[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Rules and Regulations]
[Pages 77862-77868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30019]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 736, 738, 740, 744, and 774

[Docket No. 141027899-4899-01]
RIN 0694-AG34


Corrections and Clarifications to the Export Administration 
Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is correcting 
certain provisions of the Export Administration Regulations (EAR) that 
were amended in past rulemakings appearing in the Federal Register 
between November 5, 2007 and October 14, 2014. This final rule makes 
corrections to certain provisions to ensure consistency and clarity in 
the regulations. In addition, this final rule makes other corrections 
to the EAR to fix typographical errors to ensure that the regulations 
accurately reflect the revisions intended by these past rulemakings.

DATES: This rule is effective December 29, 2014.

FOR FURTHER INFORMATION CONTACT: Timothy Mooney, Regulatory Policy 
Division, Bureau of Industry and Security, Department of Commerce, 
Phone: (202) 482-2440, Fax: (202) 482-3355, Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Industry and Security (BIS) is correcting certain 
provisions of the Export Administration Regulations (EAR) that were 
amended in past rulemakings appearing in the Federal Register between 
November 5, 2007 and October 14, 2014. In total, this final rule makes 
corrections and clarifications for thirteen final rules that amended 
the EAR during this time period. This final rule corrects these 
provisions to accurately reflect the revisions intended by these past 
rulemakings. These final rulemakings consist of the following: 
Revisions to the Commerce Control List: Imposition of Controls on 
Integrated Circuits, Helicopter Landing System

[[Page 77863]]

Radars, Seismic Detection Systems, and Technology for IR Up-Conversion 
Devices, October 14, 2014 (79 FR 61571); Russian Sanctions: Addition of 
Persons to the Entity List and Restrictions on Certain Military End 
Uses and Military End Users, September 17, 2014 (79 FR 55608); 
Corrections and Clarifications to the Export Administration 
Regulations; Correction, August 18, 2014 (79 FR 48660); Russian Oil 
Industry Sanctions and Addition of Person to the Entity List, August 6, 
2014 (79 FR 45675); Wassenaar Arrangement 2013 Plenary Agreements 
Implementation: Commerce Control List, Definitions, and Reports; and 
Extension of Fly-by-Wire Technology and Software Controls, August 4, 
2014 (79 FR 45288); Corrections and Clarifications to the Export 
Administration Regulations; Conforming Changes to the EAR Based on 
Amendments to the International Traffic in Arms Regulations, June 5, 
2014 (79 FR 32612); Revisions to the Export Administration Regulations 
(EAR): Control of Spacecraft Systems and Related Items the President 
Determines No Longer Warrant Control Under the United States Munitions 
List (USML), May 13, 2014 (79 FR 27417); Revisions to the Export 
Administration Regulations (EAR) To Make the Commerce Control List 
Clearer, October 4, 2013 (78 FR 61874); Revisions to the Export 
Administration Regulations: Military Vehicles; Vessels of War; 
Submersible Vessels, Oceanographic Equipment; Related Items; and 
Auxiliary and Miscellaneous Items That the President Determines No 
Longer Warrant Control Under the United States Munitions List, July 8, 
2013 (78 FR 40892); Implementation of the Understandings Reached at the 
2012 Australia Group (AG) Plenary Meeting and the 2012 AG 
Intersessional Decisions; Changes to Select Agent Controls, June 5, 
2013 (78 FR 33692); Revisions to the Export Administration Regulations: 
Initial Implementation of Export Control Reform, April 16, 2013 (78 FR 
22660); Export and Reexport Controls to Rwanda and United Nations 
Sanctions Under the Export Administration Regulations, July 23, 2012 
(77 FR 42973); and December 2006 Wassenaar Arrangement Plenary 
Agreement Implementation: Categories 1, 2, 3, 5 Part I, 6, 7, 8, and 9 
of the Commerce Control List; Wassenaar Reporting Requirements; 
Definitions; and Statement of Understanding on Source Code, November 5, 
2007 (72 FR 62524).
    The corrections and clarifications are described in the order in 
which they appear in the EAR.
    Section 732.1(d)(1)(v). This final rule makes a correction for the 
steps overview in Sec.  732.1(d)(1)(v)(General Prohibition Five (End-
Use End-User)) to correct a typographical error. The final rule revises 
this paragraph to remove the phrase ``end-user or end-users'' and add 
in its place the intended phrase ``end uses or end users.''
    General Order No. 5 in Supplement No. 1 to part 736. In Supplement 
No. 1 to part 736 under General Order No. 5, this final rule makes a 
correction to paragraph (e)(3) (Prior commodity jurisdiction 
determinations) to add a reference to 9x515 ECCNs. The transition 
guidance described in General Order No. 5 also applies to 9x515 ECCNs, 
but paragraph (e)(3), because it includes a reference to the ``600 
series,'' but omits a reference to the 9x515 ECCNs, could lead someone 
to make an incorrect inference that paragraph (e)(3) is not intended to 
apply to 9x515 ECCNs. Therefore, to make this paragraph (e)(3) clearer 
to the public, this final rule adds a reference to 9x515 ECCNs, which 
was inadvertently omitted in a past final rulemaking. This correction 
will also make the regulatory text of paragraph (e)(3) consistent with 
past regulatory guidance provided regarding the scope of General Order 
No. 5, including the applicability of paragraph (e)(3) of the general 
order.
    Section 738.2(a). This final rule corrects an outdated reference in 
Sec.  738.2(a) for Category 9 of the Commerce Control List in 
Supplement No. 1 to Part 774. The reference in Sec.  738.2 paragraph 
(a) refers to the old name of Category 9 (Propulsion Systems, Space 
Vehicles and Related Equipment), which was used in the EAR until 
November 4, 2007, but is no longer used. The final rule corrects the 
reference to use the current name of Category 9 (Aerospace and 
Propulsion).
    Section 740.20(d)(2). BIS is correcting a provision of the EAR that 
was previously amended by two final rules appearing in the Federal 
Register on June 5, 2014 (79 FR 32612) and on May 13, 2014 (79 FR 
27417), and was again amended in an August 18, 2014 (79 FR 48660) final 
rule that made correcting amendments to these two final rules. One 
instruction in the August 18, 2014 rule was incorrect because it did 
not specify that the two sentences at the end of paragraph (d)(2) to be 
revised were at the end of the introductory text of paragraph (d)(2), 
which resulted in the wrong two sentences being revised. Because of the 
incorrect instruction, the two sentences in paragraph (d)(2)(viii) were 
revised instead of the intended last two sentences of the introductory 
text of paragraph (d)(2). This final rule corrects paragraph (d)(2) to 
accurately reflect the revision intended by the August 18 rule and to 
add back into the EAR paragraph (d)(2)(viii) that was not intended to 
be revised or removed in the August 18 rule.
    Section 744.1(a). In Sec.  744.1 (General Provisions) under 
paragraph (a) that describes the scope of part 744, this final rule 
adds two sentences at the end of paragraph (a) to provide references to 
Sec. Sec.  744.21 and 744.22, including providing brief descriptions 
regarding the scope of these two sections of part 744. This 
clarification was not in response to any particular rule, but rather 
was identified by BIS as a helpful conforming change to this section of 
part 744 to make the public better aware of the scope of this part of 
the EAR.
    Section 744.21(e) (License review standards). This final rule 
removes the term ``transfer'' and adds in its place the more specific 
and intended term ``transfer (in-country)'' in three places in 
paragraph (e). The scope of the license requirements under this section 
extends to exports, reexports and transfers (in-country), so this 
change to paragraph (e) was needed to conform to the other parts of 
this section.
    Section 744.21(f) (Military end use). This final rule reinserts 
text in Sec.  744.21(f) that was inadvertently removed in an earlier 
rule. Specifically, the April 16, 2013 (78 FR 22660) rule inadvertently 
deleted the last sentence in paragraph (f), but BIS did not realize the 
sentence had been deleted until reviewing the incorporation for the 
September 17, 2014 (79 FR 55608) rule described in the last paragraph. 
This final rule corrects the deletion by adding the inadvertently 
deleted sentence back to the end of paragraph (f), which previously 
stated, ```military end use' also means deployment of items classified 
under ECCN 9A991 as set forth in Supplement No. 2 to Part 744.''
    ECCN 0A617. This final rule revises ECCN 0A617 to remove the term 
``not'' in the Related Controls paragraph (9) in the List of Items 
Controlled section because it is not needed and creates potential 
confusion. Related Control paragraph (9), which provides a related 
control reference for certain fuel cells includes a reference to 
defense articles ``not'' on the USML. However, because all defense 
articles are on the USML, the inclusion of the term ``not'' before the 
phrase ``on the USML'' was incorrect and caused confusion for certain 
members of the public because they were aware that all defense articles 
are

[[Page 77864]]

on the USML, so the Related Controls paragraph was inconsistent with 
their understanding of the USML and CCL. These people, who contacted 
BIS, correctly noted that the inclusion of the term ``not'' was not 
needed or intended under this Related Controls paragraph.
    ECCN 0A919. This final rule corrects ECCN 0A919 to remove the 
``UN'' control from the Reason for Control paragraph in the License 
Requirements section. An earlier rule published in July 23, 2012 (77 FR 
42973) removed the UN Control from the ``Control(s)'' paragraph in the 
License Requirement section. Although the intent of the amendatory 
instruction pertaining to that ECCN entry was that all references to 
the UN control in the License Requirement section were to be removed, 
the instruction did not explicitly reference the Reasons for Control 
paragraph. Consequently, the reference to ``UN'' remained in the Reason 
for Control paragraph of the ECCN, notwithstanding the fact that the 
ECCN was not controlled for UN reasons as of July 23, 2012.
    ECCNs 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999. To 
conform to the Reason for Control paragraph in new ECCN 0A998 that 
includes a reference to ``Foreign policy,'' this rule corrects the 
Reason for Control paragraph of these other seven ECCNs included in the 
August 6, 2014 (79 FR 45675) rule to adopt a common way of referencing 
the license requirements in Sec.  746.5. The Reason for Control 
paragraph in 8D999 included the term ``N/A,'' so this rule also 
corrects that Reason for Control paragraph by removing ``N/A'' and 
adding in its place ``Foreign policy,'' so all eight of the ECCNs that 
reference Sec.  746.5 will use the same way to reference that Reason 
for Control.
    ECCN 2B352. This final rule revises the introductory text of items 
paragraph f in the List of Items Controlled section of ECCN 2B352 to 
correct a misspelled term. This final rule removes the incorrect term 
``flowing'' and adds in its place the correct term ``following.''
    Category 5 Part 2--``Information Security.'' Category 5 Part 2 is 
amended by revising paragraph b of Note 3. This amendment was 
inadvertently omitted from the 2013 Wassenaar Arrangement 
Implementation rule published on August 4, 2014 (79 FR 45302), although 
the amendment was described in the preamble. `Executable software' is 
added to Note 3, as well as a Technical Note to define `executable 
software' as ``software'' in executable form, from an existing hardware 
component excluded from 5A002 by the Cryptography Note. A Note is also 
added after the Technical Note that states, ```Executable software' 
does not include complete binary images of the ``software'' running on 
an end-item.''
    ECCN 5A002. This final rule revises the Related Controls paragraph 
(1) in the List of Items Controlled section to remove redundant text in 
paragraph (1) that repeats the text of Related Controls paragraph (2) 
and (3) in the regulations, but is not intended in ECCN 5A002. 
Therefore, this final rule removes that redundant text from Related 
Controls paragraph (1). This final rule also revises the ``items'' 
paragraph in the List of Items Controlled section of ECCN 5A002 to 
reinsert paragraph (a)(1) a. to 5A002 Note (a). This paragraph (a)(1) 
a. to 5A002 Note (a) was not intended to be removed from the EAR. 
However, the paragraph no longer appears in the regulations, so this 
final rule adds this paragraph back into the 5A002 Note (a). This final 
rule also makes two other revisions to the ``items'' paragraph of 5A002 
to make corrections to the regulations for inconsistencies that BIS 
identified between the regulations and past EAR rulemakings. 
Specifically, this final rule revises 5A002 Note (d) Technical Note to 
delete the phrase ``the term,'' capitalize the term ``Money 
transactions'' and add the phrase ``in 5A002 Note (d).'' This final 
rule also revises ``items'' paragraph (b) in the List of Items 
Controlled section by reinserting the text of ``items'' paragraph (b) 
that was not intended to be revised in the regulations, but was 
inadvertently revised when the text for another ECCN was revised. 
Specifically, when ``items'' paragraph (b) was revised in ECCN 5A992 in 
the October 4, 2013 rule (78 FR 61874) the same revision was made in 
the regulations to ECCN 5A002.b, although the October 4, 2013 rule did 
not revise ECCN 5A002.b.
    ECCN 5E002. This final rule makes a correction to the placement of 
the Related Definitions paragraph in ECCN 5E002 to ensure consistency 
between the regulations and past rulemakings. This final rule removes 
the Related Definitions paragraph in the License Requirements section 
of 5E002 and adds that same Related Definitions paragraph after the 
Related Controls paragraph in the List of Items Controlled section. The 
text of the Related Controls paragraph is not changed, only the 
paragraph's location in the ECCN is changed for consistency with where 
Related Controls paragraphs appear in ECCNs on the CCL.
    ECCN 6A998. This final rule revises the heading of ECCN 6A998 to 
remove the word major and add quotation marks around the defined term 
``component.'' This change is made for consistency with a past 
rulemaking that had made this same change to 6A998.
    ECCN 8A992. This final rule removes the UN control that was 
inadvertently added back into 8A992 in a rule published August 6, 2014 
(79 FR 45675). The UN control had been recently removed in a rulemaking 
published on June 4, 2014 (79 FR 32612), but the August 6, 2014 rule 
did not take the removal into account and added the UN control back 
into this ECCN.
    ECCN 9A012. This final rule makes a correction to List of Items 
Controlled section of ECCN 9A012 to add an ``items'' paragraph heading. 
The ``items'' paragraph heading was inadvertently removed in a previous 
rulemaking, so this rule corrects this error by adding in the intended 
``items'' paragraph heading in the List of Items Controlled section.
    ECCN 9A610. This final rule revises the items paragraph y.30 in the 
List of Items Controlled section of ECCN 9A610 to clarify the meaning 
of the exclusion from this paragraph. Specifically, this final rule 
moves the placement of the phrase ``other than electronic items or 
navigation equipment'' and sets these exclusion criteria from 
9A610.y.30 off with commas to make it clearer that commodities 
described in this phrase are not classified under 9A610.y.30, but 
rather most likely under 9A610.x.
    ECCN 9A991. This final rule revises ECCN 9A991.d to remove the 
phrase ``subject to the controls of 9A991.a or .b.'' This clarification 
is made because 9A991.d is intended to be a ``specially designed'' 
catch-all for any ``parts'' or ``components'' ``specially designed'' 
for aircraft, not elsewhere specified (n.e.s.) and is not intended to 
be limited to those ``aircraft'' identified in 9A991.d (i.e., 9A991.a 
or .b). Prior to reviewing 9A991, the analysis of the CCL must include 
reviewing the ``600 series,'' which includes an analysis of ECCN 9A610 
(See Commerce Control List Order of Review in Supplement No. 4 to part 
774). This clarification in the text of 9A991.d in no way changes the 
scope of any other ECCN on the CCL and is only intended to clarify that 
when reviewing the CCL for an aircraft part or component n.e.s on the 
CCL, an analysis of 9A991 must be conducted before determining an 
aircraft part or component is designated as EAR99.
    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014),

[[Page 77865]]

has continued the Export Administration Regulations in effect under the 
International Emergency Economic Powers Act. BIS continues to carry out 
the provisions of the Export Administration Act, as appropriate and to 
the extent permitted by law, pursuant to Executive Order 13222.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
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, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This final rule, which is a consolidation of corrections 
and clarifications of final rules published between November 5, 2007 
and October 14, 2014, as well other corrections and clarifications to 
the EAR to ensure consistency between the regulations and past EAR 
rulemakings, has been determined to be not significant for purposes of 
Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor be subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden estimate of 
43.8 minutes for a manual or electronic submission. Total burden hours 
associated with the PRA and OMB control number 0694-0088 are not 
expected to increase as a result of this rule. You may 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 email to 
[email protected], or by fax to (202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The Department 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 either unnecessary or contrary to the public interest. The 
following revisions are non-substantive or are limited to ensure 
consistency with past rulemakings, and thus prior notice and the 
opportunity for public comment is unnecessary. Sections 740.20(d)(2), 
744.21(f), Category 5 Part 2--``Information Security'' for paragraph b 
of Note 3, and ECCNs 0A919, 5A002, 5E002 and 9A012 were revised to make 
corrections to the EAR that resulted from mistakes or other ambiguity 
in amendatory instructions in past rulemakings. Section 738.2(a) was 
revised to correct an outdated EAR cross reference, and ECCNs 6A998 and 
8A992 were revised to reinsert text that was inadvertently removed or 
revised in a subsequent rulemaking. Section 732.1(d)(1)(v) and ECCNs 
0A617, 1C992, 2B352, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 were 
revised to correct typographical errors or to make other non-
substantive corrections or clarifications to the EAR text. In addition 
to the revisions above, BIS makes changes to its regulations to provide 
guidance on existing interpretations of current EAR provisions, and 
thus prior notice and the opportunity for public comment is contrary to 
the public interest. These changes include the revisions to General 
Order No. 5 in Supplement No. 1 to part 736, Sec. Sec.  744.1(a) and 
744.21(e) and ECCNs 9A610 and 9A991. These revisions are important to 
get in place as soon as possible so the public will be aware of the 
correct text and meaning of current EAR provisions.
    BIS finds good cause to waive the 30-day delay in effectiveness 
under 5 U.S.C. 553(d)(3). As mentioned previously, the revisions made 
by this rule consist of both technical corrections and clarifications 
that need to be in place as soon as possible to avoid confusion by the 
public regarding the intent and meaning of changes to the EAR.
    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for these amendments by 5 
U.S.C. 553, or by any other law, the analytical requirements of the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not applicable.

List of Subjects

15 CFR Parts 732 and 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Parts 736 and 738

    Exports.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 732, 736, 738, 740, 744, 774 of the Export 
Administration Regulations (15 CFR parts 730 through 774) are revised 
to read as follows:

PART 732--[AMENDED]

0
1. The authority citation for 15 CFR part 732 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 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 7, 2014, 79 FR 
46959 (August 11, 2014).


Sec.  732.1  [Amended]

0
2. Section 732.1 is amended in paragraph (d)(1)(v) by removing the 
phrase ``end-user or end-users'' and adding in its place the phrase 
``end uses or end users''.

PART 736--[AMENDED]

0
3. The authority citation for 15 CFR part 736 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. 2151 note; 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; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., 
p. 168; Notice of May 7, 2014, 79 FR 26589 (May 9, 2014); Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of November 7, 
2014, 79 FR 67035 (November 12, 2014).


0
4. Supplement No. 1 to part 736 is amended by revising paragraph (e)(3) 
to read as follows:

SUPPLEMENT NO. 1 TO PART 736--GENERAL ORDERS

* * * * *
    (e) * * *
* * * * *
    (3) Prior commodity jurisdiction determinations. If the U.S. State 
Department has previously determined that an item is not subject to the 
jurisdiction of the ITAR and the item was not listed in a then existing 
``018'' series ECCN (for purposes of the ``600 series'' ECCNs) or in a 
then existing ECCN 9A004.b or related software or technology ECCN (for 
purposes of the

[[Page 77866]]

9x515 ECCNs), then the item is per se not within the scope of a ``600 
series'' ECCN or a 9x515 ECCN. If the item was not listed elsewhere on 
the CCL at the time of such determination (i.e., the item was 
designated EAR99), the item shall remain designated as EAR99 unless 
specifically enumerated by BIS or DDTC in an amendment to the CCL or to 
the USML, respectively.
* * * * *

PART 738--[AMENDED]

0
5. 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 7, 2014, 79 FR 46959 (August 11, 2014).


Sec.  738.2  [Amended]

0
6. Section 738.2 is amended in paragraph (a) by removing the phrase 
``Propulsion Systems, Space Vehicles and Related Equipment'' and adding 
in its place the phrase ``Aerospace and Propulsion''.

PART 740--[AMENDED]

0
7. 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 7, 2014, 79 FR 46959 (August 11, 2014).


0
8. Section 740.20 is amended:
0
a. By revising the last two sentences of the introductory text of 
paragraph (d)(2) and transferring the bracketed text between those two 
sentences to the end of the introductory text;
0
b. By removing the last sentence of paragraph (d)(2)(vii)(C) and the 
bracketed text that follows it; and
0
c. By adding paragraph (d)(2)(viii).
    The revisions and additions read as follows:


Sec.  740.20  License Exception Strategic Trade Authorization (STA).

* * * * *
    (d) * * *
* * * * *
    (2) Prior Consignee Statement. * * * In addition, paragraph 
(d)(2)(vii) is required for all transactions in ``600 series'' items 
and paragraph (viii) of this section is required for transactions in 
``600 series'' items if the consignee is not the government of a 
country listed in Country Group A:5 (See Supplement No. 1 to part 740 
of the EAR). Paragraph (d)(2)(viii) is also required for transactions 
including 9x515 items.
    [INSERT NAME OF CONSIGNEE]:
* * * * *
    (viii) Agrees to permit a U.S. Government end-use check with 
respect to the items.
    [INSERT NAME AND TITLE OF PERSON SIGNING THIS DOCUMENT, AND DATE 
DOCUMENT IS SIGNED].
* * * * *

PART 744--[AMENDED]

0
9. The authority citation for 15 CFR part 744 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; 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. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of January 21, 2014, 79 FR 3721 
(January 22, 2014); Notice of August 7, 2014, 79 FR 46959 (August 
11, 2014); Notice of September 17, 2014, 79 FR 56475 (September 19, 
2014); Notice of November 7, 2014, 79 FR 67035 (November 12, 2014).


0
10. Section 744.1 is amended by adding two sentences to the end of 
paragraph (a)(1) to read as follows:


Sec.  744.1  General provisions.

    (a)(1) * * * Section 744.21 imposes restrictions for exports, 
reexports and transfers (in-country) of specified items for certain 
`military end uses' in the People's Republic of China (PRC) or for a 
`military end use' or `military end user' in Russia or Venezuela. 
Section 744.22 imposes restrictions on exports, reexports and transfers 
to persons whose property and interests in property are blocked 
pursuant to Executive Orders 13310, 13448, or 13464.
* * * * *
0
11. Section 744.21 is amended:
0
a. By removing the term ``transfer'' wherever it appears and adding in 
its place the term ``transfer (in-country)'' in paragraph (e)(1); and
0
b. By adding a sentence to the end of paragraph (f).
    The addition reads as follows:


Sec.  744.21  Restrictions on Certain `Military end uses' in the 
People's Republic of China (PRC) or for a `Military end use' or 
`Military end user' in Russia or Venezuela.

* * * * *
    (f) * * * `Military end use' also means deployment of items 
classified under ECCN 9A991 as set forth in Supplement No. 2 to Part 
744.
* * * * *

PART 774--[AMENDED]

0
12. 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 7, 2014, 79 FR 46959 (August 11, 2014).

Supplement No. 1 to Part 774 [Amended]

0
13. In Supplement No. 1 to part 774:
0
a. Category 0, Export Control Classification Number (ECCN) 0A617 is 
amended by removing the term ``not'' from Related Controls paragraph 
(9) in the List of Items Controlled section.
0
b. Category 0, Export Control Classification Number (ECCN) 0A919 is 
amended by removing the term ``UN'' from the Reason for Control 
paragraph in the License Requirements section.
0
c. Export Control Classification Numbers (ECCN) 1C992, 3A229, 3A231, 
3A232, and 6A991 are amended by adding the term ``Foreign policy'' at 
the end of the Reason for Control paragraphs in the License 
Requirements sections.
0
d. Category 2, Export Control Classification Number (ECCN) 2B352 is 
amended by removing the term ``flowing'' and adding in its place the 
term ``following'' in the introductory text of Items paragraph f in the 
List of Items Controlled section.

0
14. In Supplement No. 1 to Part 774, Category 5, Part 2--``Information 
Security'', is amended by revising paragraph b. of Note 3 to read as 
follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

CATEGORY 5--TELECOMMUNICATIONS AND ``INFORMATION SECURITY''

* * * * *

Part 2--``INFORMATION SECURITY''

* * * * *
    Note 3: * * *
* * * * *
    b. Hardware components or `executable software', of existing items

[[Page 77867]]

described in paragraph a. of this Note, that have been designed for 
these existing items, and meeting all of the following:
    1. ``Information security'' is not the primary function or set of 
functions of the component or `executable software';
    2. The component or `executable software' does not change any 
cryptographic functionality of the existing items, or add new 
cryptographic functionality to the existing items;
    3. The feature set of the component or `executable software' is 
fixed and is not designed or modified to customer specification; and
    4. When necessary, as determined by the appropriate authority in 
the exporter's country, details of the component or `executable 
software', and details of relevant end-items are accessible and will be 
provided to the authority upon request, in order to ascertain 
compliance with conditions described above.

     Technical Note: For the purpose of the Cryptography Note, 
`executable software' means ``software'' in executable form, from an 
existing hardware component excluded from 5A002 by the Cryptography 
Note.


    Note: `Executable software' does not include complete binary 
images of the ``software'' running on an end-item.

* * * * *

0
15. In Supplement No. 1 to Part 774, Category 5, Part 2--``Information 
Security'', Export Control Classification Number (ECCN) 5A002 is 
amended:
0
a. By revising Related Controls paragraph (1) in the List of Items 
Controlled section;
0
b. By adding paragraph (a)(1) a. to 5A002 Note (a);
0
c. By revising 5A002 Note (d) Technical Note; and
0
d. By revising Items paragraph b. in the List of Items Controlled 
section.

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

5A002 ``Information security'' systems, equipment and ``components'' 
therefor, as follows (see List of Items Controlled)

* * * * *

List of Items Controlled

    Related Controls: (1) ECCN 5A002.a controls ``components'' 
providing the means or functions necessary for ``information 
security.'' All such ``components'' are presumptively ``specially 
designed'' and controlled by 5A002.a. * * *
    Items:
    Note: * * *
    (a) * * *
    (1) * * *
    a. The cryptographic capability is restricted for use in equipment 
or systems excluded from 5A002 by Note 4 in Category 5--Part 2 or 
entries (b) to (i) of this Note, and cannot be reprogrammed for any 
other use; or
* * * * *
    (d) * * *

    Technical Note: `Money transactions' in 5A002 Note (d) includes 
the collection and settlement of fares or credit functions.

* * * * *
    b. Systems, equipment, application specific ``electronic 
assemblies'', modules and integrated circuits, designed or modified to 
enable an item to achieve or exceed the controlled performance levels 
for functionality specified by 5A002.a that would not otherwise be 
enabled.

0
16. In Supplement No. 1 to Part 774, Category 5, Part 2--``Information 
Security'', Export Control Classification Number (ECCN) 5E002 is 
amended by removing the Related Definitions paragraph in the License 
Requirements section and adding a Related Definitions paragraph after 
the Related Controls paragraph in the List of Items Controlled section 
to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

5E002 ``Technology'' as follows (see List of Items Controlled)

* * * * *

List of Items Controlled

Related Controls: * * *

Related Definitions: N/A

* * * * *

0
17. In Supplement No. 1 to part 774, Category 6--Sensors and Lasers, 
Export Control Classification Number (ECCN) 6A998 is amended by 
revising the heading to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

6A998 Radar systems, equipment and major ``components,'' n.e.s., and 
``specially designed'' ``components'' therefor, as follows (see List of 
Items Controlled).

* * * * *

 Supplement No. 1 to Part 774 [Amended]

0
18. In Supplement No. 1 to part 774, Category 8-Marine, Export Control 
Classification Number (ECCN) 8A992 is amended:
0
a. By removing the term ``UN'' from the Reason for Control paragraph 
and removing the UN entry in the License Requirements table; and
0
b. By adding the term ``Foreign policy'' at the end of the Reason for 
Control paragraph in the License Requirements section.

Supplement No. 1 to Part 774 [Amended]

0
19. In Supplement No. 1 to part 774, Category 8--Marine, Export Control 
Classification Number (ECCN) 8D999 is amended by removing the term ``N/
A'' adding in its place the term ``Foreign policy'' at the end of the 
Reason for Control paragraph in the License Requirements section.

Supplement No. 1 to Part 774 [Amended]

0
20. In Supplement No. 1 to part 774, Category 9--Aerospace and 
Propulsion, Export Control Classification Number (ECCN) 9A012 is 
amended by adding undesignated paragraph heading ``Items:'' between the 
Related Definitions paragraph and paragraph a. in the List of Items 
Controlled section.

0
21. In Supplement No. 1 to part 774, Category 9--Aerospace and 
Propulsion, Export Control Classification Number (ECCN) 9A610 is 
amended by revising Items paragraph y.30 in the List of Items 
Controlled section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

9A610 Military aircraft and related commodities, other than those 
enumerated in 9A991.a (see List of Items Controlled).

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    y.30. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments,'' other than electronic items or navigation equipment, 
for use in or with a commodity controlled by ECCN 9A610.h.

0
22. In Supplement No. 1 to part 774, Category 9--Aerospace and 
Propulsion, Export Control Classification Number (ECCN) 9A991 is 
amended by revising Items paragraph d. in the List of Items Controlled 
section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

[[Page 77868]]

9A991 ``Aircraft,'' n.e.s., and gas turbine engines not controlled by 
9A001 or 9A101 and ``parts'' and ``components,'' n.e.s. (see List of 
Items Controlled).

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    d. ``Parts'' and ``components,'' ``specially designed'' for 
``aircraft,'' n.e.s.
* * * * *

    Dated: December 18, 2014.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2014-30019 Filed 12-24-14; 8:45 am]
BILLING CODE 3510-33-P