[Federal Register Volume 69, Number 61 (Tuesday, March 30, 2004)]
[Rules and Regulations]
[Pages 16478-16481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7005]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 742 and 774

[Docket No. 031201299-3299-01]
RIN 0694-AC54


Removal of ``National Security'' Controls From, and Imposition of 
``Regional Stability'' Controls on, Certain Items on the Commerce 
Control List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule amends the Commerce Control List (CCL) to remove 
``National Security'' (NS) controls from, and to impose ``Regional 
Stability'' (RS) controls on, certain items in order to conform with 
section 5(c)(6)(A) of the Export Administration Act (Act), which limits 
the duration of U.S. unilaterally imposed NS controls. Although the Act 
has expired, the Bureau of Industry and Security continues to carry out 
the provisions of the Act, as appropriate and to the extent permitted 
by law, pursuant to Executive Order 13222 and the International 
Emergency Economic Powers Act. This rule also revises two references to 
the ``International Munitions List'' to read ``Wassenaar Munitions 
List'' to reflect the correct current title of that document and amends 
the language controlling muzzle loading (black powder) firearms to 
conform with the corresponding language on the Wassenaar Munitions 
List.

DATES: This rule is effective March 30, 2004.

FOR FURTHER INFORMATION CONTACT: William Arvin, Regulatory Policy 
Division, Office of Exporter Services, Bureau of Export Administration, 
Telephone: (202) 482-0436.

SUPPLEMENTARY INFORMATION:

Background

    The Export Administration Regulations (EAR) regulate exports from 
the United States and reexports of U.S. origin items for a variety of 
reasons including ``National Security.'' NS controls are generally 
imposed to implement decisions of the Wassenaar Arrangement, a 
multilateral export control agreement. This rule amends the EAR to 
conform the CCL to section 5(c)(6)(A) of the Act, which provides that 
unilateral NS controls--i.e., those NS controls imposed only by the 
United States, instead of in furtherance of international agreements, 
expire six months after enactment of the Act or of the control, 
whichever is later.
    The Act provides authority to renew unilateral NS controls for 
successive six month periods if the Secretary of Commerce determines, 
under section 5(f) or (h)(6) of the Act, that there is no foreign 
availability of the items at issue. The Act provides alternative 
authority to renew a control for two six-month periods if the President 
is actively pursuing negotiations to end such foreign availability. No 
such determinations have been made and no such negotiations are being 
undertaken with respect to the items in the affected ECCNs.
    Although the Act expired on August 20, 2001, Executive Order 13222 
of August 17, 2001 (3 CFR, 2001 Comp., p. 783), as extended by the 
Notice of August 7, 2003 (68 FR 47833, August 11, 2003), continues the 
Regulations in effect under the International Emergency Economic Powers 
Act. The Bureau of Industry and Security (BIS) continues to carry out 
the provisions of the Act, as appropriate and to the extent permitted 
by law, pursuant to Executive Order 13222.
    This rule amends the CCL to remove NS as a reason for control with 
respect to those items which the Wassenaar Arrangement has removed from 
its control lists. However, BIS has decided to continue to control the 
export and reexport of these items pursuant to foreign policy-based 
``Regional Stability'' (RS) controls because these items have the 
potential to contribute to military capabilities in a manner that could 
alter regional military balances contrary to the foreign policy 
interests of the United States. The affected items are as follows:
     Power controlled searchlights and control units 
thereof, designed for military use, and equipment mounting such units; 
and specially designed parts and accessories thereof;

[[Page 16479]]

     Bayonets, and the technology for the 
development, production or use of bayonets; and
     Marine boilers designed to have any of the 
following characteristics: heat release rate (at maximum rating) equal 
to or in excess of 190,000 BTU per hour per cubic foot of furnace 
volume; or ratio of steam generated in pounds per hour (at maximum 
rating) to the dry weight of the boiler in pounds equal to or in excess 
of 0.83.
    This rule also amends the language controlling one item (muzzle 
loading (black powder) firearms) to conform with the corresponding 
language on the Munitions List promulgated by the Wassenaar 
Arrangement. The item is controlled by the United States as a result of 
its inclusion on the Wassenaar Munitions List for NS reasons.
    This rule also revises two references to the ``International 
Munitions List'' to read ``Wassenaar Munitions List'' to reflect the 
correct current title of that document.
    This rule implements these changes by modifying four existing 
Export Control Classification Numbers (ECCNs) (0A018, 0A988, 0E018 and 
8A018), and creating three new ECCNs (0A918, 0E918 and 8A918). It also 
amends the RS license requirements in section 742 of the EAR to include 
the three newly created ECCNs.
    The RS controls imposed by this rule are new foreign policy 
controls. As required by the Act, a report on the imposition of these 
controls was delivered to Congress on March 11, 2004. This rule makes 
the following specific changes to the EAR.
    In Sec.  742.6(a)(2), three newly created ECCNs (0A918, 0E918, and 
8A918) are added to the list of ECCNs for which Regional Stability 
controls apply.
    In supplement No. 1 to part 774 (The Commerce Control List), this 
rule makes the following changes.
    In ECCN 0A018, power controlled searchlights and related items, in 
paragraph .a, and bayonets, in paragraph .d, are moved to a newly 
created ECCN 0A918, which lists RS as its reason for control. 
Paragraphs 0A018 .b and .c are redesignated .a and .b, respectively. 
Paragraphs .e and .f are redesignated .c and .d, respectively. The new 
paragraph .c (formerly .e) covering muzzle loading firearms is 
rewritten to conform to the corresponding language in the Wassenaar 
Munitions List, Category ML1.a. A cross reference to ECCN 0A984 is 
added to paragraph .c to alert readers to the fact that certain 
shotguns are controlled by that entry. The phrase ``International 
Munitions List'' is replaced with ``Wassenaar Munitions List'' in the 
heading of ECCNs 0A018 and 8A018. Two references to the ``Office of 
Defense Trade Controls'' are revised to read ``Directorate of Defense 
Trade Controls'' to reflect the current name of that organization.
    New ECCN 0A918 is created to control power controlled searchlights, 
related items and bayonets, as described above, to ensure consistency 
with the structure of the CCL described in section 738.2 of the EAR, 
i.e., a ``0'' in the third place of an ECCN signifies a national 
security reason for control; a ``9'' in the third place of an ECCN 
signifies control for regional stability or other foreign policy 
reasons.
    ECCN 0A988 is modified by replacing ``0A018.f.1'' with 
``0A018.d.1'' in the heading and in the ``Controls'' paragraph of the 
``Reason for Control'' section to match the paragraph redesignation in 
ECCN 0A018 noted above.
    ECCN 0E018 is modified by changing the phrase ``ECCN 0A018.b 
through 0A018.e'' in its heading to ``ECCN 0A018.a through ECCN 
0A018.c'' to match the paragraph redesignation of 0A018 noted above.
    A new ECCN 0E918 is created to control technology for the 
development, production or use of bayonets for RS reasons. Prior to 
publication of this rule, technology for the development, production, 
or use of bayonets was controlled for NS reasons under ECCN 0E018, 
which controls technology related to commodities that are controlled 
for NS reasons in ECCN 0A018. This new ECCN conforms the reason for 
control for technology related to bayonets to the reason for control 
for the bayonets themselves.
    The marine boilers described in paragraph b.4 of ECCN 8A018 are 
removed from that ECCN and listed in a newly created ECCN 8A918, which 
lists RS as the reason for control.

Rulemaking Requirements

    1. This rule has been determined to be not significant for purposes 
of Executive Order 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 of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
involves a collection of information subject to the PRA. This 
collection has been approved by OMB under control number 0694-0088, 
``Multi-Purpose Application,'' which carries a burden hour estimate of 
58 minutes for a manual or electronic submission. Send comments 
regarding these burden estimates 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 Office of Administration, Bureau of Industry and 
Security, Department of Commerce, 14th Street and Pennsylvania Avenue, 
NW., Room 6883, Washington, DC 20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (5 U.S.C. 553(a)(1)). Further, no other 
law requires that a notice of proposed rulemaking and an opportunity 
for public comment be given for this final rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule under 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. Therefore, this regulation is 
issued in final form. Although there is no formal comment period, 
public comments on this regulation are welcome on a continuing basis. 
Comments should be submitted to William H. Arvin, Regulatory Policy 
Division, Bureau of Export Administration, U.S. Department of Commerce, 
Room 2705, 14th Street and Pennsylvania Avenue, NW., Washington, DC 
20230.

List of Subjects in 15 CFR Part 742 and Part 774

    Exports, Foreign trade.


0
Accordingly, the Export Administration Regulations (15 CFR Parts 730 
through 799) are amended as follows:

PART 742--[AMENDED]

0
1. The authority citation for part 742 is revised 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, Pub. 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.

[[Page 16480]]

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; Notice of October 29, 2003, 68 FR 62209, 
October 31, 2003.


0
2. In Sec.  742.6, paragraph (a)(2) is revised to read as follows:


Sec.  742.6  Regional stability.

    (a) * * *
    (1) * * *
    (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 
0A918, 0E918, 2A983, 2D983, 2E983, 8A918, 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.
* * * * *

PART 774--[AMENDED]

0
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.


0
4. In Supplement No. 1 to part 774, Category 0, Nuclear Materials, 
Facilities, and Equipment (and Miscellaneous Items), Export Control 
Classification Number 0A018, the heading, the License Exceptions 
section, and the Unit and Items paragraphs in the List of Items 
Controlled section is revised to read as follows:

0A018 Items on the Wassenaar Munitions List

* * * * *

License Exceptions

LVS: $5000 for 0A018.a
    $3000 for 0A018.b
    $1500 for 0A018.c and .d
    $0 for Rwanda
    GBS: N/A
    CIV: N/A

List of Items Controlled

    Unit: 0A018.a, and .b in $ value; 0A018.c and .d in number.
    Related Controls: * * *
    Related Definitions: * * *
    Items:
    a. Construction equipment built to military specifications, 
specially designed for airborne transport; and specially designed 
parts and accessories therefor;
    b. Specially designed components and parts for ammunition, 
except cartridge cases, powder bags, bullets, jackets, cores, 
shells, projectiles, boosters, fuses and components, primers, and 
other detonating devices and ammunition belting and linking machines 
(all of which are subject to the export licensing authority of the 
U.S. Department of State, Directorate of Defense Trade Controls). 
(See 22 CFR parts 120 through 130);
    c. Muzzle loading (black powder) firearms with a caliber less 
than 20 mm that were manufactured later than 1937 and that are not 
reproductions of firearms manufactured earlier than 1890;

    Note: 0A018.c does not control weapons used for hunting or 
sporting purposes that were not specially designed for military use 
and are not of the fully automatic type, but see ECCN 0984 
concerning shotguns.

    d. Military helmets, except:
    d.1. Conventional steel helmets other than those described by 
0A018.d.2 of this entry.
    d.2. Helmets, made of any material, equipped with communications 
hardware, optional sights, slewing devices or mechanisms to protect 
against thermal flash or lasers.

    Note: Helmets described in 0A018.d.1 are controlled by 0A988. 
Helmets described in 0A018.d.2 are controlled by the U.S. Department 
of State, Directorate of Defense Trade Controls (See 22 CFR part 
121, Category X).



0
5. In supplement No. 1 to part 774, Category 0, Nuclear Materials, 
Facilities, and Equipment (and Miscellaneous Items), a new export 
control classification number 0A918 is added immediately following ECCN 
0A018 and immediately preceding ECCN 0A978 to read as follows:

0A918 Miscellaneous Military Equipment Not on the Wassenaar Munitions 
List

License Requirements

    Reason for Control: RS, AT, UN.

------------------------------------------------------------------------
                 Controls                          Country chart
------------------------------------------------------------------------
RS applies to entire entry...............  RS Column 2.
AT applies to entire entry...............  At Column 1.
UN applies to entire entry...............  Rwanda.
------------------------------------------------------------------------

License Exceptions

LVS: $5000 for 0A918.a
    $1500 for 0A918.b
    $0 for Rwanda
GBS: N/A
CIV: N/A

List of Items Controlled

    Unit: 0A918.a in $ value; 0A918.b in number.
    Related Controls: N/A
    Related Definitions: N/A
    Items:
    a. Power controlled searchlights and control units therefor, 
designed for military use, and equipment mounting such units; and 
specially designed parts and accessories therefor;
    b. Bayonets.


0
6. In supplement No. 1 to Part 774, Category 0, Nuclear Materials, 
Facilities, and Equipment (and Miscellaneous Items), Export Control 
Classification Number 0A988, the Heading and the Reason for Control 
paragraph of the License Requirements section is revised to read as 
follows:

0A988 Conventional Military Steel Helmets as Described by 0A018.d.1; 
and Machetes

License Requirements

    Reason for Control: UN.
    Control(s):
    UN applies to entire entry. A license is required for 
conventional military steel helmets as described by 0A018.d.1 to 
Rwanda. A license is required for machetes to Rwanda. The Commerce 
Country Chart is not designed to determine licensing requirements 
for this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec.  746.7 of the EAR for additional information on 
this requirement.)

* * * * *

0
7. In supplement No. 1 to part 774, Category 0, Nuclear Materials, 
Facilities, and Equipment (and Miscellaneous Items), Export Control 
Classification Number 0E018, the heading is revised to read as follows:

0E018 ``Technology'' for the ``Development'', ``Production'', or 
``Use'' of Items Controlled by 0A018.a Through 0A018.c

* * * * *

0
8. In supplement No. 1 to part 774, Nuclear Materials, Facilities, and 
Equipment (and Miscellaneous Items), a new Export Control 
Classification Number 0E918 is added immediately following ECCN 0E018 
and immediately preceding ECCN 0E982 as follows:

0E918 ``Technology'' for the ``Development'', ``Production'', or 
``Use'' of Bayonets

License Requirements

    Reason for Control: RS, UN, AT.

------------------------------------------------------------------------
                Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to entire entry...............  RS Column 2.
UN applies to entire entry...............  Rwanda.
AT applies to entire entry...............  AT Column.
------------------------------------------------------------------------

License Exceptions

CIV: N/A
TSR: N/A

[[Page 16481]]

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.


0
9. In supplement 1 to part 774, Category 8, Marine, Export Control 
Classification Number 8A018, the Items paragraph in the List of Items 
Controlled section, is revised to read as follows:

8A018 Items on the International Munitions List

* * * * *

List of Items Controlled

    Unit: * * *
    Related Controls: * * *
    Related Definitions: * * *
    Items:
    a. Closed and semi-closed circuit (rebreathing) apparatus 
specially designed for military use, and specially designed 
components for use in the conversion of open-circuit apparatus to 
military use;
    b. Naval equipment, as follows:
    b.1. Diesel engines of 1,500 hp and over with rotary speed of 
700 rpm or over specially designed for submarines;
    b.2. Electric motors specially designed for submarines, i.e., 
over 1,000 hp, quick reversing type, liquid cooled, and totally 
enclosed;
    b.3. Nonmagnetic diesel engines, 50 hp and over, specially 
designed for military purposes. (An engine shall be presumed to be 
specially designed for military purposes if it has nonmagnetic parts 
other than crankcase, block, head, pistons, covers, end plates, 
valve facings, gaskets, and fuel, lubrication and other supply 
lines, or its nonmagnetic content exceeds 75 percent of total 
weight.);
    b.4. Submarine and torpedo nets; and
    b.5. Components, parts, accessories, and attachments for the 
above.


0
10. In supplement 1 to part 774, Category 8, Marine, a new Export 
Control Classification Number 8A918 is added immediately following ECCN 
8A018 and immediately preceding ECCN 8A992 as follows:

8A918 Marine Boilers.

    Reason for Control: RS, AT, UN.

------------------------------------------------------------------------
                 Controls                          Country chart
------------------------------------------------------------------------
RS applies to entire entry...............  RS Column 2.
AT applies to entire entry...............  AT Column 1.
UN applies to entire entry...............  Rwanda.
------------------------------------------------------------------------

License Exceptions

LVS: $5000, except N/A for Rwanda
GBS: N/A
CIV: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: N/A
    Related Definitions: N/A
    Items:
    a. Marine boilers designed to have any of the following 
characteristics:
    a.1. Heat release rate (at maximum rating) equal to or in excess 
of 190,000 BTU per hour per cubic foot of furnace volume; or
    a.2. Ratio of steam generated in pounds per hour (at maximum 
rating) to the dry weight of the boiler in pounds equal to or in 
excess of 0.83.
    b. Components, parts, accessories, and attachments for the 
above.

    Dated: March 23, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-7005 Filed 3-29-04; 8:45 am]
BILLING CODE 3510-33-P