[Federal Register Volume 71, Number 99 (Tuesday, May 23, 2006)]
[Notices]
[Pages 29703-29705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7850]


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DEPARTMENT OF STATE

[Public Notice 5417]


Bureau of Political-Military Affairs, Part 121--United States 
Munitions List, Category VIII

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: The Department of State is clarifying the coverage in the U.S. 
Munitions List (USML), Category VIII--

[[Page 29704]]

Aircraft and Associated Equipment to reflect decisions arising from a 
commodity jurisdiction conducted under section 120.4 of 22 CFR part 
120. The result of the commodity jurisdiction is provided to ensure 
that all U.S. exporters are advised that any airframe parts and 
components common to the C-130 (Models A through H) and L-100 aircraft 
that have no current use on any other commercial aircraft are subject 
to the jurisdiction of the Department of State, Directorate of Defense 
Trade Controls (DDTC), effective 90 days from the date of publication 
of this notice. This 90 day period provides U.S. exporters the 
opportunity to complete existing transactions and to apply to DDTC for 
the proper export approval for new or subsequent shipments. Exporters 
should note that this notice addresses only airframe parts and 
components common to the C130 and L-100 aircraft; the Department of 
State is not asserting jurisdiction over the L-100 aircraft at this 
time. Any systems employed on the L-100 that also are employed on any 
other commercial aircraft will remain subject to the jurisdiction of 
the Department of Commerce. This is subject, however, to the 
requirement that any systems employed on the L-100 that are 
specifically designed, modified, configured, or adapted for a military 
application will remain subject to the jurisdiction of the Department 
of State. Questions concerning the appropriate jurisdiction of specific 
systems or subsystems should be directed to DDTC. Finally, this 
determination does not apply to the parts and components for the C-130J 
model as this aircraft differs from preceding models of the C-130 so as 
to be considered a separate military aircraft. All C-130J parts and 
components are USML-controlled.

DATES: Effective Date: May 23, 2006.

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

SUPPLEMENTARY INFORMATION: The specific purpose of this notice is to 
advise the exporting community of the result of a commodity 
jurisdiction conducted pursuant to Section 120.4 of the ITAR regarding 
airframe parts and components for the L-100 aircraft that are identical 
to the airframe parts and components for the C-130 (Models A through H) 
aircraft, and that are not currently employed on other commercial 
aircraft.
    Following receipt of a commodity jurisdiction request from a U.S. 
exporter regarding airframe parts and components for the C-130 and L-
100 aircraft, the Department conducted an intensive analysis of the 
production history and applications of the C-130 and L-100 aircraft, 
assessed the evolving ratio of one type of aircraft to the other, 
reviewed the licensing and commodity jurisdiction history applicable to 
these aircraft and their airframe parts and components, examined the 
applicability of the airframe parts common to the two aircraft, and 
applied the standards for designating and determining defense articles 
as set forth in Section 120.3 of the ITAR.
    The Department has determined that the production and application 
histories of the two aircraft demonstrate a predominant military 
commonality. The C-130 was developed in response to a U.S. Air Force 
requirement and first became operational in 1956. The last production 
model (in the ``H'' variant) was delivered in 1998. A total of 2,164 C-
130 aircraft were produced, 619 of which remain active in the air 
forces of 58 foreign countries. The L-100 was first certified in 1965 
and the last production model was delivered in 1992. A total of 118 L-
100's were produced, of which 59 remain in foreign inventories. Based 
on the application of all aircraft (C-130 models A through H and L-100) 
carrying common airframe parts and components, the Department has 
determined that there is no predominant commercial use or application 
for the airframe parts and components that are common to both aircraft.
    The Department also examined the historical record regarding 
decisions taken with regard to the export of the L-100, the C-130, and 
the airframe parts and components common to both, and concludes that a 
definitive analysis of the issue was not performed until the commodity 
jurisdiction forming the basis of this notice. That commodity 
jurisdiction and this notice rectify an outstanding question by 
determining that airframe parts and components common to the two 
aircraft, and not currently used on other U.S. commercial aircraft, 
always have had a predominant military application.
    An examination of all relevant information establishes that 
airframe parts and components common to the C-130 (Models A through H) 
and L-100 aircraft meet the definition of a defense article as set 
forth in Section 120.6 and is consistent with the policy on designating 
and determining a defense article as provided in Section 120.3. The 
manufacturer of both aircraft confirms that approximately 95% of the 
aircraft parts and components used in the C-130 are used in the L-100. 
Such parts were specifically designed or developed for a military 
application as the C-130 was developed in response to an U.S. Air Force 
requirement. Further, such airframe parts do not have a predominant 
civil application; the number of military C-130 aircraft always has 
exceeded and will continue to exceed the number of L-100 aircraft. 
Additionally, the airframe parts and components common to these two 
aircraft do not have a performance equivalent (defined by form, fit, 
and function) to those parts used for other civil applications. Indeed, 
the Department could not identify other aircraft in which these common 
airframe parts and components would serve. Finally, the intended use of 
such defense article, i.e., parts common to the C-130 and the L-100, is 
not relevant in determining the proper licensing jurisdiction.
    The commodity jurisdiction determination affirms that such common 
airframe parts and components are covered by paragraph (h) of Category 
VIII of the U.S. Munitions List as set forth in 22 CFR part 121. The 
possibility that shipments will be detained at U.S. ports of export 
will be minimized by providing notice that exports of such items must 
be properly licensed.
    Exporters must be prepared to identify and document airframe parts 
and components common to the C-130 and the L-100 currently used on 
other U.S.-origin commercial aircraft. If doubt exists, a commodity 
jurisdiction request may be made to the Directorate of Defense Trade 
Controls (DDTC). For instructions, exporters should consult the DDTC 
Web site http://www.pmdtc.org.
    It is recognized that there may have been some ambiguity regarding 
airframe parts and components common to the C-130 and L-100 aircraft 
flowing from prior analysis. Accordingly, it is anticipated that 
quantities of such common parts and components were previously exported 
for the direct support of C-130 aircraft in accordance with the export 
regulations of the Department of Commerce. The Department recognizes 
that exporters utilized Department of Commerce procedures prior to the 
date of this notice for exports of airframe parts and components common 
to the C-130 and L-100 aircraft. The Department also recognizes that 
exporters are likely required to put in place new processes and 
procedures to change the export approval process from Commerce to 
State. Therefore, any exports or re-exports of the airframe parts and

[[Page 29705]]

components that are the subject of this notice that occur 90 days after 
the date of this notice must take place in accordance with the ITAR.
    In addition, for purposes of analysis, the Department requires 
information from exporters who previously used the Department of 
Commerce procedures to export airframe parts and components common to 
the C-130 and L-100 aircraft. Exporters must provide a report to DDTC 
within 90 days of the effective date of this notice (see above section 
entitled FOR FURTHER INFORMATION CONTACT for contact information). 
Reports should be based on available records for the past five years 
and should specify the following: (1) The type of aircraft supported; 
(2) the estimated value of the parts exported; and (3) the end user 
countries to which the parts were exported. In addition, exporters have 
an affirmative duty to notify foreign parties in receipt of such 
airframe parts and components that any retransfer of these parts that 
occur 90 days from the date of this notice will require the 
authorization of the Directorate of Defense Trade Controls (DDTC) in 
accord with current regulation and practice.
    As regards L-100 aircraft that were exported prior to the effective 
date of this notice under the terms of a Department of Commerce 
authorization, such exports will continue to be governed by the terms 
of such authorization so long as: (1) The aircraft continues to operate 
in the manner and for the purpose for which the Department of Commerce 
authorization was granted, (2) the aircraft is not modified, 
configured, or adapted for a military application, and (3) ownership of 
the aircraft is not transferred to a party in or from a third country. 
L-100 aircraft that do not meet these criteria are subject to the 
controls of the ITAR. In addition, exporters of L-100 aircraft must 
advise end users that, effective 90 days from the date of this notice, 
L-100 aircraft in their possession may not travel to or transit 
countries identified in Section 126.1 of the ITAR without the express 
approval of the Directorate of Defense Trade Controls (DDTC). Further, 
consistent with current practice, U.S. exporters seeking to export L-
100 aircraft should consult with both the Departments of Commerce and 
State regarding jurisdictional licensing requirements.
    This notice 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 within the Department of State 
to ensure consistency with the purposes thereof. This rule does not 
require analysis under the Regulatory Flexibility Act or the Unfunded 
Mandates Reform Act. It has been found not be a major rule within the 
meaning of the Small Business Regulatory Enforcement Act of 1966. It 
will not have substantial direct effects on the States, the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, in accordance with section 6 of Executive Order 
13132, it is determined that this rule does not have sufficient 
federalism implications to warrant application of Executive Orders Nos. 
12372 and 13123. However, affected U.S. persons are invited to submit 
written comments to the Department of State, Office of Defense Trade 
Controls, ATTN: Stephen Tomchik, Regulatory Change, USML Category VIII, 
12th Floor, SA-1, Washington, DC 20522.

Gregory M. Suchan,
Acting Assistant Secretary, Bureau of Political-Military Affairs, 
Department of State.
 [FR Doc. E6-7850 Filed 5-22-06; 8:45 am]
BILLING CODE 4710-25-P