.2(c) is amended by revising the term ``OEXS'' to 
read ``BXA''.
    85. Section 758.3 is amended:
    a.-b. By revising the introductory text of paragraph (f)(1);
    c. By revising paragraph (g);
    d. By revising paragraph (h)(1);
    e. By revising the introductory text of paragraph (m)(3)(ii)(C);
    f. By revising paragraph (m)(3)(iii); and
    g. By revising paragraph (o)(2), as follows:


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

* * * * *
    (f) * * *
    (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'' (NLR) 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 symbol NLR must be shown along with the descriptions 
(including quantity, if required, Schedule B number or other number 
acceptable to the Foreign Trade Division, Bureau of the Census, and 
value) to which each authorization applies must be shown under each of 
the properly aligned line item descriptions. The following apply for 
notations made on the SED:
* * * * *
    (g) Schedule B number and item description. (1) Schedule B number. 
You must enter the Schedule B number (or other number acceptable to the 
Foreign Trade Division, Bureau of the Census), 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 or other number acceptable to the Foreign Trade 
Division, Bureau of the Census 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'' (NLR) 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 be given enough additional detail 
to permit verification of the Schedule B number (or other number 
acceptable to the Foreign Trade Division, Bureau of the Census) (e.g., 
size, material, or degree of fabrication).
    (ii) Distinguishing characteristics or specifications. If a 
commodity classification in Schedule B (or other schedule acceptable to 
the Foreign Trade Division, Bureau of the Census) 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 or ``other number acceptable to the Foreign 
Trade Division, Bureau of the Census'' 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 
authority of a License Exception, or under the NLR 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 or ``other number 
acceptable to the Foreign Trade Division, Bureau of the Census'' 
entered on the SED.
    (h) * * *
    (1) Exports under the authority of a license issued by BXA. You 
must show the license number and expiration date, the Export Control 
Classification

[[Page 25469]]

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'' (NLR) 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 number or ``other 
number acceptable to the Foreign Trade Division, Bureau of the 
Census'', value) of the item(s) to which the authorization applies in 
the designated spaces on the SED continuation sheet.
* * * * *
    (m) * * *
    (3) * * *
    (ii) * * *
    (C) For intransit shipments of items of U.S.-origin eligible for 
the intransit provisions of License Exception TMP (see Sec. 740.9(b) of 
the EAR), enter the following statement:
* * * * *
    (iii) The items must be described in terms of Schedule B, including 
the appropriate Schedule B number or ``other number acceptable to the 
Foreign Trade Division, Bureau of the Census''.
* * * * *
    (o) * * *
    (2) Applicability. Approved parties may file monthly SEDs with the 
Bureau of the Census for export to destinations in Country Groups B and 
D (see Supplement No. 1 to part 740 of the EAR).
* * * * *
    86. Section 758.7(b)(6) is amended by revising the phrase ``both 
customs officials'' to read ``both Customs officials'' in the third 
sentence.

PART 762--[AMENDED]

    87. Section 762.3(a)(7) is amended by revising the phrase ``Parking 
material'' to read ``Packing material''.

PART 764--[AMENDED]

    88. Section 764.2 is amended by revising paragraph (f) to read as 
follows:


Sec. 764.2  Violations.

* * * * *
    (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 or reexport 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 or reexported.
* * * * *
    90. Section 764.3 is amended:
    a. By revising paragraph (b)(1);
    b. By revising paragraph (b)(2)(i);
    c. By revising paragraph (b)(2)(ii); and
    d. By revising paragraph (b)(2)(iii), as follows:


Sec. 764.3  Sanctions.

* * * * *
    (b) * * *
    (1) General. Except as provided in paragraph (b)(2) of this 
section, whoever knowingly violates or conspires to or attempts to 
violate the EAA, EAR, or any order or license issued thereunder, shall 
be fined not more than five times the value of the exports or reexports 
involved or $50,000, whichever is greater, or imprisoned not more than 
five years, or both.
    (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 items involved is, any controlled country or 
any country to which exports or reexports 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 or reexport 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 or reexport of any items to a controlled country and 
who, with knowledge that such export or reexport 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 or reexports 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 the intent to export 
or reexport 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 or reexported, 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 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.
* * * * *
    91. Section 764.5 is amended:
    a. By revising paragraph (c)(4)(ii);
    b. By amending paragraph (c)(7), as follows:
    i. By revising the phrase ``Facsimile: (617) 835-6039'' to read 
``Facsimile: (617) 565-6039'' under the paragraph for ``Boston Field 
Office'';
    ii. By revising the phrase ``Facsimile: (214) 729-9299'' to read 
``Facsimile: (214) 767-9299'' under the paragraph for ``Dallas Field 
Office'';
    iii. By revising the phrase ``Facsimile: (714) 791-9103'' to read 
``Facsimile: (714) 251-9103'' under the paragraph for ``Los Angeles 
Field Office''; and
    iv. By revising the phrase ``Facsimile: (718) 370-8226'' to read 
``Facsimile: (718) 370-0826'' under the paragraph for ``New York Field 
Office''.


Sec. 764.5  Voluntary self-disclosure.

* * * * *
    (c) * * *
    (4) * * *
    (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 maintained in 
accordance with the recordkeeping rules in part 762 of the EAR.
* * * * *

PART 768--[AMENDED]

    92. Section 768.1(d) is amended by revising the phrase 
``Kyrgystan'' to read ``Kyrgyzstan'' under the definition for 
``Controlled countries''.

PART 770--[AMENDED]

    93. Section 770.2 is amended:
    a. By revising the phrase ``their original identify'' to read 
``their original identity'' in paragraph (g)(3);
    b. By revising the phrase ``Slovak Republic'' to read ``Slovakia'' 
in the introductory text of paragraph (k); and

[[Page 25470]]

    c. By revising the phrase ``N-Methyl-3-piperidonol'' to read ``N-
Methyl-3-piperidinol'' in paragraph (k)(26).
    94. Section 770.3(c)(1) is amended:
    a. By revising the phrase ``is subject to the EAR is the same 
manner'' to read ``is subject to the EAR in the same manner''; and
    b. By revising the phrase ``described at Sec. 732.4 of the EAR.'' 
to read ``described in Sec. 734.4 of the EAR.''.
    95. Section 770.3 is further amended:
    a. By revising the phrase ``described at Sec. 732.4 of the EAR.'' 
to read ``described in Sec. 734.4 of the EAR.'', in paragraph (c)(2);
    b. By revising paragraph (d)(1)(i)(B);
    c. By revising paragraph (d)(1)(ii); and
    d. By revising paragraph (d)(2)(ii), as follows:


Sec. 770.3  Interpretations related to exports of technology and 
software to destinations in Country Group D:1.

* * * * *
    (d) * * *
    (1) * * *
    (i) * * *
    (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 TSU for operation technology and 
software described in Sec. 740.13(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 TSU for operation technology and software described 
in Sec. 740.13(a) of the EAR, a license would be required even though 
the technician could apply the data without disclosing it to the 
customer.
    (2) * * *
    (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 TSU for operation technology and software described in 
Sec. 740.13(a), the training may be provided within the limits of those 
provisions of License Exception TSU. 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 TSU for operation technology and software described 
in Sec. 740.13(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.

PART 772--[AMENDED]

    96. Part 772 is amended:
    a. By revising the citation reference ``Sec. 748.4'' to read 
Sec. 748.5'' in the definition for ``Applicant'';
    b. By revising the phrase ``perform (a) specific function'' to read 
``perform a specific function'' in the definition for ``Assembly'';
    c. By revising the definition for ``CCL Group'';
    d. By revising the definition for ``Category'';
    e. By revising the phrase ``application for International Import 
Certificate; International Import Certificate; Delivery Verification 
Certificate'' to read ``application for International Import 
Certificate; Delivery Verification Certificate'' in the definition for 
``Export control document'';
    f-g. By revising the definition of ``Required'';
    h. By revising the phrase ``Mixed sequence manipulation'' to read 
``Fixed sequence manipulation'' as it appears in paragraph (b) to the 
Note under the definition for ``Robot'';
    i. By revising the phrase ``commodities, Software, technology'' to 
read ``commodities, software, technology'' in the definition for 
``Subject to the EAR'';
    j. By revising the phrase ``by low of elongation'' to read ``by low 
elongation'' in the definition for ``Superplastic forming''; and
    k. By revising the citation reference ``Sec. 748.4(b)(5)'' to read 
``Sec. 748.5(e)'', in the definition for ``Ultimate Consignee''.

PART 772--DEFINITIONS OF TERMS

* * * * *
    CCL Group. The Commerce Control List (CCL) is divided into 10 
categories. Each category is subdivided into five groups, designated by 
the letters A through E: (A) Equipment, assemblies and components; (B) 
Test, inspection and production equipment; (C) Materials; (D) Software; 
and (E) Technology. See Sec. 738.2(b) of the EAR.
* * * * *
    Category. The Commerce Control List (CCL) is divided into ten 
categories: (0) Nuclear Materials, Facilities and Equipment, and 
Miscellaneous; (1) Materials, Chemicals, ``Microorganisms'', and 
Toxins; (2) Materials Processing; (3) Electronics Design, Development 
and Production; (4) Computers; (5) Telecommunications and Information 
Security; (6) Sensors; (7) Navigation and Avionics; (8) Marine; (9) 
Propulsion Systems, Space Vehicles, and Related Equipment. See 
Sec. 738.2(a) of the EAR.
* * * * *
    ``Required''. As applied to ``technology'' or ``software'', refers 
to only that portion of ``technology'' or ``software'' which is 
peculiarly responsible for achieving or extending the controlled 
performance levels, characteristics or functions. Such ``required'' 
``technology'' or ``software'' may be shared by different products. For 
example, assume product ``X'' is controlled if it operates at or above 
400 MHz and is not controlled if it operates below 400 MHz. If 
production technologies ``A'', ``B'', and ``C'' allow production at no 
more than 399 MHz, then technologies ``A'', ``B'', and ``C'' are not 
``required'' to produce the controlled product ``X''. If technologies 
``A'', ``B'', ``C'', ``D'', and ``E'' are used together, a manufacturer 
can produce product ``X'' that does not operate at or above 400 MHz. In 
this example, technologies ``D'' and ``E'' are ``required'' to make the 
controlled product and are themselves controlled under the General 
Technology Note. (See the General Technology Note.)
* * * * *
    Dated: May 1, 1997.
Sue E. Eckert,
Assistant Secretary for Export Administration.
[FR Doc. 97-11727 Filed 5-8-97; 8:45 am]
BILLING CODE 3510-33-P