PART 750
        APPLICATION PROCESSING,  ISSUANCE AND/OR DENIAL
Sec.                                                         Page
750.1                    Scope . . . . . . . . . . . . . . . . .1
750.2                    Processing of Classification Requests and Advisory Opinions1
750.3                    Review of license applications by BIS and other government agencies
           and departments . . . . . . . . . . . . . . . . . . .1
750.4                    Procedures for processing license applications2
750.5                    Status on pending applications and other requests5
750.6                    Denial of license applications. . . . .6
750.7                    Issuance of licenses. . . . . . . . . .6
750.8                    Revocation or suspension of licenses. 10
750.9                    Duplicate licenses. . . . . . . . . . 11
750.10                   Transfer of licenses for exports. . . 11
750.11                   Shipping tolerances . . . . . . . . . 13                             750.1
                             SCOPE
In this part, references to the EAR are references
to 15 CFR chapter VII, subchapter C.  This part
describes the Bureau of Industry and Security's
(BIS) process for reviewing your application for
a license and the applicable processing times for
various types of applications.  Information related
to the issuance, denial, revocation, or suspension
of a license or license application is provided
along with the procedures on obtaining a
duplicate or replacement license, the transfer of a
license and shipping tolerances available on
licenses.  This part also contains instructions on
obtaining the status of any pending application.
                             750.2
                  PROCESSING OF CLASSIFICATION
                 REQUESTS AND ADVISORY OPINIONS
                  (a)  Classification requests
All classification requests submitted in
accordance with procedures described in
748.3(a) and (b) of the EAR will be answered
within 14 calendar days after receipt.  All
responses will inform the person of the proper
classification (e.g., whether or not the item is
subject to the Export Administration Regulations
(EAR) and, if applicable, the appropriate Export
Control Classification Number [ECCN]).
                 (b)  Advisory Opinion requests
All advisory opinions submitted in accordance
with procedures described in 748.3(a) and (c) of
the EAR will be answered within 30 calendar
days after receipt.  Requests to obtain Validated
End-User authorization will be resolved within 30
calendar days as described in Supplement No. 9
to Part 748 of the EAR.
                             750.3
                 REVIEW OF LICENSE APPLICATIONS
                  BY BIS AND OTHER GOVERNMENT
                    AGENCIES AND DEPARTMENTS
                       (a)  Review by BIS
In reviewing specific license applications, BIS
will conduct a complete analysis of the license
application along with all documentation
submitted in support of the application.  In
addition to reviewing the item and end-use, BIS
will consider the reliability of each party to the
transaction and review any available intelligence
information.  To the maximum extent possible,
BIS will make licensing decisions without referral
of license applications to other agencies,
however, BIS may consult with other U.S. depart-
ments and agencies regarding any license
application.
          (b)  Review by other departments or agencies
(1)  The Departments of Defense, Energy, State,
and the Arms Control and Disarmament Agency
(ACDA) have the authority to review any license
application submitted under the EAR.  In
addition, BIS may, where appropriate, refer
license applications to other U.S. government
departments or agencies.   These agencies and
departments will be referred to as "agencies" for
the purposes of this part.  Though these agencies
have the authority to review any license
application, they may determine that they do not
need to review certain types of license
applications.  In these instances, the agency will
provide BIS with a Delegation of Authority to
process those license applications without review
by that particular agency.
(2)  The Departments of Defense, Energy, State,
and ACDA are generally concerned with license
applications involving items controlled for
national security, missile technology, nuclear
nonproliferation, and chemical and biological
weapons proliferation reasons or destined for
countries and/or end uses of concern.  In
particular, these agencies are concerned with
reviewing license applications as follows:
     (i)  The Department of Defense is concerned
primarily  with items controlled for national
security and regional stability reasons and with
controls related to encryption items;
     (ii)  The Department of Energy is concerned
primarily with items controlled for nuclear
nonproliferation reasons;
     (iii)  The Department of State is concerned
primarily with items controlled for national
security, nuclear nonproliferation, missile
technology, regional stability, anti-terrorism,
crime control reasons, and sanctions; and
     (iv)  The Department of Justice is concerned
with controls relating to encryption items and
items primarily useful for the surreptitious
interception of wire, oral, or electronic
communications.
                             750.4
                   PROCEDURES FOR PROCESSING
                      LICENSE APPLICATIONS
                         (a)  Overview
(1)  All license applications will be resolved or
referred to the President no later than 90 calendar
days from the date of BIS's registration of the
license application.  Processing times for the
purposes of this section are defined in calendar
days.  The procedures and time limits described in
this part apply to all license applications
registered on or after February 4, 1996.  The
procedures and time limits in effect prior to
December 6, 1995 will apply to license
applications registered prior to February 4, 1996.
(2) Properly completed license applications will
be registered promptly upon receipt by BIS.
Registration is defined as the point at which the
application is entered into BIS's electronic license
processing system.  If your application contains
deficiencies that prevent BIS from registering
your application, BIS will attempt to contact you
to correct the deficiencies, however, if BIS is
unable to contact you, the license application will
be returned without being registered.  The
specific deficiencies requiring return will be
enumerated in a notice accompanying the
returned license application.  If a license
application is registered, but BIS is unable to
correct deficiencies crucial to processing the
license application, it will be returned without
action.  The notice will identify the deficiencies
and the action necessary to correct the
deficiencies.  If you decide to resubmit the license
application, it will be treated as a new license
application when calculating license processing
time frames.
          (b) Actions not included in processing time
                          calculations
The following actions will not be counted in the
time period calculations described in paragraph
(a)(1) of this section for the processing of license
applications:
(1)  Agreement by the applicant to the delay.
BIS may request applicants to provide additional
information in support of their license
application, respond to questions arising during
processing, or accept proposed conditions or
riders on their license application.  If BIS has
provided the applicant with an intent to deny
letter described in 750.6 of this part, processing
times may be suspended in order to negotiate
modifications to a license application and obtain
agreement to such modifications from the foreign
parties to the license application.
(2)  Pre-license checks.  If a pre-license check, to
establish the identity and reliability of the
recipient of the controlled items, is conducted
through government channels,  provided that:
     (i)  The need for such a pre-license check is
established by the Secretary, or by another a-
gency, if the request for a pre-license check is
made by such agency and the request is made in
accordance with the following time frames;
          (A)  The pre-license check is requested within
5 days of the determination that it is necessary;
and
          (B)  The analysis resulting from the pre-
license check is completed within 5 days.
(3)  Government-to-Government assurances.
Requests for government-to-government
assurances of suitable end-use of items approved
for export or reexport when failure to obtain such
assurances would result in rejection of the license
application, provided that:
     (i)  The request for such assurances is sent to
the Secretary of State within five days of the
determination that the assurances are required;
     (ii)  The Secretary of State initiates the request
of the relevant government within 10 days of
receipt of the request for such assurances; and
     (iii)  The license is issued within 5 days of the
Secretary's receipt of the requested assurances.
(4)  Consultations.  Consultation with other
governments, if such consultation is provided for
by a relevant bilateral arrangement or multilateral
regime as a precondition for approving a license.
(5)  Multilateral reviews.  Multilateral review of
a license application if such review is required by
the relevant multilateral regime.
(6)  Congressional notification.  Under Section
6(j) of the Export Administration Act, as
amended (EAA), the Secretaries of Commerce
and State are required to notify appropriate
Committees of the Congress 30 days prior to
issuing a license to any country designated by the
Secretary of State as being terrorist-supporting for
any items that could make a significant
contribution to the military potential of such
countries, or could enhance the ability of such
countries to support acts of international
terrorism.  Accordingly, the issuance of any
license subject to this requirement will be delayed
for 30 days.
     (i)  Designated countries. The following
countries have been designated by the Secretary
of State as terrorist-supporting countries: Cuba,
Iran, North Korea, Sudan, and Syria.
     (ii)  Items subject to notification requirement.
License applications involving the export or
reexport of the following items to the military,
police, intelligence or other sensitive end-users
are subject to this notification requirement:
          (A)  All items controlled for national security
reasons;
          (B)  All items controlled for chemical and
biological weapons proliferation reasons;
          (C)  All items controlled for missile
technology reasons;
          (D)  All items controlled for nuclear
nonproliferation reasons; and
          (E)  All items controlled by the CCL where
the entry heading identifies the items controlled
as those contained in the Wassenaar Arrangement
Munitions List.
     (iii)  Additional notifications.  The Secretaries
of Commerce and State must also notify the
appropriate Congressional committees 30 days
before a license is issued for the export or
reexport of any item controlled on the CCL to a
designated country if the Secretary of State
determines that the export or reexport "could
make a significant contribution to the military
potential of such country, including its military
logistics capability, or could enhance the ability
of such country to support acts of international
terrorism."
                     (c) Initial processing
Within 9 days of license application registration,
BIS will, as appropriate:
(1) Contact the applicant if additional information
is required, if the license application is
improperly completed, or required support
documents are missing, to request additional or
corrected information;
(2)  Assure the stated classification on the license
application is correct;
(3)  Return the license application if a license is
not required with a statement notifying the
applicant that a license is not required;
(4)  Approve the license application or notify the
applicant of the intent to deny the license
application; or
(5)  Refer the license application electronically
along with all necessary recommendations and
analysis concurrently to all  agencies unless the
application is subject to a Delegation of
Authority.  Any relevant information not
contained in the electronic file will be
simultaneously forwarded in paper copy.
              (d)  Review by other agencies and/or
                       interagency groups
(1) Within 10 days of receipt of a referral the
reviewing agency must advise BIS of any
information not contained in the referral as
described in paragraph (c)(5) of this section.  BIS
will promptly request such information from the
applicant.  The time that elapses between the date
the information is requested by the reviewing
agency and the date the information is received by
the reviewing agency will not be counted in
processing time frames.
(2)  Within 30 days of receipt of the initial
referral, the reviewing agency will provide BIS
with a recommendation either to approve (with or
without conditions or riders) or deny the license
application. As appropriate, such a
recommendation may be made with the benefit of
consultation and/or discussions in interagency
groups established to provide expertise and
coordinate interagency consultation. These
interagency groups consist of:
     (i)  The Missile Technology Export Control
Group (MTEC).  The MTEC, chaired by the
Department of State, reviews license applications
involving items controlled for missile technology
reasons.  The MTEC also reviews license
applications involving items not controlled for
missile technology (MT) reasons, but destined for
a country and/or end-use/end-user of MT concern.
     (ii) The SubGroup on Nuclear Export
Coordination (SNEC).  The SNEC, chaired by the
Department of State, reviews license applications
involving items controlled for nuclear
nonproliferation reasons.  The SNEC also reviews
license applications involving items not
controlled for nuclear nonproliferation (NP)
reasons, but destined for a country and/or end
use/end-user of NP concern.
     (iii)  The Shield.  The Shield, chaired by the
Department of State, reviews license applications
involving items controlled for chemical and
biological weapons reasons.  The Shield also
reviews license applications involving items not
controlled for chemical and biological weapons
(CBW) reasons, but destined for a country and/or
end-use/end-user of CBW concern.
           (e)  Recommendations by reviewing agencies
Reviewing  agencies recommending denial of a
license application must provide a statement of
reasons, consistent with the provisions of the
EAA or EAR, and cite both the statutory and the
regulatory basis for the recommendation to deny.
A reviewing agency that fails to provide a
recommendation within 30 days with a statement
of reasons supported by the statutory and
regulatory basis shall be deemed to have no
objection to the final decision of BIS.
            (f)  Interagency dispute resolution and
                     escalation procedures
(1)  Escalation to the Operating Committee
(OC).
           (i)  In any instance where the reviewing
agencies are not in agreement on final disposition
of a license application, it will be escalated to the
OC for resolution.  The Chair of the OC will
consider the recommendations of the reviewing
agencies and any information provided by the
applicant in person during an open OC session.
Each agency will be informed of the Chair's
decision on the license application within 14 days
after the deadline for receiving agency
recommendations.
     (ii)  If any agency disagrees with the OC
Chair's decision, the agency may escalate the
decision by appealing to the Chair of the
Advisory Committee on Export Policy for
resolution.  If such a request for escalation is not
made within 5 days of the decision of the OC
Chair, the chair's decision  will be final.
(2)  Escalation to the Advisory Committee on
Export Policy (ACEP).  Requests for escalation
to the ACEP must be in writing from an official
appointed by the President with the advice and
consent of the Senate, or a person properly acting
in such capacity, and cite both the statutory and
the regulatory basis for the appeal.  The ACEP
will review all relevant information and
recommendations.  The Chair of the ACEP will
inform the reviewing agencies of the majority
vote decision of the ACEP within 11 days from
the date of receipt of the escalation request.
Within 5 days of the decision, any dissenting
agency may appeal in writing the ACEP's
decision to the Secretary of Commerce in the
Secretary's capacity as the Chair of the Export
Administration Review Board.  The written
request must be made by the head of the agency
requesting escalation and cite both the statutory
and the regulatory basis for the appeal.  Within
the same period of time, the Secretary may
initiate a meeting on his or her own initiative to
consider a license application.  In the absence of
a timely appeal, the decision of the ACEP will be
final.
(3)  Escalation to the Export Administration
Review Board (EARB).  The EARB will review
all relevant information and recommendations,
and such other export control matters as may be
appropriate.  The Secretary of Commerce will
inform the reviewing agencies of the majority
vote decision of the EARB within 11 days from
the date of receipt of the appeal.  Within 5 days of
the decision, any agency dissenting from the
decision of the EARB may appeal the decision to
the President.  The appeal must be in writing from
the head of the dissenting agency.  In the absence
of a timely appeal, the decision of the EARB will
be final.
                             750.5
                 STATUS OF PENDING APPLICATIONS
                       AND OTHER REQUESTS
                   (a)  Information available
You may contact BIS for status of your pending
Classification Request, Advisory Opinion, or
license application.  For Advisory Opinion
requests, telephone (202) 482-4905 or send a fax
to (202) 219-9179.  For license applications and
Classification Requests, telephone BIS's System
for Tracking Export License Applications
(STELA) at (202) 482-2752.  STELA is an
automated voice response system, that upon
request via any standard touch-tone telephone,
will provide you with up to the minute status on
any application pending at BIS.  Press "0" on
your keypad for online instructions or "9" for the
letter "Z".  Requests for status may be made only
by the applicant or the applicant's agent.
                       (b)  STELA's hours
STELA is operational Monday through Friday
from 7:15 am to 11:15 pm and on Saturday from
8:00 am to 4:00 pm, Eastern Time.  If you have
any difficulty accessing STELA, contact during
normal business hours, one of BIS's offices listed
in 748.2(a) of the EAR.
            (c)  Procedures to access information on
                             STELA
Once you dial STELA you will be instructed to
enter your Application Control Number using
your push button telephone keys.  After you enter
the Application Control Number, STELA will
provide you with the current status of your license
application or Classification request.
                            750.6
                 DENIAL OF LICENSE APPLICATIONS
                (a)  Intent to deny notification
If BIS intends to deny your license application,
BIS will notify you in writing within 5 days of the
decision.  The notification will include:
(1)  The intent to deny decision;
(2)  The statutory and regulatory basis for the
denial;
(3)  To the extent consistent with the national
security and foreign policy of the United States,
the specific considerations that led to the decision
to deny the license application;
(4)  What, if any, modifications or restrictions to
the license application would allow BIS to
reconsider the license application;
(5)  The name of the BIS representative in a
position to discuss the issues with the applicant;
and
(6)  The availability of appeal procedures.
          (b)  Response to intent to deny notification
You will be allowed 20 days from the date of the
notification to respond to the decision before the
license application is denied.  If you respond to
the notification, BIS will advise you if, as a result
of your response, the decision to deny has been
changed.  Unless you are so advised by the 45th
day after the date of the notification, the denial
will become final, without further notice.  You
will then have 45 days from the date of final
denial to exercise the right to appeal under part
756 of the EAR.
                             750.7
                      ISSUANCE OF LICENSES
                           (a)  Scope
A license authorizes only a specific transaction,
or series of transactions, as described in the
license application and any supporting
documents.  A license application may be
approved in whole or in part or further limited by
conditions or other restrictions appearing on the
license itself or in the EAR.  When a license
application is approved by BIS, a license is issued
as described in paragraph (b) of this section.
                   (b)  Issuance of a license
After a license application is approved, a
computer generated license is issued by the
Department of Commerce bearing the license
number and a validation date.  Where appropriate,
the license will also show an expiration date.
Where necessary, attachments to a license will
also be validated with the Department of
Commerce seal and the date of validation.
Exporters must use the complete license number
when preparing a Shipper's Export Declaration
(SED) or Automated Export System (AES) record
and other export control documents, and in
communicating with the Department of
Commerce concerning the license.
                  (c)  Changes to the license
(1) The following non-material changes do not
require submission of a "Replacement" license or
any other notification to BIS. (If you wish to
make any change not identified in this paragraph,
you will need to submit a "Replacement" license
in accordance with the instructions contained in
Supplement No. 1 to part 748 of the EAR Block
11):
     (i)  Decrease in unit price or total value;
     (ii)  Increase in price or quantity if permitted
under the shipping tolerances in 750.11 of this
part;
     (iii)  Increase in price that can be justified on
the basis of changes in point of delivery, port of
export, or as a result of transportation cost,
drayage, port charges, warehousing, currency
fluctuations, etc.;
     (iv)  Establishment of unit or total price in
conformance with a "price  statement" on a
license that permits price to be based on the
market price at a specified date plus an exporter's
mark-up, or like basis;
     (v)  Change in intermediate consignee if the
new intermediate consignee is located in the
country of ultimate destination as shown on the
license, except a change in, or addition of, an
intermediate consignee involving a consolidated
shipment;
     (vi)  Change in continuity of shipment by
unloading from carrier at a country listed in
Country Group B (see Supplement No. 1 to part
740 of the EAR) port not in the country of
ultimate destination, without the designation of an
intermediate consignee on the shipping
documents and license, provided:
          (A)  The purpose is to transfer the shipment
to another vessel, barge, or vehicle, solely for
onforwarding to the country of destination shown
on the shipping documents and the license;
          (B)  The shipment is moving on a through bill
of lading;
          (C)  The carrier is not registered in, owned or
controlled by, or under charter or lease to a
country in Country Group D:1 or E:2 (see
Supplement No. 1 to  part 740 of the EAR), or a
national of any of these countries;
          (D)  The carrier retains custody of the
shipment until it is delivered to the ultimate
consignee; and
          (E)  The original bill of lading or air waybill
first issued at the port of export is delivered with
the shipment to the ultimate consignee;
     (vii)  Change in address of purchaser or
ultimate consignee if the new address is located
within the same country shown on the license; or
     (viii)  Change in ECCN, unit of quantity, or unit
price, where necessary only for the purpose of
conforming to an official revision in the CCL; or
wording of the item description.  This does not
cover an actual change in the item to be shipped,
or an increase in the total price or quantity on the
license; or
(2) [RESERVED]
              (d)  Responsibility of the licensee
The person to whom a license is issued is the
licensee.  In export transactions, the exporter
must be the licensee, and the exporter-licensee is
responsible for the proper use of the license, and
for all terms and conditions of the license, except
to the extent that certain terms and conditions are
directed toward some other party to the
transaction. In reexport or routed export
transactions, a U.S. agent acting on behalf of a
foreign principal party in interest may be the
licensee; in these cases, both the agent and the
foreign principal party in interest, on whose
behalf the agent has acted, are responsible for the
use of the license, and for all terms and conditions
of the license, except to the extent that certain
terms and conditions are directed toward some
other party to the transaction.  It is the licensee's
responsibility to communicate the specific license
conditions to the parties to whom those
conditions apply.  In addition, when required by
the license, the licensee is responsible for
obtaining written acknowledgment(s) of receipt of
the conditions from the party(ies) to whom those
conditions apply.
                (e)  Prohibited use of a license
No person convicted of a violation of any statute
specified in section 11(h) of the EAA, at the
discretion of the Secretary of Commerce, may
apply for any license for a period up to 10 years
from the date of the conviction.  See 766.25 of
the EAR.
            (f)  Quantity of commodities authorized
Unlike software and technology, commodities
will be approved with a quantity or dollar value
limit.  The "Unit" paragraph within each CCL
commodity entry will list a specific "Unit" for
those commodities controlled by that entry.  Any
license resulting from a license application to
export or reexport commodities will be licensed
in terms of the specified "Unit". If a commodity is
licensed in terms of "$ value", the unit of quantity
commonly used in trade may also be shown on
the license.  Though this unit may be shown on
the approved license, the quantity of commodities
authorized is limited entirely by the total dollar
value shown on the approved license.
                  (g)  License validity period
Licenses involving the export or reexport of items
will generally have a 24-month validity period,
unless a different validity period has been
requested and specifically approved by BIS.
Exceptions from the 24-month validity period
include, license applications reviewed and
approved as an "emergency" (see 748.4(h) of the
EAR), license applications for items controlled
for short supply reasons, and Special
Comprehensive Licenses.  Emergency licenses
will expire no later than the last day of the
calendar month following the month in which the
emergency license is issued.  Licenses for items
controlled for short supply reasons will be limited
to a 12-month validity period.  The expiration
date will be clearly stated on the face of the
license.  If the expiration date falls on a legal
holiday (Federal or State), the validity period is
automatically extended to midnight of the first
day of business following the expiration date.
(See part 752 of the EAR for validity periods for
Special Comprehensive Licenses.)
(1)  Extended validity period.  Validity periods
in excess of 24 months generally will not be
granted.  BIS will consider granting a validity
period exceeding 24 months when extenuating
circumstances warrant such an extension,
however, no changes will be approved related to
any other particular on the license (e.g., parties to
the transaction, countries of ultimate destination,
etc.).  For example, an extended validity period
will generally be granted where the transaction is
related to a multi-year project, when production
lead time will not permit an export or reexport
during the original validity period of the license,
when an unforeseen emergency prevents shipment
within the 24-month validity of the license, or for
other similar circumstances.  A continuing
requirement to supply spare or replacement parts
will not normally justify an extended validity
period.  Licenses issued in accordance with the
emergency clearance provisions contained in
748.4(h) of the EAR will not be extended.  See
752.9 of the EAR for information relating to the
extension of a Special Comprehensive License.
(2)  Request for extension.  (i)  The applicant
must submit a letter in writing to request an
extension in the validity period of a previously
approved license.  The subject of the letter must
be titled: "Request for Validity Period Extension"
and contain the following information:
          (A)  The name, address, and telephone
number of the requestor;
          (B)  A copy of the original license, with the
license number, validation date, and current
expiration date legible; and
          (C)  Justification for the extension.
     (ii)  It is the responsibility of the applicant to
ensure that all applicable support documents
remain valid and are in the possession of the
applicant.  If the request for extension is ap-
proved, BIS will provide the applicant with a
written response.
                (h)  Specific types of licenses
(1) Licenses for temporary exports or
reexports.  If you have been granted a license for
the temporary export or reexport of items and you
decide not to return the items to the United States,
you must submit a license application requesting
authorization to dispose of the items.  Except
when the items are to be used on a temporary
basis at a new destination (and returned to the
United States after such use), you must ensure
that your license application is accompanied by
all documents that would be required if you had
requested a license to export or reexport the same
item directly to the new destination.
(2)  Intransit within the United States.  If you
have been issued a license authorizing an intransit
shipment (that does not qualify for the intransit
provisions of License Exception TMP) through
the United States, your license will be valid only
for the export of the intransit shipment wholly of
foreign origin and for which a Transportation and
Exportation customs entry or an Immediate
Exportation customs entry is outstanding.
(3)  Intransit outside the United States.  If you
have been issued a license authorizing unlading or
transit through a country listed in the General
Prohibition Eight contained in 736.2(b)(8) of the
EAR, and you did not know the identity of the
intermediate consignee at the time of the original
license application, you must notify BIS in
writing once you have ascertained the identity of
the intermediate consignee.  Your notification
must contain the original license number, and the
complete name, address, and telephone number of
the intermediate consignee.  The written request
must be submitted to BIS at the address listed in
748.1(d)(2) of the EAR.
(4)  Replacement license.  If you have been
issued a "replacement" license (for changes to
your original license that were not covered in
paragraph (c) of this section), you must attach the
"replacement" license to the original, and retain
both.
               (i) Terminating license conditions
Exporters or reexporters who have shipped under
licenses with conditions that would not apply to
an export under a License Exception or if no
license was required, and foreign consignees who
have agreed to such conditions, are no longer
bound by these conditions when the licensed
items become eligible for a License Exception or
can be exported or reexported without a license.
Items that become eligible for a License
Exception are subject to the terms and conditions
of the applicable License Exception and to the
restrictions in 740.2 of the EAR.  Items that
become eligible for export without a license
remain subject to the EAR and any export,
reexport, or disposition of such items may only be
made in accordance with the requirements of the
EAR.  Termination of license conditions does not
relieve an exporter or reexporter of its
responsibility for violations that occurred prior to
the availability of a License Exception or prior to
the removal of license requirements.
                          (j)  Records
If you have been issued a license you must retain
the license, and maintain complete records in
accordance with part 762 of the EAR including
any licenses (whether used or unused, valid or
expired) and all supporting documents and
shipping records.
                             750.8
                  REVOCATION OR SUSPENSION OF
                            LICENSES
                        (a)  Revocation
All licenses for exports or reexports are subject to
revision, suspension, or revocation, in whole or in
part, without notice whenever it is known that the
EAR have been violated or that a violation is
about to occur.  BIS's Office of Exporter Services
may revoke any license in which a person who
has been convicted of one of the statutes specified
in section 11(h) of the EAA, at the discretion of
the Secretary of Commerce, has an interest in the
license at the time of the conviction.  It may be
necessary for BIS to stop a shipment or an export
or reexport transaction at any stage in the process
(e.g., in order to prevent an unauthorized export
or reexport).  If a shipment is already en route, it
may be further necessary for BIS to order the
return or unloading of such shipment at any port
of call in accordance with the provisions of the
EAA.
         (b)  Return of revoked or suspended licenses
If BIS revokes or suspends a license, the licensee
shall return the license immediately upon
notification that the license has been suspended or
revoked.  The license must be returned to BIS at
the address listed in 748.1(d)(2) of the EAR,
Attn: "Return of Revoked/Suspended License".
All applicable supporting documents and records
of shipments must be retained by the licensee in
accordance with the recordkeeping provisions of
part 762 of the EAR.  If the licensee fails to return
a license immediately upon notification that it has
been suspended or revoked, BIS may impose
sanctions provided for in part 764 of the EAR.
                             750.9
                       DUPLICATE LICENSES
                 (a)  Lost, stolen or destroyed
If a license is lost, stolen or destroyed, you, as
the licensee, may obtain a duplicate of the license
by submitting a letter to the BIS at the address
listed in 748.1(d)(2) of the EAR, Attention:
Duplicate License Request".  You must certify in
your letter:
(1)  That the original license ([number] issued to
[name and address of licensee]) has been lost,
stolen or destroyed;
(2)  The circumstances under which it was lost,
stolen or destroyed; and
(3)  If the original license is found, the licensee
will return either the original or duplicate license
to the BIS.  Note that if shipment was made
against the original license, those shipments must
be counted against the duplicate license.  If you
are issued a duplicate license you must retain the
duplicate license in accordance with the
recordkeeping provisions of part 762 of the EAR.
                (b)  Hong Kong Trade Department
BIS will automatically issue a duplicate license
whenever the license lists a party in Hong Kong
as the intermediate consignee, or when Hong
Kong is identified as the country from which the
reexport will take place.  The duplicate license
will be labeled "Duplicate for Hong Kong Trade
Department".  This duplicate must be forwarded
to the reexporter or intermediate consignee for
submission to the Hong Kong Trade Department.
The original license must be retained on file by
the licensee in accordance with the recordkeeping
provisions contained in part 762 of the EAR.
                            750.10
                   TRANSFERS OF LICENSES FOR
                            EXPORTS
                       (a)  Authorization
As the licensee, you may not transfer a license
issued for the export of items from the United
States to any other party, except with the prior
written approval of BIS.  BIS may authorize a
transfer of a license for export to a transferee who
is subject to the jurisdiction of the United States,
is a principal party in interest, and will assume all
powers and responsibilities under the license for
the control of the shipment of the items out of the
United States.  BIS will approve only one transfer
of the same license and only transfers of licenses
to export items.
          (b)  How to request the transfer of licenses
(1)  Letter from licensee.  You, as the licensee,
must submit a letter in writing to request a
transfer of a license or licenses.  The letter must
contain the following information:
     (i)  The reasons for the requested transfer;
     (ii) Either a list of the outstanding license
numbers or a statement that all outstanding
licenses in the name of the licensee are to be
transferred, and the total number of such
outstanding licenses;
     (iii)  A list of all license applications for export
to be transferred that are pending with BIS,
identifying the Application Control Number for
each, or other information that will assist in
identifying the pending license applications;
     (iv)  Name and address of the person you intend
to transfer the licenses and license applications
to;
     (v)  The facts necessitating transfer;
     (vi) A statement as to whether or not any
consideration has been, or will be, paid for the
transfer; and
     (vii) Identification by name of the legal
document (certificate, agreement, etc.) or other
authority by which the new firm name is legally
established, the new corporation or firm created,
or the assets transferred and showing the effective
date of such document and the state where filed
or recorded.
(2)  Information from transferee.  The person
to whom you wish to transfer your license(s) must
provide you a signed letter, that must be
submitted with your request, containing the
following:
     (i)  That the transferee is a principal party in
interest in the transaction covered by the license,
or is acting as agent for a principal party in
interest;
     (ii) That the transferee is subject to the
jurisdiction of the United States;
     (iii)  That the transferee assumes all powers and
responsibilities under the license for the control
of the shipment of the items out of the United
States;
     (iv)  Whether any consideration has been, has
not been, or will be paid for the transfer;
     (v)  The name and address of the foreign
principal in instances where the transferee will
make the export as an agent on behalf of a foreign
principal; and
     (vi) If the license is to be transferred to a
subsidiary or firm, or if you transfer to the
transferee all, or a substantial portion, of your
assets or business, the transferee must certify that
the legal authority changing the exporter imposes
on the transferee the responsibility to accept and
fulfill the obligations of the transferor under the
transactions covered by the license; and
     (vii)  The following certification:
               The undersigned hereby certifies that, if
               license number(s)_____________ is (are)
               transferred in accordance with my (our)
               request, any and all documents evidencing
               the order covered by this(these)license(s)
               will be retained and made available upon
               request in compliance with the
               recordkeeping provisions contained in Part
               762 of the Export Administration
               Regulations.  The undersigned further
               certifies compliance with all requirements
               of the Export Administration Regulations
               regarding these licenses.
        (c)  Notification of transfer and recordkeeping
Unless instructed otherwise by BIS, you must
retain the license(s) pending notification by BIS
of the action taken.  If the request is approved,
you must forward the license(s) to the transferee
and the validated letter received from BIS
authorizing the transfer.  If the transfer request is
not approved, the license(s) must either be
returned to BIS or used by you if you so choose
and have retained the legal and operational
capacity fully to meet the responsibilities imposed
by the license(s).  If your initial request is
returned by BIS for additional information, after
obtaining the necessary information you may
resubmit your request.
                            750.11
                      SHIPPING TOLERANCES
             (a)  Applicability and use of shipping
                           tolerances
Under some circumstances, you may use a license
issued for the export of items from the United
States to export more than the quantity or value
shown on that license.  This additional amount is
called a shipping tolerance.  This section tells
you, as the licensee, when you may take
advantage of a shipping tolerance and the amount
of shipping tolerance you are permitted to use.
(1)  If you have already shipped the full amount
approved on your license, you may not use this
shipping tolerance provision.  No further
shipment may be made under the license.
(2)     The amount of shipping tolerance you are
permitted is based on the "Unit" specified for the
item you want to export in the applicable ECCN
on the CCL (see Supplement No. 1 to part 774 of
the EAR).  You must calculate shipping tolerance
based on the applicable "Unit" whether that be
Number, Dollar Value, or Area, Weight, or other
Measure.  You may not use any other unit that
may appear on your license.
              (b) Calculating shipping tolerances
There are three basic rules, one for items licensed
by "Dollar Value", one for items licensed by
"Number", and another for items licensed by
"Area, Weight or other Measure".
(1)  Items licensed by "Dollar Value".  If the
"Unit" paragraph in the ECCN applicable to your
item reads "$ value" or "in $ value", there is no
shipping tolerance.  You may not ship more than
the total dollar value stated on your license.
(2)  Items licensed by "Number".  If the "Unit"
paragraph in the ECCN applicable to your item
reads "Number" or "in Number", there is no
shipping tolerance with respect to the number of
units.  However, the value of all of your
shipments under one license may exceed the total
dollar value stated on that license by up to 25%.
(3) Items licensed by "Area, Weight or
Measure".  If the "Unit" paragraph in the ECCN
applicable to your item reads "kilograms" or
"square meters" or some other unit of area,
weight or measure, your shipment may exceed the
unshipped balance of the area, weight or other
measure listed on your license by up to 10% and
the total dollar value shown on your license by up
to 25%, unless;
     (i)  Your license stipulates a specific shipping
tolerance; or
     (ii) Your item is controlled for short supply
reasons and a smaller tolerance has been
established. (See part 754 of the EAR).
              (c)  Examples of shipping tolerances
(1) A license authorizes the export of 100,000
kilograms of an item controlled by an ECCN
where the "Unit" is stated as "kilograms", the
total cost of which is $1,000,000:
     (i) One shipment.  If one shipment is made, the
quantity that may be exported may not exceed
110,000 kg (10% tolerance on the unshipped
Area, Weight, or Measure balance), and the total
cost of that one shipment may not exceed $-
1,250,000:
        $1,000,000 (the total value shown on the
                          license)
          +250,000          (25% of the total value shown
                                        on the license)
        $1,250,000
     (ii) Two shipments.  If the first shipment is for
40,000 kg (valued at $400,000), the second
shipment may not exceed 66,000 kg (10% of the
unshipped balance of 60,000 kg (6,000 kg) plus
the unshipped balance), and the total cost of the
second shipment shall not exceed $850,000:
          $600,000       (the value of the unshipped
                         balance of 60,000 kg)
          +250,000          (25% of the original total value
                             shown on the license)
          ________
          $850,000
     (iii) Three shipments.  If the first shipment is
for 40,000 kg (valued at $400,000) the second
shipment is for 20,000 kg (valued at $200,000),
the third shipment may not exceed 44,000 kg
(10% of the unshipped balance of 40,000 kg
(4,000 kg) plus the unshipped balance), and the
total cost of the third shipment can not exceed
$650,000:
          $400,000      (the value of the unshipped
                              balance of  40,000 kg)
          +250,000      (25% of the original total value
                              on the  license)
          ________
          $650,000
(2) A license authorizes the export of an item
controlled by an ECCN where the "Unit" is stated
as "$ value", the total cost of which is
$5,000,000. There is no shipping tolerance on this
license  because the items are controlled by an
ECCN where "$ value" is the stated "Unit".
(3)  A license authorizes the export of 10 pieces
of equipment controlled by an ECCN where the
"Unit" is stated as "Number", with a total value
of $10,000,000 and the export of parts and
accessories covered by that same entry valued at
$1,000,000:
     (i)(A)  If one shipment is made, the quantity of
equipment that may be exported may not exceed
10 pieces of equipment because there is no
shipping tolerance on the "number" of units. That
one shipment of equipment may not exceed
$12,500,000:
       $10,000,000      (the total value shown on the
                               license)
        +2,500,000      (25% of the total value shown
                                             on the license)
        __________
       $12,500,000
          (B)  If the one shipment includes parts and
accessories, those parts and accessories may not
exceed $1,000,000 because there is no shipping
tolerance on any commodity licensed in terms of
dollar value.
     (ii)(A)  If the first shipment is for 4 pieces of
equipment valued at $4,000,000, the second
shipment may not exceed 6 pieces of equipment
(no tolerance on "number") valued at no more
than $8,500,000:
        $6,000,000       (the value of the unshipped 6
                               pieces)
        +2,500,000       (25% of the original total value
                                   shown on the license)
        __________
        $8,500,000
          (B)  If the first shipment includes $300,000 of
parts and accessories, the second shipment may
not exceed $700,000 of parts and accessories
because there is no shipping tolerance on any
commodity licensed in terms of dollar value.
     (iii)(A)  If the first shipment is for 4 pieces of
equipment valued at $4,000,000 and the second
shipment is for 3 pieces of equipment valued at
$3,000,000, the third shipment may not exceed 3
pieces of equipment (no tolerance on "number")
valued at no more than $5,500,000:
        $3,000,000          (the value of the unshipped 3
                               pieces)
        +2,500,000          (25% of the original value
                         shown on the license)
        __________
        $5,500,000
          (B)  If the first shipment includes $300,000 of
parts and accessories and the second shipment
includes another $300,000, the third shipment
may not exceed $400,000 because there is no
shipping tolerance on commodities licensed in
terms of dollar value.