[Federal Register Volume 82, Number 129 (Friday, July 7, 2017)]
[Rules and Regulations]
[Pages 31442-31449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14312]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 742, 744, 772, and 774

[Docket No. 170202139-7139-01]
RIN 0694-AH33


Revisions to the Export Administration Regulations Based on the 
2016 Missile Technology Control Regime Plenary Agreements

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) to reflect changes to the 
Missile Technology Control Regime (MTCR) Annex that were agreed to by 
MTCR member countries at the October 2016 Plenary in Busan, South 
Korea, and the March 2016 Technical Experts Meeting (TEM) in Luxembourg 
City, Luxembourg. This final rule revises thirteen Export Control 
Classification Numbers (ECCNs), adds one ECCN, revises two EAR defined 
terms (including making other EAR conforming changes for the use of 
these two terms) and makes conforming EAR changes where needed to 
implement the changes that were agreed to at the meetings and to better 
align the missile technology (MT) controls on the Commerce Control List 
(CCL) with the MTCR Annex.

DATES: This rule is effective July 7, 2017.

FOR FURTHER INFORMATION CONTACT: Sharon Bragonje, Nuclear and Missile 
Technology Controls Division, Bureau of Industry and Security, Phone: 
(202) 482-0434; Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Missile Technology Control Regime (MTCR or Regime) is an export 
control arrangement among 35 nations, including most of the world's 
suppliers of advanced missiles and missile-related equipment, 
materials, software and technology. The regime establishes a common 
list of controlled items (the Annex) and a common export control policy 
(the Guidelines) that member countries implement in accordance with 
their national export controls. The MTCR seeks to limit the risk of 
proliferation of weapons of mass destruction by controlling exports of 
goods and technologies that could make a contribution to delivery 
systems (other than manned aircraft) for such weapons.
    In 1993, the MTCR's original focus on missiles for nuclear weapons 
delivery was expanded to include the proliferation of missiles for the 
delivery of all types of weapons of mass destruction (WMD), i.e., 
nuclear, chemical and biological weapons. Such proliferation has been 
identified as a threat to international peace and security. One way to 
address this threat is to maintain vigilance over the transfer of 
missile equipment, material, and related technologies usable for 
systems capable of delivering WMD. MTCR members voluntarily pledge to 
adopt the Regime's export Guidelines and to restrict the export of 
items contained in the Regime's Annex. The Regime's Guidelines are 
implemented through the national export control laws, regulations and 
policies of the regime members.

Amendments to the Export Administration Regulations (EAR)

    This final rule revises the Export Administration Regulations (EAR) 
to reflect changes to the MTCR Annex agreed to at the October 2016 
Plenary in Busan, South Korea, and changes resulting from the March 
2016 Technical Experts Meeting (TEM) in Luxembourg City, Luxembourg. 
References are provided below for the MTCR Annex changes agreed to at 
the meetings that correspond to the EAR revisions described below. This 
rule also makes changes to the Commerce Control List (CCL) (Supplement 
No. 1 to Part 774 of the EAR) and to other EAR provisions in order to 
conform with the MTCR Annex. All of the changes in this final rule 
align the MT controls on the CCL and other parts of the EAR with the 
MTCR Annex. In the discussion below, BIS identifies the origin of each 
change in the regulatory text of this final rule by using one the 
following parenthetical phrases: (Busan 2016 Plenary), (Luxembourg 2016 
TEM), or (Conforming Change to MTCR Annex).
    Sec.  742.5 (Missile technology). In Sec.  742.5 (Missile 
technology), this final rule revises the first sentence of paragraph 
(a)(2), which describes the definition of ``missiles.'' The term 
``missiles'' is a defined term in Sec.  772.1, but for ease of 
reference the first sentence of this paragraph (a)(2) restates the 
definition. As described in the paragraphs below, this final rule 
revises the definitions of ``missiles'' and ``unmanned aerial 
vehicles'' in Sec.  772.1 of the EAR, so conforming changes are needed 
in Sec. Sec.  742.5 and 744.3, as described below.
    Conforming Change to Sec.  742.5(a)(2). This final rule makes 
conforming changes in paragraph (a)(2) of Sec.  742.5,

[[Page 31443]]

by replacing the term ``ballistic missile systems'' with the term 
``ballistic missiles'' (MTCR Annex Change, Category I: Item 1.A.1., 
Luxembourg 2016 TEM), and by replacing the term ``cruise missile 
systems'' with the term ``cruise missiles.'' (MTCR Annex Change, 
Category I: Item 1.A.2., Luxembourg 2016 TEM). This final rule also 
makes a conforming change by replacing the term ``unmanned air 
vehicles'' with the term ``unmanned aerial vehicles.'' (Conforming 
Change to MTCR Annex). Substantively, there is no difference between 
the old and revised terms, but this final rule makes these conforming 
changes to ensure consistent use of the terminology throughout the EAR. 
These conforming changes are described in more detail in the next three 
paragraphs, describing the changes that this final rule makes to the 
EAR definitions of ``missiles'' and ``unmanned aerial vehicles.''
    Conforming Change to Sec.  744.3 (Restrictions on certain rocket 
systems (including ballistic missile systems and space launch vehicles 
and sounding rockets) and unmanned air vehicles (including cruise 
missile systems, target drones and reconnaissance drones) end-uses). 
This final rule makes conforming changes in Sec.  744.3 by changing the 
term ``ballistic missile systems'' to ``ballistic missiles'' (MTCR 
Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM), and 
changing the term ``cruise missile systems'' to ``cruise missiles.'' 
(MTCR Annex Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). 
These conforming changes are described in more detail in the next two 
paragraphs describing the changes that this final rule makes to the EAR 
definitions of ``missiles'' and ``unmanned aerial vehicles.'' In 
addition, this final rule makes conforming changes in Sec.  744.3 by 
replacing the term ``unmanned air vehicles'' with ``unmanned aerial 
vehicles'' wherever this term appears in this section. (Conforming 
Change to MTCR Annex). Substantively, there is no difference between 
the old and revised terms, but this final rule makes these conforming 
changes to ensure consistent use of the terminology throughout the EAR. 
Lastly, this final rule removes the first reference to ``and'' in the 
section heading for the parenthetical phrase providing an illustrative 
list of examples of rocket systems. This ``and'' is removed because it 
is not needed to convey the meaning of the list of examples of rocket 
systems. These conforming changes are clarifications and will not 
change any scope of control. These changes are not expected to have any 
impact on the number of license applications received by BIS.
    Changes and Conforming Amendments in Sec.  772.1 (Definitions of 
Terms as Used in the Export Administration Regulations (EAR)). In Sec.  
772.1, this final rule amends the definition of the term ``missiles.'' 
(MTCR Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM). 
Under the definition of ``missiles,'' this final rule revises the term 
``ballistic missile systems'' by removing the word ``systems'' and 
adding an ``s'' to ``missile.'' This final rule revises the definition 
of ``missiles'' to reflect changes in the description of complete 
rocket systems in the MTCR Annex. The final rule revises the term 
``ballistic missile systems'' by removing the word ``systems,'' thus 
referring only to the flight vehicle. This final rule makes this change 
to conform to the other items in the illustrative list of ``missiles,'' 
and to clarify that a missile is covered under these entries that use 
this control text, regardless of whether it is part of a larger system 
(e.g., a system including the flight vehicle and ground support 
equipment such as launch, recovery, and flight control equipment). This 
final rule also makes conforming changes to the same terms used in 
ECCNs 2B018 and 5A101, as described below. This final rule also makes a 
conforming change in the ECCNs for the use of the term ``unmanned air 
vehicles,'' which this final rule replaces with ``unmanned aerial 
vehicles.'' (Conforming Change to MTCR Annex). Substantively, there is 
no difference between the two formulations of the term, but this final 
rule makes these conforming changes to ensure consistent use of the 
terminology throughout the EAR. Lastly, this final rule removes the 
last sentence of the definition and adds it as a note to the 
definition. This clarifying change is made because the sentence is more 
appropriately included as a note to the definition. These changes 
correspond with the U.S. interpretation of the controls, and will not 
change any scope of control. These changes are not expected to have any 
impact on the number of license applications received by BIS.
    In addition, in Sec.  772.1, this final rule amends the definition 
of the revised term, ``unmanned aerial vehicle.'' (MTCR Annex Change, 
Category I: Item 1.A.2., Luxembourg 2016 TEM). Under the definition of 
``unmanned aerial vehicle,'' this final rule revises the term ``cruise 
missile systems'' by removing the word ``systems'' and adding an ``s'' 
to ``missile.'' The definition of ``unmanned aerial vehicles'' has been 
updated to reflect changes in the description of unmanned aerial 
vehicles in the MTCR Annex. The term ``Cruise missile systems'' has 
been changed by removing the word ``systems,'' thus referring only to 
the flight vehicle. This change both conforms to the other items in the 
illustrative list of unmanned aerial vehicles, and clarifies that an 
unmanned aerial vehicle is covered under these entries that use this 
control text, regardless of whether or not it is part of a larger 
system (e.g., a system including the flight vehicle and ground support 
equipment such as launch, recovery, and flight control equipment). This 
final rule also makes conforming changes to similar text used in ECCNs 
2B018 and 5A101 described below. These changes correspond with the U.S. 
interpretation of the controls, and will not change any scope of 
control. These changes are not expected to have any impact on the 
number of license applications received by BIS.

Amendments to the Commerce Control List (CCL)

    In addition, this final rule amends the CCL to reflect changes to 
the MTCR Annex by amending thirteen ECCNs and adding new ECCN 9B104, as 
follows:
    ECCN 1C107. This final rule amends ECCN 1C107 by revising the 
introductory text of paragraph d. and adding a paragraph d.3 in the 
List of Items Controlled section. This final rule also adds a Note and 
a Technical Note to ECCN 1C107.d.3 to clarify the scope of paragraph 
d.3. (MTCR Annex Change, Category II: Item 6.C.6., Busan 2016 Plenary). 
Specifically, in the introductory text of ECCN 1C107.d, this final rule 
removes the phrase ``silicon carbide materials'' and adds in its place 
the phrase ``high-temperature materials.'' This change is made because 
of the addition of certain bulk machinable ceramic composite materials 
that this final rule adds to ECCN 1C107 under new ``items'' paragraph 
d.3. Ultra High Temperature Ceramic Composites (UHTCC) are materials 
that combine Ultra High Temperature Ceramics (UHTC) with fiber 
reinforcement. The UHTCs can be used in environments that exhibit 
extremes in temperature, chemical reactivity, and erosive attack. The 
combination of the UHTC and fiber reinforcement can mitigate some of 
the traditional drawbacks associated with ceramics, including a 
tendency to fracture. Typical end uses for these composites are leading 
edges for hypersonic vehicles, nose tips for re-entry vehicles, rocket 
motor throat inserts, jet vanes, and control surfaces, which this final 
rule adds as examples

[[Page 31444]]

in the new control text. This final rule also adds a note to 1C107.d.3 
to make clear that the UHTC materials that do not have fiber 
reinforcement are not caught under this control. Additionally, this 
final rule adds a technical note to 1C107.d to provide examples of 
UHTCs which are included. This change is expected to result in an 
increase of 1-3 applications received annually by BIS. This very small 
increase is because this material is not widely used or exported, but 
specific to the end uses described in the control text.
    ECCN 1C111. This final rule amends ECCN 1C111 by revising 
paragraphs b.2 in the List of Items Controlled section to add a CAS 
(Chemical Abstract Service) Number. CAS Numbers are numerical 
identifiers assigned by the Chemical Abstracts Service (CAS) to every 
chemical substance described in open scientific literature, including 
organic and inorganic compounds, minerals, isotopes and alloys. The 
inclusion of CAS Numbers will make it easier to identify the materials 
controlled under this ``items'' paragraph of 1C111. This final rule 
revises paragraph b.2 to add the CAS Number (CAS 69102-90-5) after the 
material ``Hydroxy-terminated polybutadiene (including hydroxyl-
terminated polybutadiene) (HTPB).'' (MTCR Annex Change, Category II: 
Item 4.C.5.b., Busan 2016 Plenary). This change is not expected to have 
any impact on the number of license applications received by BIS.
    ECCN 2B018. This final rule amends ECCN 2B018 by revising the 
``MT'' paragraph in the table in the License Requirements section by 
revising the term ``ballistic missile systems'' to remove the term 
``systems'' and add an ``s'' to the term ``missile.'' (MTCR Annex 
Change, Category I: Item 1.A.1., Luxembourg 2016 TEM). In addition, in 
the same ``MT'' paragraph, this final rule revises the term ``cruise 
missile systems'' to remove the term ``systems'' and add an ``s'' to 
the term ``missile.'' (MTCR Annex Change, Category I: Item 1.A.2., 
Luxembourg 2016 TEM). Lastly, this final rule makes conforming changes 
in the same ``MT'' paragraph by replacing the term ``unmanned air 
vehicles'' with ``unmanned aerial vehicles'' wherever this term appears 
in this section. (Conforming Change to MTCR Annex). Substantively, 
there is no difference between the old and revised terms, but this 
final rule makes these conforming changes to ensure consistent use of 
the terminology throughout the EAR. These are conforming changes for 
the changes described above to the definitions of ``missiles'' and 
``unmanned aerial vehicles.'' This is a clarification and will not 
change any scope of control. This change is not expected to have any 
impact on the number of license applications received by BIS.
    ECCN 2B109. This final rule amends ECCN 2B109 by revising the list 
of examples included in the second technical note. This final rule 
expands the list of examples to include interstages, because 
interstages can also be manufactured using the flow forming machines 
described in ECCN 2B109. (MTCR Annex Change, Category II: Item 3.B.3., 
Busan 2016 Plenary). This change is not expected to have any impact on 
the number of license applications received by BIS, because this is 
only a change to the list of examples of products that can be made by 
this type of machine, and it does not change the scope of control.
    ECCN 5A101. This final rule amends the heading of ECCN 5A101 by 
revising the term ``ballistic missile systems'' to remove the word 
``systems'' and add an ``s'' to ``missile.'' (MTCR Annex Change, 
Category I: Item 1.A.1., Luxembourg 2016 TEM). The final rule revises 
the heading by revising the term ``cruise missile systems'' to remove 
the word ``systems'' and add an ``s'' after ``missile.'' (MTCR Annex 
Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). These are 
conforming changes for the changes described above to the definitions 
of ``missiles'' and ``unmanned aerial vehicles.'' In addition, this 
final rule revises the heading of ECCN 5A101 to create a separate 
parenthetical phrase for the illustrative list of examples that are 
unmanned aerial vehicles. This final rule does this by removing the 
examples of ``cruise missiles, target drones, and reconnaissance 
drones'' from the list of examples that followed the terms ``unmanned 
aerial vehicle or rocket systems'' in the heading and adding those 
examples immediately after the term unmanned aerial vehicle. This final 
rule retains the rest of the examples from the parenthetical that 
follows the term ``rocket systems,'' which will make it clearer that 
this parenthetical list is an illustrative list of ``rocket systems.'' 
(Conforming Change to MTCR Annex). These are clarifications and will 
not change any scope of control. These changes are not expected to have 
any impact on the number of license applications received by BIS.
    ECCN 7A103. This final rule amends ECCN 7A103 by adding a 
definition for ``inertial measurement equipment and systems'' for 
purposes of ECCN 7A103. In addition, this final rule revises ``items'' 
paragraph a and adds Note 3 in the List of Items Controlled section. 
(MTCR Annex Change, Category II: Item 9.A.6., Luxembourg 2016 TEM). 
This final rule makes these changes to remove the ambiguous term 
``other equipment.'' Instead, the locally defined term ``inertial 
measurement equipment or systems'' that the final rule adds to ECCN 
7A103, along with an illustrative list of such equipment and systems, 
clarifies which types of equipment containing the specified 
accelerometers or gyros are caught by this entry. This final rule also 
removes the phrase ``and systems incorporating such equipment'' because 
this phrase has been removed from the MTCR Annex. The changes this 
final rule makes to ECCN 7A103 to increase the clarity of the control 
should make the control more precise and rule out items not strictly 
used for navigation purposes. This change is expected to result in a 
decrease of 3 to 5 license applications received annually by BIS. 
Lastly, this final rule updates and amends ECCN 7A103 by removing 
Related Controls paragraph (2), which is no longer accurate after 
changes were made to the EAR to correspond with changes made to USML 
Category XII (especially for unmanned aerial vehicles (UAVs) ) that 
became effective December 31, 2016 (See October 12, 2016, (81 FR 70320) 
final rule). In addition, this paragraph (2) can be removed because the 
USML Order of Review and CCL Order of Review will provide sufficient 
guidance on where items that are subject to the ITAR are classified 
under the USML and where items that are subject to the EAR are 
classified in either the ``600 series'' or in other ECCNs in Category 7 
of the CCL. Lastly, as a conforming change to the removal of paragraph 
(2), this final rule redesignates Related Controls paragraph (3) as new 
Related Controls paragraph (2).
    ECCNs 9A101, 9E101, and 9E102. This final rule amends ECCN 9E101 by 
revising the Related Controls paragraph in the List of Items Controlled 
section to make a conforming change for the use of the term ``unmanned 
air vehicles,'' which this final rule changes to ``unmanned aerial 
vehicles.'' In addition, this final rule amends ECCN 9E101 and 9E102 by 
revising the headings of these two ECCNs to make conforming changes for 
the use of the term ``unmanned air vehicles,'' which this final rule 
changes to ``unmanned aerial vehicles.'' Substantively, there is not a 
difference in the two formulations of the term, but for consistency 
with how the term is used in other parts of the EAR, this final rule 
makes these conforming changes. (Conforming Change to MTCR Annex). This 
is a

[[Page 31445]]

clarification and will not change any scope of control. These changes 
are not expected to have any impact on the number of license 
applications received by BIS.
    New ECCN 9B104 and Related Conforming Amendments to 9D101, 9E001, 
and 9E002. This final rule adds new ECCN 9B104 to control certain 
aerothermodynamic test facilities. The facilities controlled under this 
new ECCN 9B104 are those that are usable for rockets, missiles, or 
unmanned aerial vehicles capable of achieving a ``range'' equal to or 
greater than 300 km and their subsystems, and having an electrical 
power supply equal to or greater than 5 MW or a gas supply total 
pressure equal to or greater than 3 MPa. This final rule adds this new 
ECCN 9B104 to complement the controls that already exist for 
aerodynamic test facilities in order to fully cover the types of ground 
test facilities necessary to reproduce the flight environments that 
occur during the reentry phase. Plasma arc jet and plasma wind tunnel 
facilities simulate the atmospheric reentry thermal effects due to high 
velocity around the vehicles and are key to the qualification of 
vehicle thermal protection subsystems. This final rule includes values 
for electrical power supply and gas supply total pressure in new ECCN 
9B104 to exclude commercial systems of a similar nature from this new 
ECCN.
    In addition, this final rule adds a Related Definition as part of 
new ECCN 9B104 to define the term ``aerothermodynamic test 
facilities''. This definition specifies that these facilities include 
plasma arc jet facilities and plasma wind tunnels for the study of 
thermal and mechanical effects of airflow on objects. (MTCR Annex 
Change, Category II: Item 15.B.6., Luxembourg 2016 TEM). As a 
conforming change to the addition of ECCN 9B104, this final rule adds 
9B104 to the heading of ECCN 9D101 and revises the ``MT'' paragraph in 
the table in the License Requirements section of ECCNs 9E001 and 9E002 
to add 9B104. The headings of ECCNs 9E001 and 9E002 do not need to be 
revised to add technology for 9B104, because those two technology ECCNs 
apply to 9B ECCNs, except for those specifically excluded in the ECCN 
headings. These changes are expected to result in an increase of no 
more than 1 application received annually by BIS, because such systems 
and their software and technology are exported infrequently.
    ECCN 9D104. This final rule amends ECCN 9D104 by adding a note to 
the List of Items Controlled section. This note clarifies that ECCN 
9D104 also includes specific software for the conversion of manned 
aircraft to an unmanned aerial vehicle. (MTCR Annex Change, Category 
II: Item 1.D.2., Luxembourg 2016 TEM). This change is expected to 
result in an increase of 1 to 2 applications received annually by BIS, 
because, although this software was already controlled here, the note 
will clarify the scope of ECCN 9D104.

Savings Clause

    Shipments of items removed from eligibility for a License Exception 
or export or reexport without a license (NLR) as a result of this 
regulatory action that were on dock for loading, on lighter, laden 
aboard an exporting or reexporting carrier, or enroute aboard a carrier 
to a port of export or reexport, on July 7, 2017, pursuant to actual 
orders for export or reexport to a foreign destination, may proceed to 
that destination under the previous eligibility for a License Exception 
or export or reexport without a license (NLR) so long as they are 
exported or reexported before August 7, 2017. Any such items not 
actually exported or reexported before midnight, on August 7, 2017, 
require a license in accordance with this rule.

Export Administration Act of 1979

    Although the Export Administration Act of 1979 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 4, 2016, 81 FR 52587 (August 8, 2016), 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 of 1979, as appropriate 
and to the extent permitted by law, pursuant to Executive Order 13222, 
as amended by Executive Order 13637.

Executive Order Requirements

    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 has been designated a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) of Executive Order 12866. The MTCR was formed in 1987 by 
the U.S. and G-7 countries (Canada, France, Germany, Italy, Japan, and 
the UK) to address the increasing proliferation of nuclear weapons by 
addressing the most destabilizing delivery system for such weapons. The 
MTCR seeks to limit the risk of proliferation of weapons of mass 
destruction by controlling exports of goods and technologies that could 
make a contribution to delivery systems (other than manned aircraft) 
for such weapons. The proliferation of such weapons has been identified 
as a threat to domestic and international peace and security. Commerce 
estimates this rule will increase the number of license requests by 
fewer than four annually.
    This rule does not contain policies with Federalism implications as 
that term is defined under E.O. 13132.
    For the purposes of E.O. 13771, this rule is issued with respect to 
a national security function of the United States. The cost-benefit 
analysis indicates the rule is intended to improve national security as 
its primary direct benefit, and the regulation qualifies for a good 
cause exception under 5 U.S.C. 553(b)(B). Accordingly, this rule meets 
the requirements set forth in the April 5, 2017, OMB guidance 
implementing E.O 13771, and is, therefore, exempt from the requirements 
of E.O. 13771.

Paperwork Reduction Act Requirements

    Notwithstanding any other provision of law, no person may be 
required to respond to or 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 a collection currently approved by OMB 
under control number 0694-0088, Simplified Network Application 
Processing System. This collection includes, among other things, 
license applications, and carries a burden estimate of 43.8 minutes for 
a manual or electronic submission for a total burden estimate of 31,833 
hours. BIS expects the burden hours associated with this collection to 
increase slightly by 2 hours and 19 minutes for an estimated cost 
increase of $85. This increase is not expected to exceed the existing 
estimates currently associated with OMB control number 0694-0088. 
Although this final rule makes important changes to the EAR for

[[Page 31446]]

items controlled for missile technology reasons, Commerce believes the 
overall increase in costs and burdens due to this rule will be minimal.
    Any comments regarding the collection of information associated 
with this rule, including suggestions for reducing the burden, may be 
sent to Jasmeet K. Seehra, Office of Management and Budget (OMB), by 
email to [email protected], or by fax to (202) 395-7285.

Administrative Procedure Act and Regulatory Flexibility Act 
Requirements

    The provisions of the Administrative Procedure Act (APA) (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this action involves a military and foreign affairs function of 
the United States (5 U.S.C. 553(a)(1)). Immediate implementation of 
these amendments fulfills the United States' international commitments 
to the MTCR. The MTCR contributes to international peace and security 
by promoting greater responsibility in transfers of missile technology 
items that could make a contribution to delivery systems (other than 
manned aircraft) for weapons of mass destruction. The MTCR consists of 
35 member countries acting on a consensus basis. The changes discussed 
in this rule implement agreements reached at the October 2016 Plenary 
in Busan, South Korea, and the March 2016 Technical Experts Meeting in 
Luxembourg City, Luxembourg. Since the United States is a significant 
exporter of the items discussed in this rule, implementation of this 
provision is necessary for the MTCR to achieve its purpose.
    Although the APA requirements in section 553 are not applicable to 
this action under the provisions of paragraph (a)(1), this action also 
falls within two other exceptions in the section. The subsection (b) 
requirement that agencies publish a notice of proposed rulemaking that 
includes information on the public proceedings does not apply when an 
agency for good cause finds that the notice and public procedures are 
impracticable, unnecessary, or contrary to the public interest, and the 
agency incorporates the finding (and reasons therefor) in the rule that 
is issued (5 U.S.C. 553(b)(B)). In addition, the section 553(d) 
requirement that publication of a rule shall be made not less than 30 
days before its effective date can be waived if an agency finds there 
is good cause to do so.
    The section 553 requirements for notice and public procedures and 
for a delay in the date of effectiveness do not apply to this rule, as 
there is good cause to waive such practices. Delay in implementation 
would disrupt the movement of these potentially national- and 
international-security-threatening items globally, creating disharmony 
between export control measures implemented by MTCR members. Export 
controls work best when all countries implement the same export 
controls in a timely manner. Delaying this rulemaking would prevent the 
United States from fulfilling its commitment to the MTCR in a timely 
manner, would injure the credibility of the United States in this and 
other multilateral regimes, and may impair the international 
communities' ability to effectively control the export of certain 
potentially national- and international-security-threatening materials. 
Therefore, this regulation is issued in final form, and is effective 
July 7, 2017.
    Further, no other law requires that a notice of proposed rulemaking 
and an opportunity for public comment be given for this final rule. 
Because a notice of proposed rulemaking and an opportunity for public 
comment are not required to be given for this rule under the 
Administrative Procedure Act or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required and none has been prepared.

List of Subjects

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 742, 744, 772 and 774 of the Export 
Administration Regulations (15 CFR parts 730-774) are amended as 
follows:

PART 742--[AMENDED]

0
1. The authority citation for 15 CFR part 742 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Notice of August 4, 2016, 81 FR 52587 (August 8, 2016); Notice of 
November 8, 2016, 81 FR 79379 (November 10, 2016).


0
2. Section 742.5 is amended by revising the first sentence of paragraph 
(a)(2) to read as follows:


Sec.  742.5   Missile technology.

    (a) * * *
    (2) The term ``missiles'' is defined as rocket systems (including 
ballistic missiles, space launch vehicles, and sounding rockets) and 
unmanned aerial vehicle systems (including cruise missiles, target 
drones, and reconnaissance drones) capable of delivering at least 500 
kilograms (kg) payload to a range of at least 300 kilometers (km). * * 
*
* * * * *

PART 744--[AMENDED]

0
3. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 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 20, 2016, 81 FR 3937 
(January 22, 2016); Notice of August 4, 2016, 81 FR 52587 (August 8, 
2016); Notice of September 15, 2016, 81 FR 64343 (September 19, 
2016); Notice of November 8, 2016, 81 FR 79379 (November 10, 2016); 
Notice of January 13, 2017, 82 FR 6165 (January 18, 2017).


0
4. Section 744.3 is amended:
0
a. By revising the section heading;
0
b. By revising paragraphs (a)(1), (2), (3), and the Note to paragraph 
(a) of this section;
0
c. By revising paragraph (d)(1); and
0
d. By revising paragraph (d)(2)(ii), (iii), and (v) to read as follows:


Sec.  744.3   Restrictions on certain rocket systems (including 
ballistic missiles, space launch vehicles and sounding rockets) and 
unmanned aerial vehicles (including cruise missiles, target drones and 
reconnaissance drones) end-uses.

    (a) * * *
    (1) Will be used in the design, development, production or use of 
rocket systems or unmanned aerial

[[Page 31447]]

vehicles capable of a range of at least 300 kilometers in or by a 
country listed in Country Group D:4 of Supplement No. 1 to part 740 of 
the EAR.
    (2) Will be used, anywhere in the world except by governmental 
programs for nuclear weapons delivery of NPT Nuclear Weapons States 
that are also members of NATO, in the design, development, production 
or use of rocket systems or unmanned aerial vehicles, regardless of 
range capabilities, for the delivery of chemical, biological, or 
nuclear weapons; or
    (3) Will be used in the design, development, production or use of 
any rocket systems or unmanned aerial vehicles in or by a country 
listed in Country Group D:4, but you are unable to determine:
    (i) The characteristics (i.e., range capabilities) of the rocket 
systems or unmanned aerial vehicles, or
    (ii) Whether the rocket systems or unmanned aerial vehicles, 
regardless of range capabilities, will be used in a manner prohibited 
under paragraph (a)(2) of this section.

    Note to paragraph (a) of this section: For the purposes of this 
section, ``Rocket Systems'' include, but are not limited to, 
ballistic missiles, space launch vehicles, and sounding rockets. 
Also, for the purposes of this section, ``unmanned aerial vehicles'' 
include, but are not limited to, cruise missiles, target drones and 
reconnaissance drones.

* * * * *
    (d) * * *
    (1) Applications to export, reexport or transfer (in-country) the 
items subject to this section will be considered on a case-by-case 
basis to determine whether the export, reexport or transfer (in-
country) would make a material contribution to the proliferation of 
certain rocket systems, or unmanned aerial vehicles. When an export, 
reexport or transfer (in-country) is deemed to make a material 
contribution, the license will be denied.
    (2) * * *
    (ii) The significance of the export, reexport or transfer in terms 
of its contribution to the design, development, production or use of 
certain rocket systems or unmanned aerial vehicles;
    (iii) The capabilities and objectives of the rocket systems or 
unmanned aerial vehicles of the recipient country;
* * * * *
    (v) The types of assurances or guarantees against design, 
development, production, or use for certain rocket system or unmanned 
aerial vehicle delivery purposes that are given in a particular case; 
and
* * * * *

PART 772--[AMENDED]

0
5. The authority citation for 15 CFR part 772 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783 Notice of August 8, 
2016, 81 FR 52587 (August 8, 2016).

0
6. Section 772.1 is amended by revising the definitions of ``missiles'' 
and ``unmanned aerial vehicle (``UAV'')'' to read as follows:


Sec.  772.1   Definitions of terms as used in the Export Administration 
Regulations (EAR).

* * * * *
    ``Missiles''. (All) Rocket systems (including ballistic missiles, 
space launch vehicles, and sounding rockets) and unmanned aerial 
vehicle systems (including cruise missiles, target drones, and 
reconnaissance drones) ``capable of'' delivering at least 500 kilograms 
payload to a range of at least 300 kilometers. See Sec.  746.3 for 
definition of a ``ballistic missile'' to be exported or reexported to 
Iraq or transferred within Iraq.
* * * * *
    ``Unmanned aerial vehicle'' (``UAV''). (Cat 9) Any ``aircraft'' 
capable of initiating flight and sustaining controlled flight and 
navigation without any human presence on board.

    Note to definition of ``Unmanned aerial vehicle'' (``UAV''):  
For the purposes of Sec.  744.3 of the EAR, unmanned air vehicles, 
which are the same as ``unmanned aerial vehicles,'' include, but are 
not limited to, cruise missiles, target drones and reconnaissance 
drones.

* * * * *

PART 774--[AMENDED]

0
7. The authority citation for 15 CFR part 774 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 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; 42 U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C. 
4305; 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 4, 2016, 81 FR 52587 (August 8, 
2016).

0
8. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms'' and ``Toxins,'' Export Control Classification Number 
(ECCN) 1C107 is amended:
0
a. By revising the introductory text of ``items'' paragraph d. in the 
List of Items Controlled section; and
0
b. By adding paragraph d.3., including a Note and a Technical Note to 
1C107.d.3., to read as follows:

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

* * * * *
1C107 Graphite and ceramic materials, other than those controlled by 
1C007, which can be machined to any of the following products as 
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    d. High-temperature ceramic materials, useable in rockets, 
missiles, and unmanned aerial vehicles capable of achieving a 
``range'' equal to or greater than 300 km, as follows:
* * * * *
    d.3. Bulk machinable ceramic composite materials consisting of 
an `Ultra High Temperature Ceramic (UHTC)' matrix with a melting 
point equal to or greater than 3000 [deg]C and reinforced with 
fibers or filaments, usable for missile components (such as nose 
tips, re-entry vehicles, leading edges, jet vanes, control surfaces, 
or rocket motor throat inserts).

    Note:  ECCN 1C107.d.3. does not control `Ultra High Temperature 
Ceramic (UHTC)' materials in non-composite form.


    Technical Note:  `Ultra High Temperature Ceramics (UHTC)' 
includes: Titanium diboride (TiB2), zirconium diboride 
(ZrB2), niobium diboride (NbB2), hafnium 
diboride (HfB2), tantalum diboride (TaB2), 
titanium carbide (TiC), zirconium carbide (ZrC), niobium carbide 
(NbC), hafnium carbide (HfC), tantalum carbide (TaC).

* * * * *

0
9. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms'' and ``Toxins,'' Export Control Classification Number 
(ECCN) 1C111 is amended by revising ``items'' paragraph b.2. in the 
List of Items Controlled section to read as follows:

1C111 Propellants and constituent chemicals for propellants, other 
than those specified in 1C011, as follows (see List of Items 
Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.2. Hydroxy-terminated polybutadiene (including hydroxyl-
terminated polybutadiene) (HTPB) (CAS 69102-90-5), except for 
hydroxyl-terminated polybutadiene as specified in USML Category

[[Page 31448]]

V (see 22 CFR 121.1) (also see Related Controls Note #1 for this 
ECCN);
* * * * *

0
10. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 2--Materials Processing, Export Control Classification Number 
(ECCN) 2B018 is amended by revising the ``MT'' paragraph in the table 
in the License Requirements section to read as follows:

2B018 Equipment on the Wassenaar Arrangement Munitions List.

License Requirements

Reason for Control: * * *

 
                                              Country chart  (See Supp.
                Control(s)                       No. 1 to  part 738)
 
 
                                * * * * *
MT applies to specialized machinery,        MT Column 1
 equipment, and gear for producing rocket
 systems (including ballistic missiles,
 space launch vehicles, and sounding
 rockets) and unmanned aerial vehicle
 systems (including cruise missiles,
 target drones, and reconnaissance drones)
 usable in systems that are controlled for
 MT reasons including their propulsion
 systems and components, and pyrolytic
 deposition and densification equipment.
 
                                * * * * *
 

* * * * *

0
11. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 2--Materials Processing, Export Control Classification Number 
(ECCN) 2B109 is amended by revising Technical Note paragraph 2. at the 
end of the ``items'' paragraph in the List of Items Controlled section 
to read as follows:

2B109 Flow-forming machines, other than those controlled by 2B009, 
and ``specially designed'' ``parts'' and ``components'' therefor.
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *

    Technical Notes: 

* * * * *
    2. 2B109 does not control machines that are not usable in the 
``production'' of propulsion ``parts,'' ``components'' and equipment 
(e.g., motor cases and interstages) for ``missiles.''


0
12. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Telecommunications and ``Information Security,'' Part 1--
Telecommunications, Export Control Classification Number (ECCN) 5A101 
is amended:
0
a. By revising the heading, and
0
b. By revising the Note at the end of the ``items'' paragraph to read 
as follows:

5A101 Telemetering and telecontrol equipment, including ground 
equipment, designed or modified for unmanned aerial vehicle 
(including cruise missiles, target drones, and reconnaissance 
drones) or rocket systems (including ballistic missiles, space 
launch vehicles, and sounding rockets) capable of a maximum 
``range'' equal to or greater than 300 km.
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *

    Note: ECCN 5A101 does not include items not designed or modified 
for unmanned aerial vehicles (including cruise missiles, target 
drones, and reconnaissance drones) or rocket systems (including 
ballistic missiles, space launch vehicles and sounding rockets) 
capable of a maximum ``range'' equal to or greater than 300km (e.g., 
telemetry circuit cards limited by design to reception only and 
designed for use in personal computers).


0
13. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 7--Navigation and Avionics, Export Control Classification 
Number (ECCN) 7A103 is amended:
0
a. By removing the Related Controls paragraph (2) and redesignating 
Related Controls paragraph (3) as Related Controls paragraph (2) in the 
List of Items Controlled section;
0
b. By revising the Related Definitions paragraph in the List of Items 
Controlled section;
0
c. By revising the introductory text of ``items'' paragraph a. in the 
List of Items Controlled section; and
0
d. By adding a Note 3 to ``items'' paragraph a. in the List of Items 
Controlled section to read as follows:

7A103 Instrumentation, navigation equipment and systems, other than 
those controlled by 7A003, and ``specially designed'' ``parts'' and 
``components'' therefor, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
    Related Definitions: `Inertial measurement equipment or systems' 
specified in 7A103.a. incorporate accelerometers or gyros to measure 
changes in velocity and orientation in order to determine or 
maintain heading or position without requiring an external reference 
once aligned.

Items:

    a. `Inertial measurement equipment or systems' using 
accelerometers or gyros controlled by 7A001, 7A002, 7A101 or 7A102, 
and ``specially designed'' ``parts'' and ``components'' therefor;
* * * * *

    Note 3: 7A103.a. includes Attitude and Heading Reference Systems 
(AHRSs), gyrocompasses, Inertial Measurement Units (IMUs), Inertial 
Navigations Systems (INSs), Inertial Reference Systems (IRSs), and 
Inertial Reference Units (IRUs).

* * * * *

0
14. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, Export Control Classification 
Number (ECCN) 9A101 is amended by revising the Related Controls 
paragraph in the List of Items Controlled section to read as follows:

9A101 Turbojet and turbofan engines, other than those controlled by 
9A001, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: 9A101.b controls only engines for non-military 
unmanned aerial vehicles [UAVs] or remotely piloted vehicles [RPVs], 
and does not control other engines designed or modified for use in 
``missiles'', which are ``subject to the ITAR'' (see 22 CFR parts 
120 through 130).
* * * * *

0
15. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, add, between entries for Export 
Control Classification Numbers (ECCNs) 9B010 and 9B105, ECCN 9B104 to 
read as follows:

9B104 `Aerothermodynamic test facilities', usable for rockets, 
missiles, or unmanned aerial vehicles capable of achieving a 
``range'' equal to or greater than 300 km and their subsystems, and 
having an electrical power supply equal to or greater than 5 MW or a 
gas supply total pressure equal to or greater than 3 MPa.

License Requirements

Reasons for Control: MT, AT

 
                                            Country Chart (See Supp. No.
                Control(s)                         1 to  part 738)
 
MT applies to entire entry................  MT Column 1
AT applies to entire entry................  AT Column 1
 


[[Page 31449]]

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

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

List of Items Controlled

Related Controls: See ECCNs 9D101, 9E001 and 9E002.
Related Definitions: `Aerothermodynamic test facilities' include 
plasma arc jet facilities and plasma wind tunnels for the study of 
thermal and mechanical effects of airflow on objects.
Items:

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


0
16. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, Export Control Classification 
Number (ECCN) 9D101 is amended by revising the heading to read as 
follows:

9D101 ``Software'' ``specially designed'' or modified for the 
``use'' of commodities controlled by 9B104, 9B105, 9B106, 9B116, or 
9B117.

* * * * *

0
17. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, Export Control Classification 
Number (ECCN) 9D104 is amended by adding a Note to the ``items'' 
paragraph in the List of Items Controlled section to read as follows:

9D104 ``Software'' specially designed or modified for the ``use'' of 
equipment controlled by ECCN 9A001, 9A012 (for MT controlled items 
only), 9A101 (except for items in 9A101.b that are ``subject to the 
ITAR,'' see 22 CFR part 121), or 9A106.d.

* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *

    Note:  For a manned aircraft converted to operate as an unmanned 
aerial vehicle specified in 9A012 and controlled for MT reasons, 
9D104 includes ``software'', as follows:
    a. ``Software'' ``specially designed'' or modified to integrate 
the conversion equipment with the aircraft system functions;
    b. ``Software'' ``specially designed'' or modified to operate 
the aircraft as an unmanned aerial vehicle.



0
18. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, Export Control Classification 
Number (ECCN) 9E001 is amended by revising the ``MT'' paragraph in the 
table in the License Requirements section to read as follows:

9E001 ``Technology'' according to the General Technology Note for 
the ``development'' of equipment or ``software'', controlled by 
9A001.b, 9A004, 9A012, 9B (except for ECCNs 9B604, 9B610, 9B619, 
9B990 and 9B991), or ECCN 9D001 to 9D004, 9D101, or 9D104.

License Requirements

Reason for Control: * * *

 
                                            Country chart (See Supp. No.
                Control(s)                         1 to part 738)
 
 
                                * * * * *
MT applies to ``technology'' for items      MT Column 1
 controlled by 9A012, 9B001, 9B002, 9B003,
 9B004, 9B005, 9B007, 9B104, 9B105, 9B106,
 9B115, 9B116, 9B117, 9D001, 9D002, 9D003,
 or 9D004 for MT reasons.
 
                                * * * * *
 

* * * * *

0
19. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, Export Control Classification 
Number (ECCN) 9E002 is amended by revising the ``MT'' paragraph in the 
table in the License Requirements section to read as follows:

9E002 ``Technology'' according to the General Technology Note for 
the ``production'' of ``equipment'' controlled by ECCN 9A001.b, 
9A004 or 9B (except for ECCNs 9B117, 9B604, 9B610, 9B619, 9B990, and 
9B991).

License Requirements

Reason for Control: * * *

 
                                              Country chart  (See Supp.
                Control(s)                       No. 1 to part 738)
 
 
                                * * * * *
MT applies to ``technology'' for equipment  MT Column 1
 controlled by 9B001, 9B002, 9B003, 9B004,
 9B005, 9B007, 9B104, 9B105, 9B106, 9B115
 or 9B116 for MT reasons.
 
                                * * * * *
 

* * * * *

0
20. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, Export Control Classification 
Number (ECCN) 9E101 is amended by revising the heading to read as 
follows:

9E101 ``Technology'' according to the General Technology Note for 
the ``development'' or ``production'' of commodities or ``software'' 
controlled by ECCN 9A012 (applies only to ``production'' 
``technology'' for MT-controlled items in 9A012), 9A101 (except for 
items in 9A101.b that are ``subject to the ITAR,'' see 22 CFR part 
121), 9A106.d or .e, 9A110 (for items that are ``specially 
designed'' for non-military unmanned aerial vehicles controlled by 
9A012), 9C110, 9D101, or 9D104.
* * * * *

0
21. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9--Aerospace and Propulsion, Export Control Classification 
Number (ECCN) 9E102 is amended by revising the heading to read as 
follows:

9E102 ``Technology'' according to the General Technology Note for 
the ``use'' of commodities or ``software'' controlled by ECCN 9A004 
(except for items in 9A004 that are ``subject to the ITAR,'' see 22 
CFR part 121), 9A012, 9A101 (except for items in 9A101.b that are 
``subject to the ITAR,'' see 22 CFR part 121), 9A106.d or .e, 9A110 
(for items that are ``specially designed'' for non-military unmanned 
aerial vehicles controlled by 9A012), 9B105, 9B106, 9B115, 9B116, 
9D101, or 9D104.
* * * * *

    Dated: July 3, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2017-14312 Filed 7-6-17; 8:45 am]
 BILLING CODE 3510-33-P