[Federal Register Volume 68, Number 64 (Thursday, April 3, 2003)]
[Rules and Regulations]
[Pages 16208-16214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7696]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, 762 and 774

[Docket No. 030213032-3032-01]
RIN 0694-AB87


Exports and Reexports of Explosives Detection Equipment and 
Related Software and Technology; Imposition and Expansion of Foreign 
Policy Controls

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim rule with request for comments.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations to expand the scope of explosives 
detection equipment controlled under Export Classification Control 
Number (ECCN) 2A983, previously 2A993, to include equipment that 
detects the presence of explosives, explosive residue, or detonators. 
BIS is also expanding controls on the export and reexport of such 
explosives detection equipment by imposing regional stability (RS) 
controls and clarifying the previously-existing anti-terrorism (AT) 
controls on this equipment. BIS is also imposing RS and AT controls on 
related software and technology, previously EAR99, but now classified 
under newly created ECCNs 2D983 and 2E983. This rule makes available 
for most destinations the use of License Exception Servicing and 
Replacement of Parts and Equipment (RPL) for one-for-one replacement of 
parts, and servicing and replacement of explosives detection equipment 
controlled under ECCN 2A983 that was legally exported or reexported and 
related software controlled under ECCN 2D983. License Exception 
Technology and Software--Unrestricted (TSU) may also be used to export 
or reexport certain operation technology and software controlled under 
ECCNs 2D983 and 2E983. Special records must be maintained when 
utilizing such License

[[Page 16209]]

Exceptions. License Exception Governments, International Organizations, 
and International Inspections Under the Chemical Weapons Convention 
(GOV) also is available to export and reexport items controlled under 
ECCNs 2A983, 2D983 and 2E983 for official use by personnel and agencies 
of the U.S. Government.

DATES: Effective Date: This rule is effective April 3, 2003.
    Comment Dates: Comments on this rule must be received on or before 
May 19, 2003.

ADDRESSES: Written comments on this rule should be sent to Sheila 
Quarterman, Regulatory Policy Division, Bureau of Industry and 
Security, Department of Commerce, P.O. Box 273, Washington, DC 20044, 
or to E-mail address [email protected].

FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy 
Controls Division, Office of Strategic Trade and Foreign Policy 
Controls, Bureau of Industry and Security, Telephone: (202) 482-0171, 
E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

Imposition and Expansion of Foreign Policy Controls

    The Bureau of Industry and Security (BIS), in this rule, amends the 
Export Administration Regulations (EAR) by expanding the scope of 
explosives detection equipment controlled under Export Control 
Classification Number (ECCN) 2A983, previously 2A993, to include 
equipment that detects the presence of explosives, explosive residue, 
or detonators. This rule also creates new ECCNs 2D983 and 2E983 for 
software and technology designed or modified for the ``development'', 
``production'' or ``use'' of explosives detection equipment controlled 
under 2A983. This software and technology was previously classified as 
EAR99. The change in the second digit of the ECCN for explosives 
detection equipment, from 2A993 to 2A983, more accurately indicates the 
expanded number of countries to which BIS will control the equipment 
and related software and technology.

Regional Stability Controls

    This rule imposes regional stability (RS) controls on exports and 
reexports of explosives detection equipment controlled under ECCN 
2A983, as well as software and technology controlled under ECCNs 2D983 
and 2E983, to all destinations except countries in Country Group A:1, 
The Czech Republic, Hungary, Iceland, New Zealand and Poland. This is 
noted in the Country Chart, Supplement 1 to Part 738, by an X in RS 
column 2. Applications will be reviewed on a case-by-case basis, 
consistent with the licensing policy set forth for these items in 
section 742.6 of the EAR.

Anti-Terrorism Controls

    Anti-terrorism controls for explosives detection equipment 
classified under ECCN 2A983, previously 2A993, remain in effect for 
Iran, North Korea, Sudan, Syria, Cuba and Libya. With the creation of 
new ECCNs 2D983 and 2E983, BIS is imposing new license requirements for 
exports or reexports of such related software and technology to Iran, 
North Korea, Sudan and Syria for anti-terrorism reasons. Controls are 
maintained on this software and technology with respect to Cuba and 
Libya, since these items, previously classified as EAR99, were 
controlled to these countries under part 746 of the EAR. Applications 
to export or reexport such items to Cuba, Libya, Iran, North Korea, 
Sudan, and Syria are subject to a general policy of denial. 
Applications to export items controlled for more than one reason are 
reviewed under all applicable licensing policies, as provided in Sec.  
742.1(f).

Respective Licensing Responsibilities of BIS and the Department of the 
Treasury

    With regard to licensing jurisdiction and licensing 
responsibilities of BIS and the Department of the Treasury's Office of 
Foreign Assets Control (OFAC) for exports to embargoed countries, this 
rule does not affect exports to destinations subject to comprehensive 
export restrictions--Cuba, Libya, Iran, Iraq and Sudan--since a general 
policy of denial already applies to such exports. For most of these 
destinations, BIS and OFAC have allocated licensing responsibility so 
that exporters need to obtain a license from only one agency. Exporters 
need a license only from OFAC for exports and reexports to Iraq and 
Iran, and for exports to Libya. A license is required from both OFAC 
and BIS for exports and reexports of items controlled under 2A983, 
2D983 and 2E983 to Sudan and reexports involving U.S. persons to Libya. 
Exporters need a license only from BIS for exports and reexports of 
items controlled under 2A983, 2D983 and 2E983 to Cuba and for reexports 
of such items by non-U.S. persons to Libya. Exporters need a license 
only from BIS for exports and reexports of items controlled under 
2A983, 2D983 and 2E983 to North Korea and Syria, non-embargoed 
countries.
    BIS will consider transactions involving contracts predating March 
21, 2003 for exports or reexports of 2A983, 2D983 and 2E983 items to 
countries other than those in Country Group E (Supplement 1 to part 
740) as set forth in section 742.6(c), as revised herein. For exports 
of such items to Iran, North Korea, Syria and Sudan, contract sanctity 
will apply as set forth in Supplement 2 of part 742.

Available License Exceptions--RPL, TSU and GOV

    License Exception Servicing and Replacement of Parts and Equipment 
(RPL) may be used to export and reexport one-for-one replacement parts, 
and servicing and replacement of equipment to most destinations. The 
use of RPL, as provided in section 740.10, is restricted to the repair 
or servicing of explosives detection equipment controlled under ECCN 
2A983 and related software controlled under ECCN 2D983 that were 
previously legally exported or reexported. As set forth in new section 
740.10(a)(3)(v), the one-for-one replacement of parts provision set 
forth in section 740.10(a) may not be used for exports of explosives 
detection equipment controlled under ECCN 2A983 and related software 
controlled under ECCN 2D983 to countries in Country Group E:1. Also, as 
currently set forth in paragraph 740.10(b)(2)(iv), repaired equipment 
or software may not be exported or reexported to countries in Country 
Group E:1. Also note that as provided in paragraph 740.10(b)(3)(i)(D), 
shipments may not be made to Country Group E:1 or to any other 
destinations to replace defective or otherwise unusable equipment owned 
or controlled by, or leased or chartered to, a national of any E:1 
country.
    In addition, License Exception Technology and Software--
Unrestricted (TSU), as provided in section 740.13(a), may be used to 
export and reexport operation technology and software controlled under 
ECCNs 2D983 and 2E983. This operation technology is the minimum 
technology necessary for the installation, operation, maintenance 
(checking), and repair of those products legally exported or reexported 
that are controlled under 2A983. TSU section 740.13(c) may be used to 
export and reexport software updates only to correct errors (``fixes'' 
to ``bugs'') in software controlled under 2D983 legally exported or 
reexported (original software). The software updates may be exported or 
reexported only to the same consignee to whom the software was 
originally exported or reexported and the software updates may not 
enhance

[[Page 16210]]

the functional capabilities of the original software.
    License Exception Governments, International Organizations, and 
International Inspections Under the Chemical Weapons Convention (GOV) 
may be used to export and reexport items controlled under ECCNs 2A983, 
2D983 and 2E983. This exception is restricted to export and reexport of 
items for official use by U. S. Government personnel and agencies, as 
set forth in Sec.  740.11(b)(2)(ii).
    To ensure accountability while allowing practical maintenance, 
special records must be maintained when utilizing License Exception RPL 
to repair or service previously legally exported or reexported items 
controlled under ECCNs 2A983 and 2D983. The same requirement applies 
when utilizing License Exception TSU to export or reexport operation 
technology and software controlled under ECCNs 2D983 and 2E983. The 
special recordkeeping requirements are described in sections 740.10(c) 
and 740.13(f), respectively.
    BIS is taking this action after consultation with, and upon the 
recommendation of, the Secretary of State. Consistent with the 
provisions of the Export Administration Act (EAA), as amended, BIS 
submitted a foreign policy report to Congress indicating the imposition 
of new foreign policy controls for regional stability reasons on March 
21, 2003.
    Although the Export Administration Act expired on August 20, 2001, 
Executive Order 13222 of August 17, 2001 (66 FR 44025, August 22, 
2001), as extended by Notice of August 14, 2002 (67 FR 53721, August 
16, 2002), continues the Export Administration Regulations in effect 
under the International Emergency Economic Powers Act.

Saving Clause

    Shipments of items removed from License Exception eligibility or No 
License Required (NLR) status as a result of this regulatory action 
that were on dock for loading, on lighter, laden aboard an exporting 
carrier, or en route aboard a carrier to a port of export, on April 3, 
2003, pursuant to actual orders for export to a foreign destination, 
may proceed to that destination under the previous License Exception 
eligibility or NLR status provisions so long as they have been exported 
from the United States before May 5, 2003. Any such items not actually 
exported before midnight on May 5, 2003 require a license in accordance 
with this regulation.

Rulemaking Requirements

    1. This interim rule has been determined not to be significant for 
purposes of E.O. 12866.
    2. Notwithstanding any other provision of law, no person is 
required to, nor shall any person be subject to a penalty for failure 
to comply with a collection of information, subject to the Paperwork 
Reduction Act (PRA), unless that collection of information displays a 
currently valid OMB Control Number. This rule involves a collection of 
information approved by the Office of Management and Budget under 
control number 0694-0088, ``Multi-Purpose Application,'' which carries 
a burden hour estimate of 40 minutes per electronic submission and 45 
minutes for a manual submission. This burden hour estimate takes into 
consideration the reporting time for new license requirements for 
explosives detection equipment and related software and technology 
imposed through this final rule, and includes the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collections of information. Public comment is sought regarding whether 
the proposed collection of information requirements are necessary for 
the proper performance of the functions of the agency, including 
whether the information shall have practical utility; the accuracy of 
the burden estimates; ways to enhance the quality, utility, and clarity 
of the information to be collected; and ways to minimize the burden of 
the collection of information, including the use of automated 
collection techniques or other forms of technology. Send comments 
regarding this burden estimate or any other aspect of these collections 
of information, including suggestions for reducing the burden, to OMB 
Desk Officer, New Executive Office Building, Washington, DC 20503; and 
to the Regulatory Policy Division, Bureau of Industry and Security, 
Department of Commerce, P.O. Box 273, Washington, DC 20044.
    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 (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 interim rule. Because 
a notice of proposed rulemaking and an opportunity for public comment 
are not required to be given for this rule under Title 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 not applicable.
    However, because of the importance of the issues raised by these 
regulations, this rule is being issued in interim form and BIS will 
consider comments in the development of the final regulations.
    Accordingly, the Department of Commerce (the Department) encourages 
interested persons who wish 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 May 19, 2003. 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 persons 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 available for public 
inspection.
    The public record concerning this regulation will be maintained in 
the Bureau of Industry and Security Freedom of Information Records 
Inspection Facility, Room 6881, 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

[[Page 16211]]

Code of Federal Regulations. Information about the inspection and 
copying of records at the facility may be obtained from the Bureau of 
Industry and Security Freedom of Information Officer, at the above 
address or by calling (202) 482-0500.

List of Subjects

5 CFR Part 740

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

15 CFR Part 742

    Exports, Foreign trade.

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business infromation, Exports, Foreign trade, Reporting 
and recordkeeping requirements.

15 CFR Part 774

    Exports, Foreign trade, Reporting and recordkeeping requirements.

0
Accordingly, parts 740, 742, 764 and 774 of the Export Administration 
Regulations (15 CFR parts 730-799) are amended as follows:
0
1. The authority citation for part 740 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996 
Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; 
Notice of August 14, 2002, 67 FR 53721, August 16, 2002.

PART 740--[AMENDED]

0
2. Section 740.2 is amended by adding paragraph (a)(8) to read as 
follows:


Sec.  740.2  Restrictions on all License Exceptions.

    (a) * * *
    (8) The item is controlled under ECCNs 2A983, 2D983 or 2E983 and 
the License Exception is other than:
    (i) RPL, under the provisions of Sec.  740.10, including Sec.  
740.10(a)(3)(v), which prohibits exports and reexports of replacement 
parts to countries in Country Group E:1 (see Supplement 1 to part 
740));
    (ii) GOV, restricted to eligibility under the provisions of Sec.  
740.11(b)(2)(ii); or
    (iii) TSU, under the provisions of Sec.  740.13(a) and (c).

0
3. Section 740.10 is amended:
0
a. By redesignating paragraph (a)(3)(v) as (a)(3)(vi) and by adding new 
paragraph (a)(3)(v) and
0
b. By adding new paragraph (c) to read as follows:


Sec.  740.10  Servicing and Replacement of Parts and Equipment (RPL).

* * * * *
    (a) * * *
    (3) * * *
    (v) No replacement parts may be exported to countries in Country 
Group E:1 if the commodity to be repaired is explosives detection 
equipment controlled under ECCN 2A983 or related software controlled 
under ECCN 2D983.
* * * * *
    (c) Special recordkeeping requirements: ECCNs 2A983 and 2D983. (1) 
In addition to any other recordkeeping requirements set forth elsewhere 
in the EAR, exporters are required to maintain records, as specified in 
this section, for any items exported or reexported pursuant to License 
Exception RPL to repair or service previously legally exported or 
reexported items controlled under ECCNs 2A983 and 2D983. The following 
information must be specially maintained for each such export or 
reexport transaction:
    (i) A description of the equipment replaced, repaired or 
serviced;
    (ii) The type of repair or service;
    (iii) Certification of the destruction or return of equipment 
replaced;
    (iv) Location of the equipment replaced, repaired or serviced;
    (v) The name and address of who received the items for 
replacement, repair or service;
    (vi) Quantity of items shipped; and
    (vii) Country of ultimate destination.
    (2) Records maintained pursuant to this section may be requested 
at any time by an appropriate BIS official as set forth in Sec.  
762.7 of the EAR.


0
4. Section 740.13 is amended by adding paragraph (f) to read as 
follows:


Sec.  740.13  Technology and Software--Unrestricted (TSU).

* * * * *
    (f) Special recordkeeping requirements: ECCNs 2D983 and 2E983. In 
addition to any other recordkeeping requirements set forth elsewhere in 
the EAR, exporters are required to maintain records, as specified in 
this paragraph, when exporting operation software or technology 
controlled under ECCNs 2D983 and 2E983, respectively, under License 
Exception TSU. Records maintained pursuant to this section may be 
requested at any time by an appropriate BIS official as set forth in 
Sec.  762.7 of the EAR. The following information must be specially 
maintained for each export or reexport transaction, under License 
Exception TSU, of operation software and technology controlled by ECCNs 
2D983 and 2E983:
    (1) A description of the software or technology exported or 
reexported, including the ECCN, as identified on the CCL;
    (2) A description of the equipment for which the software or 
technology is intended to be used, including the ECCN, as indentified 
on the CCL;
    (3) The intended end-use of the software or technology;
    (4) The name and address of the end-user;
    (5) The quantity of software shipped; and
    (6) The location of the equipment for which the software or 
technology is intended to be used, including the country of 
destination.

0
5. The authority citation for 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; 
Sec. 901-911, Publ. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 
12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 
33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 
1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
November 9, 2001, 66 FR 56965, 3 CFR, 2001 Comp., p. 917; Notice of 
August 14, 2002, 67 FR 53721, August 16, 2002.

PART 742--[AMENDED]

0
6. Section 742.6 is amended:
0
a. By revising paragraph (a)(2);
0
b. By adding paragraph (b)(3); and
0
c. By revising paragraph (c) to read as follows:


Sec.  742.6  Regional stability.

    (a) * * *
    (2) As indicated in the CCL and in RS Column 2 of the Country Chart 
(see Supplement No. 1 to part 738 of the EAR), a license is required to 
any destination except countries in Country Group A:1 (see Supplement 
No. 1 to part 740 of the EAR), The Czech Republic, Hungary, Iceland, 
New Zealand and Poland for items described on the CCL under ECCNs 
2A983, 2D983 and 2E983, and for military vehicles and certain 
commodities (specially designed) used to manufacture military 
equipment, described on the CCL in ECCNs 0A018.c, 1B018.a, 2B018, and 
9A018.a and .b.
* * * * *
    (b) * * *
    (3) For terrorist-designated countries, the applicable licensing 
policies are found in parts 742 and 746 of the EAR.
* * * * *
    (c) Contract sanctity date: March 21, 2003. This contract sanctity 
date applies only to items controlled under ECCNs 2A983, 2D983 and 
2E983 destined for

[[Page 16212]]

countries not listed in Country Group E (Supplement 1 to part 740). See 
parts 742 and 746 for the contract sanctity requirements applicable to 
exports and reexports to countries listed in Country Group E.
* * * * *


0
7. Section 742.8 is amended by revising the phrase ``through (c)(43)'' 
in paragraph (a)(4)(ii) to read ``through (c)(44)'.


0
8. Section 742.9 is amended:
0
a. By revising the phrase ``through (c)(43)'' in paragraph (a)(3)(ii) 
to read ``through (c)(44)'';
0
b. By revising paragraph (b)(1)(vi);
0
c. By redesignating paragraph (b)(1)(vii) as (b)(1)(ix) and 
(b)(1)(viii) as (b)(1)(x); and
0
d. By adding new paragraphs (b)(1)(vii), (b)(1) (viii) and (b)(1)(xi) 
to read as follows:


Sec.  742.9  Anti-terrorism: Syria.

    (b) * * *
    (1) * * *
    (vi) Explosives detection equipment controlled under ECCN 2A983.
    (vii) ``Software'' (ECCN 2D983) specially designed or modified for 
the ``development'', ``production'' or ``use'' of explosives detection 
equipment controlled by 2A983.
    (viii) ``Technology'' (ECCN 2E983) specially designed or modified 
for the ``development'', ``production'' or ``use'' of explosives 
detection equipment controlled by 2A983.
* * * * *
    (xi) Technology for the production of Chemical Weapons Convention 
(CWC) Schedule 2 and 3 chemicals controlled under ECCN 1E355.
0
9. Section 742.10 is amended:
0
a. By revising the phrase ``through (c)(43)'' in paragraph (a)(4)(ii) 
to read ``through (c)(44)'';
0
b. By revising paragraph (b)(1)(vi);
0
c. By redesignating (b)(1)(vii) as (b)(1)(ix), (b)(1)(viii) as 
(b)(1)(x) and (b)(1)(ix) as (b)(1)(xi); and
0
d. By adding new paragraphs (b)(1)(vii) and (b)(1)(viii) to read as 
follows:


Sec.  742.10  Anti-terrorism: Sudan.

* * * * *
    (b) * * *
    (1) * * *
    (vi) Explosives detection equipment controlled under ECCN 2A983.
    (vii) ``Software'' (ECCN 2D983) specially designed or modified for 
the ``development'', ``production'' or ``use'' of explosives detection 
equipment controlled by 2A983.
    (viii) ``Technology'' (ECCN 2E983) specially designed or modified 
for the ``development'', ``production'' or ``use'' of explosives 
detection equipment controlled by 2A983.
* * * * *

0
10. Section 742.19 is amended:
0
a. By revising the phrase ``(c)(6) through (c)(44)'' in paragraph 
(a)(3)(ii) to read ``(c)(6) through (c)(45)'';
0
b. By revising paragraph (b)(1)(xi);
0
c. By redesignating paragraphs (b)(1)(xii) through (b)(1)(xviii) as 
(b)(1)(xiv) through (b)(1)(xx);
0
d. By adding new paragraphs (b)(1)(xii), (b)(1)(xiii) and (b)(1)(xxi); 
and
0
e. By revising the phrase ``and (c)(44)'' in paragraph (b)(3) to read 
``and (c)(45)'' to read as follows:


Sec.  742.19  Anti-terrorism: North Korea.

* * * * *
    (b) * * *
    (1) * * *
    (xi) Explosives detection equipment controlled under ECCN 2A983.
    (xii) ``Software'' (ECCN 2D983) specially designed or modified for 
the ``development'', ``production'' or ``use'' of explosives detection 
equipment controlled by 2A983.
    (xiii) ``Technology'' (ECCN 2E983) specially designed or modified 
for the ``development'', ``production'' or ``use'' of explosives 
detection equipment controlled by 2A983.
* * * * *
    (xxi) Technology for the production of Chemical Weapons Convention 
(CWC) Schedule 2 and 3 Chemicals controlled under ECCN 1E355.
* * * * *

0
11. Supplement No. 2 to part 742 is amended:
0
a. By revising paragraph (b)(3)(ii);
0
b. By revising paragraph (c)(39);
0
c. By adding a new paragraph (c)(40);
0
d. By redesignating paragraphs (c)(41) through (c)(44) as (c)(42) 
through (c)(45); and
0
e. By adding a new paragraph (c)(41) to read as follows:

Supplement No. 2 to Part 742--Anti-Terrorism Controls: Iran, North 
Korea, Syria and Sudan Contract Sanctity Dates and Related Policies

* * * * *
    (b) * * *
    (3) * * *
    (ii) The following items to all end-users: for Iran, items in 
paragraphs (c)(6) through (c)(44) of this Supplement; for North Korea, 
items in paragraph (c)(6) through (c)(45) of this Supplement; for 
Sudan, items in paragraphs (c)(6) through (c)(14), and (c)(16) through 
(c)(44) of this Supplement; for Syria, items in paragraphs (c)(6) 
through (c)(8), (c)(10) through (c)(14), (c)(16) through (c)(19), and 
(c)(22) through (c)(44) of this Supplement.
* * * * *
    (c) * * *
    (39) Explosives detection equipment described in ECCN 2A983.
    (i) Explosives detection equipment described in ECCN 2A983, 
controlled prior to April 3, 2003 under ECCN 2A993.
    (A) Iran. Applications for all end-users in Iran of these items 
will generally be denied. Contract sanctity date: January 19, 1996.
    (B) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: January 19, 1996.
    (C) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date: January 19, 1996.
    (D) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied.
    (ii) Explosives detection equipment described in ECCN 2A983, not 
controlled prior to date April 3, 2003 under ECCN 2A993.
    (A) Iran. Applications for all end-users in Iran of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (B) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: March 21, 2003.
    (C) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (D) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied. Contract sanctity date: March 21, 
2003.
    (40) ``Software'' described in ECCN 2D983 specially designed or 
modified for the ``development'', ``production'' or ``use'' of 
explosives detection equipment.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (ii) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: March 21, 2003.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (iv) North Korea. Applications for all end-users in North Korea of 
these items

[[Page 16213]]

will generally be denied. Contract sanctity date: March 21, 2003.
    (41) ``Technology'' described in ECCN 2E983 specially designed or 
modified for the ``development'', ``production'' or ``use'' of 
explosives detection equipment.
    (i) Iran. Applications for all end-users in Iran of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (ii) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: March 21, 2003.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (iv) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied. Contract sanctity date: March 21, 
2003.
* * * * *


0
12. The authority citation for part 762 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
14, 2002, 67 FR 53721, August 16, 2002.

PART 762--[AMENDED]

0
13. Section 762.2 is amended:
    By redesignating paragraphs (b)(4) through (41) as (b)(6) through 
(43) and by adding new paragraphs (b)(4) and (5) to read as follows:


Sec.  762.2  Records to be retained.

* * * * *
    (b) * * *
    (4) Sec.  740.10(c), Servicing and replacement of parts and 
equipment (RPL);
    (5) Sec.  740.13(f), Technology and software--unrestricted (TSU);
* * * * *


0
14. The authority citation for part 774 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. 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; 30 U.S.C. 185(s), 
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; Sec. 901-911, Pub. L. 106-387; Sec. 
221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 14, 2002, 67 FR 53721, August 16, 2002.

PART 774--[AMENDED]

0
15. In Supplement No. 1 to part 774, the Commerce Control List, 
Category 2 (Materials Processing, Chemicals, Microorganisms, and 
Toxins), is amended by removing Export Control Classification Number 
(ECCN) 2A993 and adding a new ECCN 2A983 reading as follows:

2A983 Explosives or detonator detection equipment, both bulk and trace 
based, consisting of an automated device, or combination of devices for 
automated decision making to detect the presence of different types of 
explosives, explosive residue, or detonators; and parts and components, 
n.e.s.

License Requirements

Reason for Control: RS, AT

 
               Control(s)                          Country chart
 
RS applies to entire entry                RS Column 2
AT applies to entire entry                AT Column 1
 

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: (1) For the purpose of this entry, automated 
decision making is the ability of the equipment to detect explosives or 
detonators at the design or operator-selected level of sensitivity and 
provide an automated alarm when explosives or detonators at or above 
the sensitivity level are detected. This entry does not control 
equipment that depends on operator interpretation of indicators such as 
inorganic/organic color mapping of the items(s) being scanned. (2) 
Explosives and detonators include commercial charges and devices 
controlled by 1C018 and 1C992 and energetic materials controlled by 
ECCNs 1C011, 1C111, 1C239 and 22 CFR 121.1 Category V.
Items:


    Note: Explosives or detonation detection equipment in 2A983 
includes equipment for screening people, documents, baggage, other 
personal effects, cargo and/or mail.


    a. Explosives detection equipment for automated decision making to 
detect and identify bulk explosives utilizing, but not limited to, x-
ray (e.g., computed tomography, dual energy, or coherent scattering), 
nuclear (e.g., thermal neutron analysis, pulse fast neutron analysis, 
pulse fast neutron transmission spectroscopy, and gamma resonance 
absorption), or electromagnetic techniques (e.g., quadropole resonance 
and dielectrometry).
    b. Explosives detection equipment for automated decision making to 
detect and identify the presence of explosive residues utilizing, but 
not limited to, explosives trace detection techniques (e.g., 
chemiluminesence, ion mobility spectroscopy and mass spectroscopy).
    c. Detonator detection equipment for automated decision making to 
detect and identify initiation devices (e.g. detonators, blasting caps) 
utilizing, but not limited to, x-ray (e.g. dual energy or computed 
tomography) or electromagnetic techniques.


0
16. In Supplement No. 1 to part 774, the Commerce Control List, 
Category 2 (Materials Processing, Chemicals, Microorganisms, and 
Toxins), is amended by adding new Export Control Classification Number 
(ECCN) 2D983 reading as follows:

2D983 ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled by 
2A983.

License Requirements

Reason for Control: RS, AT

 
               Control(s)                          Country chart
 
RS applies to entire entry                RS Column 2
AT applies to entire entry                AT Column 1
 

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.


0
17. In Supplement No. 1 part 774, the Commerce Control List, Category 2 
(Materials Processing, Chemicals, Microorganisms, and Toxins), is 
amended by revising the heading of Export Control Classification Number 
(ECCN) 2E001 reading as follows:

2E001 ``Technology'' according to the General Technology Note for the 
``development'' of equipment or ``software'' controlled by 2A (except 
2A983, 2A991, or 2A994), 2B (except 2B991, 2B993, 2B996, 2B997, or 
2B998), or 2D (except 2D983, 2D991, 2D992, or 2D994).

* * * * *


0
18. In Supplement No. 1 part 774, the Commerce Control List, Category 2 
(Materials Processing, Chemicals, Microorganisms, and Toxins), is 
amended by revising the heading of Export Control Classification Number 
(ECCN) 2E002 reading as follows:


[[Page 16214]]


2E002 ``Technology'' according to the General Technology Note for the 
``production'' of equipment controlled by 2A (except 2A983, 2A991, or 
2A994), or 2B (except 2B991, 2B993, 2B996, 2B997, or 2B998).

* * * * *

0
19. In Supplement No. 1 to part 774, the Commerce Control List, 
Category 2 (Materials Processing, Chemicals, Microorganisms, and 
Toxins), is amended by adding new Export Control Classification Number 
(ECCN) 2E983 reading as follows:

2E983 ``Technology'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled by 
2A983, or the ``development'' of software controlled by 2D983.

License Requirements

Reason for Control: RS, AT

 
               Control(s)                          Country chart
 
RS applies to entire entry                RS Column 2
AT applies to entire entry                AT Column 1
 

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

    Dated: March 24, 2003.
James J. Jochum,
Assistant Secretary for Export Administration.
[FR Doc. 03-7696 Filed 4-2-03; 8:45 am]
BILLING CODE 3510-33-P