[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)]
[Proposed Rules]
[Pages 34562-34572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-14474]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 120105019-5328-01]
RIN 0694-AF52


Commerce Control List: Addition of Items Determined to No Longer 
Warrant Control Under United States Munitions List Category XIV 
(Toxicological Agents) or Category XVIII (Directed Energy Weapons)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Proposed rule.

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SUMMARY: This proposed rule describes how articles the President 
determines no longer warrant control under Category XIV (Toxicological 
Agents, Including Chemical Agents, Biological Agents, and Associated 
Equipment) or Category XVIII (Directed Energy Weapons) of the United 
States Munitions List (USML) would be controlled under the Commerce 
Control List (CCL). The affected Category XIV articles consist 
primarily of dissemination, detection and protection ``equipment'' and 
related articles and would be controlled under new Export Control 
Classification Numbers (ECCNs) 1A607, 1B607, 1C607, 1D607, and 1E607, 
as proposed by this rule. The affected Category XVIII articles consist 
primarily of tooling, production ``equipment,'' test and evaluation 
``equipment,'' test models and related articles and would be controlled 
under new ECCNs 6B619, 6D619 and 6E619, as proposed by this rule.
    This rule is one in a series of proposed rules describing how 
various types of articles that the President determines no longer 
warrant control on the USML, as part of the Administration's Export 
Control Reform Initiative, would be controlled on the CCL in accordance 
with the requirements of the Export Administration Regulations (EAR).
    This proposed rule is being published by the Bureau of Industry and 
Security (BIS) in conjunction with a proposed rule from the Department 
of State, Directorate of Defense Trade Controls, which would amend the 
list of articles controlled by USML Categories XIV and XVIII. The 
citations in this BIS proposed rule to USML Categories XIV and XVIII 
reflect the proposed amendments contained in the Department of State's 
rule. The revisions proposed by BIS in this rule are part of Commerce's 
retrospective regulatory review plan under Executive Order 13563 
completed in August 2011.

DATES: Comments must be received by August 17, 2015.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
The identification number for this rulemaking is BIS-2015-0023.
     By email directly to [email protected]. Include 
RIN 0694-AF52 in the subject line.
     By mail or delivery to Regulatory Policy Division, Bureau 
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th 
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN 
0694-AF52.

FOR FURTHER INFORMATION CONTACT: For questions regarding dissemination, 
detection and protection ``equipment'' and related articles that would 
be controlled under new ECCNs 1A607, 1B607, 1C607, 1D607, and 1E607, 
contact Richard P. Duncan, Ph.D., Director, Chemical and Biological 
Controls Division, Office of Nonproliferation and Treaty Compliance, 
Bureau of Industry and Security, telephone: (202) 482-3343, email: 
[email protected].
    For questions regarding tooling, production ``equipment,'' test and 
evaluation ``equipment'' and test models that would be controlled under 
new ECCNs 6B619, 6D619 and 6E619, contact Mark Jaso, Sensors and 
Aviation Division, Office of National Security & Technology Transfer 
Controls, Bureau of Industry and Security, telephone: (202)

[[Page 34563]]

482-0987, email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    This proposed rule is published by the Bureau of Industry and 
Security (BIS) as part of the Administration's Export Control Reform 
(ECR) Initiative, the object of which is to protect and enhance U.S. 
national security interests. The implementation of the ECR includes 
amendment of the International Traffic in Arms Regulations (ITAR) and 
its U.S. Munitions List (USML), so that they control only those items 
that provide the United States with a critical military or intelligence 
advantage or otherwise warrant such controls, and amendment of the 
Export Administration Regulations (EAR) to control military items that 
do not warrant USML controls. This series of amendments to the ITAR and 
the EAR will reform the U.S. export control system to enhance our 
national security by: (i) improving the interoperability of U.S. 
military forces with allied countries; (ii) strengthening the U.S. 
industrial base by, among other things, reducing incentives for foreign 
manufacturers to design out and avoid U.S.-origin content and services; 
and (iii) allowing export control officials to focus government 
resources on transactions that pose greater national security, foreign 
policy, or proliferation concerns than those involving our NATO allies 
and other multi-regime partners.
    Following the structure set forth in the final rule titled 
``Revisions to the Export Administration Regulations: Initial 
Implementation of Export Control Reform'' (78 FR 22660, April 16, 2013) 
(hereinafter the ``April 16 (initial implementation) rule''), this 
proposed rule describes BIS's proposal for controlling under the EAR's 
CCL certain dissemination, detection and protection ``equipment'' and 
related articles currently controlled under USML Category XIV in the 
ITAR and certain tooling, production ``equipment,'' test and evaluation 
``equipment,'' test models and related articles currently controlled 
under USML Category XVIII of the ITAR.
    In the April 16 (initial implementation) rule, BIS created a series 
of new ECCNs to control items that would be removed from the USML and 
similar items from the Wassenaar Arrangement on Export Controls for 
Conventional Arms and Dual Use Goods and Technologies Munitions List 
(Wassenaar Arrangement Munitions List or WAML) that were already 
controlled elsewhere on the CCL. That final rule referred to this 
series of new ECCNs as the ``600 series,'' because the third character 
in each of these new ECCNs is the number ``6.'' The first two 
characters of the ``600 series'' ECCNs serve the same function as any 
other ECCN as described in Sec.  738.2 of the EAR. The first character 
is a number, within the range of 0 through 9, that identifies the 
Category on the CCL in which the ECCN is located. The second character 
is a letter, within the range of A through E, that identifies the 
product group in a CCL Category. As indicated above, the third 
character in the ``600 series'' ECCNs is the number ``6,'' which 
distinguishes the items controlled under this series of ECCNs from 
items identified under other ECCNs on the CCL. With few exceptions, the 
final two characters identify the WAML category that covers items that 
are the same or similar to items in a particular ``600 series'' ECCN.
    Pursuant to section 38(f) of the Arms Export Control Act (AECA), 
the President is obligated to review the USML ``to determine what 
items, if any, no longer warrant export controls under'' the AECA. The 
President must report the results of the review to Congress and wait 30 
days before removing any such items from the USML. The report must 
``describe the nature of any controls to be imposed on that item under 
any other provision of law.'' 22 U.S. C. 2778(f)(1).
    The changes proposed in this rule and the State Department's 
companion rule to Categories XIV and XVIII of the USML are based on a 
review of these USML Categories by the Defense Department, which worked 
with the Departments of State and Commerce in preparing the proposed 
amendments. The review focused on identifying the types of articles 
that are now controlled by USML Category XIV or Category XVIII that are 
either: (i) inherently military and otherwise warrant control on the 
USML; or (ii) of a type common to civil applications, possessing 
parameters or characteristics that provide a critical military or 
intelligence advantage to the United States, and are almost exclusively 
available from the United States. If an article was found to satisfy 
either or both of these criteria, the article remains on the USML. If 
an article was found not to satisfy either criterion, but is 
nonetheless a type of article that is ``specially designed'' for 
military applications, then, generally, it is identified in one of the 
new ``600 series'' ECCNs proposed by this rule.
    All references to the USML in this rule are to the list of defense 
articles that are controlled for purposes of export, temporary import, 
or brokering pursuant to the ITAR, and not to the list of defense 
articles on the United States Munitions Import List (USMIL) that are 
controlled by the Bureau of Alcohol, Tobacco, Firearms and Explosives 
(ATF) for purposes of permanent import under its regulations at 27 CFR 
part 447. Pursuant to section 38(a)(1) of the AECA, all defense 
articles controlled for export or import, or that are subject to 
brokering controls, are part of the ``USML'' under the AECA. For the 
sake of clarity, references to the USMIL are to the list of defense 
articles controlled by ATF for purposes of permanent import. All 
defense articles described in the USMIL or the USML are subject to the 
brokering controls administered by the U.S. Department of State in part 
129 of the ITAR. The transfer of defense articles from the ITAR's USML 
to the EAR's CCL, for purposes of export controls, does not affect the 
list of defense articles that are controlled on the USMIL under the 
AECA for purposes of permanent import or brokering controls.
    On January 18, 2011, the President issued Executive Order 13563, 
affirming general principles of regulation and directing government 
agencies to conduct retrospective reviews of existing regulations. The 
revisions proposed in this rule are part of Commerce's retrospective 
regulatory review plan under Executive Order 13563. Commerce's full 
plan, completed in August 2011, can be accessed at: http://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.

Changes Proposed by This Rule to Controls on Certain Dissemination, 
Detection and Protection ``Equipment'' and Related Items Currently 
Controlled Under USML Category XIV

    This proposed rule would create five new ``600 series'' ECCNs in 
CCL Category 1 (ECCNs 1A607, 1B607, 1C607, 1D607, and 1E607) that would 
clarify the EAR controls that apply to certain dissemination, detection 
and protection ``equipment'' and related items the President determines 
no longer warrant control under USML Category XIV. Terms such as 
``part,'' ``component'' ``accessories,'' ``attachments,'' and 
``specially designed'' are applied in the same manner in this rule as 
those terms are defined in Section 772.1 of the EAR. In addition, to 
assist exporters in determining the control status of their items, a 
``Specially Designed'' Decision Tool and a CCL Order of Review Decision 
Tool are available on the BIS

[[Page 34564]]

Web site at: http://www.bis.doc.gov/index.php/decision-tree-tools.
    New ECCN 1A607: Military dissemination ``equipment'' for riot 
control agents, military detection and protection ``equipment'' for 
toxicological agents (including chemical, biological, and riot control 
agents), and related commodities.
    In proposed ECCN 1A607, paragraphs .a through .d, paragraph .i, and 
paragraphs .l through .w would be reserved. Paragraph .e of ECCN 1A607 
would control ``equipment'' ``specially designed'' for military use and 
for the dissemination of any of the riot control agents controlled in 
ECCN 1C607.a. Paragraph .f of ECCN 1A607 would control protection 
``equipment'' ``specially designed'' for military use and for defense 
against either materials controlled by USML Category XIV(a) or (b) or 
any of the riot control agents in new ECCN 1C607.a. Paragraph .g of 
ECCN 1A607 would control decontamination ``equipment'' not controlled 
by USML Category XIV(f) that is ``specially designed'' for military use 
and for the decontamination of objects contaminated with materials 
controlled by USML Category XIV(a) or (b). Paragraph .h would control 
``equipment'' not controlled by USML Category XIV(f) that is 
``specially designed'' for military use and for the detection or 
identification of either materials specified by USML Category XIV(a) or 
(b) or riot control agents controlled by proposed new ECCN 1C607.a. 
Paragraph .j would control ``equipment'' ``specially designed'' to: (i) 
Interface with a detector, shelter, vehicle, vessel, or aircraft 
controlled by the USML or a ``600 series'' ECCN; and (ii) collect and 
process samples of articles controlled in USML Category XIV(a) or (b). 
Paragraph .k would control medical countermeasures that are ``specially 
designed'' for military use (including pre- and post- treatments, 
antidotes, and medical diagnostics) and ``specially designed'' to 
counter chemical agents controlled by USML Category XIV(a). Paragraph 
.x would control ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' that are ``specially designed'' for a commodity 
controlled under ECCN 1A607.e, .f, .g, .or .j or a defense article 
controlled in USML Category XIV(f) and that are not enumerated or 
otherwise described elsewhere in the USML.
    New ECCN 1B607: Military test, inspection, and production 
``equipment'' and related commodities ``specially designed'' for the 
``development,'' ``production,'' repair, overhaul, or refurbishing of 
commodities identified in ECCN 1A607 or 1C607, or defense articles 
enumerated or otherwise described in USML Category XIV.
    In proposed ECCN 1B607, paragraph .a would control ``equipment,'' 
not including incinerators, that is ``specially designed'' for the 
destruction of chemical agents controlled by USML Category XIV(a). 
Paragraph .b of ECCN 1B607 would control test facilities and 
``equipment'' that are ``specially designed'' for military 
certification, qualification, or testing of commodities controlled by 
new ECCN 1A607.e, .f, .g, or .j or by USML Category XIV(f), except for 
XIV(f)(1). Paragraph .c would control tooling and ``equipment'' 
``specially designed'' for the ``development,'' ``production,'' repair, 
overhaul, or refurbishing of commodities controlled under new ECCN 
1A607.e, .f, .g, or .j or USML Category XIV(f). Paragraphs .d through 
.w would be reserved. Paragraph .x would control ``parts,'' 
``components,'' ``accessories,'' and ``attachments,'' not enumerated or 
otherwise described elsewhere in the USML, that are ``specially 
designed'' for a commodity controlled by ECCN 1B607.b or .c or for a 
defense article controlled by USML Category XIV(f).
    New ECCN 1C607: Tear gases, riot control agents and materials for 
the detection and decontamination of chemical warfare agents.
    Proposed ECCN 1C607.a would control specified tear gases and riot 
control agents. Paragraph .b of ECCN 1C607 would control 
``biopolymers'' not controlled by USML Category XIV(g) that are 
``specially designed'' or processed for the detection or identification 
of chemical warfare (CW) agents specified by USML Category XIV(a) and 
the cultures of specific cells used to produce them. Paragraph .c would 
control specified ``biocatalysts'' and biological systems that are not 
controlled by USML Category XIV(g) and are ``specially designed'' for 
the decontamination or degradation of CW agents specified by USML 
Category XIV(a). Paragraph .d would control chemical mixtures not 
controlled by USML Category XIV(f) that are ``specially designed'' for 
military use for the decontamination of objects contaminated with 
materials specified by USML Category XIV(a) or (b).
    New ECCN 1D607: ``Software'' ``specially designed'' for the 
``development,'' ``production,'' operation, or maintenance of items 
controlled by 1A607, 1B607 or 1C607.
    Proposed ECCN 1D607.a would control ``software'' ``specially 
designed'' for the ``development,'' ``production,'' operation, or 
maintenance of items controlled by ECCN 1A607, 1B607 or 1C607. 
Paragraph .b of ECCN 1D607 would be reserved.
    New ECCN 1E607: ``Technology'' ``required'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul, or refurbishing of items controlled by ECCN 1A607, 
1B607, 1C607, or 1D607.
    Proposed ECCN 1E607.a would control ``technology'' ``required'' for 
the ``development,'' ``production,'' operation, installation, 
maintenance, repair, overhaul, or refurbishing of items controlled by 
ECCN 1A607, 1B607, 1C607, or 1D607. Paragraph .b of ECCN 1E607 would be 
reserved.

Changes Proposed by This Rule to Controls on Certain Tooling, 
Production ``Equipment,'' Test and Evaluation ``Equipment'' and Test 
Models Currently Controlled Under USML Category XVIII

    This rule proposes to create three new ``600 series'' ECCNs in CCL 
Category 6 (ECCNs 6B619, 6D619 and 6E619) that would clarify the EAR 
controls that apply to certain tooling, production ``equipment,'' test 
and evaluation ``equipment,'' test models and related articles for 
Directed Energy Weapons (DEWs) that the President determines no longer 
warrant control under USML Category XVIII. Terms such as ``part,'' 
``component'' ``accessories,'' ``attachments,'' and ``specially 
designed'' are applied in the same manner in this rule as those terms 
are defined in Section 772.1 of the EAR. In addition, to assist 
exporters in determining the control status of their items, a 
``Specially Designed'' Decision Tool and a CCL Order of Review Decision 
Tool are available on the BIS Web site at: http://www.bis.doc.gov/index.php/decision-tree-tools.
    New ECCN 6B619: Test, inspection and production ``equipment,'' and 
related commodities, ``specially designed'' for the ``development,'' 
``production,'' repair, overhaul, or refurbishing of commodities 
enumerated or otherwise described in USML Category XVIII.
    Proposed ECCN 6B619.a would control tooling, templates, jigs, 
mandrels, molds, dies, fixtures, alignment mechanisms, and test 
``equipment'' not enumerated or otherwise described in USML Category 
XVIII and not elsewhere specified on the USML that are ``specially 
designed'' for the ``development,'' ``production,'' repair, overhaul, 
or refurbishing of commodities controlled by USML Category XVIII. The 
commodities that would be controlled under proposed ECCN 6B619.a are 
used to produce directed energy weapons (including

[[Page 34565]]

non-lethal directed energy weapons, such as active denial systems) and 
are similar to commodities that are in operation in a number of other 
countries, some of which are not allies of the United States or members 
of multinational export control regimes. Research and development is 
currently underway to determine the possible uses of such commodities 
(e.g., to protect the Earth from asteroids, or for perimeter security 
and crowd control). Possession of such commodities does not confer a 
significant military advantage on the United States and, therefore, the 
inclusion of such commodities on the CCL would be appropriate.
    Paragraphs .b through .w of ECCN 6B619 would be reserved. Paragraph 
.x would control ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control under paragraph .a of this ECCN and not enumerated or otherwise 
described in USML Category XVIII and not elsewhere specified on the 
USML.
    New ECCN 6D619: ``Software'' ``specially designed'' for the 
``development,'' ``production,'' operation or maintenance of 
commodities controlled by 6B619.
    Proposed ECCN 6D619 would control ``software'' ``specially 
designed'' for the ``development,'' ``production,'' operation or 
maintenance of commodities controlled by ECCN 6B619. Inclusion of this 
``software'' on the CCL would be appropriate, because it would be 
limited to ``software'' ``specially designed'' for ECCN 6B619 
commodities and would not include any ``software'' for items 
specifically enumerated or otherwise described on the USML.
    New ECCN 6E619: ``Technology'' ``required'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul or refurbishing of commodities controlled by 6B619 or 
``software'' controlled by 6D619.
    Proposed ECCN 6E619 would control ``technology'' ``required'' for 
the ``development,'' ``production,'' operation, installation, 
maintenance, repair, overhaul or refurbishing of commodities controlled 
by ECCN 6B619, or ``software'' controlled by 6D619. Inclusion of this 
``technology'' on the CCL would be appropriate, because it would be 
limited to ``technology'' ``required'' for ECCN 6B619 commodities and 
would not include any ``technology'' for items specifically enumerated 
or otherwise described on the USML.

Applicable Controls for the New ``600 Series'' ECCNs Proposed by This 
Rule.

    Pursuant to the framework established in the April 16 (initial 
implementation) rule, detection and protection ``equipment'' and 
related commodities classified under ECCN 1A607; related test, 
inspection and production ``equipment'' classified under ECCN 1B607; 
tear gases, riot control agents and related commodities classified 
under ECCN 1C607 (except for items listed in ECCN 1C607.a.10, .a.11, 
.a.12, or a.14, all of which are specifically excluded from WAML 
Category 7 by Note 1 thereto); related ``software'' classified under 
ECCN 1D607 (except ``software'' for items listed in ECCN 1C607.a.10, 
.a.11, .a.12, or a.14); and related ``technology'' classified under 
ECCN 1E607 (except ``technology'' for items listed in ECCN 1C607.a.10, 
.a.11, .a.12, or a.14 and 1D607 ``software'' therefor) would be subject 
to the licensing policies that apply to items controlled for national 
security (NS) reasons, as described in Sec.  742.4(b)(1)--specifically, 
NS Column 1 controls. The same level of NS controls and licensing 
policies also would apply to the items that would be controlled under 
the three new ECCNs (i.e., test, inspection, and production 
``equipment'' classified under ECCN 6B619; related ``software'' 
classified under ECCN 6D619; and related ``technology'' classified 
under ECCN 6E619) that this rule proposes to add to Category 6 of the 
CCL. In addition, all of the items that would be controlled under the 
new ECCNs proposed by this rule would be subject to the regional 
stability (RS) licensing policies set forth in Sec.  742.6(a)(1), i.e., 
RS Column 1, as well as antiterrorism (AT Column 1) and United Nations 
(UN) controls.
    Also, in accordance with Sec. Sec.  742.4(b)(1) and 742.6(b)(1) of 
the EAR, exports and reexports of ``600 series'' items controlled for 
NS or RS reasons will be reviewed consistent with United States arms 
embargo policies in Sec.  126.1 of the ITAR, if destined to a country 
listed in Country Group D:5 of Supplement No. 1 to part 740 of the EAR. 
All items controlled for NS or RS reasons, as set forth in this 
proposed rule, would be subject to this licensing policy.

Effects of This Proposed Rule

    BIS believes that the principal effect of this rule, when 
considered in the context of similar proposed rules being published as 
part of the ECR, will be to provide greater flexibility for exports and 
reexports to NATO member countries and other multiple-regime-member 
countries of items the President determines no longer warrant control 
on the USML. This greater flexibility would be in the form of: 
application of the EAR's de minimis threshold principle for items 
constituting less than a de minimis amount of controlled U.S.-origin 
content in foreign made items; availability of license exceptions, 
particularly License Exceptions ``Servicing and Replacement of Parts 
and Equipment'' (RPL) and ``Strategic Trade Authorization'' (STA); 
elimination of the requirements for manufacturing license agreements 
and technical assistance agreements in connection with exports of 
technology; and a reduction in, or elimination of, exporter and 
manufacturer registration requirements and associated registration 
fees. Some of these specific effects are discussed in more detail 
below.

De minimis

    The April 16 (initial implementation) rule imposed certain unique 
de minimis requirements on items controlled under the new ``600 
series'' ECCNs. Section 734.3 of the EAR provides, inter alia, that, 
under certain conditions, items made outside the United States that 
incorporate items subject to the EAR are not subject to the EAR if they 
do not exceed a ``de minimis'' percentage of controlled U.S. origin 
content. Under Section 734.4 of the EAR, as amended by the April 16 
(initial implementation) rule, there is no eligibility for de minimis 
treatment for a foreign-made item that incorporates U.S.-origin ``600 
series'' items when the foreign-made item is destined for a country 
that is subject to a U.S. arms embargo, i.e., a country listed in 
Country Group D:5 of Supplement No. 1 to part 740 of the EAR. Items 
controlled under the new ``600 series'' ECCNs proposed in this rule 
would be eligible for de minimis treatment under the EAR, provided that 
the foreign-made items into which they are incorporated are not 
destined for a country listed in Country Group D:5. In contrast, the 
AECA does not permit the ITAR to have a de minimis treatment for USML-
listed items, regardless of the significance or insignificance of the 
U.S.-origin content or the percentage of U.S.-origin content in the 
foreign-made item (i.e., USML-listed items remain subject to the ITAR 
when they are incorporated abroad into a foreign-made item, regardless 
of either of these factors).

Use of License Exceptions

    The April 16 (initial implementation) rule imposed certain 
restrictions on the use of license exceptions for items controlled 
under ``600 series'' ECCNs on

[[Page 34566]]

the CCL. The general restrictions that apply to the use of license 
exceptions for such items are described in Sec.  740.2(a)(13) of the 
EAR. The EAR provisions that describe the requirements specific to 
individual license exceptions contain additional restrictions on the 
use of license exceptions for such items.
    For example, this rule proposes limited License Exception STA 
availability for the new ``600 series'' ECCNs contained herein. None of 
the items that would be controlled under these proposed ECCNs would be 
eligible for the STA ``controls of lesser sensitivity'' described in 
Sec.  740.20(c)(2) of the EAR. Instead, STA eligibility for all such 
items would be limited to the destinations listed in Sec.  740.20(c)(1) 
of the EAR (i.e., Country Group A:5 destinations indicated in 
Supplement No. 1 to part 740 of the EAR). In addition, such items must 
be for: (1) ultimate end-use by a person of a type specified in Sec.  
740.20(b)(3)(ii) of the EAR (i.e., the armed forces, police, 
paramilitary, law enforcement, customs, correctional, fire, or a search 
and rescue agency of a government of one of the countries listed in 
Country Group A:5 or the United States Government); or (2) the 
``development,'' ``production,'' operation installation, maintenance, 
repair, overhaul, or refurbishing of an item, in one of the countries 
listed in Country Group A:5 or the United States, that will ultimately 
be used by any such government agencies, the United States Government, 
or by a person in the United States. The use of License Exception STA 
also may be authorized, under certain circumstances described in Sec.  
740.20(b)(3)(ii)(C), where the U.S. Government has otherwise authorized 
the ultimate end-use under a license.
    None of the items that would be controlled under the new ``600 
series'' ECCNs proposed by this rule would be treated as ``end items'' 
for purposes of License Exception STA and, therefore, such items would 
not be subject to the License Exception STA eligibility request 
requirements in Sec.  740.20(g) of the EAR.
    Items controlled under proposed new ECCN 1B607 or 6B619 also would 
be eligible for License Exception LVS (limited value shipments) up to a 
value of $1,500, TMP (temporary exports), and RPL (servicing and 
replacement parts). License Exceptions TMP and RPL also would be 
available for items controlled under new ECCN 1A607.
    BIS believes that the restrictions that would apply to the use of 
license exceptions for the items in the proposed new ``600 series'' 
ECCNs would represent an overall reduction from the level of 
restrictions that currently apply to such items on the USML. This would 
be particularly true with respect to exports of such items to NATO 
members and multiple-regime member countries.

Alignment With the Wassenaar Arrangement Munitions List

    Since the beginning of ECR, the Administration has stated that the 
reforms will be consistent with the United States' obligations to the 
multilateral export control regimes. Accordingly, the Administration 
will, in this proposed rule, exercise its national discretion to 
implement, clarify, and, to the extent feasible, align its controls 
with those of the regimes. In this rule, proposed ECCNs 1A607 and 1C607 
would implement, to the extent possible, the controls in WAML Category 
7; proposed ECCNs 1B607 and 6B619 would implement, to the extent 
possible, the controls in WAML Category 18 for production 
``equipment;'' proposed ECCNs 1D607 and 6D619 would implement, to the 
extent possible, the controls in WAML Category 21 for ``software;'' and 
proposed ECCNs 1E607 and 6E619 would implement, to the extent possible, 
the controls in WAML Category 22 for ``technology.''

Request for Comments

    BIS seeks comments on this proposed rule. BIS will consider all 
comments received on or before August 17, 2015. All comments (including 
any personally identifying information or information for which a claim 
of confidentially is asserted either in those comments or their 
transmittal emails) will be made available for public inspection and 
copying. Parties who wish to comment anonymously may do so by 
submitting their comments via Regulations.gov, leaving the fields that 
would identify the commenter blank and including no identifying 
information in the comment itself.
    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), 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, as amended by Executive 
Order 13637.

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 rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is 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 OMB 
control number. This proposed rule would affect the following approved 
collections: Simplified Network Application Processing System (control 
number 0694-0088), which includes, among other things, license 
applications; License Exceptions and Exclusions (0694-0137); 
recordkeeping (0694-0096); export clearance (0694-0122); and the 
Automated Export System (0607-0152).
    As stated in the proposed rule published on July 15, 2011 (76 FR 
41958) (the ``July 15 proposed rule''), BIS initially estimated that 
the combined effect of all rules to be published, adding items to the 
EAR that would be removed from the ITAR as part of the Administration's 
Export Control Reform Initiative, would increase the number of license 
applications to be submitted to BIS by approximately 16,000 annually, 
resulting in an increase in burden hours of 5,067 (16,000 transactions 
at 17 minutes each) under control number 0694-0088. As the review of 
the USML has progressed, the interagency group has gained more specific 
information about the number of items that would come under BIS 
jurisdiction and whether those items would be eligible for export under 
license exception. As of June 21, 2012, BIS revised its estimate to 
reflect an increase in license applications of 30,000 annually, 
resulting in an increase in burden hours of 8,500 (30,000 transactions 
at 17

[[Page 34567]]

minutes each) under control number 0694-0088. BIS continues to believe 
that its revised estimate is accurate. Notwithstanding this increase in 
license applications under the EAR, the net burden that U.S. export 
controls impose on U.S. exporters is expected to go down, as described 
below, as a result of the transfer of less sensitive military items to 
the jurisdiction of the Department of Commerce, under the EAR, and the 
application of the license exceptions and other provisions in the EAR 
that are described in this proposed rule.
    As proposed by this rule, certain dissemination, detection and 
protection ``equipment'' and related articles currently controlled 
under USML Category XIV in the ITAR and certain tooling, production 
``equipment,'' test and evaluation ``equipment,'' test models and 
related articles currently controlled under USML Category XVIII of the 
ITAR would become subject to the licensing jurisdiction of the 
Department of Commerce under the EAR and its CCL, and also would be 
eligible for certain license exceptions, including License Exception 
STA. For example, items controlled under proposed ECCN 1A607, 1B607, 
1C607, 1D607, 1E607, 6B619, 6D619, or 6E619 would become eligible under 
certain provisions of License Exception STA and would not need a 
determination of eligibility as described in Sec.  740.20(g) of the 
EAR. BIS believes that the increased use of License Exception STA 
resulting from the combined effect of all rules to be published, adding 
items to the EAR that would be removed from the ITAR as part of the 
Administration's Export Control Reform Initiative, would increase the 
burden associated with control number 0694-0137 by about 23,858 hours 
(20,450 transactions at 1 hour and 10 minutes each).
    BIS expects that this increase in burden hours under the EAR would 
be more than offset by a reduction in the burden hours associated with 
currently approved collections related to the ITAR. With few 
exceptions, most exports of the dissemination, detection and protection 
``equipment'' and related articles and the tooling, production 
``equipment,'' test and evaluation ``equipment,'' test models and 
related articles that this rule proposes to add to the CCL currently 
require State Department authorization, even when destined to NATO 
member states and other close allies. In addition, the exports of 
``technology'' necessary to produce such items in the inventories of 
the United States and its NATO and other close allies currently require 
State Department authorization. Under the EAR, as proposed by this 
rule, such ``technology'' would become eligible for export to NATO 
member states and other close allies under License Exception STA, 
unless otherwise specifically excluded.
    The anticipated reduction in burden hours would particularly impact 
exporters of ``parts'' and ``components'' that would no longer be 
subject to the ITAR, because, with few exceptions, the ITAR currently 
exempt from license requirements only exports to Canada. Most exports 
of such ``parts'' and ``components,'' even when destined to NATO and 
other close allies, currently require State Department authorization. 
Under the EAR, as proposed by this rule, a small number of low-level 
``parts'' and ``components'' would not require a license to most 
destinations, while most other ``parts'' and ``components'' identified 
under the proposed new ``600 series'' ECCNs would be eligible for 
export to NATO and other close allies under License Exception STA.
    Use of License Exception STA imposes a paperwork and compliance 
burden because, for example, exporters must furnish information about 
the item that is being exported to the consignee and obtain from the 
consignee an acknowledgement and commitment to comply with the 
requirements of the EAR. However, the Administration believes that 
complying with the requirements of STA is likely to be less burdensome 
than applying for licenses. For example, under License Exception STA, a 
single consignee statement can apply to an unlimited number of 
products, need not have an expiration date and need not be submitted to 
the government in advance for approval. Suppliers with regular 
customers can tailor a single statement and assurance to match their 
business relationship, rather than applying repeatedly for licenses 
with every purchase order, to supply allied and, in some cases, U.S. 
forces with routine replacement parts and components.
    Even in situations in which a license would be required under the 
EAR, the burden likely will be reduced, compared to the current license 
requirement under the ITAR. In particular, license applications for 
exports of ``technology'' controlled by ECCN 1E607 or 6E619 are likely 
to be less complex and burdensome than the authorizations required to 
export ITAR-controlled ``technology,'' i.e., Manufacturing License 
Agreements and Technical Assistance Agreements.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 
601 et seq., generally requires an agency to prepare an initial 
regulatory flexibility analysis (IRFA) for any rule subject to the 
notice and comment rulemaking requirements under the Administrative 
Procedure Act (5 U.S.C. 553) or any other statute, unless the agency 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities. Under section 605(b) of the 
RFA, however, if the head of an agency certifies that a rule will not 
have a significant impact on a substantial number of small entities, 
the RFA does not require the agency to prepare a regulatory flexibility 
analysis. Accordingly, pursuant to section 605(b), the Chief Counsel 
for Regulation, Department of Commerce, has certified to the Chief 
Counsel for Advocacy, Small Business Administration, that this proposed 
rule, if promulgated, will not have a significant impact on a 
substantial number of small entities. The rationale for this 
certification is as follows.

Number of Small Entities

    Although BIS does not collect data on the size of entities that 
apply for, and are issued, export licenses and is, therefore, unable to 
estimate the exact number of small entities--as defined by the Small 
Business Administration's regulations implementing the RFA--BIS 
acknowledges that some small entities may be affected by this proposed 
rule.

Economic Impact

    The amendments set forth in this rule are proposed as part of the 
Administration's ECR initiative, which seeks to revise the USML to be a 
positive control list--one that does not use generic, catch-all control 
text to describe items subject to the ITAR--and to move some items that 
the President has determined no longer warrant control under the ITAR 
to control under the EAR and its CCL. Such items, along with certain 
military items currently identified on the CCL (most of which are 
identified on the WAML), will be controlled under new ``600 series'' 
ECCNs on the CCL. In addition, certain other items currently on the CCL 
will move from existing ECCNs to the new ``600 series'' ECCNs.
    This rule addresses certain dissemination, detection and protection 
``equipment'' and related articles currently enumerated or otherwise 
described in USML Category XIV (Toxicological Agents, Including

[[Page 34568]]

Chemical Agents, Biological Agents, and Associated Equipment) and 
certain tooling, production ``equipment,'' test and evaluation 
``equipment,'' test models and related articles currently enumerated or 
otherwise described in USML Category XVIII (Directed Energy Weapons). 
Most toxicological agents (i.e., chemical and biological agents) and 
associated equipment and all Directed Energy Weapons (DEWs) systems 
``specially designed'' or modified for military applications, 
``equipment'' ``specially designed'' or modified to detect, identify or 
defend against such systems, and ``specially designed'' ``parts,'' 
``components,'' ``accessories'' and ``attachments'' for such systems or 
``equipment'' would remain on the USML. However, many other ``parts'' 
and ``components'' would become subject to the EAR (as items described 
in ECCN 1A607.x, 1B607.x, or 6B619.x), unless specifically enumerated 
or otherwise described on the USML. Many of these ``parts'' and 
``components'' are more likely, than the USML articles described above, 
to be produced by small businesses. In addition, officials of the 
Department of State have informed BIS that license applications for 
such ``parts'' and ``components'' represent a high percentage of the 
license applications for USML articles reviewed by that department. 
Changing the jurisdictional status of certain Category XIV and Category 
XVIII items would reduce the burden on small entities (and other 
entities as well) through: (i) elimination of some license 
requirements; (ii) greater availability of license exceptions; (iii) 
simpler license application procedures; and (iv) reduced or eliminated 
registration fees.
    Moreover, ``parts'' and ``components'' that are controlled under 
the ITAR remain under ITAR control when incorporated into foreign-made 
items, regardless of the significance or insignificance of the item. 
This discourages foreign buyers from incorporating such U.S. content. 
The availability of de minimis treatment under the EAR, for those items 
that would no longer be controlled under the ITAR, may reduce the 
disincentive for foreign manufacturers to purchase U.S.-origin 
``parts'' and ``components,'' a development that potentially would mean 
greater sales for U.S. suppliers, including small entities.
    Many exports and reexports of the Category XIV or Category XVIII 
articles that would be added to the CCL by this rule (particularly, the 
``parts'' and ``components'' that would be controlled under new ECCN 
1A607.x, 1B607.x, or 6B619.x) would become eligible for license 
exceptions that apply to exports to U.S. Government agencies, exports 
of ``parts'' and ``components'' for use as replacement parts, temporary 
exports and limited value exports (for ECCN 1B607 and 6B619 items, 
only), as well as License Exception STA, thereby reducing the number of 
licenses that exporters of these items would need. License exceptions 
under the EAR would allow suppliers to send routine replacement parts 
and low level parts to NATO and other close allies and export control 
regime partners for use by those governments and for use by contractors 
building equipment for those governments or for the U.S. Government 
without having to obtain export licenses. Under License Exception STA, 
the exporter would need to furnish information about the item being 
exported to the consignee and obtain a statement from the consignee 
that, among other things, would commit the consignee to comply with the 
EAR and other applicable U.S. laws. Because such statements and 
obligations can apply to an unlimited number of transactions and have 
no expiration date, they would create a net reduction in burden on 
transactions that the government routinely approves through the license 
application process that the License Exception STA statements would 
replace.
    Even for exports and reexports for which a license would be 
required, the process for obtaining a license would be simpler and less 
costly under the EAR. When a USML Category XIV or Category XVIII 
article is moved to the CCL, the number of destinations for which a 
license is required would remain unchanged. However, the burden on the 
license applicant would decrease because the licensing procedure for 
CCL items is simpler and more flexible than the licensing procedure for 
USML articles.
    Under the USML licensing procedure, an applicant must include a 
purchase order or contract with its application. There is no such 
requirement under the CCL licensing procedure. This difference gives 
the CCL applicant at least two advantages. First, the applicant has a 
way to determine whether the U.S. Government will authorize the 
transaction before it enters into potentially lengthy, complex and 
expensive sales presentations or contract negotiations. Under the USML 
procedure, the applicant must caveat all sales presentations with a 
reference to the need for government approval, and is more likely to 
engage in substantial effort and expense only to find that the 
government will reject the application. Second, a CCL license applicant 
need not limit its application to the quantity or value of one purchase 
order or contract. It may apply for a license to cover all of its 
expected exports or reexports to a specified consignee over the life of 
a license (normally four years, but may be longer if circumstances 
warrant a longer period), thus reducing the total number of licenses 
for which the applicant must apply.
    In addition, many applicants exporting or reexporting items that 
this rule proposes to transfer from the USML to the CCL would realize 
cost savings through the elimination of some or all registration fees 
currently assessed under the USML's licensing procedure. Currently, 
USML applicants must pay to use the USML licensing procedure even if 
they never actually are authorized to export. Registration fees for 
manufacturers and exporters of articles on the USML start at $2,250 per 
year, increase to $2,750 for organizations applying for one to ten 
licenses per year and further increase to $2,750 plus $250 per license 
application (subject to a maximum of three percent of total application 
value) for those who need to apply for more than ten licenses per year. 
Conversely, there are no registration or application processing fees 
for applications to export items listed on the CCL. Once the Category 
XIV or Category XVIII items that are the subject to this rulemaking are 
removed from the USML and added to the CCL, entities currently applying 
for licenses from the Department of State would find their registration 
fees reduced if the number of USML licenses those entities need 
declines. If an entity's entire product line is moved to the CCL, its 
ITAR registration and registration fee requirement would be eliminated.

Conclusion

    BIS expects that the changes to the EAR proposed in this rule will 
have a positive effect on all affected entities, including small 
entities. While BIS acknowledges that this rule may have some cost 
impacts on small (and other) entities, those costs are more than offset 
by the benefits to the entities from the licensing procedures under the 
EAR, which are much less costly and less time consuming than the 
procedures under the ITAR. As noted above, any new burdens proposed by 
this rule would be offset by a reduction in the number of items that 
would require a license, increased opportunities for use of license 
exceptions for exports to certain countries, simpler export license 
applications, reduced or eliminated registration fees and application 
of a de minimis threshold for foreign-made items incorporating U.S.-
origin parts

[[Page 34569]]

and components, all of which would reduce the incentive for foreign 
buyers to design out or avoid U.S.-origin content. Accordingly, the 
Chief Counsel for Regulation, Department of Commerce, has certified to 
the Chief Counsel for Advocacy, Small Business Administration, that 
this rule, if implemented, would not have a significant economic impact 
on a substantial number of small entities. Accordingly, an initial 
regulatory flexibility analysis is not required, and none has been 
prepared.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, part 774 of the Export 
Administration Regulations (15 CFR parts 730-774) is proposed to be 
amended as follows:

PART 774--[AMENDED]

0
1. 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).

0
2. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1A607 between ECCNs 
1A290 and 1A613 to read as follows:

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

* * * * *
1A607 Military dissemination ``equipment'' for riot control agents, 
military detection and protection ``equipment'' for toxicological 
agents (including chemical, biological, and riot control agents), 
and related commodities (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
CIV: N/A

Special Conditions for STA

    STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 1A607.

List of Items Controlled

Related Controls: (1) Vaccines identified in ECCN 1C991 are not 
controlled by this ECCN. (2) See 22 CFR 121.1 (USML), Category XIV(h), 
for vaccines that are subject to the ITAR. (3) Protection and detection 
``equipment'' and related items identified in ECCN 1A004, 1A995, or 
2B351 are not controlled by this ECCN. (4) See 22 CFR 121.1 (USML), 
Category XIV(f), for dissemination, detection and protection 
``equipment'' that is subject to the ITAR. (5) See ECCN 0A919 for 
foreign-made ``military commodities'' that incorporate more than a de 
minimis amount of US-origin ``600 series'' controlled content.
Related Definitions: N/A
Items:

    a. through d. [Reserved]
    e. ``Equipment'' ``specially designed'' for military use and for 
the dissemination of any of the riot control agents controlled in ECCN 
1C607.a.
    f. Protection ``equipment'' (including air conditioning units and 
protective clothing):
    f.1. Not controlled by USML Category XIV(f); and
    f.2. ``Specially designed'' for military use and for defense 
against:
    f.2.1. Materials specified by USML Category XIV (a) or (b); or
    f.2.2. Riot control agents controlled in 1C607.a.
    g. Decontamination ``equipment'':
    g.1. Not controlled by USML Category XIV(f); and
    g.2. ``Specially designed'' for military use and for 
decontamination of objects contaminated with materials controlled by 
USML Category XIV(a) or (b).
    h. ``Equipment'':
    h.1. Not controlled by USML Category XIV(f); and
    h.2. ``Specially designed'' for military use and for the detection 
or identification of:
    h.2.1. Materials specified by USML Category XIV(a) or (b); or
    h.2.2. Riot control agents controlled by ECCN 1C607.a.
    i. [Reserved]
    j. ``Equipment'' ``specially designed'' to:
    j.1. Interface with a detector, shelter, vehicle, vessel, or 
aircraft controlled by the USML or a ``600 series'' ECCN; and
    j.2. Collect and process samples of articles controlled in USML 
Category XIV(a) or (b).
    k. Medical countermeasures that are ``specially designed'' for 
military use (including pre- and post-treatments, antidotes, and 
medical diagnostics) and ``specially designed'' to counter chemical 
agents controlled by the USML Category XIV(a).

    Note: Examples of ``equipment'' controlled by this entry are 
barrier and non-barrier creams and filled autoinjectors (e.g., 
combopens where one injector contains 2-PAM and the other atropine) 
if ``specially designed'' to counter such agents.

    l. through w. [Reserved]
    x. ``Parts,'' ``components,'' ``accessories,'' and ``attachments'' 
that are ``specially designed'' for a commodity controlled by ECCN 
1A607.e, .f, .g, or .j or for a defense article controlled by USML 
Category XIV(f) and that are not enumerated or otherwise described 
elsewhere in the USML.

    3. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1B607 between 
ECCNs 1B234 and 1B608 to read as follows:

1B607 Military test, inspection, and production ``equipment'' and 
related commodities ``specially designed'' for the ``development,'' 
``production,'' repair, overhaul, or refurbishing of commodities 
identified in ECCN 1A607 or 1C607, or defense articles enumerated or 
otherwise described in USML Category XIV (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 


[[Page 34570]]

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $1500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) of 
the EAR) may not be used for any item in 1B607.

List of Items Controlled

Related Controls: (1) See ECCN 2B350 for controls on certain 
incinerators. (2) See ECCN 0A919 for foreign-made ``military 
commodities'' that incorporate more than a de minimis amount of US-
origin ``600 series'' controlled content.
Related Definitions: N/A
Items:

    a. ``Equipment'' ``specially designed'' for the destruction of the 
chemical agents controlled by USML Category XIV(a).

    Note to 1B607.a: ECCN 1B607.a includes controls over facilities 
``specially designed'' for destruction operations. This paragraph .a 
does not control incinerators and ``specially designed'' handling 
facilities or ``specially designed'' waste supply systems therefor.

    b. Test facilities and ``equipment'' ``specially designed'' for 
military certification, qualification, or testing of commodities 
controlled by ECCN 1A607.e, .f, .g, or .j or by USML Category XIV(f), 
except for XIV(f)(1).
    c. Tooling and ``equipment'' ``specially designed'' for the 
``development,'' ``production,'' repair, overhaul, or refurbishing of 
commodities controlled by ECCN 1A607.e, .f .g, or .j or USML Category 
XIV(f).
    d. through w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories,'' and ``attachments'' 
that are ``specially designed'' for a commodity controlled by ECCN 
1B607.b or .c, or for a defense article controlled by USML Category 
XIV(f), and that are not enumerated or otherwise described elsewhere in 
the USML.

0
4. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1C607 between ECCNs 
1C395 and 1C608 to read as follows:

1C607 Tear Gases, Riot Control Agents and materials for the 
detection and decontamination of chemical warfare agents (see List 
of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry, except          NS Column 1.
 1C607.a.10, .a.11, .a.12, and .a.14.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 1C607.

List of Items Controlled

Related Controls: (1) See ECCN 1A984 for controls on other riot 
control agents. (2) See 22 CFR 121.1 (USML), Category XIV(b), for 
modified biological agents and biologically derived substances that 
are subject to the ITAR. (3) See 22 CFR 121.1 (USML), Category 
XIV(g), for ITAR controls on antibodies, recombinant protective 
antigens, polynucleotides, biopolymers or biocatalysts (including 
the expression vectors, viruses, plasmids, or cultures of specific 
cells used to produce them) that are ``specially designed'' for use 
with articles controlled under USML Category XIV(f). (4) See ECCN 
0A919 for foreign-made ``military commodities'' that incorporate 
more than a de minimis amount of US-origin ``600 series'' controlled 
content.
Related Definitions: N/A
Items:
    a. Tear gases and riot control agents including:
    a.1. CA (Bromobenzyl cyanide) (CAS 5798-79-8);
    a.2. CS (o-Chlorobenzylidenemalononitrile or o-
Chlorobenzalmalononitrile) (CAS 2698-41-1);
    a.3. CN (Phenylacyl chloride or w-Chloroacetophenone) (CAS 532-
27-4);
    a.4. CR (Dibenz-(b,f)-1,4-oxazephine) (CAS 257-07-8);
    a.5. Adamsite (Diphenylamine chloroarsine or DM) (CAS 578-94-9);
    a.6. N-Nonanoylmorpholine, (MPA) (CAS 5299-64-9);
    a.7. Dibromodimethyl ether (CAS 4497-29-4);
    a.8. Dichlorodimethyl ether (ClCi) (CAS 542-88-1);
    a.9. Ethyldibromoarsine (CAS 683-43-2);
    a.10. Bromo acetone (CAS 598-31-2);
    a.11. Bromo methylethylketone (CAS 816-40-0);
    a.12. Iodo acetone (CAS 3019-04-3);
    a.13. Phenylcarbylamine chloride (CAS 622-44-6);
    a.14. Ethyl iodoacetate (CAS 623-48-3);

    Note to 1C607.a:
    ECCN 1C607.a. does not control formulations containing 1% or 
less CN or CS or individually packaged tear gases or riot control 
agents for personal self-defense purposes that are controlled by 
ECCN 1A984, or to active constituent chemicals, and combinations 
thereof, identified and packaged for food production or medical 
purposes.

    b. ``Biopolymers,'' not controlled by USML Category XIV(g) 
``specially designed'' or processed for the detection or 
identification of chemical warfare agents specified by USML Category 
XIV(a), and the cultures of specific cells used to produce them.
    c. ``Biocatalysts,'' and biological systems therefor, not 
controlled by USML Category XIV(g) ``specially designed'' for the 
decontamination or degradation of chemical warfare agents controlled 
in USML Category XIV (a), as follows:
    c.1. ``Biocatalysts'' ``specially designed'' for the 
decontamination or degradation of chemical warfare agents controlled 
in USML Category XIV(a) resulting from directed laboratory selection 
or genetic manipulation of biological systems;
    c.2. Biological systems containing the genetic information 
specific to the production of ``biocatalysts'' specified by 
1C607.c.1, as follows:
    c.2.a. ``Expression vectors;''
    c.2.b. Viruses; or
    c.2.c. Cultures of cells.

    Note to 1C607.b and .c: The cultures of cells and biological 
systems are exclusive and these sub-items do not apply to cells or 
biological systems for civil purposes, such as agricultural, 
pharmaceutical, medical, veterinary, environmental, waste 
management, or in the food industry.

    d. Chemical mixtures not controlled by USML Category XIV(f) 
``specially designed'' for military use for the decontamination of 
objects contaminated with materials specified by USML Category 
XIV(a) or (b).

0
5. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1D607 between ECCNs 
1D390 and 1D608 to read as follows:

1D607 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of items controlled by 
1A607, 1B607 or 1C607 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry, except          NS Column 1.
 ``software'' for 1C607.a.10, .a.11,
 .a.12, and .a.14.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 


[[Page 34571]]

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 1D607.

List of Items Controlled

Related Controls: (1) ``Software'' directly related to articles 
enumerated or otherwise described in USML Category XIV is subject to 
the ITAR (see 22 CFR 121.1, Category XIV(m)). ``Software'' 
controlled by USML Category XIV(m) includes ``software'' directly 
related to any equipment containing reagents, algorithms, 
coefficients, software, libraries, spectral databases, or alarm set 
point levels developed under U.S. Department of Defense contract or 
funding for the detection, identification, warning or monitoring of 
items controlled in paragraphs (a) or (b) of USML Category XIV, or 
for chemical or biological agents specified by U.S. Department of 
Defense funding or contract. (2) See ECCN 0A919 for foreign-made 
``military commodities'' that incorporate more than a de minimis 
amount of US-origin ``600 series'' controlled content.
Related Definitions: N/A
Items:
    a. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCN 1A607, 1B607, or 1C607.
    b. [RESERVED]

0
6. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1E607 between ECCNs 
1E355 and 1E608 to read as follows:

1E607 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of items controlled by ECCN 1A607, 1B607, 
1C607, or 1D607 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry, except          NS Column 1.
 ``technology'' for 1C607.a.10, .a.11,
 .a.12, and .a.14 and for 1D607
 ``software'' therefor.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 1E607.

List of Items Controlled

Related Controls: Technical data directly related to defense 
articles enumerated or otherwise described in USML Category XIV are 
subject to the ITAR (see 22 CFR 121.1, Category XIV(m)). Technical 
data controlled by USML Category XIV(m) include technical data 
directly related to any equipment containing reagents, algorithms, 
coefficients, software, libraries, spectral databases, or alarm set 
point levels developed under U.S. Department of Defense contract or 
funding for the detection, identification, warning or monitoring of 
items controlled in paragraphs (a) or (b) of USML Category XIV, or 
for chemical or biological agents specified by U.S. Department of 
Defense funding or contract.
Related Definitions: N/A
Items:
    a. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of items controlled by ECCN 1A607, 1B607, 
1C607 or 1D607.

    Note to 1E607.a: ECCN 1E607.a includes ``technology'' 
``required'' exclusively for the incorporation of ``biocatalysts'' 
controlled by ECCN 1C607.c.1 into military carrier substances or 
military material.

    b. [RESERVED]

0
7. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 6--Sensors and Lasers,'' add a new ECCN 6B619 between ECCNs 
6B108 and 6B995 to read as follows:

6B619 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development,'' 
``production,'' repair, overhaul, or refurbishing of commodities 
enumerated or otherwise described in USML Category XVIII (see List 
of Items Controlled)

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 

License Exceptions

LVS: $1,500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 6B619.

List of Items Controlled

Related Controls: ``Parts, ``components,'' ``accessories,'' 
``attachments,'' and associated systems or ``equipment'' ``specially 
designed'' for defense articles enumerated or otherwise described in 
paragraphs (a) or (b) of USML Category XVIII are subject to the ITAR 
(see 22 CFR 121.1, Category XVIII(e)).
Related Definitions: N/A
Items:
    a. Tooling, templates, jigs, mandrels, molds, dies, fixtures, 
alignment mechanisms, and test ``equipment'' not enumerated or 
otherwise described in USML Category XVIII and not elsewhere 
specified on the USML that are ``specially designed'' for the 
``development,'' ``production,'' repair, overhaul, or refurbishing 
of commodities controlled by USML Category XVIII.
    b. through w. [Reserved]
    x. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control under paragraph .a of this ECCN and not enumerated or 
otherwise described in USML Category XVIII and not elsewhere 
specified on the USML.

0
8. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 6--Sensors and Lasers,'' add a new ECCN 6D619 between ECCNs 
6D201 and 6D991 to read as follows:

6D619 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of commodities controlled 
by 6B619.

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 

License Exceptions

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 6D619.

List of Items Controlled

Related Controls: ``Software'' directly related to articles 
enumerated or otherwise described in USML Category XVIII is subject 
to the ITAR (See 22 CFR 121.1, Category XVIII(f)).

[[Page 34572]]

Related Definitions: N/A
Items:

    The list of items controlled is contained in the ECCN heading.

0
9. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 6--Sensors and Lasers,'' add a new ECCN 6E619 between ECCNs 
6E202 and 6E990 to read as follows:

6E619 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul or refurbishing of commodities controlled by 6B619 or 
``software'' controlled by 6D619.

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to Part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls.
 

License Exceptions

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 6E619.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated or otherwise described in USML Category XVIII are subject 
to the ITAR (See 22 CFR 121.1, Category XVIII(f)).
Related Definitions: N/A
Items:
    The list of items controlled is contained in the ECCN heading.

    Dated: June 9, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-14474 Filed 6-16-15; 8:45 am]
 BILLING CODE 3510-33-P