[Federal Register Volume 86, Number 158 (Thursday, August 19, 2021)]
[Rules and Regulations]
[Pages 46590-46597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17647]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 740, 742, 743, 748, 758, and 774
[Docket No. 210810-0160]
RIN 0694-AF47
Control of Firearms, Guns, Ammunition and Related Articles the
President Determines No Longer Warrant Control Under the United States
Munitions List (USML)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule; technical corrections.
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SUMMARY: On January 23, 2020, the Department of Commerce published a
final rule in conjunction with a Department of State final rule to
revise Categories I (firearms, close assault weapons and combat
shotguns), II (guns and armaments), and III (ammunition/ordnance) of
the United States Munitions List (USML) and transfer items that no
longer warrant control on the USML in the International Traffic in Arms
Regulations (ITAR) to the Commerce Control List (CCL). This final rule
makes corrections and clarifications to the January 23 rule. The
changes made in this final rule are intended to make the requirements
easier to understand, interpreted consistently, and in accordance with
the intent of the Commerce January 23 rule.
DATES: This rule is effective September 20, 2021.
FOR FURTHER INFORMATION CONTACT: Steven Clagett, Office of
Nonproliferation Controls and Treaty Compliance, Nuclear and Missile
Technology Controls Division, tel. (202) 482-1641 or email
[email protected].
SUPPLEMENTARY INFORMATION:
Background
On January 23, 2020, the Department of Commerce published the final
rule, Control of Firearms, Guns, Ammunition and Related Articles the
President Determines No Longer Warrant Control Under the United States
Munitions List (USML) (85 FR 4136) (referred to henceforth as the
``Commerce January 23 rule'') in conjunction with a Department of State
final rule to revise Categories I, II, and III of the USML in the ITAR
(85 FR 3819) (referred to henceforth as the ``State January 23 rule'').
The Department of Commerce in issuing the January 23 rule described how
articles the President determined no longer warrant control under USML
Category I--Firearms, Close Assault Weapons and Combat Shotguns;
Category II--Guns and Armament; and Category III--Ammunition/Ordnance
were to be controlled on the CCL of the Export Administration
Regulations (EAR). The Commerce January 23 rule was published in
conjunction with the State January 23 rule, issued by the Department of
State, Directorate of Defense Trade Controls (DDTC), completing the
initial review of the USML that began in 2011 and making conforming
changes to the EAR to control these items on the Commerce Control List
(CCL).
This final rule makes certain corrections and clarifications for
the changes made in the Commerce January 23 rule. These changes are
made to improve understanding of the 0x5zz Export Control
Classification Numbers (ECCNs) for items that transitioned from USML
Categories I and III to the CCL and to the associated control structure
added to the EAR. These changes are informed by BIS's experience of
licensing, classifying, and enforcing the export control requirements
specific to these items. These changes are also informed by BIS's
experience of conducting outreach and answering questions from the
public on the changes made to the EAR in the Commerce January 23 rule.
The changes made in this final rule are intended to make the
requirements easier to understand, provide for consistent
interpretation, and ensure the requirements are in accordance with the
intent of the Commerce January 23 rule.
Corrections and Clarifications
In Sec. 740.9(b) (Exports of items temporarily in the United
States), this final rule removes the last sentence of the introductory
text of paragraph (b)(1) and adds that same sentence as introductory
text to paragraph (b). This
[[Page 46591]]
sentence applies to all of paragraph (b), and so needed to be placed in
the introductory text of paragraph (b) instead of paragraph (b)(1) to
clarify the scope of its application.
In Sec. 742.17 (Exports of firearms to OAS member countries), this
final rule revises the cross reference to Sec. 748.12(d)(4) by
updating that to reference paragraph (d)(3) instead of (d)(4).
Paragraph (d)(4) does not exist and paragraph (d)(3) is what is
intended in the described cross reference to Sec. 748.12.
In Sec. 743.4 (Conventional arms reporting), this final rule
removes the penultimate sentence of paragraph (a). This final rule
removes this sentence to conform with the clarification made to Sec.
758.1(g)(4)(ii) that this requirement only applies when a filer is
following the alternative submission method for conventional arms
reporting.
In Sec. 743.4, this final rule revises the second sentence of
paragraph (h) to remove the phrase `six character ECCN classification
(i.e., 0A501.a or 0A501.b)' and adds in its place the phrase `items
paragraph classification (i.e., .a, or .b) for ECCN 0A501.' This change
is made to conform with the change made to Sec. 758.1(g)(4)(ii) to
reduce the number of characters to be included in the Commodity
description block to identify ECCN 0A501.a or .b firearms under the
alternative submission method under paragraph (h).
In Sec. 748.12 (Firearms import certificate or import permit),
this final rule revises paragraph (b)(1) by removing the reference to
supplement no. 6 to part 748. Previously, the second parenthetical
phrase in paragraph (b)(1) caused confusion for some exporters by
incorrectly referencing supplement no. 6, which is reserved. To avoid
this confusion, this final rule clarifies Sec. 748.12(b)(1) by
removing the parenthetical phrase that refers to supplement no. 6 to
part 748. As an additional conforming change, in supplement no. 6 to
part 748, this final rule revises the supplement to remove the heading
and bracketed text to avoid confusion for some exporters. This change
is made to supplement no. 6 to part 748 because the heading and
bracketed text is unnecessary for a reserved supplement. However,
because part 748 includes supplement nos. 7 to 9, this final rule
continues to reserve supplement no. 6, as a placeholder for future use.
In Sec. 748.12(d) (Procedures for using document with license
application), this final rule revises paragraph (d)(3) to add a new
Note 2. New Note 2 clarifies that license applications for exports and
reexports to an Organization of American States (OAS) member country
must include the initial Inter-American Convention Against the Illicit
Manufacturing of and Trafficking in Firearms, Ammunition, Explosives,
and other Related Materials (Firearms Convention) (FC) Import
Certificate. This note also clarifies that all BIS licenses for ECCNs
0A501 and 0A505 commodities will include a standard rider that requires
that the applicant/exporter have a current FC Import Certificate on
file prior to export. The note clarifies that while FC Import
Certificates are usually valid for 1 year, BIS licenses are valid for 4
years. This clarification addresses a common question that BIS has
received regarding the validity period of FC Import Certificates as
compared to the validity period of BIS licenses. This note clarifies
that it is the responsibility of the exporter to have a current copy of
the FC import certificate prior to making an export under the
authorization of the license.
Also in Sec. 748.12(e) (Requirement to obtain an import
certificate or permit for other than OAS member states), this final
rule adds a new Note 3 to paragraph (e)(3). New Note 3 clarifies the
requirements for BIS license applications for ECCNs 0A501 and 0A505
commodities when the license application is not for exports to an OAS
country. Note 3 clarifies that license applicants for exports and
reexports to countries requiring that a government-issued certificate
or permit be obtained prior to importing the commodity must have the
initial government-issued certificate or permit prior to any export
under BIS license. Note 3, similar to Note 2, notes the usual, shorter
validity periods of government-issued certificate or permit compared to
the four year validity period of BIS licenses and clarifies that the
applicant/exporter must have a current government-issued certificate or
permit on file prior to export under the license. The rider included on
these licenses also addresses the scenario where if subsequently a
foreign government decides a government issued certificate or permit is
required, the existing license would already take that into account and
require the exporter or reexporter to obtain the government-issued
certificate or permit prior to making the export or reexport. Lastly,
as a conforming change, this final rule redesignates Note 2 to
paragraph (e) as Note 4 to paragraph (e).
In Sec. 758.1 (The electronic export information (EEI) filing to
the automated export system (AES)), this final rule revises paragraph
(g)(4)(ii) (Identifying end item firearms by ``items'' level
classification or other control descriptor in the EEI filing in AES),
to make two clarifications. The first change clarifies that the
requirement in paragraph (g)(4)(ii) is only applicable when an exporter
will use the alternative submission method under Sec. 743.4(h) for
conventional arms reporting. BIS is making this change in response to
questions from the public asking for clarification because they prefer
using the standard method under Sec. 743.4(h) or, as a result of how
their software systems are set up for filing EEI in AES, that meeting
the requirement under paragraph (g)(4)(ii) is not possible. This
clarification will make it clear that when relying on the standard
method, this additional EEI filing requirement in AES is not
applicable. The second clarification that BIS makes is to shorten the
text required in the commodity description block in the EEI filing in
AES. Instead of requiring the six character ECCN classification (i.e.,
0A501.a or 0A501.b), or, for shotguns controlled under 0A502, the
phrase `0A502 barrel length less than 18 inches,' filers will now be
required, when relying on the alternative submission method, to insert
`.a' or `.b' for 0A501, or `SB' instead of `0A502 barrel length less
than 18 inches'' in the commodity description block in the EEI filing
in AES. This change is possible because the ECCN is already included in
another block in the EEI filing in AES. BIS can therefore shorten the
required text, which will assist filers by eliminating problems related
to the limited number of characters allowed in the commodity
description block, while continuing to allow BIS to identify the items
as firearms and shotguns in the AES data.
In ECCN 0A018, this final rule removes the ECCN. No items are
currently in this ECCN 0A018, so this change is limited to removing the
heading and the cross reference to 0A505 for ``parts'' and
``components'' for ammunition that, immediately prior to March 9, 2020,
were classified under 0A018.b. Because the January 23 rule has been
effective for over one year, this cross reference is no longer needed.
In ECCN 0A501, this final rule makes thirteen changes to the
control text for clarity. These changes include adding additional notes
and technical notes, as well as other clarifications to the text to
make the control parameters easier to understand and, therefore,
interpreted consistently. These corrections and clarifications to 0A501
are described as follows:
This final rule adds a new Technical Note to 0A501.a. This
technical note clarifies that the non-automatic and
[[Page 46592]]
semi-automatic firearms described in 0A501 includes those chambered for
the Browning Machine Gun (BMG) cartridge.
This final rule revises 0A501.c to add the term `striker' after the
term `hammers' in two places to indicate that the term is synonymous
for purposes of this control parameter.
This final rule adds a new Technical Note to 0A501.c to clarify
that barrel blanks that have reached a stage in manufacturing in which
they are either chambered or rifled are controlled by 0A501.c.
This final rule revises 0A501.d to remove the phrase `greater than
16 rounds' and add in its place the phrase `17 to 50 rounds' for
clarity.
This final rule revises Note 2 to 0A501.d to add a cross reference
to the USML to specify that magazines with a capacity greater than 50
rounds are controlled under USML Category I.
This final rule adds a new Note 3 to 0A501.e. This note clarifies
that the term `frames (receivers)' as used under 0A501.e refers to any
``part'' or ``component'' of the firearm that has or normally has a
serial number when required by law. This new note also clarifies that
the scope of 0A501.e for frames (receivers) is synonymous with a
``part'' or ``component'' that ATF regulates as a ``firearm.''
This final rule revises ECCN 0A501.y.1 by adding a parenthetical
phrase after the term stocks to clarify that stocks include adjustable,
collapsible, blades and braces. This final rule also adds the terms
`handguards' and `forends' to ECCN 0A501.y.1 to clarify that stocks
also include the handguard and the forend. Both of these amendments to
ECCN 0A501.y.1 are clarifications, not additions to the parameters of
the items controlled under the entry. As a conforming change to the
addition of striker to ECCN 0A501.c, this final rule adds the term
`striker' after the term `hammers' in the parenthetical phrase for the
exclusions from 0A501.y.1.
This final rule removes and reserves ECCN 0A501.y.2 to .y.5. This
change is made because the vast majority of items that would otherwise
meet the control parameters under 0A501.y.2 to y.5 were subject to the
EAR prior to March 9, 2020 (the effective date of the Commerce January
23 rule) and are designated as EAR99 on the basis of paragraph (b)(1)
of ``specially designed.'' Based on BIS official classifications since
January 23, 2020, no additional commodities have been identified that
would warrant keeping these commodities in 0A501.y. Therefore, the
items that are controlled under ECCN 0A501.y.2 to y.5 are those
commodities that meet the control parameters and were moved to the EAR
on March 9, 2020. However, the items identified as being classified
under 0A501.y.2 to y.5 since January 23, 2020 have not substantively
differed from the other items that were previously subject to the EAR
and designated as EAR99. In addition, trying to keep track of which
commodities are designated EAR99 and which are controlled in 0A501.y.2
to y.5 has created unneeded burdens on industry and the U.S.
Government, so it is warranted to remove these .y paragraphs and treat
these commodities all as EAR99.
This final rule adds a Technical note 2 to 0A501 to specify that
for purposes of 0A501.e, receivers incorporating any other controlled
``part'' or ``component,'' such as a barrel under 0A501.c, remain
controlled under 0A501.e. BIS has received questions from the public on
the applicability of 0A501.e when a receiver incorporates a ``part'' or
``component'' from one of the items captured under other 0A501
paragraphs. This new Technical Note 2 to 0A501 will make the
relationship between the different items under 0A501 clear.
This final rule revises Note 3 to 0A501 to redesignate the note as
Note 4 to 0A501 and to add the word `and' between the terms `muzzle
loading' and `black powder.' This clarification is made because some
muzzle loaders use black powder and some muzzle loaders use smokeless
powder, and both are subject to the guidance in the Note.
The final rule in Note 4 to 0A501 redesignates the note as Note 5
to 0A501 and replaces the phrase `later than' with the word `post' for
clarity. In addition, this final rule adds the word `and' between the
terms `muzzle loading' and `black powder' because, as noted above, some
muzzle loaders use black powder and some muzzle loaders use smokeless
powder, and both are subject to the guidance in the Note.
This final rule adds a new Note 6 to 0A501, as a conforming change
to the removal of ECCN 0A501.y.2 to .y.5, to specify these ``parts''
and ``components'' previously controlled under 0A501.y.2 to y.5 are
designated as EAR99. This note also eliminates the confusion regarding
whether these ``parts'' or ``components'' are ``specially designed''
for purposes of 0A501.x.
This final rule adds a Note 7 to 0A501 to clarify how kits of
commodities that contain ``parts'' and ``components'' with different
classifications under 0A501 should be classified. This note clarifies
that the kit should be classified based on the classification of the
most restrictive ``part'' or ``component'' included in the kit. This
guidance is based on existing BIS classification practice, but adding
the new Note 7 to 0A501 will make this clear and hopefully reduce the
number of questions that BIS receives specific to this issue. Note 7 to
0A501 also clarifies that a complete firearm disassembled in kit form
is controlled as a firearm.
In ECCN 0A505, this final rule makes nine changes to the control
text for clarity. These changes include adding additional notes,
technical notes, or otherwise clarifying or adding text, e.g., adding a
new related definition, to make the control parameters easier to
understand and interpreted consistently. These corrections and
clarifications to 0A505 are as follows:
This final rule adds an ECCN-specific definition of `marking
rounds' in the Definitions paragraph in the List of Items Controlled
section of ECCN 0A505. This definition clarifies that `marking rounds'
are non-lethal. The definition also clarifies what `marking rounds' are
typically used for and the types of materials used in `marking rounds.'
This final rule revises ECCN 0A505.b to add the phrase `any
material' to the end of the parenthetical phrase that provides
technical parameters for the types of buckshot controlled. The
inclusion of the phrase `any material' will clarify that 0A505.b
controls plastic and rubber as well as metal buckshot that meet the
control criteria, including the rubber/plastic (less lethal) buckshot
rounds used by law enforcement. Also in 0A505.b, this final rule adds
shotgun shells that contain only, or are for the dispersion of,
chemical irritants to paragraph .b to clarify that such shells are
controlled with buckshot shotgun shells under paragraph .b. This final
rule removes shotgun shells containing only chemical irritants from
ECCN 1A984 (as described further below) and adds them to 0A505.b where
they will be controlled for crime control (CC Column 1), and United
Nations (UN) reasons for control. Because of the controls required on
shotgun shells containing only chemical irritants, it is more
appropriate to control them under 0A505.b, where they will have the
same level of control as they did under 1A984, than under 0A505.c.
This final rule removes Note 1 to ECCN 0A505.c. Note 1 is no longer
needed because the shotguns shells previously controlled under 1A984
are being moved by this final rule to 0A505.b, eliminating the need for
a cross reference to 1A984 in 0A505.c. As 0A505.c is controlled for UN
and AT reasons only, it was not appropriate to move the shotgun shells
from 1A984 to
[[Page 46593]]
0A505.c, because the level of control for 1A984 items is higher than
the level of control for 0A505.c items. Therefore, this rule moves the
shotguns shells from 1A984 to 0A505.b where they will continue to be
controlled at the same level.
This final rule revises ECCN 0A505.d to add a reference to 0A502 to
clarify that the blank ammunition controlled under 0A505.d includes
blank ammunition for items controlled under 0A502, provided the
ammunition is also not enumerated in USML Category III.
This final rule also revises ECCN 0A505.d to add a technical note
to clarify that `marking rounds' that have paint or dye as the
projectile are controlled under 0A505.d. As noted above, this rule also
added a Related Definition for `marking rounds;' the new definition and
this new technical note to 0A505.d will enhance understanding of the
controls under 0A505 for `marking rounds.'
This final rule revises ECCN 0A505.x to remove the reference to
paragraph .d. The reference is redundant to the phrase `or the CCL,'
which includes 0A505.d.
This final rule redesignates Note 2 to 0A505.x, Note 3 to 0A505.x,
and Note 4 0A505 as Note 1 to 0A505.x, Note 2 to 0A505.x and Note 3 to
0A505, respectively, as conforming changes to the removal of Note 1 to
0A505.c.
This final rule revises newly redesignated Note 1 to 0A505.x (prior
to this rule designated as Note 2 to 0A505.x), to include, at the end
of the note, the term `frangible projectiles' after the phrase `copper
projectiles.' This change will clarify that the ``parts'' and
``components'' under 0A505.x include `frangible projectiles.' Frangible
projectiles are not made from a lead projectile covered with a copper
jacket, but rather are produced with composite materials of tungsten,
copper, or tin utilizing an injection molding or powder metallurgical
production process.
This final rule revises newly redesignated Note 3 to 0A505 (prior
to this rule designated as Note 4 to 0A505), by removing the word
`lead' from the term `lead shot' and adding in its place the word
`metal.' This clarification to the control parameter addresses the fact
that steel and bismuth shot are also used for hunting loads, so the
control parameter should not be limited to lead as the only material.
The use of the term `metal shot' instead of `lead shot' will clarify
that other types of shot are also within the control parameter, as was
intended by the Commerce January 23 rule. This final rule also revises
the newly redesignated Note 3 to 0A505 to remove the term `blank' and
adds in its place the correct term `drill.'
This final rule adds a new Note 4 to ECCN 0A505 to clarify the
items paragraph under which shotgun shells that contain two or more
balls/shot larger than .24-inch are controlled. This note clarifies
that such shotgun shells are controlled under 0A505.b.
In ECCN 0B501, this final rule clarifies the control text of ECCN
0B501.d by deleting the word `spill' in the phrase `spill boring.' This
final rule also adds the term `reaming' before the term `machines.'
These changes do not change the intended scope of control. These
changes are made for clarity and for consistency with BIS issued
classifications for these types of machines.
In ECCN 0E505, this final rule makes a correction to the text in
the RS Control paragraph in the License Requirements section. The
phrase `entire entry except' was inadvertently included in the RS
Control paragraph in the Commerce January 23 rule, which created
confusion regarding the intended scope of the RS license requirement.
This final rule removes the unintended phrase `entire entry except'
from the RS license requirement to clarify the scope of the RS license
requirement under ECCN 0E505.
In ECCN 1A984, this final rule revises the heading of 1A984 to
remove the phrase `unless the shotgun shells contain only chemical
irritant' in the parenthetical phrase that follows the phrase `and
other pyrotechnic articles.' This final rule moves shotgun shells that
contain only chemical irritants to ECCN 0A505.b, as described above
under the description of changes of 0A505.b.
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (codified, as
amended, at 50 U.S.C. Sections 4801-4852). ECRA provides the legal
basis for BIS's principal authorities and serves as the authority under
which BIS issues this rule.
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, distributive 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 determined to be significant for
purposes of Executive Order 12866.
2. 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 OMB control
number.
This final regulation involves one collection currently approved by
OMB under this collection and control number: The U.S. Census Bureau
collection for the Automated Export System (AES) Program (control
number 0607-0152). This final rule will also affect the information
collection under control number 0607-0152, for filing EEI in AES
because of one change this final rule makes to part 758 of the EAR.
This rule revises Sec. 758.1(g)(4)(ii) to shorten the information that
is required to be included when relying on the alternative method for
identifying end item firearms by ``items'' level classification or
other control descriptor in the EEI filing in AES to make it easier to
fit this identifying information in the Commodity description block in
the EEI filing in AES. This change is not anticipated to result in a
change in the burden under this collection.
Any comments regarding these collections of information, including
suggestions for reducing the burden, may be submitted online at https://www.reginfo.gov/public/do/PRAMain. Find the particular information
collection by using the search function and entering either the title
of the collection or the OMB Control Number.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018 (50 U.S.C. 4801-4852), this action is exempt from the
Administrative Procedure Act (5 U.S.C. 553) requirements for notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are
[[Page 46594]]
not applicable. Accordingly, no regulatory flexibility analysis is
required and none has been prepared.
List of Subjects
15 CFR Parts 740, 748, and 758
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 743
Administrative practice and procedure, Reporting and recordkeeping
requirements.
15 CFR Part 774
Exports, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, parts 740, 742, 743, 748,
758, and 774 of the Export Administration Regulations (15 CFR parts
730-774) are amended as follows:
PART 740--LICENSE EXCEPTIONS
0
1. The authority citation for part 740 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR,
2001 Comp., p. 783.
0
2. Section 740.9 is amended by:
0
a. Adding introductory text to paragraph (b); and
0
b. Removing the last sentence of paragraph (b)(1) introductory text.
The addition reads as follows:
Sec. 740.9 Temporary imports, exports, reexports, and transfers (in-
country) (TMP).
* * * * *
(b) Exports of items temporarily in the United States. No provision
of this paragraph (b), other than paragraph (b)(3), (4), or (5), may be
used to export firearms controlled by ECCN 0A501.a, .b, or shotguns
with a barrel length less than 18 inches controlled in ECCN 0A502.
* * * * *
PART 742--CONTROL POLICY--CCL BASED CONTROLS
0
3. The authority citation for part 742 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 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 November 12, 2020, 85 FR 72897 (November
13, 2020).
0
4. Section 742.17 is amended by revising paragraph (g) to read as
follows:
Sec. 742.17 Exports of firearms to OAS member countries.
* * * * *
(g) Validity period for licenses. Although licenses generally will
be valid for a period of four years, your ability to ship items that
require an FC Import Certificate or equivalent official document under
this section may be affected by the validity of the FC Import
Certificate or equivalent official document (see Sec. 748.12(d)(3) of
the EAR).
PART 743--SPECIAL REPORTING AND NOTIFICATION
0
5. The authority citation for part 743 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 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; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 223; 78 FR
16129.
0
6. Section 743.4 is amended by removing the penultimate sentence of
paragraph (a) introductory text and revising paragraph (h).
The revision reads as follows:
Sec. 743.4 Conventional arms reporting.
* * * * *
(h) Alternative submission method. This paragraph (h) describes an
alternative submission method for meeting the conventional arms
reporting requirements of this section. The alternative submission
method requires the exporter, when filing the required EEI submission
in AES, pursuant to Sec. 758.1(b)(9) of the EAR, to include the items
paragraph classification (i.e., .a, or .b) for ECCN 0A501 as the first
text to appear in the Commodity description block. If the exporter
properly includes this information in the EEI filing in AES, the
Department of Commerce will be able to obtain that export information
directly from AES to meet the U.S. Government's commitments to the
Wassenaar Arrangement and United Nations for conventional arms
reporting. An exporter that complies with the requirements in Sec.
758.1(g)(4)(ii) of the EAR does not have to submit separate annual and
semi-annual reports to the Department of Commerce pursuant to this
section.
* * * * *
PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND
DOCUMENTATION
0
7. The authority citation for part 748 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of
August 6, 2021, 86 FR 43901 (August 10, 2021).
0
8. Section 748.12 is amended by:
0
a. Revising paragraphs (b)(1) and (d)(3);
0
b. Redesignating Note 2 to paragraph (e)(3) as Note 4 to paragraph
(e)(3); and
0
c. Adding Note 3 to paragraph (e)(3).
The revisions and addition read as follows.
Sec. 748.12 Firearms import certificate or import permit.
* * * * *
(b) * * *
(1) Applicants must request that the importer (e.g., ultimate
consignee or purchaser) obtain the FC Import Certificate or an
equivalent official document from the government of the importing
country, and that it be issued covering the quantities and types of
firearms and related items that the applicant intends to export. Upon
receipt of the FC Import Certificate, its official equivalent, or a
copy, the importer must provide the original or a certified copy of the
FC Import Certificate or the original or a certified copy of the
equivalent official document to the license applicant.
* * * * *
(d) * * *
(3) Validity period. FC Import Certificates or equivalent official
documents issued by an OAS member country will be valid until the
expiration date on the Certificate or for a period of four years,
whichever is shorter.
Note 2 to paragraph (d)(3): Applicants for license applications
for exports and reexports to an OAS member country must submit the
initial FC Import Certificate with the license application. All BIS
licenses for ECCNs 0A501 and 0A505 commodities will include a
standard rider that requires that the applicant/exporter must have a
current FC Import Certificate on file prior to export. Note that
while FC Import Certificates are usually valid for 1 year, BIS
licenses are valid for 4 years. The text of the standard rider will
generally be as follows: ``A current, complete, accurate and valid
Firearms Convention (FC) Import Certificate (or equivalent official
document) shall be obtained, if required by the government of the
importing country, from the Ultimate Consignee and maintained in the
exporter's file prior to any export of the item(s) listed on this
license. A copy shall
[[Page 46595]]
be provided to the U.S. Government upon request. (Refer to section
742.17(b) of the EAR for guidance.)''
(e) * * *
Note 3 to paragraph (e): Applicants for license applications
for exports and reexports to countries requiring that a government-
issued certificate or permit be obtained prior to importing the
commodity must have the initial government-issued certificate or
permit prior to any export. All BIS licenses for ECCNs 0A501 and
0A505 commodities will include a standard rider that requires that
the applicant/exporter have a government-issued certificate or
permit on file prior to export. Note that while government-issued
certificates or permits are usually valid for 1 year, BIS licenses
are valid for 4 years. The text of the standard rider will generally
be as follows: ``A current, complete, accurate and valid Firearms
Convention (FC) Import Certificate (or equivalent official document)
shall be obtained, if required by the government of the importing
country, from the Ultimate Consignee and maintained in the
Exporter's file prior to any export of the item(s) listed on this
license. A copy shall be provided to the U.S. Government upon
request. (Refer to Sec. 742.17(b) of the EAR for guidance.)''
* * * * *
Supplement No. 6 to Part 748 [Removed and Reserved]
0
9. Supplement No. 6 to part 748 is removed and reserved.
PART 758--EXPORT CLEARANCE REQUIREMENTS
0
10. The authority citation for part 758 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 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.
0
11. Section 758.1 is amended by revising paragraph (g)(4)(ii) to read
as follows:
Sec. 758.1 The Electronic Export Information (EEI) filing to the
Automated Export System (AES).
* * * * *
(g) * * *
(4) * * *
(ii) Identifying end item firearms by ``items'' level
classification or other control descriptor in the EEI filing in AES.
For any export of items controlled under ECCNs 0A501.a or .b, or
shotguns with a barrel length less than 18 inches controlled under ECCN
0A502, in addition to any other required data for the associated EEI
filing when an exporter will use the alternative submission method
under Sec. 743.4(h) for conventional arms reporting, you must include
the items paragraph classification (i.e., .a, or .b) for ECCN 0A501, or
for shotguns controlled under 0A502 the letters ``SB'' for short barrel
length less than 18 inches as the first text to appear in the Commodity
description block in the EEI filing in AES. (See Sec. 743.4(h) of the
EAR for the use of this information for conventional arms reporting).
* * * * *
PART 774--THE COMMERCE CONTROL LIST
0
12. The authority citation for part 774 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(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. 1824; 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.
Supplement No. 1 to Part 774 [Amended]
0
13. In Supplement No. 1 to part 774, Category 0, remove Export Control
Classification Number (ECCN) 0A018.
0
14. In Supplement No. 1 to part 774, Category 0, revise Export Control
Classification Number (ECCN) 0A501 to read as follows:
0A501 Firearms (except 0A502 shotguns) and related commodities as
follows (see List of Items controlled).
License Requirements
Reason for Control: NS, RS, FC, UN, AT
Country chart (see supp. No.
Control(s) 1 to part 738)
NS applies to entire entry except 0A501.y. NS Column 1
RS applies to entire entry except 0A501.y. RS Column 1
FC applies to entire entry except 0A501.y. FC Column 1
UN applies to entire entry................ See Sec. 746.1 of the EAR
for UN controls
AT applies to entire entry................ AT Column 1
License Requirement Note: In addition to using the Commerce Country
Chart to determine license requirements, a license is required for
exports and reexports of ECCN 0A501.y.7 firearms to the People's
Republic of China.
List Based License Exceptions (See Part 740 for a Description of All
License Exceptions)
LVS: $500 for 0A501.c, .d, and .x.
$500 for 0A501.c, .d, .e, and .x if the ultimate destination is
Canada.
GBS: 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 this entry.
List of Items Controlled
Related Controls: (1) Firearms that are fully automatic, and
magazines with a capacity of greater than 50 rounds, are ``subject
to the ITAR.'' (2) See ECCN 0A502 for shotguns and their ``parts''
and ``components'' that are subject to the EAR. Also see ECCN 0A502
for shot-pistols. (3) See ECCN 0A504 and USML Category XII for
controls on optical sighting devices.
Related Definitions: N/A
Items:
a. Non-automatic and semi-automatic firearms equal to .50
caliber (12.7 mm) or less.
Note 1 to paragraph 0A501.a: `Combination pistols' are
controlled under ECCN 0A501.a. A `combination pistol' (a.k.a., a
combination gun) has at least one rifled barrel and at least one
smoothbore barrel (generally a shotgun style barrel).
Technical Note to 0A501.a: Firearms described in 0A501.a
includes those chambered for the .50 BMG cartridge.
b. Non-automatic and non-semi-automatic rifles, carbines,
revolvers or pistols with a caliber greater than .50 inches (12.7
mm) but less than or equal to .72 inches (18.0 mm).
c. The following types of ``parts'' and ``components'' if
``specially designed'' for a commodity controlled by paragraph .a or
.b of this entry, or USML Category I (unless listed in USML Category
I(g) or (h)): Barrels, cylinders, barrel extensions, mounting blocks
(trunnions), bolts, bolt carriers, operating rods, gas pistons,
trigger housings, triggers, hammers/striker, sears, disconnectors,
pistol grips that contain fire control ``parts'' or ``components''
(e.g., triggers, hammers/striker, sears, disconnectors) and
buttstocks that contain fire control ``parts'' or ``components.''
Technical Note to 0A501.c: Barrel blanks that have reached a
stage in manufacturing in which they are either chambered or rifled
are controlled by 0A501.c.
d. Detachable magazines with a capacity of 17 to 50 rounds
``specially designed'' for a commodity controlled by paragraph .a or
.b of this entry.
Note 2 to paragraph 0A501.d: Magazines with a capacity of 16
rounds or less are controlled under 0A501.x; for magazines with a
capacity greater than 50 rounds, see USML Category I.
e. Receivers (frames) and ``complete breech mechanisms,''
including castings, forgings, stampings, or machined items thereof,
``specially designed'' for a commodity controlled by paragraph .a or
.b of this entry.
Note 3 to 0A501.e: Frames (receivers) under 0A501.e refers to
any ``part'' or ``component'' of the firearm that has or is
customarily marked with a serial number when required by law. This
paragraph 0A501.e is synonymous with a ``part'' or ``component''
that is regulated by the Bureau of Alcohol, Tobacco, Firearms and
[[Page 46596]]
Explosives (see 27 CFR parts 447, 478, and 479,) as a firearm.
f. through w. [Reserved]
x. ``Parts'' and ``components'' that are ``specially designed''
for a commodity classified under paragraphs .a through .c of this
entry or the USML and not elsewhere specified on the USML or CCL.
y. Specific ``parts,'' ``components,'' ``accessories'' and
``attachments'' ``specially designed'' for a commodity subject to
control in this ECCN or common to a defense article in USML Category
I and not elsewhere specified in the USML or CCL as follows, and
``parts,'' ``components,'' ``accessories,'' and ``attachments''
``specially designed'' therefor.
y.1. Stocks (including adjustable, collapsible, blades and
braces), grips, handguards, or forends, that do not contain any fire
control ``parts'' or ``components'' (e.g., triggers, hammers/
striker, sears, disconnectors);
y.2 to y.5. [RESERVED]
y.6. Bayonets; and
y.7. Firearms manufactured from 1890 to 1898 and reproductions
thereof.
Technical Note 1 to 0A501: The controls on ``parts'' and
``components'' in ECCN 0A501 include those ``parts'' and
``components'' that are common to firearms described in ECCN 0A501
and to those firearms ``subject to the ITAR.''
Technical Note 2 to 0A501: A receiver with any other controlled
``part'' or ``component'' (e.g., a barrel (0A501.c), or trigger
guard (0A501.x), or stock (0A501.y.1)) is still controlled under
0A501.e.
Note 4 to 0A501: Antique firearms (i.e., those manufactured
before 1890) and reproductions thereof, muzzle loading and black
powder firearms except those designs based on centerfire weapons of
a post 1937 design, BB guns, pellet rifles, paint ball, and all
other air rifles are EAR99 commodities.
Note 5 to 0A501: Muzzle loading and black powder firearms with
a caliber less than 20 mm that were manufactured post 1937 that are
used for hunting or sporting purposes that were not ``specially
designed'' for military use and are not ``subject to the ITAR'' nor
controlled as shotguns under ECCN 0A502 are EAR99 commodities.
Note 6 to 0A501: Scope mounts or accessory rails, iron sights,
sling swivels, and butt plates or recoil pads are designated as
EAR99. These commodities have been determined to no longer warrant
being ``specially designed'' for purposes of ECCN 0A501.
Note 7 to 0A501: A kit, including a replacement or repair kit,
of firearms ``parts'' or ``components'' customarily sold and
exported together takes on the classification of the most
restrictive ``part'' or ``component'' that is included in the kit.
For example, a kit containing 0A501.y and .x ``parts,'' is
controlled as a 0A501.x kit because the .x ``part'' is the most
restrictive ``part'' included in the kit. A complete firearm
disassembled in a kit form is controlled as a firearm under 0A501.a,
.b, or .y.7.
0
15. In Supplement No. 1 to part 774, Category 0, revise Export Control
Classification Number (ECCN) 0A505 to read as follows:
0A505 Ammunition as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, CC, FC, UN, AT
Country chart (see supp. No.
Control(s) 1 to part 738)
NS applies to 0A505.a and .x.............. NS Column 1
RS applies to 0A505.a and .x.............. RS Column 1
CC applies to 0A505.b..................... CC Column 1
FC applies to entire entry except 0A505.d. FC Column 1
UN applies to entire entry................ See Sec. 746.1 of the EAR
for UN controls
AT applies to 0A505.a, .d, and .x......... AT Column 1
AT applies to 0A505.c..................... A license is required for
items controlled by
paragraph .c of this entry
to North Korea for anti-
terrorism reasons. The
Commerce Country Chart is
not designed to determine
AT licensing requirements
for this entry. See Sec.
742.19 of the EAR for
additional information.
List Based License Exceptions (See Part 740 for a Description of All
License Exceptions)
LVS: $500 for items in 0A505.x, except $3,000 for items in 0A505.x
that, immediately prior to March 9, 2020, were classified under
0A018.b. (i.e., ``Specially designed'' components and parts for
ammunition, except cartridge cases, powder bags, bullets, jackets,
cores, shells, projectiles, boosters, fuses and components, primers,
and other detonating devices and ammunition belting and linking
machines (all of which are ``subject to the ITAR''). (See 22 CFR
parts 120 through 130))
GBS: 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 0A505.
List of Items Controlled
Related Controls: (1) Ammunition for modern heavy weapons such as
howitzers, artillery, cannon, mortars and recoilless rifles as well
as inherently military ammunition types such as ammunition
preassembled into links or belts, caseless ammunition, tracer
ammunition, ammunition with a depleted uranium projectile or a
projectile with a hardened tip or core and ammunition with an
explosive projectile are ``subject to the ITAR.'' (2) Percussion
caps, and lead balls and bullets, for use with muzzle-loading
firearms are EAR99 items.
Related Definitions: `Marking rounds' are non-lethal, typically used
for training purposes, and contain a dye or paint in a capsule that
is not a chemical irritant.
Items:
a. Ammunition for firearms controlled by ECCN 0A501 or USML
Category I and not enumerated in paragraph .b, .c, or .d of this
entry or in USML Category III.
b. Buckshot (No. 4 .24'' diameter and larger, any material)
shotgun shells and shotgun shells that contain only, or are for the
dispersion of chemical irritants.
c. Shotgun shells (including less than lethal rounds) that do
not contain buckshot; and ``specially designed'' ``parts'' and
``components'' of shotgun shells.
d. Blank ammunition for firearms controlled by ECCNs 0A501 or
0A502 and not enumerated in USML Category III.
Technical Note to 0A505.d: Includes `marking rounds' that have
paint/dye as the projectile.
e. through w. [Reserved]
x. ``Parts'' and ``components'' that are ``specially designed''
for a commodity subject to control in this ECCN or a defense article
in USML Category III and not elsewhere specified on the USML or the
CCL.
Note 1 to 0A505.x: The controls on ``parts'' and ``components''
in this entry include Berdan and boxer primers, metallic cartridge
cases, and standard metallic projectiles such as full metal jacket,
lead core, copper projectiles, and frangible projectiles.
Note 2 to 0A505.x: The controls on ``parts'' and ``components''
in this entry include those ``parts'' and ``components'' that are
common to ammunition and ordnance described in this entry and to
those enumerated in USML Category III.
Note 3 to 0A505: Metal shot smaller than No. 4 Buckshot, empty
and unprimed shotgun shells, shotgun wads, smokeless gunpowder,
`dummy rounds' and `drill rounds' (unless linked or belted), not
incorporating a lethal or non-lethal projectile(s) are designated
EAR99. A `dummy round' or `drill round' is a round that is
completely inert, (i.e., contains no primer, propellant, or
explosive charge). It is typically used to check weapon function and
for crew training.
Note 4 to 0A505: Shotgun shells that contain two or more balls/
shot larger than .24-inch are controlled under 0A505.b.
0
16. In Supplement No. 1 to part 774, Category 0, revise Export Control
Classification Number (ECCN) 0B501 to read as follows:
0B501 Test, inspection, and production ``equipment'' and related
commodities for the ``development'' or ``production'' of commodities
enumerated or otherwise described in ECCN 0A501 or USML Category I
as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, UN, AT
[[Page 46597]]
Country chart (see supp. No.
Control(s) 1 to part 738)
NS applies to entire entry except NS Column 1
equipment for ECCN 0A501.y.
RS applies to entire entry except RS Column 1
equipment for ECCN 0A501.y.
UN applies to entire entry................ See Sec. 746.1 of the EAR
for UN controls
AT applies to entire entry................ AT Column 1
List Based License Exceptions (See Part 740 for a Description of all
License Exceptions)
LVS: $3000
GBS: 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 to ship any item in this entry.
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
a. Small arms chambering machines.
b. Small arms deep hole drilling machines and drills therefor.
c. Small arms rifling machines.
d. Small arms boring/reaming machines.
e. Production equipment (including dies, fixtures, and other
tooling) ``specially designed'' for the ``production'' of the items
controlled in 0A501.a through .x. or USML Category I.
0
17. In Supplement No. 1 to part 774, Category 0, revise Export Control
Classification Number (ECCN) 0E505 to read as follows:
0E505 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul, or refurbishing of commodities controlled by 0A505.
License Requirements
Reason for Control: NS, RS, UN, CC, AT
Country chart (see supp. No.
Control(s) 1 to part 738)
NS applies to ``technology'' for NS Column 1
``development,'' ``production,''
operation, installation, maintenance,
repair, overhaul, or refurbishing
commodities in 0A505.a and .x; for
equipment for those commodities in 0B505;
and for ``software'' for that equipment
and those commodities in 0D505.
RS applies to ``technology'' for RS Column 1
``development,'' ``production,''
operation, installation, maintenance,
repair, overhaul, or refurbishing
commodities in 0A505.a and .x; for
equipment for those commodities in 0B505
and for ``software'' for those
commodities and that equipment in 0D505.
UN applies to entire entry................ See Sec. 746.1 of the EAR
for UN controls
CC applies to ``technology'' for the CC Column 1
``development'' or ``production'' of
commodities in 0A505.b.
AT applies to ``technology'' for AT Column 1
``development,'' ``production,''
operation, installation, maintenance,
repair, overhaul, or refurbishing
commodities in 0A505.a, .d, and .x.
List Based License Exceptions (See Part 740 for a Description of All
License Exceptions)
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 ``technology'' in 0E505.
List of Items Controlled
Related Controls: Technical data required for and directly related
to articles enumerated in USML Category III are ``subject to the
ITAR''.
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN
heading.
0
18. In Supplement No. 1 to part 774, Category 1, revise Export Control
Classification Number (ECCN) 1A984 to read as follows:
1A984 Chemical agents, including tear gas formulation containing 1
percent or less of orthochlorobenzalmalononitrile (CS), or 1 percent
or less of chloroacetophenone (CN), except in individual containers
with a net weight of 20 grams or less; liquid pepper except when
packaged in individual containers with a net weight of 3 ounces
(85.05 grams) or less; smoke bombs; non-irritant smoke flares,
canisters, grenades and charges; and other pyrotechnic articles
having dual military and commercial use, and ``parts'' and
``components'' ``specially designed'' therefor, n.e.s.
License Requirements
Reason for Control: CC
Country chart (see supp. No.
Control(s) 1 to part 738)
CC applies to entire entry................ CC Column 1
List Based License Exceptions (See Part 740 for a Description of All
License Exceptions)
LVS: N/A
GBS: N/A
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
The list of items controlled is contained in the ECCN heading.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-17647 Filed 8-18-21; 8:45 am]
BILLING CODE 3510-33-P