[Federal Register Volume 79, Number 197 (Friday, October 10, 2014)]
[Rules and Regulations]
[Pages 61226-61236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23792]


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DEPARTMENT OF STATE

22 CFR Parts 120, 121, 123, 126, and 130

[Public Notice 8898]
RIN 1400-AD64


Amendment to the International Traffic in Arms Regulations: 
Corrections, Clarifications, and Movement of Definitions

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: In an effort to streamline, simplify and clarify the recent 
revisions to the International Traffic in Arms Regulations (ITAR) made 
pursuant to the President's Export Control Reform (ECR) initiative, the 
Department of State is amending the ITAR as part of the Department of 
State's retrospective plan under Executive Order 13563 completed on 
August 17, 2011.

DATES: This rule is effective October 10, 2014.

FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2792; email [email protected]. ATTN: Regulatory 
Change, Omnibus Clarifications. The Department of State's full 
retrospective plan can be accessed at http://www.state.gov/documents/organization/181028.pdf.

SUPPLEMENTARY INFORMATION:

Changes in this Rule

    The following changes are made to the ITAR with this final rule: 
(1) Definitions previously provided in Sec. Sec.  121.3, 121.4, 121.14, 
and 121.15 are removed from these sections and incorporated into U.S. 
Munitions List Categories VIII, VII, XX, and VI, respectively; (2) USML 
Category II is amended to clarify that grenade launchers are controlled 
in paragraph (a) as a result of the revisions previously made to USML 
Category IV pursuant to Export Control Reform; (3) USML Category IX is 
amended to enumerate military training not directly related to a 
defense article, which is a controlled activity pursuant to ITAR Sec.  
120.9(a)(3). This change is required in order to provide exporters a 
USML category to cite for military training when not related to a 
defense article; (4) The note to paragraph (b) in the specially 
designed definition is revised to clarify that catch-all controls are 
only those that generically control parts, components, accessories, and 
attachments for a specified article and do not identify a specific 
specially designed part, component, accessory, or attachment. This 
revision is intended to help ensure that exporters properly apply ITAR 
Sec.  120.41 when classifying their article and clarify that when a 
specific article is described on the USML, it is enumerated and is not 
part of a catch-all; (5) The definitions previously provided in ITAR 
Sec.  121.8 are removed to new ITAR Sec.  120.45; (6) The policy with 
regard to when forgings, castings, and machined bodies are controlled 
as defense articles is removed from ITAR Sec.  121.10 and placed in 
ITAR Sec.  120.6; (7) The threshold for lithium-ion batteries 
controlled in Category VIII(h)(13) is increased from greater than 28 
volts of direct current (VDC) nominal to greater than 38 VDC nominal, 
so as not to control on the USML such batteries in normal commercial 
aviation use; (8) A control for specially designed parts, components, 
accessories, and attachments is added to the helmets controlled in 
Category VIII(h)(15); (9) The phrase ``electric-generating'' is added 
to the control describing fuel cells in Category VIII(h)(23) to clarify 
that fuel bladders and fuel tanks are not within this control; (10) The 
word ``enumerated'' is replaced with the word ``described'' in the 
paragraphs of the USML for technical data and defense services directly 
related to the defense articles in that Category to clarify that the 
controls on technical data and defense services apply even if the 
defense article is described in a catch-all; (11) Conforming changes 
are made to citations throughout these sections; and (12) Minor 
reference corrections are made to Supplement No. 1 to Part 126, 
including moving the footnote to the entire Supplement from the end to 
the opening to better clarify if an item is excluded from eligibility 
in any row, it is excluded from that exemption, even if also described 
in another row that contains a description that may also include that 
item.

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State is of the opinion that controlling the 
import and export of defense articles and services is a foreign affairs 
function of the United States Government and that rules implementing 
this function are exempt from 5 U.S.C. 553 and 554.

Regulatory Flexibility Act

    Since the Department is of the opinion that this rule is exempt 
from the provisions of 5 U.S.C. 553, there is no requirement for an 
analysis under the Regulatory Flexibility Act.

[[Page 61227]]

Unfunded Mandates Reform Act of 1995

    This rulemaking does not involve a mandate that will result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any year and it 
will not significantly or uniquely affect small governments. Therefore, 
no actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    For purposes of the Small Business Regulatory Enforcement Fairness 
Act of 1996, a ``major'' rule is a rule that the Administrator of the 
OMB Office of Information and Regulatory Affairs finds has resulted or 
is likely to result in (1) an annual effect on the economy of 
$100,000,000 or more; (2) a major increase in costs or prices for 
consumers, individual industries, federal, state, or local government 
agencies, or geographic regions; or (3) significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based enterprises to compete with foreign-
based enterprises in domestic and foreign markets.
    The Department does not believe this rulemaking will have an annual 
effect on the economy of $100,000,000 or more. Articles that are being 
removed from coverage in the U.S. Munitions List categories contained 
in this rule will still require licensing for export, but from the 
Department of Commerce. While the licensing regime of the Department of 
Commerce is more flexible than that of the Department of State, it is 
not expected that the change in jurisdiction of these articles will 
result in an export difference of $100,000,000 or more.
    The Department also does not believe that this rulemaking will 
result in a major increase in costs or prices for consumers, individual 
industries, federal, state, or local government agencies, or geographic 
regions, or have significant adverse effects on competition, 
employment, investment, productivity, innovation, or on the ability of 
United States-based enterprises to compete with foreign-based 
enterprises in domestic and foreign markets.

Executive Orders 12372 and 13132

    This rulemaking will not have substantial direct effects on the 
States, on 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 Executive 
Order 13132, it is determined that this rulemaking does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this rulemaking.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess costs 
and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributed impacts, and equity). These executive orders 
stress the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This rulemaking has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, this rule has been reviewed by the 
Office of Management and Budget (OMB).

Executive Order 12988

    The Department of State has reviewed this rulemaking in light of 
sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, the requirements of Executive Order 13175 do 
not apply to this rulemaking.

Paperwork Reduction Act

    This rule does not impose or revise any reporting or recordkeeping 
requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 
35.

List of Subjects

22 CFR Parts 120 and 121

    Arms and munitions, Classified information, Exports.

22 CFR Part 123

    Arms and munitions, Exports, Reporting and recordkeeping 
requirements.

22 CFR Part 126

    Arms and munitions, Exports.

22 CFR Part 130

    Arms and munitions, Campaign funds, Confidential business 
information, Exports, Reporting and recordkeeping requirements.

    Accordingly, the Department of State amends 22 CFR chapter I as 
follows:

PART 120--PURPOSE AND DEFINITIONS

0
1. The authority citation for part 120 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); 22 U.S.C. 2794; 22 U.S.C. 2651a; Pub. 
L. 105-261, 112 Stat. 1920; Pub. L. 111-266; Section 1261, Pub. L. 
112-239; E.O. 13637, 78 FR 16129.


0
2. Section 120.6 is revised to read as follows:


Sec.  120.6  Defense article.

    Defense article means any item or technical data designated in 
Sec.  121.1 of this subchapter. The policy described in Sec.  120.3 is 
applicable to designations of additional items. This term includes 
technical data recorded or stored in any physical form, models, mockups 
or other items that reveal technical data directly relating to items 
designated in Sec.  121.1 of this subchapter. It also includes 
forgings, castings, and other unfinished products, such as extrusions 
and machined bodies, that have reached a stage in manufacturing where 
they are clearly identifiable by mechanical properties, material 
composition, geometry, or function as defense articles. It does not 
include basic marketing information on function or purpose or general 
system descriptions.

0
3. Section 120.10 is amended by revising paragraph (a)(4) to read as 
follows:


Sec.  120.10  Technical data.

    (a) * * *
    (4) Software (see Sec.  120.45(f)) directly related to defense 
articles.
* * * * *

0
4. Section 120.41 is amended by revising paragraph (a) introductory 
text, paragraph (a)(2), and the note to paragraph (b), to read as 
follows:


Sec.  120.41  Specially designed.

    (a) Except for commodities or software described in paragraph (b) 
of

[[Page 61228]]

this section, a commodity or software (see Sec.  120.45(f)) is 
specially designed if it:
* * * * *
    (2) Is a part (see Sec.  120.45 (d)), component (see Sec.  
120.45(b)), accessory (see Sec.  120.45(c)), attachment (see Sec.  
120.45(c)), or software for use in or with a defense article.
* * * * *
    Note to paragraph (b): The term ``enumerated'' refers to any 
article on the U.S. Munitions List or the Commerce Control List and not 
in a ``catch-all'' control. A ``catch-all'' control is one that does 
not refer to specific types of parts, components, accessories, or 
attachments, but rather controls unspecified parts, components, 
accessories, or attachments only if they were specially designed for an 
enumerated item.
* * * * *

0
5. Section 120.45 is added to read as follows:


Sec.  120.45  End-items, components, accessories, attachments, parts, 
firmware, software, systems, and equipment.

    (a) An end-item is a system, equipment, or an assembled article 
ready for its intended use. Only ammunition or fuel or other energy 
source is required to place it in an operating state.
    (b) A component is an item that is useful only when used in 
conjunction with an end-item. A major component includes any assembled 
element that forms a portion of an end-item without which the end-item 
is inoperable. A minor component includes any assembled element of a 
major component.
    (c) Accessories and attachments are associated articles for any 
component, equipment, system, or end-item, and which are not necessary 
for its operation, but which enhance its usefulness or effectiveness.
    (d) A part is any single unassembled element of a major or a minor 
component, accessory, or attachment which is not normally subject to 
disassembly without the destruction or the impairment of designed use.
    (e) Firmware and any related unique support tools (such as 
computers, linkers, editors, test case generators, diagnostic checkers, 
library of functions, and system test diagnostics) directly related to 
equipment or systems covered under any category of the U.S. Munitions 
List are considered as part of the end-item or component. Firmware 
includes but is not limited to circuits into which software has been 
programmed.
    (f) Software includes but is not limited to the system functional 
design, logic flow, algorithms, application programs, operating 
systems, and support software for design, implementation, test, 
operation, diagnosis and repair. A person who intends to export only 
software should, unless it is specifically enumerated in Sec.  121.1 of 
this subchapter (e.g., USML Category XIII(b)), apply for a technical 
data license pursuant to part 125 of this subchapter.
    (g) A system is a combination of parts, components, accessories, 
attachments, firmware, software, equipment, or end-items that operate 
together to perform a function.
    Note to paragraph (g): The industrial standards established by 
INCOSE and NASA provide examples for when commodities and software 
operate together to perform a function as a system. References to these 
standards are included in this note to provide examples for when 
commodities or software operate together to perform a function as a 
system. See the INCOSE standards for what constitutes a system at: 
http://g2sebok.incose.org/app/mss/asset.cfm?ID=INCOSE%20G2SEBOK%202.00&ST=F, and in INCOSE SE Handbook 
v3.1 2007; ISO/IEC 15288:2008. See the NASA standards for examples of 
what constitutes a system in NASA SE Handbook SP-2007-6105 Rev 1.
    (h) Equipment is a combination of parts, components, accessories, 
attachments, firmware, or software that operate together to perform a 
function of, as, or for an end-item or system. Equipment may be a 
subset of an end-item based on the characteristics of the equipment. 
Equipment that meets the definition of an end-item is an end-item. 
Equipment that does not meet the definition of an end-item is a 
component, accessory, attachment, firmware, or software.

PART 121--THE UNITED STATES MUNITIONS LIST

0
6. 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); 22 U.S.C. 2651a; Pub. L. 105-261, 112 
Stat. 1920; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.

0
7. Section 121.1 is amended by:


0
a. Revising the section heading;
0
b. Revising the final sentence of paragraph (b)(2);
0
c. Removing the word ``enumerated'' and adding in its place the word 
``described'' in two places in paragraph (b)(2), in two places in 
paragraph (i) of Category I, in two places in paragraph (k) of Category 
II, in two places in paragraph (e) of Category III, in one place in 
paragraph (i) of Category IV, in one place in Note 1 to paragraph (i) 
of Category VI, in one place in Note to paragraph (h)(1) of Category 
VIII, in one place in paragraph (i) of Category VIII, in one place in 
paragraph (e) of Category IX, in one place in paragraph (e) of Category 
X, in two places in paragraph (d) of Category XI, in two places in 
paragraph (f) of Category XII, in two places in paragraph (l) of 
Category XIII, in two places in paragraph (m) of Category XIV, in two 
places in paragraph (f) of Category XV, in one place in paragraph (e) 
of Category XVI, in two places in paragraph (f) of Category XVIII, in 
one place in paragraph (g) of Category XIX, in one place in paragraph 
(d) of Category XX;
0
d. Revising paragraph (a) of Category II;
0
e. Removing the word ``numerated'' in adding in its place the word 
``described'' in paragraph (j) of Category V;
0
f. Revising paragraphs (a) and (b), and adding the note to paragraph 
(b)(4), and the note to paragraphs (a) and (b) in Category VI;
0
g. Revising paragraphs (a) introductory text, (b), (c), and (e), and 
adding the note to paragraph (c), and note 1, note 2, and note 3 to 
Category VII in Category VII;
0
h. Revising paragraphs (a) introductory text, (a)(9), (a)(11), (a)(12), 
(a)(13), adding paragraphs (a)(14), (a)(15), and (a)(16), revising 
paragraphs (h)(3), (h)(6), (h)(13), (h)(15), and (h)(23), adding note 1 
and note 2 to paragraph (a)(11), and note 1 to paragraph (a), and 
redesignating the note to paragraph (a) as note 2 to paragraph (a) in 
Category VIII;
0
i. Revising the title of Category IX, removing the note to paragraph 
(e) of Category IX, and revising paragraph (e) of Category IX;
0
j. Adding note to paragraph (f)(1) in Category XIX; and
0
k. Revising paragraphs (a) introductory text, (a)(1), and (a)(4), 
redesignating paragraphs (a)(6), (a)(7), and notes 1 through 3 of 
paragraph (a)(7) as paragraphs (a)(7), (a)(8), and notes 1 through 3 of 
paragraph (a)(8), respectively, adding a new paragraph (a)(6) and 
revising paragraph (a)(7) in Category XX.
    The revisions and additions read as follows:


Sec.  121.1  The United States Munitions List.

* * * * *
    (b) * * *

[[Page 61229]]

    (2) * * * Most U.S. Munitions List categories contain an entry on 
technical data (see Sec.  120.10 of this subchapter) and defense 
services (see Sec.  120.9 of this subchapter) related to the defense 
articles described in that U.S. Munitions List category.
* * * * *

Category II--Guns and Armament

    *(a) Guns over caliber .50 (i.e., 12.7 mm), whether towed, 
airborne, self-propelled, or fixed, including but not limited to, 
howitzers, mortars, cannons, recoilless rifles, and grenade launchers.
* * * * *

Category VI--Surface Vessels of War and Special Naval Equipment

    *(a) Warships and other combatant vessels (i.e., battleships, 
aircraft carriers, destroyers, frigates, cruisers, corvettes, littoral 
combat ships, mine sweepers, mine hunters, mine countermeasure ships, 
dock landing ships, amphibious assault ships), Coast Guard Cutters 
(with or equivalent to those with U.S. designations WHEC, WMEC, WMSL, 
or WPB for the purpose of this subchapter), or foreign-origin vessels 
specially designed to provide functions equivalent to those of the 
vessels listed above;
    (b) Other vessels not controlled in paragraph (a) of this category, 
as follows:
    (1) High-speed air cushion vessels for transporting cargo and 
personnel, ship-to-shore and across a beach, with a payload over 25 
tons;
    (2) Surface vessels integrated with nuclear propulsion plants or 
specially designed to support naval nuclear propulsion plants;
    (3) Vessels armed or specially designed to be used as a platform to 
deliver munitions or otherwise destroy or incapacitate targets (e.g., 
firing lasers, launching torpedoes, rockets, or missiles, or firing 
munitions greater than .50 caliber); or
    (4) Vessels incorporating any mission systems controlled under this 
subchapter.
    Note to paragraph (b)(4): ``Mission systems'' are defined as 
``systems'' (see Sec.  120.45(g) of this subchapter) that are defense 
articles that perform specific military functions such as by providing 
military communication, electronic warfare, target designation, 
surveillance, target detection, or sensor capabilities.
    Note to paragraphs (a) and (b): Vessels specially designed for 
military use that are not identified in paragraph (a) or (b) of this 
category are subject to the EAR under ECCN 8A609, including any 
demilitarized vessels, regardless of origin or designation, 
manufactured prior to 1950 and unmodified since 1949. Vessels with 
modifications made to incorporate safety features required by law, are 
cosmetic (e.g., different paint), or that add parts or components 
otherwise available prior to 1950 are considered ``unmodified'' for the 
purposes of this paragraph.
* * * * *

Category VII--Ground Vehicles

    *(a) Armored combat ground vehicles as follows:
* * * * *
    *(b) Ground vehicles (not enumerated in paragraph (a) of this 
category) and trailers that are armed or are specially designed to be 
used as a firing or launch platform to deliver munitions or otherwise 
destroy or incapacitate targets (e.g., firing lasers, launching 
rockets, firing missiles, firing mortars, firing artillery rounds, or 
firing other ammunition greater than .50 caliber) (MT if specially 
designed for rockets, space launch vehicles, missiles, drones, or 
unmanned aerial vehicles capable of delivering a payload of at least 
500 kg to a range of at least 300 km).
    (c) Ground vehicles and trailers equipped with any mission systems 
controlled under this subchapter (MT if specially designed for rockets, 
space launch vehicles, missiles, drones, or unmanned aerial vehicles 
capable of delivering a payload of at least 500 kg to a range of at 
least 300 km).
    Note to paragraph (c): ``Mission systems'' are defined as 
``systems'' (see Sec.  120.45(g) of this subchapter) that are defense 
articles that perform specific military functions, such as by providing 
military communication, target designation, surveillance, target 
detection, or sensor capabilities.
* * * * *
    *(e) Armored support vehicles capable of off-road or amphibious use 
specially designed to transport or deploy personnel or materiel, or to 
move with other vehicles over land in close support of combat vehicles 
or troops (e.g., personnel carriers, resupply vehicles, combat engineer 
vehicles, recovery vehicles, reconnaissance vehicles, bridge launching 
vehicles, ambulances, and command and control vehicles).
    Note 1 to Category VII: Ground vehicles specially designed for 
military applications that are not identified in this category are 
subject to the EAR under ECCN 0A606, including any unarmed ground 
vehicles, regardless of origin or designation, manufactured prior to 
1956 and unmodified since 1955. Ground vehicles with modifications made 
to incorporate safety features required by law, are cosmetic (e.g., 
different paint, repositioning of bolt holes), or that add parts or 
components otherwise available prior to 1956 are considered 
``unmodified'' for the purposes of this paragraph. ECCN 0A606 also 
includes unarmed vehicles derived from otherwise EAR99 civilian 
vehicles that have been modified or otherwise fitted with materials to 
provide ballistic protection, including protection to level III 
(National Institute of Justice Standard 0108.01, September 1985) or 
better and that do not have reactive or electromagnetic armor.
    Note 2 to Category VII: Armored ground vehicles are (i) ground 
vehicles that have integrated, fully armored hulls or cabs, or (ii) 
ground vehicles on which add-on armor has been installed to provide 
ballistic protection to level III (National Institute of Justice 
Standard 0108.01, September 1985) or better. Armored support vehicles 
do not include those that are merely capable of being equipped with 
add-on armor.
    Note 3 to Category VII: Ground vehicles include any vehicle meeting 
the definitions or control parameters regardless of the surface (e.g., 
highway, off-road, rail) upon which the vehicle is designed to operate.
* * * * *

Category VIII--Aircraft and Related Articles

    (a) Aircraft, as follows:
* * * * *
    (9) Air refueling aircraft;
* * * * *
    (11) Aircraft incorporating any mission system controlled under 
this subchapter;
    Note 1 to paragraph (a)(11): ``Mission systems'' are defined as 
``systems'' (see Sec.  120.45(g) of this subchapter) that are defense 
articles that perform specific military functions such as by providing 
military communication, electronic warfare, target designation, 
surveillance, target detection, or sensor capabilities.
    Note 2 to paragraph (a)(11): This does not include tethered 
aerostats. Mission systems incorporated on otherwise EAR-controlled 
aerostats are controlled as the mission systems themselves just as if 
they were mounted, for example, on a tower or a pole.
    (12) Aircraft capable of being refueled in flight including hover-
in-flight refueling (HIFR);
    *(13) Optionally Piloted Vehicles (OPV) (i.e. aircraft specially 
designed to operate with and without a pilot physically located in the 
aircraft) (MT if the OPV has a range equal to or greater than 300km);

[[Page 61230]]

    (14) Aircraft with a roll-on/roll-off ramp, capable of airlifting 
payloads over 35,000 lbs. to ranges over 2,000 nm without being 
refueled in-flight, and landing onto short or unimproved airfields;
    *(15) Aircraft not enumerated in paragraphs (a)(1) through (a)(14) 
as follows:
    (i) U.S.-origin aircraft that bear an original military designation 
of A, B, E, F, K, M, P, R, or S; or
    (ii) Foreign-origin aircraft specially designed to provide 
functions equivalent to those of the aircraft listed in paragraph 
(a)(15)(i) of this category; or
    (16) are armed or are specially designed to be used as a platform 
to deliver munitions or otherwise destroy targets (e.g., firing lasers, 
launching rockets, firing missiles, dropping bombs, or strafing);
    Note 1 to paragraph (a): Aircraft specially designed for military 
applications that are not identified in paragraph (a) of this section 
are subject to the EAR and classified as ECCN 9A610, including any 
unarmed military aircraft, regardless of origin or designation, 
manufactured prior to 1956 and unmodified since manufacture. Aircraft 
with modifications made to incorporate safety of flight features or 
other FAA or NTSB modifications such as transponders and air data 
recorders are considered ``unmodified'' for the purposes of this 
paragraph.
* * * * *
    (h) * * *
    (3) Tail boom folding systems, stabilator folding systems or 
automatic rotor blade folding systems, and specially designed parts and 
components therefor;
* * * * *
    (6) Bomb racks, missile launchers, missile rails, weapon pylons, 
pylon-to-launcher adapters, unmanned aerial vehicle (UAV) airborne 
launching systems, external stores support systems for ordnance or 
weapons, and specially designed parts and components therefor (MT if 
the bomb rack, missile launcher, missile rail, weapon pylon, pylon-to-
launcher adapter, UAV airborne launching system, or external stores 
support system is for a UAV, drone, or missile that has a ``range'' 
equal to or greater than 300 km);
* * * * *
    (13) Aircraft Lithium-ion batteries that provide greater than 38VDC 
nominal;
* * * * *
    (15) Integrated helmets incorporating optical sights or slewing 
devices, which include the ability to aim, launch, track, or manage 
munitions (e.g., Helmet Mounted Cueing Systems, Joint Helmet Mounted 
Cueing Systems (JHMCS), Helmet Mounted Displays, Display and Sight 
Helmets (DASH)), and specially designed parts, components, accessories, 
and attachments therefor;
* * * * *
    (23) Electricity-generating fuel cells specially designed for 
aircraft controlled in this category or controlled in ECCN 9A610;
* * * * *

Category IX--Military Training Equipment and Training

* * * * *
    (e) Technical data (see Sec.  120.10 of this subchapter) and 
defense services (see Sec.  120.9 of this subchapter):
    (1) Directly related to the defense articles enumerated in 
paragraphs (a) and (b) of this category;
    (2) Directly related to the software and associated databases 
enumerated in paragraph (b)(4) of this category even if no defense 
articles are used or transferred; or
    (3) Military training (see, Sec.  120.9(a)(3) of this subchapter) 
not directly related to defense articles or technical data enumerated 
in this subchapter.
* * * * *

Category XIX--Gas Turbine Engines and Associated Equipment

* * * * *
    (f) * * *
    (1) * * *
    Note to paragraph (f)(1): Specially designed (see Sec.  
120.41(b)(3)(ii) of this subchapter) does not control parts, 
components, accessories, and attachments that are common to engines 
enumerated in paragraph (a) through (d) of this category but not 
identified in paragraph (f)(1), and those identified in paragraph 
(f)(1). For example, a part common to only the F110 and F136 is not 
specially designed for purposes of the ITAR. A part common to only the 
F119 and F135--two engine models identified in paragraph (f)(1)--is 
specially designed.
* * * * *

Category XX--Submersible Vessels and Related Articles

    (a) Submersible and semi-submersible vessels that are:
    *(1) Submarines specially designed for military use;
* * * * *
    (4) Armed or are specially designed to be used as a platform to 
deliver munitions or otherwise destroy or incapacitate targets (e.g., 
firing torpedoes, launching rockets, firing missiles, deploying mines, 
deploying countermeasures) or deploy military payloads;
* * * * *
    (6) Integrated with nuclear propulsion systems;
    (7) Equipped with any mission systems controlled under this 
subchapter; or
    Note to paragraph (a)(7): ``Mission system'' is defined as a 
``system'' (see Sec.  120.45(g) of this subchapter) that are defense 
articles that perform specific military functions such as by providing 
military communication, electronic warfare, target designation, 
surveillance, target detection, or sensor capabilities.
* * * * *

0
8. Sections 121.2, 121.3, 121.4, 121.8, 121.10, 121.14, and 121.15 are 
removed and reserved.

PART 123--LICENSES FOR THE EXPORT AND TEMPORARY IMPORT OF DEFENSE 
ARTICLES

0
9. The authority citation for part 123 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); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 U.S.C. 
2776; Pub. L. 105-261, 112 Stat. 1920; Sec. 1205(a), Pub. L. 107-
228; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.


0
10. Section 123.1 is amended by removing the word ``enumerated'' and 
adding in its place the word ``described'' in one place in paragraph 
(b)(1).

0
11. Section 123.16 is amended by revising paragraph (b)(4) to read as 
follows:


Sec.  123.16  Exemptions of general applicability.

* * * * *
    (b) * * *
    (4) Port Directors of U.S. Customs and Border Protection shall 
permit the export without a license, of unclassified models or mock-ups 
of defense articles, provided that such models or mock-ups are 
inoperable and do not reveal any technical data in excess of that which 
is exempted from the licensing requirements of Sec.  125.4(b) of this 
subchapter and do not contain components (see Sec.  120.45(b) of this 
subchapter) covered by the U.S. Munitions List (see Sec.  121.1 of this 
subchapter). Some models or mockups built to scale or constructed of 
original materials can reveal technical data. U.S. persons who avail 
themselves of this exemption must provide a written certification to 
the Port Director of U.S. Customs and Border Protection that these 
conditions are met. This exemption does not imply that the

[[Page 61231]]

Directorate of Defense Trade Controls will approve the export of any 
defense articles for which models or mocks-ups have been exported 
pursuant to this exemption.
* * * * *

PART 126--GENERAL POLICIES AND PROVISIONS

0
12. The authority citation for part 126 continues to read as follows:

    Authority: Secs. 2, 38, 40, 42, and 71, Pub. L. 90-629, 90 Stat. 
744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); 22 U.S.C. 2651a; 
22 U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR, 1994 Comp., p. 899; 
Sec. 1225, Pub. L. 108-375; Sec. 7089, Pub. L. 111-117; Pub. L. 111-
266; Sections 7045 and 7046, Pub. L. 112-74; E.O. 13637, 78 FR 
16129.


Sec.  126.1  [Amended]

0
13. Section 126.1 is amended by removing the word ``enumerated'' and 
adding in its place the word ``described'' in one place in paragraph 
(c).

0
14. Supplement No. 1 to part 126 is revised to read as follows:

Supplement No. 1 to Part 126

                            Supplement No. 1*
  [*An ``X'' in the chart indicates that the item is excluded from use
    under the exemption referenced in the top of the column. An item
excluded in any one row is excluded regardless of whether other rows may
           contain a description that would include the item.]
------------------------------------------------------------------------
                                         (CA) Sec.  (AS) Sec.  (UK) Sec.
 USML Category          Exclusion           126.5      126.16     126.17
 
------------------------------------------------------------------------
I-XXI..........  Classified defense             X          X          X
                  articles and
                  services. See Note 1.
I-XXI..........  Defense articles               X          X          X
                  listed in the Missile
                  Technology Control
                  Regime (MTCR) Annex.
I-XXI..........  U.S. origin defense     .........         X          X
                  articles and services
                  used for marketing
                  purposes and not
                  previously licensed
                  for export in
                  accordance with this
                  subchapter.
I-XXI..........  Defense services for           X   .........  .........
                  or technical data
                  related to defense
                  articles identified
                  in this supplement as
                  excluded from the
                  Canadian exemption.
I-XXI..........  Any transaction                X   .........  .........
                  involving the export
                  of defense articles
                  and services for
                  which congressional
                  notification is
                  required in
                  accordance with Sec.
                   123.15 and Sec.
                  124.11 of this
                  subchapter.
I-XXI..........  U.S. origin defense     .........         X          X
                  articles and services
                  specific to
                  developmental systems
                  that have not
                  obtained written
                  Milestone B approval
                  from the U.S.
                  Department of Defense
                  milestone approval
                  authority, unless
                  such export is
                  pursuant to a written
                  solicitation or
                  contract issued or
                  awarded by the U.S.
                  Department of Defense
                  for an end-use
                  identified in
                  paragraph (e)(1),
                  (e)(2), or (e)(4) of
                  Sec.   126.16 or Sec.
                    126.17 of this
                  subchapter and is
                  consistent with other
                  exclusions of this
                  supplement.
I-XXI..........  Nuclear weapons                X   .........  .........
                  strategic delivery
                  systems and all
                  components, parts,
                  accessories, and
                  attachments
                  specifically designed
                  for such systems and
                  associated equipment.
I-XXI..........  Defense articles and    .........         X          X
                  services specific to
                  the existence or
                  method of compliance
                  with anti-tamper
                  measures, where such
                  measures are readily
                  identifiable, made at
                  originating
                  Government direction.
I-XXI..........  Defense articles and    .........         X          X
                  services specific to
                  reduced observables
                  or counter low
                  observables in any
                  part of the spectrum.
                  See Note 2.
I-XXI..........  Defense articles and    .........         X          X
                  services specific to
                  sensor fusion beyond
                  that required for
                  display or
                  identification
                  correlation. See Note
                  3.
I-XXI..........  Defense articles and    .........         X          X
                  services specific to
                  the automatic target
                  acquisition or
                  recognition and
                  cueing of multiple
                  autonomous unmanned
                  systems.
I-XXI..........  Nuclear power           .........  .........         X
                  generating equipment
                  or propulsion
                  equipment (e.g.,
                  nuclear reactors),
                  specifically designed
                  for military use and
                  components therefor,
                  specifically designed
                  for military use. See
                  also Sec.   123.20 of
                  this subchapter.
I-XXI..........  Libraries (parametric   .........  .........         X
                  technical databases)
                  specially designed
                  for military use with
                  equipment controlled
                  on the USML. See Note
                  13.
I-XXI..........  Defense services or            X   .........  .........
                  technical data
                  specific to applied
                  research as defined
                  in Sec.   125.4(c)(3)
                  of this subchapter,
                  design methodology as
                  defined in Sec.
                  125.4(c)(4) of this
                  subchapter,
                  engineering analysis
                  as defined in Sec.
                  125.4(c)(5) of this
                  subchapter, or
                  manufacturing know-
                  how as defined in
                  Sec.   125.4(c)(6) of
                  this subchapter. See
                  Note 12.
I-XXI..........  Defense services other         X   .........  .........
                  than those required
                  to prepare a quote or
                  bid proposal in
                  response to a written
                  request from a
                  department or agency
                  of the United States
                  Federal Government or
                  from a Canadian
                  Federal, Provincial,
                  or Territorial
                  Government; or
                  defense services
                  other than those
                  required to produce,
                  design, assemble,
                  maintain or service a
                  defense article for
                  use by a registered
                  U.S. company, or a
                  U.S. Federal
                  Government Program,
                  or for end-use in a
                  Canadian Federal,
                  Provincial, or
                  Territorial
                  Government Program.
                  See Note 14.
I..............  Firearms, close                X   .........  .........
                  assault weapons, and
                  combat shotguns.
II(k)..........  Software source code    .........         X          X
                  related to USML
                  Category II(c),
                  II(d), or II(i). See
                  Note 4.
II(k)..........  Manufacturing know-how         X          X          X
                  related to USML
                  Category II(d). See
                  Note 5.
III............  Ammunition for                 X   .........  .........
                  firearms, close
                  assault weapons, and
                  combat shotguns
                  listed in USML
                  Category I.
III............  Defense articles and    .........  .........         X
                  services specific to
                  ammunition and fuse
                  setting devices for
                  guns and armament
                  controlled in USML
                  Category II.
III(e).........  Manufacturing know-how         X          X          X
                  related to USML
                  Category III(d)(1) or
                  III(d)(2) and their
                  specially designed
                  components. See Note
                  5.
III(e).........  Software source code    .........         X          X
                  related to USML
                  Category III(d)(1) or
                  III(d)(2). See Note 4.
IV.............  Defense articles and           X          X          X
                  services specific to
                  man-portable air
                  defense systems
                  (MANPADS). See Note 6.
IV.............  Defense articles and    .........  .........         X
                  services specific to
                  rockets, designed or
                  modified for non-
                  military applications
                  that do not have a
                  range of 300 km
                  (i.e., not controlled
                  on the MTCR Annex).
IV.............  Defense articles and    .........         X          X
                  services specific to
                  torpedoes.
IV.............  Defense articles and           X          X          X
                  services specific to
                  anti-personnel
                  landmines. See Note
                  15.

[[Page 61232]]

 
IV.............  Defense articles and           X          X          X
                  services specific to
                  cluster munitions.
IV(i)..........  Software source code    .........         X          X
                  related to USML
                  Category IV(a),
                  IV(b), IV(c), or
                  IV(g). See Note 4.
IV(i)..........  Manufacturing know-how         X          X          X
                  related to USML
                  Category IV(a),
                  IV(b), IV(d), or
                  IV(g) and their
                  specially designed
                  components. See Note
                  5.
V..............  The following           .........  .........         X
                  energetic materials
                  and related
                  substances:.
                 a. TATB
                  (triaminotrinitrobenz
                  ene) (CAS 3058-38-6);.
                 b. Explosives
                  controlled in USML
                  Category V(a)(38);.
                 c. Iron powder (CAS
                  7439-89-6) with
                  particle size of 3
                  micrometers or less
                  produced by reduction
                  of iron oxide with
                  hydrogen;.
                 d. BOBBA-8 (bis(2-
                  methylaziridinyl)2-(2-
                  hydroxypropanoxy)
                  propylamino phosphine
                  oxide), and other
                  MAPO derivatives;.
                 e. N-methyl-p-
                  nitroaniline (CAS 100-
                  15-2); or.
                 f.
                  Trinitrophenylmethyln
                  itramine (tetryl)
                  (CAS 479-45-8).
V(a)(13).......  ANF or ANAzF as         .........  .........         X
                  described in USML
                  Category
                  V(a)(13)(iii) and
                  (iv).
V(a)(23).......  Difluoraminated         .........  .........         X
                  derivative of RDX as
                  described in USML
                  Category
                  V(a)(23)(iii).
V(c)(7)........  Pyrotechnics and        .........  .........         X
                  pyrophorics
                  specifically
                  formulated for
                  military purposes to
                  enhance or control
                  radiated energy in
                  any part of the IR
                  spectrum.
V(d)(3)........  Bis-2, 2-               .........  .........         X
                  dinitropropylnitrate
                  (BDNPN).
V(i)...........  Developmental           .........         X          X
                  explosives,
                  propellants,
                  pyrotechnics, fuels,
                  oxidizers, binders,
                  additives, or
                  precursors therefor,
                  funded by the
                  Department of Defense
                  via contract or other
                  funding authorization
                  in accordance with
                  notes 1 to 3 for USML
                  Category V(i). This
                  exclusion does not
                  apply if such export
                  is pursuant to a
                  written solicitation
                  or contract issued or
                  awarded by the U.S.
                  Department of Defense
                  for an end-use
                  identified in
                  paragraph (e)(1),
                  (e)(2), or (e)(4) of
                  Sec.   126.16 or Sec.
                    126.17 of this
                  subchapter and is
                  consistent with other
                  exclusions of this
                  supplement.
VI.............  Defense articles and    .........  .........         X
                  services specific to
                  cryogenic equipment,
                  and specially
                  designed components
                  or accessories
                  therefor, specially
                  designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne or space
                  applications, capable
                  of operating while in
                  motion and of
                  producing or
                  maintaining
                  temperatures below
                  103 K (-170[deg]C).
VI.............  Defense articles and    .........  .........         X
                  services specific to
                  superconductive
                  electrical equipment
                  (rotating machinery
                  and transformers)
                  specially designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne, or space
                  applications and
                  capable of operating
                  while in motion.
                  This, however, does
                  not include direct
                  current hybrid
                  homopolar generators
                  which have single-
                  pole normal metal
                  armatures that rotate
                  in a magnetic field
                  produced by
                  superconducting
                  windings, provided
                  those windings are
                  the only
                  superconducting
                  component in the
                  generator.
VI.............  Defense articles and    .........         X          X
                  services specific to
                  naval technology and
                  systems relating to
                  acoustic spectrum
                  control and
                  awareness. See Note
                  10.
VI(a)..........  Nuclear powered                X          X          X
                  vessels.
VI(e)..........  Defense articles and           X          X          X
                  services specific to
                  naval nuclear
                  propulsion equipment.
                  See Note 7.
VI(g)..........  Software source code    .........         X          X
                  related to USML
                  Category VI(a) or
                  VI(c). See Note 4.
VII............  Defense articles and    .........  .........         X
                  services specific to
                  cryogenic equipment,
                  and specially
                  designed components
                  or accessories
                  therefor, specially
                  designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne or space
                  applications, capable
                  of operating while in
                  motion and of
                  producing or
                  maintaining
                  temperatures below
                  103 K (-170[deg]C).
VII............  Defense articles and    .........  .........         X
                  services specific to
                  superconductive
                  electrical equipment
                  (rotating machinery
                  and transformers)
                  specially designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne, or space
                  applications and
                  capable of operating
                  while in motion.
                  This, however, does
                  not include direct
                  current hybrid
                  homopolar generators
                  that have single-pole
                  normal metal
                  armatures which
                  rotate in a magnetic
                  field produced by
                  superconducting
                  windings, provided
                  those windings are
                  the only
                  superconducting
                  component in the
                  generator.
VIII...........  Defense articles and    .........  .........         X
                  services specific to
                  cryogenic equipment,
                  and specially
                  designed components
                  and accessories
                  therefor, specially
                  designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne or space
                  applications, capable
                  of operating while in
                  motion and of
                  producing or
                  maintaining
                  temperatures below
                  103 K (-170[deg]C).
VIII...........  Defense articles and    .........  .........         X
                  services specific to
                  superconductive
                  electrical equipment
                  (rotating machinery
                  and transformers)
                  specially designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne, or space
                  applications and
                  capable of operating
                  while in motion.
                  This, however, does
                  not include direct
                  current hybrid
                  homopolar generators
                  which have single-
                  pole normal metal
                  armatures that rotate
                  in a magnetic field
                  produced by
                  superconducting
                  windings, provided
                  those windings are
                  the only
                  superconducting
                  component in the
                  generator.
VIII(a)........  All USML Category              X   .........  .........
                  VIII(a) items.
VIII(f)........  Developmental aircraft         X   .........  .........
                  parts, components,
                  accessories, and
                  attachments
                  identified in USML
                  Category VIII(f).
VIII(i)........  Manufacturing know-how         X          X          X
                  related to USML
                  Category VIII(a) or
                  VIII(e), and
                  specially designed
                  parts or components
                  therefor. See Note 5.
VIII(i)........  Software source code    .........         X          X
                  related to USML
                  Category VIII(a) or
                  VIII(e). See Note 4.
IX.............  Training or simulation  .........         X          X
                  equipment for Man
                  Portable Air Defense
                  Systems (MANPADS).
                  See Note 6.
IX(e)..........  Software source code    .........         X          X
                  related to USML
                  Category IX(a) or
                  IX(b). See Note 4.
IX(e)..........  Software that is both   .........  .........         X
                  specifically designed
                  or modified for
                  military use and
                  specifically designed
                  or modified for
                  modeling or
                  simulating military
                  operational scenarios.

[[Page 61233]]

 
X(e)...........  Manufacturing know-how         X          X          X
                  related to USML
                  Category X(a)(1) or
                  X(a)(2), and
                  specially designed
                  components therefor.
                  See Note 5.
XI(a)..........  Defense articles and    .........         X          X
                  services specific to
                  countermeasures and
                  counter-
                  countermeasures See
                  Note 9.
XI(a)..........  High Frequency and      .........         X   .........
                  Phased Array
                  Microwave Radar
                  systems, with
                  capabilities such as
                  search, acquisition,
                  tracking, moving
                  target indication,
                  and imaging radar
                  systems. See Note 16.
XI.............  Defense articles and    .........         X          X
                  services specific to
                  naval technology and
                  systems relating to
                  acoustic spectrum
                  control and
                  awareness. See Note
                  10.
XI(b), XI(c),    Defense articles and    .........         X          X
 XI(d).           services specific to
                  USML Category XI (b)
                  (e.g., communications
                  security (COMSEC) and
                  TEMPEST).
XI(d)..........  Software source code    .........         X          X
                  related to USML
                  Category XI(a). See
                  Note 4.
XI(d)..........  Manufacturing know-how         X          X          X
                  related to USML
                  Category XI(a)(3) or
                  XI(a)(4), and
                  specially designed
                  components therefor.
                  See Note 5.
XII............  Defense articles and    .........         X          X
                  services specific to
                  countermeasures and
                  counter-
                  countermeasures. See
                  Note 9.
XII............  Defense articles and           X   .........  .........
                  services specific to
                  USML Category XII(c)
                  articles, except any
                  1st- and 2nd-
                  generation image
                  intensification tubes
                  and 1st- and 2nd-
                  generation image
                  intensification night
                  sighting equipment.
                  End-items in USML
                  Category XII(c) and
                  related technical
                  data limited to basic
                  operations,
                  maintenance, and
                  training information
                  as authorized under
                  the exemption in Sec.
                    125.4(b)(5) of this
                  subchapter may be
                  exported directly to
                  a Canadian Government
                  entity (i.e.,
                  federal, provincial,
                  territorial, or
                  municipal) consistent
                  with Sec.   126.5,
                  other exclusions, and
                  the provisions of
                  this subchapter.
XII............  Technical data or              X          X          X
                  defense services for
                  night vision
                  equipment beyond
                  basic operations,
                  maintenance, and
                  training data.
                  However, the AS and
                  UK Treaty exemptions
                  apply when such
                  export is pursuant to
                  a written
                  solicitation or
                  contract issued or
                  awarded by the U.S.
                  Department of Defense
                  for an end-use
                  identified in
                  paragraph (e)(1),
                  (e)(2), or (e)(4) of
                  Sec.   126.16 or Sec.
                    126.17 of this
                  subchapter and is
                  consistent with other
                  exclusions of this
                  supplement.
XII(f).........  Manufacturing know-how         X          X          X
                  related to USML
                  Category XII(d) and
                  specially designed
                  components therefor.
                  See Note 5.
XII(f).........  Software source code    .........         X          X
                  related to USML
                  Category XII(a),
                  XII(b), XII(c), or
                  XII(d). See Note 4.
XIII(b)........  Defense articles and    .........         X          X
                  services specific to
                  USML Category XIII(b)
                  (Military Information
                  Security Assurance
                  Systems,
                  cryptographic
                  devices, software,
                  and components).
XIII(d)........  Carbon/carbon billets   .........  .........         X
                  and preforms which
                  are reinforced in
                  three or more
                  dimensional planes,
                  specifically
                  designed, developed,
                  modified, configured
                  or adapted for
                  defense articles.
XIII(e)........  Defense articles and    .........  .........         X
                  services specific to
                  armored plate
                  manufactured to
                  comply with a
                  military standard or
                  specification or
                  suitable for military
                  use. See Note 11.
XIII(g)........  Defense articles and    .........  .........         X
                  services related to
                  concealment and
                  deception equipment
                  and materials.
XIII(h)........  Energy conversion       .........  .........         X
                  devices other than
                  fuel cells.
XIII(j)........  Defense articles and    .........         X          X
                  services related to
                  hardware associated
                  with the measurement
                  or modification of
                  system signatures for
                  detection of defense
                  articles as described
                  in Note 2.
XIII(l)........  Software source code    .........         X          X
                  related to USML
                  Category XIII(a). See
                  Note 4.
XIV............  Defense articles and    .........         X          X
                  services related to
                  toxicological agents,
                  including chemical
                  agents, biological
                  agents, and
                  associated equipment.
XIV(a), XIV(b),  Chemical agents listed         X   .........  .........
 XIV(d),          in USML Category
 XIV(e), XIV(f).  XIV(a), (d) and (e),
                  biological agents and
                  biologically derived
                  substances in USML
                  Category XIV(b), and
                  equipment listed in
                  USML Category XIV(f)
                  for dissemination of
                  the chemical agents
                  and biological agents
                  listed in USML
                  Category XIV(a), (b),
                  (d), and (e).
XV(a)..........  Defense articles and           X          X          X
                  services specific to
                  spacecraft/
                  satellites. However,
                  the Canadian
                  exemption may be used
                  for commercial
                  communications
                  satellites that have
                  no other type of
                  payload.
XV(b)..........  Defense articles and    .........         X          X
                  services specific to
                  ground control
                  stations for
                  spacecraft telemetry,
                  tracking, and
                  control. Defense
                  articles and services
                  are not excluded
                  under this entry if
                  they do not control
                  the spacecraft.
                  Receivers for
                  receiving satellite
                  transmissions are
                  also not excluded
                  under this entry.
XV(c)..........  Defense articles and    .........         X          X
                  services specific to
                  GPS/PPS security
                  modules.
XV(c)..........  Defense articles               X   .........  .........
                  controlled in USML
                  Category XV(c) except
                  end-items for end-use
                  by the Federal
                  Government of Canada
                  exported directly or
                  indirectly through a
                  Canadian-registered
                  person.
XV(e)..........  Anti-jam systems with          X   .........  .........
                  the ability to
                  respond to incoming
                  interference by
                  adaptively reducing
                  antenna gain
                  (nulling) in the
                  direction of the
                  interference.
XV(e)..........  Antennas having any of         X   .........  .........
                  the following:.
                 a. Aperture (overall
                  dimension of the
                  radiating portions of
                  the antenna) greater
                  than 30 feet;.
                 b. All sidelobes less
                  than or equal to -35
                  dB relative to the
                  peak of the main
                  beam; or.
                 c. Designed, modified,
                  or configured to
                  provide coverage area
                  on the surface of the
                  earth less than 200
                  nautical miles in
                  diameter, where
                  ``coverage area'' is
                  defined as that area
                  on the surface of the
                  earth that is
                  illuminated by the
                  main beam width of
                  the antenna (which is
                  the angular distance
                  between half power
                  points of the beam).
XV(e)..........  Optical intersatellite         X   .........  .........
                  data links (cross
                  links) and optical
                  ground satellite
                  terminals.

[[Page 61234]]

 
XV(e)..........  Spaceborne                     X   .........  .........
                  regenerative baseband
                  processing (direct up
                  and down conversion
                  to and from baseband)
                  equipment.
XV(e)..........  Propulsion systems             X   .........  .........
                  which permit
                  acceleration of the
                  satellite on-orbit
                  (i.e., after mission
                  orbit injection) at
                  rates greater than
                  0.1 g.
XV(e)..........  Attitude control and           X   .........  .........
                  determination systems
                  designed to provide
                  spacecraft pointing
                  determination and
                  control or payload
                  pointing system
                  control better than
                  0.02 degrees per axis.
XV(e)..........  All specifically               X   .........  .........
                  designed or modified
                  systems, components,
                  parts, accessories,
                  attachments, and
                  associated equipment
                  for all USML Category
                  XV(a) items, except
                  when specifically
                  designed or modified
                  for use in commercial
                  communications
                  satellites.
XV(e)..........  Defense articles and    .........         X          X
                  services specific to
                  spacecraft and ground
                  control station
                  systems (only for
                  telemetry, tracking
                  and control as
                  controlled in USML
                  Category XV(b)),
                  subsystems,
                  components, parts,
                  accessories,
                  attachments, and
                  associated equipment.
XV(f)..........  Technical data and             X          X          X
                  defense services
                  directly related to
                  the other defense
                  articles excluded
                  from the exemptions
                  for USML Category XV.
XVI............  Defense articles and           X          X          X
                  services specific to
                  design and testing of
                  nuclear weapons.
XVII...........  Classified articles,           X          X          X
                  and technical data
                  and defense services
                  relating thereto, not
                  elsewhere enumerated.
                  See Note 1.
XVIII..........  Defense articles and    .........         X          X
                  services specific to
                  directed energy
                  weapon systems.
XIX(e),          Defense articles and    .........         X          X
 XIX(f)(1),       services specific to
 XIX(f)(2),       gas turbine engine
 XIX(g).          hot section
                  components and to
                  Full Authority
                  Digital Engine
                  Control Systems
                  (FADEC) or Digital
                  Electronic Engine
                  Controls (DEEC). See
                  Note 8.
XIX(g).........  Technical data and             X          X          X
                  defense services for
                  gas turbine engine
                  hot sections. (This
                  does not include
                  hardware). See Note 8.
XX.............  Defense articles and           X          X          X
                  services related to
                  submersible vessels,
                  oceanographic, and
                  associated equipment.
XX.............  Defense articles and    .........         X          X
                  services specific to
                  naval technology and
                  systems relating to
                  acoustic spectrum
                  control and
                  awareness. See Note
                  10.
XX.............  Defense articles        .........  .........         X
                  specific to cryogenic
                  equipment, and
                  specially designed
                  components or
                  accessories therefor,
                  specially designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne or space
                  applications, capable
                  of operating while in
                  motion and of
                  producing or
                  maintaining
                  temperatures below
                  103 K (-170[deg]C).
XX.............  Defense articles        .........  .........         X
                  specific to
                  superconductive
                  electrical equipment
                  (rotating machinery
                  and transformers)
                  specially designed or
                  configured to be
                  installed in a
                  vehicle for military
                  ground, marine,
                  airborne, or space
                  applications and
                  capable of operating
                  while in motion.
                  This, however, does
                  not include direct
                  current hybrid
                  homopolar generators
                  that have single-pole
                  normal metal
                  armatures which
                  rotate in a magnetic
                  field produced by
                  superconducting
                  windings, provided
                  those windings are
                  the only
                  superconducting
                  component in the
                  generator.
XX(a)..........  Nuclear powered                X          X          X
                  vessels.
XX(b)..........  Defense articles and           X          X          X
                  services specific to
                  naval nuclear
                  propulsion equipment.
                  See Note 7.
XX(c)..........  Defense articles and    .........         X          X
                  services specific to
                  submarine combat
                  control systems.
XX(d)..........  Software source code    .........         X          X
                  related to USML
                  Category XX(a). See
                  Note 4.
XXI............  Articles, and                  X          X          X
                  technical data and
                  defense services
                  relating thereto, not
                  otherwise enumerated
                  on the USML, but
                  placed in this
                  category by the
                  Director, Office of
                  Defense Trade
                  Controls Policy.
------------------------------------------------------------------------
Note 1: Classified defense articles and services are not eligible for
 export under the Canadian exemptions. U.S. origin articles, technical
 data, and services controlled in USML Category XVII are not eligible
 for export under the UK Treaty exemption. U.S. origin classified
 defense articles and services are not eligible for export under either
 the UK or AS Treaty exemptions except when being released pursuant to a
 U.S. Department of Defense written request, directive, or contract that
 provides for the export of the defense article or service.
Note 2: The phrase ``any part of the spectrum'' includes radio frequency
 (RF), infrared (IR), electro-optical, visual, ultraviolet (UV),
 acoustic, and magnetic. Defense articles related to reduced observables
 or counter reduced observables are defined as:
(a) Signature reduction (radio frequency (RF), infrared (IR), Electro-
 Optical, visual, ultraviolet (UV), acoustic, magnetic, RF emissions) of
 defense platforms, including systems, subsystems, components, materials
 (including dual-purpose materials used for Electromagnetic Interference
 (EM) reduction), technologies, and signature prediction, test and
 measurement equipment and software, and material transmissivity/
 reflectivity prediction codes and optimization software.
(b) Electronically scanned array radar, high power radars, radar
 processing algorithms, periscope-mounted radar systems (PATRIOT),
 LADAR, multistatic and IR focal plane array-based sensors, to include
 systems, subsystems, components, materials, and technologies.
Note 3: Defense articles and services related to sensor fusion beyond
 that required for display or identification correlation is defined as
 techniques designed to automatically combine information from two or
 more sensors/sources for the purpose of target identification,
 tracking, designation, or passing of data in support of surveillance or
 weapons engagement. Sensor fusion involves sensors such as acoustic,
 infrared, electro optical, frequency, etc. Display or identification
 correlation refers to the combination of target detections from
 multiple sources for assignment of common target track designation.
Note 4: Software source code beyond that source code required for basic
 operation, maintenance, and training for programs, systems, and/or
 subsystems is not eligible for use of the UK or AS Treaty exemptions,
 unless such export is pursuant to a written solicitation or contract
 issued or awarded by the U.S. Department of Defense for an end-use
 identified in paragraph (e)(1), (e)(2), or (e)(4) of Sec.   126.16 or
 Sec.   126.17 of this subchapter and is consistent with other
 exclusions of this supplement.
Note 5: Manufacturing know-how, as defined in Sec.   125.4(c)(6) of this
 subchapter, is not eligible for use of the UK or AS Treaty exemptions,
 unless such export is pursuant to a written solicitation or contract
 issued or awarded by the U.S. Department of Defense for an end-use
 identified in paragraph (e)(1), (e)(2), or (e)(4) of Sec.   126.16 or
 Sec.   126.17 of this subchapter and is consistent with other
 exclusions of this supplement.

[[Page 61235]]

 
Note 6: Defense articles and services specific to Man Portable Air
 Defense Systems (MANPADS) includes missiles that can be used without
 modification in other applications. It also includes production and
 test equipment and components specifically designed or modified for
 MANPAD systems, as well as training equipment specifically designed or
 modified for MANPAD systems.
Note 7: Naval nuclear propulsion plants includes all of USML Category
 VI(e). Naval nuclear propulsion information consists of technical data
 that concern the design, arrangement, development, manufacture,
 testing, operation, administration, training, maintenance, and repair
 of the propulsion plants of naval nuclear-powered ships and prototypes,
 including the associated shipboard and shore-based nuclear support
 facilities. Examples of defense articles covered by this exclusion
 include nuclear propulsion plants and nuclear submarine technologies or
 systems; nuclear powered vessels (see USML Categories VI and XX).
Note 8: A complete gas turbine engine with embedded hot section
 components or digital engine controls is eligible for export or
 transfer under the Treaties. Technical data, other than those data
 required for routine external maintenance and operation, related to the
 hot section is not eligible for export under the Canadian exemption.
 Technical data, other than those data required for routine external
 maintenance and operation, related to the hot section or digital engine
 controls, as well as individual hot section parts or components are not
 eligible for the Treaty exemption whether shipped separately or
 accompanying a complete engine. Gas turbine engine hot section exempted
 defense article components and technology are combustion chambers and
 liners; high pressure turbine blades, vanes, disks and related cooled
 structure; cooled low pressure turbine blades, vanes, disks and related
 cooled structure; cooled augmenters; and cooled nozzles. Examples of
 gas turbine engine hot section developmental technologies are
 Integrated High Performance Turbine Engine Technology (IHPTET),
 Versatile, Affordable Advanced Turbine Engine (VAATE), and Ultra-
 Efficient Engine Technology (UEET), which are also excluded from export
 under the exemptions.
Note 9: Examples of countermeasures and counter-countermeasures related
 to defense articles not exportable under the AS or UK Treaty exemptions
 are:
(a) IR countermeasures;
(b) Classified techniques and capabilities;
(c) Exports for precision radio frequency location that directly or
 indirectly supports fire control and is used for situation awareness,
 target identification, target acquisition, and weapons targeting and
 Radio Direction Finding (RDF) capabilities. Precision RF location is
 defined as angle of arrival accuracy of less than five degrees (RMS)
 and RF emitter location of less than ten percent range error;
(d) Providing the capability to reprogram; and
(e) Acoustics (including underwater), active and passive
 countermeasures, and counter-countermeasures.
Note 10: Examples of defense articles covered by this exclusion include
 underwater acoustic vector sensors; acoustic reduction; off-board,
 underwater, active and passive sensing, propeller/propulsor
 technologies; fixed mobile/floating/powered detection systems which
 include in-buoy signal processing for target detection and
 classification; autonomous underwater vehicles capable of long
 endurance in ocean environments (manned submarines excluded); automated
 control algorithms embedded in on-board autonomous platforms which
 enable (a) group behaviors for target detection and classification, (b)
 adaptation to the environment or tactical situation for enhancing
 target detection and classification; ``intelligent autonomy''
 algorithms that define the status, group (greater than 2) behaviors,
 and responses to detection stimuli by autonomous, underwater vehicles;
 and low frequency, broad band ``acoustic color,'' active acoustic
 ``fingerprint'' sensing for the purpose of long range, single pass
 identification of ocean bottom objects, buried or otherwise (controlled
 under Category USML XI(a)(1), (a)(2), (b), (c), and (d)).
Note 11: This exclusion does not apply to the platforms (e.g., vehicles)
 for which the armored plates are applied. For exclusions related to the
 platforms, refer to the other exclusions in this list, particularly for
 the category in which the platform is controlled.
The excluded defense articles include constructions of metallic or non-
 metallic materials or combinations thereof specially designed to
 provide protection for military systems. The phrase ``suitable for
 military use'' applies to any articles or materials which have been
 tested to level IIIA or above IAW NIJ standard 0108.01 or comparable
 national standard. This exclusion does not include military helmets,
 body armor, or other protective garments which may be exported IAW the
 terms of the AS or UK Treaty.
Note 12: Defense services or technical data specific to applied research
 (Sec.   125.4(c)(3) of this subchapter), design methodology (Sec.
 125.4(c)(4) of this subchapter), engineering analysis (Sec.
 125.4(c)(5) of this subchapter), or manufacturing know-how (Sec.
 125.4(c)(6) of this subchapter) are not eligible for export under the
 Canadian exemptions. However, this exclusion does not include defense
 services or technical data specific to build-to-print as defined in
 Sec.   125.4(c)(1) of this subchapter, build/design-to-specification as
 defined in Sec.   125.4(c)(2) of this subchapter, or basic research as
 defined in Sec.   125.4(c)(3) of this subchapter, or maintenance (i.e.,
 inspection, testing, calibration or repair, including overhaul,
 reconditioning and one-to-one replacement of any defective items parts
 or components, but excluding any modification, enhancement, upgrade or
 other form of alteration or improvement that changes the basic
 performance of the item) of non-excluded defense articles which may be
 exported subject to other exclusions or terms of the Canadian
 exemptions.
Note 13: The term ``libraries'' (parametric technical databases) means a
 collection of technical information of a military nature, reference to
 which may enhance the performance of military equipment or systems.
Note 14: In order to utilize the authorized defense services under the
 Canadian exemption, the following must be complied with:
    (a) The Canadian contractor and subcontractor must certify, in
     writing, to the U.S. exporter that the technical data and defense
     services being exported will be used only for an activity
     identified in Supplement No. 1 to part 126 of this subchapter and
     in accordance with Sec.   126.5 of this subchapter; and.
    (b) A written arrangement between the U.S. exporter and the Canadian
     recipient must:.
        (1) Limit delivery of the defense articles being produced
         directly to an identified manufacturer in the United States
         registered in accordance with part 122 of this subchapter; a
         department or agency of the United States Federal Government; a
         Canadian-registered person authorized in writing to manufacture
         defense articles by and for the Government of Canada; a
         Canadian Federal, Provincial, or Territorial Government;.
        (2) Prohibit the disclosure of the technical data to any other
         contractor or subcontractor who is not a Canadian-registered
         person;.
        (3) Provide that any subcontract contain all the limitations of
         Sec.   126.5 of this subchapter;.
        (4) Require that the Canadian contractor, including
         subcontractors, destroy or return to the U.S. exporter in the
         United States all of the technical data exported pursuant to
         the contract or purchase order upon fulfillment of the
         contract, unless for use by a Canadian or United States
         Government entity that requires in writing the technical data
         be maintained. The U.S. exporter must be provided written
         certification that the technical data is being retained or
         destroyed; and.

[[Page 61236]]

 
        (5) Include a clause requiring that all documentation created
         from U.S. origin technical data contain the statement that,
         ``This document contains technical data, the use of which is
         restricted by the U.S. Arms Export Control Act. This data has
         been provided in accordance with, and is subject to, the
         limitations specified in Sec.   126.5 of the International
         Traffic in Arms Regulations (ITAR). By accepting this data, the
         consignee agrees to honor the requirements of the ITAR.''.
    (c) The U.S. exporter must provide the Directorate of Defense Trade
     Controls a semi-annual report regarding all of their on-going
     activities authorized under Sec.   126.5 of this subchapter. The
     report shall include the article(s) being produced; the end-
     user(s); the end-item into which the product is to be incorporated;
     the intended end-use of the product; and the names and addresses of
     all the Canadian contractors and subcontractors..
Note 15: This exclusion does not apply to demining equipment in support
 of the clearance of landmines and unexploded ordnance for humanitarian
 purposes.
As used in this exclusion, ``anti-personnel landmine'' means any mine
 placed under, on, or near the ground or other surface area, or
 delivered by artillery, rocket, mortar, or similar means or dropped
 from an aircraft and which is designed to be detonated or exploded by
 the presence, proximity, or contact of a person; any device or material
 which is designed, constructed, or adapted to kill or injure and which
 functions unexpectedly when a person disturbs or approaches an
 apparently harmless object or performs an apparently safe act; any
 manually-emplaced munition or device designed to kill, injure, or
 damage and which is actuated by remote control or automatically after a
 lapse of time.
Note 16: The radar systems described are controlled in USML Category
 XI(a)(3)(i) through (v). As used in this entry, the term ``systems''
 includes equipment, devices, software, assemblies, modules, components,
 practices, processes, methods, approaches, schema, frameworks, and
 models.
------------------------------------------------------------------------

PART 130--POLITICAL CONTRIBUTIONS, FEES AND COMMISSIONS

0
15. The authority citation for part 130 continues to read as follows:

    Authority:  Sec. 39, Pub. L. 94-329, 90 Stat. 767 (22 U.S.C. 
2779); 22 U.S.C. 2651a; E.O. 13637, 78 FR 16129.


0
16. Section 130.8 is amended by revising the introductory text of 
paragraph (a) to read as follows:


Sec.  130.8  Vendor.

    (a) Vendor means any distributor or manufacturer who, directly or 
indirectly, furnishes to an applicant or supplier defense articles 
valued in an amount of $500,000 or more which are end-items or major 
components as defined in Sec.  120.45 of this subchapter. It also means 
any person who, directly or indirectly, furnishes to an applicant or 
supplier defense articles or services valued in an amount of $500,000 
or more when such articles or services are to be delivered (or 
incorporated in defense articles or defense services to be delivered) 
to or for the use of the armed forces of a foreign country or 
international organization under:
* * * * *

Rose E. Gottemoeller,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2014-23792 Filed 10-9-14; 8:45 am]
BILLING CODE 4710-05-P