[Federal Register Volume 67, Number 182 (Thursday, September 19, 2002)]
[Rules and Regulations]
[Pages 58984-58988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23715]


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DEPARTMENT OF STATE

22 CFR Parts 121 and 123

[Public Notice 4124]


Amendment to the International Traffic in Arms Regulations: 
United States Munitions List

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: The Department of State is revising the U.S. Munitions List 
(USML), Category II--Artillery Projectors, Category III--Ammunition, 
Category VII--Tanks and Military Vehicles, and Category XVI--Nuclear 
Weapons Design and Test Equipment. Also, in order to provide complete 
coverage of an emerging technology, Category XVIII, currently 
``Reserved'', is revised to control directed energy weapons. Categories 
II, III, and XVI are revised to amend the titles to provide more 
comprehensive coverage of items controlled in the categories. Category 
II is further amended for clarity, to move self-propelled guns and 
howitzers and their engines from Category VII (c) and (g), 
respectively, and to specifically identify kinetic energy weapons 
systems, and specifically designed production, tooling, test and 
evaluation equipment. Category II, is further amended to enhance the 
control on signature control materials currently found only in Category 
XIII(j). Category VII is amended to delete paragraph (c) and to amend 
paragraph (g) to delete the engines for self-propelled guns and 
howitzers and to renumber the paragraphs. The interpretations and 
amplifications of categories currently found elsewhere in the 
International Traffic in Arms Regulations (ITAR) relative to categories 
III and VII, respectively, are also being included in the revised text 
of the relevant category. Category XVI is revised to include a new 
paragraph identifying specifically designed or modified components, 
parts, accessories, attachments and associated equipment for the 
articles in the category. In addition, the regulations are amended to 
more properly identify the alternative control and transfer authorities 
on nuclear materials under other statutes implemented by other 
agencies. Finally, in implementation of

[[Page 58985]]

the Presidential Determination No. 2002-10 of March 14, 2002, Bahrain 
is added as a major non-NATO ally of the United States.

EFFECTIVE DATE: September 19, 2002.

FOR FURTHER INFORMATION CONTACT: Mr. Stephen Tomchik, Office of Defense 
Trade Controls, Department of State, Telephone (202) 663-2799 or FAX 
(202) 261-8199. ATTN: Regulatory Change, USML Part 121, Category V and 
XIV.

SUPPLEMENTARY INFORMATION: This notice of rule making sets out the 
results of a review of the U.S. Munitions List (USML), Category II and 
III, by the Department of State in consultation with the Departments of 
Defense and Commerce, and of Category XVI by the Department of State in 
consultation with the Departments of Defense, Commerce, and Energy. In 
Categories II, III, and XVIII the titles are revised to more accurately 
reflect the full range of articles covered by each category (e.g. the 
movement of self-propelled guns and howitzers and their engines from 
Category VII paragraph (c) and paragraph (g) respectively to Category 
II).
    In amending Category II, the items currently in paragraph (c) are 
transferred to a new paragraph (j). Paragraph (c) now controls 
apparatus and devices for launching or delivering ordnance, other than 
those items controlled in Category IV of the USML. The items in (d) are 
transferred to a new paragraph (k) permitting an emerging class of new 
energy weapons determined to be inadequately defined on the USML to now 
be specifically identified. Paragraph (d) now controls kinetic energy 
weapon systems specifically designed or modified for destruction or 
rendering mission-abort of a target. During the review, it was also 
determined that the coverage of signature control materials currently 
found in Category XIII(j) was inadequate. While signature control 
features may be integral to a given system design, they can also be 
sold as add-on subassemblies or materials for application to existing 
systems. Therefore a new paragraph (e) now controls signature control 
materials for the articles in Category II. Category II (a) was expanded 
to control all guns over caliber .50 whether towed, airborne, self-
propelled or fixed resulting in the transfer of self-propelled guns and 
howitzers from Category VII (c) to this category. Category II is 
further revised to add a new paragraph (f) to control the engines for 
self-propelled guns and howitzers moved from Category VII (g). Also 
added are, a new paragraph (g) to identify production tooling and 
equipment specifically designed or modified for the production of the 
articles controlled by this category, a new paragraph (h) to control 
specifically designed or modified test and evaluation equipment and 
test models, and a new paragraph (i) to control autoloading systems for 
electronic programming of projectile function.
    In addition to revising the title of Category III, the category is 
further revised to move components, parts, accessories and attachments 
from paragraph (b) to paragraph (d). This is done for the sake of 
greater internal logic and consistency. Paragraph (d), in addition to 
controlling components, parts, accessories, attachments and associated 
equipment for the articles in the category, is also revised to 
specifically identify certain ammunition/ordnance components, parts, 
accessories and attachments and to designate them as Significant 
Military Equipment (SME). The ammunition belting and linking machines 
in paragraph (c) are moved to paragraph (b) followed by the logically 
related corresponding move of ammunition manufacturing and loading 
machines from paragraph (d) to paragraph (c). The interpretation and 
amplification language in Sec.  121.6 is transferred to a new paragraph 
(f) and section 121.6 will be captioned ``Reserved''.
    Category XVI, is revised to transfer the items currently in 
Category XIV(d) of the USML to paragraph (c) and to add a new paragraph 
(d) to ensure coverage of specifically designed components, parts, 
accessories, attachments and associated equipment for the articles in 
the category. The technical data and services in paragraph (c) are 
moved to a new paragraph (e). Also, section 123.20 of the regulations 
is revised to more properly identify the alternative control and 
transfer authorities on nuclear materials, nuclear parts of nuclear 
weapons, or other non-nuclear parts of nuclear weapons systems 
implemented by other agencies.
    Category XVIII currently ``Reserved'', is revised to create a new 
category to the USML to ensure control of directed energy weapons. 
While Categories XII (b) and XIII (h) currently control aspects of 
directed energy weapons, this new category will provide a more complete 
coverage of the emerging technologies (e.g., items used to burn out 
radar receivers, disable electro-optic sensors or intercept missiles). 
Revisions to Categories XII (b) and XIII (h), as appropriate, will take 
place during review of each of these categories.
    Finally, Category VII, Tanks and Military Vehicles, is revised to 
delete paragraph (c), to remove the engines for self propelled guns and 
howitzers from paragraph (g) and to renumber the remaining paragraphs. 
Consistent with the change in previous categories, to include 
interpretative notes where appropriate in the category itself, the text 
of Sec.  121.4 is moved to the category, in paragraph (i), and section 
121.4 will be captioned ``Reserved''.
    This amendment involves a foreign affairs function of the United 
States and, therefore, is not subject to the procedures required by 5 
U.S.C. 553 and 554. It is exempt from review under Executive Order 
12866; but has been reviewed internally by the Department of State to 
ensure consistency with the purposes thereof. This rule does not 
require analysis under the Regulatory Flexibility Act or the Unfunded 
Mandates Reform Act. It has been found not to be a major rule within 
the meaning of the Small Business Regulatory Enforcement Act of 1966. 
It will not have substantial direct effects on the States, the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, in accordance with section 6 of Executive Order 
13132, it is determined that this rule does not have sufficient 
federalism implications to warrant application of Executive Orders Nos. 
12372 and 13123. However, affected U.S. persons are invited to submit 
written comments to the Department of State, Office of Defense Trade 
Controls, ATTN: Stephen Tomchik, Regulatory Change, USML Category II, 
III, and XVIII, 12th Floor, SA-1, Washington, D.C. 20522-0112.

List of Subjects in 22 CFR Parts 121 and 123

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, Parts 121 and 123 are amended as follows:

PART 121--UNITED STATES MUNITIONS LIST

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

    Authority: Sec. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2278, 2797); E.O. 11958, 42 FR 4311; 3 CFR, 1977 Comp., 
p. 79; 22 U.S.C. 2658; Pub. L. 105-261, 112 Stat. 1920.
    2. In Sec.  121.1, Category II and Category III are revised; 
Category VII is amended by revising paragraphs (c) through (i); 
Category XVI is revised; and Category XVIII is added to read as 
follows:


Sec.  121.1  General. The United States Munitions List.

* * * * *

[[Page 58986]]

Category II-Guns and Armament

    *(a) Guns over caliber .50 (12.7mm, whether towed, airborne, self-
propelled, or fixed, including but not limited to, howitzers, mortars, 
cannons and recoilless rifles.
    (b) Flame throwers specifically designed or modified for military 
application.
    (c) Apparatus and devices for launching or delivering ordnance, 
other than those articles controlled in Category IV.
    *(d) Kinetic energy weapon systems specifically designed or 
modified for destruction or rendering mission-abort of a target.
    (e) Signature control materials (e.g., parasitic, structural, 
coatings, screening) techniques, and equipment specifically designed, 
developed, configured, adapted or modified to alter or reduce the 
signature (e.g., muzzle flash suppression, radar, infrared, visual, 
laser/electro-optical, acoustic) of defense articles controlled by this 
category.
    *(f) Engines specifically designed or modified for the self-
propelled guns and howitzers in paragraph (a) of this category.
    (g) Tooling and equipment specifically designed or modified for the 
production of defense articles controlled by this category.
    (h) Test and evaluation equipment and test models specifically 
designed or modified for the articles controlled by this category. This 
includes but is not limited to diagnostic instrumentation and physical 
test models.
    (i) Autoloading systems for electronic programming of projectile 
function for the defense articles controlled in this Category.
    (j) All other components, parts, accessories, attachments and 
associated equipment specifically designed or modified for the articles 
in paragraphs (a) through (i) of this category. This includes but is 
not limited to mounts and carriages for the articles controlled in this 
category.
    (k) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles enumerated in paragraphs (a) 
through (j) of this category. Technical data directly related to the 
manufacture or production of any defense articles enumerated elsewhere 
in this category that are designated as Significant Military Equipment 
(SME) shall itself be designated SME.
    (l) The following interpretations explain and amplify the terms 
used in this category and elsewhere in this subchapter:
    (1) The kinetic energy weapons systems in paragraph (d) of this 
category include but are not limited to:
    (i) Launch systems and subsystems capable of accelerating masses 
larger than 0.1g to velocities in excess of 1.6km/s, in single or rapid 
fire modes, using methods such as: electromagnetic, electrothermal, 
plasma, light gas, or chemical;
    (ii) Prime power generation, electric armor, energy storage, 
thermal management; conditioning, switching or fuel-handling equipment; 
and the electrical interfaces between power supply gun and other turret 
electric drive function;
    (iii) Target acquisition, tracking fire control or damage 
assessment systems; and
    (iv) Homing seeker, guidance or divert propulsion (lateral 
acceleration) systems for projectiles.
    (2) The articles in this category include any end item, component, 
accessory, attachment part, firmware, software or system that has been 
designed or manufactured using technical data and defense services 
controlled by this category.
    (3) The articles specifically designed or modified for military 
application controlled in this category include any article 
specifically developed, configured, or adapted for military 
application.

Category III--Ammunition/Ordnance

    *(a) Ammunition/ordnance for the articles in Categories I and II of 
this section.
    (b) Ammunition/ordnance handling equipment specifically designed or 
modified for the articles controlled in this category, such as, 
belting, linking, and de-linking equipment.
    (c) Equipment and tooling specifically designed or modified for the 
production of defense articles controlled by this category.
    (d) Components, parts, accessories, attachments and associated 
equipment specifically designed or modified for the articles in this 
category:
    *(1) Guidance and control components for the articles in paragraph 
(a) of this category;
    *(2) Safing, arming and fuzing components (including target 
detection and localization devices) for the articles in paragraph (a) 
of this category; and
    (3) All other components, parts, accessories, attachments and 
associated equipment for the articles in paragraphs (a) through (c) of 
this category.
    (e) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles enumerated in paragraphs (a) 
through (d) of this category. Technical data directly related to the 
manufacture or production of any defense articles enumerated elsewhere 
in this category that are designated as Significant Military Equipment 
(SME) shall itself be designated SME.
    (f) The following explains and amplifies the terms used in this 
category and elsewhere in this subchapter:
    (1) The components, parts, accessories and attachments controlled 
in this category include, but are not limited to cartridge cases, 
powder bags (or other propellant charges), bullets, jackets, cores, 
shells (excluding shotgun shells), projectiles (including canister 
rounds and submunitions therefor), boosters, firing components 
therefor, primers, and other detonating devices for the defense 
articles controlled in this category.
    (2) This category does not control cartridge and shell casings 
that, prior to export, have been rendered useless beyond the 
possibility of restoration for use as a cartridge or shell casing by 
means of heating, flame treatment, mangling, crushing, cutting or 
popping.
    (3) Equipment and tooling in paragraph (c) of this category does 
not include equipment for hand-loading ammunition.
    (4) The articles in this category include any end item, component, 
accessory, attachment, part, firmware, software, or system that has 
been designed or manufactured using technical data and defense services 
controlled by this category.
    (5) The articles specifically designed or modified for military 
application controlled in this category include any article 
specifically developed, configured, or adapted for military application
* * * * *

Category VII--Tanks and Military Vehicles

* * * * *
    (c) Military trucks, trailers, hoists, and skids specifically 
designed, modified, or equipped to mount or carry weapons of Categories 
I, II and IV of this section or for carrying and handling the articles 
in paragraph (a) of Categories III and IV of this section.
    *(d) Military recovery vehicles.
    *(e) Amphibious vehicles.
    *(f) Engines specifically designed or modified for the vehicles in 
paragraphs (a), (b), and (e) of this category.
    (g) All specifically designed or modified components, parts, 
accessories, attachments, and associated equipment for the articles in 
this category, including but not limited to

[[Page 58987]]

military bridges and deep water fording kits.
    (h) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles enumerated in paragraphs (a) 
through (g) of this category. Technical data directly related to the 
manufacture or production of any defense articles enumerated elsewhere 
in this category that are designated as Significant Military Equipment 
(SME) shall itself be designated SME.
    (i) The following explains and amplifies the terms used in this 
category and elsewhere in this subchapter.
    (1) An amphibious vehicle in paragraph (e) of this category is an 
automotive vehicle or chassis which embodies all-wheel drive, is 
equipped to meet special military requirements, and which has sealed 
electrical system or adaptation features for deep water fording.
    (2) The articles in this category include any end item, component, 
accessory, attachment part, firmware, software or system that has been 
designed or manufactured using technical data and defense service 
controlled by this category.
* * * * *

Category XVI--Nuclear Weapons, Design and Testing Related Items

    *(a) Any article, material, equipment, or device which is 
specifically designed or modified for use in the design, development, 
or fabrication of nuclear weapons or nuclear explosive devices. (See 
Sec.  123.20 of this subchapter and Department of Commerce Export 
Administration Regulations, 15 CFR 742.3 and 744.2).
    *(b) Any article, material, equipment, or device which is 
specifically designed or modified for use in the devising, carrying 
out, or evaluating of nuclear weapons tests or any other nuclear 
explosions (including for modeling or simulating the employment of 
nuclear weapons or the integrated operational use of nuclear weapons), 
except such items as are in normal commercial use for other purposes.
    *(c) Nuclear radiation detection and measurement devices 
specifically designed or modified for military applications.
    (d) All specifically designed or modified components and parts, 
accessories, attachments, and associated equipment for the articles in 
this category.
    (e) Technical data (as defined in Sec.  120.10 of this subchapter), 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles enumerated in paragraphs (a) 
through (d) of this category. (See also, Sec.  123.20 of this 
subchapter.) Technical data directly related to the manufacture or 
production of any defense articles enumerated elsewhere in this 
category that are designated as Significant Military Equipment (SME) 
shall itself be designated SME.
* * * * *

Category XVIII--Directed Energy Weapons

    *(a) Directed energy weapon systems specifically designed or 
modified for military applications (e.g., destruction, degradation or 
rendering mission-abort of a target). These include, but are not 
limited to:
    (1) Laser systems, including continuous wave or pulsed laser 
systems, specifically designed or modified to cause blindness;
    (2) Lasers of sufficient continuous wave or pulsed power to effect 
destruction similar to the manner of conventional ammunition;
    (3) Particle beam systems;
    (4) Particle accelerators that project a charged or neutral 
particle beam with destructive power;
    (5) High power radio-frequency (RF) systems;
    (6) High pulsed power or high average power radio frequency beam 
transmitters that produce fields sufficiently intense to disable 
electronic circuitry at distant targets;
    (7) Prime power generation, energy storage, switching, power 
conditioning, thermal management or fuel-handling equipment;
    (8) Target acquisition or tracking systems;
    (9) Systems capable or assessing target damage, destruction or 
mission-abort;
    (10) Beam-handling, propagation or pointing equipment;
    (11) Equipment with rapid beam slew capability for rapid multiple 
target operations;
    (12) Negative ion beam funneling equipment; and,
    (13) Equipment for controlling and slewing a high-energy ion beam.
    *(b) Equipment specifically designed or modified for the detection 
or identification of, or defense against, articles controlled in 
paragraph (a) of this category.
    (c) Tooling and equipment specifically designed or modified for the 
production of defense articles controlled by this category.
    (d) Test and evaluation equipment and test models specifically 
designed or modified for the defense articles controlled by this 
category. This includes, but is not limited to, diagnostic 
instrumentation and physical test models.
    (e) Components, parts, accessories, attachments and associated 
equipment specifically designed or modified for the articles in 
paragraphs (a) through (d) of this category.
    (f) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles enumerated in paragraphs (a) 
through (e) of this category. Technical data directly related to the 
manufacture or production of any defense articles enumerated in this 
category that are designated as Significant Military Equipment (SME) 
shall itself be designated SME.
    (g) The following interpretations explain and amplify terms used in 
this category and elsewhere in this subchapter:
    (1) The components, parts, accessories, attachments and associated 
equipment include, but are not limited to adaptive optics and phase 
conjugators components, space-qualified accelerator components, targets 
and specifically designed target diagnostics, current injectors for 
negative hydrogen ion beams, and space-qualified foils for neutralizing 
negative hydrogen isotope beams.
    (2) The articles controlled in this category include any end item, 
component, accessory, attachment, part, firmware, software or system 
that has been designed or manufactured using technical data and defense 
services controlled by this category.
    (3) The articles specifically designed or modified for military 
application controlled in this category include any article 
specifically developed, configured, or adapted for military 
application.
* * * * *

Sec. 121.4 [Removed and Reserved]

    3. Section 121.4 is removed and reserved.

Sec. 121.6 [Removed and Reserved]

    4. Section 121.6 is removed and reserved.

PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES

    5. The authority citation for Part 123 continues to read as 
follows:

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2278, 2797); 22 U.S.C. 2753; E.O. 11958, 42 FR 4311; 3 
CFR, 1977 Comp., p. 79; 22 U.S.C. 2658; Pub. L. 105-261, 112 Stat. 
1920.


[[Page 58988]]



    6. Section 123.20 is revised to read as follows:


Sec.  123.20  Nuclear related controls.

    (a) The provisions of this subchapter do not apply to equipment, 
technical data or services in Category VI(e) and Category XVI of Sec.  
121.1 of this subchapter to the extent such equipment, technical data 
or services are under the export control of the Department of Energy or 
the Nuclear Regulatory Commission pursuant to the Atomic Energy Act of 
1954, as amended, and the Nuclear Non-Proliferation Act of 1978, as 
amended, or is a government transfer authorized pursuant to these Acts.
    (b) The transfer of materials, including special nuclear materials, 
nuclear parts of nuclear weapons, or other non-nuclear parts of nuclear 
weapons systems involving Restricted Data or of assistance involving 
any person directly or indirectly engaging in the production or use 
thereof is prohibited except as authorized by the Atomic Energy Act of 
1954, as amended. The transfer of Restricted Data or such assistance is 
prohibited except as authorized by the Atomic Energy Act of 1954, as 
amended. The technical data or defense services relating to nuclear 
weapons, nuclear weapons systems or related defense purposes (and such 
data or services relating to applications of atomic energy for peaceful 
purposes, or related research and development) may constitute 
Restricted Data or such assistance, subject to the foregoing 
prohibition.
    (c) A license for the export of any machinery, device, component, 
equipment, or technical data relating to equipment referred to in 
Category VI(e) of Sec.  121.1 of this subchapter will not be granted 
unless the proposed equipment comes within the scope of an existing 
Agreement for Cooperation for Mutual Defense Purposes concluded 
pursuant to the Atomic Energy Act of 1954, as amended, with the 
government of the country to which the Article is to be exported. 
Licenses may be granted in the absence of such an agreement only:
    (1) If the proposed export involves an article which is identical 
to that in use in an unclassified civilian nuclear power plant,
    (2) If the proposed export has no relationship to naval nuclear 
propulsion, and
    (3) If it is not for use in a naval propulsion plant.

    7. Section 123.27(a)(1) is revised to read as follows:


Sec.  123.27  Special licensing regime for exports to U.S. allies of 
commercial communications satellite components, systems, parts, 
accessories, attachments and associated technical data.

    (a) * * *
    (1) The proposed exports or re-exports concern exclusively one or 
more countries of the North Atlantic Treaty Organization (Belgium, 
Canada, Czech Republic, Denmark, France, Germany, Greece, Hungary, 
Iceland, Italy, Luxembourg, The Netherlands, Norway, Poland, Portugal, 
Spain, Turkey, United Kingdom, and the United States) and/or one or 
more countries which have been designated in accordance with section 
517 of the Foreign Assistance Act of 1961 as a major non-NATO ally (and 
as defined further in section 644(q) of that Act) for purposes of that 
Act and the Arms Export Control Act (Argentina, Australia, Bahrain, 
Egypt, Israel, Japan, Jordan, New Zealand and the Republic of Korea).
* * * * *

    Dated: August 16, 2002.
John R. Bolton,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 02-23715 Filed 9-18-02; 8:45 am]
BILLING CODE 4710-25-P