[Federal Register Volume 68, Number 206 (Friday, October 24, 2003)]
[Proposed Rules]
[Pages 60891-60895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26788]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 774

[Docket No. 031016261-3261-01]
RIN 0694-AC95


Computer Technology and Software, and Microprocessor Technology 
Eligible for Export or Reexport Under License Exception

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Proposed rule.

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SUMMARY: The Bureau of Industry and Security (BIS) proposes to expand 
the availability of license exceptions for exports and reexports of 
computer technology and software, and microprocessor technology on the 
Commerce Control List (CCL) of the Export Administration Regulations 
(EAR) under Export Classification Control Numbers (ECCNs) 3E002, 4D001 
and 4E001. These ECCNs control technology and software that can be used 
for the development, production, or use of computers, and development 
and production of microprocessors. The goal of this proposed rule is to 
solicit public comments to assist BIS in evaluating the effect of the 
proposed amendments. In addition, this proposed rule requests industry 
to suggest alternatives for a different method or parameter for 
controlling exports of computers and microprocessors, and the 
technology and software therefore.

DATES: Comments must be received by November 24, 2003.

ADDRESSES: Written comments (four copies) should be sent to Sharron 
Cook, Regulatory Policy Division, Office of Exporter Services, Bureau 
of Industry and Security, Department of Commerce, 14th and Pennsylvania 
Avenue, NW., P.O. Box 273, Room 2705, Washington, DC 20230; or one copy 
e-mailed to: [email protected]; or faxed to 202-482-3355.

FOR FURTHER INFORMATION CONTACT: Sharron Cook, Senior Export Policy 
Analyst, Office of Exporter Services, Regulatory Policy Division, 
Bureau of Industry and Security, Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Industry and Security (BIS) proposes to expand 
license exception availability under the Export Administration 
Regulations (EAR) for certain exports of computer technology and 
software and microprocessor technology. Industry has requested that BIS 
raise the Composite Theoretical Performance (CTP) eligibility level for 
computer and microprocessor technology and software to correspond with 
that for equipment, in order to enable companies to provide access to 
this technology and software to foreign nationals working in their U.S. 
and foreign facilities.

Computer Technology and Software

    The EAR control the export and reexport of technology and software 
for the development, production, or use of computers with a CTP greater 
than 28,000 Millions of Theoretical Operations per Second (MTOPS) under 
Export Control Classification Numbers (ECCNs) 4D001 and 4E001 of the 
Commerce Control List (CCL). Such technology and software requires a 
license, for national security (NS) reasons, to all destinations except 
Canada. However, ECCNs 4D001 and 4E001 provide that License Exception 
TSR (section 740.6 of the EAR) is available for exports and reexports 
of such technology and software: (1) For computers of unlimited CTP to 
22 countries; and (2) for computers with a CTP less than or equal to 
33,000 MTOPS to countries listed in Country Group B (Supplement No. 1 
to part 740). License Exception TSR availability for computer software 
and technology is inconsistent with License Exception CTP availability 
for computer hardware in two ways: (1) The countries eligible; and (2) 
the MTOPS level.
    On June 4, 2002, BIS published a notice of inquiry (67 FR 39675), 
requesting information from industry to assist BIS in evaluating the 
license exception eligibility level of 33,000 MTOPS for exports and 
reexports of computer technology and software controlled under ECCNs 
4D001 and 4E001. BIS received four comments in response to the notice 
of inquiry, all stating that the license exception threshold should be 
adjusted.
    This proposed rule would remove License Exception TSR eligibility 
for certain computer technology and software under ECCNs 4D001 and 
4E001, but would make this computer technology and software eligible 
for License Exception CTP (section 740.7 of the EAR). License Exception 
CTP currently only applies to computer hardware classified under ECCN 
4A003. The 22 countries that are currently eligible to receive 
technology and

[[Page 60892]]

software for computers with unlimited CTP under License Exception TSR 
would continue to be eligible for the same, unlimited level of 
technology and software under License Exception CTP. All of these 22 
countries are in ``Computer Tier 1'' for purposes of License Exception 
CTP. Technology and software for computers with a CTP equal to or less 
than 150,000 MTOPS for export or reexport to Computer Tier 1 
destinations other than these 22 countries would be eligible for 
License Exception CTP. Technology and software for computers with a CTP 
equal to or less than 75,000 MTOPS would be eligible for License 
Exception CTP to ``Computer Tier 3'' destinations. Exports and 
reexports to countries in Country Group E:1 (terrorist supporting 
countries) will continue to be ineligible for License Exception CTP. 
The following chart shows the proposed eligibility thresholds under 
License Exception CTP.

 Proposed Computer Technology and Software Eligibility Thresholds Under
                          License Exception CTP
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Unlimited                   22 ``Tier 1'' countries: Australia, Austria,
CTP                          Belgium, Canada, Denmark, Finland, France,
                             Germany, Greece, Ireland, Italy, Japan,
                             Luxembourg, the Netherlands, New Zealand,
                             Norway, Portugal, Spain, Sweden,
                             Switzerland, Turkey, and the United
                             Kingdom.
---------------------------
150,000                     All other ``Tier 1'' countries: Antigua and
MTOPS                        Barbuda, Argentina, Bahamas, Bangladesh,
                             Barbados, Belize, Benin, Bhutan, Bolivia,
                             Botswana, Brazil, Brunei, Burkina Faso,
                             Burma, Burundi, Cameroon, Cape Verde,
                             Central African Republic, Chad, Chile,
                             Colombia, Congo, Costa Rica, Cote d'Ivoire,
                             Cyprus, Czech Republic, Dominica, Dominican
                             Republic, Ecuador, El Salvador, Equatorial
                             Guinea, Eritrea, Estonia, Ethiopia, Fiji,
                             Gabon, Gambia (The), Ghana, Grenada,
                             Guatemala, Guinea, Guinea-Bissau, Guyana,
                             Haiti, Honduras, Hong Kong, Hungary,
                             Iceland, Indonesia, Jamaica, Kenya,
                             Kiribati, Korea (Republic of), Latvia,
                             Lesotho, Liberia, Liechtenstein, Lithuania,
                             Madagascar, Malawi, Malaysia, Maldives,
                             Mali, Malta, Marshall Islands, Mauritius,
                             Mexico, Micronesia (Federated States of),
                             Monaco, Mozambique, Namibia, Nauru, Nepal,
                             Nicaragua, Niger, Nigeria, Palau, Panama,
                             Papua New Guinea, Paraguay, Peru,
                             Philippines, Poland, Romania, Rwanda, St.
                             Kitts & Nevis, St. Lucia, St. Vincent and
                             Grenadines, Sao Tome & Principe, San
                             Marino, Senegal, Seychelles, Sierra Leone,
                             Singapore, Slovakia, Slovenia, Solomon
                             Islands, Somalia, South Africa, Sri Lanka,
                             Surinam, Swaziland, Taiwan, Tanzania, Togo,
                             Tonga, Thailand, Trinidad and Tobago,
                             Tuvalu, Uganda, Uruguay, Vatican City,
                             Venezuela, Western Sahara, Western Samoa,
                             Zaire, Zambia, and Zimbabwe.
---------------------------
75,000                      All ``Tier 3'' countries: Afghanistan,
MTOPS                        Albania, Algeria, Andorra, Angola, Armenia,
                             Azerbaijan, Bahrain, Belarus, Bosnia &
                             Herzegovina, Bulgaria, Cambodia, China
                             (People's Republic of), Comoros, Croatia,
                             Djibouti, Egypt, Georgia, India, Israel,
                             Jordan, Kazakhstan, Kuwait, Kyrgyzstan,
                             Laos, Lebanon, Macau, Macedonia (The Former
                             Yugoslav Republic of), Mauritania, Moldova,
                             Mongolia, Morocco, Oman, Pakistan, Qatar,
                             Russia, Saudi Arabia, Tajikistan, Tunisia,
                             Turkmenistan, Ukraine, United Arab
                             Emirates, Uzbekistan, Vanuatu, Vietnam,
                             Yemen, and Federal Republic of Yugoslavia
                             (Serbia and Montenegro).
---------------------------
Not eligible                Cuba, Iran, Iraq, Libya, North Korea, Sudan,
                             and Syria.
------------------------------------------------------------------------

Microprocessor Technology

    Technology for the development and production of microprocessors 
that have a CTP exceeding 530 MTOPS and an arithmetic logic unit with 
an access width of 32 bits or more are controlled by ECCN 3E002. 
License Exception TSR is available for the export and reexport of 
technology for microprocessors of unlimited CTP to occur to all Country 
Group B countries (see Supplement No. 1 to part 740 of the EAR), if all 
the criteria of License Exception TSR are met (see section 740.6 of the 
EAR for License Exception TSR requirements).
    This rule proposes to make technology for the development and 
production of microprocessors also eligible for License Exception CIV. 
The threshold for eligibility would be limited by CTP at a level that 
is yet to be determined. License Exception CIV is available for exports 
and reexports of items that require a license for national security 
reasons only that are destined to civil end-users for civil end-uses in 
Country Group D:1, except North Korea. CIV may not be used for exports 
and reexports to military end-users or to known military uses. In 
addition to conventional military activities, military uses include any 
proliferation activities described in part 744 of the EAR. It should be 
noted that a license is also required for transfer of items exported 
under License Exception CIV to military end-users or end-uses within 
Country Group D:1 countries.

Request for Comments

    The goals of this proposed rule are to solicit public comments to 
assist BIS in evaluating the effect the proposed amendments to expand 
license exception availability would have on industry, and to discover 
whether industry would suggest a different method or parameter for 
controlling exports of computers and microprocessors, and the 
technology and software therefor. To ensure maximum public 
participation in the review process, comments are solicited for the 
next 30 days. In particular, BIS is interested in comments relating to 
the following:
    1. What impact would the proposed revision of computer technology 
and software controls have on your company?
    2. Is there another proposal regarding computer technology and 
software, and microprocessor technology controls that you would like 
Commerce to consider? If so, describe your proposal in detail and 
please give technical and other justifications for your proposal.
    3. What is the highest CTP level for microprocessors currently 
being manufactured by your company?
    4. What should be the CTP MTOPS limitation for microprocessor 
technology under the proposed License Exception CIV? Please provide 
detailed technical and other justification for your proposal.
    5. How do other countries license the transfer of computer 
technology and software, and microprocessor technology? Have there been 
instances where your company has been placed at a competitive 
disadvantage based on current U.S. license requirements?
    6. What are your predictions for the CTP level of microprocessors 
that will be in production 3 and 5 years from now? On what basis did 
you make your predictions?
    7. What percentage of your research and development is 
accomplished: (1)

[[Page 60893]]

Outside of the United States; and (2) with the assistance of foreign 
nationals within the United States?
    8. Is there an alternative method or parameter for controlling 
exports of computers and microprocessors and the technology and 
software therefore that industry believes would be more in-line with 
the way industry produces, develops, or measures these items?
    Parties submitting comments are asked to be as specific as 
possible. The Department encourages interested persons who wish to 
comment to do so at the earliest possible time.
    The period for submission of comments will close November 24, 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 
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 comments on these 
regulations will be a matter of public record and will be available for 
public inspection and copying. The Department requires comments be 
submitted in written form.
    The public record concerning these comments will be maintained in 
the Bureau of Industry and Security, Office of Administration, U.S. 
Department of Commerce, Room 6883, 14th and Constitution Avenue, NW., 
Washington, DC 20230; (202) 482-0637. This component does not maintain 
a separate public inspection facility. Requesters should first view 
BIS's FOIA Web site (which can be reached through http://www.bis.doc.gov/foia). If the records sought cannot be located at this 
site, or if the requester does not have access to a computer, please 
call the phone number above for assistance.
    Although the Export Administration Act expired on August 20, 2001, 
Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp., p. 783 
(2002)), as extended by the Notice of August 14, 2002 (3 CFR, 2002 
Comp., p. 306 (2003)), continues the Regulations in effect under the 
International Emergency Economic Powers Act.

Rulemaking Requirements

    1. This proposed 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 regulation involves collections previously approved by the 
Office of Management and Budget under control numbers 0694-0088, 
``Multi-Purpose Application,'' which carries a burden hour estimate of 
45 minutes per manual submission and 40 minutes per electronic 
submission. Miscellaneous and recordkeeping activities account for 12 
minutes per submission.
    3. This rule does not contain policies with federalism implications 
as this term is defined in Executive Order 13132.
    4. Pursuant to 5 U.S.C. 553(b)(A), the provisions of the 
Administrative Procedure Act requiring a notice of proposed rulemaking 
and the opportunity for public comment are waived, because this 
regulation involves a general statement of policy and rule of agency 
procedure. 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 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, in view of the importance of this proposed rule, which 
represents the first comprehensive statement of BIS's approach toward 
these issues, BIS is seeking public comments before these revisions 
take effect. The period for submission of comments will close November 
24, 2003. BIS will consider all comments received before the close of 
the comment period in developing a final rule. Comments received after 
the end of the comment period will be considered if possible, but their 
consideration cannot be assured. BIS 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. BIS will return such comments and materials to the 
persons submitting the comments and will not consider them in the 
development of the final rule. All public comments on this proposed 
rule must be in writing (including fax or e-mail) and will be a matter 
of public record, available for public inspection and copying. The 
Office of Administration, Bureau of Industry and Security, U.S. 
Department of Commerce, displays these public comments on BIS's Freedom 
of Information Act (FOIA) Web site at http://www.bis.doc.gov/foia. This 
office does not maintain a separate public inspection facility. If you 
have technical difficulties accessing this Web site, please call BIS's 
Office of Administration at (202) 482-0637 for assistance.

List of Subjects

15 CFR Part 740

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

15 CFR Part 774

    Exports, Foreign trade, Reporting and recordkeeping requirements.

    Accordingly, parts 740 and 774 of the Export Administration 
Regulations (15 CFR parts 730-799) are proposed to be amended as 
follows:

PART 740--[AMENDED]

    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 7, 2003, 68 FR 47833, August 11, 2003.

    2. Section 740.7 is revised to read as follows:


Sec.  740.7  Computers (CTP).

    (a) Scope. (1) Commodities. License Exception CTP authorizes 
exports and reexports of computers, including ``electronic assemblies'' 
and specially designed components therefor controlled by ECCN 4A003, 
exported or reexported separately or as part of a system for 
consumption in Computer Tier countries as provided by this section. 
When evaluating your computer to determine License Exception CTP 
eligibility, use the CTP parameter to the exclusion of other technical 
parameters for computers classified under ECCN 4A003.a or .b, and 
``electronic assemblies'' under ECCN 4A003.c, except for parameters 
specified as Missile Technology (MT) concerns or 4A003.e (equipment 
performing analog-to-digital conversions exceeding the limits in ECCN 
3A001.a.5.a).
    (2) Technology and software. License Exception CTP authorizes 
exports and reexports of software and technology controlled by ECCNs 
4D001 and 4E001 specially designed or modified for the ``development'', 
``production'', or ``use''

[[Page 60894]]

of computers, including ``electronic assemblies'' and specially 
designed components therefor classified in ECCN 4A003 or 4A994 to 
Computer Tier countries as provided by this section.
    (b) Restrictions. (1) Related equipment controlled under 4A003.d 
and .g may not be exported or reexported under this License Exception 
when exported or reexported separately from eligible computers 
authorized under this License Exception.
    (2) Access and release restrictions. (i) Computers. Computers 
eligible for License Exception CTP may not be accessed either 
physically or computationally by nationals of Cuba, Iran, Iraq, Libya, 
North Korea, Sudan, or Syria, except that commercial consignees 
described in Supplement No. 3 to part 742 of the EAR are prohibited 
only from giving such nationals user-accessible programmability.
    (ii) Technology and software. Technology and software eligible for 
License Exception CTP may not be released to nationals of Cuba, Iran, 
Iraq, Libya, North Korea, Sudan, or Syria.
    (3) Computers, software and technology eligible for License 
Exception CTP may not be reexported or retransferred without prior 
authorization from BIS, i.e., a license, a permissive reexport, another 
License Exception, or ``No License Required''. This restriction must be 
conveyed to the consignee, via the Destination Control Statement, see 
Sec.  758.6 of the EAR. Additionally, the end-use and end-user 
restrictions in paragraph (d)(3) of this section must be conveyed to 
any consignee in Computer Tier 3.
    (4) You may not use this License Exception to export or reexport 
items that you know will be used to enhance the CTP beyond the 
eligibility limit allowed to your country of destination.
    (c) Computer Tier 1. (1) Eligible countries. The countries that are 
eligible to receive exports under this License Exception include 
Antigua and Barbuda, Argentina, Australia, Austria, Bahamas, 
Bangladesh, Barbados, Belgium, Belize, Benin, Bhutan, Bolivia, 
Botswana, Brazil, Brunei, Burkina Faso, Burma, Burundi, Cameroon, Cape 
Verde, Central African Republic, Chad, Chile, Colombia, Congo, Costa 
Rica, Cote d'Ivoire, Cyprus, Czech Republic, Denmark, Dominica, 
Dominican Republic, Ecuador, El Salvador, Equatorial Guinea, Eritrea, 
Estonia, Ethiopia, Fiji, Finland, France, Gabon, Gambia (The), Germany, 
Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, 
Haiti, Honduras, Hong Kong, Hungary, Iceland, Indonesia, Ireland, 
Italy, Jamaica, Japan, Kenya, Kiribati, Korea (Republic of), Latvia, 
Lesotho, Liberia, Liechtenstein, Lithuania, Luxembourg, Madagascar, 
Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritius, 
Mexico, Micronesia (Federated States of), Monaco, Mozambique, Namibia, 
Nauru, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, 
Norway, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, 
Poland, Portugal, Romania, Rwanda, St. Kitts & Nevis, St. Lucia, St. 
Vincent and Grenadines, Sao Tome & Principe, San Marino, Senegal, 
Seychelles, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon 
Islands, Somalia, South Africa, Spain, Sri Lanka, Surinam, Swaziland, 
Sweden, Switzerland, Taiwan, Tanzania, Togo, Tonga, Thailand, Trinidad 
and Tobago, Turkey, Tuvalu, Uganda, United Kingdom, Uruguay, Vatican 
City, Venezuela, Western Sahara, Western Samoa, Zaire, Zambia, and 
Zimbabwe.
    (2) Eligible commodities. All computers, including electronic 
assemblies and specially designed components therefor are eligible for 
License Exception CTP to Tier 1 destinations, subject to the 
restrictions in paragraph (b) of this section.
    (3) Eligible software and technology. (i) Software and technology 
described in paragraph (a)(2) of this section are eligible for License 
Exception CTP to: Australia, Austria, Belgium, Canada, Denmark, 
Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, 
the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, 
Switzerland, Turkey, or the United Kingdom; and.
    (ii) Software and technology described in paragraph (a)(2) of this 
section for computers with a CTP less than or equal to 150,000 MTOPS 
are eligible for License Exception CTP to Tier 1 destinations, other 
than the destinations that are listed in paragraph (c)(3)(i) of this 
section, subject to the restrictions in paragraph (b) of this section.
    (d) Computer Tier 3. (1) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, 
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina, Bulgaria, Cambodia, 
China (People's Republic of), Comoros, Croatia, Djibouti, Egypt, 
Georgia, India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, 
Lebanon, Macau, Macedonia (The Former Yugoslav Republic of), 
Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar, Russia, 
Saudi Arabia, Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab 
Emirates, Uzbekistan, Vanuatu, Vietnam, Yemen, and Federal Republic of 
Yugoslavia (Serbia and Montenegro).
    (2) Eligible commodities. All computers, including electronic 
assemblies and specially designed components therefor having a CTP less 
than or equal to 190,000 MTOPS are eligible for License Exception CTP 
to Tier 3 destinations, subject to the restrictions in paragraphs (b) 
and (d)(4) of this section.
    (3) Eligible software and technology. Software and technology 
described in paragraph (a)(2) of this section for computers with a CTP 
less than or equal to 75,000 MTOPS are eligible for License Exception 
CTP to Tier 3 destinations, subject to the restrictions in paragraphs 
(b) and (d)(4) of this section.
    (4) Eligible exports. Only exports and reexports to permitted end-
users and end-uses located in countries in Computer Tier 3 are 
permitted under License Exception CTP; however, License Exception CTP 
does not authorize exports and reexports to Computer Tier 3 for 
nuclear, chemical, biological, or missile end-users and end-uses 
subject to license requirements under Sec.  744.2, Sec.  744.3, Sec.  
744.4, and Sec.  744.5 of the EAR. Such exports and reexports will 
continue to require a license and will be considered on a case-by-case 
basis. Retransfers to these end-users and end-uses in eligible 
countries are strictly prohibited without prior authorization.
    (e) Reporting requirements. See Sec.  743.1 of the EAR for 
reporting requirements of certain items under License Exception CTP.

PART 774--[AMENDED]

    3. 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 7, 2003, 68 FR 47833, August 11, 2003.

    4. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3--Electronics, Export Control Classification Number (ECCN) 
3E002 is amended by revising the ``CIV'' paragraph in the License 
Exceptions section, to read as follows:
    3E002 ``Technology'' according to the General Technology Note other 
than

[[Page 60895]]

that controlled in 3E001 for the ``development'' or ``production'' of 
``microprocessor microcircuits'', ``micro-computer microcircuits'' and 
microcontroller microcircuits having a ``composite theoretical 
performance'' (``CTP'') of 530 million theoretical operations per 
second (MTOPS) or more and an arithmetic logic unit with an access 
width of 32 bits or more.
* * * * *

License Exceptions

    CIV: Yes, for general purpose microprocessors with a CTP equal to 
or less than [NUMBER YET TO BE DETERMINED].
    TSR: * * *
* * * * *
    5. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4--Computers, Export Control Classification Number (ECCN) 
4D001 is amended by revising the License Exception section, to read as 
follows:
    4D001 ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment or ``software'' 
controlled by 4A001 to 4A004, or 4D (except 4D980, 4D993 or 4D994), and 
other specified software, see List of Items Controlled.
* * * * *

License Exceptions

    CIV: N/A
    TSR: Yes, for all other ``software'' not eligible for License 
Exception CTP.
    CTP: Yes (see 740.7 of the EAR for eligibility criteria).
* * * * *
    6. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4--Computers, Export Control Classification Number (ECCN) 
4E001 is amended by revising the License Exception section, to read as 
follows:
    4E001 ``Technology'' according to the General Technology Note, for 
the ``development'', ``production'' or ``use'' of equipment or 
``software'' controlled by 4A (except 4A980, 4A993 or 4A994) or 4D 
(except 4D980, 4D993, 4D994), and other specified technology, see List 
of Items Controlled.
* * * * *

License Exceptions

    CIV: N/A.
    TSR: Yes, for all other ``technology'' not eligible for License 
Exception CTP.
    CTP: Yes (see 740.7 of the EAR for eligibility criteria).
* * * * *

    Dated: October 20, 2003.
Matthew S. Borman,
Acting Assistant Secretary for Export Administration.
[FR Doc. 03-26788 Filed 10-23-03; 8:45 am]
BILLING CODE 3510-33-P