[Federal Register Volume 87, Number 4 (Thursday, January 6, 2022)]
[Rules and Regulations]
[Pages 729-731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28444]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
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  Federal Register / Vol. 87, No. 4 / Thursday, January 6, 2022 / Rules 
and Regulations  

[[Page 729]]



DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 211222-0267]
RIN 0694-AH89


Export Control Classification Number 0Y521 Series Supplement--
Extension of Controls on an Emerging Technology (Software Specially 
Designed To Automate the Analysis of Geospatial Imagery Classification)

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule; technical amendment.

-----------------------------------------------------------------------

SUMMARY: On January 6, 2020, the Bureau of Industry and Security (BIS) 
amended the Export Administration Regulations (EAR) to add Software 
Specially Designed to Automate the Analysis of Geospatial Imagery to 
the 0Y521 Temporary Export Control Classification Numbers (ECCN) Series 
as 0D521. BIS first extended controls on this emerging technology for a 
second year pursuant to the 0Y521 series extension procedures on 
January 6, 2021, and in this action extends these controls a second 
time for an additional year for a total of three years of this control 
since it was added to the EAR on January 6, 2020.

DATES: This rule is effective January 6, 2022.

FOR FURTHER INFORMATION CONTACT: Aaron Amundson, Director, Information 
Technology Division, Office of National Security and Technology 
Transfer Controls, at email [email protected] or by phone at 
(202) 482-5299.

SUPPLEMENTARY INFORMATION:

Background

    On January 6, 2020, the Bureau of Industry and Security (BIS) 
amended the Export Administration Regulations (EAR) with an interim 
final rule to add an emerging technology--Software Specially Designed 
to Automate the Analysis of Geospatial Imagery--to the 0Y521 Temporary 
Export Control Classification Numbers (ECCN) Series as 0D521. (85 FR 
459, January 6, 2020). More specifically, the software was described as 
Geospatial imagery ``software'' ``specially designed'' for training a 
Deep Convolutional Neural Network to automate the analysis of 
geospatial imagery and point clouds. The following year, BIS extended 
that status for a year. (86 FR 461, January 6, 2021). These actions are 
consistent with Section 1758 (50 U.S.C. 4801) of the Export Control 
Reform Act of 2018 (ECRA), which requires the Department of Commerce to 
establish appropriate controls on the export, reexport, or transfer 
(in-country) of emerging and foundational technologies.
    BIS established the ECCN 0Y521 series (April 13, 2012, 72 FR 22191) 
to identify items that warrant control on the Commerce Control List 
(CCL) but are not yet identified in an existing ECCN. Items in the 
0Y521 series of ECCNs are added upon a determination by the Department 
of Commerce, with the concurrence of the Departments of Defense and 
State, and other agencies as appropriate, that the items warrant 
control for export because the items may provide a significant military 
or intelligence advantage to the United States or because foreign 
policy reasons justify control. The ECCN 0Y521 series is a temporary 
holding classification.
    Under the procedures set forth in Section 742.6(a)(8)(iii) of the 
EAR, items classified under ECCN 0Y521 remain so classified for one 
year from the date they are listed in supplement no. 5 to part 774 of 
the EAR, unless the items are re-classified under a different ECCN or 
the 0Y521 classification is extended. BIS may extend an item's ECCN 
0Y521 classification for two one-year periods, provided that the U.S. 
Government has submitted a proposal to the relevant multilateral 
regime(s) (e.g., the Wassenaar Arrangement) to obtain multilateral 
controls over the item, with the understanding that multilateral 
controls are preferable when practical. Further extension beyond three 
years may occur only if the Under Secretary for Industry and Security 
makes a determination that such extension is in the national security 
or foreign policy interest of the United States. Any extension or re-
extension of control of an ECCN 0Y521 item, including the determination 
by the Under Secretary, shall be published in the Federal Register.
    In this action, BIS extends the status of an item classified under 
a 0Y521 ECCN for a second time for an additional year, for a total of 
three years of this control since it was added to the EAR on January 6, 
2020, consistent with procedures that allow such an extension. 
Specifically, in this case the U.S. Government submitted a proposal for 
multilateral control of software specially designed to automate the 
analysis of geospatial imagery, as described in the January 6, 2020 
interim final rule and in ECCN 0D521, to the relevant multilateral 
regime (the Wassenaar Arrangement) in a timely manner, within the first 
year of the item's 0D521 classification. However, due to the pandemic, 
the Wassenaar Arrangement did not formally convene in 2020 and 
therefore was unable to consider acceptance of the proposal. Therefore, 
BIS published the first extension of this 0Y521 control on January 6, 
2021. However, the Wassenaar Arrangement's limited deliberations in 
2021 due to the pandemic did not allow for sufficient discussion of 
this proposal. An additional extension of time is appropriate in order 
for the U.S. Government to continue its effort at the Wassenaar 
Arrangement in 2022, and is consistent with the requirements of Section 
1758(c) of ECRA.

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) (50 U.S.C. 4801-
4852) that 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

[[Page 730]]

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 interim final rule has been designated to be not significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid OMB 
control number. This rule does not involve any collection of 
information.
    3. This rule does not contain policies associated with Federalism 
as that term is defined under Executive Order 13132.
    4. Pursuant to section 1762 of ECRA (see 50 U.S.C. 4821), this 
action is exempt from the Administrative Procedure Act requirements 
(under 5 U.S.C. 553) for notice of proposed rulemaking, opportunity for 
public participation, and delay in effective date. This rule only 
updates Supplement No. 5 to Part 774 to the EAR by extending the date 
of the period of validity of 0D521 software in Supplement No. 5 to Part 
774 for one year. This revision is merely technical and in accordance 
with established 0Y521 ECCN series procedure and purpose, which was 
proposed to the public and subject of comment. This rule clarifies 
information, which serves to avoid confusing readers about the 0D521 
item's status. It does not alter any right, obligation or prohibition 
that applies to any person under the EAR.
    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 not applicable. 
Accordingly, no regulatory flexibility analysis is required, and none 
has been prepared.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, part 774 of the Export Administration Regulations (15 
CFR parts 730 through 774) is amended as follows:

PART 774--THE COMMERCE CONTROL LIST

0
1. 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. 5 to Part 774 [Amended]

0
2. In Supplement No. 5 to part 774, amend the table under section 
``0D521. Software'' by revising entry No 1. to read as follows:

Supplement No. 5 to Part 774--Items Classified Under ECCNS 0A521, 
0B521, 0C521, 0D521 and 0E521

* * * * *

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Item descriptor......................  Date of initial or       Date when the item will  Item-specific license
Note: The description must match by     subsequent BIS           be designated EAR99,     exception eligibility.
 model number or a broader descriptor   classification.          unless reclassified in
 that does not necessarily need to be  (ID = initial date; SD    another ECCN or the
 company specific.                      = subsequent date).      0Y521 classification
                                                                 is reissued.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                                0D521. Software.
----------------------------------------------------------------------------------------------------------------
No. 1 Geospatial imagery ``software''  January 6, 2020 (ID)...  January 6, 2023........  License Exception GOV
 ``specially designed'' for training                                                      under Sec.
 a Deep Convolutional Neural Network                                                      740.11(b)(2)(ii) only.
 to automate the analysis of
 geospatial imagery and point clouds,
 and having all of the following:
1. Provides a graphical user
 interface that enables the user to
 identify objects (e.g., vehicles,
 houses, etc.) from within geospatial
 imagery and point clouds in order to
 extract positive and negative
 samples of an object of interest;
2. Reduces pixel variation by
 performing scale, color, and
 rotational normalization on the
 positive samples;
3. Trains a Deep Convolutional Neural
 Network to detect the object of
 interest from the positive and
 negative samples; and
4. Identifies objects in geospatial
 imagery using the trained Deep
 Convolutional Neural Network by
 matching the rotational pattern from
 the positive samples with the
 rotational pattern of objects in the
 geospatial imagery.
Technical Note: A point cloud is a
 collection of data points defined by
 a given coordinate system. A point
 cloud is also known as a digital
 surface model.
 
                                                  * * * * * * *
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[[Page 731]]

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2021-28444 Filed 1-5-22; 8:45 am]
BILLING CODE 3510-33-P