[Federal Register Volume 65, Number 114 (Tuesday, June 13, 2000)]
[Rules and Regulations]
[Pages 37039-37040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14903]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 774

[Docket No. 990701179-0167-03]
RIN 0694-AB90


Expansion of License Exception CIV Eligibility for 
``Microprocessors'' Controlled by ECCN 3A001 and Graphics Accelerators 
Controlled by ECCN 4A003

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Interim rule with request for comments.

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SUMMARY: The Bureau of Export Administration (BXA) maintains the 
Commerce Control List (CCL), which identifies those items subject to 
Department of Commerce export licensing requirements. Consistent with 
technological changes, this interim rule adjusts the License Exception 
CIV eligibility level for microprocessors controlled by Export Control 
Classification Number (ECCN) 3A001 from a composite theoretical 
performance (CTP) of equal to or less than 3500 million theoretical 
operations per second (MTOPS) to a CTP of equal to or less than 4500 
MTOPS. This rule also adjusts the License Exception CIV eligibility 
level for graphics accelerators controlled by Export Control 
Classification Number (ECCN) 4A003 from 75 million vectors per second 
to 100 million vectors per second. License Exception CIV authorizes 
exports and reexports to civil end-users for civil end-uses in Country 
Group D:1. CIV may not be used for exports or reexports to military 
end-users or end-uses.
    To avoid unwarranted burdens on industry and keep the export 
control levels for commodity microprocessors at controllable levels, 
the Administration is committed to reviewing the CIV level on an 
ongoing basis. Based on industry projections, substantially more 
powerful commodity microprocessors will be released later this year. In 
light of this information, the Administration will continue to monitor 
the microprocessor market, and as circumstances warrant, we anticipate 
raising the CIV eligibility levels from 4500 MTOPS to a level somewhere 
between 5500 and 7000 MTOPS to account for the more powerful 
microprocessors entering mass production.
    The exponential advance of microprocessor technology directly 
affects High Performance Computer (HPC) technology. Accordingly, the 
Administration is also committed to reviewing HPC control levels 
regularly. This summer, we will once again assess the HPC market to 
determine at what level computers are no longer controllable due to 
wide commercial production and dissemination of the computers and their 
components. Additionally, we will determine if the individual licensing 
levels for computers exported to Tier 2 and Tier 3 countries require 
adjustment. Finally, we will continue to examine whether CTP remains a 
viable metric for determining HPC export controls.

DATES: This rule is effective June 13, 2000. Comments on this rule must 
be received on or July 13, 2000.

ADDRESSES: Written comments should be sent to Hillary Hess, Regulatory 
Policy Division, Bureau of Export Administration, Department of 
Commerce, P.O. Box 273, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: James Lewis, Director, Office of 
Strategic Trade and Foreign Policy Controls, Bureau of Export 
Administration, Telephone: (202) 482-4196.

SUPPLEMENTARY INFORMATION: Although the Export Administration Act (EAA) 
expired on August 20, 1994, the President invoked the International 
Emergency Economic Powers Act and continued in effect the EAR, and, to 
the extent permitted by law, the provisions of the EAA in Executive 
Order 12924 of August 19, 1994, as extended by the President's notices 
of August 15, 1995 (60 FR 42767), August 14, 1996 (61 FR 42527), August 
13, 1997 (62 FR 43629), August 13, 1998 (63 FR 44121), and August 10, 
1999 (64 FR 44101, August 13, 1999).

Rulemaking Requirements

    1. This interim rule has been determined to be not significant for 
purposes of E.O. 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with a collection of information, subject to the 
requirements of the Paperwork Reduction Act (PRA), unless that 
collection of information displays a currently valid OMB Control 
Number. This rule involves a collection of information subject to the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This 
collection has been approved by the Office of Management and Budget 
under control number 0694-0088.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (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 interim rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule under the Administrative Procedure 
Act or by any other law, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable.
    However, because of the importance of the issues raised by these 
regulations, this rule is issued in interim form and comments will be 
considered in the development of final regulations.
    Accordingly, the Department encourages interested persons who wish

[[Page 37040]]

to comment to do so at the earliest possible time to permit the fullest 
consideration of their views.
    The period for submission of comments will close on July 13, 2000. 
The Department will consider all comments received before the close of 
the comment period in developing final regulations. Comments received 
after the end of the comment period will be considered if possible, but 
their consideration cannot be assured. The Department will not accept 
public comments accompanied by a request that a part or all of the 
material be treated confidentially because of its business proprietary 
nature or for any other reason. The Department will return such 
comments and materials to the person submitting the comments and will 
not consider them in the development of final regulations. All public 
comments on these regulations will be a matter of public record and 
will be available for public inspection and copying. In the interest of 
accuracy and completeness, the Department requires comments in written 
form.
    Oral comments must be followed by written memoranda, which will 
also be a matter of public record and will be available for public 
review and copying. Communications from agencies of the United States 
Government or foreign governments will not be made available for public 
inspection.
    The public record concerning these regulations will be maintained 
in the Bureau of Export Administration Freedom of Information Records 
Inspection Facility, Room 6883, Department of Commerce, 14th Street and 
Pennsylvania Avenue, NW., Washington, DC 20230. Records in this 
facility, including written public comments and memoranda summarizing 
the substance of oral communications, may be inspected and copied in 
accordance with regulations published in Part 4 of Title 15 of the Code 
of Federal Regulations. Information about the inspection and copying of 
records at the facility may be obtained from the Bureau of Export 
Administration Freedom of Information Officer at the above address or 
by calling (202) 482-0500.

List of Subjects in 15 CFR Part 774

    Exports, Foreign trade.

    Accordingly, part 774 of the Export Administration Regulations (15 
CFR parts 730 through 799) is amended as follows:
    1. The authority citation for part 774 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 
287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; Sec. 201, Pub. L. 104-
58, 109 Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 
2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 
U.S.C. app. 5; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; 
E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 
FR 58767, 3 CFR, 1996 Comp., p. 228; Notice of August 10, 1999 (3 
CFR, 1999 Comp. 302 (2000)).

PART 774--AMENDED

Supplement No. 1 to Part 774--Amended

    2. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3--Electronics, Export Control Classification Number (ECCN) 
3A001 is amended by revising the License Exceptions section to read as 
follows:
    3A001 Electronic components, as follows (see List of Items 
Controlled).
* * * * *

License Exceptions

LVS: N/A for MT
$1500: 3A001.c
$3000: 3A001.b.1, b.2, b.3, .d, .e and .f
$5000: 3A001.a, and .b.4 to b.7
GBS: Yes, except 3A001.a.1.a, b.1, b.3 to b.7, .c to .f
CIV: Yes, except 3A001.a.1, a.2, a.3.a (for processors with a CTP 
greater than 4500 Mtops), a.5, a.6, a.9, a.10, and a.12, .b, .c, .d, 
.e, and .f
* * * * *

    3. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4--Computers, Export Control Classification Number (ECCN) 
4A003 is amended by revising the License Exceptions section to read as 
follows:
    4A003  ``Digital computers'', ``electronic assemblies'', and 
related equipment therefor, and specially designed components therefor.
* * * * *

License Exceptions

LVS: $5000; N/A for MT and ``digital'' computers controlled by 4A003.b 
and having a CTP exceeding 10,000 MTOPS; or ``electronic assemblies'' 
controlled by 4A003.c and capable of enhancing performance by 
aggregation of ``computing elements'' so that the CTP of the 
aggregation exceeds 10,000 MTOPS.
GBS: Yes, for 4A003.d, .e, and .g and specially designed components 
therefor, exported separately or as part of a system.
CTP: Yes, for computers controlled by 4A003.a, .b and .c, to the 
exclusion of other technical parameters, with the exception of 
parameters specified as controlled for Missile Technology (MT) concerns 
and 4A003.e (equipment performing analog-to-digital or digital-to-
analog conversions exceeding the limits of 3A001.a.5.a). See Sec. 740.7 
of the EAR.
CIV: Yes, for 4A003.d (having a 3-D vector rate less than or equal to 
100 M vectors/sec), .e, and .g.
* * * * *

    Dated: June 8, 2000.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 00-14903 Filed 6-12-00; 8:45 am]
BILLING CODE 3510-33-P