[Federal Register Volume 69, Number 4 (Wednesday, January 7, 2004)]
[Rules and Regulations]
[Pages 873-874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-329]


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DEPARTMENT OF STATE

22 CFR Part 121

[Public Notice 4581]
RIN 1400-ZA06


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

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: This rule amends the International Traffic in Arms Regulations 
(ITAR) to remove from U.S. Munitions List (USML) jurisdiction certain 
quartz rate sensors when the sensors are integrated into and included 
as an integral part of a commercial standby inertial navigation system 
for use on a civil aircraft or exported solely for integration into 
such systems. Based on a case-by-case review, the Department will 
review requests to determine if a sensor is eligible for removal from 
the USML under this regulatory change. In such cases, the Department 
will provide the exporter with written confirmation of this 
determination and the export of the sensors will be under the licensing 
jurisdiction of the Department of Commerce. In all other cases, these 
items will continue to be covered by the

[[Page 874]]

USML and subject to State Department licensing.

EFFECTIVE DATE: January 7, 2004.

ADDRESSES: Interested parties are invited to submit written comments to 
the Department of State, Directorate of Defense Trade Controls, Office 
of Defense Trade Controls Policy, ATTN: Regulatory Change, Category 
VIII, 12th Floor, SA-1, Washington, DC 20522-0112 (202-663-2700). 
Comments will be accepted at any time.

FOR FURTHER INFORMATION CONTACT: Ann Ganzer, Director, Office of 
Defense Trade Controls Policy, Bureau of Political-Military Affairs, 
Department of State (202) 663-2700.

SUPPLEMENTARY INFORMATION: In conjunction with a request for Commodity 
Jurisdiction, the Department of State has determined that certain 
quartz rate sensors otherwise controlled under the ITAR are not subject 
to the licensing jurisdiction of the Department of State when 
integrated into backup inertial navigations systems for civil aircraft 
or exported solely for integration into such systems. This 
determination will be made on a case-by-case basis in response to 
requests for consideration under this regulatory change. U.S. exporters 
are requested to submit a General Correspondence to make a formal 
request for consideration by the Directorate of Defense Trade Controls. 
These requests will be favorably considered only where the sensor is an 
integral part of the commercial system or is exported solely for 
integration into such a system and is important for the safe operation 
of the civil aircraft. In making this determination, other factors will 
also be considered. Among them is the extent to which the sensors can 
be extracted without damage and used for a significant military 
application, the extent to which diversion of the sensors alone or in 
small quantities poses a threat to the national security or foreign 
policy interests of the United States, and the scope of controls that 
would be applicable to the commercial system if licensing jurisdiction 
were transferred to the Department of Commerce. Exports of quartz rate 
sensors determined by the State Department to not be subject to USML 
controls will be subject to the licensing jurisdiction of the 
Department of Commerce whether the sensors are being exported for 
integration abroad or being exported as an integral part of a 
commercial standby inertial navigation system.
    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 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 Fairness Act of 1996. 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, 
it is determined that this rule does not have sufficient federalism 
implications to warrant application of the consultation provisions of 
Executive Orders 12372 and 13132.

List of Subjects in 22 CFR Part 121

    Arms and munitions, Exports.


0
Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, Part 121 is amended as follows:

PART 121--THE UNITED STATES MUNITIONS LIST

0
1. The authority citation for part 121 continues to read as follows:

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 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.

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2. In Sec.  121.1 Category VIII at the end of paragraph (e) add the 
following note:


Sec.  121.1  General. The United States Munitions List.

* * * * *

Category VIII--Aircraft and Associated Equipment

* * * * *
    (e) * * *

    Note: (1) Category XII(d) or Category VIII(e) does not include 
quartz rate sensors if such items:
    (i) Are integrated into and included as an integral part of a 
commercial standby instrument system for use on civil aircraft prior 
to export or exported solely for integration into such a commercial 
standby instrument system, and
    (ii) When the exporter has been informed in writing by the 
Department of State that a specific quartz rate sensor or a quartz 
rate sensor integrated into a commercial standby instrument system 
has been determined to be subject to the licensing jurisdiction of 
the Department of Commerce in accordance with this section.
    (2) For controls in these circumstances, see the Commerce 
Control List. In all other circumstances, quartz rate sensors remain 
under the licensing jurisdiction of the Department of State under 
Category XII(d) or Category VIII(e) of the U.S. Munitions List and 
subject to the controls of the ITAR.

* * * * *

    Dated: January 7, 2004.
John R. Bolton,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 04-329 Filed 1-6-04; 8:45 am]
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