[Federal Register Volume 89, Number 84 (Tuesday, April 30, 2024)]
[Rules and Regulations]
[Pages 34680-34716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08813]



[[Page 34679]]

Vol. 89

Tuesday,

No. 84

April 30, 2024

Part V





Department of Commerce





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Bureau of Industry and Security





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15 CFR Parts 732, 734, 738, et al.





Revision of Firearms License Requirements; Interim Final Rule

  Federal Register / Vol. 89 , No. 84 / Tuesday, April 30, 2024 / Rules 
and Regulations  

[[Page 34680]]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 734, 738, 740, 742, 743, 748, 750, 758, 762, 772, 
and 774

[Docket No. 240419-0113]
RIN 0694-AJ46


Revision of Firearms License Requirements

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule.

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SUMMARY: In this interim final rule (IFR), the Bureau of Industry and 
Security (BIS) is amending the Export Administration Regulations (EAR) 
to enhance the control structure for firearms and related items. These 
changes will better protect U.S. national security and foreign policy 
interests, which include countering the diversion and misuse of 
firearms and related items and advancing human rights. This rule 
identifies semi-automatic firearms under new Export Control 
Classification Numbers (ECCNs); adds additional license requirements 
for Crime Control and Detection (CC) items, thereby resulting in 
additional restrictions on the availability of license exceptions for 
most destinations; amends license review policies so that they are more 
explicit as to the nature of review that will accompany different types 
of transactions and license exception availability (including adding a 
new list of high-risk destinations); updates and expands requirements 
for support documentation submitted with license applications; and 
better accounts for the import documentation requirements of other 
countries (such as an import certificate or other permit prior to 
importation) when firearms and related items are authorized under a BIS 
license exception. BIS is publishing this rule as an IFR to solicit 
comments from the public on additional changes to export controls on 
firearms and related items that would better protect U.S. national 
security and foreign policy interests.

DATES: This rule is effective May 30, 2024. Comments must be received 
by BIS no later than July 1, 2024.

ADDRESSES: Comments on this rule may be submitted to the Federal 
rulemaking portal (www.regulations.gov). The regulations.gov ID for 
this rule is: BIS-2024-0003. Please refer to RIN 0694-AJ46 in all 
comments.
    All filers using the portal should use the name of the person or 
entity submitting the comments as the name of their files, in 
accordance with the instructions below. Anyone submitting business 
confidential information should clearly identify the business 
confidential portion at the time of submission, file a statement 
justifying nondisclosure and referring to the specific legal authority 
claimed, and provide a non-confidential version of the submission.
    For comments submitted electronically containing business 
confidential information, the file name of the business confidential 
version should begin with the characters ``BC.'' Any page containing 
business confidential information must be clearly marked ``BUSINESS 
CONFIDENTIAL'' on the top of that page. The corresponding non-
confidential version of those comments must be clearly marked 
``PUBLIC.'' The file name of the non-confidential version should begin 
with the character ``P.'' Any submissions with file names that do not 
begin with either a ``BC'' or a ``P'' will be assumed to be public and 
will be made publicly available through https://www.regulations.gov. 
Commenters submitting business confidential information are encouraged 
to scan a hard copy of the non-confidential version to create an image 
of the file, rather than submitting a digital copy with redactions 
applied, to avoid inadvertent redaction errors which could enable the 
public to read business confidential information.
    The Firearms Guidance Memorandum is available at www.bis.gov/guidance_memorandum and at www.regulations.gov under the 
regulations.gov ID BIS-2024-0003.

FOR FURTHER INFORMATION CONTACT: Anthony Christino, Acting Director, 
Office of Nonproliferation and Foreign Policy Controls; tel. (202) 482-
3825 or email [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    BIS is amending the EAR (15 CFR parts 730-774) by revising the 
license requirements and review policies, as well as other aspects of 
the control structure (e.g., license exceptions eligibility and export 
clearance requirements) for firearms, shotguns and related items (e.g., 
discharge type arms, optical devices, ammunition, and related 
technology and software) controlled under the following ECCNs: 0A501, 
0A502, 0A504, 0A505, 0A506, 0A507, 0A508, 0A509, 0B501, 0B505, 0D501, 
0D505, 0E501, 0E504, and 0E505 (collectively referred to as firearms 
and related items for the purposes of this IFR). Background regarding 
these changes is detailed below.

1. History of EAR Firearms Controls

    Firearms and related items have been controlled in the current 
structure by the Commerce Department (Commerce) under the EAR since 
March 9, 2020, when jurisdiction over certain end-item firearms and 
related items was transferred from the State Department's (State) 
United States Munitions List (USML) (see 22 CFR part 121) to the 
Commerce Control List (CCL), supplement no. 1 to part 774 of the EAR, 
maintained by BIS. See the January 23, 2020, BIS 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) (January 2020 EAR final rule; effective 
date: March 9, 2020) and the January 20, 2020, State final rule, 
``International Traffic in Arms Regulations: U.S. Munitions List 
Categories I, II, and III.'' (85 FR 3819; effective date: March 9, 
2020). Notably, BIS controlled long barrel shotguns prior to the 
publication of those rules. For the past almost four years, BIS has 
required that authorization be obtained for all exports and reexports 
of these firearms and related items to all destinations, including 
Canada. This worldwide license requirement under the EAR for firearms 
and certain related items is more restrictive than the license 
requirement that applies to other items whose jurisdiction transferred 
from the USML to the CCL as part of the Export Control Reform 
initiative (i.e., the ``600 series'' military items and 9x515 
spacecraft items), as the license requirement for those other items in 
most cases does not extend to Canada.
    In addition to the worldwide license requirement, since March 9, 
2020, BIS has maintained other requirements with respect to firearms 
and related items. These include certain export clearance requirements 
that provide increased transparency regarding the specific items being 
exported; limitations on the availability of license exceptions; 
certain recordkeeping requirements; and requirements to address 
temporary imports into the United States. As referenced in the January 
2020 EAR final rule, these requirements were imposed to ensure, as much 
as possible, that the EAR control structure for firearms and related 
items would protect U.S. national security and foreign policy 
interests, which include countering diversion and misuse of firearms 
and related items and advancing human rights. As part of this control 
structure, BIS included provisions to ensure that U.S. export

[[Page 34681]]

controls under the EAR account for the firearms-related import controls 
of other countries; specifically, the use of BIS licenses is predicated 
on having an Import Certificate or other permit (if required) by the 
importing country.

2. Firearms Licensing Pause

    On October 27, 2023, Commerce paused the issuance of new BIS export 
licenses involving certain firearms, related ``parts'' and 
``components,'' and ammunition (detailed under ECCNs 0A501, 0A502, 
0A504, and 0A505) to non-governmental end users not located in Ukraine, 
Israel, and most Wassenaar Arrangement Participating States (i.e., 
Country Group A:1, supplement no. 1 to part 740). During this 
``pause,'' Commerce assessed export control review policies for 
firearms and related items to determine whether any changes to the 
regulatory measures implemented in March 2020 were warranted to advance 
U.S. national security and foreign policy interests. The review focused 
on assessing and mitigating the risk of firearms being diverted to 
entities or activities that promote regional instability, abuse or 
violate human rights, or fuel criminal activities, including terrorism, 
extortion, and illicit trafficking of any kind.
    This pause followed the identification by Commerce over the past 
year of several instances in which lawfully exported firearms and 
related items from the United States have been diverted or misused in a 
manner contrary to U.S. national security and foreign policy interests; 
this includes instances predating the transfer of licensing authorities 
from State to the Commerce Department. Because those instances of 
diversion largely involved commercial exports to non-governmental end 
users, Commerce tailored the pause to apply only to exports involving 
non-governmental end users.
    Leading up to the pause, Commerce reviewed aggregate data showing 
that a substantial number of firearms recovered by foreign law 
enforcement agencies were lawfully exported from the United States. For 
example, a GAO report published in January 2022 identified concerns 
that the U.S. government is licensing firearm exports that fuel 
criminal activity and gun violence, enable human rights abuses, and 
destabilize government institutions in foreign countries, particularly 
in Central America.\1\ The report explained that in Belize, El 
Salvador, Guatemala, and Honduras, transnational criminal organizations 
and other violent criminals frequently use firearms to commit murders 
for hire, carry out extortion schemes, and resist local police forces. 
The report further explained that, between 2015 and 2019, nearly 20% of 
approximately 27,000 firearms recovered and traced by law enforcement 
agencies in those four countries were U.S.-origin firearms diverted 
from legitimate commerce (i.e., they were not illicitly smuggled from 
the United States, but rather lawfully exported).
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    \1\ United States Government Accountability Office, Firearms 
Trafficking: More Information is Needed to Inform U.S. Efforts in 
Central America (Jan. 2022) (``GAO Report''), https://www.gao.gov/assets/gao-22-104680.pdf.
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    The 2023 National Firearms Commerce and Trafficking Assessment 
provides additional data regarding the diversion of lawfully exported 
firearms. As described in that report, participating law enforcement 
agencies in foreign countries can submit firearm trace requests to 
ATF's eTrace system to help determine the purchase or ownership history 
of a recovered crime gun. ATF's analysis of all international crime gun 
trace requests received between 2017 and 2021 indicates that at least 
11% (18,749) of traced firearms were lawfully exported from the United 
States and later recovered in a foreign country. For countries outside 
of North America, at least 37% of firearms submitted to ATF were lawful 
exports; for countries in Central America, at least 19% of firearms 
submitted to ATF were lawful exports.\2\ These data are of particular 
concern given that ATF was working with a limited set of international 
crime guns for which a trace request was submitted. Together, these 
reports indicate that a sizeable portion of international crime guns 
are diverted from lawful exports.
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    \2\ Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
``National Firearms Commerce and Trafficking Assessment (NFCTA): 
Crime Guns--Volume Two, Part IV: Crime Guns Recovered Outside the 
United States and Traced by Law Enforcement,'' January 2023, pg 5, 
https://www.atf.gov/firearms/docs/report/nfcta-volume-ii-part-iv-crime-guns-recovered-outside-us-and-traced-le/download.
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    Commerce also identified specific cases in which lawful exports of 
firearms and related items were misused or diverted in a manner that 
adversely impacted U.S. national security and foreign policy interests. 
In one case, a firearm that was licensed for export to one country was 
subsequently diverted to a bordering country and used in a political 
assassination. In another, a license exception was used to export parts 
for the unlawful assembly of firearms in Taiwan. BIS also identified 
instances of firearms and ammunition exports being diverted to Russia 
via commercial resellers in third countries; such firearms and 
ammunition may be used to support Russia's further invasion of Ukraine.
    In addition, partner governments, particularly those in the Western 
Hemisphere, have expressed, and have continued to express, concern to 
Commerce with respect to illicit firearms trafficking, including the 
diversion of lawfully exported firearms. For example, governments in 
the Caribbean region expressed concern that individuals are using 
license exceptions to bring firearms, particularly semi-automatic 
handguns, to their countries, and that those firearms are being 
diverted to violent criminals. These partner governments have sought 
U.S. assistance in addressing diversion, which is fueling violence, 
criminal activity, and instability within their countries or regions.
    Commerce takes seriously its responsibility to regulate the export 
of firearms and related items consistent with U.S. national security 
and foreign policy interests, which include countering diversion and 
misuse of firearms and advancing human rights. Given the lethality of 
these items, the significant volume and value of the applications being 
processed, and the risk of diversion or misuse associated with them, 
Commerce is committed to ensuring that controls for these items 
appropriately protect the security of the United States and our allies 
and partners. Thus, during the pause, Commerce conducted a thorough 
review to assess the risk factors that contribute to the diversion and 
misuse of firearms and related items, evaluate whether existing review 
policies sufficiently account for those factors, and determine whether 
those policies could be improved. As part of that review, Commerce 
closely reexamined the data and case studies that led to the pause. It 
supplemented those data and case studies by studying reports and other 
empirical evidence regarding the conditions and risk factors that 
enable diversion and misuse of U.S. firearms and related items. 
Additionally, Commerce continued to engage with stakeholders and 
partner governments to gather different perspectives on addressing the 
risks associated with the diversion of firearms and related items.
    As part of this review, Commerce, together with interagency export 
control partners in the Departments of Defense, Energy, and State, as 
well as other federal agencies with technical expertise in firearms and 
related items, assessed current U.S. firearms export control policies 
to determine whether updates to BIS's review process and procedures

[[Page 34682]]

would further U.S. foreign policy and national security interests and 
how to appropriately implement those updates. In particular, as 
discussed further below, Commerce worked extensively with State, which 
is a key participant in the review process for license applications 
involving items subject to Commerce's jurisdiction. At the outset of 
the review process, Commerce drew upon its extensive experience 
reviewing applications for exports and reexports of firearms and 
related items and outlined an initial set of factors that increase the 
risk of these items being diverted or misused in a manner contrary to 
U.S. national security and foreign policy. Commerce consulted with 
State about these risk factors and, upon further review of the data and 
case studies as informed by State's experience, the agencies determined 
the key risk factors. In light of the fact that many of the factors 
concern conditions in destination countries, Commerce requested that 
State, which has deep expertise in evaluating such conditions, 
determine whether there are specific destinations where there is a 
substantial risk that firearms and related items will be diverted or 
misused in a manner contrary to U.S. national security and foreign 
policy. After conducting a thorough analysis that included consultation 
with U.S. Government stakeholders, State responded by developing a list 
of destinations in which it determined that there is a substantial risk 
that lawfully exported firearms sold to non-government end users will 
be diverted or misused in a manner contrary to U.S. national security 
and foreign policy.
    Commerce also engaged with certain counterparts in Country Group 
A:1 destinations that export firearms and related items to understand 
the export license application requirements and risk factors considered 
under their firearms export control authorities and related policies. 
Because governments in A:1 destinations have demonstrated a commitment 
to export controls as participants in the Wassenaar Arrangement on 
Export Controls for Conventional Arms and Dual-Use Goods and 
Technologies and share our interest in countering diversion or misuse 
of firearms and related items, advancing human rights, and promoting 
mutual security, BIS found it helpful to consult their processes and 
policies in making the regulatory updates outlined in this IFR.
    Commerce also continued regular engagement with the Caribbean 
Community (CARICOM) to identify specific actions the U.S. could take to 
minimize the diversion to unauthorized end users of U.S. firearms and 
related items that were lawfully exported to end users in CARICOM 
member and partner countries. For example, concerns were raised that 
certain license exceptions, including License Exception Shipments of 
Limited Value (LVS) under Sec.  740.3 and License Exception Baggage 
(BAG) under Sec.  740.14, may have been used to bring firearms and 
related items into these CARICOM countries that were subsequently 
diverted in violation of license exception terms, or to export greater 
quantities of firearms and related items than were legally available 
under these two license exceptions. Note that License Exception LVS is 
not available for end-item firearms but is available for certain 
``parts'' and ``components'' of firearms when for export or reexport to 
a Country Group B destination. Commerce also engaged with the U.S. 
firearms industry, as well as a wide variety of other stakeholders, to 
assess current export control processes and policies for firearms and 
related items and seek recommendations on effectively addressing 
diversion and misuse risks.

3. Findings of Policy Review and Engagement

    As a result of this policy review and engagement, Commerce 
identified several concerns associated with export controls that apply 
under the EAR to firearms and related items. First, Commerce determined 
that the existing licensing procedures and requirements did not provide 
it with sufficient documentation and data to evaluate national security 
and foreign policy risks effectively. In particular, limited 
documentation requirements made it challenging to validate that 
firearms and related items are exported only to trustworthy foreign 
partners. Existing data collection practices also limited visibility of 
agencies that participate in the license review process into trade 
flows for different types of firearms under its jurisdiction, rendering 
it difficult to assess whether lawful exports might be at a 
particularly acute risk of diversion. In addition, these practices 
limited the US Government's ability to monitor potentially high-risk 
sales from distributors to third parties.
    Second, Commerce concluded that the existing EAR license 
application requirements and review process for firearms and related 
items did not sufficiently enable identification of transactions that 
pose a heightened risk of diversion or misuse contrary to U.S. national 
security and foreign policy. Given that data and case studies show that 
exports of U.S. firearm and related items are at significant risk of 
being diverted or misused, Commerce conducted an extensive analysis to 
determine whether certain types of license applications warrant more 
scrutiny than others.
    As an initial matter, Commerce determined that the risk of 
diversion is significantly higher for exports to non-government end 
users than for exports to government end users and that consequently 
applications involving non-government end users warrant additional 
scrutiny. Data show that ``[g]lobally, the private civilian stockpile 
is less accountable, far less strictly guarded and three times as 
plentiful as its state counterpart--all qualities that support easy 
diversion of weapons to the illegal sector.'' \3\ For example, as ATF 
explained in a report on firearm theft in the U.S., ``more than 95% of 
stolen guns originate via thefts from private citizens.'' \4\ The case 
studies reviewed by BIS provide additional support for these general 
trends. Indeed, in each of the case studies described above, the 
diverted firearm had originally been exported to a non-governmental end 
user.
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    \3\ Rebecca Peters, ``Small Arms: No Single Solution,'' United 
Nations Chronicle https://www.un.org/en/chronicle/article/small-arms-no-single-solution.
    \4\ Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
``National Firearms Commerce and Trafficking Assessment (NFCTA): 
Crime Guns--Volume Two, Part V: Firearm Thefts,'' January 2023, pg 1 
https://www.atf.gov/firearms/docs/report/nfcta-volume-ii-part-v-firearm-thefts/download.
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    Commerce also determined that the licensing process would benefit 
from clarifying the specific national security and foreign policy 
factors considered when license applications are reviewed; such factors 
are associated with the risk of diversion or misuse of firearms and 
related items and the potential impact to U.S. national security and 
foreign policy interests. While national security and foreign policy 
concerns have always been considered as part of the review process, 
detailing transparent review criteria will enable BIS, its interagency 
partners, exporters, and reexporters to more effectively and 
consistently assess the potential risks associated with a given 
transaction. The factors that will be considered include, but are not 
limited to: the nature of the end user; destination-specific national 
security and foreign policy risk factors, including firearms 
trafficking, terrorism, human rights concerns and political violence, 
state fragility, corruption, organized crime or gang activity, and drug 
trafficking; instances of past diversion or misuse; and the 
capabilities, potential uses, and lethality of the item. These factors 
are consistent

[[Page 34683]]

with U.S. National Security Memorandum 18, Conventional Arms Transfer 
Policy,\5\ as well as the criteria that the United Kingdom and allies 
and partners in European Union member states apply to similar 
transactions, including the consideration of human rights; the 
preservation of regional peace, security, and stability; internal 
repression, tensions, or armed conflicts; terrorism and organized crime 
risks; and diversion risks. Notably, these key review factors, which 
are set forth in a new regulatory note to Sec.  742.7(b)(3) of the EAR, 
apply to applications involving certain exports and reexports of 
firearms and related items to both government and non-government end 
users in all destinations.
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    \5\ U.S. National Security Memorandum 18, Memorandum on United 
States Conventional Arms Transfer Polic, (Feb 2023), https://www.whitehouse.gov/briefing-room/presidential-actions/2023/02/23/memorandum-on-united-states-conventional-arms-transfer-policy/.
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    Each of the destination-specific factors directly correlates with 
the risk of diversion or misuse. In countries with high rates of 
firearms trafficking, there is an increased risk that criminals will 
seek to divert U.S. firearms and sell them to traffickers. There is a 
similar risk in countries with high rates of drug trafficking, as 
``illicit drugs are the most common non-firearms-related commodities 
seized together with firearms.'' \6\ Drug traffickers and producers 
frequently seek to obtain diverted firearms, both to further their core 
operations \7\ and to establish illicit firearms markets.\8\
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    \6\ United Nations Office on Drugs and Crime, ``Global Study on 
Firearms Trafficking 2020,'' page 77 (Mar. 2020) (``UN Global 
Study''), https://www.unodc.org/documents/data-and-analysis/Firearms/2020_REPORT_Global_Study_on_Firearms_Trafficking_2020_web.pdf.
    \7\ UN Global Study, page 36 (``Firearms are instrumental to 
organized crime and gangs as they can convey the sense of threat and 
power which allow the protection of the group, the territory and 
eventually their illicit markets.'').
    \8\ Global Initiative Against Transnational Organized Crime, 
Arms Trafficking and Organized Crime: Global trade, local impacts, 
page 13 (Aug. 2022) (``GI-TOC Report'') (explaining that ``drugs and 
firearms markets tend to benefit and reinforce each other'' because 
drug operations ``[use] profits from the drug trade to buy and sell 
firearms not only to their members but also other criminal groups at 
huge mark-ups''), https://globalinitiative.net/wp-content/uploads/2022/08/GI-TOC-policy-brief_Arms-trafficking-web-1.pdf.
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    Organized crime, human rights abuses, and terrorist activity are 
strong indicators of diversion risk because the ``interface between 
organized crime, violent extremism and terrorism, as well as state 
actors, allows regions to become flush with weapons looted from 
government stockpiles and weapons legally procured but sold on the 
black market.'' \9\ As discussed, the GAO report on arms trafficking in 
Belize, El Salvador, Guatemala, and Honduras provides empirical 
evidence that countries with high degrees of organized crime, human 
rights abuses, and violent extremism also have high degrees of firearm 
diversion.\10\
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    \9\ GI-TOC Report, page 3.
    \10\ GAO Report, page 16.
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    A high degree of corruption in a country also increases diversion 
risk.\11\ Specifically, in countries where corruption leads to reduced 
funding for law enforcement agencies, those agencies are less equipped 
to prevent criminals from diverting U.S. firearms. The risk of 
diversion is especially high in countries where corrupt government 
officials work directly with criminal organizations to traffic diverted 
U.S. firearms.\12\
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    \11\ Trevor Thrall and Jordan Cohen, ``2021 Arms Sales Risk 
Index'' (Jan. 18, 2022) (``Cato Report''), https://www.cato.org/study/2021-arms-sales-risk-index#mapping-risk.
    \12\ GI-TOC Report, page 4.
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    Finally, state fragility correlates with diversion risk because 
``strong states should have greater ability to manage and to control 
legal arms shipments than their weaker counterparts.'' \13\ Diversion 
risk is especially high in countries experiencing internal violent 
conflict because conflict incentivizes armed groups to stockpile 
weapons through any means necessary, including through the diversion of 
U.S. firearms.\14\
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    \13\ Carla Martinez Machain, Jeffrey Pickering, ``The Human Cost 
of the Weapons Trade: Small Arms Transfers and Recipient State 
Homicide'' Journal of Global Security Studies (2020) (showing that 
state strength mitigates the relationship between small arms trade 
and rates of homicide) https://academic.oup.com/jogss/article-abstract/5/4/578/5592220.
    \14\ UNODC Report page 37 (``In conflict and post-conflict 
countries, the accumulation of legal stockpiles of weapons may 
create the potential for firearms to reach the hands of non-state 
armed groups, other criminal groups or even the general population, 
especially if that very conflict weakens the ability of the state 
infrastructure to manage those stockpiles properly.'').
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    The destination-specific factors also correlate with the risk that 
a diverted firearm will be used to commit violent acts that undermine 
U.S. national security and foreign policy objectives. As an initial 
matter, in countries with high rates of firearms trafficking, there is 
an increased risk that diverted firearms and related items will end up 
in the hands of cartels, gangs, terrorists, paramilitary groups, and 
other criminal organizations, all of which use firearms and related 
items for activities that directly undermine U.S. national security and 
foreign policy.
    In countries with high rates of drug trafficking and organized 
crime, there is an increased risk that the diversion or misuse of 
firearms and related items will increase the ability of cartels, gangs, 
and other criminal organizations to undermine U.S. national security 
and foreign policy by flooding the United States with potentially 
deadly substances, sparking regional conflict that has spillover 
effects in the United States, and establishing transnational operations 
that extend into the U.S.\15\ Similarly, in countries where terrorist 
groups have a significant presence, there is an increased risk that the 
diversion of firearms and related items will increase the capability of 
those groups to carry out attacks that undermine U.S. national 
security.\16\ And in countries with high rates of human rights abuses 
and political violence, whether by government-sponsored paramilitary 
groups or non-state forces, there is an increased risk that the 
diversion of firearms and related items will enable further human 
rights abuses, which directly undermines a key U.S. foreign policy 
objective.\17\
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    \15\ U.S. Department of Defense, ``Framework to Counter Drug 
Trafficking and Other Illicit Threat Networks,'' page 1 (May 2019), 
https://policy.defense.gov/Portals/11/Documents/DoD%20Framework%20to%20Counter%20Drug%20Trafficking%20and%20Other%20Illicit%20Threat%20Networks%20May%202019.pdf; GI-TOC Report, page 10.
    \16\ Cato Report.
    \17\ GI-TOC Report, page 10; Cato Report.
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    The diversion and misuse of firearms and related items in countries 
with high degrees of corruption and state fragility poses similar risks 
to national security and foreign policy. In countries with high degrees 
of corruption, there is an increased risk that the diversion of 
firearms and related items to criminal organizations will further 
undermine the ability of law enforcement agencies to promote country 
stability, which is a central U.S. foreign policy objective. In turn, 
in a fragile state experiencing violent internal conflict, ``the influx 
of arms not only fuels the fighting but it contributes to the 
fragmentation and spreading of conflict; increases the number of 
criminal groups and their use of violence as a vehicle for market 
control; and strengthens armed groups against state responses.'' \18\ 
Not only does such conflict undermine U.S. foreign policy by increasing 
country instability, it causes spillover effects that directly threaten 
U.S. national security.
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    \18\ GI-TOC Report, page 3.
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    In addition to the destination-specific factors, other important 
factors are the capabilities, lethality, and potential uses of 
different firearms and related items. BIS controls a diverse range of 
firearms and related items, including optics and

[[Page 34684]]

scopes, antique firearms, non-automatic and semi-automatic firearms, 
and ammunition. The potential for diversion or misuse of each of these 
categories of items should be carefully considered during the review of 
an export application.
    The capabilities, lethality, and potential use of an item have 
numerous implications for U.S. national security and foreign policy 
interests. To begin with, certain items under BIS jurisdiction have 
characteristics that may render them either more or less dangerous in 
criminal, terrorist, or other adversaries' hands. For example, 
buckshot, blank ammunition, or antique firearms regulated by BIS under 
the EAR, have relatively limited capacity to pose harm to U.S. 
interests if they are diverted or misused. By contrast, some items 
subject to the EAR, such as certain semiautomatic firearms, may pose a 
higher risk to U.S. national security and foreign policy interests if 
diverted to criminals, terrorists, and cartels. For example, ATF 
studies on the import of semiautomatic rifles and shotguns have found 
that certain characteristics can render such firearms ``particularly 
suitable for the military or law enforcement'' use.\19\ Firearms that 
could be used to give cartels, terrorist organizations, and other non-
state actors parity with law enforcement agencies, including those of 
the U.S. and their allies, could pose a unique risk if diverted or 
misused. Furthermore, data from ATF indicates that weapons with these 
characteristics have, in fact, been diverted and misused in criminal 
activities,\20\ and that certain types of weapons may be particularly 
appealing to cartels that seek to destabilize regions and engage in 
drug trafficking activities. Such factors are important to consider 
alongside other indicia of the end user's credibility and a 
destination's risk profile.
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    \19\ Bureau of Alcohol, Tobacco, Firearms, and Explosives, Study 
on the Importability of Certain Shotguns,'' January 2011, pages 8-9
    \20\ Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
``National Firearms Commerce and Trafficking Assessment (NFCTA): 
Crime Guns--Volume Two, Part IV: Crime Guns Recovered Outside the 
United States and Traced by Law Enforcement,'' January 2023, pgs 10-
14, https://www.atf.gov/firearms/docs/report/nfcta-volume-ii-part-iv-crime-guns-recovered-outside-us-and-traced-le/download.
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    The capabilities, lethality, and potential uses of an item can also 
render it more amenable to diversion than other comparable items. In 
the context of drug trafficking and other criminal activity in the 
CARICOM region, for example, studies have indicated that criminals rely 
on access to unlawfully exported or diverted handguns. This is due to 
the fact that handguns are ``concealable, easier to use in close 
quarters, and just as effective for almost every criminal task'' as 
other firearms.\21\ Similarly, a study of diversion in the CARICOM 
region showed both that criminals use various methods of concealment 
and that there is a prevalence of 9mm semiautomatic handguns in 
criminal activity.\22\ These data are consistent with other studies 
showing that Central American police recovered and traced pistols at a 
greater rate than other types of weapons in that region.\23\ Foreign 
government law enforcement agencies have likewise identified instances 
in which extraordinarily large quantities of ammunition--which is small 
and often can be repurposed for a large variety of firearms--are 
illicitly trafficked.\24\ Put simply, some items may be more dangerous 
if they are diverted or misused, and others might be easier to divert 
or misuse. As such, the capabilities, lethality, and potential uses of 
certain items are closely linked to the U.S. national security and 
foreign policy interests that should be considered in the context of 
reviewing licensing applications.
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    \21\ United Nations Office on Drugs and Crime, ``Transnational 
Crime in Central America and the Caribbean,'' December 2012, page 
59, unodc.org/documents/data-and-analysis/Studies/TOC_Central_America_and_the_Caribbean_english.pdf.
    \22\ Small Arms Survey, ``Weapons Compass: The Caribbean 
Firearms Study,'' April 2023, pages 67-85, https://www.smallarmssurvey.org/sites/default/files/resources/CARICOM-IMPACS-SAS-Caribbean-Firearms-Study.pdf.
    \23\ United Nations Office on Drugs and Crime, ``Transnational 
Crime in Central America and the Caribbean,'' December 2012, page 
59, unodc.org/documents/data-and-analysis/Studies/TOC_Central_America_and_the_Caribbean_english.pdf; GAO report, page 
19.
    \24\ Alessandro Ford, ``Scandal at Haiti Customs After Over 
100,000 Rounds of Smuggled Ammunition Seized,'' Insight Crime, July 
2022, https://insightcrime.org/news/scandal-at-haiti-customs-after-over-100000-rounds-of-smuggled-ammunition-seized/.
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    Finally, in addition to specifying certain key factors that will be 
considered when reviewing license applications to export firearms and 
related items to any end user, Commerce determined that destination-
specific factors should be used to identify destinations where firearm 
exports to non-government end users entail a substantial risk of 
diversion or misuse in a manner adverse to U.S. national security and 
foreign policy. Identifying those ``high-risk destinations'' enables 
BIS to develop a uniform review policy for license applications, 
ensuring that the licensing process consistently accounts for the risks 
associated with various transactions; provides transparency and 
predictability to exporters, stakeholders, and the public; and 
adequately safeguards U.S. foreign policy and national security 
interests.
    As discussed above, Commerce requested that State, which has 
extensive expertise in evaluating country-specific conditions and 
associated national security and foreign policy concerns, assist in 
developing a list of high-risk destinations. In response, State 
provided Commerce with a guidance memorandum, which is available on the 
BIS website at www.bis.gov/guidance_memorandum and on regulations.gov, 
outlining a methodology to evaluate the risk that firearms exports to 
specific destinations will be diverted or misused in a manner contrary 
to U.S. national security and foreign policy (hereinafter, the 
``Firearms Guidance Memorandum''). As the Firearms Guidance Memorandum 
explains, State leveraged its expertise in foreign policy and in 
subject matter areas, including human rights, international 
counternarcotics, counterterrorism, and arms control, and the expertise 
of stakeholders from across the U.S. Government in conducting its 
analysis.
    After working with Commerce to determine the key risk factors, 
State gathered data and other empirical evidence relevant to assessing 
how those factors apply to specific destinations. That evidence came 
from a diverse set of credible sources, including reports produced by 
the U.S. Government (e.g., the State Department's Country Reports on 
Human Rights Practices and the Presidential Determination on Major Drug 
Transit or Major Illicit Drug Producing Countries) and reports produced 
by reputable non-government organizations (e.g., the Global Terrorism 
Index and the Corruption Perceptions Index). State also engaged in 
consultations with U.S. Embassy officials, including those with 
significant experience working with local law enforcement agencies, 
subject matter experts, and regional experts. Finally, State sought 
policy guidance from stakeholders across the U.S. Government to ensure 
that the assessment incorporated relevant aspects of U.S. national 
security and foreign policy interests.
    Based on that analysis, State identified 36 countries in which 
there is a substantial risk that lawful firearms exports to non-
governmental end users will be diverted or misused in a manner adverse 
to U.S. national security and foreign policy interests. Commerce has 
decided to apply a presumption of denial review policy to firearm 
license

[[Page 34685]]

applications involving non-government end users in those destinations. 
That uniform policy will ensure that the licensing process consistently 
accounts for the risks associated with those transactions, provides 
transparency to exporters and other stakeholders, and safeguards U.S. 
national security and foreign policy interests.

4. Policy Changes

    BIS has determined that the changes described in this IFR will 
advance U.S. national security and foreign policy interests. As with 
all EAR controls, these changes are designed to be as targeted as 
possible to accomplish BIS's mission to protect the national security 
and foreign policy interests of the United States, including a full 
consideration of this IFR's economic impact. The regulatory changes 
implemented by this IFR will facilitate more robust data tracking 
capabilities for exports and re-exports of firearms and related items. 
Updates to license application requirements and applicable review 
policies will enhance the ability of BIS and its interagency partners 
to review and process license applications consistent with U.S. 
national security and foreign policy interests. In addition, this IFR 
creates greater transparency for industry by identifying the risk 
factors considered during the application review process, as well as 
destinations identified in the Firearms Guidance Memorandum as 
presenting a substantial risk of diversion or misuse in a manner 
contrary to U.S. national security and foreign policy.

B. New ECCNs for Semi-Automatic Firearms and Certain Related Parts, 
Components, Attachments, and Accessories

    Prior to this IFR, ECCN 0A501 controlled rifles, pistols, and 
related ``parts,'' ``components,'' and certain ``attachments,'' and 
``accessories'' on the CCL, while ECCN 0A502 controlled shotguns and 
related ``parts,'' ``components,'' and certain ``attachments,'' and 
``accessories.'' Neither ECCN distinguished between non-automatic and 
semi-automatic firearms. BIS was unable to readily identify what share 
of firearms exports to a country were semi-automatic rifles versus non-
automatic pistols because they were controlled under the same item 
paragraph of ECCN 0A501. Accordingly, BIS was unable to readily 
disaggregate and review licensing and export data for specific types of 
end-item firearms or specific ``parts,'' ``components,'' 
``attachments'' and ``accessories'' of most concern. This data gap 
limited BIS's ability to efficiently evaluate the export, reexport, 
transfer (in-country) and diversion of specific types of rifles, 
pistols, shotguns, and certain ``parts,'' ``components,'' 
``attachments,'' and ``accessories'' that may pose risks to U.S. 
national security and foreign policy. However, such information is 
useful to assess the risk of diversion.
    To better track the export, reexport, transfer (in-country) and 
diversion of different types of firearms and related items, this IFR 
adds four new ECCNs to the CCL. ECCN 0A506 controls semi-automatic 
rifles, ECCN 0A507 controls semi-automatic pistols, ECCN 0A508 controls 
semi-automatic shotguns, and ECCN 0A509 controls certain ``parts,'' 
``components,'' devices, ``accessories,'' and ``attachments'' for items 
controlled under ECCNs 0A506, 0A507, and 0A508. The creation of these 
four new ECCNs will enable BIS to better track and more readily 
identify exports of end-item semi-automatic firearms and shotguns and 
certain related ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' of concern when reviewing the Electronic Export 
Information (EEI) that exporters file in the Automated Export System 
(AES). Pursuant to Sec.  758.1(g)(1) and (2), an EEI must specify the 
ECCN of the exported item. In order to further enhance transparency and 
the collection and review of export data on these items, this IFR also 
implements export clearance changes as described below under the 
heading Changes to make identification of end-item firearms mandatory 
in AES.
    The addition of ECCNs 0A506, 0A507, 0A508, and 0A509 is not 
expected to have an impact on the number of license applications 
received by BIS, because these items were previously controlled under 
different ECCNs. Other changes included in this IFR that are expected 
to increase the number of licenses and other support documents are 
described elsewhere in this preamble.

1. Addition of ECCN 0A506 for Semi-Automatic Rifles

    The commodities controlled under ECCN 0A506 were controlled 
previously under ECCN 0A501. BIS, supported by an interagency working 
group, consulted the Wassenaar Munitions List (WAML1) as well as ATF's 
non-sporting firearm importation criteria to identify specific features 
or accessories to delineate in the ECCN 0A506 item paragraphs. The item 
paragraph structure will enable better tracking and transparency for 
exports of various types of end-item semi-automatic rifles. ECCN 0A506 
has two primary item paragraphs. Item paragraph .a details semi-
automatic centerfire (non-rimfire) rifles equal to .50 caliber (12.7 
mm) or less that have any of the following characteristics (controlled 
under .a.1 through .a.4): the ability to accept a detachable large 
capacity magazine (more than 10 rounds) or may be easily modified to do 
so; folding, telescoping, or collapsible stock; separate pistol grips; 
or a flash suppressor. Item paragraph .b controls all other semi-
automatic rifles equal to .50 caliber (12.7 mm) or less, including all 
non-centerfire (rimfire) that are not elsewhere specified (noted as 
``n.e.s.'' on the CCL). ECCN 0A506 includes a note to 0A506.a and .b 
that ``parts'' and ``components'' that are ``specially designed'' for a 
commodity classified under .a or .b of 0A506, except those controlled 
under ECCN 0A509, are controlled under ECCN 0A501. ECCN 0A506 also 
includes a technical note stating that firearms controlled in 0A506 
include those chambered for the .50 BMG cartridge. The reasons for 
control for new ECCN 0A506 mirror the reasons for control that apply to 
ECCN 0A501 (with the addition of CC Column 2 reason for control 
outlined below). Specifically, National Security (NS) Column 1, 
Regional Stability (RS) Column 1, Firearms Convention (FC) Column 1, CC 
Column 2, United Nations Security Council arms embargo (UN), and Anti-
Terrorism (AT) Column 1 apply to the entire entry. License Exceptions 
LVS, Shipments to Country Group B Countries (GBS), and License 
Exception Strategic Trade Authorization (STA) are not available for use 
with commodities controlled under ECCN 0A506, as discussed in greater 
detail below.

2. Addition of ECCN 0A507 for Semi-Automatic Pistols

    The commodities controlled under ECCN 0A507 were controlled 
previously under ECCN 0A501. BIS, supported by an interagency working 
group, consulted the WAML1 and 27 CFR 478.12 to identify specific 
features or accessories to delineate in the ECCN 0A507 item paragraphs. 
The item paragraph structure will enable better tracking and 
transparency for exports of various types of end-item semi-automatic 
pistols. ECCN 0A507 has two item paragraphs: paragraph .a controls 
semi-automatic centerfire (non-rimfire) pistols equal to .50 caliber 
(12.7 mm) or less; and paragraph .b controls semi-automatic (rimfire) 
pistols equal to .50 caliber (12.7 mm) or less. ECCN 0A507 includes a 
note to 0A507.a and .b to specify that ``parts'' and ``components'' 
that are ``specially designed'' for a commodity classified under 0A507,

[[Page 34686]]

except those controlled under ECCN 0A509, are controlled under ECCN 
0A501.c, .d, .x, or .y. The ECCN also includes a technical note stating 
that firearms described in 0A507 includes those chambered for the .50 
BMG cartridge, which clarifies that any handgun that may be developed 
to fire .50 BMG cartridges will be controlled under this ECCN. The 
reasons for control for new ECCN 0A507 mirror the reasons for control 
that apply to ECCN 0A501 (with the addition of CC Column 2 reason for 
control outlined in D.2 of this preamble in this IFR). Specifically, NS 
Column 1, RS Column 1, FC Column 1, CC Column 2, UN, and AT Column 1 
apply to the entire entry. License Exceptions LVS, GBS, and STA are not 
available for use with commodities controlled under ECCN 0A507, as 
discussed in greater detail below.

3. Addition of ECCN 0A508 for Semi-Automatic Shotguns

    The commodities controlled under ECCN 0A508 were controlled 
previously under ECCN 0A502. BIS, supported by an interagency working 
group, consulted both the WAML1 and ATF's non-sporting importation 
criteria to identify specific characteristics or attachments and 
accessories to delineate in the ECCN 0A508 item paragraphs. The item 
paragraph structure will better enable tracking and transparency for 
exports of various types of end-item semi-automatic shotguns. ECCN 
0A508 has two item paragraphs. Item paragraph .a controls semi-
automatic centerfire (non-rimfire) shotguns with any of the of the 
following characteristics (which are detailed in a.1 through a.6): 
folding, telescoping, or collapsible stock; magazine over five rounds; 
a drum magazine; a flash suppressor; Excessive Weight (greater than 10 
lbs. for 12 gauge or smaller); or Excessive Bulk (greater than 3 inches 
in width and/or greater than 4 inches in depth). Item paragraph .b 
controls all other semi-automatic shotguns, including all non-
centerfire (rimfire) shotguns that are not elsewhere specified. The 
reasons for control for new ECCN 0A508 mirror the reasons for control 
that apply to ECCN 0A502 (except for CC Column 2, which now applies to 
the entire 0A502 and 0A508 entry): Specifically, NS Column 1 and RS 
Column 1 for 0A508 commodities (with barrel length less than 18 
inches), FC Column 1, CC Column 2, UN for the entire entry, and AT 
Column 1 for 0A508 commodities (with barrel length less than 18 
inches). LVS, GBS, and License Exception STA are not available for use 
with ECCN 0A508, as discussed in greater detail below.

4. Addition of ECCN 0A509 for Certain ``Parts,'' ``Components,'' 
Devices, ``Accessories,'' and ``Attachments'' for Items Controlled 
Under ECCNs 0A506, 0A507, and 0A508

    The commodities controlled under ECCN 0A509 were controlled 
previously under ECCNs 0A501 and 0A502. The commodities controlled 
under 0A509 warrant separate tracking under a distinct ECCN due to 
their sensitivity, including the potential that these firearms-related 
items are used to illicitly assemble firearms or are otherwise used to 
convert a non-automatic firearm controlled by 0A501 or 0A502 into a 
semi-automatic firearm or to accelerate the rate of fire of a semi-
automatic firearm controlled by 0A506, 0A507, or 0A508. The item 
paragraph structure will enable better tracking and transparency for 
exports of certain ``parts,'' ``components,'' devices, ``accessories,'' 
and ``attachments'' separate from the end-item semi-automatic rifles, 
pistols, and shotguns controlled under ECCNs 0A506, 0A507, and 0A508. 
ECCN 0A509 has four item paragraphs. Item paragraph .a controls any 
``part,'' ``component,'' device, ``attachment,'' or ``accessory'' not 
elsewhere specified on the USML that is designed or functions to 
accelerate the rate of fire of a semi-automatic firearm controlled 
under ECCNs 0A506, 0A507, or 0A508. Item paragraphs .b and .c control 
receivers (frames), including castings, forgings, stampings, or 
machined items thereof, ``specially designed'' for an item controlled 
under ECCNs 0A506 and 0A507, respectively. Item paragraph .d of ECCN 
0A509 controls receivers (frames) and ``specially designed'' ``complete 
breech mechanisms'' for a commodity controlled under ECCN 0A508. ECCN 
0A509 has a note to item paragraphs .b and .c stating that receivers 
(frames) under 0A509.b and .c refers to any ``part'' or ``component'' 
of the firearm that has or is customarily marked with a serial number 
when required by law; the ``parts'' and ``components'' in paragraphs 
0A509.b and .c are regulated by ATF as firearms (see 18 U.S.C. 
921(a)(3); 27 CFR parts 447, 478, and 479). The reasons for control for 
commodities controlled under new ECCN 0A509 are as follows: NS Column 
1, RS Column 1, FC Column 1, CC Column 2, UN, and AT Column 1 apply to 
the entire entry. License Exceptions LVS, GBS, and STA are not 
available for use with commodities controlled under ECCN 0A509, as 
discussed in greater detail below.

5. Other Changes for Existing 0x5zz ECCNs

    BIS also reevaluated the reasons for control for rifles, pistols, 
shotguns, ammunition, and related ``parts,'' ``components,'' 
``accessories,'' ``attachments,'' ``software,'' and ``technologies'' 
detailed under existing ECCNs 0A501, 0A502, 0A504, 0A505, 0D501, 0D505, 
0E501, 0E504, and 0E505. BIS is applying or maintaining CC column 2-
based controls on most items under these ECCNs, consistent with BIS 
policy to apply CC controls on items to address human rights-related 
concerns. Certain specific ``parts'' and ``components'' and ammunition 
controlled under ECCNs 0A501.y and 0A505.c, 0A505.d, and 0A505.x are 
not controlled for CC reasons (or certain other reasons under the EAR), 
because they raise relatively few concerns related to human rights or 
other foreign policy objectives. The CC changes described in this 
paragraph, along with the other CC changes described in this preamble 
section B.5, are expected to result in an increase of 1,115 license 
applications received annually by BIS.
    Prior to this IFR, either CC Column 1, CC Column 2, or CC Column 3 
applied to shotguns controlled under ECCN 0A502 based on the barrel 
length and particular end user (specifically, police or law 
enforcement). This IFR revises the CC reasons for control on 0A502 to 
underscore their significant relationship to U.S. foreign policy 
objectives, including human rights. CC Column 2 applies to the entire 
entry of 0A502, regardless of barrel length or end user. Similarly, CC 
Column 2 applies to the entire entry of 0A508, regardless of barrel 
length or end user. These changes implement a new license requirement 
for the export of certain shotguns to certain countries and end users. 
All other existing reasons for control on 0A502 remain in effect under 
this IFR. In particular, consistent with the licensing policy for items 
controlled for RS reasons, Sec.  742.6(b)(1)(i), BIS will continue to 
review these items to determine whether the transaction is contrary to 
U.S. foreign policy interests, including promoting the observance of 
human rights throughout the world.
    Similarly, this IFR adds CC Column 2 reasons for control to 
software controlled under ECCNs 0D501 and 0D505 and technology 
controlled under 0E501. Given that these ECCNs control the software and 
technology that relate to firearms and related items, the same human 
rights concerns apply. Therefore, as noted above, this change aligns 
the reason for control for ECCNs 0D501,

[[Page 34687]]

0D505, and 0E501 with BIS policy to apply CC to firearms and related 
items.

6. Other EAR conforming changes to reflect the new ECCNs for semi-
automatic firearms and semi-automatic shotguns.

    With the exception of those commodities controlled under new ECCNs 
0A506, 0A507, 0A508, and 0A509 as described above, all firearms, 
shotguns, and their ``parts,'' ``components,'' ``accessories,'' 
``attachments,'' and equipment remain controlled under ECCNs 0A501 and 
0A502 on the CCL. However, the creation of the four new ECCNs requires 
conforming changes throughout the EAR to maintain enhanced restrictions 
on end-item firearms where only ECCNs 0A501 and 0A502 were previously 
referenced. This IFR adds references to semi-automatic firearms and 
semi-automatic shotguns controlled under ECCNs 0A506, 0A507, and 0A508, 
as well as the commodities controlled under 0A509, where appropriate; 
these conforming changes ensure that the semi-automatic versions of 
end-use firearms and shotguns controlled under these three new ECCNs, 
as well as the commodities controlled under 0A509, continue to be 
subject to licensing restrictions and limitations on licensing 
exception availability.
    The conforming changes appear in the following EAR provisions 
(referenced here in the order in which they are described under Table 
1): Sec. Sec.  732.2(b), 734.7(c), 740.2(a)(21), 740.2(a)(23), 740.9(a) 
and (b)(5) introductory text, 740.9(b)(5)(ii), 740.9, Note 1 to 
paragraph (b)(5), 740.10(b)(1) introductory text and (b)(4), 
740.10(b)(4)(i), 740.10, Note 1 to paragraph (b)(4), 740.11 
introductory text, 740.14(e)(1) introductory text, 740.14(e)(1)(i), 
740.14(e)(3) introductory text, 740.14(e)(3)(i), 740.14(e)(3)(iv), 
740.14(e)(4), 740.20(b)(2)(ii)(A), 740.20(b)(2)(ii)(B), 742.6(b), 
742.7(a)(5), 742.17(f), 743.4(c) (redesignated as paragraph (b)), 
743.6(a) introductory text, (a)(1) and (2), (b), and (c), 748.12(a)(1), 
748.12, Note 2 to paragraph (d)(3), supplement no. 2 to part 748, 
paragraph (z), supplement no. 2 to part 748, Note 1 to paragraph (z), 
supplement no. 2 to part 748, paragraph (bb) (redesignates as paragraph 
(aa)(1)), 758.1(b)(9), Note 1 to paragraph (c)(1), and (g)(4)(i), 
758.1(g)(4)(ii), 758.10(a) introductory text, Note 1 to paragraph 
(b)(1), and Note 2 to paragraph (b)(1), 758.11(a) and (b)(2), 
762.2(a)(11), 762.3(a)(5), as well as ECCNs 0A501 heading, Related 
Controls paragraph, Technical Note to 0A501.c, Note 5 to 0A501.e, and 
0A501.x and .y, 0A502 heading, and Related Controls paragraph, 0A505.a 
and .d, 0B501 heading and 0B501.e, 0D501 heading, 0E501 heading, 
0E501.a and .b, 0E502 heading, and ECCN 2B018 text under the heading. 
These changes are not expected to have any impact on the number of 
license applications received by BIS.
    There are a number of references to the 0x5zz ECCNs in existing EAR 
provisions that pertain to firearms controls. However, no changes are 
required to such references because the four new ECCNs are also 
considered 0x5zz ECCNs.

Table 1--Identification of Conforming Changes Made to Existing EAR 
Regulatory References to Reflect the Addition of ECCN 0A506, 0A507, 
0A508, and 0A509

    This table identifies the specific EAR provision and type of 
conforming changes required for consistency with the addition of these 
four new ECCNs. BIS welcomes comments in response to this IFR on these 
conforming changes, as well as any other conforming changes that the 
public believes would be warranted to reflect the addition of these 
four new ECCNs.
BILLING CODE 3510-33-C

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[[Page 34689]]


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[[Page 34690]]


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BILLING CODE 3510-33-P

C. Changes to License Exceptions and Related Changes

    1. General restrictions on use of license exceptions. Section 740.2 
of the EAR details restrictions in place on the use of all License 
Exceptions. Paragraph (a) enumerates these restrictions. This IFR makes 
two changes to this section. First, as a conforming change to the 
addition of the CC control under ECCNs 0A501, 0A506, and 0A507, this 
IFR revises the general restriction on the use of license exceptions 
under paragraph (a)(4)(iii) in Sec.  740.2 for CC items identified in 
Sec.  742.7 to remove the parenthetical phrase that limited the 
eligibility of License Exception BAG under paragraph (e) to certain 
shotguns and shotgun shells for personal use as the only License 
Exception BAG authorization that could overcome the general restriction 
in this paragraph (a)(4)(iii). Because the other firearms controlled 
under new ECCNs 0A506, 0A507, and 0A508 will require a license for CC 
as of the effective date of this IFR, all of these firearms and related 
items that are authorized under paragraph Sec.  740.14(e) should be 
eligible to overcome this general restriction on the use of license 
exceptions under

[[Page 34691]]

Sec.  740.2(a)(4). These changes are not expected to have any impact on 
the number of license applications received by BIS.
    Second, this IFR adds paragraph (a)(24) in Sec.  740.2. New 
paragraph (a)(24) requires exporters to obtain a copy of an import 
certificate or equivalent document (if required by the government of 
the importing country) before the exporter can use any license 
exception for items controlled under ECCNs 0A501, 0A502, 0A504, 0A505, 
0A506, 0A507, 0A508, or 0A509. This new requirement parallels the new 
policy detailed below related to obtaining and submitting an import 
certificate when applying for a license for certain firearms and 
related items. Although BIS anticipates that this requirement could 
increase the burden under this collection to some degree, BIS believes 
that exporters, as part of their current compliance programs, already 
have processes in place to confirm whether the firearms and related 
items that are to be exported may be imported into these foreign 
countries. Therefore, this recordkeeping requirement likely reflects 
practices and processes exporters already have in place and will 
therefore be of minimal burden to exporters. As described below under 
the Rulemaking section under paragraph 2, BIS welcomes comments from 
the public on this aspect of this IFR.
    2. LVS additional restrictions. License Exception LVS is detailed 
under Sec.  740.3. BIS is further restricting the eligible destinations 
for LVS under paragraph (b). As amended by this IFR, LVS is no longer 
available for commodities controlled under ECCNs 0A501, 0A502, 0A504 
(except 0A504.g), 0A505, 0A506, 0A507, 0A508, and 0A509 when they are 
destined for destinations in ``CARICOM'' or destinations specified in 
both Country Groups B and D:5. The addition to the EAR of the 
``CARICOM'' as a defined term is detailed below. License Exception LVS 
remains available only for certain commodity ECCNs. These changes are 
expected to result in an increase of five hundred license applications 
received annually by BIS.
    3. License Exception BAG new restrictions and single trip limit.
    i. BAG is detailed under Sec.  740.14. License Exception BAG 
authorizes individuals leaving the United States either temporarily 
(i.e., traveling) or longer-term (i.e., moving) and crew members of 
exporting or reexporting carriers to take, as personal baggage, certain 
items. This IFR revises Sec.  740.14 such that destination eligibility 
under License Exception BAG for items controlled under ECCNs 0A501, 
0A502, 0A504, 0A505, 0A506, 0A507, 0A508, and 0A509 is limited to 
destinations other than those specified in Country Group D:5 (except 
for Zimbabwe) or destinations in ``CARICOM.''
    This IFR adds ``CARICOM'' as a defined term in Sec.  772.1, which 
lists the definitions of terms used in the EAR. The definition of 
``CARICOM'' specifies that for purposes of Sec. Sec.  740.3 and 740.14 
of the EAR, the term means an intergovernmental organization that 
consists of the following member states and associate members: member 
states: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, 
Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Lucia, Suriname, St. 
Kitts and Nevis, St. Vincent and the Grenadines, and Trinidad and 
Tobago; associate members: Anguilla, Bermuda, British Virgin Islands, 
Cayman Islands, and Turks and Caicos, as well as any other state or 
associate member that has acceded to membership in accordance with 
Article 3 or Article 231 of the Treaty of Chaguaramas for members or 
associate members, respectively. The definition of ``CARICOM'' includes 
a note specifying that Anguilla, Bermuda, British Virgin Islands, 
Cayman Islands, Montserrat, and Turks and Caicos are treated as the 
United Kingdom under all other EAR provisions that govern licensing 
requirements and license exceptions. These changes are expected to 
result in an increase of five hundred license applications received 
annually by BIS.
    ii. Limit BAG to three shotguns and firearms in total for a single 
trip. This IFR also revises Sec.  740.14 to limit the number of 
shotguns and firearms that an individual may export using BAG. 
Previously, paragraphs (e)(1)(i) and (e)(3)(i), read together, 
permitted U.S. citizens to export or reexport three shotguns, three 
firearms, and 1,000 rounds of ammunition on any one trip. This IFR 
limits U.S. citizens to three firearms or shotguns in total on any one 
trip. This change is expected to result in an increase of 50 license 
applications received annually by BIS.

D. Revisions to License Review Policies

    As part of the BIS effort to review firearms-related policies and 
address concerns related to misuse or diversion contrary to U.S. 
national security and foreign policy interests, including diversion to 
entities or activities that promote regional instability, abuse or 
violate human rights, and/or fuel criminal activities, two control 
policies were identified for revision. This IFR revises the license 
review policies under the Regional Stability (RS) and Crime Control 
(CC) sections in part 742 of the EAR pursuant to BIS's findings. The 
revisions to the RS and CC license review policies, which impose 
presumptions of denial for certain high-risk transactions, are expected 
to result in a decrease of 650 license applications received annually 
by BIS, due to certain applicants likely being deterred from applying 
for licenses.
    1. Revisions to RS license review policies. Under Sec.  
742.6(b)(1), licensing policy for RS column 1 items, this IFR makes 
several structural changes to paragraph (b)(1)(i). To make the 
paragraph more readily understandable, this IFR sets forth each license 
review policy in a separate paragraph, (b)(1)(i)(A) through (G). This 
IFR also makes conforming changes to clarify which items are reviewed 
under the policies set forth in each paragraph. This IFR also makes 
substantive revisions to RS reason for control, as detailed below.
    i. Adoption of policy of denial review policy for D:5 for certain 
0x5zz ECCNs. BIS reviews applications for exports and reexports of 
items classified under any 9x515 or ``600 series'' ECCN destined to 
Country Group D:5, destinations subject to a U.S. arms embargo, 
consistent with United States arms embargo policies in Sec.  126.1 of 
the ITAR (22 CFR 126.1). This IFR amends Sec.  742.6 of the EAR to 
extend this licensing policy to include all firearms and related items 
in ECCNs 0A501, 0A502, 0A505, 0A506, 0A507, 0A508, or 0A509 that are 
destined for D:5 destinations. This change is detailed in new paragraph 
(b)(1)(i)(D).
    Furthermore, BIS previously reviewed applications for items 
controlled under certain firearms-related ECCNs and any 9x515 ECCN 
under a policy of denial when destined for China or a Country Group E:1 
country. This IFR amends Sec.  742.6 to extend this stringent review 
policy to all items classified under ECCNs 0A501, 0A502, 0A504, 0A505, 
0A506, 0A507, 0A508, 0A509, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, 
or 0E505, or any 9x515 ECCNs. This change is detailed in new paragraph 
(b)(1)(i)(F).
    2. Revisions to CC license review policies. As stated above, this 
IFR also revises the CC licensing policy in Sec.  742.7(b) to apply 
stricter scrutiny to exports of firearms and related items to 
destinations where diversion risks are particularly acute, such as 
destinations in which significant drug trafficking and associated 
criminal activity occurs. Previously, Sec.  742.7(a) consisted of 
paragraphs (a)(1) through (6). Under this IFR, the firearms and shotgun 
related items are listed in paragraph (a)(5) (ECCNs 0A501, 0A502, 
0A504, 0A505.b,

[[Page 34692]]

0A506, 0A507, 0A508, 0E502, and 0E505). The contents of previous 
paragraphs (a)(2) and (3) are removed as a conforming change to the 
removal of CC Column 2 and CC Column 3 from shotguns. The non-firearms 
and shotgun related items remain in (a)(1). Previous paragraphs (a)(4) 
through (6) are now paragraphs (a)(2) though (4). Paragraphs (a)(2) and 
(a)(4) contain a sentence showing that controls for these items appear 
in each ECCN; a column specific to these controls does not appear in 
the Country Chart (supplement no. 1 to part 738 of the EAR).
    Given that this IFR makes Sec.  742.7(a)(5) solely pertain to 
firearms and shotguns related items, BIS is designating these items as 
having CC Column 2 reasons for control. As a result of this change, the 
public can more easily identify firearms and shotguns related items on 
the CCL. To ensure easy understanding of the applicability of license 
requirements for CC Column 2 designated items, BIS in this IFR is 
putting an X in the box on the Commerce Country Chart (supplement no. 1 
to part 738) for all countries except Canada. This change does not 
impose licensing requirements on exports or reexports to destinations 
for which a license was not previously required, as NS and RS 
requirements are already in place for all destinations other than 
Canada.
    Previously, Sec.  742.7(b) consisted of paragraphs (b)(1) and (2). 
Under this IFR, paragraph (b) consists of paragraphs (b)(1) through 
(3). Paragraphs (b)(1) and (2) remain, but apply to (a)(1) through (4). 
Paragraph (b)(3) applies to items controlled under Sec.  742.7(a)(5). 
The review policy for these items is broken out for two types of end 
users as described in section D.2.i and D.2.ii:
    i. License review policies for government end users. Paragraph 
(b)(3)(i) describes policies for license applications when the items 
are destined for government end users. These applications will be 
reviewed on a case-by-case basis to determine the risk that the items 
will be diverted or misused in a manner that would adversely impact 
U.S. national security or foreign policy.
    ii. License review policies for non-government end users. Paragraph 
(b)(3)(ii) describes policies for license applications when the items 
are destined for non-government end users. These license applications 
will also be reviewed on a case-by-case basis. They will additionally 
be reviewed under a presumption of denial if one of two conditions 
(detailed in paragraphs (b)(1)(ii)(A) and (B)) are met: (A) the items 
are being exported or reexported to a destination identified in the 
Firearms Guidance Memorandum as a destination in which it determined 
that there is a substantial risk that firearms exports to non-
governmental end users will be diverted or misused in a manner adverse 
to U.S. national security and foreign policy, or (B) there is otherwise 
a substantial risk that the items will be diverted or misused in a 
manner that would adversely impact U.S. national security or foreign 
policy.
    The presumption of denial review policy for license applications 
involving exports and reexports to high-risk destinations identified in 
the Firearms Guidance Memorandum ensures that all exports of firearms 
and related items to those destinations are consistent with U.S. 
national security and foreign policy. As discussed above, to support 
Commerce's ongoing efforts to impose export controls that further U.S. 
national security and foreign policy, State has developed a list of 
destinations in which there is a substantial risk that lawfully 
exported firearms sold to non-governmental end users could be diverted 
or misused in a manner adverse to U.S. national security and foreign 
policy. The Firearms Guidance Memorandum, which is available on the BIS 
website at www.bis.gov/guidance_memorandum and on regulations.gov, 
outlines the methodology for evaluating destination-specific risks and 
identifies 36 high-risk destinations.
    Having carefully reviewed the list and methodology, which was 
developed by national security and foreign policy experts at State in 
consultation with other experts from across the U.S. Government, BIS 
has determined that a presumption of denial should apply to 
applications for the export and reexport of firearms and related items 
involving non-government end users in these 36 destinations. Thus, as 
part of this IFR, BIS is adopting the list and adding it to a 
supplement to the EAR (see below, in this section of the preamble, for 
details).
    A presumption of denial review policy for exports and reexports to 
non-government end users to the destinations identified in the Firearms 
Guidance Memorandum will significantly further U.S. national security 
and foreign policy interests. As described above, based on analysis of 
destination-specific risk factors and consultations with U.S. Embassy 
officials and stakeholders across the U.S. Government, State determined 
that firearms and related items exported to non-government end users in 
those 36 destinations face a substantial risk of diversion or misuse in 
a manner adverse to U.S. national security and foreign policy. In other 
words, there is a substantial risk that firearms and related items 
exported to those destinations will fall into the hands of 
organizations and individuals that will use those items to expand 
transnational drug operations, spark regional conflicts, commit acts of 
terrorism, abuse human rights, destabilize governments, or harm 
communities. Applying a presumption of denial to license applications 
for those exports will ensure that the licensing process fully and 
consistently accounts for those risks, thereby significantly furthering 
and safeguarding U.S. national security and foreign policy interests.
    In addition, transparency with respect to destinations of concern 
will promote predictable and timely review of license applications and 
will help industry and other stakeholders understand the licensing 
process. It will also make the review process more efficient, thereby 
allowing BIS to focus time and resources on other license applications, 
including applications for exports to other destinations and 
applications to government end users in all destinations. Instead of 
reassessing the risks associated with transactions involving 
destinations identified in the Firearms Guidance Memorandum as 
presenting a substantial risk of diversion or misuse, BIS will be able 
to focus on assessing applications that present other, varying risk 
factors or indicia of reliability.
    Moreover, exporters will have the opportunity to overcome the 
presumption of denial by demonstrating that a specific transaction does 
not present a substantial risk of diversion or misuse. A presumption of 
denial, as opposed to an absolute prohibition, will provide BIS with 
the flexibility to tailor its review to the individual facts and 
related policy interests. For example, BIS may recommend to approve a 
transaction involving a non-government security service charged with 
protecting a third-country embassy in a destination identified in the 
Firearms Guidance Memorandum as presenting a substantial risk of 
diversion or misuse. Notably, a presumption of denial in the firearms 
context is generally consistent with BIS's licensing review policies 
under the EAR, including in connection with other sensitive items and 
destinations of concern.
    State has also committed to lead an interagency process to assess 
periodically, the risk that exports of firearms and related items to 
specific destinations, including those identified on the list, will be 
diverted or misused in a manner adverse to U.S. national

[[Page 34693]]

security and foreign policy. State will also lead a periodic 
interagency review of the factors and other aspects of in the Firearms 
Guidance Memorandum, with the goal of updating both the guidance 
memorandum and its list of destinations on an annual basis. State has 
also noted that the Firearms Guidance Memorandum and corresponding list 
of destinations may be updated outside of the annual window if there 
are exigent circumstances (e.g., a coup) or if updates are otherwise 
needed to advance U.S. national security and foreign policy interests.
    BIS will review any changes recommended as the result of the State-
led, interagency-informed assessment process, and maintain the list in 
supplement no. 3 to part 742 of the EAR. BIS will publish any additions 
or deletions to the list in the Federal Register. As set forth in new 
supp. no. 3 to part 742, the list of countries for which there is a 
presumption of denial application review policy for exports and 
reexports to non-governmental end users is as follows: The Bahamas, 
Bangladesh, Belize, Bolivia, Burkina Faso, Burundi, Chad, Colombia, 
Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras, 
Indonesia, Jamaica, Kazakhstan, Kyrgyzstan, Laos, Malaysia, Mali, 
Mozambique, Nepal, Niger, Nigeria, Pakistan, Panama, Papua New Guinea, 
Paraguay, Peru, Suriname, Tajikistan, Trinidad and Tobago, Uganda, 
Vietnam, and Yemen.
    iii. Addition of factors that will be considered for all 0x5zz 
license applications regardless of end user. For all end users, 
paragraph (b)(3) details specific factors that BIS will consider in 
assessing the risk that firearms and related items will be diverted or 
misused in a manner that would adversely impact U.S. national security 
or foreign policy. For each license application, BIS will specifically 
review concerns in the destination associated with state fragility, 
human rights and political violence, terrorism, corruption, organized 
crime or gang-related activity, drug trafficking, and past diversion or 
misuse of firearms; the nature of the end user; the capabilities, 
potential uses, and lethality of the item; and other factors as needed. 
As always, license applicants are strongly encouraged to consider 
license review factors that are detailed in the EAR when sourcing 
potential customers abroad.
    3. Revision to license review policies for Exports of Firearms to 
Organization of American States (OAS) Member Countries.
    Consistent with Commerce's findings during its policy review, this 
IFR revises the licensing policies for the export and reexport of most 
firearms and related items to all OAS member countries, under Sec.  
742.17(b). There continue to be two distinct licensing policies for 
exports and reexports of firearms and related items to OAS member 
countries: a case-by-case review policy and a policy of denial for 
applications linked to drug trafficking, terrorism, and criminal 
activities. These are further discussed below under this section D.3.
    Under this IFR, applications supported by an FC Import Certificate 
or equivalent official document issued by the government of the 
importing country will now be reviewed on a case-by-case basis, as 
opposed to the license review policy of general approval that applied 
before. This change matches the text in other provisions in part 742 of 
the EAR, which use the ``case-by-case'' text. Previously, applications 
supported by an FC Import Certificate or equivalent official document 
would ``generally be approved.'' With the increased visibility into 
transactions provided by other regulatory changes discussed in this 
IFR, a ``case-by-case'' review policy more accurately reflects the 
standards under which BIS will assesses these applications going 
forward. As part of the license review process, BIS will continue 
utilizing a variety of open-source and classified resources and 
anticipates that the other regulatory changes implemented by this IFR 
will provide increased visibility regarding these applications. These 
changes are expected to result in a decrease of 100 license 
applications received annually by BIS, due to certain applicants being 
deterred from applying for licenses because of the case-by-case license 
review policy.
    This IFR does not change the review policy of denial for 
applications linked to drug trafficking, terrorism, and criminal 
activities. Applications linked to drug trafficking, terrorism, and 
transnational organized crime activities will continue to be reviewed 
under a policy of denial. This retention of the existing policy is not 
expected to have any impact on the number of license applications 
received by BIS.

E. Changes in Support Document Requirements for Firearms License 
Applications

1. Import Certificate Requirements

    i. Require submission as part of the license application for all 
firearms license applications for Organization of American States (OAS) 
member countries and other destinations that require an import 
certificate or equivalent official document for the importation of 
firearms. Previously, BIS required the submission of an import 
certificate or other equivalent official document only for OAS member 
states; for non-OAS member states that require an import certificate or 
equivalent official document, the applicant was required to obtain a 
copy of such documentation but was not required to submit it with the 
license application unless specifically requested by BIS. Under this 
IFR, the requirement that all license applications for firearms and 
related items include an import certificate or equivalent official 
document as part of the submission will minimize the risk of an 
exporter failing to obtain an import certificate or equivalent official 
document if required by the importing country. This requirement will 
also help ensure that the importing country's government is aware of 
the shipment and has confirmed that the import is lawful. This 
requirement applies to all firearms and related items described under 
0x5zz ECCNs. These changes are expected to result in an increase of 250 
import certificates or other equivalent official documents that need to 
be submitted with BIS licenses. BIS estimates that the time to submit 
each document will be 1 minute. This will result in an increase in 
burden hours of 4 hours.
    ii. Combining the OAS and non-OAS requirements to simplify the 
requirements and improve understanding. To facilitate this support 
document requirement, this IFR revises Sec.  748.12, which addresses 
requirements for obtaining an import certificate or import permit. 
Previously, paragraph (a) specified the requirements for OAS member 
states and paragraph (e) specified the requirements for non-OAS member 
states. Given the detail set forth regarding the required 
documentation, and the fact that all destinations will be treated the 
same, this IFR removes previous paragraph (e). All applicable 
information in previous paragraph (e) is moved to revised paragraph 
(a), and conforming changes are included in revised paragraphs (a) 
through (d). These formatting and clarifying changes are expected to 
facilitate compliance and are not expected to have any impact on the 
number of import certificates or other equivalent official documents 
received by BIS. Paragraph (a)(2)(i) details OAS member countries; BIS 
is taking this opportunity to add a reference to this paragraph that 
OAS member countries includes any member country that has acceded in 
accordance with Chapter III of the Charter of the Organization of 
American States.

[[Page 34694]]

2. Requiring Purchase Orders for Certain Firearms License Applications

    i. Conforming changes to provide clarity and to make the 
requirements easier to understand. To facilitate understanding by the 
public regarding the changes discussed in sections E.2.ii and E.3 of 
this preamble, this IFR redesignates paragraphs (aa) and (bb) to 
supplement no. 2 to part 748 (Unique Application and Submission 
Requirements), such that previous (aa) paragraph, detailing ``600 
Series Major Defense Equipment,'' is redesignated as paragraph (bb). 
Previous paragraph (bb) detailing ``semi-automatic firearms controlled 
under ECCN 0A501.a'' is redesignated as paragraph (aa), such that it 
follows existing paragraph (z) detailing ``exports of firearms and 
certain shotguns temporarily in the U.S.'' By making these changes so 
that the contents of paragraphs (z) and redesignated paragraph (aa) 
appear sequentially, these requirements should be clearer to the 
public.
    This IFR also revises redesignated paragraph (aa) to include the 
unique application and submission requirements that apply to exports of 
other firearms, certain shotguns, and related items. The contents of 
the original paragraph, ``semiautomatic firearms controlled under ECCN 
0A501.a,'' are redesignated under (aa)(1), with conforming revisions 
made to the title corresponding to the addition of new ECCNs detailed 
above. New paragraph (aa)(2) requires the submission of purchase 
documentation for certain applications. New paragraph (aa)(3) requires 
the submission of passport or other national identity card information 
for certain applications. Requirements in new paragraphs (aa)(2) and 
(3) are detailed below. These formatting and clarifying changes are not 
expected to have any impact on the number of purchase orders received 
by BIS.
    ii. Addition of purchase order requirement for non-A:1 countries. 
This IFR amends the EAR to require that a purchase order be submitted 
for exports and reexports of firearms and related items to non-A:1 
countries. Previously, exporters were not required to submit a purchase 
order with BIS license applications, unless requested during the course 
of BIS's review of a particular application. This practice created a 
number of challenges. First, BIS processed and reviewed many 
applications that did not result in actual exports, thereby 
unnecessarily expending staffing resources. Previously, less than 20% 
of licensed quantities were actually exported. In addition, such 
licensing that did not result in exports offered limited visibility 
into actual demand for U.S. firearms abroad, which in turn made 
effective monitoring of diversion risks more difficult. Requiring 
purchase orders for exports and reexports to non-A:1 countries will 
enable BIS to use licensed quantities to estimate bona fide local 
demand, thereby ensuring that BIS can appropriately evaluate the 
national security and foreign policy risks associated with a given 
transaction and effectively allocate review and processing resources. 
This IFR specifies that purchase orders must be dated within 1 year of 
their submission with a license application. Purchase orders are 
required for certain items controlled under ECCNs 0A501 (except 
0A501.y), 0A502, 0A505 (except 0A505.c), 0A505.d, and 0A505.e), 0A506, 
0A507, and 0A508, and 0A509. Upon approving a license for these items, 
BIS will generally limit the licensed quantity to the quantity 
specified on the purchase order. However, applicants may request up to 
a 10% increase in quantity from the purchase order amount, which will 
be reviewed on a case-by-case basis. Additionally, parties may export 
or reexport various model types under the approved license, so long as 
the items remain consistent with the ECCN and ECCN item level paragraph 
specified on the approved application. These requirements appear in new 
paragraph (aa)(2) of supplement no. 2 to part 748. These changes are 
expected to result in a net increase of 7,109 purchase orders that will 
need to be submitted with license applications. BIS estimates that the 
time required to submit each will be 1 minute; this will result in an 
increase in burden hours of 116 hours. That estimate factors in that 
these changes are expected to result in a decrease of 500 license 
applications received annually because some exporters will be unwilling 
or unable to provide purchase orders.

3. Requiring Passport or National Identity Card for Firearms License 
Applications for Natural Persons Located in Destinations Other Than in 
Country Group A:1

    Governmental purchasers and commercial distributors constitute the 
vast majority of end users identified on firearms license applications. 
However, in some cases, an exporter or reexporter may apply for a 
license to export or reexport firearms to a natural person (individual) 
abroad. This IFR amends the EAR to require that a passport or national 
identity card be submitted for exports and reexports of firearms and 
related items to natural persons in non-A:1 countries. Previously, 
passports or other national identity cards were not required with 
submission of applications for export to individuals unless requested 
by BIS for a specific license application. Based on its history of 
reviewing applications destined for individual recipients, BIS has 
determined that a passport or national identity card would help ensure 
robust vetting of the appropriate end user identified on the 
application, including vetting by local law enforcement in the 
recipient country, particularly to address any potential diversion 
risks. For example, BIS might use a national identity card to 
distinguish between individuals with the same name. Under this IFR, 
license applications for items controlled under ECCNs 0A501 (except 
0A501.y), 0A502, 0A504, 0A505 (except 0A505.c, 0A505.d, and 0A505.e), 
0A506, 0A507, 0A508, and 0A509 for individuals in destinations other 
than Country Group A:1 require the submission of passport or other 
national identity card information for all named individual recipient 
end users of those items. This requirement is detailed under new 
paragraph (aa)(3) to supplement no. 2 to part 748. These changes are 
expected to result in an increase of 3,160 passports or other national 
identity card information that will be submitted annually. BIS 
estimates that the time required to submit each document is 1 minute; 
resulting in an increase in burden hours of 57 hours. That estimate 
factors in that these changes are expected to result in a decrease of 
100 license applications received annually by BIS, because some 
individuals will not want to provide such information to exporters or 
reexporters as part of the license application process.

F. Adoption of Formalized Interagency Working Group for Firearms 
License Application To Enhance the Existing Interagency License Review 
Process

    BIS license applications involving 0x5zz items are reviewed by the 
longstanding interagency review processes specified under part 750 of 
the EAR. Accordingly, BIS has consulted with interagency partners 
regarding the review of license applications for exports and reexports 
of these items since their respective additions to the CCL. 
Additionally, BIS has participated in an informal interagency working 
group with representatives from State since summer 2023 to ensure 
appropriate focus on firearms license applications. This interagency 
review process is an important mechanism in ensuring that U.S. national 
security and foreign policy

[[Page 34695]]

interests are adequately considered in all licensing decisions.
    This IFR builds on the existing review process by formalizing an 
interagency working group, chaired by State, to evaluate firearm 
diversion and misuse risks. By formalizing an interagency working group 
on the review process for licensing involving firearms and related 
items, BIS seeks to ensure proactive tracking across relevant 
stakeholder agencies of licensing and export data, ongoing review of 
licenses or pending applications of concern, and collaboration on 
addressing issues in various countries or with specific end users. 
Formalizing this process will help ensure its longevity and showcase 
the U.S. Government's commitment to its success. The creation of a 
formal interagency working group will help ensure that the risk factors 
outlined in this IFR (including terrorism, state fragility, corruption, 
human rights, political violence, and past diversion or misuse) are 
thoroughly vetted by interagency experts when reviewing firearms-
related license applications. State has also committed to lead 
interagency efforts to use this working group to assess the 
determinations set out in the Firearms Guidance Memorandum, with the 
goal of revising the memorandum and updating its list of high-risk 
destinations annually and as needed. Interagency licensing working 
groups are detailed under Sec.  750.4(d) of the EAR. This IFR will add 
Sec.  750.4(d)(2)(v), which describes a new working group called ``The 
Safeguard.'' The Safeguard will be chaired by State and will review 
license applications involving firearm-related items controlled under 
0x5zz ECCNs. These changes are not expected to have any impact on the 
number of license applications received by BIS.

G. Reduction in General License Validity Period (1-Year License 
Validity for Firearms Licenses)

    This IFR amends the EAR to reduce the general validity period from 
four years to one year for all future licenses involving firearms and 
related items. Because national security and foreign policy 
considerations (including human rights-related considerations) in 
destinations abroad can change rapidly, the risks or potential benefits 
associated with certain transactions can be difficult to predict 
several years in advance. Limiting the length of the license validity 
period will lead to more frequent reviews of exports and thus enable 
BIS to account for developments and often fluid circumstances in 
destinations; doing so enables more precise and timely consideration of 
diversion risk and national security and foreign policy interests. A 
shortened validity period also reduces the risk of shipments on an 
expired import certificate, as well as the risk that BIS has to suspend 
or revoke a license based on rapidly developing national security and 
foreign policy concerns.
    Previously, the general license validity period for a BIS license 
(with limited exceptions) was four years. Under this IFR, items 
controlled under ECCNs 0A501, 0A502, 0A504, 0A505, 0A506, 0A507, 0A508, 
and 0A509 are generally limited to a 12-month validity period under 
revised Sec.  750.7(g). Licenses extending beyond 12 months for 
firearms and related items may still be granted in certain limited 
circumstances, such as transactions involving intra-company transfers 
of items (e.g., from a subsidiary to a parent company) or government 
contracts that require a period of performance longer than 12 months. 
This IFR does not make any other changes to Sec.  750.7(g), and all 
other aspects of the license validity period (such as expiration date) 
continue to apply to firearms and related items. This change is 
expected to result in an increase of 500 license applications received 
annually by BIS.

H. Changes To Make Mandatory in the Automated Export System the 
Identification of End-Item Firearms and Shotguns, Along With Certain 
``Parts,'' ``Components,'' Devices, ``Accessories,'' and 
``Attachments'' for Semi-Automatic Firearms and Semi-Automatic 
Shotguns, and Conforming Changes to Conventional Arms Reporting 
Requirements

    As referenced above under section C of this preamble, this IFR 
creates four new ECCNs, 0A506, 0A507, 0A508, and 0A509, to help 
distinguish between non-automatic and semi-automatic firearms exports 
in AES EEI filings, along with the export of certain ``parts,'' 
``components,'' devices, ``accessories,'' and ``attachments'' for semi-
automatic firearms and semi-automatic shotguns. However, in order to 
further enhance the export data to distinguish between end-item 
firearms exports and other firearms ``parts,'' ``components,'' devices, 
``accessories, or ``attachments'' exports, as well as simplify the 
conventional arms reporting requirements for firearms under the EAR 
(Sec.  743.4), this IFR revises the requirement in Sec.  
758.1(g)(4)(ii), which previously allowed exporters to complete their 
conventional arms reporting requirements without submitting 
conventional arms reports to BIS. This IFR revises this reporting 
requirement by making conventional arms reporting information in the 
EEI filing in AES mandatory; it does this by specifying that exporters 
must include the items-level classification or other items-level 
descriptor in the Commodity description block in the EEI filed in AES. 
Section I further describes the conventional arms reporting-related 
changes to the EAR that are being made by this IFR.
    Specifically, this IFR revises paragraph (g)(4)(ii) to expand the 
scope of the heading to include certain ``parts,'' ``components,'' 
devices, ``accessories,'' and ``attachments'' controlled under new ECCN 
0A509. Because of the importance of these commodities for semi-
automatic firearms and semi-automatic shotguns, additional visibility 
is needed regarding these ``parts,'' ``components,'' devices, 
``accessories,'' and ``attachments'' controlled under new ECCN 0A509, 
as well as the commodities controlled under ECCNs 0A506, 0A507, and 
0A508, for the export clearance requirement under paragraph (g)(4)(ii).
    This IFR revises the paragraph (g)(4)(ii) introductory text to make 
the requirements of this paragraph mandatory instead of optional for 
all shipments that meet the specified criteria. It also expands the 
scope of this mandatory export clearance requirement to include not 
just ECCNs 0A501.a or .b and shotguns with a barrel length less than 18 
inches controlled under ECCN 0A502, but also to include items 
controlled under ECCNs 0A501.a or .b, 0A506.a or .b, 0A507.a and .b, 
shotguns with a barrel length less than 18 inches controlled under 
ECCNs 0A502 or 0A508.a. or .b, or ``parts,'' ``components,'' devices, 
``accessories,'' or ``attachments'' controlled under 0A509.a, .b, .c, 
or .d, as of the effective date of this IFR. To assist exporters in 
identifying the information that must be included in the Commodity 
description block in the EEI filing in AES, this IFR also adds new 
paragraphs (g)(4)(ii)(A) through (F). This information will be 
particularly helpful for certain ECCNs, such as new ECCN 0A506.a, which 
controls any semi-automatic centerfire (non-rimfire) rifles equal to 
.50 caliber (12.7 mm) or less that has any of the characteristics that 
will be specified under 0A506.a.1 through .a.6. New paragraph 
(g)(4)(ii)(C) specifies that, in that case, .a will appear as the first 
text in the Commodity description block in the EEI filing in AES. These 
changes are not expected to result in an increase in burden; a 
commodity description was already required to be provided in the EEI in 
AES prior to the effective date of this IFR, so including this 
additional information as part of the commodity

[[Page 34696]]

description will not change the burden hours for exporters.

I. Conventional Arms Reporting--Related Changes

    This IFR revises the conventional arms reporting requirements in 
Sec.  743.4 to make a conforming change for new ECCNs 0A506.a. and .b 
and 0A507.a. and .b. This IFR also revises Sec.  743.4 to specify that 
BIS will be relying solely on the alternative submission method for 
obtaining the required information for the conventional arms reporting, 
as was also referenced above under section F of this preamble.
    1. Conforming change to add 0A506.a and .b and 0A507.a and .b to 
the conventional arms reporting requirements. This IFR revises Sec.  
743.4 to add references to the end-item firearms controlled under ECCNs 
0A506.a and .b and 0A507.a, .b, and .c, to specify that these semi-
automatic rifles and pistols are included for the conventional arms 
reporting for the Wassenaar Arrangement semi-annual reporting and the 
United Nations annual report described under Sec.  743.4. This approach 
is consistent with how these items were previously reported when 
controlled under ECCN 0A501.a or .b. The changes discussed below 
regarding BIS's use of EEI data to meet conventional arms reporting 
requirements affect both the existing ECCNs and the newly added ECCNs 
referenced in Sec.  743.4 (i.e., ECCNs 0A501.a and .b, 0A506.a and .b, 
and 0A507.a. and .b).
    2. Specifying that BIS will use AES EEI data to meet the 
conventional arms reporting requirements of 0A501.a and .b, 0A506.a and 
.b, and 0A507.a and .b.
    In preparing this IFR, BIS reevaluated the conventional arms 
reporting requirements under existing Sec.  743.4 and the alternative 
submission method for ECCN 0A501.a and .b referenced under Sec. Sec.  
743.4(h) and 758.1(g)(4)(ii) based on its experience since ECCNs 
0A501.a and .b were added to the EAR on March 9, 2020. BIS determined, 
based on this review, that the conventional arms reporting requirements 
could be simplified by making the alternative submission method the 
sole method that exporters use to submit the information to meet the 
conventional arms reporting requirement for ECCN 0A501.a or .b, as well 
as for semi-automatic rifles controlled under ECCN 0A506.a and .b and 
semi-automatic pistols controlled under 0A507.a and .b.
    Previously, BIS added the alternative submission method in Sec.  
743.4(h) of the EAR as part of the January 2020 EAR final rule to 
reflect exporters' recommendation that BIS use AES EEI data to obtain 
the information required for these two conventional arms reports. The 
alternative submission method gave exporters the option of including 
the additional .a or .b information as the first characters to appear 
in the commodity description block in AES, rather than requiring 
submission of information on end-item firearms under ECCN 0A501.a and 
.b in separate reports to BIS. Based on data reviewed by BIS, nearly 
all exporters have been using this alternative submission method to 
meet their conventional arms reporting requirements since March 9, 
2020, the effective date of the January 2020 rule. The alternative 
submission method has also been an efficient method for extracting the 
data needed by BIS to prepare these reports.
    In addition, consistent with BIS's interest in increasing 
transparency regarding exports and reexports of the semi-automatic 
firearms and related ``parts,'' ``components,'' devices, 
``accessories,'' and ``attachments,'' this IFR revises Sec.  
758.1(g)(4)(ii), as described above under section F, to include the 
``items'' level paragraph classification as the first characters to 
appear in the Commodity description block in the EEI filed in AES 
mandatory for ECCNs 0A501.a and .b, 0A506.a and .b, 0A507.a and .b, 
0A508.a and .b. Given that a commodity description was already 
previously required in the EEI filing in AES, including this additional 
information as part of the commodity description is not expected to 
change the burden hours for exporters.
    As a result of the requirement to submit item paragraph information 
in AES, the existing provisions in Sec.  743.4 that require exporters 
to submit annual and semi-annual reports for the purposes of 
conventional arms reporting via email (``standard method'') unless the 
exporter provides the item paragraph classification with the exporter's 
AES EEI filings (``alternative method'') are no longer necessary, 
because BIS will be able to rely on AES data pursuant to the revisions 
to Sec.  758.1(g)(4)(ii) addressing conventional arms reporting for 
ECCN 0A501.a and .b, as well as for 0A506.a and .b and 0A507.a and .b. 
These changes will streamline the exporter's reporting obligations by 
limiting them to the AES filing requirement. Because nearly all 
exporters that were required to submit conventional arms reports to BIS 
were already using the alternative method, the elimination of the 
submission of email reports as an available method under revised Sec.  
743.4 will not result in a substantive change in the burden on 
exporters.

J. Revocations and Modifications to Existing Licenses

    Based on the policy rationale identified above, BIS has determined 
that it is necessary to revoke or modify certain valid licenses for the 
export and reexport of firearms and related items to non-government end 
users. As described below, on July 1, 2024, BIS will revoke all 
currently valid licenses to non-government end users in High-Risk 
Destinations for Firearms and Related Items. (See supplement no. 3 to 
part 742.) In addition, on May 30, 2024, BIS will modify certain other 
valid licenses with validity periods that end more than one year from 
the effective date of this IFR by rendering them invalid one year from 
the effective date of this IFR. These modified licenses cover exports 
and reexports to non-government end users in destinations outside High-
Risk Destinations for Firearms and Related Items, Country Group A:1, 
Israel, and Ukraine.

1. License Revocations

    On July 1, 2024, pursuant to Sec.  750.8 of the EAR, BIS will 
revoke existing licenses for the export and reexport of firearms and 
related items to non-government end users in destinations identified in 
supplement no. 3 to part 742 (High-Risk Destinations for Firearms and 
Related Items). As discussed above, the Firearms Guidance Memorandum 
has identified that there is a substantial risk that firearms and 
related items exported or reexported to non-government end users in 
these destinations will be diverted or misused in a manner adverse to 
U.S. national security and foreign policy, including for use in drug 
trafficking, regional conflict, or human rights abuses. Accordingly, as 
discussed above, this IFR applies a presumption of denial to all 
license applications submitted on or after May 30, 2024 and seeking to 
export or reexport firearms and related items to non-government end 
users in these destinations. Existing licenses for exports and 
reexports to non-government end users in these destinations were issued 
under previous review criteria. Accordingly, failure to revoke these 
licenses would allow firearms and related items to continue to be 
exported to these destinations for up to several more years without 
review under the new policy. Such ongoing exports or reexports of 
firearms and related items could create a substantial risk of diversion 
and stockpiling in a manner contrary to U.S. national security and 
foreign policy interests.
    BIS will issue these revocations on July 1, 2024, 30 days after the 
effective

[[Page 34697]]

date of this IFR, to ensure that planned shipments may be completed 
without disruption to ongoing trade. For any license that is revoked, 
the license holder may appeal a revocation to the Under Secretary for 
Industry and Security pursuant to Sec.  756 of the EAR. Procedures for 
filing such an appeal are described in detail in Sec.  756.2(b) of the 
EAR and will be included in the letters that BIS will send to notify 
license holders of the pending revocation. License holders whose 
license(s) are revoked by BIS may reapply to export or reexport the 
items covered by the revoked license without prejudice under BIS's new 
licensing policy, as described in this IFR.

2. License Modification

    In addition to revoking the licenses described above, BIS will, 
upon the effective date of this IFR, May 30, 2024, pursuant to Sec.  
750.8 of the EAR, modify certain existing licenses for firearms and 
related items to non-government end users that have more than one year 
remaining of their validity periods to render them invalid on May 30, 
2025. These modifications will not affect licenses to non-government 
end users in Country Group A:1, Israel, and Ukraine (which implement 
export controls consistent with the Wassenaar Arrangement), or to High-
Risk Destinations for Firearms and Related Items. The affected licenses 
were not reviewed under the new policies established in this IFR, and 
were issued with a four-year validity period rather than the one-year 
general validity period established in this IFR. As discussed elsewhere 
in this IFR, BIS is shortening the validity period of licenses to 
export or reexport firearms and related items to one year to enable 
more precise consideration of the risk of diversion or misuse, 
consistent with national security and foreign policy interests. 
Accordingly, BIS is modifying the validity period of certain existing 
licenses, not subject to revocation, in furtherance of this effort.
    The revocations and modifications described in section J, are 
expected to result in an increase of 270 license applications received 
annually by BIS. However, this is anticipated to be a one-time 
increase.

K. Request for Public Comment

    In addition to seeking public comment on the changes reflected in 
this IFR, including the four new ECCNs and conforming changes (see 
Table 1 under section B.6 of this IFR), BIS is specifically seeking 
public comment on the issues below. See the ADDRESSES section of this 
rule for instructions on how to submit comments.
    (1) BIS seeks comments on the expected impact on individuals, as 
well as industry, should BIS impose a time limit on the use of Sec.  
740.14 BAG License Exception for firearms classified under ECCNs 0A501, 
0A502, 0A506, 0A507, and 0A508. Such limits would require the items to 
be returned to the United States or other country of re-export within 
the specified time limit, or to otherwise be disposed of in accordance 
with the EAR, e.g., by obtaining a BIS license to authorize a longer 
temporary export or a permanent export. For temporary exports or 
reexports longer than the BAG time limit, a license would be required 
to authorize the export or reexport. In considering revisions to BAG, 
BIS identified that imposing a time limit of 45-, 60-, 90-, or 180-days 
on how long the exporter is eligible to keep the firearms out of the 
country could help address diversion risks.
    (2) BIS seeks comments on potential additional revisions to Sec.  
740.14 of the EAR to require exporters of applicable firearms and 
related commodities authorized under License Exception BAG to submit 
EEI filings in AES under Sec.  758.1(b)(9). This IFR does not make 
changes to the exemption from the EEI filing requirements for License 
Exception BAG authorized exports or the export clearance requirements 
under Sec.  758.11, which will continue to require submission of the 
CBP Form 4457. However, BIS seeks comments on the potential impact on 
individuals if BIS were to remove the requirements in Sec.  758.11 and 
instead require mandatory EEI filing in AES. BIS is aware of concerns 
about requiring individuals to file EEI in AES for License Exception 
BAG authorized exports; because of the benefits to increasing 
transparency and reducing the chance of diversion, BIS is considering 
whether additional changes may be warranted in this export clearance 
area. BIS also welcomes comments that provide alternative suggestions 
for increasing transparency and reducing diversion risk without 
imposing a mandatory EEI filing requirement in AES for exports 
authorized under License Exception BAG.

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. ECRA, as amended, provides the legal basis for BIS's principal 
authorities and serves as the authority under which BIS issues this 
IFR.

Rulemaking Requirements

    1. BIS has examined the expected impact of this IFR as required by 
Executive Orders 12866, 13563, and 14094, which 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). 
This IFR is considered a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866, as amended by Executive Order 
14094.
    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 Office of 
Management and Budget (OMB) Control Number. This regulation involves 
five collections currently approved by OMB.
     OMB Control Number 0694-0088, Simplified Network 
Application Processing System;
     OMB Control Number 0694-0096, Five Year Records Retention 
Period;
     OMB Control Number 0694-0122, Licensing Responsibilities 
and Enforcement;
     OMB Control Number 0694-0137, License Exceptions and 
Exclusions; and
     OMB Control Number 0607-0152, Automated Export System 
(AES) Program.
    Additional information regarding these collections of information--
including all background materials--can be found at https://www.reginfo.gov/public/do/PRAMain by using the search function to enter 
either the title of the collection or the OMB Control Number.
    With regard to control number 0694-0088, Simple Network Application 
Process and Multipurpose Application Form. BIS expects an increase of 
1003 burden hours for this collection; however, 132 hours of this 
increase is anticipated to be a one-time increase related to the 
revocation and modification of licenses for firearms and related items 
described in section J of this IFR. These additional burden hours will 
be added during the current renewal approval process for this 
information collection.
    For OMB control number 0694-0137, License Exceptions and 
Exclusions, BIS expects a slight increase in burden

[[Page 34698]]

hours for this collection because of the new restriction on the use of 
License Exceptions under Sec.  740.2(a)(24). This requires exporters to 
obtain a copy of an import certificate or equivalent document (if 
required by the importing country) before the exporter can use any 
license exception for items controlled under ECCNs 0A501, 0A502, 0A504, 
0A505, 0A506, 0A507, 0A508, and 0A509. Although BIS anticipates that 
this requirement could increase reporting burden to some degree under 
this collection, BIS believes that exporters, as part of their existing 
compliance programs, likely already have processes in place to confirm 
whether the firearms and related items that are to be exported may be 
imported into these foreign countries. BIS believes this requirement is 
likely reflective of practices and processes exporters already have in 
place and will therefore be of a minimal burden to exporters. BIS 
welcomes comments on this information collection requirement and on the 
assumptions that this confirmation requirement is not a deviation from 
exporters' current practices to ensure that exports of firearms and 
related items that are authorized under BIS license exceptions may be 
imported into the respective countries of import. In order to protect 
U.S. national security and foreign policy interests and to ensure that 
EAR license exceptions are not used to authorize an export of a firearm 
or related commodity when a foreign government requires an import 
certificate or other equivalent document that has not been issued, this 
IFR imposes a new general restriction on the use of all EAR license 
exceptions under Sec.  740.2(a)(24). A similar type of import 
certificate or other equivalent document requirement applies for items 
authorized under a BIS license.
    The AES change included in this rule under Sec.  758.1(g)(4)(ii) is 
not anticipated to result in a change in the burden under the OMB 
control number 0607-0152, Automated Export System (AES) Program because 
exporters are already required to provide a description in the 
Commodity description block in the EEI filing in AES. Similarly, 
changes impacting OMB control numbers 0694-0096 and 0694-0122, Five 
Year Records Retention Period and Licensing Responsibilities and 
Enforcement, respectively, are not expected to result in an increase in 
burden hours.
    3. This rule does not contain policies with federalism implications 
as that term is defined under Executive Order 13132.
    4. Pursuant to Section 1762 of ECRA (50 U.S.C. 4821), this action 
is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requirements for notice of proposed rulemaking, opportunity for public 
participation, and delay in effective date.
    5. Because neither the Administrative Procedure Act nor any other 
law requires notice of proposed rulemaking and an opportunity for 
public comment for this rule, the analytical requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. 
Accordingly, no Final Regulatory Flexibility Analysis is required and 
none has been prepared.

List of Subjects

15 CFR Part 732, 738, 740, 750, and 758

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

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and 
patents, Research, Science and technology.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 748

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

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Reporting and recordkeeping 
requirements.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, parts 732, 734, 738, 740, 742, 743, 748, 750, 758, 
762, 772 and 774 of the Export Administration Regulations (15 CFR parts 
730-774) are amended as follows:

PART 732--STEPS FOR USING THE EAR

0
1. The authority citation for 15 CFR part 732 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. 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 732.2 is amended by revising paragraph (b) introductory text 
to read as follows:


Sec.  732.2  Steps regarding scope of the EAR.

* * * * *
    (b) Step 2: Publicly available technology and software. This step 
is relevant for both exports and reexports. Determine if your 
technology or software is publicly available as defined and explained 
at part 734 of the EAR. The Bureau of Industry and Security (BIS) 
website at https://www.bis.doc.gov contains several practical examples 
describing publicly available technology and software that are outside 
the scope of the EAR under the FAQ section of the website. See the FAQs 
under the heading, EAR Definitions, Technology and Software, 
Fundamental Research, and Patents FAQs at https://www.bis.doc.gov/index.php/documents/compliance-training/export-administrationregulations-training/1554-ear-definitions-faq/file. The 
examples are illustrative, not comprehensive. Note that encryption 
software classified under ECCN 5D002 on the Commerce Control List 
(refer to supplement no. 1 to part 774 of the EAR) is subject to the 
EAR even if publicly available, except for publicly available 
encryption object code software classified under ECCN 5D002 when the 
corresponding source code meets the criteria specified in Sec.  
740.13(e) of the EAR. The following also remains subject to the EAR: 
``Software'' or ``technology'' for the production of a firearm, or 
firearm frame or receiver, controlled under ECCNs 0A501, 0A506, 0A507, 
or 0A509, as referenced in Sec.  734.7(c) of the EAR.
* * * * *

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

0
3. The authority citation for 15 CFR part 734 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. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of November 8, 2022, 87 FR 68015 (November 10, 2022).


0
4. Section 734.7 is amended by revising paragraph (c) to read as 
follows:


Sec.  734.7  Published.

* * * * *
    (c) The following remains subject to the EAR: ``software'' or 
``technology'' for the production of a firearm, or firearm

[[Page 34699]]

frame or receiver, controlled under ECCNs 0A501, 0A506, 0A507, or 
0A509, that is made available by posting on the internet in an 
electronic format, such as AMF or G-code, and is ready for insertion 
into a computer numerically controlled machine tool, additive 
manufacturing equipment, or any other equipment that makes use of the 
``software'' or ``technology'' to produce the firearm frame or receiver 
or complete firearm.
* * * * *

PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART

0
5. The authority citation for 15 CFR part 738 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. 2151 note; 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.


0
6. Supplement no. 1 to part 738 is revised to read as follows:

                                                                      Supplement No. 1 to Part 738--Commerce Country Chart
                                                                                      [Reason for control]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                 Chemical and biological          Nuclear        National security   Missile  Regional stability    Firearms            Crime control           Anti- terrorism
                                         weapons             nonproliferation  --------------------   tech   --------------------  convention  -------------------------------------------------
          Countries          --------------------------------------------------                    ----------                    --------------
                                CB 1      CB 2      CB 3      NP 1      NP 2      NS 1      NS 2      MT 1      RS 1      RS 2        FC 1        CC 1      CC 2      CC 3      AT 1      AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Afghanistan.................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Albania 2 3.................        X         X   ........        X   ........        X         X         X         X         X   ............  ........        X   ........
Algeria.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Andorra.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Angola......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Antigua and Barbuda.........        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Argentina...................        X   ........  ........  ........  ........        X   ........        X         X   ........            X         X         X         X
Armenia.....................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Aruba.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Australia \3\...............        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Austria 3 4.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Azerbaijan..................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Bahamas, The................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Bahrain.....................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Bangladesh..................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Barbados....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Belarus \6\.................        X         X         X         X         X         X         X         X         X         X   ............        X         X   ........
Belgium \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Belize......................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Benin.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Bhutan......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Bolivia.....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Bosnia and Herzegovina......        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Botswana....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Brazil......................        X         X   ........  ........  ........        X         X         X         X         X             X         X         X         X
Brunei......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Bulgaria \3\................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Burkina Faso................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Burma.......................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Burundi.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Cambodia....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X   ........
Cameroon....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Canada......................        X   ........  ........  ........  ........  ........  ........  ........  ........  ........            X   ........  ........  ........
Cape Verde..................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Central African Republic....        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Chad........................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Chile.......................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
China.......................        X         X         X         X         X         X         X         X         X         X   ............        X         X         X
Colombia....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Comoros.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Congo (Democratic Republic          X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
 of the) \1\................
Congo (Republic of the).....        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Costa Rica..................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Cote d'Ivoire...............        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Croatia \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Cuba........................  See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Cura[ccedil]ao..............        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Cyprus 2 3 4................        X   ........  ........  ........  ........        X         X         X         X         X   ............        X         X         X
Czech Republic \3\..........        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Denmark \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Djibouti....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Dominica....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Dominican Republic..........        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Ecuador.....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Egypt.......................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
El Salvador.................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Equatorial Guinea...........        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Eritrea \1\.................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Estonia \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Ethiopia....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Fiji........................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Finland 3 4.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
France \3\..................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Gabon.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Gambia, The.................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Georgia.....................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Germany \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Ghana.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Greece \3\..................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Grenada.....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Guatemala...................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X

[[Page 34700]]

 
Guinea......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Guinea-Bissau...............        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Guyana......................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Haiti.......................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Honduras....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Hungary \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Iceland \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
India \7\...................        X   ........  ........        X   ........        X   ........        X         X   ........  ............  ........        X   ........
Indonesia...................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Iran \1\....................  See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination..
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Iraq \1\....................        X         X         X         X         X         X         X         X         X         X   ............        X         X   ........
Ireland 3 4.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Israel......................        X         X         X         X         X         X         X         X         X         X   ............        X         X         X
Italy \3\...................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Jamaica.....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
 Japan\3\...................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Jordan......................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Kazakhstan..................        X         X         X   ........  ........        X         X         X         X         X   ............        X         X   ........
Kenya.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Kiribati....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Korea, North \1\............  See Sections 742.19 and 746.4 of the EAR to determine whether a license is required in order to export or reexport to this destination.
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Korea, South 3 4............        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Kosovo......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Kuwait......................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Kyrgyzstan..................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Laos........................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X   ........
Latvia \3\..................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Lebanon \1\.................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Lesotho.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Liberia.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X   ........        X
Libya \1\...................        X         X         X         X         X         X         X         X         X         X   ............        X         X         X
Liechtenstein \5\...........        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Lithuania \3\...............        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Luxembourg \3\..............        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Macau.......................        X         X         X         X         X         X         X         X         X         X   ............        X         X         X
Macedonia (The Former               X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
 Yugoslav Republic of)......
Madagascar..................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Malawi......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Malaysia....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Maldives....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Mali........................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Malta 2 3 4.................        X   ........  ........  ........  ........        X         X         X         X         X   ............        X         X         X
Marshall Islands............        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Mauritania..................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Mauritius...................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Mexico......................        X   ........  ........  ........  ........        X   ........        X         X   ........            X         X         X         X
Micronesia (Federated State         X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
 of)........................
Moldova.....................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Monaco......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Mongolia....................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Montenegro..................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Morocco.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Mozambique..................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Namibia.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Nauru.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Nepal.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Netherlands \3\.............        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
New Zealand \3\.............        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Nicaragua...................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Niger.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Nigeria.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Norway \3\..................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Oman........................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Pakistan....................        X         X         X         X         X         X         X         X         X         X   ............        X         X         X
Palau.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Panama......................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Papua New Guinea............        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Paraguay....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Peru........................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Philippines.................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Poland \3\..................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Portugal \3\................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Qatar.......................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Romania \3\.................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Russia \6\..................        X         X         X         X         X         X         X         X         X         X   ............        X         X   ........
Rwanda......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
St. Kitts and Nevis.........        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
St. Lucia...................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
St. Vincent and the                 X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
 Grenadines.................
Samoa.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
San Marino..................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Sao Tome and Principe.......        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Saudi Arabia................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X

[[Page 34701]]

 
Senegal.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Serbia......................        X         X   ........  ........  ........        X         X         X         X         X   ............        X         X         X
Seycheles...................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Sierra Leone................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Singapore...................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Sint Maarten (the Dutch two-        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
 fifths of the island of
 Saint Martin)..............
Slovakia \3\................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Slovenia \3\................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Solomon Islands.............        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Somalia \1\.................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
South Africa 2 3 4..........        X         X   ........  ........  ........        X   ........        X         X   ........  ............        X         X         X
South Sudan, Republic of....        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Spain \3\...................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Sri Lanka...................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Sudan \1\...................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Suriname....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Swaziland...................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Sweden 3 4..................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Switzerland 3 4.............        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Syria.......................  See Sec.   746.9 of the EAR to determine whether a license is required in order to export or reexport to this destination.
                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Taiwan......................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Tajikistan..................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Tanzania....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Thailand....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Timor-Leste.................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Togo........................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Tonga.......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Trinidad and Tobago.........        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Tunisia.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Turkey \3\..................        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Turkmenistan................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Tuvalu......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Uganda......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Ukraine \8\.................        X   ........  ........  ........  ........        X         X         X         X         X   ............        X         X   ........
United Arab Emirates........        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
United Kingdom \3\..........        X   ........  ........  ........  ........        X   ........        X         X   ........  ............  ........        X   ........
Uruguay.....................        X         X   ........        X   ........        X         X         X         X         X             X         X         X         X
Uzbekistan..................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Vanuatu.....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Vatican City................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Venezuela...................        X         X         X         X         X         X         X         X         X         X             X         X         X         X
Vietnam.....................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........
Western Sahara..............        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Yemen.......................        X         X         X         X   ........        X         X         X         X         X   ............        X         X         X
Zambia......................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
Zimbabwe....................        X         X   ........        X   ........        X         X         X         X         X   ............        X         X         X
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ See Sec.   746.1(b) for United Nations Security Council Sanctions under the EAR. See Sec.   746.3 for United Nations Security Council-related license requirements for exports and reexports
  to Iraq or transfer within Iraq under the EAR, as well as regional stability licensing requirements not included in the Country Chart.
\2\ See Sec.   742.4(a) for special provisions that apply to exports and reexports to these countries of certain thermal imaging cameras.
\3\ See Sec.   742.6(a)(3) for special provisions that apply to military commodities that are subject to ECCN 0A919.
\4\ See Sec.   742.6(a)(2) and (4)(ii) regarding special provisions for exports and reexports of certain thermal imaging cameras to these countries.
\5\ Refer to Switzerland for licensing requirements for Liechtenstein under the EAR.
\6\ See Sec.   746.5 of the EAR for additional license requirements under the Russian Industry Sector Sanctions for ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 and items
  identified in supplement no. 2 to part 746 of the EAR. See Sec.   746.8 of the EAR for Sanctions against Russia and Belarus, including additional license requirements for items listed in any
  ECCN on the CCL.
\7\ Note that a license is still required for items controlled under ECCNs 6A003.b.4.b and 9A515.e for RS column 2 reasons when destined to India.
\8\ See Sec.   746.6 of the EAR for additional license requirements for exports and reexports to the Crimea region of Ukraine and the so-called Donetsk People's Republic (DNR) and Luhansk
  People's Republic (LNR) regions of Ukraine and transfers (in-country) within the Crimea, DNR, and LNR regions of Ukraine for all items subject to the EAR, other than food and medicine
  designated as EAR99 and certain EAR99 or ECCN 5D992.c software for internet-based communications.

PART 740--LICENSE EXCEPTIONS

0
7. The authority citation for 15 CFR 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
8. Section 740.2 is amended by:
0
a. Revising paragraphs (a)(4)(iii), (a)(21) and (23); and
0
b. Adding paragraph (a)(24).
    The revisions and addition read as follows:


Sec.  740.2  Restrictions on all License Exceptions.

* * * * *
    (a) * * *
    (4) * * *
    (iii) Authorized by Sec.  740.14(e) of the EAR; or
* * * * *
    (21) The reexport or transfer (in-country) of firearms classified 
under ECCNs 0A501, 0A502, 0A506, 0A507, or 0A508 with either an ITAR-
defined ``foreign defense article'' (22 CFR 120.39) that is not subject 
to Department of State jurisdiction that is incorporated into the 
firearm or ``knowledge'' that an ITAR-defined ``defense article'' (22 
CFR 120.31) will be subsequently incorporated into the firearm, where 
the ``(foreign) defense article'' is described in USML Category 
I(h)(2). In such instances, no license exceptions are available except 
for License Exception GOV (Sec.  740.11(b)(2)(ii)).
* * * * *
    (23) Exports, reexports, or transfers (in-country) of semi-
automatic firearms or shotguns controlled under ECCNs 0A506, 0A507, or 
0A508 sold under a contract or otherwise part of an export that 
includes $4,000,000 or more of such items are not eligible for any 
license exceptions except to personnel and agencies of the U.S. 
Government

[[Page 34702]]

under License Exception GOV (Sec.  740.11(b) of the EAR), for official 
use by an agency of NATO, or where a license exception would otherwise 
be available for the export, reexport, or transfer (in-country) of such 
items to a destination specified in Country Groups A:5 or A:6 (see 
supplement no. 1 to part 740 of the EAR) except Mexico, South Africa, 
or Turkey.
    (24) Exporters of items controlled under ECCNs 0A501, 0A502, 0A504, 
0A505, 0A506, 0A507, 0A508, or 0A509 wishing to use an EAR license 
exception for such items must first have the consignee obtain and 
provide to the exporter an import certification or equivalent document, 
if the importing country requires one, prior to using an EAR license 
exception.
* * * * *

0
9. Section 740.3 is amended by revising paragraph (b) to read as 
follows:


Sec.  740.3  Shipments of limited value (LVS).

* * * * *
    (b) Eligible destinations. This License Exception is available for 
all destinations in Country Group B (see supplement no. 1 to this 
part), provided that the net value of the commodities included in the 
same order and controlled under the same ECCN entry on the CCL does not 
exceed the amount specified in the LVS paragraph for that entry. 
However, License Exception LVS is not available for 0x5zz items (except 
0A504.g) when destined for countries in ``CARICOM'' or countries in 
Country Group D:5.
* * * * *

0
10. Section 740.9 is amended by revising paragraphs (a) introductory 
text, (b) introductory text, and (b)(5) to read as follows:


Sec.  740.9  Temporary imports, exports, reexports, and transfers (in-
country) (TMP).

    (a) Temporary exports, reexports, and transfers (in-country). 
License Exception TMP authorizes exports, reexports, and transfers (in-
country) of items for temporary use abroad (including use in or above 
international waters) subject to the conditions specified in this 
paragraph (a). No item may be exported, reexported, or transferred (in-
country) under this paragraph (a) if an order to acquire the item, such 
as a purchase order, has been received before shipment; with prior 
knowledge that the item will stay abroad beyond the terms of this 
License Exception; or when the item is for subsequent lease or rental 
abroad. The references to various countries and country groups in these 
TMP-specific provisions do not limit or amend the prohibitions in Sec.  
740.2 of the EAR on the use of license exceptions generally, such as 
for exports of 9x515 or ``600 series'' items to destinations in Country 
Group D:5. This paragraph (a) does not authorize any export of a 
commodity controlled under ECCNs 0A501.a or .b, 0A506 or 0A507, or 
shotguns with a barrel length less than 18 inches controlled under ECCN 
0A502 or 0A508 to, or any export of such an item that was imported into 
the United States from, a country in Country Group D:5 (supplement no. 
1 to this part), or from Russia, Georgia, Kazakhstan, Kyrgyzstan, 
Moldova, Turkmenistan, Ukraine, or Uzbekistan. The only provisions of 
this paragraph (a) that are eligible for use to export such items are 
paragraph (a)(5) of this section (``Exhibition and demonstration'') and 
paragraph (a)(6) of this section (``Inspection, test, calibration, and 
repair''). In addition, this paragraph (a) may not be used to export 
more than 75 firearms per shipment. In accordance with the requirements 
in Sec.  758.1(b)(9) and (g)(4) of the EAR, the exporter or its agent 
must provide documentation that includes the serial number, make, 
model, and caliber of each firearm being exported by filing these data 
elements in an EEI filing in AES. In accordance with the exclusions in 
License Exception TMP under paragraph (b)(5) of this section, the entry 
clearance requirements in Sec.  758.1(b)(9) do not permit the temporary 
import of: Firearms controlled in ECCNs 0A501.a or .b, 0A506, or 0A507 
that are shipped from or manufactured in a Country Group D:5 country, 
or that are shipped from or manufactured in Russia, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan 
(except for any firearm model designation (if assigned) controlled by 
ECCNs 0A501, 0A506, or 0A507 that is specified under annex A in 
supplement no. 4 to this part); or shotguns with a barrel length less 
than 18 inches controlled in ECCNs 0A502 or 0A508 that are shipped from 
or manufactured in a Country Group D:5 country, or from Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, because of the exclusions in License Exception TMP under 
paragraph (b)(5) of this section.
* * * * *
    (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, 0A506, 0A507, 
or shotguns with a barrel length less than 18 inches controlled in ECCN 
0A502 or 0A508.
* * * * *
    (5) Exports of firearms and certain shotguns temporarily in the 
United States. This paragraph (b)(5) authorizes the export of no more 
than 75 firearms per shipment controlled by ECCN 0A501.a or .b, 0A506, 
0A507, or shotguns with a barrel length less than 18 inches controlled 
in ECCN 0A502 or 0A508 that are temporarily in the United States for a 
period not exceeding one year, provided that:
    (i) The firearms were not shipped from or manufactured in a U.S. 
arms embargoed country, i.e., destination listed in Country Group D:5 
in supplement no. 1 to this part;
    (ii) The firearms were not shipped from or manufactured in Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, except for any firearm model controlled by 0A501, 0A506, or 
0A507 that is specified under annex A in supplement no. 4 to this part; 
and
    (iii) The firearms are not ultimately destined to a U.S. arms 
embargoed country, i.e., destination listed in Country Group D:5 in 
supplement no. 1 to this part;
    (iv) When the firearms entered the U.S. as a temporary import, the 
temporary importer or its agent:
    (A) Provided the following statement to U.S. Customs and Border 
Protection: ``This shipment will be exported in accordance with and 
under the authority of License Exception TMP (15 CFR 740.9(b)(5))'';
    (B) Provided to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value; and
    (C) Provided (if temporarily imported for a trade show, exhibition, 
demonstration, or testing) to U.S. Customs and Border Protection the 
relevant invitation or registration documentation for the event and an 
accompanying letter that details the arrangements to maintain effective 
control of the firearms while they are in the United States; and
    (v) In addition to the export clearance requirements of part 758 of 
the EAR, the exporter or its agent must provide the import 
documentation related to paragraph (b)(5)(iv)(B) of this section to 
U.S. Customs and Border Protection at the time of export.

    Note 1 to paragraph (b)(5): In addition to complying with all 
applicable EAR

[[Page 34703]]

requirements for the export of commodities described in paragraph 
(b)(5) of this section, exporters and temporary importers should 
contact U.S. Customs and Border Protection (CBP) at the port of 
temporary import or export, or at the CBP website, for the proper 
procedures for temporarily importing or exporting firearms 
controlled in ECCNs 0A501.a or .b, 0A506, or 0A507, or shotguns with 
a barrel length less than 18 inches controlled in ECCN 0A502 or 
0A508, including regarding how to provide any data or documentation 
required by BIS.


    Note 2 to paragraph (b): A commodity withdrawn from a bonded 
warehouse in the United States under a `withdrawal for export' 
customs entry is considered as `moving in transit'. It is not 
considered as `moving in transit' if it is withdrawn from a bonded 
warehouse under any other type of customs entry or if its transit 
has been broken for a processing operation, regardless of the type 
of customs entry.


    Note 3 to paragraph (b): Items shipped on board a vessel or 
aircraft and passing through the United States from one foreign 
country to another may be exported without a license provided that 
(a) while passing in transit through the United States, they have 
not been unladen from the vessel or aircraft on which they entered, 
and (b) they are not originally manifested to the United States.


    Note 4 to paragraph (b): A shipment originating in Canada or 
Mexico that incidentally transits the United States en route to a 
delivery point in the same country does not require a license.

* * * * *

0
11. Section 740.10 is amended by revising paragraphs (b)(1) and (4) to 
read as follows:


Sec.  740.10  License Exception Servicing and replacement of parts and 
equipment (RPL).

* * * * *
    (b) * * *
    (1) The provisions of this paragraph (b) authorize the export and 
reexport to any destination, except for 9x515 or ``600 series'' items 
to destinations identified in Country Group D:5 (see supplement no. 1 
to this part) or otherwise prohibited under the EAR, of commodities and 
software that were sent to the United States or to a foreign party for 
servicing and replacement of commodities and software ``subject to the 
EAR'' (see Sec.  734.2(a) of the EAR) that are defective or that an end 
user or ultimate consignee has found unacceptable. The export of 
firearms controlled by ECCNs 0A501.a or .b, 0A506, or 0A507 or shotguns 
with a barrel length less than 18 inches controlled in ECCN 0A502 or 
0A508 temporarily in the United States for servicing and replacement 
may be exported under paragraph (b)(2) or (3) of this section only if 
the additional requirements in paragraph (b)(4) of this section are 
also met.
* * * * *
    (4) This paragraph (b)(4) authorizes the export of firearms 
controlled by ECCNs 0A501.a or .b, 0A506, 0A507 or shotguns with a 
barrel length less than 18 inches controlled in ECCNs 0A502 or 0A508 
that are temporarily in the United States for servicing or replacement 
for a period not exceeding one year or the time it takes to service or 
replace the commodity, whichever is shorter, provided that the 
requirements of paragraph (b)(2) or (3) of this section are met and:
    (i) The firearms were not shipped from or manufactured in Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, except for any firearm model controlled by 0A501, 0A506, or 
0A507 that is specified under Annex A in Supplement No. 4 to this part;
    (ii) When the firearms entered the U.S. as a temporary import, the 
temporary importer or its agent:
    (A) Provided the following statement to U.S. Customs and Border 
Protection: ``This shipment will be exported in accordance with and 
under the authority of License Exception RPL (15 CFR 740.10(b))'';
    (B) Provided to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value; and
    (C) Provided (if temporarily imported for servicing or replacement) 
to U.S. Customs and Border Protection the name, address and contact 
information (telephone number and/or email) of the organization or 
individual in the U.S. that will be receiving the item for servicing or 
replacement; and
    (iii) In addition to the export clearance requirements of part 758 
of the EAR, the exporter or its agent must provide the import 
documentation related to paragraph (b)(4)(iii)(B) of this section to 
U.S. Customs and Border Protection at the time of export.

    Note 1 to paragraph (b)(4): In addition to complying with all 
applicable EAR requirements for the export of commodities described 
in this paragraph (b)(4), exporters and temporary importers should 
contact U.S. Customs and Border Protection (CBP) at the port of 
temporary import or export, or at the CBP website, for the proper 
procedures for temporarily importing or exporting firearms 
controlled in ECCN 0A501.a or .b, 0A506, 0A507 or shotguns with a 
barrel length less than 18 inches controlled in ECCN 0A502 or 0A508, 
including regarding how to provide any data or documentation 
required by BIS.

* * * * *

0
12. Section 740.11 is amended by revising the introductory text to read 
as follows:


Sec.  740.11  Governments, international organizations, international 
inspections under the Chemical Weapons Convention, and the 
International Space Station (GOV).

    This License Exception authorizes exports and reexports for 
international nuclear safeguards; U.S. government agencies or 
personnel; agencies of cooperating governments; international 
inspections under the Chemical Weapons Convention; and the 
International Space Station. Commodities listed in ECCNs 0A501, 0A506, 
0A507, 0A508, and 0A509 are eligible only for transactions described in 
paragraphs (b)(2)(i) and (ii) of this section. Any item listed in a 
0x5zz ECCN for export, reexport, or transfer (in-country) to an E:1 
country is eligible only for transactions described in paragraphs 
(b)(2)(i) and (ii) solely for U.S. Government official use of this 
section.
* * * * *

0
13. Section 740.14 is amended by revising paragraph (e) to read as 
follows:


Sec.  740.14  Baggage (BAG).

* * * * *
    (e) Special provisions for firearms and ammunition. (1) A United 
States citizen or a permanent resident alien leaving the United States 
may export or reexport shotguns with a barrel length of 18 inches or 
over controlled under ECCN 0A502 and 0A508 and shotgun shells 
controlled under ECCN 0A505.b and .c under this License Exception, 
subject to the following limitations:
    (i) Not more than three firearms may be taken on any one trip (this 
includes shotguns in ECCNs 0A502 or 0A508, as well as firearms in ECCNs 
0A501, 0A506, or 0A507).
    (ii) The shotguns and shotgun shells must be with the person's 
baggage.
    (iii) The shotguns and shotgun shells must be for the person's 
exclusive use for legitimate hunting or lawful sporting purposes, 
scientific purposes, or personal protection, and not for resale or 
other transfer of ownership or control. Accordingly, except as provided 
in (e)(2) of this section, shotguns may not be exported permanently 
under this License Exception. All shotguns and unused shotgun shells 
must be returned to the United States. Note that since certain 
countries may require an Import Certificate or a U.S. export license

[[Page 34704]]

before allowing the import of a shotgun, you should determine the 
import requirements of your country of destination in advance.
    (2) A nonresident alien leaving the United States may export or 
reexport under this License Exception only such shotguns and shotgun 
shells as he or she brought into the United States under the provisions 
of the Department of Justice Regulations (27 CFR 478.115(d)).
    (3) A United States citizen or a permanent resident alien leaving 
the United States may export under this License Exception firearms, 
``parts,'' ``components,'' ``accessories,'' or ``attachments'' 
controlled under ECCNs 0A501, 0A506, 0A507, and 0A509 and ammunition 
controlled under ECCN 0A505.a, subject to the following limitations:
    (i) Not more than three firearms may be taken on any one trip (this 
includes firearms in ECCNs 0A501, 0A506, or 0A507, as well as shotguns 
in ECCNs 0A502 or 0A508), and no more than 1,000 rounds of ammunition 
may be taken on any one trip.
    (ii) ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' exported pursuant to this paragraph (e)(3) must be of a 
kind and limited to quantities that are reasonable for the activities 
described in paragraph (e)(3)(iv) of this section or that are necessary 
for routine maintenance of the firearms being exported.
    (iii) The commodities must be with the person's baggage.
    (iv) The commodities must be for the person's exclusive use and not 
for resale or other transfer of ownership or control. Accordingly, 
except as provided in paragraph (e)(4) of this section, firearms, 
``parts,'' ``components,'' ``accessories,'' ``attachments,'' and 
ammunition, may not be exported permanently under this License 
Exception. All firearms, ``parts,'' ``components,'' ``accessories,'' or 
``attachments'' controlled under ECCN 0A501, 0A506, 0A507, and 0A509 
and all unused ammunition controlled under ECCN 0A505.a exported under 
this License Exception must be returned to the United States.
    (v) Travelers leaving the United States temporarily are required to 
declare the firearms, ``parts,'' ``components,'' ``accessories,'' 
``attachments,'' and ammunition being exported under this License 
Exception to a Customs and Border Protection (CBP) officer prior to 
departure from the United States and present such items to the CBP 
officer for inspection, confirming that the authority for the export is 
License Exception BAG and that the exporter is compliant with its 
terms.
    (4) A nonimmigrant alien leaving the United States may export or 
reexport under this License Exception only such firearms controlled 
under ECCN 0A501, 0A506, 0A507, and ammunition controlled under ECCN 
0A505 as he or she brought into the United States under the relevant 
provisions of Department of Justice regulations at 27 CFR part 478.
    (5) Destination eligibility under this License Exception for items 
controlled under ECCNs 0A501, 0A502, 0A504, 0A505, 0A506, 0A507, 0A508, 
or 0A509 is limited to countries other than those in Country Group D:5 
(except for Zimbabwe) and ``CARICOM'' countries.
* * * * *

0
14. Section 740.20 is amended by revising paragraph (b)(2)(ii) to read 
as follows:


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

* * * * *
    (b) * * *
    (2) * * *
    (ii) License Exception STA may not be used for:
    (A) Any item controlled in ECCNs 0A501.a, .b, .c, .d, or .e; 0A506; 
0A507; 0A509; 0A981; 0A982; 0A983; 0A503; 0E504; 0E982; or
    (B) Shotguns with barrel length less than 18 inches controlled in 
0A502 or 0A508.
* * * * *

PART 742--CONTROL POLICY--CCL BASED CONTROLS

0
15. The authority citation for 15 CFR 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 8, 2022, 87 FR 68015 (November 10, 
2022).


0
16. Section 742.6 is amended by revising paragraph (b)(1)(i) to read as 
follows:


Sec.  742.6  Regional stability.

* * * * *
    (b) * * *
    (1) * * *
    (i) Applications for exports and reexports of ECCN 0A501, 0A502, 
0A504, 0A505, 0A506, 0A507, 0A508, 0A509, 0B501, 0B505, 0D501, 0D505, 
0E501, 0E504, and 0E505 items, 9x515, and ``600 series'' items will be 
reviewed under the following policies:
    (A) Applications for exports and reexports of ECCN 0A501, 0A502, 
0A504, 0A505, 0A506, 0A507, 0A508, 0A509, 0B501, 0B505, 0D501, 0D505, 
0E501, 0E504, and 0E505 items; 9x515 and ``600 series'' items will be 
reviewed on a case-by-case basis to determine whether the transaction 
is contrary to the national security or foreign policy interests of the 
United States, including the foreign policy interest of promoting the 
observance of human rights throughout the world.
    (B) Other applications for exports and reexports described in 
paragraph (a)(1), (2), (6), or (8) of this section will be reviewed on 
a case-by-case basis to determine whether the export or reexport could 
contribute directly or indirectly to any country's military 
capabilities in a manner that would alter or destabilize a region's 
military balance contrary to the foreign policy interests of the United 
States.
    (C) Applications for reexports of items described in paragraph 
(a)(3) of this section will be reviewed applying the policies for 
similar commodities that are subject to the ITAR.
    (D) Applications for export or reexport of items classified under 
ECCNs 0A501, 0A502, 0A505, 0A506, 0A507, 0A508, or 0A509, or any 9x515 
or ``600 series'' ECCN requiring a license in accordance with paragraph 
(a)(1) or (9) of this section, will also be reviewed consistent with 
United States arms embargo policies in Sec.  126.1 of the ITAR (22 CFR 
126.1), if destined to a country set forth in Country Group D:5 in 
Supplement No. 1 to part 740 of the EAR.
    (E) Applications for export or reexport of ``parts,'' 
``components,'' ``accessories,'' ``attachments,'' ``software,'' or 
``technology'' ``specially designed'' or otherwise required for the F-
14 aircraft will generally be denied.
    (F) Applications for exports and reexports of items classified 
under ECCNs 0A501, 0A502, 0A504, 0A505, 0A506, 0A507, 0A508, 0A509, 
0B501, 0B505, 0D501, 0D505, 0E501, 0E504, or 0E505, or any 9x515 ECCN 
will be subject to a policy of denial, when destined to China or a 
country listed in E:1 in Supplement No. 1 to part 740 of the EAR.
    (G) Applications for exports and reexports of ECCNs 0A501, 0A502, 
0A504, 0A505, 0A506, 0A507, 0A508, 0A509, 0B501, 0B505, 0D501, 0D505, 
0E501, 0E504, and 0E505 items will be subject to a policy of denial 
when there is reason to believe the transaction involves criminal 
organizations, rebel groups, street gangs, or other similar

[[Page 34705]]

groups or individuals, that may be disruptive to regional stability, 
including within individual countries. * * *
* * * * *

0
17. Revise Sec.  742.7 to read as follows:


Sec.  742.7  Crime control and detection.

    (a) License requirements. In support of U.S. foreign policy to 
promote the observance of human rights throughout the world, a license 
is required to export and reexport crime control and detection 
equipment, related technology and software as follows:
    (1) Crime control and detection instruments and equipment and 
related ``technology'' and ``software'' identified in the appropriate 
ECCNs on the CCL under CC Column 1 in the Country Chart column of the 
``License Requirements'' section. A license is required to countries 
listed in CC Column 1 (Supplement No. 1 to part 738 of the EAR). Items 
affected by this requirement are identified on the CCL under the 
following ECCNs: 0A977, 0A978, 0A979, 0D977, 0E977, 1A984, 1A985, 
3A980, 3A981, 3D980, 3E980, 4A003 (for fingerprint computers only), 
4A980, 4D001 (for fingerprint computers only), 4D980, 4E001 (for 
fingerprint computers only), 4E980, 6A002 (for police-model infrared 
viewers only), 6E001 (for police-model infrared viewers only), 6E002 
(for police-model infrared viewers only), and 9A980.
    (2) Items designed for the execution of human beings as identified 
in ECCN 0A981 require a license to all destinations including 
Australia, Canada, and the United Kingdom. Controls for these items 
appear in each ECCN; a column specific to these controls does not 
appear in the Country Chart (supplement no. 1 to part 738 of the EAR).
    (3) Certain crime control items require a license to all 
destinations, except Canada only. These items are identified under 
ECCNs 0A982, 0A503, and 0E982. Controls for these items appear in each 
ECCN; a column specific to these controls does not appear in the 
Country Chart (supplement no. 1 to part 738 of the EAR).
    (4) See Sec.  742.11 of the EAR for further information on items 
controlled under ECCN 0A983, which require a license to all 
destinations, including Australia, Canada, and the United Kingdom. 
Controls for these items appear in each ECCN; a column specific to 
these controls does not appear in the Country Chart (supplement no. 1 
to part 738 of the EAR).
    (5) Items detailed under this paragraph are specific to certain 
firearms, shotguns, and related items. Crime control and detection 
instruments and equipment and related ``technology'' and ``software'' 
identified in the appropriate ECCNs on the CCL under CC Column 2 in the 
Country Chart column of the ``License Requirements'' section. A license 
is required to countries listed in CC Column 2 (supplement no. 1 to 
part 738 of the EAR). Items affected by this requirement are identified 
on the CCL under the following ECCNs: 0A501 (except 0A501.y), 0A502, 
0A504, 0A505. a, .b, and .x, 0A506, 0A507, 0A508, 0A509, 0D501, 0D505, 
0E501, 0E502, 0E504, and 0E505.
    (b) Licensing policy. (1) Applications for items controlled under 
paragraphs (a)(1) through (a)(4) of this section will generally be 
considered favorably on a case-by-case basis, unless there is civil 
disorder in the country or region or unless there is a risk that the 
items will be used to violate or abuse human rights. The judicious use 
of export controls is intended to deter human rights violations and 
abuses, distance the United States from such violations and abuses, and 
avoid contributing to civil disorder in a country or region.
    (2) BIS will review license applications in accordance with the 
licensing policy in paragraph (b)(1) of this section for items that are 
not controlled under this section but that require a license pursuant 
to another section for any reason other than short supply and could be 
used by the recipient Government or other end user specifically to 
violate or abuse human rights.
    (3) Applications for items controlled under paragraph (a)(5) of 
this section will be reviewed under the following license review 
policies:
    (i) Applications destined for government end users will be reviewed 
on a case-by-case basis to determine whether there is a risk of 
diversion or misuse of the items in a manner that would adversely 
impact U.S. national security or foreign policy.
    (ii) Those applications destined for non-government end users will 
be reviewed on a case-by-case basis, unless one of the following apply, 
in which case they will be reviewed under a presumption of denial:
    (A) The destination is identified in supplement no. 3 to this part; 
or
    (B) There is a substantial risk that the items will be diverted or 
misused in a manner that would adversely impact U.S. national security 
or foreign policy.

    Note 1 to paragraph (b)(3):  In reviewing applications under 
this paragraph, BIS will consider the following risks in the 
destination country or region: firearms trafficking or diversion, 
terrorism, corruption, human rights concerns and political violence, 
state fragility, organized crime or gang-related activity, and drug 
trafficking. BIS will also consider prior instances of diversion or 
misuse; the capabilities, potential uses, and lethality of the item; 
the nature of the end user; and other factors as appropriate.

    (c) Contract sanctity. Contract sanctity date: August 22, 2000. 
Contract sanctity applies only to items controlled under ECCNs 0A982, 
0A503, and 0E982 destined for countries not listed in CC Column 1 of 
the Country Chart (supplement no. 1 to part 738 of the EAR).
    (d) U.S. controls. In maintaining its controls on crime control and 
detection items, the United States considers international norms 
regarding human rights and the practices of other countries that 
control exports to promote the observance of human rights. However, 
these controls are not based on the decisions of any multinational 
export control regime and may differ from controls imposed by other 
countries.

0
18. Section 742.17 is amended by revising paragraphs (b) and (f) to 
read as follows:


Sec.  742.17  Exports of firearms to OAS member countries.

* * * * *
    (b) Licensing policy. Applications will be reviewed on a case-by-
case basis when supported by an FC Import Certificate or equivalent 
official document issued by the government of the importing country. 
However, there is a policy of denial for applications to export items 
linked to such activities as drug trafficking, terrorism, and 
transnational organized crime.
* * * * *
    (f) Items/Commodities. Items requiring a license under this section 
are ECCNs 0A501 (except 0A501.y), 0A502, 0A504 (except 0A504.f), 0A505 
(except 0A505.d), 0A506, 0A507, 0A508, and 0A509. (See supplement no. 1 
to part 774 of the EAR).
* * * * *

0
19. Add supplement no. 3 to part 742 to read as follows:

Supplement No. 3 to Part 742--High-Risk Destinations for Firearms and 
Related Items

Bahamas,
The Bangladesh
Belize
Bolivia
Burkina Faso
Burundi
Chad
Colombia

[[Page 34706]]

Dominican Republic
Ecuador
El Salvador
Guatemala
Guyana
Honduras
Indonesia
Jamaica
Kazakhstan
Kyrgyzstan
Laos
Malaysia
Mali
Mozambique
Nepal
Niger
Nigeria
Pakistan
Panama
Papua New Guinea
Paraguay
Peru
Suriname
Tajikistan
Trinidad and Tobago
Uganda
Vietnam
Yemen

PART 743--SPECIAL REPORTING AND NOTIFICATION

0
20. The authority citation for 15 CFR 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. (January 23, 2020).


0
21. Section 743.4 is revised to read as follows:


Sec.  743.4  Conventional arms reporting.

    (a) Scope. This section outlines special reporting requirements for 
exports of certain items included in the UN Register of Conventional 
Arms (UNRoCA) and Wassenaar Arrangement (WA) Munitions List. These 
reports cover substantially similar arms. States participating in the 
UNRoCA report annually on all transfers of arms (see 
www.disarmament.unoda.org/convarms/register/); Participating States of 
the Wassenaar Arrangement exchange information every six months on 
deliveries and transfers to non-WA governments of conventional arms set 
forth in the Wassenaar Arrangement's Basic Documents under Part II 
``Guideline and Procedures, including the Initial Elements'', Appendix 
3: ``Specific Information Exchange on Arms Content by Category''. 
Public Documents, Vol. 1--Founding Documents at https://www.wassenaar.org/app/uploads/2021/12/Public-Docs-Vol-I-Founding-Documents.pdf). BIS obtains the information needed for such 
conventional arms reporting from the information exporters are required 
to submit in the EEI submission in AES, pursuant to Sec.  758.1(b)(9) 
and (g)(4)(ii) of the EAR. No additional reporting to BIS is required 
for purposes of this section. BIS does not submit reports for reexports 
or transfers (in-country) under this section. BIS does not include 
exports to Wassenaar member countries, identified in supplement no. 1 
to part 743 in the Wassenaar reports. required under this section.
    (b) Information included in the reports--(1) Authorizations 
reported. Exports authorized under BIS licenses, License Exceptions 
TMP, RPL, STA, or GOV (see part 740 of the EAR) and under the Validated 
End User authorization (see Sec.  748.15 of the EAR).
    (2) ECCNs reported. ECCNs 0A501.a and .b, 0A506.a. and .b, and 
0A507.a and .b.
    (3) Quantity and recipient state reported. The quantity and the 
name of the recipient state.
    (c) Contacts. Information concerning the reporting requirements for 
items identified in paragraph (b)(2) of this section is available from 
the Office of Nonproliferation and Foreign Policy Controls (NFPC), 
Tel.: (202) 482-4188, Fax: (202) 482-4145.

0
22. Section 743.6 is amended by revising paragraphs (a), (b), and (c) 
to read as follows:


Sec.  743.6  Prior notifications to Congress of exports of certain 
semi-automatic firearms.

    (a) General requirement. Applications to export semi-automatic 
firearms controlled by ECCNs 0A506 or 0A507 will be notified to 
Congress as provided in this section before licenses for such items are 
issued, except as specified in paragraphs (a)(1) and (2) of this 
section.
    (1) Exports of semi-automatic firearms controlled by ECCNs 0A506 or 
0A507 to personnel and agencies of the U.S. Government under License 
Exception GOV (Sec.  740.11(b) of the EAR) do not require such 
notification.
    (2) Exports of semi-automatic firearms controlled by ECCNs 0A506 or 
0A507 for official use by an agency of NATO do not require such 
notification.
    (b) Notification criteria. Unless excluded in paragraphs (a)(1) and 
(2) of this section, BIS will notify Congress prior to issuing a 
license authorizing the export of items to Mexico, South Africa, or 
Turkey or any other country not listed in Country Group A:5 or A:6 (see 
supplement no. 1 to part 740 of the EAR) if the items are sold under a 
contract or are otherwise part of an export transaction that includes 
$4,000,000 or more of semi-automatic firearms controlled by ECCNs 0A506 
or 0A507.
    (c) License application information. In addition to information 
required on the application, the exporter must include a copy of the 
signed contract or, if there is no contract, a written explanation from 
the applicant (including a statement of the value of the firearms 
controlled by ECCNs 0A506 or 0A507 to be exported) for any proposed 
export described in paragraph (b) of this section. License applications 
for semi-automatic firearms controlled by ECCNs 0A506 or 0A507 may 
include other nonautomatic firearms, shotguns, other 0x5zz items, or 
other items subject to the EAR, but the applicant must clearly identify 
the semi-automatic firearms controlled by ECCNs 0A506 or 0A507. The 
applicant clearly distinguishing the semi-automatic firearms controlled 
by ECCNs 0A506 or 0A507 from any other items on the license application 
will assist BIS in assessing whether the license application requires 
congressional notification under this section and identifying the 
information that will need to be reported to Congress. Any activity 
intended to circumvent notification requirements is prohibited. Such 
devices include, but are not limited to, the splitting or structuring 
of contracts to avoid exceeding applicable notification dollar value 
limits described in paragraph (a) of this section.
* * * * *

PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND 
DOCUMENTATION

0
23. The authority citation for 15 CFR 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 4, 2022, 87 FR 48077 (August 5, 2022).


0
24. Section 748.8 is amended by revising paragraph (z) to read as 
follows:


Sec.  748.8  Unique application and submission requirements.

* * * * *
    (z) Firearms.

0
25. Section 748.12 is amended by revising the introductory text, and 
paragraphs (a) through (d) to read as follows:


Sec.  748.12  Firearms import certificate or import permit.

    License applications for certain firearms and related commodities 
require support documents in accordance with this section.
    (a) Requirement to obtain and submit documentation. Unless an 
exception in

[[Page 34707]]

Sec.  748.9(c) applies, an import certificate or permit is required for 
license applications for firearms and related commodities, regardless 
of value, if required by the importing country. For OAS member states, 
this requirement is consistent with the OAS Model Regulations described 
in Sec.  742.17 of the EAR. The exporter or reexporter must obtain and 
submit with the license application the original or a copy of the 
import certificate or permit before applying for an export or reexport 
license in situations in which an import certificate or permit is 
required by the importing country.
    (1) Items subject to requirement. Firearms and related commodities 
are those commodities controlled under 0x5zz ECCNs.
    (2) Countries subject to requirement. (i) OAS member countries 
include: Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, 
Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominica, 
Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, 
Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, 
Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, 
Suriname, Trinidad and Tobago, Uruguay, Venezuela, and any member 
country that has acceded in accordance with Chapter III of the Charter 
of the Organization of American States.
    (ii) All other countries that require an import certificate or 
permit.
    (3) Equivalent official document in place of an import certificate 
or permit. For those countries that have not yet established or 
implemented an import certificate procedure, BIS will accept an 
equivalent official document (e.g., import license or letter of 
authorization) issued by the government of the importing country as 
supporting documentation for the export of commodities detailed under 
paragraph (a)(1) of this section.
    (b) Obtaining the document. (1) Applicants must request that the 
importer (e.g., ultimate consignee or purchaser) obtain the import 
certificate, permit, 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 this document or a certified copy, 
the importer must provide the original or a certified copy to the 
license applicant.
    (2) If the government of the importing country will not issue such 
document, the applicant must supply the information described in 
paragraphs (c)(1) and (c)(6) through (c)(8) of this section on company 
letterhead.
    (c) Content of the document. The document must contain the 
following information:
    (1) Applicant's name and address. The applicant may be either the 
exporter, supplier, or order party.
    (2) Import Certificate Identifier/Number.
    (3) Name of the country issuing the certificate or unique country 
code.
    (4) Date the document was issued, in international date format 
(e.g., 24/12/12 for 24 December 2012, or 3/1/99 for 3 January 1999).
    (5) Name of the agency issuing the certificate, address, telephone 
and facsimile numbers, signing officer name, and signature.
    (6) Name of the importer, address, telephone and facsimile numbers, 
country of residence, representative's name if commercial or government 
body, citizenship, and signature.
    (7) Name of the end user(s), if known and different from the 
importer, address, telephone and facsimile numbers, country of 
residence, representative's name if commercial (authorized distributor 
or reseller) or government body, citizenship, and signature. Note that 
BIS does not require the identification of each end user when the 
firearms and related commodities will be resold by a distributor or 
reseller if unknown at the time of export.
    (8) Description of the commodities approved for import including a 
technical description and total quantity of firearms, parts and 
components, ammunition and parts.

    Note 1 to paragraph (c)(8):  You must furnish the consignee with 
a detailed technical description of each commodity to be given to 
the government for its use in issuing the document. For example, for 
shotguns, provide the type, barrel length, overall length, number of 
shots, the manufacturer's name, and the country of manufacture. For 
ammunition, provide the caliber, velocity and force, type of bullet, 
manufacturer's name and country of manufacture.

    (9) Expiration date of the document in international date format 
(e.g., 24/12/12) or the date the items must be imported, whichever is 
earlier.
    (10) Name of the country of export (i.e., United States).
    (11) Additional information. Certain countries may require the 
tariff classification number, by class, under the Brussels Convention 
(Harmonized Tariff Code) or the specific technical description of a 
commodity. For example, shotguns may need to be described in barrel 
length, overall length, number of shots, manufacturer's name and 
country of manufacture. The technical description is not the Export 
Control Classification Number (ECCN).
    (d) Procedures for using document with license application--(1) 
Information necessary for license application. The license application 
must include the same commodities as those listed on the document.
    (2) Alterations. After the document is used to support the issuance 
of a license, no corrections, additions, or alterations may be made on 
the same document by any person. Any necessary corrections, additions, 
or alterations should be noted by the applicant in a separate statement 
on file with the applicant.
    (3) Validity period. Documents issued by the importing country will 
be valid until the expiration date on the documents themselves.

    Note 2 to paragraph (d)(3):  Applicants for license applications 
for exports and reexports must submit an import certificate, permit, 
or comparable document with the license application. All BIS 
licenses for ECCNs 0A501, 0A505, 0A506, 0A507, 0A508, and 0A509 
commodities will include a standard rider that requires that the 
applicant/exporter must have a current FC Import Certificate on file 
prior to export. 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.)''

* * * * *

0
26. Supplement no. 2 to part 748 is amended by revising paragraph 
(z)(1), note 1 to paragraph (z), and paragraphs (aa) and (bb) to read 
as follows:

Supplement No. 2 to Part 748--Unique Application and Submission 
Requirements

* * * * *
    (z) * * *
    (1) Certification. If you are submitting a license application for 
the export of firearms controlled by ECCNs 0A501.a or .b, 0A506, or 
0A507, or shotguns with a barrel length less than 18 inches controlled 
in ECCNs 0A502 or 0A508 that will be temporarily in the United States, 
e.g., for servicing and repair or for intransit shipments, you must 
include the following certification in Block 24:
    The firearms in this license application will not be shipped from 
or manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
Turkmenistan, Ukraine, or Uzbekistan,

[[Page 34708]]

except for any firearm model controlled by 0A501, 0A506, or 0A507 that 
is specified under Annex A in supplement no. 4 to part 740. I and the 
parties to this transaction will comply with the requirements specified 
in paragraphs (z)(2)(i) and (ii) of supplement no. 2 to part 748.
* * * * *

    Note 1 to paragraph (z):  In addition to complying with all 
applicable EAR requirements for the export of commodities described 
in paragraph (z) of this supplement, exporters and temporary 
importers should contact U.S. Customs and Border Protection (CBP) at 
the port of temporary import or export, or at the CBP website, for 
the proper procedures for temporarily importing or exporting 
firearms controlled in ECCNs 0A501.a or .b, 0A506, or 0A507 or 
shotguns with a barrel length less than 18 inches controlled in 
ECCNs 0A502 or 0A508, including regarding how to provide any data or 
documentation required by BIS.

* * * * *
    (aa) Exports of other firearms, certain shotguns, and related 
commodities. (1) Semi-automatic firearms controlled under 0A506 and 
0A507. For export license applications that require prior notifications 
to congress of exports of semi-automatic firearms controlled under 
ECCNs 0A506 and 0A507 under the criteria of Sec.  743.6, the exporter 
must include a copy of the signed contract or, if there is no contract, 
a written explanation from the applicant (including a statement of the 
value of the firearms controlled by ECCNs 0A506 and 0A507 to be 
exported). License applications for semi-automatic firearms controlled 
by ECCNs 0A506 and 0A507 may include other non-automatic firearms, 
shotguns, other 0x5zz items, or other items subject to the EAR, but the 
applicant must clearly identify the semi-automatic firearms controlled 
by ECCNs 0A506 and 0A507.
    (2) Purchase orders for certain commodities controlled under ECCNs 
0A501, 0A502, 0A505, 0A506, 0A507, 0A508, and 0A509. License 
applications for items controlled under ECCNs 0A501 (except 0A501.y), 
0A502, 0A505 (except 0A505.c, 0A505.d, and 0A505.e), 0A506, 0A507, 
0A508, or 0A509 to destinations other than Country Group A:1 require 
the submission of purchase documentation (e.g., a purchase order, 
request for proposals, or other appropriate documentation) with the 
submission of the license application, dated within one year of 
submission with the license application. Upon approving a license for 
these items, BIS will generally limit the licensed quantity to the 
quantity specified on the purchase order. However, applicants may 
request up to a 10% variance in quantity from the purchase order 
amount, which will be reviewed on a case-by-case basis. Additionally, 
exporters may export various model types under the approved license, so 
long as the items remain consistent with the ECCN and ECCN item 
paragraph specified on the approved application.
    (3) Passport or other national identity card information. License 
applications for items controlled under ECCNs 0A501 (except 0A501.y), 
0A502, 0A505 (except 0A505.c, 0A505.d, and 0A505.e), 0A506, 0A507, 
0A508, or 0A509 to destinations other than Country Group A:1 require 
the submission of passport or other national identity card information 
when the end user is an individual person.
    (bb) ``600 Series Major Defense Equipment.'' For license 
applications that require prior notifications to Congress of exports of 
``600 series major defense equipment'' pursuant to Sec.  743.5, the 
exporter must include a copy of the signed contract (including a 
statement of the value of the ``600 Series Major Defense Equipment'' to 
be exported under the contract). (See Sec.  743.5(d) of the EAR)

PART 750--APPLICATION PROCESSING, ISSUANCE, AND DENIAL

0
27. The authority citation for 15 CFR part 750 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.; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 
44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 
2013 Comp., p. 223; Presidential Determination 2003-23, 68 FR 26459, 
3 CFR, 2004 Comp., p. 320.


0
28. Section 750.4 is amended by adding paragraph (d)(2)(v) to read as 
follows:


Sec.  750.4  Procedures for processing license applications.

* * * * *
    (d) * * *
    (2) * * *
    (v) The Safeguard. The Safeguard, chaired by the Department of 
State, reviews license applications involving firearm and shotgun 
related items controlled under 0x5zz ECCNs.
* * * * *

0
29. Section 750.7 is amended by revising paragraph (g) to read as 
follows:


Sec.  750.7  Issuance of licenses.

* * * * *
    (g) License validity period. Licenses involving the export or 
reexport of items will generally have a four-year validity period, 
unless a different validity period has been requested and specifically 
approved by BIS or is otherwise specified on the license at the time 
that it is issued. Exceptions from the four-year validity period 
include: license applications for items controlled for short supply 
reasons, which will be limited to a one-year validity period and 
license applications reviewed and approved as an ``emergency'' (see 
Sec.  748.4(h) of the EAR); and controlled under ECCNs 0A501, 0A502, 
0A504, 0A505, 0A506, 0A507, 0A508, or 0A509, which will generally be 
limited to a one-year validity period. Emergency licenses will expire 
no later than the last day of the calendar month following the month in 
which the emergency license is issued. The expiration date will be 
clearly stated on the face of the license. If the expiration date falls 
on a legal holiday (Federal or State), the validity period is 
automatically extended to midnight of the first business day following 
the expiration date.
    (1) Extended validity period. BIS will consider granting a validity 
period exceeding four years (or exceeding one year for applications 
subject to that shorter validity period) on a case-by-case basis when 
extenuating circumstances warrant such an extension. Requests for such 
extensions may be made at the time of application or after the license 
has been issued and it is still valid. BIS will not approve changes 
regarding other aspects of the license, such as the parties to the 
transaction and the countries of ultimate destination. An extended 
validity period will generally be granted where, for example, the 
transaction is related to a multi-year project; when the period 
corresponds to the duration of a manufacturing license agreement, 
technical assistance agreement, warehouse and distribution agreement, 
or license issued under the International Traffic in Arms Regulations; 
when production lead time will not permit an export or reexport during 
the original validity period of the license; when an unforeseen 
emergency prevents shipment within the 4-year validity of the license; 
or for other similar circumstances.
    (2) Request for extension. (i) The applicant must submit a letter 
in writing to request an extension in the validity period of a 
previously approved license. The subject of the letter must be titled: 
``Request for Validity Period Extension'' and contain the following 
information:
    (A) The name, address, and telephone number of the requestor;
    (B) A copy of the original license, with the license number, 
validation

[[Page 34709]]

date, and current expiration date legible; and
    (C) Justification for the extension;
    (ii) It is the responsibility of the applicant to ensure that all 
applicable support documents remain valid and are in the possession of 
the applicant. If the request for extension is approved, BIS will 
provide the applicant with a written response.
* * * * *

PART 758--EXPORT CLEARANCE REQUIREMENTS AND AUTHORITIES

0
30. The authority citation for 15 CFR part 758 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.


0
31. Section 758.1 is amended by revising paragraphs (b)(9), (c)(1), and 
(g)(4) to read as follows:


Sec.  758.1  The Electronic Export Information (EEI) filing to the 
Automated Export System (AES).

* * * * *
    (b) * * *
    (9) For all exports, except for exports authorized under License 
Exception BAG, as set forth in Sec.  740.14 of the EAR, of commodities 
controlled under ECCNs 0A501.a or .b, 0A506, or 0A507, shotguns with a 
barrel length less than 18 inches controlled under ECCNs 0A502 or 
0A508, or ammunition controlled under ECCN 0A505 except for .c, 
regardless of value or destination, including exports to Australia, 
Canada, and the United Kingdom.
* * * * *
    (c) * * *
    (1) License Exception Baggage (BAG), as set forth in Sec.  740.14 
of the EAR. See 15 CFR 30.37(x) of the FTR;

    Note 1 to paragraph (c)(1): See the export clearance 
requirements for exports of firearms controlled under ECCNs 0A501.a 
or .b, 0A506, or 0A507, shotguns with a barrel length less than 18 
inches controlled under ECCNs 0A502 or 0A508, or ammunition 
controlled under ECCN 0A505, authorized under License Exception BAG, 
as set forth in Sec.  740.14 of the EAR.

* * * * *
    (g) * * *
    (4) Exports of firearms and related items. This paragraph (g)(4) 
includes two separate requirements under paragraphs (g)(4)(i) and (ii) 
of this section that are used to better identify exports of certain 
firearms under the EAR. Paragraph (g)(4)(i) of this section is limited 
to certain EAR authorizations. Paragraph (g)(4)(ii) of this section 
applies to all EAR authorizations that require EEI filing in AES.
    (i) Identifying firearms by manufacturer, model, caliber, and 
serial number in the EEI filing in AES. For any export authorized under 
License Exception TMP or a BIS license authorizing a temporary export 
of items controlled under ECCNs 0A501.a or .b, 0A506, or 0A507 or 
shotguns with a barrel length less than 18 inches controlled under 
ECCNs 0A502 or 0A508, in addition to any other required data for the 
associated EEI filing, you must report the manufacturer, model, 
caliber, and serial number of the exported items. The requirements of 
this paragraph (g)(4)(i) also apply to any other export authorized 
under a BIS license that includes a condition or proviso on the license 
requiring the submission of this information specified in paragraph (g) 
of this section when the EEI is filed in AES.
    (ii) Identifying firearms and certain ``parts,'' ``components,'' 
devices, ``accessories,'' and ``attachments'' 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, 0A506, 
0A507, shotguns with a barrel length less than 18 inches controlled 
under ECCNs 0A502 or 0A508.a.1, or .a.2, or ``parts,'' ``components,'' 
devices, ``accessories,'' or ``attachments'' controlled under 0A509.a, 
.b, .c, or .d, in addition to any other required data for the 
associated EEI filing, the exporter must include the items paragraph 
classification or other control descriptor as specified in paragraphs 
(g)(4)(ii)(A) through (F) for ECCNs 0A501, 0A502, 0A506, 0A507, 0A508, 
or 0A509, as applicable, as the first text to appear in the Commodity 
description block in the EEI filing in AES. (See Sec.  743.4 of the EAR 
for the use of this information for ECCNs 0A501.a or .b, 0A506.a or .b, 
and 0A507.a, or .b for conventional arms reporting).
    (A) If exporting firearms controlled under 0A501, enter .a or .b, 
as applicable;
    (B) If exporting shotguns with a barrel length less than 18 inches 
controlled under 0A502, enter .SB;
    (C) If exporting semi-automatic rifles controlled under 0A506, 
enter .a or .b, as applicable;
    (D) If exporting semi-automatic pistols controlled under 0A507, 
enter .a or .b, as applicable;
    (E) If exporting semi-automatic shotguns controlled under 0A508, 
enter .a or .b, as applicable; or
    (F) If exporting ``parts,'' ``components,'' devices, 
``accessories,'' or ``attachments'' controlled under ECCN 0A509, enter 
.a, .b, .c, .d, or .e, as applicable.

    Note 2 to paragraph (g)(4): If a commodity described in 
paragraph (g)(4) of this section is exported under License Exception 
TMP under Sec.  740.9(a)(6) of the EAR for inspection, test, 
calibration, or repair is not consumed or destroyed in the normal 
course of authorized temporary use abroad, the commodity must be 
disposed of or retained in one of the ways specified in Sec.  
740.9(a)(14)(i), (ii), or (iii) of the EAR. For example, if a 
commodity described in this paragraph (g)(4) was destroyed while 
being repaired after being exported under Sec.  740.9(a)(6), the 
commodity described in this paragraph (g)(4) would not be required 
to be returned. If the entity doing the repair returned a 
replacement of the commodity to the exporter from the United States, 
the import would not require an EAR authorization. The entity that 
exported the commodity described in this paragraph (g)(4) and the 
entity that received the commodity would need to document this as 
part of their recordkeeping related to this export and subsequent 
import to the United States.

* * * * *

0
32. Section 758.10 is amended by revising paragraphs (a) and notes 1 
and 2 to paragraph (b)(1) to read as follows:


Sec.  758.10  Entry clearance requirements for temporary imports.

    (a) Scope. This section specifies the temporary import entry 
clearance requirements for firearms ``subject to the EAR'' that are on 
the United States Munitions Import List (USMIL, 27 CFR 447.21), except 
for firearms ``subject to the EAR'' that are temporarily brought into 
the United States by nonimmigrant aliens under the provisions of 
Department of Justice regulations at 27 CFR part 478 (See Sec.  
740.14(e) of the EAR for information on the export of these firearms 
``subject to the EAR''). These firearms are controlled in ECCNs 0A501.a 
or .b, 0A506 or 0A507, or shotguns with a barrel length less than 18 
inches controlled in ECCNs 0A502 or 0A508. Items that are temporarily 
exported under the EAR must have met the export clearance requirements 
specified in Sec.  758.1.
    (1) An authorization under the EAR is not required for the 
temporary import of ``items'' that are ``subject to the EAR,'' 
including for ``items'' ``subject to the EAR'' that are on the USMIL. 
Temporary imports of firearms described in this section must meet the 
entry clearance requirements specified in paragraph (b) of this 
section.
    (2) Permanent imports are regulated by the Attorney General under 
the direction of the Department of Justice's Bureau of Alcohol, 
Tobacco, Firearms and Explosives (see 28 CFR 0.130; 27 CFR parts 447, 
478, 479, and 555).
    (b) * * *
    (1) * * *

    Note 1 to paragraph (b)(1): In accordance with the exclusions in 
License Exception

[[Page 34710]]

TMP under Sec.  740.9(b)(5) of the EAR, the entry clearance 
requirements in Sec.  758.1(b)(9) do not permit the temporary import 
of: Firearms controlled in ECCN 0A501.a or .b, 0A506 or 0A507 that 
are shipped from or manufactured in a Country Group D:5 country; or 
that are shipped from or manufactured in Russia, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan (except for any firearm model controlled by 0A501.a or 
.b, 0A506, or 0A507 that is specified under annex A in supplement 
no. 4 to part 740 of the EAR); or shotguns with a barrel length less 
than 18 inches controlled in ECCNs 0A502 or 0A508 that are shipped 
from or manufactured in a Country Group D:5 country, or from Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, because of the exclusions in License Exception TMP under 
Sec.  740.9(b)(5).


    Note 2 to paragraph (b)(1): In accordance with the exclusions in 
License Exception RPL under Sec.  740.10(b)(4) and supplement no. 2 
to part 748, paragraph (z), of the EAR, the entry clearance 
requirements in Sec.  758.1(b)(9) do not permit the temporary import 
of: Firearms controlled in ECCN 0A501.a or .b, 0A506, or 0A507 that 
are shipped from or manufactured in Russia, Georgia, Kazakhstan, 
Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan (except 
for any firearm model controlled by 0A501.a or .b, 0A506, or 0A507 
that is specified under Annex A in Supplement No. 4 to part 740 of 
the EAR); or shotguns with a barrel length less than 18 inches 
controlled in ECCNs 0A502 or 0A508 that are shipped from or 
manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
Turkmenistan, Ukraine, or Uzbekistan, because of the exclusions in 
License Exception RPL under Sec.  740.10(b)(4) and supplement no. 2 
to part 748, paragraph (z), of the EAR.

* * * * *

0
33. Section 758.11 is amended by revising paragraphs (a) and (b)(2) to 
read as follows:


Sec.  758.11  Export clearance requirements for firearms and related 
items.

    (a) Scope. The export clearance requirements of this section apply 
to all exports of commodities controlled under ECCNs 0A501.a or .b, 
0A506, or 0A507, or shotguns with a barrel length less than 18 inches 
controlled under ECCNs 0A502 or 0A508, or ammunition controlled under 
ECCN 0A505 except for .c, regardless of value or destination, including 
exports to Australia, Canada, and the United Kingdom, that are 
authorized under License Exception BAG, as set forth in Sec.  740.14 of 
the EAR.
    (b) * * *
    (2) Required ``description of articles'' for firearms to be 
included on the CBP Form 4457. For all exports of firearms controlled 
under ECCNs 0A501.a or .b, 0A506, or 0A507, or shotguns with a barrel 
length less than 18 inches controlled under ECCNs 0A502 or 0A508, the 
exporter must provide to CBP the serial number, make, model, and 
caliber for each firearm being exported by entering this information 
under the ``Description of Articles'' field of the CBP Form 4457, 
Certificate of Registration for Personal Effects Taken Abroad.
* * * * *

PART 762--RECORDKEEPING

0
34. The authority citation for 15 CFR part 762 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.


0
35. Section 762.2 is amended by revising paragraph (a)(11) to read as 
follows:


Sec.  762.2  Records to be retained.

    (a) * * *
    (11) The serial number, make, model, and caliber for any firearm 
controlled in ECCNs 0A501.a, 0A506, or 0A507 and for shotguns with 
barrel length less than 18 inches controlled in 0A502 and 0A508 that 
have been exported. The ``exporter'' or any other party to the 
transaction (see Sec.  758.3 of the EAR), that creates or receives such 
records is a person responsible for retaining this record; and
* * * * *

0
36. Section 762.3 is amended by revising paragraph (a)(5) to read as 
follows:


Sec.  762.3  Records exempt from recordkeeping requirements.

    (a) * * *
    (5) Warranty certificate, except for a warranty certificate issued 
for an address located outside the United States for any firearm 
controlled in ECCNs 0A501.a or .b, 0A506 or 0A507 and for shotguns with 
barrel length less than 18 inches controlled in 0A502 or 0A508;
* * * * *

PART 772--DEFINITIONS OF TERMS

0
37. The authority citation for 15 CFR part 772 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.


0
38. Section 772.1 is amended by adding a definition in alphabetical 
order for ``CARICOM,'' to read as follows:


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

* * * * *
    CARICOM (Caribbean Community). For purposes of Sec. Sec.  740.3 and 
740.14 of the EAR, the term CARICOM is defined as follows: An 
intergovernmental organization that consists of the following (1) 
member states Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, 
Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Lucia, Suriname, St. 
Kitts and Nevis, St. Vincent and the Grenadines, and Trinidad and 
Tobago; (2) associate members Anguilla, Bermuda, British Virgin 
Islands, Cayman Islands, and Turks and Caicos; and (3) any other state 
or associate member that has acceded to membership in accordance with 
Article 3 or Article 231 of the Treaty of Chaguaramas.

    Note to definition of CARICOM: Anguilla, Bermuda, British Virgin 
Islands, Cayman Islands, Montserrat, and Turks and Caicos are 
treated as the United Kingdom under all other EAR provisions that 
govern licensing requirements and license exceptions.

* * * * *

PART 774--THE COMMERCE CONTROL LIST

0
39. The authority citation for 15 CFR 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.


0
40. Supplement no. 1 to part 774 is amended by:
0
a. In Category 0:
0
i. Revising ECCNs 0A501, 0A502, 0A504, and 0A505;
0
ii. Adding ECCNs 0A506, 0A507, 0A508, and 0A509; and
0
iii. Revising ECCNs 0B501, 0D501, 0E501, 0E502, 0E504 and 0E505; and
0
b. In Category 2, by revising ECCN 2B018.
    The revisions and additions read as follows:

Supplement No. 1 to Part 774

Category 0--Nuclear Materials, Facilities, and Equipment [and 
Miscellaneous Items]

A. ``End Items,'' ``Equipment,'' ``Accessories,'' ``Attachments,'' 
``Parts,'' ``Components,'' and ``Systems''

* * * * *
0A501 Firearms (except 0A502 shotguns, 0A506 semi-automatic rifles, 
0A507 semi-automatic pistols, and 0A508 semi-automatic shotguns) and 
related commodities (except semi-automatic related commodities 
enumerated or otherwise described in ECCN 0A509 for

[[Page 34711]]

ECCNs 0A506, 0A507, or 0A508) as follows (see List of Items 
controlled).

License Requirements

Reason for Control: NS, RS, FC, CC, 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
CC applies to entire entry except 0A501.y.  CC Column 2
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) See USML Category I for firearms that are 
fully automatic, and certain related parts, components, accessories, 
and attachments (including magazines with a capacity of greater than 
50 rounds). (2) See ECCN 0A506 for semi-automatic rifles. (3) See 
ECCN 0A507 for semi-automatic pistols. (4) See ECCN 0A508 for semi-
automatic shotguns and ECCN 0A502 for certain ``parts'' and 
``components'' for semi-automatic shotguns that are not controlled 
by 0A509.a or .c. (5) See ECCN 0A509 for enumerated or otherwise 
described ``parts,'' ``components,'' devices, ``accessories,'' and 
``attachments'' for ECCNs 0A506, 0A507, and 0A508. (6) See .d, .x, 
and .y of this entry for other ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' ``specially designed'' for 
0A506 and 0A507, or 0A508. (7) See ECCN 0A502 for non-automatic 
shotguns and their ``parts'' and ``components'' that are subject to 
the EAR and for certain ``parts'' and ``components'' for semi-
automatic shotguns that are not controlled by 0A509.a or .c. (8) See 
ECCN 0A504 and USML Category XII for controls on optical sighting 
devices.
Related Definitions: N/A
Items:
    a. Non-automatic and non-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).


    Note 2 to paragraph 0A501.a: Semi-automatic firearms equal to 
.50 caliber (12.7 mm) or less are controlled under ECCNs 0A506 and 
0A507.


    Technical Note to 0A501.a: Firearms described in 0A501.a include 
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 ECCNs 0A506 or 0A507, or USML Category I (unless 
otherwise enumerated or elsewhere specified on the USML or 
controlled under ECCN 0A509): 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 or controlled by ECCNs 0A506 or 0A507.

    Note 3 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 4 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 
Explosives (see 18 U.S.C. 921(a)(3); 27 CFR parts 447, 478, and 
479,) as a firearm.


    Note 5 to 0A501.e:  Frames (receivers) ``specially designed'' 
for semi-automatic firearms are controlled under ECCN 0A509.b or .c.

    f. through w. [Reserved]
    x. ``Parts'' and ``components'' that are ``specially designed'' 
for a commodity classified under paragraphs .a through .c of this 
entry, a commodity classified under ECCNs 0A506 or 0A507, or the 
USML and not elsewhere specified on the USML or CCL or controlled 
under ECCN 0A509.
    y. Specific ``parts,'' ``components,'' ``accessories'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN, ECCNs 0A506, 0A507, 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: ECCN 0A501 includes ``parts'' and 
``components'' that are not ``subject to the ITAR'' even though they 
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 6 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 7 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 described on the USML nor 
controlled as shotguns under ECCN 0A502 are EAR99 commodities.


    Note 8 to 0A501: Scope mounts or accessory rails, iron sights, 
sling swivels, and butt plates or recoil pads that are subject to 
the EAR are designated as EAR99. These commodities have been 
determined to no longer warrant being ``specially designed'' for 
purposes of ECCN 0A501.


    Note 9 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 0A501 firearm 
disassembled in a kit form is controlled as a firearm under 0A501.a, 
.b, or .y.7.

0A502 Shotguns; shotguns ``parts'' and ``components,'' consisting of 
complete trigger mechanisms; magazines and magazine extension tubes; 
``complete breech mechanisms;'' except: semi-

[[Page 34712]]

automatic shotguns controlled under ECCN 0A508; certain ``parts,'' 
components,'' devices, ``accessories,'' and ``attachments'' for 
semi-automatic shotguns controlled under ECCN 0A509; equipment used 
to slaughter domestic animals or used exclusively to treat or 
tranquilize animals; and arms designed solely for signal, flare, or 
saluting use.

License Requirements

Reason for Control: RS, FC, CC, UN, AT, NS

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to shotguns with a barrel        NS Column 1
 length less than 18 inches (45.72 cm).
RS applies to shotguns with a barrel        RS Column 1
 length less than 18 inches (45.72 cm).
FC applies to entire entry................  FC Column 1
CC applies to entire entry................  CC Column 2
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
AT applies to shotguns with a barrel        AT Column 1
 length less than 18 inches (45.72 cm).
 

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

LVS: $500 for 0A502 shotgun ``parts'' and ``components,'' consisting 
of complete trigger mechanisms; magazines and magazine extension 
tubes. $500 for 0A502 shotgun ``parts'' and ``components,'' 
consisting of complete trigger mechanisms; magazines and magazine 
extension tubes, ``complete breech mechanisms'' if the ultimate 
destination is Canada.
GBS: N/A

List of Items Controlled

Related Controls: (1) See USML Category I for shotguns that are 
fully automatic. (2) See ECCN 0A508 for semi-automatic shotguns. (3) 
See ECCN 0A509 for enumerated or otherwise described ``parts,'' 
``components,'' devices, ``accessories,'' and ``attachments'' for 
ECCN 0A508. (4) See 0A501.d, .x, and .y for other ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' for 0A508. (5) See ECCNs 0A501 for non-semi-automatic 
firearms, 0A506 for semi-automatic rifles, and 0A507 for semi-
automatic pistols.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Note 1 to 0A502: Shotguns made in or before 1898 are considered 
antique shotguns and designated as EAR99.


    Technical Note: Non-automatic and non-semi-automatic shot 
pistols or shotguns that have had the shoulder stock removed and a 
pistol grip attached are controlled by ECCN 0A502. Non-automatic and 
non-semi-automatic slug guns are also controlled under ECCN 0A502.

* * * * *
0A504 Optical sighting devices for firearms (including shotguns 
controlled by 0A502); and ``components'' as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: FC, RS, CC, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
RS applies to paragraph .i................  RS Column 1
FC applies to paragraphs .a, .b, .c, .d,    FC Column 1
 .e, .g, and .i of this entry.
CC applies to entire entry................  CC Column 2
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
 

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

LVS: $500 for 0A504.g.
GBS: N/A

List of Items Controlled

Related Controls: (1) See USML Category XII(c) for sighting devices 
using second generation image intensifier tubes having luminous 
sensitivity greater than 350 [mu]A/lm, or third generation or higher 
image intensifier tubes, that are ``subject to the ITAR.'' (2) See 
USML Category XII(b) for laser aiming or laser illumination systems 
``subject to the ITAR.'' (3) Section 744.9 of the EAR imposes a 
license requirement on certain commodities described in 0A504 if 
being exported, reexported, or transferred (in-country) for use by a 
military end user or for incorporation into an item controlled by 
ECCN 0A919.
Related Definitions: N/A
Items:
    a. Telescopic sights.
    b. Holographic sights.
    c. Reflex or ``red dot'' sights.
    d. Reticle sights.
    e. Other sighting devices that contain optical elements.
    f. Laser aiming devices or laser illuminators ``specially 
designed'' for use on firearms, and having an operational wavelength 
exceeding 400 nm but not exceeding 710 nm.

    Note 1 to 0A504.f: 0A504.f does not control laser boresighting 
devices that must be placed in the bore or chamber to provide a 
reference for aligning the firearms sights.

    g. Lenses, other optical elements and adjustment mechanisms for 
articles in paragraphs .a, .b, .c, .d, .e, or .i.
    h. [Reserved]
    i. Riflescopes that were not ``subject to the EAR'' as of March 
8, 2020 and are ``specially designed'' for use in firearms that are 
``subject to the ITAR.''

    Note 2 to paragraph i: For purpose of the application of 
``specially designed'' for the riflescopes controlled under 0A504.i, 
paragraph (a)(1) of the definition of ``specially designed'' in 
Sec.  772.1 of the EAR is what is used to determine whether the 
riflescope is ``specially designed.''

0A505 Ammunition as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, FC, CC, 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
FC applies to entire entry except 0A505.d.  FC Column 1
CC applies to 0A505.a, .b, and .x.........  CC Column 2
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) See USML Category III for 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

[[Page 34713]]

an explosive projectile. (2) Percussion caps, and lead balls and 
bullets, for use with muzzle-loading firearms are EAR99 items. (3) 
See USML Category III for shotgun projectiles that are flechettes, 
incendiary, tracer, or explosive.
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 ECCNs 0A501, 0A506, or 
0A507 or USML Category I and not enumerated in paragraph .b, .c, or 
.d of this entry or described in USML Category III.
    b. Buckshot (No. 4 .24'' diameter and larger, any material) 
shotgun shells and shotgun shells that contain only buckshot, 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, 
0A502, 0A506, 0A507, or 0A508 and not described 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: 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 3 to 0A505: Shotgun shells that contain two or more balls/
shot larger than .24-inch are controlled under 0A505.b.

0A506 Semi-Automatic Rifles as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, FC, CC, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to  part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
FC applies to entire entry................  FC Column 1
CC applies to entire entry................  CC Column 2
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: N/A
GBS: N/A

Special Conditions for STA

STA: License Exception STA may not be used for 0A506.

List of Items Controlled

Related Controls: (1) See USML Category I for firearms that are 
fully automatic, and magazines with a capacity of greater than 50 
rounds. (2) See ECCN 0A507 for semi-automatic pistols, excluding 
pistols built with, e.g., AR- or AK-style receivers (frames), which 
are controlled under ECCN 0A506. (3) See ECCN 0A508 for semi-
automatic shotguns and ECCN 0A502 for certain ``parts'' and 
``components'' for semi-automatic shotguns that are not controlled 
by 0A509.a or .c. (4) See ECCN 0A509 for enumerated or otherwise 
described ``parts,'' ``components,'' devices, ``accessories,'' and 
``attachments'' for ECCNs 0A506, 0A507, and 0A508. (5) See 0A501.c, 
.d, .x, and .y for other ``parts,'' ``components,'' ``accessories,'' 
and ``attachments'' ``specially designed'' for 0A506 and 0A507, or 
0A508. (6) See ECCN 0A501 for non-semi-automatic firearms (except 
0A502 shotguns) and related commodities that are subject to the EAR. 
(7) See ECCN 0A502 for non-automatic shotguns and their ``parts'' 
and ``components'' that are subject to the EAR and certain ``parts'' 
and ``components'' for semi-automatic shotguns that are not 
controlled by 0A509.a or .c. (8) See ECCN 0A504 and USML Category 
XII for controls on optical sighting devices.
Related Definitions: N/A
Items:
    a. Semi-automatic centerfire (non-rimfire) rifles equal to .50 
caliber (12.7 mm) or less that has any one of the following:
    a.1. ability to accept a detachable large capacity magazine 
(more than 10 rounds); or may be easily modified to do so;
    a.2. folding or telescoping stock;
    a.3. separate pistol grips;
    a.4. ability to accept a bayonet;
    a.5. a flash suppressor; or
    a.6. bipods.
    b. Semi-automatic rifles equal to .50 caliber (12.7 mm) or less, 
including all non-centerfire (rimfire), n.e.s.

    Note 1 to 0A506.a and .b: ``Parts'' and ``components'' that are 
``specially designed'' for a commodity classified under .a or .b of 
this entry, except those controlled under ECCN 0A509, are controlled 
under ECCN 0A501.c, .d, .x, or .y.


    Technical Note 1 to 0A506: Firearms described in 0A506 include 
those chambered for the .50 BMG cartridge.


    Technical Note 2 to 0A506: Firearms described in 0A506 include 
pistols built with, e.g., AR- or AK-style receivers (frames).

0A507 Semi-Automatic Pistols as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, FC, CC, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to  part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
FC applies to entire entry................  FC Column 1
CC applies to entire entry................  CC Column 2
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: N/A
GBS: N/A

Special Conditions for STA

STA: License Exception STA may not be used for 0A507.

List of Items Controlled

Related Controls: (1) See USML Category I for firearms that are 
fully automatic, and magazines with a capacity of greater than 50 
rounds. (2) See ECCN 0A506 for semi-automatic rifles. (3) See ECCN 
0A508 for semi-automatic shotguns and ECCN 0A502 for certain 
``parts'' and ``components'' for semi-automatic shotguns that are 
not controlled by 0A509.a or .c. (4) See ECCN 0A509 for enumerated 
or otherwise described ``parts,'' ``components,'' devices, 
``accessories,'' and ``attachments'' for ECCNs 0A506, 0A507, and 
0A508. (5) See ECCN 0A501.c, .d, .x, and .y for other ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' for 0A506 and 0A507, or 0A508. (6) See ECCN 0A501 for 
non-semi-automatic firearms (except 0A502 shotguns) and related 
commodities that are subject to the EAR. (7) See ECCN 0A502 for non-
automatic shotguns and their ``parts'' and ``components'' that are 
subject to the EAR and certain ``parts'' and ``components'' for 
semi-automatic shotguns that are not controlled by 0A509.a or .c. 
(8) See ECCN 0A504 and USML Category XII for controls on optical 
sighting devices.
Related Definitions: N/A
Items:
    a. Semi-automatic centerfire (non-rimfire) pistols equal to .50 
caliber (12.7 mm) or less.
    b. Semi-automatic rimfire pistols equal to .50 caliber (12.7 mm) 
or less.

    Note 1 to 0A507.a and .b: ``Parts'' and ``components'' that are 
``specially designed''

[[Page 34714]]

for a commodity classified under .a or .b of this entry, except 
those controlled under ECCN 0A509, are controlled under ECCN 
0A501.c, .d, .x, or .y.


    Technical Note to 0A507: Firearms described in 0A507 includes 
those chambered for the .50 BMG cartridge, including revolvers, or 
that may be developed to fire .50 BMG cartridges.

0A508 Semi-Automatic Shotguns as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, FC, CC, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to semi-automatic shotguns with  NS Column 1
 a barrel length less than 18 inches
 (45.72 cm).
RS applies to semi-automatic shotguns with  RS Column 1
 a barrel length less than 18 inches
 (45.72 cm).
FC applies to entire entry................  FC Column 1
CC applies to entire entry................  CC Column 2
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to semi-automatic shotguns with  AT Column 1
 a barrel length less than 18 inches
 (45.72 cm).
 

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

LVS: N/A
GBS: N/A

Special Conditions for STA

STA: License Exception STA may not be used for 0A508.

List of Items Controlled

Related Controls: (1) See USML Category I for shotguns that are 
fully automatic. (2) See ECCN 0A502 for non-semi-automatic shotguns. 
(3) See ECCN 0A509 for enumerated or otherwise described ``parts,'' 
``components,'' devices, ``accessories,'' and ``attachments'' for 
ECCN 0A508. (4) See 0A501.d, .x, and .y for other ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' for 0A508. (5) See ECCNs 0A501 for non-semi-automatic 
firearms, 0A506 for semi-automatic rifles, and 0A507 for semi-
automatic pistols.
Related Definitions: N/A
Items:
    a. Semi-automatic centerfire (non-rimfire) shotguns with any one 
of the following:
    a.1. folding, telescoping, or collapsible stock;
    a.2. a flash suppressor;
    a.3. a magazine over five rounds;
    a.4. a drum magazine;
    a.5. Excessive Weight (greater than 10 lbs for 12 gauge or 
smaller); or
    a.6. Excessive Bulk (greater than 3 inches in width and/or 
greater than 4 inches in depth).
    b. Semi-automatic shotguns, including all non-centerfire 
(rimfire), n.e.s.
0A509 Certain ``parts,'' ``components,'' devices, ``accessories,'' 
and ``attachments'' for items controlled under ECCNs 0A506, 0A507, 
and 0A508 as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, FC, CC, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
FC applies to entire entry................  FC Column 1
CC applies to entire entry................  CC Column 2
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: N/A
GBS: N/A

Special Conditions for STA

STA: License Exception STA may not be used for 0A509.

List of Items Controlled

Related Controls: (1) See USML Category I for firearms that are 
fully automatic, and magazines with a capacity of greater than 50 
rounds. (2) See ECCN 0A506 for semi-automatic rifles. (3) See ECCN 
0A507 for semi-automatic pistols. (4) See ECCN 0A508 for semi-
automatic shotguns and ECCN 0A502 for certain ``parts'' and 
``components'' for semi-automatic shotguns that are not controlled 
by .a or .c of this entry. (5) See ECCN 0A501.c, .d, .x, and .y for 
other ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for 0A506 and 0A507, or 
0A508. (6) See ECCN 0A501 for non-semi-automatic firearms (except 
0A502 shotguns) and related commodities that are subject to the EAR. 
(7) See ECCN 0A502 for non-automatic shotguns and their ``parts'' 
and ``components'' that are subject to the EAR and certain ``parts'' 
and ``components'' for semi-automatic shotguns that are not 
controlled by .a or .c of this entry. (8) See ECCN 0A504 and USML 
Category XII for controls on optical sighting devices. (9) See USML 
Category I for similar items.
Related Definitions: N/A
Items:
    a. Any ``part,'' ``component,'' device, ``attachment,'' or 
``accessory'' not elsewhere specified on the USML that is designed 
or functions to convert a non-semi-automatic firearm controlled by 
0A501 or 0A502 to semi-automatic or to accelerate the rate of fire 
of a semi-automatic firearm controlled by 0A506, 0A507, or 0A508.
    b. Receivers (frames), including castings, forgings, stampings, 
or machined items thereof, ``specially designed'' for an item 
controlled by ECCN 0A506.
    c. Receivers (frames), including castings, forgings, stampings, 
or machined items thereof, ``specially designed'' for an item 
controlled by ECCN 0A507.
    d. Receivers (frames) and ``specially designed'' ``complete 
breech mechanisms'' for a commodity controlled by ECCN 0A508.

    Note 1 to 0A509.b and .c: Receivers (frames) under 0A509.b and 
.c refers to any ``part'' or ``component'' of the firearm that has 
or is customarily marked with a serial number when required by law. 
Paragraph 0A509.b and .c are synonymous with a ``part'' or 
``component'' that is regulated by the Bureau of Alcohol, Tobacco, 
Firearms and Explosives (see 18 U.S.C. 921(a)(3); 27 CFR parts 447, 
478, and 479,) as a firearm.

* * * * *

B. ``Test'', ``Inspection'' and ``Production Equipment''

* * * * *
0B501 Test, inspection, and production ``equipment'' and related 
commodities for the ``development'' or ``production'' of commodities 
enumerated or otherwise described in ECCNs 0A501, 0A506, 0A507, or 
0A509 or USML Category I as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                            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.

[[Page 34715]]

    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., 0A506, 0A507, 0A509, or USML 
Category I.
* * * * *

D. ``Software''

* * * * *
0D501 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by 0A501, 0A506, 0A507, 0A509 or 0B501.

License Requirements

Reason for Control: NS, RS, CC, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except           NS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.
RS applies to entire entry except           RS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.
CC applies to entire entry except           CC Column 2
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in 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)

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 ``software'' in 0D501.

List of Items Controlled

Related Controls: See USML Category I for ``software'' directly 
related to articles described in USML Category I.
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.
* * * * *
0D505 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by 0A505 or 0B505.

License Requirements

Reason for Control: NS, RS, CC, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to ``software'' for commodities  NS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a .and .x.
RS applies to ``software'' for commodities  RS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a and .x.
CC applies to ``software'' for commodities  CC Column 2
 in ECCN 0A505.a, .b, and .x and equipment
 in ECCN 0B505.a and .x.
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to ``software'' for commodities  AT Column 1
 in ECCN 0A505.a, .d, or .x and equipment
 in ECCN 0B505.a, .d, or .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 ``software'' in 0D505.

List of Items Controlled

Related Controls: See USML Category III for ``software'' directly 
related to articles described in USML Category III.
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.
* * * * *

E. ``Technology''

* * * * *
0E501 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, or 
overhaul of commodities controlled by 0A501, 0A506, 0A507, 0A509, or 
0B501 as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, CC, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
CC applies to entire entry................  CC Column 2
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)

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 ECCN 0E501.

List of Items Controlled

Related Controls: See USML Category I for technical data directly 
related to articles described in USML Category I.
Related Definitions: N/A
Items:
    a. ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by ECCN 0A501 (other than 
0A501.y), 0A506, 0A507, 0A509, or 0B501.
    b. ``Technology'' ``required'' for the operation, installation, 
maintenance, repair, or overhaul of commodities controlled by ECCN 
0A501 (other than 0A501.y), 0A506, 0A507, 0A509, or 0B501.

0E502 ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by 0A502, 0A508, or 0A509.

License Requirements

Reason for Control: CC, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
CC applies to entire entry................  CC Column 2
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
 

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

TSR: N/A

List of Items Controlled

Related Controls: See USML Category I for technical data directly 
related to articles described in USML Category I.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
0E504 ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by 0A504 that incorporate a 
focal plane array or image intensifier tube.

[[Page 34716]]

License Requirements

Reason for Control: RS, CC, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
RS applies to entire entry................  RS Column 1
CC applies to entire entry................  CC Column 2
UN applies to entire entry................  See Sec.   746.1(b) 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)

TSR: 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.
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 2
 ``development'' or ``production'' of
 commodities in 0A505.a, .b, and .x.
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: See USML Category III for technical data directly 
related to articles described in USML Category III.
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.
* * * * *

Category 2--Materials Processing

* * * * *

B. ``Test'', ``Inspection'' and ``Production Equipment''

* * * * *
2B018 Equipment on the Wassenaar Arrangement Munitions List.

    No commodities currently are controlled by this entry. 
Commodities formerly controlled by paragraphs .a through .d, .m, and 
.s of this entry are controlled in ECCN 0B606. Commodities formerly 
controlled by paragraphs .e through .l of this entry are controlled 
by ECCN 0B602. Commodities formerly controlled by paragraphs .o 
through .r of this entry are controlled by ECCN 0B501. Commodities 
formerly controlled by paragraph .n of this entry are controlled in 
ECCN 0B501 if they are ``specially designed'' for the ``production'' 
of the items controlled in ECCNs 0A501.a through .x, 0A506, 0A507, 
or 0A509 or USML Category I and controlled in ECCN 0B602 if they are 
of the kind exclusively designed for use in the manufacture of items 
in ECCN 0A602 or USML Category II.
* * * * *

Thea D. Rozman Kendler
Assistant Secretary for Export Administration.
[FR Doc. 2024-08813 Filed 4-26-24; 11:15 am]
BILLING CODE 3510-33-P