[Federal Register Volume 75, Number 123 (Monday, June 28, 2010)]
[Rules and Regulations]
[Pages 36511-36516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15444]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 738, 740, 742, 772, and 774
[Docket No. 090126064-0122-01]
RIN 0694-AE56
Revisions to the Export Administration Regulations Based Upon a
Systematic Review of the Commerce Control List: Additional Changes
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: This rule amends the Export Administration Regulations (EAR)
to make revisions to the EAR as a result of a systematic review of the
Commerce Control List (CCL) that was conducted by the Bureau of
Industry and Security (BIS). This rule is the third phase of the
regulatory implementation of the results of a review of the CCL that
was conducted by BIS starting in 2007. The BIS CCL review benefited
from input received from BIS's Technical Advisory Committees (TACs) and
comments that were received from the interested public in response to
the publication of a BIS notice of inquiry on July 17, 2007.
The revisions in this rule include clarifications to existing
controls; eliminating redundant or outdated controls; and establishing
more focused and rationalized controls. This rule also makes CCL
related changes to other parts of the EAR, including CCL related
definitions and license exceptions.
DATES: This rule is effective: June 28, 2010. Although there is no
formal comment period, public comments on this regulation are welcome
on a continuing basis.
ADDRESSES: You may submit comments, identified by RIN 0694-AE56, by any
of the following methods:
E-mail: [email protected]. Include ``RIN 0694-AE56'' in
the subject line of the message.
Fax: (202) 482-3355. Please alert the Regulatory Policy Division,
by calling (202) 482-2440, if you are faxing comments.
Mail or Hand Delivery/Courier: Timothy Mooney, U.S. Department of
Commerce, Bureau of Industry and Security, Regulatory Policy Division,
14th St. & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230,
Attn: RIN 0694-AE56.
Send comments regarding the collection of information associated
with this rule, including suggestions for reducing the burden, to
Jasmeet K. Seehra, Office of Management and Budget (OMB), by e-mail to
[email protected], or by fax to (202) 395-7285; and to
the Regulatory Policy Division, Bureau of Industry and Security,
Department of Commerce, 14th St. & Pennsylvania Avenue, NW., Room 2705,
Washington, DC 20230. Comments on this collection of information should
be submitted separately from comments on the final rule (i.e., RIN
0694-AE56)--all comments on the latter should be submitted by one of
the three methods outlined above.
FOR FURTHER INFORMATION CONTACT: Timothy Mooney, Office of Exporter
Services, Bureau of Industry and Security, U.S. Department of Commerce;
by telephone: (202) 482-2440; or by fax: (202) 482-3355.
SUPPLEMENTARY INFORMATION:
Background
This rule amends the EAR to make various revisions as a result of a
systematic review of the Commerce Control List (CCL) that was conducted
by BIS. This rule is the third phase of the regulatory implementation
of the results of that systematic review of the CCL that was conducted
by BIS beginning in 2007. The CCL review benefited from input received
from BIS's Technical Advisory Committees (TACs) and public comments
received in response to a notice of inquiry (July 17, 2007, 72 FR
39052).
On April 18, 2008, BIS published the first phase of the regulatory
implementation of the CCL review in a rule titled, ``Technical
Corrections to the Export Administration Regulations based upon a
Systematic Review of the CCL'' (73 FR 21035). The first CCL review rule
made needed technical corrections and clarifications to the CCL. The
second CCL review rule made substantive revisions to the EAR, including
the CCL (October 6, 2008, 73 FR 58033).
The revisions to the CCL in this third CCL review rule are divided
into three types of revisions: (I) Clarifications to Existing Controls;
(II) Eliminating Redundant or Outdated Controls; and (III) Establishing
More Focused and Rationalized Controls. The changes in this third CCL
review rule are typically additional changes from the 2007 review that
required further U.S. Government review and/or interagency discussions
before they could be implemented. This rule also makes certain
revisions to other parts of the EAR related to the CCL that were
recommended during the 2007 CCL review.
As a part of the implementation phase of the CCL review, BIS has
also taken other non-regulatory actions to improve the public's
understanding of the CCL. These actions have involved publishing
certain advisory opinions and creating new web guidance to provide
greater clarity to exporters and reexporters regarding existing
provisions of the CCL. BIS has also created a new process whereby it
has stated its intention to conduct similar types of systematic reviews
of the CCL in the future in order to continuously improve the CCL.
This rule makes the following revisions to the Export
Administration Regulations (EAR):
In Sec. 734.4(b)(1), this rule adds paragraph (a)(9) of ECCN 5A002
to the list of 5A002 classified commodities that are subject to the
special de minimis requirements for certain encryption items. ECCN
5A002.a.9 is controlled for Encryption Items (EI) reasons, so it should
be included in paragraph (b)(1) because that paragraph is intended to
include all of the ``items'' paragraphs of 5A002 that are controlled
for EI reasons.
In Sec. 734.4 (De minimis U.S. content) paragraph (a)(4) and Sec.
742.14 (Significant items: hot section technology for the development,
[[Page 36512]]
production or overhaul of commercial aircraft engines, components and
systems) paragraph (a), this rule updates the provisions in these two
sections that apply to ``items'' controlled for Significant Items (SI)
reasons in ECCN 9E003 to conform these two sections to the intended
paragraphs of ECCN 9E003 (i.e., 9E003.a.1 through a.10 and h). These
changes are needed because when 9E003 was revised the related
provisions in Sec. Sec. 734.4(a)(4) and 742.14(a) were not updated
(July 12, 2000, 65 FR 43130). This rule updates those provisions to
conform to the updates made to the items controlled under 9E003. This
rule also makes changes to the SI reason for control under 9E003 to
conform that reason for control to the SI items controlled under that
ECCN entry, as described below.
In Sec. 740.7 (Computers (APP)) under paragraph
(b)(2)(i)(Computers and software), this rule removes and reserves this
paragraph because the restrictions refer to a supplement of the EAR
that is currently reserved. Supplement No. 3 to part 742 was removed
and reserved in the EAR on April 24, 2006 (71 FR 20876). Paragraph
(b)(2)(i) is also reserved because restricting physical access to areas
housing the computer is no longer necessary in protecting U.S. export
control interests in a distributed computing environment.
Also in Sec. 740.7, this rule revises the Weighted TeraFLOPS (WT)
level in paragraphs (c)(3)(ii) from 0.1 WT to 0.5 WT. This change is
being made to address advances in technology levels that justify an
adjustment for what level of ``development'' and ``production''
technology and source code should be authorized under these provisions
of License Exception APP.
In Sec. 772.1 (Definitions of terms as used in the Export
Administration Regulations (EAR)), this rule revises the definition of
``reasons for control'' to conform that definition to the reasons for
control listed in Sec. 738.2(d)(2)(i)(A) of the EAR. Specifically,
this rule removes the control ``High Performance Computers (XP)''
because that control is no longer in the EAR, and adds five reasons for
control that were in the EAR but were not included in the ``reasons for
control'' definition prior to this rule being published. Specifically,
this rule adds ``Chemical Weapons Convention (CW)'', ``Encryption Items
(EI)'', ``Firearms Convention (FC)'', ``Significant Items (SI)'', and
``Surreptitious Listening (SL)'' to the ``reasons for control''
definition.
This rule makes various substantive revisions to the CCL, divided
below into three types of revisions: (I) Clarifications to Existing
Controls; (II) Eliminating Redundant or Outdated Controls; and (III)
Establishing More Focused and Rationalized Controls.
I. Clarifications to Existing Controls
1. Revisions to the ``headings'' of existing CCL entries.
This rule makes revisions to the headings of three (3) CCL entries:
0E018, 4E992 and 4E993 to clarify the items controlled under those CCL
entries.
ECCN 0E018 is amended by removing the phrase ``0A018.a through
0A018.c'' and replacing that with ``0A018'' for consistency with the
International Munitions List (IML) 22.
ECCNs 4E992 and 4E993 are amended by revising the headings to
conform to the removal of ECCNs 4B994 and 4C994 from the CCL. The
changes in the headings of ECCNs 4E992 and 4E993 remove references to
``technology'' applicable to the ECCNs 4B994 and 4C994 that are removed
from the CCL with this rule, as described in the next two paragraphs.
The removal of ECCNs 4B994 and 4C994 are described below under the
discussion on ``Eliminating Redundant or Outdated Controls.''
ECCN 4E992 is amended by revising the heading to remove the
reference to 4B994 and materials controlled by 4C994. The heading will
be revised to specify the technology controlled under this ECCN entry
is ``technology'' other than that controlled in 4E001 for the
``development,'' ``production,'' or ``use'' of equipment controlled by
4A994, or ``software'' controlled by 4D993 or 4D994.
ECCN 4E993 is amended by revising the heading to remove the
reference to technology required for the development or production of
graphic accelerators and magnetic disk drives. The heading is being
revised to specify the technology controlled under this ECCN entry is
``technology'' for the ``development'' or ``production'' of equipment
for ``multi-data stream processing.'' As described below, this rule
also revises the ``items'' paragraph in the List of Items of controlled
to conform to this change to the heading.
2. Revisions to ``Items'' paragraphs in CCL entries. This rule
makes revisions to the ``Items'' paragraphs under two (2) CCL entries,
4E993 and 9A991, to provide greater clarity regarding the items
controlled under those CCL entries. Specifically, these revisions
include the following:
ECCN 4E993 is amended by removing the ``items'' paragraph (a), (b)
and (c) and replacing it with a sentence stating, ``The list of items
controlled is contained in the ECCN heading.'' As described above, the
technology described in paragraphs (a) and (c) is being removed from
this entry, and the only items that this entry will now control are
listed in the entry's heading.
ECCN 9A991 is amended by making two clarifications. First, this
rule revises ``items'' paragraph (b) to remove the word ``and'' because
this word is not needed. Second, this rule amends the Note to paragraph
(c) of the ``items'' paragraph, to specify that for aero gas turbine
engines that are destined for use in civil ``aircraft'' and have been
in use in bona fide civil ``aircraft'' for more than eight years, such
engines are controlled under 9A991.d. This is not a change in the
control parameter, but rather a clarification regarding the original
intent of that Note to paragraph (c).
3. Clarifications to ``Items'' paragraphs to conform to
multilateral regimes. This action revises the ``items'' paragraphs in
two (2) CCL entries, 8A018 and 9A018, to clarify what items are
controlled under those entries and to better conform those entries to
the language used in multilateral control lists, such as the IML.
ECCN 8A018 is amended by revising paragraphs (b)(1), (b)(2),
(b)(3), (b)(4) and (b)(5) of the ``Items'' paragraph, to conform to IML
9.b.3, 9.d and b.1-4, respectively. Specifically, under paragraph
(b)(1), this rule adds the phrase ``and specially designed components
therefor'' to conform to IML 9.b.1. Under paragraph (b)(2), this rule
adds the phrase ``and specially designed components therefor'' to
conform to IML 9.b.2. Under paragraph (b)(3), this rule revises the
``items'' paragraph to specify that the commodities controlled under
this paragraph are ``nonmagnetic diesel engines, 50 hp and over,
specially designed for military purposes with nonmagnetic content in
excess of 75 percent of total mass and specially designed components
therefor.'' This change is being made to conform to IML 9.b.2.
Paragraph (b)(5) is removed from the CCL entry because the components,
parts, accessories, and attachments for the above are now controlled
under paragraphs (b)(1)-(b)(4) with the publication of this rule. This
change is being made to conform to the IML 9 portion that was moved to
(b)(1)-(b)(4) of the ``items'' paragraph of this CCL entry.
ECCN 9A018 is amended by revising paragraphs (c) and (d) of the
``items'' paragraphs to clarify the items controlled under this CCL
entry. Specifically, under paragraph (c) this rule adds quotes around
the term ``aircraft'' and removes the phrase ``and helicopters,'' to
conform to IML 10.f. Under paragraph (d), this rule adds quotes around
the term ``aircraft'' and
[[Page 36513]]
removes the term ``helicopter'' to conform to IML 10.f. This rule also
removes the reference to helicopters under paragraphs (c) and (d)
because the definition of ``aircraft'' includes helicopters, so
helicopters do not need to be specifically identified in the control
parameter. This rule also removes ``parts, attachments'' under
paragraph (f) to conform to IML 14.
4. Other assorted clarifications to existing controls.
ECCN 4A003 is amended by making a correction in the Anti-Terrorism
(AT) control in the License Requirements section of this ECCN. This
correction is made to conform to a change made on October 6, 2008 (73
FR 58040) in the Adjusted Peak Performance (APP) level in ECCN 4A994.
To conform to the October 2008 change, this rule updates the AT control
cross reference in the License Requirements section of ECCN 4A003 that
refers to the ``Adjusted Peak Performance'' level in 4A994.
Specifically, this rule corrects the AT control cross reference to
inform the public to ``refer to 4A994 for controls on `digital
computer' with an APP > 0.0128 but <= to 0.75 WT).''
This rule amends ECCN 4A994 by revising the Related Definitions
paragraph of the List of Items Controlled to read ``N/A'' because the
definition for ``two dimensional vector rate'' applied to items
controlled by ECCN 4A994.g, which was removed and reserved on October
6, 2008 (73 FR 58040).
ECCN 5A001 is amended to revise the Technical Note (2) to 5A001.b.6
to remove the redundant phrase, ``samples of human voice and then
convert these.'' This same phrase only needs to be stated once in this
technical note, so this rule is removing the redundant phrasing.
ECCN 7A008 is amended by revising the License Exceptions section by
removing ``TSR: N/A'' because this ECCN is not a technology or software
entry and adding License Exceptions ``GBS: N/A'' and ``LVS: N/A'' to
indicate these license exceptions are not eligible for this entry.
ECCN 9E003 is amended by revising the SI control under the
``License Requirements'' section to conform the SI reason for control
to the hot section technology for the development, production or
overhaul of commercial aircraft engines, components and systems that
are currently controlled in the ``items'' paragraphs of ECCN 9E003
(i.e., 9E003.a.1 through a.10 and h). These changes are needed because
when the ``items'' paragraph of ECCN 9E003 was amended on July 12, 2000
(65 FR 43130), the conforming change to the SI reason for control in
that same ECCN entry was not updated. This rule updates this ECCN's SI
license requirement to conform to the previous updates made to ECCN
9E003. This rule also makes conforming changes to Sec. Sec.
734.4(a)(4) and 742.14(a) to conform to these same changes in 9E003, as
described above.
II. Eliminating Redundant or Outdated Controls
ECCN 3A992 is amended by removing License Exception LVS eligibility
for Syria. Syria is not eligible to receive commodities authorized by
License Exception LVS under the EAR. This rule clarifies Syria's
ineligibility by revising the LVS paragraph in the License Exceptions
section of this ECCN to make it N/A.
ECCNs 4B994 and 4C994 are removed from the CCL because storage
equipment previously controlled under ECCN 4A994 was removed from
control on October 8, 2008 (73 FR 58033). Because the storage equipment
is no longer controlled under 4A994, equipment for the ``development''
and ``production'' of magnetic and optical storage equipment no longer
needs to be controlled under ECCN 4B994. In addition, for the same
reason, materials specially formulated and required for the fabrication
of head/disk assemblies for controlled magnetic and magneto-optical
hard disk drives no longer needs to be controlled under ECCN 4C994. To
conform to the removal of ECCNs 4B994 and 4C994, this rule also makes
revisions to ECCNs 4E992 and 4E993 to remove references to
``technology'' applicable to these ECCNs 4B994 and 4C994 that are
removed from the CCL with this rule. The changes to ECCNs 4E992 and
4E993 are described above under the discussion on ``Revisions to the
`headings' of existing CCL entries.''
ECCN 8A018 is amended by removing ``items'' paragraph (b)(5) to
conform to a change to the IML. The IML 9 control that was under
8A018.b.5, prior to the publication of this rule, has been moved to
paragraphs 8A018.b.1 through 8A018.b.4.
III. Establishing More Focused and Rationalized Controls
Changes for Greater Consistency in National Security, Regional
Stability and Encryption Licensing
In Supplement No. 1 to part 738 (Commerce Country Chart), this rule
removes the license requirement for Regional Stability (RS 2) from
Austria, Finland, Ireland, Sweden and Switzerland (i.e., this rule
removes the ``X'' in the box in the RS 2 column for these five
destinations). This change is made to create more consistency in what
destinations require a license for RS column 2, NS column 2, and
countries listed in Supplement No. 3 to part 740 (License Exception ENC
Favorable Treatment Countries). Thirty-seven countries are in one of
these three groupings. Twenty-four of the thirty-seven are in all three
groupings (i.e., these destinations do not require a license for RS
column 2, NS column 2 and are listed in Supplement No. 3 to part 740).
Nine of these thirty-seven countries require a license for RS column 2.
Austria, Finland, Ireland, Sweden, and Switzerland all require a
license for RS column 2 even though these countries are in Supplement
No. 3 to Part 740 and do not require a license for NS column 2 reasons.
Because these five countries are the only five countries that are
listed in Supplement No. 3 to Part 740 and also do not require a
license for NS column 2 reasons, these countries were the most
appropriate destinations to remove the RS 2 license requirement from in
order to create greater uniformity in these license requirements. This
change is also made because Austria, Finland, Ireland, Sweden and
Switzerland are not countries that contribute to regional instability
that would be contrary to the foreign policy interests of the United
States.
Removing the RS column 2 license requirement that applied to these
countries is consistent with the stated purpose of regional stability
controls in Sec. 742.6(b), which is to prevent ``export[s] or
reexport[s] that could contribute directly or indirectly to any
country's military capability in a manner that would alter or
destabilize a region's military balance contrary to the foreign policy
interests of the United States.'' This removal raises the number of
countries that are in all three groups from 24 to 29 and creates more
consistency in these EAR license requirements.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were on dock for loading, on lighter, laden
aboard an exporting or reexporting carrier, or en route aboard a
carrier to a port of export or reexport, on June 28, 2010, pursuant to
actual orders for export or reexport to a foreign destination, may
proceed to that destination under the previous eligibility for a
License Exception or export or reexport NLR so long as they are
exported or reexported July 28, 2010. Any such items not actually
[[Page 36514]]
exported or reexported before midnight, on July 28, 2010, require a
license in accordance with this rule.
Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as extended by the Notice of August 13,
2009, 74 FR 41325 (August 14, 2009), has continued the EAR in effect
under the International Emergency Economic Powers Act.
Rulemaking Requirements
1. This final rule has been determined to be 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, unless that collection of
information displays a currently valid Office of Management and Budget
Control Number. This rule contains a collection of information subject
to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This
collection has been approved by the Office of Management and Budget
under control number 0694-0088, ``Multi-Purpose Application,'' which
carries a burden hour estimate of 58 minutes for a manual or electronic
submission.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 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 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. Therefore,
this regulation is issued in final form.
5. The other changes made under this rule are nonsubstantive
changes that would not meet the criteria noted in the preceding
paragraph. For these nonsubstantive changes described in this
paragraph, the Department of Commerce finds that there is good cause
under 5 U.S.C. 553(b)(B) to waive the provisions of the Administrative
Procedure Act requiring prior notice and the opportunity for public
comment because they are unnecessary and contrary to the public
interest. The changes made by this rule described under this paragraph
are not substantive changes, but rather are clarifications to existing
controls. These nonsubstantive changes are described under Part I:
Clarifications to Existing Controls in the Background section of this
rule. These nonsubstantive changes include: revisions to the headings
of existing CCL entries; and removal of an outdated ``Related
Controls'' reference in one CCL entry. This rule does not alter any
right, obligation or prohibition that applies to any person under the
Export Administration Regulations (EAR). Additionally, if the previous
rules were left in place, public confusion may result because the rules
would refer to outdated references and headings. Because these
revisions are not substantive changes, it is unnecessary to provide
notice and opportunity for public comment. In addition, the 30-day
delay in effectiveness required by 5 U.S.C. 553(d) is not applicable
because this rule is not a substantive rule.
List of Subjects
15 CFR Part 734
Administrative practice and procedure, Exports, Inventions and
patents, Research Science and technology.
15 CFR Part 738 and 772
Exports.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 774
Exports, Reporting and recordkeeping requirements.
0
Accordingly, parts 734, 738, 740, 742, 772 and 774 of the Export
Administration Regulations (15 CFR parts 730-774) are amended as
follows:
PART 734--[AMENDED]
0
1. The authority citation for 15 CFR part 734 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; 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 13, 2009, 74 FR 41325 (August 14, 2009);
Notice of November 6, 2009, 74 FR 58187 (November 10, 2009).
0
2. Section 734.4 is amended by revising paragraphs (a)(4) and the
introductory text of paragraph (b)(1), to read as follows:
Sec. 734.4 De minimis U.S. content.
(a) * * *
(4) There is no de minimis level for U.S.-origin technology
controlled by ECCN 9E003a.1 through a.10, and .h, when redrawn, used,
consulted, or otherwise commingled abroad.
* * * * *
(b) * * *
(1) The U.S. origin commodities or software, if controlled under
ECCNs 5A002.a.1, .a.2, .a.5, or .a.6, .a.9, or 5D002, must have been:
* * * * *
PART 738--[AMENDED]
0
3. The authority citation for 15 CFR part 738 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); 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; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 13, 2009, 74 FR 41325 (August 14, 2009).
0
4. Supplement No. 1 to part 738 (Commerce Country Chart), is amended by
removing the ``X'' in the RS 2 column under the Regional Stability
column for the countries of ``Austria'', ``Finland'', ``Ireland'',
``Sweden'', and ``Switzerland''.
PART 740--[AMENDED]
0
5. The authority citation for 15 CFR part 740 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 7201 et seq.; 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 13, 2009, 74 FR 41325 (August 14, 2009).
0
6. Section 740.7 is amended:
0
a. By removing and reserving paragraph (b)(2)(i); and
0
b. By revising paragraphs (c)(3)(ii) and (c)(3)(iii), to read as
follows:
Sec. 740.7 Computers (APP).
* * * * *
(b) * * *
(2) * * *
(i) [RESERVED]
* * * * *
(c) * * *
(3) * * *
[[Page 36515]]
(ii) ``Development'' and ``production'' technology and source code
described in paragraph (a)(2) of this section for computers with an APP
less than or equal to 0.5 Weighted TeraFLOPS (WT) are eligible for
deemed exports under License Exception APP to foreign nationals of 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.
(iii) ``Use'' technology and source code described in paragraph
(a)(2) of this section for computers with an APP less than or equal to
3 WT are eligible for deemed exports under License Exception APP to
foreign nationals of 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.
* * * * *
PART 742--[AMENDED]
0
7. The authority citation for 15 CFR part 742 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; 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; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Notice of August 13, 2009, 74 FR 41325 (August 14, 2009); Notice of
November 6, 2009, 74 FR 58187 (November 10, 2009).
0
8. Section 742.14 is amended by revising the last sentence of paragraph
(a), to read as follows:
Sec. 742.14 Significant Items: hot section technology for the
development, production or overhaul of commercial aircraft engines,
components, and systems.
(a) * * * These items include hot section technology for the
development, production or overhaul of commercial aircraft engines
controlled under ECCN 9E003.a.1 through a.10, and .h, and related
controls.
* * * * *
PART 772--[AMENDED]
0
9. The authority citation for 15 CFR part 772 continues 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
13, 2009, 74 FR 41325 (August 14, 2009).
0
10. Section 772.1 is amended by revising the definition of ``reasons
for control'', as set forth below:
Sec. 772.1 Definitions of terms as used in the Export Administration
Regulations (EAR).
* * * * *
Reasons for Control. Reasons for Control are: Anti-Terrorism (AT),
Chemical & Biological Weapons (CB), Chemical Weapons Convention (CW),
Crime Control (CC), Encryption Items (EI), Firearms Convention (FC),
Missile Technology (MT), National Security (NS), Nuclear
Nonproliferation (NP), Regional Stability (RS), Short Supply (SS),
Significant Items (SI), Surreptitious Listening (SL) and United Nations
sanctions (UN). Items controlled within a particular ECCN may be
controlled for more than one reason.
* * * * *
PART 774--[AMENDED]
0
11. The authority citation for 15 CFR 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); 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; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 13, 2009, 74 FR 41325 (August 14, 2009).
0
12. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities, and Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0E018
is amended by revising the heading, to read as follows:
Supplement No. 1 to Part 774--The Commerce Control List
* * * * *
0E018 ``Technology'' for the ``development'', ``production'', or
``use'' of items controlled by 0A018:
* * * * *
0
13. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3--Electronics, Export Control Classification Number (ECCN)
3A992 is amended by revising the LVS paragraph in the License
Exceptions section, to read as follows:
3A992 General purpose electronic equipment not controlled by 3A002.
* * * * *
License Exceptions
LVS: N/A
GBS: * * *
CIV: * * *
* * * * *
0
14. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4--Computers, Export Control Classification Number (ECCN)
4A003 is amended by revising the AT control(s) paragraph in the License
Requirements section, to read as follows:
4A003 ``Digital computers,'' ``electronic assemblies,'' and related
equipment therefor, as follows, and specially designed components
therefor.
License Requirements
Reason for Control: * * *
Control(s) Country chart
* * * * *
AT applies to entire entry (refer to 4A994 AT Column 1
for controls on ``digital computers''
with a APP >0.0128 but <= to 0.75 WT).
* * * * *
0
15. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4--Computers, Export Control Classification Number (ECCN)
4A994 is amended by removing the definition in the Related Definitions
paragraph in the List of Items Controlled section and adding ``N/A'' in
its place.
0
16. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4--Computers, is amended by removing Export Control
Classification Numbers (ECCN) 4B994 and 4C994 and reserving ``B. Test
Inspection and Production Equipment'' and ``C. Materials''.
0
17. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4--Computers, Export Control Classification Number (ECCN)
4E992 is amended by revising the heading to read as follows:
4E992 ``Technology'' other than that controlled in 4E001 for the
``development,'' ``production,'' or ``use'' of equipment controlled
by 4A994, or ``software'' controlled by 4D993 or 4D994.
* * * * *
0
18. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4--Computers, Export Control Classification Number (ECCN)
4E993 is amended:
0
a. By revising the heading; and
0
b. By revising the ``items'' paragraph in the List of Items Controlled
section, to read as follows:
4E993 ``Technology'' for the ``development'' or ``production'' of
equipment designed for ``multi-data-stream processing.''
* * * * *
[[Page 36516]]
List of Items Controlled
Unit: * * *
Related Controls: * * *
Related Definitions: * * *
Items:
The list of items controlled is contained in the ECCN heading.
0
19. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Telecommunications and ``Information Security,'' Part 1
Telecommunications, Export Control Classification Number (ECCN) 5A001
is amended by revising the Technical Notes (2) to paragraph (b)(6) of
the ``items'' paragraph in List of Items Controlled section, to read as
follows:
5A001 Telecommunications systems, equipment, components and
accessories, as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
Unit: * * *
Related Controls: * * *
Related Definitions: * * *
Items:
* * * * *
b.6. * * *
Technical Notes:
1. * * *
2. For the purpose of 5A001.b.6, `voice coding' is defined as
the technique to take samples of human voice and then convert these
samples of human voice into a digital signal taking into account
specific characteristics of human speech.
* * * * *
0
20. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7--Navigation and Avionics, Export Control Classification
Number (ECCN) 7A008 is amended by revising the License Exceptions
section, to read as follows:
7A008 Underwater sonar navigation systems, using Doppler velocity or
correlation velocity logs integrated with a heading source and
having a positioning accuracy of equal to or less (better) than 3%
of distance traveled ``Circular Error Probable'' (``CEP''), and
specially designed components therefor.
* * * * *
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
* * * * *
0
21. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 8--Marine, Export Control Classification Number (ECCN) 8A018
is amended by revising paragraph (b) of the ``items'' paragraph in the
List of Items Controlled section, to read as follows:
8A018 Items on the Wassenaar Arrangement Munitions List.
* * * * *
List of Items Controlled
Unit: * * *
Related Controls: * * *
Related Definitions: * * *
Items:
a. * * *
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, and specially
designed components therefor;
b.2. Electric motors specially designed for submarines, i.e.,
over 1,000 hp, quick reversing type, liquid cooled, and totally
enclosed, and specially designed components therefor;
b.3. Nonmagnetic diesel engines, 50 hp and over, specially
designed for military purposes with nonmagnetic content in excess of
75 percent of total mass and specially designed components therefor;
b.4. Submarine and torpedo nets and specially designed
components therefor.
0
22. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Propulsion Systems, Space Vehicles and Related Equipment,
Export Control Classification Number (ECCN) 9A018 is amended by
revising paragraphs (c),(d) and (f) of the ``items'' paragraph in the
List of Items Controlled section, to read as follows:
9A018 Equipment on the Wassenaar Arrangement Munitions List.
* * * * *
List of Items Controlled
Unit: * * *
Related Controls: * * *
Related Definition: * * *
Items:
* * * * *
c. Pressure refuelers, pressure refueling equipment, equipment
specially designed to facilitate operations in confined areas; and
ground equipment, developed specially for military ``aircraft'', and
specially designed parts and accessories, n.e.s.;
d. Pressurized breathing equipment specially designed for use in
military ``aircraft'';
e. * * *
f. Military instrument flight trainers, except for combat
simulation; and components and accessories specially designed for
such equipment.
0
23. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9A991 is amended:
0
a. By revising ``items'' paragraph (b) in the List of Items Controlled
section; and
0
b. By revising ``items'' paragraph (c) in the List of Items Controlled
section and the note to paragraph (c), to read as follows:
9A991 ``Aircraft'', n.e.s., and gas turbine engines not controlled
by 9A001 or 9A101 and parts and components, n.e.s.
* * * * *
List of Items Controlled
Unit: * * *
Related Controls: * * *
Related Definitions: * * *
Items:
* * * * *
b. Civil aircraft;
Note: * * *
c. Aero gas turbine engines, and specially designed parts
therefor.
Note: 9A991.c does not control aero gas turbine engines that
are destined for use in civil ``aircraft'' and that have been in use
in bona fide civil ``aircraft'' for more than eight years. If they
have been in use in bona fide civil ``aircraft'' for more than eight
years, such engines are controlled under 9A991.d.
* * * * *
0
24. In Supplement No. 1 to part 774 (The Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9E003 is amended by revising the ``Control(s)'' paragraph
in the License Requirements section, to read as follows:
9E003 Other ``technology'' as follows (see List of Items
Controlled).
License Requirements
Reason for Control: NS, SI, AT
Control(s) Country Chart
NS applies to entire entry................ NS Column 1
SI applies to 9E003.a.1 through a.10, and ............................
h. See Sec. 742.14 of the EAR for
additional information.
AT applies to entire entry................ AT Column 1
* * * * *
Dated: June 21, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-15444 Filed 6-25-10; 8:45 am]
BILLING CODE 3510-33-P