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Federal Register Vol No Monday November

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									                                                                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                                   68675

                                                  contact the FAA’s Office of Rulemaking,                 Title 49 of the United States Code.                     Anchorage, AK 291°(T)/272°(M) radials;
                                                  (202) 267–9677, for a copy of Advisory                  Subtitle I, Section 106 describes the                   Anchorage; INT Anchorage 147°(T)/128°(M)
                                                  Circular No. 11–2A, Notice of Proposed                  authority of the FAA Administrator.                     and Johnstone Point, AK, 271°(T)/244°(M)
                                                  Rulemaking Distribution System, which                   Subtitle VII, Aviation Programs,                        radials; to Johnstone Point.
                                                  describes the application procedure.                    describes in more detail the scope of the               *        *   *     *      *
                                                  History                                                 agency’s authority.                                     V–440 [Amended]
                                                                                                             This rulemaking is promulgated
                                                     Docket No. FAA–2011–0010, Airspace                                                                           From Nome, AK; Unalakleet, AK; McGrath,
                                                                                                          under the authority described in                        AK; Anchorage, AK; INT Anchorage 147°(T)/
                                                  Docket No. 11–AAL–1 published on                        Subtitle VII, Part A, Subpart I, Section                128°(M) and Middleton Island, AK 309°(T)/
                                                  April 28, 2011 (76 FR 23687), that                      40103. Under that section, the FAA is                   288°(M) radials; Middleton Island; Yakutat,
                                                  amends all Alaska Federal Airways                       charged with prescribing regulations to                 AK; Biorka Island, AK; to Sandspit, BC. The
                                                  affected by the relocation of the                       assign the use of the airspace necessary                airspace within Canada is excluded.
                                                  Anchorage VOR navigation aid,                           to ensure the safety of aircraft and the                  Issued in Washington, DC, on October 24,
                                                  subsequently had the effective date                     efficient use of airspace. This regulation              2011.
                                                  delayed until further notice (76 FR                     is within the scope of that authority as                Gary A. Norek,
                                                  35097; June 16, 2011). The FAA then                     it amends Federal airways in Alaska.
                                                  determined that V–320 and V–440 did                                                                             Acting Manager, Airspace, Regulation and
                                                                                                             Alaskan VOR Federal Airways are                      ATC Procedure Group.
                                                  not have satisfactory signal reception                  published in paragraph 6010(b) of FAA
                                                  coverage in the vicinity of Anchorage,                                                                          [FR Doc. 2011–28614 Filed 11–4–11; 8:45 am]
                                                                                                          Order 7400.9V, dated August 9, 2011,
                                                  AK, and removed them from the rule, to                  and effective September 15, 2011, which                 BILLING CODE 4910–13–P

                                                  be amended in a future rulemaking (76                   is incorporated by reference in 14 CFR
                                                  FR 65106; October 20, 2011). This                       71.1. The domestic VOR Federal
                                                  action would amend the above airways                    Airways listed in this document will be                 DEPARTMENT OF COMMERCE
                                                  as the signal reception of the relocated                published subsequently in the Order.
                                                  navigation aid is satisfactory to meet                                                                          Bureau of Industry and Security
                                                  Minimum Enroute Altitude (MEA)                          Environmental Review
                                                  requirements.                                              This proposal will be subject to an                  15 CFR Parts 738, 740, 742, 770, 772
                                                                                                          environmental analysis in accordance                    and 774
                                                  The Proposal
                                                                                                          with FAA Order 1050.1E,                                 [Docket No. 110824536–1499–01]
                                                     The FAA is proposing an amendment                    ‘‘Environmental Impacts: Policies and
                                                  to Title 14 Code of Federal Regulations                                                                         RIN 0694–AF36
                                                                                                          Procedures,’’ prior to any FAA final
                                                  (14 CFR) part 71 to amend Alaska                        regulatory action.
                                                  Federal airways V–320 and V–440. The                                                                            Revisions to the Export Administration
                                                  airway descriptions would reflect the                   List of Subjects in 14 CFR Part 71                      Regulations (EAR): Control of Aircraft
                                                  Anchorage VOR relocation from Fire                                                                              and Related Items the President
                                                                                                            Airspace, Incorporation by reference,
                                                  Island, AK, to Ted Stevens Anchorage                                                                            Determines No Longer Warrant Control
                                                                                                          Navigation (air).
                                                  International Airport, Anchorage, AK.                                                                           Under the United States Munitions List
                                                  Additionally, the proposed descriptions                 The Proposed Amendment                                  (USML)
                                                  incorporate new navigation aid radials                    In consideration of the foregoing, the                AGENCY:  Bureau of Industry and
                                                  to describe airway intersections                        Federal Aviation Administration                         Security, Department of Commerce.
                                                  necessary to retain a 10,000 feet MEA                   proposes to amend 14 CFR part 71 as                     ACTION: Proposed rule.
                                                  currently used by air traffic control for               follows:
                                                  instrument flight rules aircraft in the                                                                         SUMMARY:    This proposed rule describes
                                                  vicinity of Anchorage, AK.                              PART 71—DESIGNATION OF CLASS A,                         how articles the President determines
                                                     The FAA has determined that this                     B, C, D, AND E AIRSPACE AREAS; AIR                      no longer warrant control under
                                                  proposed regulation only involves an                    TRAFFIC SERVICE ROUTES; AND                             Category VIII (aircraft and related items)
                                                  established body of technical                           REPORTING POINTS                                        of the United States Munitions List
                                                  regulations for which frequent and                        1. The authority citation for part 71                 (USML) would be controlled under the
                                                  routine amendments are necessary to                     continues to read as follows:                           Commerce Control List (CCL) in new
                                                  keep them operationally current.                                                                                Export Control Classification Numbers
                                                  Therefore, this proposed regulation: (1)                  Authority: 49 U.S.C. 106(g), 40103, 40113,            (ECCNs) 9A610, 9B610, 9C610, 9D610,
                                                                                                          40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
                                                  Is not a ‘‘significant regulatory action’’              1963 Comp., p. 389.
                                                                                                                                                                  and 9E610. In addition, this proposed
                                                  under Executive Order 12866; (2) is not                                                                         rule would control military aircraft and
                                                  a ‘‘significant rule’’ under Department of              § 71.1       [Amended]                                  related items now controlled under
                                                  Transportation (DOT) Regulatory                            2. The incorporation by reference in                 ECCNs 9A018, 9D018 and 9E018 under
                                                  Policies and Procedures (44 FR 11034;                   14 CFR 71.1 of FAA Order 7400.9V,                       new ECCNs 9A610, 9D610 and 9E610.
                                                  February 26, 1979); and (3) does not                    Airspace Designations and Reporting                     This proposed rule also addresses
                                                  warrant preparation of a regulatory                     Points, dated August 9, 2011, and                       license exception availability for items
                                                  evaluation as the anticipated impact is                 effective September 15, 2011, is                        controlled by the five new ECCNs that
                                                  so minimal. Since this is a routine                     amended as follows:                                     would be created.
                                                  matter that will only affect air traffic                                                                           This is the second in a planned series
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                                                  procedures and air navigation, it is                    Paragraph 6010—VOR Federal airways.                     of proposed rules describing how
                                                  certified that this proposed rule, when                 b—Alaskan VOR Federal airways
                                                                                                                                                                  various types of articles the President
                                                  promulgated, will not have a significant                                                                        determines, as part of the
                                                                                                          *        *      *      *       *                        Administration’s Export Control Reform
                                                  economic impact on a substantial
                                                  number of small entities under the                      V–320 [Amended]                                         Initiative, no longer warrant USML
                                                  criteria of the Regulatory Flexibility Act.             From McGrath, AK; INT McGrath 121°(T)/                  control, would be controlled on the CCL
                                                     The FAA’s authority to issue rules                   102°(M) and Kenai, AK 350°(T)/331°(M)                   and by the EAR. This proposed rule is
                                                  regarding aviation safety is found in                   radials; INT Kenai 350°(T)/331°(M) and                  being published in conjunction with a


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                                                  68676                 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                  proposed rule of the Department of                      second group of items—various military                2778(f)(1). This proposed rule describes
                                                  State, Directorate of Defense Trade                     aircraft and related articles that are                how certain military aircraft and related
                                                  Controls, which would amend the list of                 controlled by USML Category VIII—                     articles in USML Category VIII would be
                                                  articles controlled by USML Category                    would be controlled on the CCL. The                   controlled by the EAR and its CCL if the
                                                  VIII.                                                   proposed changes described in this                    President determines that the articles no
                                                     In addition, this proposed rule would                proposed rule and the State                           longer warrant control on the USML.
                                                  modify aspects of the Bureau of Industry                Department’s proposed amendment to                       In the July 15 proposed rule, BIS
                                                  Security’s (BIS) July 15, 2011 proposed                 Category VIII of the USML are based on                proposed creating a series of new
                                                  rule by adding cross references to                      a review of Category VIII by the Defense              ECCNs to control items that would be
                                                  ECCNs 9A018, 9D018 and 9E018; by                        Department, which worked with the                     moved from the USML to the CCL, or
                                                  adding provisions relating to License                   Departments of State and Commerce in                  that are items from the Wassenaar
                                                  Exception Strategic Trade Authorization                 preparing the proposed amendments.                    Arrangement on Export Controls for
                                                  (STA) eligibility to clarify that its scope             The review was focused on identifying                 Conventional Arms and Dual Use Goods
                                                  extends to the United States                            the types of articles that are now                    and Technologies Munitions List
                                                  Government, to any person in the                        controlled by USML Category VIII that                 (Wassenaar Arrangement Munitions List
                                                  United States, and to the                               are either (i) Inherently military and                or WAML) that are already controlled
                                                  ‘‘development’’ or ‘‘production’’ of                    otherwise warrant control on the USML                 elsewhere on the CCL. The proposed
                                                  items; and by including a general policy                or (ii) if it is a type common to civil               rule referred to this series as the ‘‘600
                                                  of denial for 600 series items for                      aircraft applications, possess parameters             series’’ because the third character in
                                                  destinations that are subject to a United               or characteristics that provide a critical            each of the new ECCNs would be a ‘‘6.’’
                                                  States arms embargo under the regional                  military or intelligence advantage to the             The first two characters of the 600 series
                                                  stability reasons for control.                          United States, and that are almost                    ECCNs serve the same function as any
                                                  DATES: Comments must be received by                     exclusively available from the United                 other ECCN as described in § 738.2 of
                                                  December 22, 2011.                                      States. If an article satisfied one or both           the EAR. The first character is a digit in
                                                  ADDRESSES: You may submit comments                      of those criteria, the article remained on            the range 0 through 9 that identifies the
                                                  by any of the following methods:                        the USML. If an article did not satisfy               Category on the CCL in which the ECCN
                                                     • Federal eRulemaking Portal: http://                either standard but was nonetheless a                 is located. The second character is a
                                                  www.regulations.gov. The identification                 type of article that is, as a result of               letter in the range A through E that
                                                  number for this rulemaking is BIS–                      differences in form and fit, ‘‘specially              identifies the product group within a
                                                  2011–0033.                                              designed’’ for military applications,                 CCL Category. In the 600 series, the
                                                     • By email directly to                               then it was identified in the new ECCNs               third character is the number 6. With
                                                  publiccomments@bis.doc.gov. Include                     proposed in this notice. The licensing                few exceptions, the final two characters
                                                  RIN 0694–AF36 in the subject line.                      policies and other EAR-specific controls              identify the WAML category that covers
                                                     • By mail or delivery to Regulatory                  for such items also described in this                 items that are the same or similar to
                                                  Policy Division, Bureau of Industry and                 notice would enhance national security                items in a particular 600 series ECCN.
                                                  Security, U.S. Department of Commerce,                  by (i) Allowing for greater                              BIS will publish additional Federal
                                                  Room 2099B, 14th Street and                             interoperability with our NATO and                    Register notices containing proposed
                                                  Pennsylvania Avenue NW., Washington,                    other allies while still maintaining and              amendments to the CCL that will
                                                  DC 20230. Refer to RIN 0694–AF36.                       expanding robust controls and, in some                describe proposed controls for
                                                  FOR FURTHER INFORMATION CONTACT:                        cases, prohibitions on exports or                     additional categories of articles the
                                                  Gene Christiansen, Office of National                   reexports to other countries and for                  President determines no longer warrant
                                                  Security and Information Technology                     proscribed end users and end uses; (ii)               control under the USML. The State
                                                  Controls, tel. (202) 482–2984, email                    enhancing our defense industrial base                 Department will publish concurrently
                                                  gene.christiansen@bis.doc.gov.                          by, for example, reducing the current                 proposed amendments to the USML that
                                                  SUPPLEMENTARY INFORMATION:
                                                                                                          incentives for foreign companies to                   correspond to the BIS notices. BIS will
                                                                                                          design out or avoid U.S.-origin ITAR-                 also publish proposed rules to further
                                                  Background                                              controlled content, particularly with                 align the CCL with the WAML and the
                                                     On July 15, 2011, as part of the                     respect to generic, unspecified parts and             Missile Technology Control Regime
                                                  Administration’s ongoing Export                         components; and (iii) permitting the                  Equipment, Software and Technology
                                                  Control Reform Initiative, BIS published                U.S. Government to focus its resources                Annex.
                                                  a proposed rule (76 FR 41958) (‘‘the July               on controlling, monitoring,
                                                                                                          investigating, analyzing, and, if need be,            Modifications to Provisions in the July
                                                  15 proposed rule’’) that set forth a                                                                          15 Proposed Rule
                                                  framework for how articles the                          prohibiting exports and reexports of
                                                  President determines, in accordance                     more significant items to destinations,                  In addition to the proposals
                                                  with section 38(f) of the Arms Export                   end uses, and end users of greater                    mentioned above, this proposed rule
                                                  Control Act (AECA) (22 U.S.C. 2778(f)),                 concern than our NATO allies and other                would make the following modifications
                                                  would no longer warrant control on the                  multi-regime partners.                                to the July 15 proposed rule.
                                                  United States Munitions List (USML)                        Pursuant to section 38(f) of the AECA,                • Additions to proposed paragraph
                                                  instead would be controlled on the                      the President shall review the USML ‘‘to              (a)(13) in § 740.2;
                                                  Commerce Control List (CCL). With that                  determine what items, if any, no longer                  • Changes to the proposed Note to
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                                                  proposed rule, BIS also described its                   warrant export controls under’’ the                   paragraph (c)(1) in § 740.20;
                                                  proposal for how military vehicles and                  AECA. The President must report the                      • Changes to ECCNs 9A018, 9D018
                                                  related articles in USML Category VII                   results of the review to Congress and                 and 9E018;
                                                  that no longer warrant control under the                wait 30 days before removing any such                    • Addition of new Category 9 600
                                                  USML would be controlled on the CCL.                    items from the USML. The report must                  series ECCNs to § 742.6(a)(1); and
                                                     Following the structure of the July 15               ‘‘describe the nature of any controls to                 • Changes in eligible users for 600
                                                  proposed rule, this proposed rule                       be imposed on that item under any                     Series under License Exception STA in
                                                  describes BIS’s proposal for how a                      other provision of law.’’ 22 U.S.C.                   § 740.2(a)(13).


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                                                                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                           68677

                                                     A complete discussion of these                       by, any of the foregoing agencies of a                they are clearly identifiable as
                                                  modifications is described in the section               government of a STA–36 country, the                   commodities controlled by paragraph .x)
                                                  ‘‘Scope of this Proposed Rule.’’ BIS will               United States Government, or any                      that are ‘‘specially designed’’ for a
                                                  consider comments on the original                       person in the United States. This                     commodity in paragraphs .a through .k
                                                  proposals only for the specific                         eligibility under License Exception STA               or a defense article in USML Category
                                                  paragraph, note, and ECCNs referenced                   is proposed because the U.S.                          VIII. Paragraph .y would consist of 25
                                                  above, and only in the context of the                   Government recognizes that there would                specific types of commodities that, if
                                                  proposed rule’s modifications to them.                  be a significant volume of desirable                  specially designed for a commodity
                                                                                                          trade between and among private                       subject to control in this 9A610 or a
                                                  Scope of This Proposed Rule
                                                                                                          companies in the STA–36 countries                     defense article in USML Category VIII,
                                                     This proposed rule would create five                 regarding ‘‘600 series’’ end items that               warrant less strict controls because they
                                                  new 600 series ECCNs in CCL Category                    would ultimately be for use by one of                 have little or no military significance.
                                                  9—9A610, 9B610, 9C610, 9D610, and                       the foregoing government agencies of an               Commodities listed in paragraph .y
                                                  9E610—that would control articles the                   STA–36 country, the United States                     would be controlled for antiterrorism
                                                  President determines no longer warrant                  Government, and manufacturers in the                  (AT Column 1) reasons, which imposes
                                                  control under USML Category VIII.                       United States. This proposal protects                 a license requirement for five countries
                                                  Consistent with the regulatory construct                U.S. export control interests while at the            and, in accordance with the July 15
                                                  identified in the July 15 proposed rule,                same time facilitating permissible                    proposed rule, if destined for a military
                                                  this rule also would move items                         exports, reexports, and transfers (in-                end use to the People’s Republic of
                                                  currently classified under ECCNs                        country) with the governments of the                  China, as described in § 744.21.
                                                  9A018, 9D018, and 9E018 to the new                      STA–36 countries and the United                          This proposed rule does not add
                                                  ECCNs. As part of the proposed                          States. BIS particularly welcomes                     aircraft gas turbine engines to the
                                                  changes, these three 018 ECCNs would                    comments on the types of government                   proposed new ECCN 9A610. Instead, the
                                                  cross-reference the new classifications                 agencies that would be eligible to                    Administration plans to issue a
                                                  in the 600 series. As noted in the July                 ultimately receive items through this                 proposed rule later that would describe
                                                  15 proposed rule, moving items from                     license exception. If, for example, there             the U.S. Government’s controls on gas
                                                  018 ECCNs to the appropriate 600 series                 are types of agencies or persons that                 turbine engines and related items for
                                                  ECCNs would consolidate WAML and                        have been omitted from this list but that             military aircraft, ships, and vehicles,
                                                  formerly USML items into one series of                  commenters believe should be included,
                                                  ECCNs.                                                                                                        which is currently anticipated to be new
                                                                                                          commenters should provide BIS with                    ECCN 9A619. Although this numbering
                                                     The rule would also create a new                     this information, including specific
                                                  Supplement No. 4 to part 740 that                                                                             deviates slightly from the WAML
                                                                                                          examples of such agencies or persons.                 numbering approach, BIS believes that
                                                  would prohibit the use of License                          The proposed changes are discussed
                                                  Exceptions STA or GOV to export or                                                                            it would be more efficient to list all 600
                                                                                                          in more detail below.
                                                  reexport, except to U.S. government                                                                           series controls for gas turbine engines
                                                  agencies or personnel, ECCN 9D610                       New Category 9 600 Series ECCNs                       and related items in one ECCN. The
                                                  software and ECCN 9E610 technology                         Certain military aircraft and related              anticipated new ECCN will correspond
                                                  (other than ‘‘build-to-print technology’’)              articles the President determines no                  to a new USML Category XIX that the
                                                  for the production of specific types of                 longer warrant control in USML                        State Department would propose
                                                  parts and components classified under                   Category VIII would be controlled under               creating to control USML-controlled gas
                                                  ECCN 9A610.x.                                           proposed new ECCNs 9A610, 9B610,                      turbine engines and related articles.
                                                     License Exception STA under                          9C610, 9D610, and 9E610. These new                    When BIS publishes the proposed rule
                                                  § 740.20(c)(1) generally would be                       ECCNs follow the 600 series construct                 to address gas turbine engines and
                                                  available for eligible end items (as                    identified in the July 15 proposed rule.              related items for military aircraft,
                                                  described in § 740.20(g) of the July 15                    Paragraphs .a through .k of ECCN                   missiles, ships, and vehicles, cross
                                                  proposed rule) and all other 600 series                 9A610 would consist of ‘‘end items,’’ as              references to the proposed new ECCN
                                                  items if, at the time of export, reexport               that term was defined in the July 15                  would be added to the new ECCNs
                                                  or transfer (in-country) the item is                    proposed rule, and some types of related              proposed by this rule.
                                                  destined (i) For ultimate end use by the                parts, components, accessories,                          ECCN 9B610.a would consist of test,
                                                  armed forces, police, paramilitary, law                 attachments, equipment, and systems.                  inspection, and production equipment
                                                  enforcement, customs, correctional, fire,               Paragraphs .b, .c, .d, and .e would be                specially designed for the development
                                                  and search and rescue agencies of a                     reserved to make paragraphs .f through                or production of aircraft and related
                                                  government in one of the § 740.20(c)(1)                 .i align with paragraphs on the WAML                  commodities and articles controlled by
                                                  countries (the ‘‘STA–36’’) or of the                    covering similar items. Paragraphs .l,                ECCN 9A610 or USML Category VIII.
                                                  United States Government; or (ii) for the               .m, and .n would control Unmanned                     ECCN 9B610.b would consist of
                                                  ‘‘production’’ or ‘‘development’’ of an                 Aerial Vehicle (UAV)-related items that               environmental test facilities designed or
                                                  item for ultimate end use by any of                     are not identified on the USML or the                 modified for military aircraft and related
                                                  those foreign government agencies in                    WAML, but which are identified on the                 commodities. These new ECCN
                                                  any of the thirty-six § 740.20(c)(1)                    Missile Technology Control Regime                     paragraphs would also implement
                                                  countries, by the United States                         (MTCR) Equipment, Software and                        WAML Category 18, which applies to
                                                  Government, or by any person in the                     Technology Annex and which are                        production equipment and components
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                                                  United States. This condition means                     proposed to be subject to the MT                      for items on the WAML generally, with
                                                  that exports and reexports to non-                      Column 1 reason for control. Paragraphs               respect to production equipment for
                                                  governmental end users in one of the                    .o through .w would be reserved for                   military aircraft, and environmental test
                                                  STA–36 countries under STA would be                     possible future use. Paragraph .x would               facilities for such aircraft and related
                                                  permissible so long as the item at issue                consist of parts, components,                         commodities. ECCN 9B610.c would
                                                  would ultimately be provided to, or for                 accessories and attachments (including                implement a Missile Technology
                                                  the production or development of an                     certain unfinished products that have                 Control Regime control on production
                                                  item to be provided to and for end use                  reached a stage in manufacturing where                facilities specially designed for certain


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                                                  68678                 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                  types of Unmanned Aerial Vehicles or                    consistent with the July 15 proposed                  License Exception Restrictions
                                                  drones.                                                 rule’s statement that 018 entries would                  Certain software and technology
                                                     ECCN 9C610 would consist of                          remain in the CCL for a time, but only                related to parts and components covered
                                                  materials specially designed for aircraft               for cross-reference purposes, this rule               by .x items paragraphs of 600 series
                                                  and related commodities controlled by                   would amend ECCNs 9A018, 9D018,                       ECCNs warrant more restrictive license
                                                  ECCN 9A610 that are not specified                       and 9E018 to be solely cross references               exception applicability than other
                                                  elsewhere on the CCL, such as in CCL                    to the new 600 series ECCNs that cover                software and technology currently on
                                                  Category 1, or on the USML. USML                        the items currently in those 018 ECCNs.               the CCL. This rule proposes creating a
                                                  subcategory XIII(f) would continue to                   ECCN 9A018 would refer to ECCN                        new Supplement No. 4 to Part 740 (600
                                                  control structural materials ‘‘specifically             9A610 for aircraft related commodities                Series Items Subject to Limits Regarding
                                                  designed, developed, configured,                        (i.e., for items currently classified under           License Exceptions GOV and STA) that
                                                  modified, or adapted for defense                        ECCN 9A018 paragraphs .a, .c, .d, .e,                 would identify 600 series items that
                                                  articles,’’ such as aircraft controlled by              and .f). Similarly, for all items other               may not be exported, reexported, or
                                                  USML subcategory VIII(a). The State                     than those applying to ground vehicles,               transferred (in-country) pursuant to
                                                  Department plans to publish a proposed                  ECCN 9D018 would refer to ECCN                        License Exceptions STA (§ 740.20 of the
                                                  revision to XIII(f) that would make it a                9D610 for software, and ECCN 9E018                    EAR) or GOV (§ 740.11 of the EAR). The
                                                  more positive list of the structural                    would refer to ECCN 9E610 for
                                                  materials that are controlled by USML                                                                         supplement would be structured to list
                                                                                                          technology.                                           by CCL category the items for which
                                                  XIII(f). When that occurs, BIS will                        This proposed rule would remove
                                                  publish a corresponding proposed                                                                              license exception applicability is
                                                                                                          § 770.2(i) ‘‘Interpretation 9 Civil aircraft          limited.
                                                  revision to ECCN 9C610 so that it                       and Civil aircraft equipment (including                  New Supplement No. 4 to part 740
                                                  controls such items specially designed                  parts, accessories, attachments,                      would list 15 types of parts and
                                                  for ECCN 9A610 items and USML                           components and related training                       components that would be classified
                                                  Category VIII items that are not                        equipment).’’ That section explains the
                                                  positively listed in any revised USML                                                                         under new ECCN 9A610.x and would
                                                                                                          licensing authorities of the Departments              state that License Exception STA
                                                  XIII(f).                                                of State and Commerce with respect to
                                                     ECCN 9D610 would consist of                                                                                (§ 740.20 of the EAR) may not be used
                                                                                                          aircraft and related items. It would no               to export, reexport, or transfer (in-
                                                  software specially designed for
                                                                                                          longer be needed given the text of                    country) any software classified under
                                                  commodities in 9A610, 9B610, or
                                                                                                          proposed ECCN 9A610.                                  ECCN 9D610 or technology classified
                                                  9C610. ECCN 9D610 would also contain
                                                  a ‘‘Note to License Exceptions Section’’                   In the July 15 proposed rule, BIS                  under ECCN 9E610—other than ‘‘build-
                                                  referring readers to the proposed                       proposed moving items classified under                to-print technology’’—for the
                                                  Supplement No. 4 to part 740, which                     ECCN 9A018.b (certain ground vehicles)                production or development of any types
                                                  would limit the use of License                          to newly proposed ECCN 0A606.b.4.                     of the listed ECCN 9A610.x parts and
                                                  Exceptions GOV and STA for ECCN                         With that rule, BIS identified a                      components. Further, the supplement
                                                  9D610 software for the production or                    corresponding proposed amendment to                   would state that License Exception
                                                  development of 15 types of parts and                    ECCN 9A018 that cross-referenced                      GOV, other than the paragraphs that
                                                  components.                                             ECCN 0A606.b.4 for former ECCN                        authorize shipments to U.S. government
                                                     ECCN 9E610 would consist of                          9A018.b items. This rule proposes to                  agencies for official use or U.S.
                                                  technology that is required commodities                 further amend ECCN 9A018,                             government personnel for personal use
                                                  in 9A610, 9B610, 9C610, or software                     maintaining the proposed reference to                 or official use (§ 740.11(b)(2)(i) and (ii)
                                                  9D610. ECCN 9E610 would also contain                    ECCN 0A606.b.4 for items currently                    of the EAR), is not available for the
                                                  a ‘‘Note to License Exceptions Section’’                classified under ECCN 9A018.b and                     export or reexport of software and
                                                  referring to proposed Supplement No. 4                  cross-referencing ECCN 9A610 for all                  technology (other than ‘‘build-to-print
                                                  to part 740, discussed below, which                     other items currently classified under                technology’’) for the production or
                                                  would limit the use of License                          ECCN 9A018 (i.e., items classified under              development of the ECCN 9A610.x parts
                                                  Exceptions GOV and STA for ECCN                         ECCN 9A018.a, .c, .d, .e and .f).                     and components listed in the
                                                  9E610 technology (other than ‘‘build-to-                   The July 15 proposed rule indicated                supplement.
                                                  print technology’’) for the production of               that software and technology applying                    A new note to § 740.20(c)(1) would be
                                                  15 types of ECCN 9A610.x parts and                      to ground vehicle-related commodities,                added, and § 740.2(a)(13) would be
                                                  components.                                             currently classified under ECCNs 9D018                clarified regarding the License
                                                     ECCNs 9A610, 9B610, 9C610, 9D610,                    and 9E018, would be classified under                  Exception STA eligibility of end items
                                                  and 9E610 would each have a special                     newly proposed ECCNs 0D606 and                        and all other 600 series items. In the
                                                  paragraph designated ‘‘.y.99’’ to cover                 0E606. However, the July 15 proposed                  July 15 proposed rule, the export of a
                                                  items that would otherwise fall within                  rule did not propose cross-referencing                600 series item is eligible for License
                                                  the scope of one of the ECCNs because,                  language to be included in ECCNs                      Exception STA if, at the time of export,
                                                  for example, they were ‘‘specially                      9D018 and 9E018. As noted above, BIS                  reexport or transfer (in-country), the
                                                  designed’’ for a military use, but which                is now proposing amendments to                        item is destined for ultimate end use by
                                                  (i) Had been previously determined by                   ECCNs 9D018 and 9E018 to cross-                       the armed forces, police, paramilitary,
                                                  the Department of State to be subject to                reference ECCNs 9D610 and 9E610, for                  law enforcement, customs and border
                                                  the EAR and (ii) were not listed on the                 software and technology applying to                   protection, correctional, fire, and search
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                                                  CCL. Items in these .y.99 paragraphs                    those classified under ECCN 9A018                     and rescue agencies of a government in
                                                  would be subject to antiterrorism                       paragraphs .a, .c, .d, .e and .f. In                  one of the STA–36 countries. This
                                                  controls.                                               conjunction with this proposal, BIS is                proposed rule would make 600 series
                                                     Items currently classified under ECCN                also proposing amendments to ECCNs                    items eligible for License Exception
                                                  9A018 paragraphs .a, .c, .d, .e and .f                  9D018 and 9E018 that reference ECCNs                  STA for such uses and also when
                                                  would be moved to ECCN 9A610. In                        0D606 and 0E606 for software and                      exported, reexported, or transferred for
                                                  conjunction with the establishment of                   technology applying to those items                    the production or development of an
                                                  the new ECCN 9X610 entries and                          classified under ECCN 9A018.b.                        item for ultimate end use by a STA–36


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                                                                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                           68679

                                                  country government agency, by the                       control under the EAR is appropriate.                 forth in § 742.6(b)(1) of this proposed
                                                  United States Government, or by a                       To facilitate that goal, the July 15                  rule.
                                                  person in the United States. In addition                proposed rule contained definitions and
                                                                                                                                                                Positive, Tiered, and Aligned Control
                                                  this proposed rule would replace the                    concepts that were meant to be applied
                                                                                                                                                                Lists
                                                  phrase ‘‘customs and border protection’’                across Categories. However, as BIS
                                                  with the phrase ‘‘customs’’ because BIS                 undertakes rulemakings to move                           In December 2010, the Departments of
                                                  believes that the latter more accurately                specific categories of items from the                 Commerce and State published
                                                  describes the practice of most                          USML to the CCL, there may be                         Advanced Notices of Proposed
                                                  governments. This clarification would                   unforeseen issues or complications that               Rulemaking that described the
                                                  make no change to the STA restrictions                  may require BIS to reexamine those                    Administration’s plan to make the
                                                  in § 740.20(b)(2), including the                        definitions and concepts. The comment                 USML and the CCL positive, tiered, and
                                                  restriction that prohibits use of STA for               period for the July 15 proposed rule                  aligned so that they eventually can be
                                                  missile technology (MT) controlled                      closed on September 13, 2011.                         combined into a single control list (See
                                                  items.                                                     To the extent that this rule’s proposals           ‘‘Commerce Control List: Revising
                                                                                                          affect any provision in July 15 proposed              Descriptions of Items and Foreign
                                                  Other Changes                                                                                                 Availability,’’ 75 FR 76664 (Dec. 9,
                                                                                                          rule or the July 15 proposed rule’s
                                                     A new definition for ‘‘build-to-print                provisions affect this proposed rule, BIS             2010) and ‘‘Revision to the United
                                                  technology’’ would be added to § 772.1.                 will consider comments on those                       States Munitions List,’’ 75 FR 76935
                                                  This definition is needed to add                        provisions so long as they are in the                 (Dec. 10, 2010)). This remains one of the
                                                  precision to that term as used in new                   context of the changes proposed in this               Administration’s ultimate Export
                                                  Supplement No. 4 to part 740.                           rule. For example, BIS will consider                  Control Reform objectives. In order to
                                                     This rule proposes amending License                  comments on how the movement of                       reach more quickly the national security
                                                  Exception GOV (§ 740.11) by adding                      Category VIII items from the USML to                  objectives described above, the
                                                  references to the new proposed                          the CCL affects a definition, restriction,            Administration has decided, as an
                                                  Supplement No. 4 to Part 740                            or provision that was contained in the                interim step, to propose revisions to
                                                  supplement’s prohibitions in paragraphs                 July 15 proposed rule. BIS will also                  both the USML and the CCL to make
                                                  (a)(5), (b)(2)(iii)(A), (b)(2)(iv)(A), and                                                                    them more objective, but to delay its
                                                                                                          consider comments on the impact of a
                                                  (c)(2)(iv), as well as in a note to (d)(1).                                                                   plan to tier the export control regime
                                                                                                          definition of a term in the July 15
                                                  Similarly, this rule proposes to amend                                                                        until a later date. The most significant
                                                                                                          proposed rule when that term is used in
                                                  License Exception STA (§ 740.20) by                                                                           aspect of the more positive proposed
                                                                                                          this proposed rule. BIS will not consider
                                                  adding a reference to the proposed                                                                            USML categories is that they would not
                                                                                                          comments of a general nature regarding
                                                  prohibitions in paragraph (b)(3).                                                                             contain controls on all generic ‘‘parts,’’
                                                                                                          the July 15 proposed rule that are
                                                                                                                                                                ‘‘components,’’ ‘‘accessories,’’ and
                                                  Corresponding Amendments                                submitted in response to this
                                                                                                                                                                ‘‘attachments’’ that were in any way
                                                    As discussed in further detail below,                 rulemaking.
                                                                                                                                                                ‘‘specifically designed or modified’’ for
                                                  the July 15 proposed rule stated that one                  BIS believes that the following aspects            a defense article, regardless of their
                                                  reason for control for items classified in              of the July 15 proposed rule are among                significance to maintaining a military
                                                  the 600 series is Regional Stability                    those that could affect this proposed                 advantage for the United States. Rather,
                                                  Column 1. Items classified under                        rule:                                                 they would contain a positive list of
                                                  proposed ECCN 9A610, other than                            • De minimis provisions in § 734.4;                specific types of parts, components,
                                                  ECCN 9A610.y items, as well as related                     • Definitions of terms in § 772.1;                 accessories, and attachments that
                                                  technology and software classified                         • Restrictions on use of license                   continue to warrant control on the
                                                  under ECCNs 9D610 and 9E610, would                      exceptions in §§ 740.2, 740.10, 740.11,               USML. All other parts, components,
                                                  be controlled for this reason, among                    and 740.20;                                           accessories, and attachments ‘‘specially
                                                  others. Correspondingly, this proposed                     • Change to national security                      designed’’ for a defense article would
                                                  rule would revise § 742.6 of the EAR to                 licensing policy in § 742.4;                          become subject to the new 600 series
                                                  apply the RS Column 1 licensing policy                     • Requirement to request                           controls on the CCL as described in the
                                                  to commodities classified under ECCN                    authorization to use License Exception                July 15 proposed rule. The
                                                  9A610, 9B610, 9C610 (except                             STA for end items in 600 series ECCNs                 Administration will also propose
                                                  paragraphs .y of those ECCNs), and to                   and procedures for submitting such                    revisions to the jurisdictional status of
                                                  related software and technology                         requests in §§ 740.2, 740.20, 748.8 and               certain militarily less significant end
                                                  classified under ECCNs 9D610 and                        Supp. No. 2 to part 748;                              items that do not warrant USML control,
                                                  9E610. This proposed rule would also                       • Licensing policy in § 742.4(b)(1)(ii);           but the primary impact would be with
                                                  amend the RS Column 1 licensing                         and                                                   respect to current USML controls on
                                                  policy to impose a general policy of                       • Addition of 600 series items to                  parts, components, accessories, and
                                                  denial for ‘‘600 series’’ items if the                  Supplement No. 2 to Part 744—List of                  attachments that no longer warrant
                                                  destination is subject to a United States               Items Subject to the Military End-Use                 USML control.
                                                  arms embargo and a general policy of                    Requirement of § 744.21.                                 Based, in part, on a review of the
                                                  denial for items specially designed or                     BIS believes that the following aspects            comments received in response to the
                                                  required for F–14 aircraft.                             of this proposed rule are among those                 December 2010 notices, the
                                                                                                          that could affect the provisions of the               Administration also has determined that
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                                                  Relationship to the July 15 Proposed                    July 15 proposed rule:                                fundamentally altering the structure of
                                                  Rule                                                       Addition of U.S. arms embargo policy               the USML by tiering and aligning it on
                                                    As referenced above, the purpose of                   regarding 600 series items set forth in               a category-by-category basis would
                                                  the July 15 proposed rule was to set up                 § 742.4(b)(1)(ii) (national security) of the          significantly disrupt the export control
                                                  the framework for creating ECCNs that                   July 15 proposed rule to § 742.6(b)(1)                compliance systems and procedures of
                                                  would cover articles that the President                 (regional stability) of this proposed rule;           exporters and reexporters. For example,
                                                  determines no longer warrant coverage                      • Addition of denial policy regarding              until the entire USML is revised and
                                                  on the USML, but for which export                       600 series items for F–14 aircraft set                becomes final, some USML categories


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                                                  68680                 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                  would follow the legacy numbering and                   Effects of This Proposed Rule                         the July 15 proposed restrictions on the
                                                  control structures while the newly                         BIS believes that the principal effect             use of license exceptions and the
                                                  revised categories would follow a                       of this rule will be to provide greater               additional restrictions identified in this
                                                  completely different numbering                          flexibility for exports and reexports to              proposed rule, restrictions on items
                                                  structure. The only way to alleviate this               NATO member countries and other                       currently on the USML would be
                                                  impact would be to delay                                                                                      reduced, particularly with respect to
                                                                                                          multiple-regime-member countries of
                                                  implementation until all categories are                                                                       exports to NATO members and
                                                                                                          items the President determines no
                                                  complete or to proceed with building                                                                          multiple-regime member countries, if
                                                                                                          longer warrant control on the United
                                                  positive lists now and returning to                                                                           those items were moved from the USML
                                                                                                          States Munitions List. This greater
                                                  structural changes once complete. In                                                                          to proposed ECCN 9A610. BIS also
                                                                                                          flexibility will be in the form of:
                                                  order to allow for the national security                                                                      believes that, in practice, the movement
                                                                                                          application of the EAR’s de minimis
                                                  benefits to flow from re-aligning the                                                                         of items from ECCN 9A018 to ECCN
                                                                                                          threshold principle for items
                                                  jurisdictional status of defense articles                                                                     9A610 would have little effect on
                                                                                                          constituting less than a de minimis
                                                  that no longer warrant control on the                                                                         license exception availability for those
                                                                                                          amount of controlled U.S.-origin content
                                                  USML on a category-by-category basis                                                                          items because existing restrictions or the
                                                                                                          in foreign made items; availability of                terms of the license exceptions
                                                  while minimizing the impact on                          license exceptions, particularly License              themselves already preclude most
                                                  exporters’ internal control and                         Exceptions RPL and STA; elimination of                transactions that would be precluded by
                                                  jurisdictional and classification marking               the requirements for manufacturing                    the July 15 proposed amendments to
                                                  systems, the Administration plans to                    agreements and technical assistance                   § 740.2 of the EAR. However, BIS is
                                                  proceed on a category-by-category basis                 agreements in connection with exports                 aware of two situations (the use of
                                                  with the approach described in this                     of technology; and a reduction in or                  License Exceptions GOV and STA) in
                                                  proposed rule.                                          elimination of exporter and                           which movement of items in ECCN
                                                     Finally, in order to prevent any                     manufacturer registration requirements                9A018 to ECCN 9A610 could, in
                                                  aircraft-related commodity specially                    and associated registration fees. Some of             practice, impose greater limits on use of
                                                  designed for a military use that is not                 these specific effects are discussed in               license exceptions than currently is the
                                                  described in the proposed revisions to                  more detail below.                                    case.
                                                  the USML from inadvertently dropping                    De Minimis                                               First, the July 15 proposed rule would
                                                  out of the U.S. Government’s export                                                                           limit use of License Exception GOV for
                                                                                                             Section 734.3 of the EAR provides,                 600 series commodities to situations in
                                                  controls, the rule proposes to use the
                                                                                                          inter alia, that under certain conditions             which the United States Government is
                                                  catch-all phrase ‘‘specially designed,’’ as
                                                                                                          items made outside the United States                  the consignee and end user or to
                                                  defined in the July 15 proposed rule, in
                                                                                                          that incorporate items subject to the                 situations in which the consignee or end
                                                  the new ECCNs to control commodities                    EAR are not subject to the EAR if they
                                                  not otherwise identified on the revised                                                                       user is the government of a country
                                                                                                          do not exceed a ‘‘de minimis’’                        listed in § 740.20(c)(1). Currently,
                                                  USML or elsewhere in the ECCN. The                      percentage of controlled U.S. origin
                                                  primary examples of this approach are                                                                         commodities classified under ECCN
                                                                                                          content. Depending on the destination,                9A018 may be exported under any
                                                  ECCN 9A610.a, which controls any                        the de minimis percentage can be either
                                                  aircraft ‘‘specially designed’’ for a                                                                         provision of License Exception GOV to
                                                                                                          10 percent or 25 percent. If the July 15              any destination authorized by that
                                                  military use not identified on the USML                 proposed rule’s amendments at § 734.4
                                                  or elsewhere on the CCL, and ECCN                                                                             provision if all of the conditions of that
                                                                                                          of the EAR are adopted, the new ECCNs                 provision are met and nothing else in
                                                  9A610.x, which controls any part,                       9A610, 9B610, 9C610, 9D610 and 9E610
                                                  component, accessory, or attachment                                                                           the EAR precludes such shipment.
                                                                                                          proposed in this rule would be subject                   Second, the July 15 proposed rule
                                                  ‘‘specially designed’’ for a military                   to the de minimis provisions set forth in             would limit use of License Exception
                                                  aircraft and not otherwise identified on                the July 15 proposed rule because they                STA for ‘‘end items’’ in 600 series
                                                  the USML or elsewhere in the CCL. This                  would be ‘‘600 series’’ ECCNs. Foreign-               ECCNs to those end items for which a
                                                  approach is also part of a core objective               made items incorporating items in the                 specific request for License Exception
                                                  of the Export Control Reform Initiative,                new ECCNs would become eligible for                   STA eligibility, filed in conjunction
                                                  which is to create a bright jurisdictional              de minimis treatment at the 10 percent                with a license application, has been
                                                  line between the USML and the CCL. As                   level. The AECA does not permit the                   approved and would require that the
                                                  evidenced by the proposed revisions to                  ITAR to have a de minimis treatment for               end item be for ultimate end use by a
                                                  USML Category VIII published by the                     these USML-listed items, regardless of                foreign government agency of a type
                                                  State Department concurrently with this                 the significance or insignificance of the             specified in the July 15 proposed rule.
                                                  proposed rule, the Administration is                    item. Foreign-made items incorporating                The July 15 proposed rule also would
                                                  following through on its commitment                     any items that currently are classified               limit exports of 600 series parts,
                                                  that the USML not contain generic,                      under ECCN 9A018 would be subject to                  components, accessories, and
                                                  catch-all controls on every ‘‘part,’’                   the EAR if those foreign made items                   attachments under License Exception
                                                  ‘‘component,’’ ‘‘accessory,’’ or                        contain more than 10 percent U.S.                     STA for ultimate end use by the same
                                                  ‘‘attachment’’ that is in any way                       origin controlled content, regardless of              set of end users. Neither restriction
                                                  specifically designed, modified,                        the destination and regardless of the                 currently applies to use of License
                                                  adapted, or configured, regardless of its               proportion of the U.S. origin controlled              Exception STA for commodities
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                                                  military significance, for a defense                    content accounted for by the former                   classified under ECCN 9A018. In
                                                  article. The proposed USML revision is                  ECCN 9A018 items.                                     addition, the July 15 proposed rule
                                                  a substantially more positive list than                                                                       would limit shipment of 600 series
                                                  the current list. Thus, to the extent an                Use of License Exceptions                             items under License Exception STA to
                                                  item is ‘‘specially designed’’ for a                       The July 15 proposed rule would                    destinations listed in § 740.20(c)(1).
                                                  military use, it is subject to a 600 series             impose certain limits for 600 series                  Currently, commodities classified under
                                                  ECCN in the EAR unless specifically                     items moving from existing 018 controls               ECCN 9A018.c, .d, .e, and .f (which
                                                  identified on the ITAR’s USML.                          on the CCL. BIS believes that even with               would be moved to ECCN 9A610 under


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                                                                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                          68681

                                                  this proposed rule) and related software                materials, software and technology                    the State Department determined to be
                                                  and technology (currently classified                    classified under ECCNs 9B610, 9C610,                  not subject to the ITAR and that are now
                                                  under ECCNs 9D018 and 9E018, and                        9D610 and 9E610 (other than ECCNs                     not described on the CCL would be
                                                  proposed to move to new ECCNs 9D610                     9B610.c. and 9X610.y) would be subject                subject to the AT-only controls of the
                                                  and 9E610) may be shipped under                         to the licensing policies set forth in                ‘‘.y99’’ paragraph of the applicable
                                                  License Exception STA to destinations                   § 742.4(b)(1) (national security, column              ECCN if they would otherwise be within
                                                  listed in § 740.20(c)(1) or (c)(2).                     1). Commodities classified under ECCN                 the scope of the ECCN. Thus, for
                                                                                                          9A610.l, .m and .n, along with related                example, ECCN 9A610.x would control
                                                  Making U.S. Export Controls More
                                                                                                          test, inspection and production                       any part, component, accessory, or
                                                  Consistent With the Wassenaar
                                                                                                          equipment, software and technology                    attachment not specifically identified in
                                                  Arrangement Munitions List
                                                                                                          classified under ECCNs 9B610.c, 9D610                 the USML or elsewhere in the ECCN if
                                                     The Administration has stated since                  and 9E610 would be subject to the                     it was ‘‘specially designed’’ for a
                                                  the beginning of the Export Control                     licensing policy set forth in § 742.5(b)              military aircraft. If a particular part,
                                                  Reform Initiative that the reforms will                 (missile technology) because they are                 component, accessory, or attachment
                                                  be consistent with the obligations of the               listed on the Missile Technology                      was, as defined, ‘‘specially designed’’
                                                  United States to the multilateral export                Control Regime Equipment, Software                    for a military aircraft and was at the
                                                  control regimes. Accordingly, the                       and Technology Annex. They would not                  time of a CJ determination not identified
                                                  Administration will, in this and                        be subject to national security controls              on the CCL, it would be controlled
                                                  subsequent proposed rules, exercise its                 because they are not identified on the                under 9A610.y.99. If it was identified
                                                  national discretion to implement,                       WAML. All commodities in ECCN                         or, as a matter of law or the result of a
                                                  clarify, and, to the extent feasible, align             9A610 (other than 9A610.y which is                    subsequent commodity classification
                                                  its controls with those of the regimes.                 subject to an antiterrorism reason for                (‘‘CCATS’’) determination by
                                                  For example, the proposed ECCN 9A610                    control only and the prohibitions in Part             Commerce, controlled by another legacy
                                                  tracks, to the extent possible, the                     744) along with related test, inspection              ECCN, such as 9A991.d, 7A994, or
                                                  numbering structure and text of WAML                    and production equipment, materials,                  9A003, that ECCN would continue to
                                                  category 10 pertaining to military                      software and technology classified                    apply to the item. This general approach
                                                  aircraft not subject to the ITAR. It also               under ECCNs 9B610, 9C610, 9D610 and                   will, pending public comment, be
                                                  implements in 9A610.x the controls in                   9E610 (other than 9X610.y) would be                   repeated in subsequent proposed rules
                                                  WAML category 16 for forgings,                          subject to the licensing policies set forth           pertaining to other categories of items.
                                                  castings, and other unfinished products;                in § 742.6(a)(1) (regional stability,                    If, however, the State Department had
                                                  in 9B610.a and .b the controls in WAML                  column 1).                                            made a CJ determination that a
                                                  category 18 for production equipment;                      The July 15 proposed rule would                    particular item was subject to the
                                                  in 9D610 the applicable controls in                     change § 742.4 to set forth a general                 jurisdiction of ITAR but that item is not
                                                  WAML category 21 for software; and in                   policy of denial for 600 series items for             described on the final, implemented
                                                  9E610 the applicable controls in WAML                   destinations that are subject to a United             version of a revised USML category, a
                                                  category 22 for technology.                             States arms embargo, which would                      new CJ determination would not be
                                                                                                          apply to all items controlled for national            required unless there was doubt about
                                                  Clarifying the Relationship Between
                                                                                                          security reasons under this proposed                  the application of the new USML
                                                  U.S. Export Controls and the Missile
                                                                                                          rule. This proposed rule adds that                    category to the item. (See 22 CFR 120.4).
                                                  Technology Control Regime (MTCR)
                                                                                                          general policy of denial to § 742.6(b)(1)             Thus, unless there were doubts about
                                                  Equipment, Software and Technology                      (regional stability column 1). This                   the jurisdictional status of a particular
                                                  Annex                                                   addition is needed so that the general                item, exporters and reexporters would
                                                     This proposed rule would identify the                denial policy for 600 series items would              be entitled to rely on the revised USML
                                                  specific paragraphs in proposed ECCNs                   apply to items in proposed ECCNs                      categories when making jurisdictional
                                                  9A610, 9B610, 9D610, and 9E610 that                     9A610, 9B610, 9D610 and 9E610 that                    determinations, notwithstanding past CJ
                                                  list items that are also on the MTCR                    are subject to the missile technology and             determinations that, under the previous
                                                  Equipment, Software and Technology                      regional stability reasons for control but            version of the USML, the item was ITAR
                                                  Annex and apply the MT Column 1                         not to the national security reason for               controlled.
                                                  reason for control to those paragraphs.                 control. This rule also adds a general                   Finally, if the State Department had
                                                  This action would impose the missile                    policy of denial to § 742.6(b)(1) for items           made a CJ determination that a
                                                  technology based license requirements                   specially designed or required for F–14               particular item was subject to the
                                                  and licensing policy of § 742.5 of the                  aircraft because Iran is the only country             jurisdiction of the ITAR and that item
                                                  EAR to those items. Those items are                     that has such aircraft in its active                  remains in the revised USML, the item
                                                  currently subject to the ITAR, which                    inventory.                                            would remain subject to the jurisdiction
                                                  does not specify the multilateral regime                                                                      of the ITAR.
                                                                                                          Jurisdictional and Classification Status
                                                  on which a license requirement is
                                                                                                          of Items Subject to Previous Commodity                Section-by-Section Description of the
                                                  based. Listing these items on the CCL
                                                                                                          Jurisdiction Determinations                           Proposed Changes
                                                  with the reason for control stated will
                                                  correlate the underlying MTCR control                      The Administration recognizes that                    • Section 738.2(d)(2)(ii)—Adds a
                                                  with export license requirements and                    some items that would fall within the                 reference to STA paragraphs in some
                                                  licensing policy.                                       scope of the proposed new ECCNs will                  600 series ECCNs that clarify STA
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                                                                                                          have been subject to commodity                        eligibility regarding those ECCNs.
                                                  Other Effects                                           jurisdiction (CJ) determinations issued                  • Section 740.2—Republishes
                                                    Pursuant to the framework identified                  by the United States Department of                    proposed new paragraph (a)(13) from
                                                  in the July 15 proposed rule,                           State. The State Department will have                 the July 15 proposed rule with changes
                                                  commodities classified under ECCN                       either determined that the item was                   to make License Exception STA eligible
                                                  9A610 (other than ECCN 9A610.l, .m, .n,                 subject to the jurisdiction of the ITAR or            for exports, reexports, and in-country
                                                  and. y), along with related test,                       that it was not. (See 22 CFR 120.3 and                transfers of items that would be used in
                                                  inspection and production equipment,                    120.4). Under this proposed rule, items               the production of items for governments


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                                                  68682                 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                  of countries listed in 740.20(c)(1), or for             aircraft) that have been moved to those               in an increase in burden hours of 5,067
                                                  the United States Government or any                     ECCNs.                                                (16,000 transactions at 17 minutes each)
                                                  person in the United States.                                                                                  under control number 0694–0088.
                                                                                                          Request for Comments
                                                     • Section 740.11—Amends License                                                                               Some items formerly on the USML
                                                  Exception GOV to add references to                        BIS seeks comments on this proposed                 would become eligible for License
                                                  Supplement No. 4 to part 740 and                        rule. BIS will consider all comments                  Exception STA under this rule. Other
                                                  partially restates the prohibition on                   received on or before December 22,                    such items may become eligible for
                                                  using provisions of License Exception                   2011. All comments (including any                     License Exception STA upon approval
                                                  GOV to export or reexport certain                       personally identifying information or                 of a request submitted in conjunction
                                                  technology and software listed in that                  information for which a claim of                      with a license application. As stated in
                                                  supplement, other than exports and                      confidentially is asserted either in those            the July 15 proposed rule, BIS believes
                                                  reexports to personnel and agencies of                  comments or their transmittal emails)                 that the increased use of License
                                                  the U.S. Government.                                    will be made available for public                     Exception STA resulting from the
                                                     • Section 740.20—Amends License                      inspection and copying. Parties who                   combined effect of all rules to be
                                                  Exception STA to refer to Supp. No. 4                   wish to comment anonymously may do                    published adding items to EAR that
                                                  to part 740 and partially restate the                   so by submitting their comments via                   would be removed from the ITAR as
                                                  prohibition on using license exception                  Regulations.gov, leaving the fields that              part of the administration’s Export
                                                  STA to export, reexport or transfer (in-                would identify the commenter blank                    Control Reform Initiative would
                                                  country) certain technology and                         and including no identifying                          increase the burden associated with
                                                  software listed in that supplement.                     information in the comment itself.                    control number 0694–0137 by about
                                                  Republishing a ‘‘Note to paragraph                      Regulatory Requirements                               23,858 hours (20,450 transactions @ 1
                                                  (c)(1)’’ from the July 15 proposed rule                                                                       hour and 10 minutes each).
                                                                                                             1. Executive Orders 13563 and 12866                   BIS expects that this increase in
                                                  with additional text to make License                    direct agencies to assess all costs and
                                                  Exception STA eligible for exports,                                                                           burden would be more than offset by a
                                                                                                          benefits of available regulatory                      reduction in burden hours associated
                                                  reexports and in-country transfers of                   alternatives and, if regulation is                    with approved collections related to the
                                                  items that would be for or used for the                 necessary, to select regulatory                       ITAR. This proposed rule addresses
                                                  production or development of items for                  approaches that maximize net benefits                 controls on military aircraft and related
                                                  governments of countries listed in                      (including potential economic,                        parts, components, production
                                                  740.20(c)(1), or for the United States                  environmental, public health and safety               equipment, materials, software, and
                                                  Government or any person in the United                  effects, distribute impacts, and equity).             technology. The largest impact of the
                                                  States.                                                 Executive Order 13563 emphasizes the                  proposed rule would be with respect to
                                                     • Supplement No. 4 to part 740—                      importance of quantifying both costs                  exporters of parts and components
                                                  Prohibits using License Exception STA                   and benefits, of reducing costs, of                   because, under the proposed rule, most
                                                  or provisions of License Exception GOV                  harmonizing rules, and of promoting                   U.S. and foreign military aircraft
                                                  other than those authorizing exports and                flexibility. This rule has been                       currently in service would continue to
                                                  reexports to personnel and agencies of                  designated a ‘‘significant regulatory                 be subject to the ITAR. Because, with
                                                  the U.S. Government to export, reexport                 action,’’ although not economically                   few exceptions, the ITAR allows
                                                  or transfer software and technology                     significant, under section 3(f) of                    exemptions from license requirements
                                                  (other than ‘‘build-to-print technology’’)              Executive Order 12866. Accordingly,                   only for exports to Canada, most exports
                                                  for the development or production of                    the rule has been reviewed by the Office              to integrators for U.S government
                                                  specified ECCN 9A610.x items.                           of Management and Budget (OMB).                       equipment and most exports of routine
                                                     • Section 742.6—ECCNs 9A610,                            2. Notwithstanding any other                       maintenance parts and components for
                                                  9B610, 9C610, 9D610 and 9E610 are                       provision of law, no person is required               our NATO and other close allies require
                                                  added to § 742.6(a)(1) to impose a RS                   to respond to, nor is subject to a penalty            State Department authorization. In
                                                  Column 1 license requirement and                        for failure to comply with, a collection              addition, the exports necessary to
                                                  licensing policy. Section 742.6(b)(1)                   of information, subject to the                        produce parts and components for
                                                  would be amended to apply a general                     requirements of the Paperwork                         defense articles in the inventories of the
                                                  denial policy for applications to export                Reduction Act of 1995 (44 U.S.C. 3501                 United States and its NATO and other
                                                  or reexport ‘‘600 series’’ to destinations              et seq.) (PRA), unless that collection of             close allies require State Department
                                                  that are subject to a United States arms                information displays a currently valid                authorizations. Under the EAR, as
                                                  embargo and to export items specially                   OMB control number. This proposed                     proposed, a small number of low level
                                                  designed for or required for F–14                       rule would affect two approved                        parts would not require a license to
                                                  aircraft to any destination.                            collections: Simplified Network                       most destinations. Most other parts,
                                                     • Section 770.2—Removes paragraph                    Application Processing + System                       components, accessories, and
                                                  (i)—Interpretation 9: Civil aircraft and                (control number 0694–0088), which                     attachments would become eligible for
                                                  civil aircraft equipment.                               includes, among other things, license                 export to NATO and other close allies
                                                     • Section 772.1—Adds a definition of                 applications, and License Exceptions                  under License Exception STA. Use of
                                                  ‘‘build-to-print technology.’’                          and Exclusions (0694–0137).                           License Exception STA imposes a
                                                     • Supplement No. 1 to part 774—                         As stated in the proposed rule                     paperwork and compliance burden
                                                  Adds ECCNs 9A610, 9B610, 9C610,                         published at 76 FR 41958 (July 15,                    because, for example, exporters must
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                                                  9D610 and 9E610. Replaces existing text                 2011), BIS believes that the combined                 furnish information about the item
                                                  of ECCNs 9A018, 9D018 and 9E018 with                    effect of all rules to be published adding            being exported to the consignee and
                                                  cross-references to ECCNs 0A606,                        items to EAR that would be removed                    obtain from the consignee an
                                                  0D606 and 0E606 for items related to                    from the ITAR as part of the                          acknowledgement and commitment to
                                                  ground vehicles that have been moved                    administration’s Export Control Reform                comply with the EAR. It is, however, the
                                                  to those ECCNs and with references to                   Initiative would increase the number of               Administration’s understanding that
                                                  new ECCNs 9A610, 9D610 and 9E610                        license applications to be submitted by               complying with the requirements of
                                                  for all other items (i.e., items related to             approximately 16,000 annually resulting               STA is likely to be less burdensome


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                                                                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                         68683

                                                  than applying for licenses. For example,                rule, it acknowledges that this rule                  significance or insignificance of the
                                                  under License Exception STA, a single                   would affect some unknown number.                     item, discouraging foreign buyers from
                                                  consignee statement can apply to an                                                                           incorporating such U.S. content. The
                                                                                                          Economic Impact
                                                  unlimited number of products, need not                                                                        availability of de minimis treatment
                                                  have an expiration date and need not be                    This proposed rule is part of the                  under the EAR may reduce the incentive
                                                  submitted to the government in advance                  Administration’s Export Control Reform                for foreign manufacturers to avoid
                                                  for approval. Suppliers with regular                    Initiative. Under that initiative, the                purchasing U.S.-origin parts and
                                                  customers can tailor a single statement                 United States Munitions List (22 CFR                  components
                                                  and assurance to match their business                   part 121) (USML) would be revised to be                  Twenty-five types of parts and
                                                  relationship rather than applying                       a ‘‘positive’’ list, i.e., a list that does not       components, identified in ECCN
                                                  repeatedly for licenses with every                      use generic, catch-all controls on any                9A610.y, would be designated
                                                  purchase order to supply allied and, in                 part, component, accessory, attachment,               immediately as parts and components
                                                  some cases, U.S forces with routine                     or end item that was in any way                       that, even if specially designed for a
                                                  replacement parts and components.                       specifically modified for a defense                   military use, have little or no military
                                                     Even in situations in which a license                article, regardless of the article’s                  significance. These parts and
                                                  would be required under the EAR, the                    military or intelligence significance or              components, which under the ITAR
                                                  burden is likely to be reduced compared                 non-military applications. At the same                require a license to nearly all
                                                  to the license requirement of the ITAR.                 time, articles that are determined to no              destinations, would, under the EAR,
                                                  In particular, license applications for                 longer warrant control on the USML                    require a license to only five
                                                  exports of technology controlled by                     would become controlled on the                        destinations and, if destined for a
                                                  ECCN 9E610 are likely to be less                        Commerce Control List (CCL). Such                     military end use, the People’s Republic
                                                  complex and burdensome than the                         items, along with certain military items              of China.
                                                  authorizations required to export ITAR-                 that currently are on the CCL, will be                   Many exports and reexports of the
                                                  controlled technology, i.e.,                            identified in specific Export Control                 Category VIII articles that would be
                                                  Manufacturing License Agreements and                    Classification Numbers (ECCNs) known                  placed on the CCL by this rule,
                                                  Technical Assistance Agreements.                        as the ‘‘600 series’’ ECCNs. In addition,             particularly parts and components,
                                                     3. This rule does not contain policies               some items currently on the Commerce                  would become eligible for license
                                                  with Federalism implications as that                    Control List would move from existing                 exceptions that apply to shipments to
                                                  term is defined under E.O. 13132.                       ECCNs to the new 600 series ECCNs. In                 United States Government agencies,
                                                     4. The Regulatory Flexibility Act                    practice, the greatest impact of this rule            shipments valued at less than $1,500,
                                                  (RFA), as amended by the Small                          on small entities would likely be                     parts and components being exported
                                                  Business Regulatory Enforcement                         reduced administrative costs and                      for use as replacement parts, temporary
                                                  Fairness Act of 1996 (SBREFA), 5 U.S.C.                 reduced delay for exports of items that               exports, and License Exception Strategic
                                                  601 et seq., generally requires an agency               are now on the USML but would                         Trade Authorization (STA), reducing
                                                  to prepare a regulatory flexibility                     become subject to the EAR. This rule                  the number of licenses that exporters of
                                                  analysis of any rule subject to the notice              focuses on Category VIII articles, which              these items would need. License
                                                  and comment rulemaking requirements                     are aircraft and related parts,                       Exceptions under the EAR would allow
                                                  under the Administrative Procedure Act                  components, production equipment,                     suppliers to send routine replacement
                                                  (5 U.S.C. 553) or any other statute,                    software, and technology. Most                        parts and low level parts to NATO and
                                                  unless the agency certifies that the rule               operational military aircraft currently in            other close allies and export control
                                                  will not have a significant economic                    active inventory would remain on the                  regime partners for use by those
                                                  impact on a substantial number of small                 USML. However, parts and components,                  governments and for use by contractors
                                                  entities. Under section 605(b) of the                   which are more likely to be produced by               building equipment for those
                                                  RFA, however, if the head of an agency                  small businesses than are complete                    governments or for the United States
                                                  certifies that a rule will not have a                   military aircraft, would in many cases                government without having to obtain
                                                  significant impact on a substantial                     become subject to the EAR. In addition,               export licenses. Under License
                                                  number of small entities, the statute                                                                         Exception STA, the exporter would
                                                                                                          officials of the Department of State have
                                                  does not require the agency to prepare                                                                        need to furnish information about the
                                                                                                          informed BIS that license applications
                                                  a regulatory flexibility analysis.                                                                            item being exported to the consignee
                                                                                                          for such parts and components are a
                                                  Pursuant to section 605(b), the Chief                                                                         and obtain a statement from the
                                                                                                          high percentage of the license
                                                  Counsel for Regulations, Department of                                                                        consignee that, among other things,
                                                                                                          applications for USML articles review
                                                  Commerce, certified to the Chief                                                                              would commit the consignee to comply
                                                                                                          by that department.
                                                  Counsel for Advocacy, Small Business                                                                          with the EAR and other applicable U.S.
                                                                                                             Changing the jurisdictional status of
                                                  Administration that this proposed rule,                                                                       laws. Because such statements and
                                                                                                          Category VIII items would reduce the
                                                  if promulgated, will not have a                                                                               obligations can apply to an unlimited
                                                                                                          burden on small entities (and other
                                                  significant impact on a substantial                                                                           number of transactions and have no
                                                                                                          entities as well) through:
                                                  number of small entities for the reasons                                                                      expiration date, they would impose a
                                                  explained below. Consequently, BIS has                  —Elimination of some license                          net reduction in burden on transactions
                                                  not prepared a regulatory flexibility                      requirements,                                      that the government routinely approves
                                                                                                          —Greater availability of license                      through the license application process
                                                  analysis. A summary of the factual basis
                                                                                                             exceptions,                                        that the License Exception STA
                                                  for the certification is provided below.
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                                                                                                          —Simpler license application                          statements would replace.
                                                  Number of Small Entities                                   procedures, and                                       Even for exports and reexports in
                                                    The Bureau of Industry and Security                   —Reduced (or eliminated) registration                 which a license would be required, the
                                                  (BIS) does not collect data on the size                    fees.                                              process would be simpler and less
                                                  of entities that apply for and are issued                 In addition, parts and components                   costly under the EAR. When a USML
                                                  export licenses. Although BIS is unable                 controlled under the ITAR remain under                Category VIII article is moved to the
                                                  to estimate the exact number of small                   ITAR control when incorporated into                   CCL, the number of destinations for
                                                  entities that would be affected by this                 foreign-made items, regardless of the                 which a license is required would


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                                                  68684                 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                  remain unchanged. However, the                          its ITAR registration and registration fee            For these reasons, the Chief Counsel for
                                                  burden on the license applicant would                   requirement would be eliminated.                      Regulations of the Department of
                                                  decrease because the licensing                             De minimis treatment under the EAR                 Commerce certified to the Chief Counsel
                                                  procedure for CCL items is simpler and                  would become available for all items                  for Advocacy of the Small Business
                                                  more flexible that the license procedure                that this rule would transfer from the                Administration that this rule, if adopted
                                                  for UMSL articles.                                      USML to the CCL. Items subject to the                 in final form, would not have a
                                                     Under the USML licensing procedure,                  ITAR remain subject to the ITAR when                  significant economic impact on a
                                                  an applicant must include a purchase                    they are incorporated abroad into a                   substantial number of small entities.
                                                  order or contract with its application.                 foreign-made product regardless of the
                                                  There is no such requirement under the                  percentage of U.S content in that foreign             List of Subjects
                                                  CCL licensing procedure. This                           made product. Foreign-made products                   15 CFR Parts 738, 770 and 772
                                                  difference gives the CCL applicant at                   that incorporate items that this rule
                                                                                                                                                                    Exports.
                                                  least two advantages. First, the                        would move to the CCL would be
                                                  applicant has a way of determining                      subject to the EAR only if their total                15 CFR Part 740
                                                  whether the U.S. government will                        controlled U.S.-origin content exceeded                 Administrative practice and
                                                  authorize the transaction before it enters              10 percent. Because including small                   procedure, Exports, Reporting and
                                                  into potentially lengthy, complex and                   amounts of U.S.-origin content would                  recordkeeping requirements.
                                                  expensive sales presentations or                        not subject foreign-made products to the
                                                  contract negotiations. Under the USML                   EAR, foreign manufacturers would have                 15 CFR Part 742
                                                  procedure, the applicant will need to                   less incentive to avoid such U.S.-origin                  Exports, Terrorism.
                                                  caveat all sales presentations with a                   parts and components, a development
                                                  reference to the need for government                    that potentially would mean greater                   15 CFR Part 774
                                                  approval and is more likely to have to                  sales for U.S. suppliers, including small               Exports, Reporting and recordkeeping
                                                  engage in substantial effort and expense                entities.                                             requirements.
                                                  only to find that the government will                      For items currently on the CCL that
                                                                                                                                                                  For the reasons stated in the
                                                  reject the application. Second, a CCL                   would be moved from existing ECCNs to
                                                                                                                                                                preamble, the Export Administration
                                                  license applicant need not limit its                    the new 600 series, license exception
                                                                                                                                                                Regulations (15 CFR parts 730–774) are
                                                  application to the quantity or value of                 availability would be narrowed
                                                                                                                                                                proposed to be amended as follows:
                                                  one purchase order or contract. It may                  somewhat and the applicable de
                                                  apply for a license to cover all of its                 minimis threshold for foreign-made                    15 CFR PART 738—[AMENDED]
                                                  expected exports or reexports to a                      products containing those items would
                                                  particular consignee over the life of a                 in some cases be reduced from 25                        1. The authority citations paragraph
                                                  license (normally two years, but may be                 percent to 10 percent. BIS is still                   for part 738 continues to read as
                                                  longer if circumstances warrant a longer                considering comments made in                          follows:
                                                  period), reducing the total number of                   response to the July 15 rule pertaining                 Authority: 50 U.S.C. app. 2401 et seq.; 50
                                                  licenses for which the applicant must                   to these proposed new de minimis                      U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
                                                  apply.                                                  levels and as noted above, will consider              7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et
                                                     In addition, many applicants                         de minimis related comments to this                   seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u);
                                                  exporting or reexporting items that this                proposed rule provided they are in the                42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C.
                                                  rule would transfer from the USML to                    context of this proposed rule. However,               1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
                                                  the CCL would realize cost savings                      BIS believes that increased burden                    U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
                                                  through the elimination of some or all                  imposed by those actions will be offset               13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
                                                                                                                                                                228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                                  registration fees currently assessed                    substantially by the reduction in burden              Comp., p. 783; Notice of August 12, 2011, 76
                                                  under the USML’s licensing procedure.                   attributable to the moving of items from              FR 50661 (August 16, 2011).
                                                  Currently, USML applicants must pay to                  the USML to CCL and the compliance
                                                  use the USML licensing procedure even                   benefits associated with the                            2. Section 738.2(d)(2)(ii) is amended
                                                  if they never actually are authorized to                consolidation of all WAML items                       by adding a sentence immediately
                                                  export. Registration fees for                           subject to the EAR in one series of                   following the fifth sentence that reads as
                                                  manufacturers and exporters of articles                 ECCNs.                                                follows:
                                                  on the USML start at $2,500 per year,                                                                         § 738.2 Commerce Control List (CCL)
                                                                                                          Conclusion
                                                  increase to $2,750 for organizations                                                                          structure.
                                                  applying for one to ten licenses per year                  BIS is unable to determine the precise
                                                                                                          number of small entities that would be                *      *   *      *    *
                                                  and further increases to $2,750 plus
                                                                                                          affected by this rule. Based on the facts               (d) * * *
                                                  $250 per license application (subject to                                                                        (2) * * *
                                                  a maximum of three percent of total                     and conclusions set forth above, BIS
                                                                                                                                                                  (ii) * * * In some ‘‘600 series’’
                                                  application value) for those who need to                believes that any burdens imposed by
                                                                                                                                                                ECCNs, the STA license exception
                                                  apply for more than ten licenses per                    this rule would be offset by the
                                                                                                                                                                paragraph or a note to the License
                                                  year. There are no registration or                      reduction in the number of items that
                                                                                                                                                                Exceptions section contains additional
                                                  application processing fees for                         would require a license, increased
                                                                                                                                                                information about License Exception
                                                  applications to export items listed on                  opportunities for use of license
                                                                                                                                                                STA applicability to that ECCN.
                                                  the CCL. Once the Category VIII items                   exceptions for exports to certain
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                                                  that are the subject to this rulemaking                 countries, simpler export license                     15 CFR PART 740—[AMENDED]
                                                  are moved from the USML to the CCL,                     applications, reduced or eliminated
                                                  entities currently applying for licenses                registration fees and application of a de               3. The authority citations paragraph
                                                  from the Department of State would find                 minimis threshold for foreign-made                    for part 740 continues to read as
                                                  their registration fees reduced if the                  items incorporating U.S.-origin parts                 follows:
                                                  number of USML licenses those entities                  and components, which would reduce                      Authority: 50 U.S.C. app. 2401 et seq.; 50
                                                  need declines. If an entity’s entire                    the incentive for foreign buyers to                   U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.;
                                                  product line is moved to the CCL, then                  design out or avoid U.S.-origin content.              E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp.,



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                                                                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                            68685

                                                  p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001               (ii) ‘‘600 series’’ ‘‘parts,’’                     authorized through License Exception
                                                  Comp., p. 783; Notice of August 12, 2011, 76            ‘‘components,’’ ‘‘accessories’’ and                   STA under § 740.20(c)(1) so long as the
                                                  FR 50661 (August 16, 2011).                             ‘‘attachments,’’ or any item classified in            item at issue at the time of export,
                                                    4. Section 740.2 is amended by                        a ‘‘600 series’’ product group B or C                 reexport or transfer (in-country) is
                                                  adding a paragraph (a)(13) to read as                   ECCN may only be authorized by the                    ultimately destined for end use by the
                                                  follows:                                                following license exceptions:                         armed forces, police, paramilitary, law
                                                                                                             (A) License Exception LVS (§ 740.3);               enforcement, customs, correctional, fire,
                                                  § 740.2 Restriction on all license                         (B) License Exception TMP (§ 740.9);               and search and rescue agencies of a
                                                  exceptions.                                                (C) License Exception RPL (§ 740.10);              government of one of the § 740.20(c)(1)
                                                     (a) * * *                                               (D) License Exception GOV                          countries or by the United States
                                                     (13) Items classified under the ‘‘600                (§ 740.11(b)(2)(ii) or (b)(2)(iii)). License          Government, or is for the
                                                  series’’ are not eligible for any license               Exception GOV paragraph (b)(2)(iii) is                ‘‘development’’ or ‘‘production’’ of an
                                                  exception, except as described in                       only available for countries listed in                item for use by one of those agencies of
                                                  paragraph (a)(13)(i), (ii), or (iii) of this            § 740.20(c)(1) ; or                                   those governments or a person in the
                                                  section. For MT-controlled items,                          (E) License Exception STA under
                                                                                                                                                                United States. This paragraph does not
                                                  including ‘‘600 series’’ ECCNs, see the                 § 740.20(c)(1), provided the ultimate
                                                                                                                                                                alter the limitations on the use of
                                                  restrictions on all license exceptions in               end use for the ‘‘parts,’’ ‘‘components,’’
                                                                                                                                                                License Exception STA contained in
                                                  paragraph (a)(5) of this section. Under                 ‘‘accessories and attachments’’ or for
                                                                                                                                                                § 740.20(b)(2).
                                                  the restriction in paragraph (a)(5), no                 any item classified in a ‘‘600 series’’
                                                  such ‘‘600 series’’ ECCNs are eligible for              product group B or C ECCN is by a                     *      *     *    *     *
                                                  license exceptions. You may not use a                   government in one of the countries                       5. Section 740.11 is amended by:
                                                  license exception to authorize a MT-                    listed in § 740.20(c)(1) or by the United                a. adding a new paragraph (a)(5),
                                                  controlled item in the ‘‘600 series.’’                  States Government, or is for the                         b. revising paragraph (b)(2)(iii)(A),
                                                     (i) ‘‘600 series’’ ‘‘end items’’ may only            ‘‘development’’ or ‘‘production’’ of an                  c. revising paragraph (b)(2)(iv)(A),
                                                  be authorized by the following license                  item for use by one of those                             d. revising paragraphs (c)(2)(ii) and
                                                  exceptions:                                             governments or a person in the United                 (c)(2)(iii) and adding a new paragraph
                                                     (A) License Exception LVS (§ 740.3);                 States. Exports and reexports to non-                 (c)(2)(iv), and
                                                     (B) License Exception TMP (§ 740.9);                 governmental end users in a country                      e. adding a note to paragraph (d)(1),
                                                     (C) License Exception RPL (§ 740.10);                listed in § 740.20(c)(1) are authorized               to read as follows:
                                                     (D) License Exception GOV                            through License Exception STA under                   § 740.11 Governments, international
                                                  (§ 740.11(b)(2)(ii) or (b)(2)(iii)). License            § 740.20(c)(1) so long as the item at                 organizations, international inspections
                                                  Exception GOV paragraph (b)(2)(iii) is                  issue at the time of export, reexport, or             under the Chemical Weapons Convention,
                                                  only available for countries listed in                  transfer (in-country) is ultimately                   and the international space station (GOV).
                                                  § 740.20(c)(1); or                                      destined for end use by the armed                     *       *     *    *      *
                                                     (E) License Exception STA under                      forces, police, paramilitary, law                        (a) * * *
                                                  § 740.20(c)(1), provided License                        enforcement, customs, correctional, fire,
                                                     Exception STA has been identified by                                                                          (5) This paragraph (a) does not
                                                                                                          and search and rescue agencies of a                   authorize exports or reexports of
                                                  BIS in writing or published as an                       government of one of the § 740.20(c)(1)
                                                  eligible license exception for the                                                                            technology prohibited by Supplement
                                                                                                          countries or by the United States                     No. 4 to this part.
                                                  particular ‘‘600 series’’ ‘‘end item’’ in               Government, or is for the
                                                  response to a License Exception STA                                                                              (b) * * *
                                                                                                          ‘‘development’’ or ‘‘production’’ of an                  (2) * * *
                                                  eligibility request in accordance with                  item for use by one of those agencies of
                                                  § 740.20(g) of the EAR and the ultimate                                                                          (iii)(A) Items for official use within
                                                                                                          those governments or a person in the                  national territory by agencies of
                                                  end use for the end item is by a                        United States. This paragraph does not
                                                  government in one of the countries                                                                            cooperating governments. This License
                                                                                                          alter the limitations on the use of                   Exception is available for all items
                                                  listed in § 740.20(c)(1) or by the United               License Exception STA contained in
                                                  States Government, or is for the                                                                              consigned to and for the official use of
                                                                                                          § 740.20(b)(2).                                       any agency of a cooperating government
                                                  ‘‘development’’ or ‘‘production’’ of an                    (iii) ‘‘600 series’’ ‘‘software’’ and
                                                  item for use by one of those                                                                                  within the territory of any cooperating
                                                                                                          ‘‘technology’’ may only be authorized by              government, except items described in
                                                  governments or a person in the United                   the following license exceptions:
                                                  States. Except for MT-controlled items,                                                                       paragraph (a) of Supplement No. 1 to
                                                                                                             (A) License Exception GOV
                                                  exports and reexports to non-                                                                                 this section and technology prohibited
                                                                                                          (§ 740.11(b)(2)(ii) or (b)(2)(iii)). License
                                                  governmental end users in a country                                                                           by Supplement No. 4 to this part.
                                                                                                          Exception GOV paragraph (b)(2)(iii) is
                                                  listed in § 740.20(c)(1) are authorized                 only available for countries listed in                *       *     *    *      *
                                                  through License Exception STA under                     § 740.20(c)(1);                                          (iv) (A) Diplomatic and consular
                                                  § 740.20(c)(1) so long as the item at                      (B) License Exception TSU                          missions of a cooperating government.
                                                  issue at the time of export, reexport, or               (§ 740.13(a) or (b)); or                              This License Exception is available for
                                                  transfer (in-country) is ultimately                        (C) License Exception STA                          all items consigned to and for the
                                                  destined for end use by the armed                       (§ 740.20(c)(1)), provided the ultimate               official use of a diplomatic or consular
                                                  forces, police, paramilitary, law                       end use for the ‘‘software’’ or                       mission of a cooperating government
                                                  enforcement, customs, correctional, fire,               ‘‘technology’’ is by a government in one              located in any country in Country
srobinson on DSK4SPTVN1PROD with PROPOSALS




                                                  and search and rescue agencies of a                     of the countries listed in § 740.20(c)(1)             Group B (see Supplement No. 1 to part
                                                  government of one of the § 740.20(c)(1)                 or by the United States Government, or                740), except items described in
                                                  countries or by the United States                       is for the ‘‘development’’ or                         paragraph (b) of Supplement No. 1 to
                                                  Government, or is for the                               ‘‘production’’ of an item for use by one              this section and technology prohibited
                                                  ‘‘development’’ or ‘‘production’’ of an                 of those governments or a person in the               by Supplement No. 4 to this part.
                                                  item for use by one of those agencies of                United States. Exports and reexports to               *       *     *    *      *
                                                  those governments or a person in the                    non-governmental end users in a                          (c) * * *
                                                  United States.                                          country listed in § 740.20(c)(1) are                     (2) * * *


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                                                  68686                 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                     (ii) Inspection samples collected in                 paragraphs of ‘‘600 series’’ ECCNs and                  (11) Integrated Vehicle Health Management
                                                  the U.S. pursuant to the Convention;                    imposes limitations on the use of License             Systems (IVHMS), Condition Based
                                                     (iii) Commodities and software that                  Exceptions GOV (§ 740.11 of the EAR) and              Maintenance (CBM) Systems, and Flight Data
                                                  are no longer in OPCW official use (such                STA (§ 740.20 of the EAR) with respect to             Monitoring (FDM) systems;
                                                                                                          exports, reexports, and transfers (in-country)          (12) Equipment ‘‘specially designed’’ for
                                                  items must be disposed of in accordance                 of ‘‘development’’ and ‘‘production’’ software        system prognostic and health management of
                                                  with the EAR); and                                      or technology related to those parts and              aircraft;
                                                     (iv) Technology prohibited by                        components. The restrictions and the parts              (13) Active Vibration Control Systems;
                                                  Supplement No. 4 to this part.                          and components are listed by Commerce                   (14) Fuel Cells ‘‘specially designed’’ for use
                                                  *       *    *     *   *                                Control List category.                                in UAV or Lighter-than-Air-Vehicles; or
                                                     (d) * * *                                               (a) Restrictions applicable to Category 9.           (15) Self-sealing fuel bladders ‘‘specially
                                                     (1) * * *                                            License Exception STA may not be used to              designed’’ to pass a .50 caliber or larger
                                                                                                          export, reexport, or transfer (in-country)            gunfire test (MIL–DTL–5578, MIL–DTL–
                                                    Note to paragraph (d)(1). This paragraph              ECCN 9D610 ‘‘software’’ or ECCN 9E610                 27422).
                                                  (d) does not authorize any export or reexport           ‘‘technology’’ (other than ‘‘build-to-print             (b) RESERVED
                                                  prohibited by Supplement No. 4 to this part.            technology’’) for the ‘‘development’’ or
                                                    6. Section 740.20 is amended by                       ‘‘production’’ of any of the types of ‘‘parts’’
                                                                                                          or ‘‘components’’ listed below. In addition,          15 CFR PART 742—[AMENDED]
                                                  adding a paragraph (b)(3) and a note to
                                                  paragraph (c)(1) to read as follows:                    License Exception GOV may not be used to                8. The authority citations paragraph
                                                                                                          export or reexport ECCN 9D610 ‘‘software’’ or
                                                                                                          ECCN 9E610 ‘‘technology’’ (other than
                                                                                                                                                                for part 742 continues to read as
                                                  § 740.20 License Exception Strategic
                                                                                                          ‘‘build-to-print technology’’) for the                follows:
                                                  Trade Authorization (STA).
                                                  *     *    *     *    *                                 ‘‘development’’ or ‘‘production’’ of any of the         Authority: 50 U.S.C. app. 2401 et seq.; 50
                                                                                                          types of ‘‘parts’’ or ‘‘components’’ listed           U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
                                                    (b) * * *
                                                                                                          below, except with respect to exports,                42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
                                                    (3) License Exception STA may not be
                                                                                                          reexports, and transfers (in-country) to U.S.         U.S.C. 7210; Sec 1503, Pub. L. 108–11, 117
                                                  used to export, reexport, or transfer (in-              government agencies and personnel                     Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR,
                                                  country) any technology prohibited by                   identified in § 740.11(b)(2)(i) and (ii).             1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
                                                  Supplement No. 4 to this part.                             (1) Static structural members;                     3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
                                                  *     *    *     *    *                                    (2) Exterior skins, removable fairings, non-       FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
                                                    (c) * * *                                             removable fairings, radomes, access doors             13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
                                                                                                          and panels, and in-flight opening doors;              228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                                     Note to paragraph (c)(1). License                       (3) Control surfaces, leading edges, trailing      Comp., p. 783; Presidential Determination
                                                  Exception STA under § 740.20(c)(1) may be
                                                                                                          edges, and leading edge flap seals;                   2003–23 of May 7, 2003, 68 FR 26459, May
                                                  used to authorize the export, reexport, or
                                                                                                             (4) Leading edge flap actuation system             16, 2003; Notice of November 4, 2010, 75 FR
                                                  transfer (in-country) of ‘‘600 series’’ items,
                                                                                                          commodities (i.e., power drive units, rotary          68673 (November 8, 2010); Notice of August
                                                  provided the ultimate end use for such items
                                                                                                          geared actuators, torque tubes, asymmetry             12, 2011, 76 FR 50661 (August 16, 2011).
                                                  is by, or for the ‘‘production’’ or
                                                  ‘‘development’’ of an item to be used by, the           brakes, position sensors, and angle
                                                                                                          gearboxes) ‘‘specially designed’’ for fighter,           9. Section 742.6 is amended by
                                                  armed forces, police, paramilitary, law                                                                       revising paragraph (a)(1) and by adding
                                                  enforcement, customs, correctional, fire, and           attack, or bomber aircraft controlled in USML
                                                                                                          Category VIII;                                        a sentence immediately following the
                                                  search and rescue agencies of one of the
                                                  countries listed in § 740.20(c)(1) or the                  (5) Engine inlets and ducting;                     first sentence of paragraph (b)(1) to read
                                                  United States Government or a person in the                (6) Fatigue life monitoring systems                as follows:
                                                  United States. For ‘‘600 series’’ end items, see        ‘‘specially designed’’ to relate actual usage to
                                                                                                          the analytical or design spectrum and to              § 742.6    Regional stability.
                                                  paragraph (g) of this section. This means that
                                                  exports and reexports to non-governmental               compute amount of fatigue life ‘‘specially               (a) * * *
                                                  end users in a country listed in § 740.20(c)(1)         designed’’ for aircraft controlled by either             (1) RS Column 1 License
                                                  are authorized through License Exception                USML subcategory VIII(a) or ECCN 9A610.a,             Requirements in General. As indicated
                                                  STA under § 740.20(c)(1) so long as the item            except for Military Commercial Derivative             in the CCL and in RS column 1 of the
                                                  at issue at the time of export, reexport, or            Aircraft;
                                                                                                                                                                Commerce Country Chart (see
                                                  transfer (in-country) is ultimately destined               (7) Landing gear, and ‘‘parts’’ and
                                                                                                          ‘‘components’’ ‘‘specially designed’’ therefor,       Supplement No. 1 to part 738 of the
                                                  for either (i) end use by the armed forces,                                                                   EAR), a license is required to all
                                                  police, paramilitary, law enforcement,                  ‘‘specially designed’’ for use in aircraft
                                                  customs, correctional, fire, and search and             weighing more than 21,000 pounds                      destinations, except Canada, for items
                                                  rescue agencies of a government of one of the           controlled by either USML subcategory                 described on the CCL under ECCNs
                                                  § 740.20(c)(1) countries or the United States           VIII(a) or ECCN 9A610.a, except for Military          0A521; 0A606 (except 0A606.y); 0B521;
                                                  Government; or (ii) the ‘‘production’’ or               Commercial Derivative Aircraft;                       0B606 (except 0B606.y); 0C521; 0C606
                                                  ‘‘development’’ of an item for ultimate end                (8) Conformal fuel tanks and ‘‘parts’’ and         (except 0C606.y); 0D521; 0D606 (except
                                                  use by such a government entity in one of the           ‘‘components’’ ‘‘specially designed’’ therefor;       0D606.y); 0E521; 0E606 (except
                                                  § 740.20(c)(1) countries or the United States              (9) Electrical ‘‘equipment,’’ ‘‘parts,’’ and
                                                                                                                                                                0E606.y); 6A002.a.1, a.2, a.3, .c, or .e;
                                                  Government or a person in the United States.            ‘‘components’’ ‘‘specially designed’’ for
                                                                                                          electro-magnetic interference (EMI)—i.e.,             6A003.b.3, and b.4.a; 6A008.j.1;
                                                  This provision does not alter the limitations
                                                  on the use of License Exception STA                     conducted emissions, radiated emissions,              6A998.b; 6D001 (only ‘‘software’’ for the
                                                  contained in § 740.20(b)(2).                            conducted susceptibility and radiated                 ‘‘development’’ or ‘‘production’’ of
                                                                                                          susceptibility—protection of aircraft that            items in 6A002.a.1, a.2, a.3, .c;
                                                  *     *     *     *   *                                 conform to the requirements of MIL–STD–               6A003.b.3 and .b.4; or 6A008.j.1); 6D002
                                                    7. Part 740 is amended by adding a                    461;                                                  (only ‘‘software’’ for the ‘‘use’’ of items
srobinson on DSK4SPTVN1PROD with PROPOSALS




                                                  Supplement No. 4 to read as follows:                       (10) HOTAS (Hand-on Throttle and Stick)            in 6A002.a.1, a.2, a.3, .c; 6A003.b.3 and
                                                                                                          controls, HOCAS (Hands on Collective and              .b.4; or 6A008.j.1); 6D003.c; 6D991 (only
                                                  Supplement No. 4 to Part 740—600                        Stick), Active Inceptor Systems (i.e., a
                                                  Series Items Subject to Limits                                                                                ‘‘software’’ for the ‘‘development,’’
                                                                                                          combination of Active Side Stick Control
                                                  Regarding License Exceptions GOV and                    Assembly, Active Throttle Quadrant                    ‘‘production,’’ or ‘‘use’’ of equipment
                                                  STA                                                     Assembly, and Inceptor Control Unit), rudder          classified under 6A002.e or 6A998.b);
                                                                                                          pedal assemblies for digital flight control           6E001 (only ‘‘technology’’ for
                                                    This supplement lists certain parts and               systems, and parts and components                     ‘‘development’’ of items in 6A002.a.1,
                                                  components that are classified under the .x             ‘‘specially designed’’ therefor;                      a.2, a.3 (except 6A002.a.3.d.2.a and


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                                                                               Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                                                                        68687

                                                  6A002.a.3.e for lead selenide focal plane                                designed’’ or otherwise required for the                                 only if it is the minimum necessary to
                                                  arrays), and .c or .e, 6A003.b.3 and b.4,                                F–14 aircraft will generally be denied.                                  verify that the commodity is acceptable.
                                                  or 6A008.j.1); 6E002 (only ‘‘technology’’                                  * * *                                                                      * * *
                                                  for ‘‘production’’ of items in 6A002.a.1,                                *    *     *     *     *
                                                  a.2, a.3, .c, or .e, 6A003.b.3 or b.4, or                                                                                                         15 CFR PART 774—[AMENDED]
                                                  6A008.j.1); 6E991 (only ‘‘technology’’                                   15 CFR PART 770—[AMENDED]
                                                  for the ‘‘development,’’ ‘‘production,’’ or                                                                                                         14. The authority citation paragraph
                                                  ‘‘use’’ of equipment classified under                                      10. The authority citation paragraph                                   for part 774 continues to read as
                                                  6A998.b); 6D994; 7A994 (only QRS11–                                      for part 774 continues to read as                                        follows:
                                                  00100–100/101 and QRS11–0050–443/                                        follows:                                                                   Authority: 50 U.S.C. app. 2401 et seq.; 50
                                                  569 Micromachined Angular Rate                                             Authority: 50 U.S.C. app. 2401 et seq.; 50                             U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
                                                  Sensors); 7D001 (only ‘‘software’’ for                                   U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,                            7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
                                                  ‘‘development’’ or ‘‘production’’ of                                     3 CFR, 2001 Comp., p. 783; Notice of August                              seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u);
                                                  items in 7A001, 7A002, or 7A003);                                        12, 2011, 76 FR 50661 (August 16, 2011).                                 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C.
                                                  7E001 (only ‘‘technology’’ for the                                                                                                                1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
                                                                                                                           Section 770.2           [Amended]                                        U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
                                                  ‘‘development’’ of inertial navigation                                                                                                            13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
                                                  systems, inertial equipment, and                                           11. Section 770.2 is amended by
                                                                                                                           removing and reserving paragraph (i).                                    228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                                  specially designed components therefor                                                                                                            Comp., p. 783; Notice of August 12, 2011, 76
                                                  for civil aircraft); 7E002 (only                                                                                                                  FR 50661 (August 16, 2011).
                                                                                                                           15 CFR PART 772—[AMENDED]
                                                  ‘‘technology’’ for the ‘‘production’’ of                                                                                                            15. In Supplement No. 1 to part 774,
                                                  inertial navigation systems, inertial                                      12. The authority citation paragraph                                   Category 9, revise Export Control
                                                  equipment, and specially designed                                        for part 772 continues to read as                                        Classification Number 9A018 to read as
                                                  components therefor for civil aircraft);                                 follows:                                                                 follows:
                                                  7E101 (only ‘‘technology’’ for the ‘‘use’’
                                                                                                                             Authority: 50 U.S.C. app. 2401 et seq.; 50
                                                  of inertial navigation systems, inertial                                 U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
                                                                                                                                                                                                    Supplement No. 1 to Part 774—the
                                                  equipment, and specially designed                                        3 CFR, 2001 Comp., p. 783; Notice of August                              Commerce Control List
                                                  components for civil aircraft); 9A610                                    12, 2011, 76 FR 50661 (August 16, 2011).
                                                  (except 9A610.y); 9B610 (except                                                                                                                   *        *         *        *         *
                                                  9B610.y); 9C610 (except 9C610.y);                                        § 772.1       [Amended]                                                  9A018 Equipment on the Wassenaar
                                                  9D610 (except ‘‘software’’ for the                                          13. Section 772.1 is amended by                                       Arrangement Munitions List.
                                                  ‘‘development,’’ ‘‘production’’ operation                                adding in alphabetical order a definition                                   No items currently are in this ECCN. See
                                                  or maintenance of commodities                                            for ‘‘build-to-print technology’’ to read                                ECCN 0A606.b.4 for the ground transport
                                                  controlled by 9A610.y, 9B610.y, or                                       as follows:                                                              vehicles and unarmed all-wheel drive
                                                  9C610.y) and 9E610 (except                                                  * * *                                                                 vehicles that immediately prior to [Insert
                                                  ‘‘technology’’ for the ‘‘development,’’                                     ‘‘Build-to-Print technology’’ is                                      effective date of final rule that moves these
                                                  ‘‘production’’ operation, installation,                                                                                                           vehicles] were classified under 9A018.b. See
                                                                                                                           ‘‘production’’ ‘‘technology’’ that is                                    ECCN 9A610 for the aircraft, aircraft engines,
                                                  maintenance, repair, or overhaul of                                      sufficient for an inherently capable end
                                                  commodities controlled by ECCN                                                                                                                    refuelers, ground equipment, parachute,
                                                                                                                           user to produce or repair a commodity                                    harnesses, instrument flight trainers and
                                                  9A610.y, 9B610.y, or 9C610.y).                                           from engineering drawings without (i)                                    parts and accessories and attachments for the
                                                     * * *                                                                 Revealing ‘‘development’’ ‘‘technology,’’                                forgoing that immediately prior to [Insert
                                                     (b) Licensing policy. (1) * * *                                       such as design methodology,                                              effective date of final rule that moves these
                                                  Applications for export or reexport of                                   engineering analysis, detailed                                           items] were classified under 9A018.a, .c, .d,
                                                  items classified under any ‘‘600 series’’                                manufacturing or process know-how;                                       .e, or .f.
                                                  ECCN listed in paragraph (a)(1) of this                                  (ii) revealing the production engineering                                  16. In Supplement No. 1 to part 774,
                                                  section will also be reviewed in                                         or process improvement aspect of the                                     Category 9, add a new Export Control
                                                  accordance with U.S. arms embargo                                        ‘‘technology;’’ or (iii) requiring                                       Classification Number 9A610 between
                                                  policies and generally will be denied if                                 assistance from the provider of the                                      Export Control Classification Numbers
                                                  destined for a destination in set forth                                  technology to produce or repair the                                      9A120 and 9A980 to read as follows:
                                                  § 740.2(a)(12) of the EAR. Applications                                  commodity. Acceptance, test, or
                                                  for export or reexport of parts,                                         inspection criteria pertaining to the                                    9A610 Military Aircraft and Related
                                                  components, accessories, attachments,                                    commodity at issue is included within                                    Commodities
                                                  software, or technology ‘‘specially                                      the scope of ‘‘build-to-print technology’’                                 Reason for Control: NS, RS, MT, AT

                                                                                                                                     Control(s)                                                                                               Country chart

                                                  NS applies to entire entry except 9A610.l, m, n, and y ............................................................................................................                     NS Column 1.
                                                  RS applies to entire entry except 9A610.y ................................................................................................................................              RS Column 1.
                                                  MT applies to 9A610.l, .m, and .n .............................................................................................................................................         MT Column 1.
                                                  AT applies to entire entry ..........................................................................................................................................................   AT Column 1.
srobinson on DSK4SPTVN1PROD with PROPOSALS




                                                  License Exceptions                                                       of License Exception STA (§ 740.20(c)(1))                                new STA eligibility for ‘‘end items’’ under
                                                    LVS: $1500                                                             may not be used for any ‘‘end item’’ in                                  this ECCN 9A610 as part of an export,
                                                                                                                           9A610, unless determined by BIS to be                                    reexport, or transfer (in-country) license
                                                    GBS: N/A
                                                                                                                           eligible for License Exception STA in                                    application. ‘‘End items’’ under this entry
                                                    CIV: N/A
                                                                                                                           accordance with § 740.20(g) (License                                     that have already been determined to be
                                                    STA: Paragraph (c)(2) of License Exception                             Exception STA eligibility requests for ‘‘600                             eligible for License Exception STA are listed
                                                  STA (§ 740.20(c)(2)) of the EAR may not be                               series’’ end items). See § 740.20(g) for the                             in Supplement No. 4 to part 774 and on the
                                                  used for any item in 9A610. Paragraph (c)(1)                             procedures to follow if you wish to request                              BIS Web site at www.bis.doc.gov.



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                                                  68688                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                     Paragraph (c)(1) of License Exception STA                             modified for military high altitude                                      commodities ‘‘specially designed’’ for a
                                                  (§ 740.20(c)(1)) may be used for items in                                parachutists, such as suits, special helmets,                            military use, as follows:
                                                  9A610.x without the need for a determination                             breathing systems, and navigation                                          y.1. Aircraft tires;
                                                  described in § 740.20(g).                                                equipment.                                                                 y.2. Analog cockpit gauges and indicators;
                                                                                                                              i. Automatic piloting systems for                                       y.3. Audio selector panels;
                                                  List of Items Controlled                                                 parachuted loads; equipment ‘‘specially                                    y.4. Check valves for hydraulic and
                                                     Unit: End items in number; parts,                                     designed’’ for military use for controlled                               pneumatic systems;
                                                  component, accessories and attachments in                                opening jumps at any height, including                                     y.5. Crew rest equipment;
                                                  $ value.                                                                 oxygen equipment.                                                          y.6. Ejection seat mounted survival aids;
                                                     Related Controls: Military aircraft and                                  j. Ground effect machines (GEMS),                                       y.7. Energy dissipating pads for cargo (for
                                                  related articles that are enumerated in USML                             including surface effect machines and air                                pads made from paper or cardboard);
                                                  Category VIII, and technical data (including                             cushion vehicles, ‘‘specially designed’’ for                               y.8. Filters and filter assemblies for
                                                  software) directly related thereto, are subject                          use by a military.                                                       hydraulic, oil and fuel systems;
                                                  to the ITAR. See ECCN 0A919 for foreign-                                    k. Military aircraft instrument flight                                  y.9. Galleys;
                                                  made ‘‘military commodities’’ that                                       trainers that are not ‘‘specially designed’’ to                            y.10. Hydraulic and fuel hoses, straight and
                                                  incorporate more than 10% U.S.-origin ‘‘600                              simulate combat. (See USML Cat IX for                                    unbent lines, fittings, clips, couplings,
                                                  series’’ items.                                                          controls on such trainers that are ‘‘specially                           nutplates, and brackets;
                                                     Items:                                                                designed’’ to simulate combat).                                            y.11. Lavatories;
                                                     a. ‘‘Military Aircraft’’ ‘‘specially designed’’                          l. Apparatus and devices designed or                                    y.12. Life rafts;
                                                  for a military use that are not enumerated in                            modified for the handling, control, activation                             y.13. Magnetic compass, magnetic azimuth
                                                  USML paragraph VIII(a).                                                  or launching of UAVs or drones controlled by                             detector;
                                                     Note 1: For purposes of paragraph .a the                              either USML paragraph VIII(a) or ECCN                                      y.14. Medical litter provisions;
                                                  term ‘‘military aircraft’’ includes the                                  9A610.a, and capable of a range equal to or                                y.15. Mirrors, cockpit;
                                                  following types of aircraft to the extent they                           greater than 300 km.                                                       y.16. Passenger seats including palletized
                                                  were ‘‘specially designed’’ for a military use                              m. Radar altimeters designed or modified
                                                                                                                                                                                                    seats;
                                                  and are not enumerated in USML paragraph                                 for use in UAVs or drones controlled by
                                                                                                                                                                                                      y.17. Potable water storage systems;
                                                  VIII(a): trainer aircraft; cargo aircraft; utility                       either USML paragraph VIII(a) or ECCN
                                                                                                                                                                                                      y.18. Public address (PA) systems;
                                                  fixed wing aircraft; military helicopters;                               9A610.a., and capable of delivering at least
                                                                                                                                                                                                      y.19. Steel brake wear pads (does not
                                                  observation aircraft; military non-expansive                             500 kilograms payload to a range of at least
                                                                                                                                                                                                    include sintered mix or carbon/carbon
                                                  balloons and other lighter than air aircraft                             300 km.
                                                                                                                                                                                                    materials)
                                                  and unarmed military aircraft, regardless of                                n. Hydraulic, mechanical, electro-optical,
                                                                                                                                                                                                      y.20. Underwater beacons;
                                                  origin or designation, manufactured before                               or electromechanical flight control systems
                                                                                                                                                                                                      y.21. Urine collection bags/pads/cups/
                                                  1956 and unmodified since manufacture.                                   (including fly-by-wire systems) and attitude
                                                  Aircraft with modifications made to                                                                                                               pumps;
                                                                                                                           control equipment designed or modified for
                                                  incorporate safety of flight features or other                                                                                                      y.22. Windshield washer and wiper
                                                                                                                           UAVs or drones controlled by either USML
                                                  FAA or NTSB modifications such as                                                                                                                 systems;
                                                                                                                           paragraph VIII(a) or ECCN 9A610.a., and
                                                  transponders and air data recorders are                                  capable of delivering at least 500 kilograms                               y.23. Filtered and unfiltered cockpit panel
                                                  ‘‘unmodified’’ for the purposes of this                                  payload to a range of at least 300 km.                                   knobs, indicators, switches, buttons, and
                                                  paragraph .a.                                                               o. through w. [Reserved]                                              dials;
                                                                                                                              x. ‘‘Parts,’’ ‘‘components,’’ ‘‘accessories and                         y.24. Lead-acid and Nickel-Cadmium
                                                     b. [Reserved].
                                                                                                                           attachments’’ that are ‘‘specially designed’’                            batteries; and
                                                     c. [Reserved].
                                                                                                                           for a commodity subject to control in                                      y.25. Propellers, propeller systems, and
                                                     d. [Reserved].
                                                                                                                           paragraphs .a through .k of this ECCN or a                               propeller blades used with reciprocating
                                                     e. [Reserved].
                                                     f. Pressure refuelers, pressure refueling                             defense article in USML Category VIII and                                engines.
                                                  ‘‘equipment,’’ ‘‘equipment’’ ‘‘specially                                 not elsewhere specified on the USML or the                                 y.26. to y.98. [RESERVED]
                                                  designed’’ to facilitate operations in confined                          CCL.                                                                       y.99. Commodities that would otherwise be
                                                  areas, and ground equipment ‘‘specially                                                                                                           controlled elsewhere in this entry but that (i)
                                                                                                                              Note 1: Forgings, castings, and other                                 Have been determined to be subject to the
                                                  designed’’ for aircraft controlled by either                             unfinished products, such as extrusions and
                                                  USML paragraph VIII(a) or ECCN 9A610.a.                                                                                                           EAR in a commodity jurisdiction
                                                                                                                           machined bodies, that have reached a stage                               determination issued by the U.S. Department
                                                     g. Military crash helmets and protective                              in manufacturing where they are clearly
                                                  masks, pressurized breathing equipment and                                                                                                        of State and (ii) are not otherwise identified
                                                                                                                           identifiable by material composition,                                    elsewhere on the CCL.
                                                  partial pressure suits for use in aircraft                               geometry, or function as commodities
                                                  controlled by either USML paragraph VIII(a)                              controlled by ECCN 9A610.x are controlled
                                                  or ECCN 9A610.a, anti-g suits, liquid oxygen                                                                                                        17. In Supplement No. 1 to part 774,
                                                                                                                           by ECCN 9A610.x.
                                                  converters ‘‘specially designed’’ for aircraft                                                                                                    Category 9, add a new Export Control
                                                  controlled by either USML subcategory                                       Note 2: ‘‘Parts,’’ ‘‘components,’’                                    Classification Number 9B610 between
                                                  VIII(a) or ECCN 9A610.a, and catapults and                               ‘‘accessories and attachments’’ specified in                             Export Control Classification Numbers
                                                  cartridge actuated devices for emergency                                 USML subcategory VIII(f) or VIII(h) are                                  9B117 and 9B990 to read as follows:
                                                  escape of personnel from aircraft controlled                             subject to the controls of that paragraph.
                                                  by either USML subcategory VIII(a) or ECCN                               ‘‘Parts,’’ ‘‘components,’’ ‘‘accessories and                             9B610 Test, Inspection, and Production
                                                  9A610.a.                                                                 attachments’’ specified in ECCN 9A610.y are                              ‘‘Equipment’’ and Related Commodities
                                                     h. Canopies, harnesses, platforms,                                    subject to the controls of that paragraph.                               ‘‘Specially Designed’’ for the ‘‘Development’’
                                                  electronic release mechanisms ‘‘specially                                   y. Specific ‘‘parts,’’ ‘‘components,’’                                or ‘‘Production’’ of Commodities
                                                  designed’’ for use with aircraft controlled by                           ‘‘accessories and attachments’’ ‘‘specially                              Enumerated in ECCN 9A610 or USML
                                                  either USML paragraph VIII(a) or ECCN                                    designed’’ for a commodity subject to control                            Category VIII.
                                                  9A610.a, parachutes and paragliders                                      in this ECCN or a defense article in USML
                                                  ‘‘specially designed’’ or modified for military                          Category VIII and not elsewhere specified in                             License Requirements
srobinson on DSK4SPTVN1PROD with PROPOSALS




                                                  use, and ‘‘equipment’’ ‘‘designed’’ or                                   the USML or the CCL, and other aircraft                                    Reason for Control: NS, RS, MT, AT

                                                                                                                                     Control(s)                                                                                              Country chart

                                                  NS applies to entire entry except 9B610.c and 9B610.y ..........................................................................................................                        NS Column 1.
                                                  RS applies to entire entry except 9B610.y ................................................................................................................................              RS Column 1.
                                                  MT applies to 9B610.c ...............................................................................................................................................................   MT Column 1.
                                                  AT applies to entire entry ..........................................................................................................................................................   AT Column 1.



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                                                                               Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules                                                                                       68689

                                                  License Exceptions                                                       ‘‘parts,’’ ‘‘components,’’ ‘‘accessories and                               y.99. Commodities that would otherwise be
                                                     LVS: $1500                                                            attachments’’ ‘‘specially designed’’ therefor.                           controlled elsewhere in this entry but that (i)
                                                                                                                              b. Environmental test facilities designed or                          have been determined to be subject to the
                                                     GBS: N/A
                                                                                                                           modified for the certification, qualification,                           EAR in a commodity jurisdiction
                                                     CIV: N/A                                                              or testing of commodities enumerated in                                  determination issued by the U.S. Department
                                                     STA: Paragraph (c)(2) of License Exception                            ECCN 9A610 (except for 9A610.y) or USML                                  of State and (ii) are not otherwise identified
                                                  STA (§ 740.20(c)(2)) of the EAR may not be                               Category VIII and ‘‘parts,’’ ‘‘components,’’                             elsewhere on the CCL.
                                                  used for any item in 9B610. Paragraph (c)(1)                             ‘‘accessories and attachments’’ ‘‘specially
                                                  of License Exception STA (§ 740.20(c)(1))                                designed’’ therefor.                                                       18. In Supplement No. 1 to part 774,
                                                  may be used for items in 9A610.x without the                                c. ‘‘Production facilities’’ ‘‘specially                              Category 9, add a new Export Control
                                                  need for a determination described in                                    designed’’ for UAVs or drones that are (i)                               Classification Number 9B610 between
                                                  § 740.20(g).                                                             controlled by either USML paragraph VIII(a)
                                                                                                                           or ECCN 9A610.a and (ii) capable of a range                              Export Control Classification Numbers
                                                  List of Items Controlled                                                 equal to or greater than 300 km.                                         9C110 and the product group header
                                                                                                                              d. through x. [RESERVED]                                              that reads ‘‘D. Software’’ to read as
                                                     Unit: N/A
                                                     Related Controls:                                                        y. Specific test, inspection, and production                          follows:
                                                                                                                           ‘‘equipment’’ ‘‘specially designed’’ for the
                                                     Related Definitions: N/A
                                                                                                                           ‘‘production’’ or ‘‘development’’ of                                     9C610 Materials ‘‘Specially Designed’’ for
                                                     Items:                                                                commodities enumerated in ECCN 9A610                                     Commodities Controlled by 9A610 not
                                                     a. Test, inspection, and production                                   (except for 9A610.y) or USML Category VIII                               Elsewhere Specified in the CCL or the
                                                  ‘‘equipment’’ ‘‘specially designed’’ for the                             and ‘‘parts,’’ ‘‘components,’’ ‘‘accessories and                         USML.
                                                  ‘‘production’’ or ‘‘development’’ of                                     attachments’’ ‘‘specially designed’’ therefor,
                                                  commodities enumerated in ECCN 9A610                                     as follows:                                                              License Requirements
                                                  (except 9A610.y) or USML Category VIII, and                                 y.1. through y.98 [RESERVED]                                            Reason for Control: NS, RS, AT

                                                                                                                                     Control(s)                                                                                              Country chart

                                                  NS applies to entire entry except 9C610.y ................................................................................................................................              NS Column 1.
                                                  RS applies to entire entry except 9C610.y ................................................................................................................................              RS Column 1.
                                                  AT applies to entire entry ..........................................................................................................................................................   AT Column 1.



                                                  License Exceptions                                                         Note 2: Materials ‘‘specially designed’’ for                           effective date of final rule that moves these
                                                    LVS: $1500                                                             an aircraft enumerated in USML Category                                  vehicles] were classified under 9A018.b. See
                                                    GBS: N/A                                                               VIII and for an aircraft enumerated in ECCN                              ECCN 9D610 for ‘‘software’’ related to the
                                                    CIV: N/A                                                               9A610 are subject to the controls of this                                aircraft, refuelers, ground equipment,
                                                                                                                           ECCN.                                                                    parachute, harnesses, instrument flight
                                                    STA: Paragraph (c)(2) of License Exception
                                                  STA (§ 740.20(c)(2)) of the EAR may not be                                 b. to .x. [RESERVED]                                                   trainers, and parts and accessories and
                                                  used for any item in 9C610.                                                y. Specific materials ‘‘specially designed’’                           attachments for the forgoing that immediately
                                                                                                                           for commodities enumerated in ECCN 9A610                                 prior to [Insert effective date of final rule that
                                                  List of Items Controlled                                                 (except for 9A610.y), as follows:                                        moves these items] were classified under
                                                    Unit: N/A                                                                y.1. through y.98 [RESERVED]                                           9A018.a, .c, .d, .e, or .f.
                                                    Related Controls: USML subcategory XIII(f)                               y.99. Materials that would otherwise be
                                                  controls structural materials specifically                               controlled elsewhere in this entry but that (i)                            20. In Supplement No. 1, Category 9,
                                                                                                                           have been determined to be subject to the
                                                  designed, developed, configured, modified,                                                                                                        add a new Export Control Classification
                                                  or adapted for defense articles, such as USML                            EAR in a commodity jurisdiction
                                                                                                                           determination issued by the U.S. Department                              Number 9D610 between Export Control
                                                  subcategory VIII(a) aircraft. See ECCN 0A919                                                                                                      Classification Numbers 9D105 and
                                                                                                                           of State and (ii) are not otherwise identified
                                                  for foreign made ‘‘military commodities’’ that                                                                                                    9D990 to read as follows:
                                                                                                                           elsewhere on the CCL.
                                                  incorporate more than 10% U.S.-origin ‘‘600
                                                  series’’ items.                                                            19. In Supplement No. 1, Category 9,                                   9D610 ‘‘Software’’ ‘‘Specially Designed’’
                                                    Related Definitions: N/A                                               revise Export Control Classification                                     for the ‘‘Development,’’ ‘‘Production’’
                                                    Items:                                                                 Number 9D018 to read as follows:                                         Operation Installation, Maintenance, Repair,
                                                    a. Materials ‘‘specially designed’’ for                                                                                                         Overhaul or Refurbishing of Military
                                                  commodities enumerated in ECCN 9A610                                     9D018 ‘‘Software’’ for the ‘‘use’’ of                                    Aircraft and Related Commodities
                                                  (except 9A610.y) not elsewhere specified in                              Equipment Controlled by 9A018.                                           Controlled by 9A610, Equipment Controlled
                                                  the USML or the CCL.                                                       No items currently are in this ECCN. See                               by 9B610, or Materials Controlled by 9C610
                                                    Note 1: Materials enumerated elsewhere in                              ECCN [Insert appropriate Category 0 ECCN]                                as Follows (See List of Items Controlled).
                                                  the CCL, such as in a CCL Category 1 ECCN,                               for ‘‘software’’ related to the ground transport
                                                  are controlled pursuant to controls of the                               vehicles and unarmed all-wheel drive                                     License Requirements
                                                  applicable ECCN.                                                         vehicles that immediately prior to [Insert                                  Reason for Control: NS, RS, MT, AT

                                                                                                                                     Control(s)                                                                                              Country chart

                                                  NS applies to 9D610.a ...............................................................................................................................................................   NS Column 1.
                                                  RS applies to 9D610.a and .b ...................................................................................................................................................        RS Column 1.
                                                  MT applies to 9D610.c ...............................................................................................................................................................   MT Column 1.
srobinson on DSK4SPTVN1PROD with PROPOSALS




                                                  AT applies to entire entry ..........................................................................................................................................................   AT Column 1.



                                                  License Exceptions                                                         STA: Paragraph (c)(2) of License Exception                             of License Exceptions GOV (other than those
                                                     CIV: N/A                                                              STA (§ 740.20(c)(2))of the EAR may not be                                provisions authorizing exports and reexports
                                                     TSR: N/A                                                              used for any ‘‘software’’ in 9D610.                                      to personnel and agencies for the U.S.
                                                                                                                             Note to License Exceptions Section:                                    government) and STA with respect to
                                                                                                                           Supplement No. 4 to part 740 precludes use                               ‘‘development’’ and ‘‘production’’ ‘‘software’’



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                                                  68690                        Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules

                                                  for specific types of ‘‘parts’’ and                                      ‘‘production,’’ operation, installation,                                 ground transport vehicles and unarmed all-
                                                  ‘‘components’’ controlled by ECCN 9A610.x.                               maintenance, repair, overhauling or                                      wheel drive vehicles that immediately prior
                                                  and identified in the supplement.                                        refurbishing of commodities controlled by                                to [Insert effective date of final rule that
                                                                                                                           ECCN 9A610.l, .m, or .n; or ECCN 9B610.c                                 moves these vehicles] were classified under
                                                  List of Items Controlled                                                    d. to x. [RESERVED]                                                   9A018.b. See ECCN 9E610 for technology
                                                     Unit: $ value                                                            y. Specific ‘‘software’’ ‘‘specially designed’’                       related to the aircraft, refuelers, ground
                                                     Related Controls: ‘‘Software’’ directly                               for the ‘‘production,’’ ‘‘development,’’ or                              equipment, parachute, harnesses, instrument
                                                  related to articles enumerated in USML                                   operation or maintenance of commodities
                                                                                                                                                                                                    flight trainers and parts and accessories and
                                                  Category VIII is subject to the control of                               enumerated in ECCN 9A610, 9B610, or
                                                                                                                           9C610, as follows:                                                       attachments for the forgoing that immediately
                                                  USML paragraph VIII(i). See ECCN 0A919 for
                                                                                                                              y.1. Specific ‘‘software’’ ‘‘specially                                prior to [Insert effective date of final rule that
                                                  foreign made ‘‘military commodities’’ that
                                                  incorporate more than 10% U.S.-origin ‘‘600                              designed’’ for the ‘‘production,’’                                       moves these items] were classified under
                                                  series’’ items.                                                          ‘‘development,’’ operation or maintenance of                             9A018.a, .c, .d, .e, or .f.
                                                     Related Definitions: N/A                                              commodities enumerated in ECCN 9A610.y,
                                                     Items:                                                                9B610.y, or 9C610.y.                                                       22. In Supplement No. 1, Category 9,
                                                     a. ‘‘Software’’ (other than software                                     y.2 through y.98 [RESERVED]                                           add a new Export Control Classification
                                                  controlled in paragraph .y of this entry)                                   y.99. Software that would otherwise be                                Number 9E610 between Export Control
                                                  ‘‘specially designed’’ for the ‘‘development,’’                          controlled elsewhere in this entry but that (i)                          Classification Numbers 9E102 and
                                                  ‘‘production,’’ operation or maintenance of                              has been determined to be subject to the EAR                             9E990 to read as follows:
                                                  commodities controlled by ECCN 9A610                                     in a commodity jurisdiction determination
                                                  (except 9A610.l, .m, .n, or .y), ECCN 9B610                              issued by the U.S. Department of State and                               9E610 Technology ‘‘Required’’ for the
                                                  (except 9B610.c or .y), or ECCN 9C610                                    (ii) is not otherwise identified elsewhere on                            ‘‘Development,’’ ‘‘Production,’’ Operation,
                                                  (except 9C610.y).                                                        the CCL.                                                                 Installation, Maintenance, Repair, Overhaul
                                                     b. ‘‘Software’’ (other than software                                                                                                           or Refurbishing of Military Aircraft and
                                                                                                                             21. In Supplement No. 1, Category 9,                                   Related Commodities Controlled by 9A610,
                                                  controlled in paragraph .y of this entry)
                                                                                                                           revise Export Control Classification                                     Equipment Controlled by 9B610, Materials
                                                  ‘‘specially designed’’ for the ‘‘development,’’
                                                  ‘‘production,’’ operation or maintenance of                              Number 9E018 to read as follows:                                         Controlled by 9C610, or ‘‘Software’’
                                                  commodities controlled by ECCN 9A610.l,                                                                                                           Controlled by 9D610 as Follows (See List of
                                                  .m, or .n; or ECCN 9B610.c.                                              9E018 Technology for the ‘‘use’’ of                                      Items Controlled).
                                                     c. Software’’ (other than software                                    Equipment Controlled by 9A018.
                                                  controlled in paragraph .y of this entry)                                  No items currently are in this ECCN. See                               License Requirements
                                                  ‘‘specially designed’’ for the ‘‘development,’’                          ECCN 0E606 for technology related to the                                    Reason for Control: NS, RS, MT, AT

                                                                                                                                     Control(s)                                                                                              Country chart

                                                  NS applies to technology as described in paragraph .a of this entry for commodities and software that are controlled for                                                                NS Column 1.
                                                    NS reasons in ECCNs 9A610, 9B610, 9C610 or 9D610.
                                                  RS applies to technology as described in paragraph .a of this entry for commodities and software controlled for RS rea-                                                                 RS Column 1.
                                                    sons in 9A610, 9B610, 9C610 or 9D610.
                                                  MT applies to technology as described in paragraph .a of this entry for commodities and software controlled for MT rea-                                                                 MT Column 1.
                                                    sons in ECCNs 9A610, 9B610 or 9D610.
                                                  AT applies to entire entry ..........................................................................................................................................................   AT Column 1.



                                                  License Exceptions                                                       ‘‘required’’ for the ‘‘development,’’                                      Dated: October 28, 2011.
                                                     CIV: N/A                                                              ‘‘production,’’ operation, installation,                                 Kevin J. Wolf,
                                                     TSR: N/A                                                              maintenance, repair, overhaul, or                                        Assistant Secretary for Export
                                                     STA: Paragraph (c)(2) of License Exception                            refurbishing of commodities or software                                  Administration.
                                                  STA (§ 740.20(c)(2)) of the EAR may not be                               controlled by ECCN 9A610, 9B610, 9C610 or                                [FR Doc. 2011–28504 Filed 11–4–11; 8:45 am]
                                                  used for any technology in 9E610.                                        9D610.
                                                                                                                                                                                                    BILLING CODE 3510–33–P
                                                     Note to License Exceptions Section:                                      b. through x. [RESERVED]
                                                  Supplement No. 4 to part 740 limits use of                                  y. Specific ‘‘technology’’ ‘‘required’’ for the
                                                  License Exceptions GOV (other than those                                 ‘‘production,’’ ‘‘development,’’ operation,
                                                  provisions authorizing exports and reexports                             installation, maintenance, repair, or overhaul                           FEDERAL TRADE COMMISSION
                                                  to personnel and agencies for the US                                     of commodities enumerated in ECCN 9A610,
                                                  government) and STA with respect to                                      9B610, 9C610, or 9D610, as follows:
                                                                                                                                                                                                    16 CFR Part 303
                                                  ‘‘development’’ and ‘‘production’’                                          y.1. Specific ‘‘technology’’ ‘‘required’’ for
                                                  ‘‘technology’’ for specific types of ‘‘parts’’                                                                                                    Rules and Regulations Under the
                                                                                                                           the ‘‘production,’’ ‘‘development,’’ operation,
                                                  and ‘‘components’’ controlled by ECCN                                                                                                             Textile Fiber Products Identification
                                                  9A610.x. and identified in the supplement                                installation, maintenance, repair or overhaul
                                                                                                                                                                                                    Act
                                                  other than ‘‘build-to-print technology.’’                                of commodities enumerated in ECCN
                                                                                                                           9A610.y, 9B610.y, 9C610.y, or 9D610.y.                                   AGENCY:   Federal Trade Commission
                                                  List of Items Controlled                                                    y.2. through y.98 [RESERVED]                                          (‘‘FTC’’ or ‘‘Commission’’).
                                                    Unit: $ value                                                             y.99. ‘‘Technology’’ that would otherwise                             ACTION: Advance notice of proposed
                                                    Related Controls: Technical data directly                              be controlled elsewhere in this entry but that                           rulemaking; request for public
                                                  related to articles enumerated in USML                                   (i) has been determined to be subject to the
srobinson on DSK4SPTVN1PROD with PROPOSALS




                                                                                                                                                                                                    comment.
                                                  Category VIII are subject to the control of                              EAR in a commodity jurisdiction
                                                  USML paragraph VIII(i). See ECCN 0A919 for                               determination issued by the U.S. Department                              SUMMARY:   The Commission
                                                  foreign made ‘‘military commodities’’ that                               of State and (ii) is not otherwise identified                            systematically reviews all its rules and
                                                  incorporate more than 10% U.S.-origin ‘‘600                              elsewhere on the CCL.
                                                  series’’ items.                                                                                                                                   guides to ensure that they continue to
                                                    Related Definitions: N/A                                                                                                                        achieve their intended purpose without
                                                    Items:                                                                                                                                          unduly burdening commerce. As part of
                                                    a. ‘‘Technology’’ (other than technology                                                                                                        this systematic review, the Commission
                                                  controlled by paragraph .y of this entry)                                                                                                         requests public comment on the overall


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