27180 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

PART 71—DESIGNATION OF CLASS A, 

B, C, D AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for 14 CFR 

part 71 continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of the Federal Aviation 

Administration Order 7400.9X, Airspace 

Designations and Reporting Points, 

dated August 7, 2013, and effective 

September 15, 2013 is amended as 

follows: 

Paragraph 6005 Class E Airspace Areas 

Extending Upward From 700 Feet or More 

Above the Surface of the Earth. 

* * * * * 

AAL AK E5 Kuparuk, AK [Modified] 

Ugnu-Kuparuk Airport, AK 

(Lat. 70°19′50′′ N., long. 149°35′53′′ W.) 

That airspace extending upward from 700 

feet above the surface within a 6.5-mile 

radius of the Ugnu-Kuparuk Airport, and 

within 4 miles either side of the 078° bearing 

extending from the Ugnu-Kuparuk Airport 

6.5-mile radius to 9.5 miles east of the 

airport; and that airspace extending upward 

from 1,200 feet above the surface within a 20- 

mile radius of the Ugnu-Kuparuk Airport; 

excluding that airspace that extends beyond 

12 miles of the shoreline. 

Issued in Seattle, Washington, on April 28, 

2014. 

Clark Desing, 

Manager, Operations Support Group, Western 

Service Center. 

[FR Doc. 2014–10867 Filed 5–12–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF STATE 

22 CFR Parts 120, 121, and 124 

[Public Notice: 8728] 

RIN 1400–AD33 

Amendment to the International Traffic 

in Arms Regulations: Revision of U.S. 

Munitions List Category XV 

AGENCY: Department of State. 

ACTION: Interim final rule. 

SUMMARY: As part of the President’s 

Export Control Reform (ECR) effort, the 

Department of State is amending the 

International Traffic in Arms 

Regulations (ITAR) to revise Category 

XV (Spacecraft and Related Articles) of 

the U.S. Munitions List (USML) to 

describe more precisely the articles 

warranting control in that category. The 

revisions contained in this rule are part 

of the Department of State’s 

retrospective plan under Executive 

Order 13563 completed on August 17, 

2011. This rule is published as an 

interim final rule because the 

Department believes that substantial 

national security benefits will flow from 

the changes to the controls on spacecraft 

and related items, but acknowledges 

that additional analysis of and public 

comment on the control thresholds for 

remote sensing satellites are warranted. 

DATES: This rule is effective November 

10, 2014, except for § 121.1, Category 

XV(d), which is effective June 27, 2014. 

Interested parties may submit comments 

on paragraphs (a)(7) and (e)(11) of 

USML Category XV and ITAR § 124.15 

by June 27, 2014. 

ADDRESSES: Interested parties may 

submit comments on paragraphs (a)(7) 

and (e)(11) of USML Category XV and 

ITAR § 124.15 within 45 days of the 

date of publication by one of the 

following methods: 

• E-mail: DDTCResponseTeam@

state.gov with the subject line, ‘‘USML 

Category XV(a)(7) and (e)(11) and ITAR 

§ 124.15.’’ 

• Internet: At www.regulations.gov, 

search for this notice by using this 

notice’s RIN (1400–AD33). 

Comments received after that date 

may be considered if feasible, but 

consideration cannot be assured. Those 

submitting comments should not 

include any personally identifying 

information they do not desire to be 

made public or information for which a 

claim of confidentiality is asserted 

because those comments and/or 

transmittal emails will be made 

available for public inspection and 

copying after the close of the comment 

period via the Directorate of Defense 

Trade Controls Web site at 

www.pmddtc.state.gov. Parties who 

wish to comment anonymously may do 

so by submitting their comments via 

www.regulations.gov, leaving the fields 

that would identify the commenter 

blank and including no identifying 

information in the comment itself. 

Comments submitted via 

www.regulations.gov are immediately 

available for public inspection. 

FOR FURTHER INFORMATION CONTACT: Mr. 

C. Edward Peartree, Director, Office of 

Defense Trade Controls Policy, 

Department of State, telephone (202) 

663–2792; email DDTCResponseTeam@

state.gov. ATTN: Regulatory Change, 

USML Category XV. The Department of 

State’s full retrospective plan can be 

accessed at http://www.state.gov/

documents/organization/181028.pdf. 

SUPPLEMENTARY INFORMATION: The 

Directorate of Defense Trade Controls 

(DDTC), U.S. Department of State, 

administers the International Traffic in 

Arms Regulations (ITAR) (22 CFR parts 

120–130). The items subject to the 

jurisdiction of the ITAR, i.e., ‘‘defense 

articles’’ and ‘‘defense services,’’ are 

identified on the ITAR’s U.S. Munitions 

List (USML) (22 CFR 121.1). With few 

exceptions, items not subject to the 

export control jurisdiction of the ITAR 

are subject to the jurisdiction of the 

Export Administration Regulations 

(‘‘EAR,’’ 15 CFR 730–774, which 

includes the Commerce Control List 

(CCL) in Supplement No. 1 to part 774), 

administered by the Bureau of Industry 

and Security (BIS), U.S. Department of 

Commerce. Both the ITAR and the EAR 

impose license requirements on exports, 

reexports, and retransfers. Items not 

subject to the ITAR, or to the exclusive 

licensing jurisdiction of any other set of 

regulations, are subject to the EAR. 

All references to the USML in this 

rule are to the list of defense articles and 

defense services controlled for the 

purpose of export or temporary import 

pursuant to the ITAR, and not to the 

defense articles on the USML that are 

controlled by the Bureau of Alcohol, 

Tobacco, Firearms and Explosives (ATF) 

for the purpose of permanent import 

under its regulations. See 27 CFR 447. 

Pursuant to section 38(a)(1) of the Arms 

Export Control Act (AECA), all defense 

articles controlled for export or import 

are part of the USML under the AECA. 

For the sake of clarity, the list of defense 

articles controlled by ATF for the 

purpose of permanent import is the U.S. 

Munitions Import List (USMIL). The 

transfer of defense articles from the 

ITAR’s USML to the EAR’s CCL for the 

purpose of export control does not affect 

the list of defense articles controlled on 

the USMIL under the AECA for the 

purpose of permanent import. 

Changes in This Rule 

The following changes are made to 

the ITAR with this interim final rule: (i) 

Revision of U.S. Munitions List (USML) 

Category XV (Spacecraft and Related 

Articles); (ii) amendment to paragraph 

(i) of USML Category IV, regarding 

spacecraft-launch vehicle integration 

and launch failure analysis services; (iii) 

conforming edits to ITAR § 124.15, 

regarding special export controls for 

satellites and satellite launches; and (iv) 

amendment to ITAR § 120.10(b) to 

include telemetry data to the list of 

exclusions from technical data. The 

Department notes that there is a shorter 

implementation period for radiationhardened microelectronic circuits 

formerly described in paragraph (d) of 

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Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27181 

USML Category XV; 45 days following 

publication of this rule, they are 

controlled in ECCN 9A515.d. In 

addition, microelectronic circuits that 

would otherwise have been within the 

scope of paragraph (e) of USML 

Category XV are no longer subject to the 

ITAR 45 days following the publication 

of this rule; instead, they are controlled 

in ECCN 9A515.e. Software and 

technical data directly related to such 

microelectronic circuits are controlled 

in ECCNs 9D515 and 9E515, 

respectively, 45 days following the 

publication of this rule as well. 

When moving items from the USML 

to the jurisdiction of the CCL, the 

Department coordinates the publication 

of rules with the Department of 

Commerce so there is uninterrupted 

regulatory coverage for the items 

changing jurisdiction. The Department 

of Commerce’s companion to this rule 

is, ‘‘Revisions to the Export 

Administration Regulations (EAR): 

Control of Spacecraft Systems and 

Related Items the President Determines 

No Longer Warrant Control Under the 

United States Munitions List (USML).’’ 

It is published elsewhere in this issue of 

the Federal Register. 

The revised definition for defense 

services, published with the USML 

Category XV proposed rule (RINs 1400– 

AC80 and 1400–AD33) on May 24, 

2013, will be the subject of a separate 

rule. 

Impact on Licensing Burden 

As required by Executive Order 

13563, the Department intends to 

review this rule’s impact on the 

licensing burden on exporters. 

Licensing and export data are routinely 

collected on an ongoing basis, including 

from the Department’s electronic 

licensing database, from the Automated 

Export System, and from public 

comments. This information has been, 

and will continue to form, the basis for 

ongoing reviews of this rule and other 

rules promulgated pursuant to ECR. As 

part of its plan for retrospective analysis 

under Executive Order 13563, the 

Department intends to conduct periodic 

reviews of this rule and to modify, or 

repeal, aspects of this rule, as 

appropriate, after public notice and 

comment. With regard to a number of 

aspects of this rule, assessments and 

refinements will be made on an ongoing 

basis. This is particularly the case with 

regard to possible modifications that 

will be considered based on the public 

comments. 

Revision of USML Category XV 

This interim final rule revises USML 

Category XV, covering spacecraft and 

related articles, to remove from it 

certain articles that are now subject to 

the EAR, and to more clearly describe 

the articles controlled therein. 

This rule follows a change to section 

1513 of Public Law 105–261, the Strom 

Thurmond National Defense 

Authorization Act for Fiscal Year 1999, 

which required that space-related items, 

including all satellites, were to be 

controlled as defense articles and 

removed the President’s authority to 

move these items off the USML. 

Section 1248 of the National Defense 

Authorization Act for Fiscal Year 2010 

(Pub. L. 111–84) provided that the 

Secretaries of Defense and State carry 

out an assessment of the risks associated 

with removing satellites and related 

components from the USML. The 

Departments of Defense and State 

conducted this review and identified 

certain satellites and related items that 

are not critical to national security, do 

not contain technologies unique to the 

United States, and are more 

appropriately subject to the EAR, which 

allows for the creation of license 

exceptions for exports to certain 

destinations and complete controls for 

exports to others. This report was 

provided to the Congress in April 2012. 

The National Defense Authorization 

Act for Fiscal Year 2013 (Pub. L. 112– 

239), in section 1261, returned to the 

President the authority to determine 

which satellites and related articles are 

controlled on the USML. With this 

authority, and consistent with the 

President’s Export Control Reform (ECR) 

effort, the Department made the 

following revisions to USML Category 

XV. 

Paragraphs (a) and (e) are revised to 

more specifically describe the articles 

controlled therein. Certain commercial 

communications and remote sensing 

satellites are not enumerated in 

paragraph (a); they are now subject to 

the EAR. 

Paragraph (b) is revised to limit its 

scope to ground control systems and 

training simulators specially designed 

for telemetry, tracking, and control of 

spacecraft in paragraph (a) of USML 

Category XV. 

The articles currently covered in 

paragraph (c), certain Global Positioning 

System receiving equipment, will be 

proposed for control in USML Category 

XII. Until a revised USML Category XII 

is implemented, these articles will 

continue to be covered in paragraph (c). 

The articles formerly covered in 

paragraph (d), certain radiationhardened microelectronic circuits, are 

controlled on the CCL in new ECCN 

9A515.d. To the extent paragraph (e) 

controlled any other microelectronic 

circuits, they are controlled on the CCL 

in new ECCN 9A515.e. Software and 

technical data directly related to such 

microelectronic circuits are controlled 

on the CCL in new ECCNs 9D515 and 

9E515, respectively. The effective date 

for these changes in controls pertaining 

to microelectronic circuits is 45 days 

from the publication date of this rule. 

Paragraph (f) is revised to explicitly 

provide that directly related defense 

services include the furnishing of 

assistance (including training) in the 

integration of a satellite or spacecraft to 

a launch vehicle, including both 

planning and onsite support, regardless 

of the jurisdiction, ownership, or origin 

of the satellite or spacecraft, or whether 

technical data is used. It also includes 

the furnishing of assistance (including 

training) in the launch failure analysis 

of a satellite or spacecraft, regardless of 

the jurisdiction, ownership, or origin of 

the satellite of spacecraft, or whether 

technical data is used. This text was 

part of the defense services definition 

published with the proposed rule for 

this category; the Department now 

provides it in paragraph (f). 

Articles common to the Missile 

Technology Control Regime (MTCR) 

Annex and the USML are identified on 

the USML, including in USML Category 

XV, with the parenthetical ‘‘(MT)’’ at the 

end of each paragraph containing such 

articles. 

A new ‘‘(x) paragraph’’ is added to 

USML Category XV, allowing ITAR 

licensing for commodities, software, and 

technology subject to the EAR, provided 

those commodities, software, and 

technology are to be used in or with 

defense articles controlled in USML 

Category XV and are described in the 

purchase documentation submitted with 

the application. The Department notes 

that ‘‘technical data’’ instead of 

‘‘technology’’ was used in the revised 

USML categories that have been 

published thus far, and that have a 

paragraph (x). Those paragraphs will be 

amended to adopt this change. The EAR 

definition of technology is operative in 

this paragraph. 

Revised USML Category XV, along 

with a revised definition for defense 

services, was published as a proposed 

rule on May 24, 2013, for public 

comment (see ‘‘Amendment to the 

International Traffic in Arms 

Regulations: Revision of U.S. Munitions 

List Category XV and Definition of 

‘Defense Service,’’’ 78 FR 31444, RINs 

1400–AC80 and 1400–AD33). The 

comment period ended July 8, 2013. 

The public comments were reviewed 

and considered by the Department and 

other agencies. The Department’s 

evaluation of the written comments and 

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27182 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

recommendations for the defense 

services definition will be provided in 

a separate rule regarding defense 

services. The Department’s evaluation of 

the written comments and 

recommendations for USML Category 

XV follows. 

The Department notes that although 

the Administration sought the authority 

to decide the export licensing 

jurisdiction for spacecraft and related 

articles, the Department, along with the 

Department of Defense, reported to the 

Congress that currently only three broad 

types of articles are appropriate to 

control on the CCL: Communication 

satellites that do not contain classified 

components or capability; remote 

sensing satellites with performances 

parameters below certain thresholds; 

and systems, subsystems, parts, and 

components associated with these 

satellites and with performance 

parameters below certain thresholds. 

The Department intends to control on 

the USML, and specifically provides for 

this in paragraph (a) introductory text, 

some spacecraft that have commercial 

end-use. Spacecraft that have 

commercial end-use with capabilities 

above specified thresholds will still be 

controlled on the USML. Therefore, the 

Department did not accept 

recommendations to move off the USML 

certain spacecraft based on the rationale 

that established commercial end-use 

alone should determine export 

jurisdiction. 

As an example, a commenting party 

recommended that satellites and 

associated articles pertaining to the 

Amateur Satellite Service not be 

controlled on the USML. To the greatest 

extent possible, the Department is 

revising the USML using the principle 

of control based on article capability, 

and not article end-use, believing the 

former to be the better standard for 

protecting the technologies of 

importance to national security. Based 

on this standard, the Department did 

not accept this recommendation or other 

recommendations to remove from 

USML Category XV satellites and 

associated articles based solely on 

potential or actual commercial 

application. As was the case before this 

revision, if a commercial or research 

activity requires the export of an article 

controlled under USML Category XV (to 

include the provision of technical data 

to a foreign person in the United States, 

but excluding certain instances where a 

defense article is incorporated into a 

spacecraft now subject to the EAR), 

ITAR licensing requirements apply. 

Commenting parties recommended 

various articles that would be pertinent 

to the emerging civil and commercial 

space industry be moved from the 

USML to the CCL so as to facilitate its 

growth. The Department did not accept 

the premise of this recommendation. 

The review of USML Category XV was 

conducted with the intent of 

appropriately protecting military-critical 

technologies; the revisions to the 

category are consistent with this 

intention. While nurturing the civil and 

commercial space industry is a laudable 

goal, certain of the technologies on 

which this industry may develop and 

operate are of critical military 

importance and concern, and therefore 

must remain controlled on the USML at 

this time. For example, launching 

spacecraft to sub-orbit or orbit requires 

MTCR Category I items, upon which are 

placed the greatest restraint with regard 

to export. The Department deems it 

appropriate that such articles are 

controlled on the USML. Spacecraft 

specially designed for human space 

flight that have integrated propulsion 

present another security concern, for 

such capabilities may be used for the 

purposes of weapons targeting from 

space. So, although these technologies 

and capabilities are used in commercial 

endeavors, they continue to merit 

control on the USML. As technologies 

develop, and as there may come to be 

a greater differentiation between 

military-critical and commercial 

technologies, their licensing jurisdiction 

will be reassessed, as provided for in 

section 38(f) of the AECA. 

In response to the recommendation of 

commenting parties, the Department 

qualified the term ‘‘track’’ in paragraph 

(a)(2) by adding the terms 

‘‘autonomously’’ and ‘‘real-time.’’ 

In response to the recommendation of 

a commenting party, the Department 

clarifies that paragraph (a)(3) does not 

capture signal interference mitigation 

technology and revised the paragraph to 

make clearer the intention of the 

paragraph. 

Commenting parties recommended 

revising paragraph (a)(4), to except from 

it such services that are commercial in 

nature. The Department did not accept 

this recommendation. As the technology 

and applications in question are at an 

initial phase of development, the 

Department does not believe there is 

currently a commercial impact of this 

regulation. The Department, though, 

modified the text to more precisely 

describe the articles controlled therein, 

and renumbered it as paragraph (a)(10). 

Commenting parties recommended 

the aperture threshold for civil and 

commercial remote sensing satellites in 

paragraph (a)(7)(i) be increased from 

0.35 meters to a threshold more 

appropriate for current world 

capabilities and market conditions. The 

Department did not accept this 

recommendation at this time. However, 

it, along with other agencies, 

understands that the technology and 

civil and commercial applications in 

this area are evolving. Thus, the 

Department has committed to reviewing 

during the six months after the 

publication of this rule whether further 

amendments to the USML controls on 

civil and commercial remote sensing 

satellites are warranted, and seeks 

additional public comment on this 

matter. 

In response to the recommendation of 

a commenting party, the Department 

confirms that satellites with payloads 

designed to supplement the signals 

produced by other satellite-based or 

terrestrial navigation systems for 

specific geographic areas or terrestrial 

applications are not covered by 

paragraph (a)(9). Therefore, a satellite or 

spacecraft that provides only a 

differential correction broadcast for the 

purposes of positioning, navigation, or 

timing is controlled in ECCN 9A515. 

In response to commenting parties, 

the Department removed as a control 

parameter the text of paragraph (c)(2) 

(‘‘designed for producing navigation 

results above 60,000 feet altitude and at 

1,000 knots velocity or greater’’) for 

Global Positioning System receiving 

equipment. That control parameter has 

been updated based upon the MTCR 

Annex. Therefore, Global Positioning 

System receiving equipment designed or 

modified for airborne applications and 

capable of providing navigation 

information at speeds in excess of 600 

m/s (1,165 nautical mph), and specially 

designed parts and components 

therefor, are controlled in ECCN 7A105. 

Paragraph (c) controls Global 

Positioning System receiving equipment 

based upon the three remaining criteria. 

In response to the recommendation of 

commenting parties, the Department 

provided a shorter implementation 

period for radiation-hardened 

microelectronic circuits. The articles 

formerly described in paragraph (d) are 

controlled in ECCN 9A515.d, 45 days 

following publication of this rule. In 

addition, microelectronic circuits that 

would otherwise have been within the 

scope of paragraph (e) are no longer 

subject to the ITAR 45 days following 

the publication of this rule; instead, 

they are controlled in ECCN 9A515.e. 

Software and technical data directly 

related to such microelectronic circuits 

are controlled in ECCNs 9D515 and 

9E515, respectively, 45 days following 

the publication of this rule as well. The 

Department notes that these items 

cannot be exported via a Department 

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Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27183 

license intended to export only USML 

Category XV articles until paragraph (x) 

of USML Category XV takes effect (and 

provided the other criteria for use of 

paragraph (x) are met). 

In response to the recommendation of 

commenting parties, the Department 

revised the text in paragraph (e)(1) to 

clarify that antennas on spacecraft are 

controlled therein, and not groundbased antennas. 

A commenting party recommended 

that the diameter of the antenna system 

described in paragraph (e)(1) be 

increased from greater than 25 meters to 

greater than 35 meters, and the aperture 

dimension provided for space-qualified 

optics in paragraph (e)(2) be increased. 

The Department did not accept these 

recommendations. The Department 

notes that, as provided in a note to 

paragraph (e), spacecraft and other items 

described in ECCN 9A515 remain 

subject to the EAR, even if defense 

articles are incorporated therein, 

provided the resultant spacecraft is not 

described in paragraph (a). 

In response to commenting parties, 

the Department clarifies that paragraph 

(e)(7) does not control space-qualified 

laser radar or Light Detection and 

Ranging (LIDAR) equipment, and notes 

that none of the items excluded from 

USML control, as formerly identified in 

a note to paragraph (e), are included in 

this revised USML Category XV. 

A commenting party requested 

clarification of the term ‘‘space-based’’ 

in paragraph (e)(8), and how it is 

differentiated from the term ‘‘spacequalified.’’ The Department moved the 

controls of paragraph (e)(8) to (e)(7), and 

removed paragraph (e)(8) and use of the 

term ‘‘space-based.’’ The Department 

included in a note to paragraph (e) the 

information that the terms ‘‘designed’’ 

and ‘‘manufactured’’ in the spacequalified definition are synonymous 

with the specially designed definition of 

ITAR § 120.41. The Department also 

notes that use in the ITAR of the ‘‘spacequalified’’ definition, a central criterion 

of which is the altitude aspect, does not 

indicate that the U.S. government has 

accepted that the altitude of 100 km 

above the surface of the Earth represents 

a legal demarcation between national air 

space and outer space under United 

States or international law. 

The Department notes that paragraph 

(e)(11) has been expanded to include 

other space-based systems that were not 

included in the proposed rule. In the 

proposed rule, paragraph (e)(11) read 

thus: ‘‘Space-based nuclear thermionic 

or non-nuclear thermionic converters or 

generators, and specially designed parts 

and components therefor.’’ In this rule, 

paragraph (e)(11) reads thus: ‘‘Spacebased systems, and specially designed 

parts and components therefor, as 

follows: (i) Nuclear reactors and 

associated power conversion systems 

(e.g., liquid metal or gas-cooled fast 

reactors); (ii) radioisotope-based power 

systems (e.g., radioisotope 

thermoelectric generators); or (iii) 

nuclear thermal propulsion systems 

(e.g., solid core, liquid core, gas core 

fission.’’ The Department is seeking 

comment on this revision of paragraph 

(e)(11). 

In response to commenting parties, 

the Department revised the regulation at 

paragraph (e)(13) to capture those 

control moment gyroscopes that are 

specially designed for spacecraft. The 

Department notes that paragraph (e)(13) 

does not control fly wheels or reaction 

wheels. 

Commenting parties requested 

clarification that an ITAR-controlled 

hosted payload on a satellite subject to 

the EAR would not change the licensing 

jurisdiction of the satellite, making it a 

satellite controlled on the USML. The 

Department added a note to paragraph 

(e)(17) stipulating that a satellite subject 

to the EAR that has such a hosted 

payload that performs any of the 

functions described in paragraph (a) 

will remain subject to the EAR. In 

addition, the note also provides that a 

satellite with a primary or secondary 

payload that performs any of the 

functions described in paragraph (a) is 

a satellite controlled on the USML. 

The Department did not accept the 

recommendation of commenting parties 

to remove the paragraph controlling 

payloads developed with Department of 

Defense funding, but it did provide for 

certain exclusions, and added a 

provision delaying the effective date of 

the paragraph for six months beyond the 

effective date of the revised category. 

One such exclusion is that a payload 

developed with Department of Defense 

funding can nonetheless be determined 

to be subject to the EAR pursuant to a 

Commodity Jurisdiction determination. 

This means that, with respect to 

secondary or hosted payload, or 

specially designed parts or components 

therefor, that are subject to the ITAR 

only by virtue having been developed 

with Defense Department funding (i.e., 

no other parts of USML Category XV 

apply to the articles), one may request 

the Department to exercise its discretion 

to determine under ITAR § 120.4 that 

the article is nonetheless not subject to 

the ITAR. The Department will process 

such requests on a case-by-case basis 

based on whether the article at issue 

would otherwise meet the standards for 

being included on the USML. 

Commenting parties recommended 

the Department confirm that various 

types of telemetry—i.e., 

communications to and from satellites 

and other spacecraft, whether on the 

ground, in the air, or in space—are not 

subject to the ITAR or the EAR, or, if so, 

to exclude them from the controls for 

satellite and spacecraft technical data 

and technology in paragraph (f) and 

ECCN 9E515. Based on a review of the 

comments and the types of information 

pertaining to satellites and spacecraft 

that warrant control, the Departments of 

State and Commerce have determined to 

codify existing policy within the 

regulations that data transmitted to or 

from a satellite or spacecraft, whether 

real or simulated, is not subject to the 

ITAR and, if within the scope of the 

EAR’s definition of ‘‘technology,’’ is 

designated as EAR99 if it is limited to 

information about the health, 

operational status, or function of, or raw 

sensor output from, the spacecraft, 

spacecraft payload, or its associated 

subsystems or components. Such 

information is often referred to as 

‘‘housekeeping data.’’ In addition, the 

act of processing such telemetry data— 

i.e., converting raw data into 

engineering units or readable 

products—or encrypting it does not, in 

and of itself, cause the telemetry data to 

become subject to the ITAR or to ECCN 

9E515. To implement this 

determination, the Department added a 

note to paragraph (f) that such 

information is not subject to the ITAR 

and the Department of Commerce added 

a note to ECCN 9E515 that such 

information, to the extent it would be 

subject to the EAR, is EAR99. Other 

types of technical data, as defined in 

ITAR § 120.10, directly related to USML 

Category XV articles and other types of 

technology, as defined in EAR § 772.1, 

required for 9A515 items, are still 

controlled. In addition, the notes to 

paragraph (f) and 9E515 do not change 

the ITAR-control status of classified 

information directly related to defense 

articles and defense services on the 

USML and 600-series items subject to 

the EAR, as well as information covered 

by an invention secrecy order. 

‘‘Classified,’’ for these purposes, means 

that which is classified pursuant to 

Executive Order 13526, a predecessor or 

successor order, or to the corresponding 

classification rules of another 

government or international 

organization. 

The Department received proposals 

for alternative phrasing of the regulatory 

text in USML Category XV. When the 

recommended changes added to the 

clarity of the regulation and were 

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27184 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

consistent with the Administration’s 

ECR effort, the Department accepted 

them. 

As stated above, the Department will 

address public comments on the 

proposed revision of the defense 

services definition in a separate rule. 

However, the Department addresses 

here one of the comments that resulted 

in a change to USML Categories IV and 

XV. A commenting party recommended 

that paragraphs (a)(5) and (a)(6) of the 

proposed defense services definition, 

regarding the furnishing of assistance in 

the integration of a spacecraft to a 

launch vehicle and in the launch failure 

analysis of a spacecraft or launch 

vehicle, respectively, be removed, and 

that those activities be described in the 

USML categories covering spacecraft 

and launch vehicles, on the basis that a 

general definition should not have such 

program-specific clauses. The 

Department accepted this 

recommendation and revised paragraph 

(f) of USML Category XV and paragraph 

(i) of USML Category IV accordingly. 

The revision includes the 

recommendation of commenting parties 

to specifically provide that the service 

must be provided to a foreign person in 

order for it to be a licensable activity. 

Additional Changes 

The Department revised the definition 

of technical data at ITAR § 120.10 to 

specify that it does not include 

telemetry data as defined in note 3 to 

USML Category XV(f). 

The Department amended paragraph 

(i) of USML Category IV to specify that 

directly related defense services include 

the furnishing of assistance (including 

training) in the integration of a satellite 

or spacecraft to a launch vehicle, 

including both planning and onsite 

support, regardless of the jurisdiction, 

ownership, or origin of the satellite or 

spacecraft, or whether technical data is 

used. It also includes the furnishing of 

assistance (including training) in the 

launch failure analysis of a launch 

vehicle, regardless of the jurisdiction, 

ownership, or origin of the launch 

vehicle, or whether technical data is 

used. This text was part of the defense 

services definition published with the 

proposed rule for USML Category XV; 

the Department now provides it in 

paragraph (i) of USML Category IV. 

The Department revised ITAR 

§ 124.15 to clarify which special export 

controls apply to satellites and related 

items subject to the ITAR and which 

controls apply to satellites and related 

items subject to the ITAR or the EAR. 

For certain of the special export 

controls, the Department of Commerce 

is adding consistent controls in its 

companion interim final rule for 

satellites subject to the EAR. Because 

the changes to this section were not in 

the proposed rule, the Department is 

now requesting comment. 

Regulatory Analysis and Notices 

Administrative Procedure Act 

The Department of State is of the 

opinion that controlling the import and 

export of defense articles and services is 

a foreign affairs function of the United 

States Government and that rules 

implementing this function are exempt 

from sections 553 (rulemaking) and 554 

(adjudications) of the Administrative 

Procedure Act (APA). Although the 

Department is of the opinion that this 

rule is exempt from the rulemaking 

provisions of the APA, the Department 

published this rule as proposed rule 

with a 45-day provision for public 

comment and without prejudice to its 

determination that controlling the 

import and export of defense services is 

a foreign affairs function. 

Regulatory Flexibility Act 

Since the Department is of the 

opinion that this rule is exempt from the 

provisions of 5 U.S.C. 553, there is no 

requirement for an analysis under the 

Regulatory Flexibility Act. 

Unfunded Mandates Reform Act of 1995 

This rulemaking does not involve a 

mandate that will result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any year and it will not significantly 

or uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

For purposes of the Small Business 

Regulatory Enforcement Fairness Act of 

1996 (the ‘‘Act’’), a ‘‘major’’ rule is a 

rule that the Administrator of the OMB 

Office of Information and Regulatory 

Affairs finds has resulted or is likely to 

result in (1) an annual effect on the 

economy of $100,000,000 or more; (2) a 

major increase in costs or prices for 

consumers, individual industries, 

federal, state, or local government 

agencies, or geographic regions; or (3) 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

foreign markets. 

The Department does not believe this 

rulemaking will have an annual effect 

on the economy of $100,000,000 or 

more. Articles that are being removed 

from coverage in the U.S. Munitions List 

categories contained in this rule will 

still require licensing for export, but 

from the Department of Commerce. 

While the licensing regime of the 

Department of Commerce is more 

flexible than that of the Department of 

State, it is not expected that the change 

in jurisdiction of these articles will 

result in an export difference of 

$100,000,000 or more. 

The Department also does not believe 

that this rulemaking will result in a 

major increase in costs or prices for 

consumers, individual industries, 

federal, state, or local government 

agencies, or geographic regions, or have 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

foreign markets. 

Executive Orders 12372 and 13132 

This rulemaking will not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this rulemaking 

does not have sufficient federalism 

implications to require consultations or 

warrant the preparation of a federalism 

summary impact statement. The 

regulations implementing Executive 

Order 12372 regarding 

intergovernmental consultation on 

Federal programs and activities do not 

apply to this rulemaking. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributed impacts, and equity). 

These executive orders stress the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rulemaking has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

this rule has been reviewed by the 

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Office of Management and Budget 

(OMB). 

Executive Order 12988 

The Department of State reviewed this 

rulemaking in light of sections 3(a) and 

3(b)(2) of Executive Order 12988 to 

eliminate ambiguity, minimize 

litigation, establish clear legal 

standards, and reduce burden. 

Executive Order 13175 

The Department of State determined 

that this rulemaking will not have tribal 

implications, will not impose 

substantial direct compliance costs on 

Indian tribal governments, and will not 

preempt tribal law. Accordingly, the 

requirements of Executive Order 13175 

do not apply to this rulemaking. 

Paperwork Reduction Act 

Following is a listing of approved 

collections that will be affected by 

revision of the USML and the CCL 

pursuant to ECR. This final rule 

continues the implementation of ECR. 

The list of collections and the 

description of the manner in which they 

will be affected pertains to revision of 

the USML in its entirety, not only to the 

category published in this rule. In 

accordance with the Paperwork 

Reduction Act, the Department of State 

will request comment on these 

collections from all interested persons. 

In particular, the Department will seek 

comment on changes to licensing 

burden based on implementation of 

regulatory changes pursuant to ECR, and 

on projected changes based on 

continued implementation of regulatory 

changes pursuant to ECR. The affected 

information collections are as follows: 

(1) Statement of Registration, DS– 

2032, OMB No. 1405–0002. The 

Department estimates that up to 5,000 of 

currently-registered persons will not 

need to maintain registration following 

full revision of the USML. This would 

result in a burden reduction of 10,000 

hours annually, based on a revised time 

burden of two hours to complete a 

Statement of Registration. 

(2) Application/License for Permanent 

Export of Unclassified Defense Articles 

and Related Unclassified Technical 

Data, DSP–5, OMB No. 1405–0003. The 

Department estimates that there will be 

35,000 fewer DSP–5 submissions 

annually following full revision of the 

USML. This would result in a burden 

reduction of 35,000 hours annually. 

(3) Application/License for 

Temporary Import of Unclassified 

Defense Articles, DSP–61, OMB No. 

1405–0013. The Department estimates 

that there will be 200 fewer DSP–61 

submissions annually following full 

revision of the USML. This would result 

in a burden reduction of 100 hours 

annually. 

(4) Application/License for 

Temporary Export of Unclassified 

Defense Articles, DSP–73, OMB No. 

1405–0023. The Department estimates 

that there will be 800 fewer DSP–73 

submissions annually following full 

revision of the USML. This would result 

in a burden reduction of 800 hours 

annually. 

(5) Application for Amendment to 

License for Export or Import of 

Classified or Unclassified Defense 

Articles and Related Technical Data, 

DSP–6, –62, –74, –119, OMB No. 1405– 

0092. The Department estimates that 

there will be 2,000 fewer amendment 

submissions annually following full 

revision of the USML. This would result 

in a burden reduction of 1,000 hours 

annually. 

(6) Request for Approval of 

Manufacturing License Agreements, 

Technical Assistance Agreements, and 

Other Agreements, DSP–5, OMB No. 

1405–0093. The Department estimates 

that there will be 1,000 fewer agreement 

submissions annually following full 

revision of the USML. This would result 

in a burden reduction of 2,000 hours 

annually. 

(7) Maintenance of Records by 

Registrants, OMB No. 1405–0111. The 

requirement to actively maintain 

records pursuant to provisions of the 

International Traffic in Arms 

Regulations (ITAR) will decline 

commensurate with the drop in the 

number of persons who will be required 

to register with the Department 

pursuant to the ITAR. As stated above, 

the Department estimates that up to 

5,000 of the currently-registered persons 

will not need to maintain registration 

following full revision of the USML. 

This would result in a burden reduction 

of 100,000 hours annually. However, the 

ITAR does provide for the maintenance 

of records for a period of five years. 

Therefore, persons newly relieved of the 

requirement to register with the 

Department may still be required to 

maintain records. 

(8) Export Declaration of Defense 

Technical Data or Services, DS–4071, 

OMB No. 1405–0157. The Department 

estimates that there will be 2,000 fewer 

declaration submissions annually 

following full revision of the USML. 

This would result in a burden reduction 

of 1,000 hours annually. 

List of Subjects 

22 CFR Parts 120 and 121 

Arms and munitions, Classified 

information, Exports. 

22 CFR Part 124 

Arms and munitions, Exports, 

Technical assistance. 

Accordingly, for the reasons set forth 

above, Title 22, Chapter I, Subchapter 

M, parts 120, 121, and 124 are amended 

as follows: 

PART 120—PURPOSE AND 

DEFINITIONS 

■ 1. The authority citation for part 120 

continues to read as follows: 

Authority: Sections 2, 38, and 71, Pub. L. 

90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2797); 22 U.S.C. 2794; 22 U.S.C. 2651a; Pub. 

L. 105–261, 112 Stat. 1920; Pub. L. 111–266; 

Section 1261, Pub. L. 112–239; E.O. 13637, 

78 FR 16129. 

■ 2. Section 120.10 is amended by 

revising paragraph (b) to read as follows: 

§ 120.10 Technical data. 

* * * * * 

(b) The definition in paragraph (a) of 

this section does not include 

information concerning general 

scientific, mathematical, or engineering 

principles commonly taught in schools, 

colleges, and universities, or 

information in the public domain as 

defined in § 120.11 of this subchapter or 

telemetry data as defined in note 3 to 

Category XV(f) of part 121 of this 

subchapter. It also does not include 

basic marketing information on function 

or purpose or general system 

descriptions of defense articles. 

PART 121—THE UNITED STATES 

MUNITIONS LIST 

■ 3. The authority citation for part 121 

continues to read as follows: 

Authority: Secs. 2, 38, and 71, Pub. L. 90– 

629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2797); 22 U.S.C. 2651a; Pub. L. 105–261, 112 

Stat. 1920; Section 1261, Pub. L. 112–239; 

E.O. 13637, 78 FR 16129. 

■ 4. Section 121.1 is amended by 

revising paragraph (i) of U.S. Munitions 

List Category IV and revising Category 

XV, to read as follows: 

§ 121.1 General. The United States 

Munitions List. 

* * * * * 

Category IV— Launch Vehicles, Guided 

Missiles, Ballistic Missiles, Rockets, 

Torpedoes, Bombs, and Mines 

* * * * * 

(i) Technical data (see § 120.10 of this 

subchapter) and defense services (see 

§ 120.9 of this subchapter) directly 

related to the defense articles 

enumerated in paragraphs (a) through 

(h) of this category and classified 

technical data directly related to items 

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27186 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

controlled in ECCNs 0A604, 0B604, 

0D604, 9A604, 9B604, or 9D604 and 

defense services using the classified 

technical data. Defense services include 

the furnishing of assistance (including 

training) in the integration of a satellite 

or spacecraft to a launch vehicle, 

including both planning and onsite 

support, regardless of the jurisdiction, 

ownership, or origin of the satellite or 

spacecraft, or whether technical data is 

used. It also includes the furnishing of 

assistance (including training) in the 

launch failure analysis of a launch 

vehicle, regardless of the jurisdiction, 

ownership, or origin of the launch 

vehicle, or whether technical data is 

used. (See § 125.4 of this subchapter for 

exemptions, and § 124.15 of this 

subchapter for special export controls 

for spacecraft and spacecraft launches.) 

(MT for technical data and defense 

services related to articles designated as 

such.) 

* * * * * 

Category XV— Spacecraft and Related 

Articles 

(a) Spacecraft, including satellites and 

space vehicles, whether designated 

developmental, experimental, research, 

or scientific, or having a commercial, 

civil, or military end-use, that: 

*(1) Are specially designed to mitigate 

effects (e.g., scintillation) of or for 

detection of a nuclear detonation; 

*(2) Autonomously track ground, 

airborne, missile, or space objects in 

real-time using imaging, infrared, radar, 

or laser systems; 

*(3) Conduct signals intelligence 

(SIGINT) or measurement and 

signatures intelligence (MASINT); 

*(4) Are specially designed to be used 

in a constellation or formation that 

when operated together, in essence or 

effect, form a virtual satellite (e.g., 

functioning as if one satellite) with the 

characteristics or functions of other 

items in paragraph (a); 

*(5) Are anti-satellite or antispacecraft (e.g., kinetic, RF, laser, 

charged particle); 

*(6) Have space-to-ground weapons 

systems (e.g., kinetic or directed 

energy); 

*(7) Have any of the following electrooptical remote sensing capabilities or 

characteristics: 

(i) Electro-optical visible and near 

infrared (VNIR) (i.e., 400nm to 1,000nm) 

or infrared (i.e., greater than 1,000nm to 

30,000nm) with less than 40 spectral 

bands and having a clear aperture 

greater than 0.35 meters; 

(ii) Electro-optical hyperspectral with 

40 spectral bands or more in the VNIR, 

short-wavelength infrared (SWIR) (i.e., 

greater than 1,000nm to 2,500nm) or any 

combination of the aforementioned and 

having a Ground Sample Distance (GSD) 

less than 30 meters; 

(iii) Electro-optical hyperspectral with 

40 spectral bands or more in the midwavelength infrared (MWIR) (i.e., 

greater than 2,500nm to 5,500nm) 

having a narrow spectral bandwidth of 

Dl less than or equal to 20nm full width 

at half maximum (FWHM) or having a 

wide spectral bandwidth with Dl greater 

than 20nm FWHM and a GSD less than 

200 meters; or 

(iv) Electro-optical hyperspectral with 

40 spectral bands or more in the longwavelength infrared (LWIR) (i.e., greater 

than 5,500nm to 30,000nm) having a 

narrow spectral bandwidth of Dl less 

than or equal to 50nm FWHM or having 

a wide spectral bandwidth with Dl 

greater than 50nm FWHM and a GSD 

less than 500 meters; 

Note 1 to paragraph (a)(7): Ground Sample 

Distance (GSD) is measured from a 

spacecraft’s nadir (i.e., local vertical) 

position. 

Note 2 to paragraph (a)(7): Optical remote 

sensing spacecraft or satellite spectral 

bandwidth is the smallest difference in 

wavelength (i.e., Dl) that can be 

distinguished at full width at half maximum 

(FWHM) of wavelength l. 

Note 3 to paragraph (a)(7): An optical 

satellite or spacecraft is not Significant 

Military Equipment (see § 120.7 of this 

subchapter) if non-earth pointing. 

* (8) Have radar remote sensing 

capabilities or characteristics (e.g., 

active electronically scanned array 

(AESA), synthetic aperture radar (SAR), 

inverse synthetic aperture radar (ISAR), 

ultra-wideband SAR), except those 

having a center frequency equal to or 

greater than 1 GHz but less than or equal 

to 10 GHz and having a bandwidth less 

than 300 MHz; 

(9) Provide Positioning, Navigation, 

and Timing (PNT) signals; 

Note to paragraph (a)(9): This paragraph 

does not control a satellite or spacecraft that 

provides only a differential correction 

broadcast for the purposes of positioning, 

navigation, or timing. 

(10) Provide space-based logistics, 

assembly, or servicing of any spacecraft 

(e.g., refueling) and have integrated 

propulsion other than that required for 

attitude control; 

(11) [Reserved] 

(12) Provide for sub-orbital, Earth 

orbital, cis-lunar, lunar, deep space (i.e., 

space beyond lunar orbit), and planetary 

spaceflight, or in-space human 

habitation, which have integrated 

propulsion other than that required for 

attitude control; or 

* (13) Are classified, contain 

classified software or hardware, are 

manufactured using classified 

production data, or are being developed 

using classified information (e.g., having 

classified requirements, specifications, 

functions, or operational characteristics 

or include classified cryptographic 

items controlled under USML Category 

XIII of this subchapter). ‘‘Classified’’ 

means classified pursuant to Executive 

Order 13526, or predecessor order, and 

a security classification guide developed 

pursuant thereto or equivalent, or to the 

corresponding classification rules of 

another government or international 

organization. 

Note 1 to paragraph (a): Spacecraft not 

identified in this paragraph are subject to the 

EAR (see ECCNs 9A004 and 9A515). 

Spacecraft described in ECCNs 9A004 and 

9A515 remain subject to the EAR even if 

defense articles described on the USML are 

incorporated therein, except when such 

incorporation results in a spacecraft 

described in this paragraph. 

Note 2 to paragraph (a): This paragraph 

does not control (a) the International Space 

Station (ISS) and its specially designed (as 

defined in the EAR) parts and components, 

which are subject to the EAR, or (b) those 

articles for the ISS that are determined to be 

subject to the EAR via a commodity 

jurisdiction determination (see § 120.4 of this 

subchapter). Use of a defense article on the 

ISS that was not specially designed (as 

defined in the EAR) for the ISS does not 

cause the item to become subject to the EAR. 

Note 3 to paragraph (a): Attitude control 

is the exercise of control over spacecraft 

orientation (e.g., pointing) within an orbital 

plane, which may include orbit maintenance 

using the attitude control thrusters. 

(b) Ground control systems or training 

simulators, specially designed for 

telemetry, tracking, and control (TT&C) 

of spacecraft in paragraph (a) of this 

category. 

Note to paragraph (b): Parts, components, 

accessories, attachments, equipment, or 

systems that are common to ground control 

systems or training simulators controlled in 

this paragraph and those that are used for 

spacecraft not controlled in paragraph (a) of 

this category are subject to the EAR. 

(c) Global Positioning System (GPS) 

receiving equipment specially designed 

for military application, or GPS 

receiving equipment with any of the 

following characteristics, and specially 

designed parts and components 

therefor: 

(1) Specially designed for encryption 

or decryption (e.g., Y-Code) of GPS 

precise positioning service (PPS) signals 

(MT if designed or modified for airborne 

applications); 

(2) [Reserved] 

(3) Specially designed for use with a 

null steering antenna, an electronically 

steerable antenna, or including a null 

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steering antenna designed to reduce or 

avoid jamming signals (MT if designed 

or modified for airborne applications); 

(4) Specially designed for use with 

rockets, missiles, SLVs, drones, or 

unmanned air vehicle systems capable 

of delivering at least a 500 kg payload 

to a range of at least 300 km (MT if 

designed or modified for rockets, 

missiles, SLVs, drones, or unmanned air 

vehicle systems controlled in this 

subchapter). 

Note to paragraph (c)(4): ‘‘Payload’’ is the 

total mass that can be carried or delivered by 

the specified rocket, missile, SLV, drone or 

unmanned aerial vehicle that is not used to 

maintain flight. For definition of ‘‘range’’ as 

it pertains to rocket systems, see note 1 to 

paragraph (a) of USML Category IV For 

definition of ‘‘range’’ as it pertains to aircraft 

systems, see note to paragraph (a) of USML 

Category VIII. 

Note to paragraph (c): The articles 

described in this paragraph are subject to the 

EAR when, prior to export, reexport, 

retransfer, or temporary import, they are 

integrated into and included as an integral 

part of an item subject to the EAR. 

(d) [Reserved] 

(e) Spacecraft parts, components, 

accessories, attachments, equipment, or 

systems, as follows: 

(1) Antenna systems specially 

designed for spacecraft that: 

(i) Have a dimension greater than 25 

meters in diameter or length of the 

major axis; 

(ii) Employ active electronic scanning; 

(iii) Are adaptive beam forming; or 

(iv) Are for interferometric radar; 

(2) Space-qualified optics (i.e., lens or 

mirror), including optical coating, 

having active properties (e.g., adaptive, 

deformable) with a largest lateral clear 

aperture dimension greater than 0.35 

meters; 

(3) Space-qualified focal plane arrays 

(FPA) having a peak response in the 

wavelength range exceeding 900nm and 

readout integrated circuit (ROIC), 

whether separate or integrated, specially 

designed therefor; 

(4) Space-qualified mechanical (i.e., 

active) cryocooler or active cold finger, 

and associated control electronics 

specially designed therefor; 

(5) Space-qualified active vibration 

suppression, including active isolation 

and active dampening, and associated 

control electronics therefor; 

(6) Optical bench assemblies specially 

designed to enable spacecraft to meet or 

exceed the parameters described in 

paragraph (a) of this category; 

(7) Space-qualified kinetic or 

directed-energy systems (e.g., RF, laser, 

charged particle) specially designed for 

spacecraft in paragraph (a)(5) or (a)(6) of 

this category, and specially designed 

parts and components therefor (e.g., 

power conditioning and beam-handling/ 

switching, propagation, tracking, and 

pointing equipment); 

(8) [Reserved] 

(9) Space-qualified cesium, rubidium, 

hydrogen maser, or quantum (e.g., based 

upon Al, Hg, Yb, Sr, Be Ions) atomic 

clocks, and specially designed parts and 

components therefor; 

(10) Attitude determination and 

control systems, and specially designed 

parts and components therefor, that 

provide a spacecraft’s geolocation 

accuracy, without using Ground 

Location Points, better than or equal to: 

(i) 5 meters (CE90) from low earth 

orbit (LEO); 

(ii) 30 meters (CE90) from medium 

earth orbit (MEO); 

(iii) 150 meters (CE90) from 

geosynchronous orbit (GEO); or 

(iv) 225 meters (CE90) from high earth 

orbit (HEO); 

(11) Space-based systems, and 

specially designed parts and 

components therefor, as follows: 

(i) Nuclear reactors and associated 

power conversion systems (e.g., liquid 

metal or gas-cooled fast reactors); 

(ii) Radioisotope-based power systems 

(e.g., radioisotope thermoelectric 

generators); or 

(iii) Nuclear thermal propulsion 

systems (e.g., solid core, liquid core, gas 

core fission; 

(12) Thrusters (e.g., rocket engines) 

that provide greater than 150 lbf (i.e., 

667.23 N) vacuum thrust (MT for rocket 

motors or engines having a total impulse 

capacity equal to or greater than 

8.41x10∧5 newton seconds); 

(13) Control moment gyroscope 

(CMG) specially designed for spacecraft; 

(14) Space-qualified monolithic 

microwave integrated circuits (MMIC) 

that combine transmit and receive (T/R) 

functions on a single die as follows: 

(i) Having a power amplifier with 

maximum saturated peak output power 

(in watts), Psat, greater than 200 divided 

by the maximum operating frequency 

(in GHz) squared [Psat >200 W*GHz2/ 

fGHz2]; or 

(ii) Having a common path (e.g., phase 

shifter-digital attenuator) circuit with 

greater than 3 bits phase shifting at 

operating frequencies 10 GHz or below, 

or greater than 4 bits phase shifting at 

operating frequencies above 10 GHz; 

(15) Space-qualified oscillator for 

radar in paragraph (a) of this category 

with phase noise less than ¥120 dBc/ 

Hz + (20 log10(RF) (in GHz)) measured 

at 2 KHz*RF (in GHz) from carrier; 

(16) Space-qualified star tracker or 

star sensor with angular accuracy less 

than or equal to 1 arcsec (1-Sigma) per 

star coordinate, and a tracking rate equal 

to or greater than 3.0 deg/sec, and 

specially designed parts and 

components therefor (MT); 

*(17) Primary, secondary, or hosted 

payload that performs any of the 

functions described in paragraph (a) of 

this category; 

Note 1 to paragraph (e)(17): Primary 

payload is that complement of equipment 

designed from the outset to accomplish the 

prime mission function of the spacecraft 

payload mission set. The primary payload 

may operate independently from the 

secondary payload(s). Secondary payload is 

that complement of equipment designed from 

the outset to be fully integrated into the 

spacecraft payload mission set. The 

secondary payload may operate separately 

from the primary payload. Hosted payload is 

a complement of equipment or sensors that 

uses the available or excess capacity (mass, 

volume, power, etc.) of a spacecraft to 

accommodate an additional, independent 

mission. The hosted payload may share the 

spacecraft bus support infrastructure. The 

hosted payload performs an additional, 

independent mission which does not dictate 

control or operation of the spacecraft. A 

hosted payload is not capable of operating as 

an independent spacecraft. Spacecraft bus 

(distinct from the spacecraft payload), 

provides the support infrastructure of the 

spacecraft (e.g., command and data handling, 

communications and antenna(s), electrical 

power, propulsion, thermal control, attitude 

and orbit control, guidance, navigation and 

control, structure and truss, life support (for 

crewed mission)) and location (e.g., 

attachment, interface) for the spacecraft 

payload. Spacecraft payload is that 

complement of equipment attached to the 

spacecraft bus that performs a particular 

mission in space (e.g., communications, 

observation, science). 

Note 2 to paragraph (e)(17): An ECCN 

9A004 or ECCN 9A515.a spacecraft remains 

a spacecraft subject to the EAR even when 

incorporating a hosted payload performing a 

function described in paragraph (a) of this 

category. All spacecraft that incorporate 

primary or secondary payloads that perform 

a function described in paragraph (a) of this 

category are controlled by that paragraph. 

*(18) Secondary or hosted payload, 

and specially designed parts and 

components therefor, developed with 

Department of Defense-funding; 

Note 1 to paragraph (e)(18): This 

paragraph does not control payloads that are 

(a) determined to be subject to the EAR via 

a commodity jurisdiction determination (see 

§ 120.4 of this subchapter), or (b) identified 

in the relevant Department of Defense 

contract or other funding authorization or 

agreement as being developed for both 

military and either civil or commercial 

applications. 

Note 2 to paragraph (e)(18): This 

paragraph is applicable only to those 

contracts or funding authorizations or 

agreements that are dated XXXX XX, 2015, or 

later. 

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(19) Spacecraft heat shields or heat 

sinks specially designed for atmospheric 

entry or re-entry, and specially designed 

parts and components therefor (MT if 

usable in rockets, SLVs, missiles, 

drones, or UAVs capable of delivering a 

payload of at least 500 kg to a range of 

at least 300 km); 

Note to paragraph (e)(19): ‘‘Payload’’ is the 

total mass that can be carried or delivered by 

the specified rocket, SLV, missile, drone, or 

UAV that is not used to maintain flight. For 

definition of ‘‘range’’ as it pertains to aircraft 

systems, see note to paragraph (a) of USML 

Category VIII. For definition of ‘‘range’’ as it 

pertains to rocket systems, see note 1 to 

paragraph (a) of USML Category IV. 

(20) Equipment modules, stages, or 

compartments that contain propulsion 

other than that required for attitude 

control and can be separated or 

jettisoned from another spacecraft (see 

note 3 to paragraph (a) of this category); 

or 

*(21) Any part, component, accessory, 

attachment, equipment, or system that: 

(i) Is classified; 

(ii) Contains classified software; or 

(iii) Is being developed using 

classified information. 

Note to paragraph (e)(21): ‘‘Classified’’ 

means classified pursuant to Executive Order 

13526, or predecessor order, and a security 

classification guide developed pursuant 

thereto or equivalent, or to the corresponding 

classification rules of another government or 

international organization. 

Note 1 to paragraph (e): Parts, 

components, accessories, attachments, 

equipment, or systems specially designed for 

spacecraft or other articles enumerated in 

this category but not listed in paragraph (e) 

are subject to the EAR. 

Note 2 to paragraph (e): The articles 

described in this paragraph are subject to the 

EAR when, prior to export, reexport, 

retransfer, or temporary import, they are 

integrated into and included as an integral 

part of an item subject to the EAR (see note 

2 to paragraph (e)(17) of this category). 

Note 3 to paragraph (e): For the purposes 

of this paragraph, an article is space-qualified 

if it is designed, manufactured, or qualified 

through successful testing, for operation at 

altitudes greater than 100 km above the 

surface of the Earth. The use of an altitude 

of 100 km above the surface of the Earth in 

this paragraph does not represent a legal 

demarcation between national air space and 

outer space under United States or 

international law. 

Note 4 to paragraph (e): (1) A 

determination that a specific article (or 

commodity) (e.g., by product serial number) 

is space-qualified by virtue of testing alone 

does not mean that other articles in the same 

production run or model series are spacequalified if not individually tested. (2) 

‘‘Article’’ is synonymous with ‘‘commodity,’’ 

as defined in EAR § 772.1. (3) A specific 

article not designed or manufactured for use 

at altitudes greater than 100 km above the 

surface of the Earth is not space-qualified 

before it is successfully tested. (4) The terms 

‘‘designed’’ and ‘‘manufactured’’ in this 

definition are synonymous with ‘‘specially 

designed.’’ 

(f) Technical data (see § 120.10 of this 

subchapter) and defense services (see § 120.9 

of this subchapter) directly related to the 

defense articles enumerated in paragraphs (a) 

through (e) of this category and classified 

technical data directly related to items 

controlled in ECCNs 9A515, 9B515, or 9D515 

and defense services using the classified 

technical data. Defense services include the 

furnishing of assistance (including training) 

in the integration of a satellite or spacecraft 

to a launch vehicle, including both planning 

and onsite support, regardless of the 

jurisdiction, ownership, or origin of the 

satellite or spacecraft, or whether technical 

data is used. It also includes the furnishing 

of assistance (including training) in the 

launch failure analysis of a satellite or 

spacecraft, regardless of the jurisdiction, 

ownership, or origin of the satellite of 

spacecraft, or whether technical data is used. 

(See § 125.4 of this subchapter for 

exemptions, and § 124.15 of this subchapter 

for special export controls for satellites and 

satellite launches.) (MT for technical data 

and defense services related to articles 

designated as such.) 

Note 1 to paragraph (f): The technical data 

control of this paragraph does not apply to 

technical data directly related to articles 

enumerated in paragraphs (c) or (e) of this 

category when such articles are integrated 

into and included as an integral part of a 

satellite subject to the EAR. For controls in 

these circumstances, see ECCN 9E515. This 

includes that level of technical data 

(including marketing data) necessary and 

reasonable for a purchaser to have assurance 

that a U.S. built item intended to operate in 

space has been designed, manufactured, and 

tested in conformance with specified contract 

requirements (e.g., operational performance, 

reliability, lifetime, product quality, or 

delivery expectations) as well as data 

necessary for normal orbit satellite 

operations, to evaluate in-orbit anomalies, 

and to operate and maintain associated 

ground station equipment (except encryption 

hardware). 

Note 2 to paragraph (f): Activities and 

technology/technical data directly related to 

or required for the spaceflight (e.g., suborbital, orbital, lunar, interplanetary, or 

otherwise beyond Earth orbit) passenger or 

participant experience, regardless of whether 

the passenger or participant experience is for 

space tourism, scientific or commercial 

research, commercial manufacturing/

production activities, educational, media, or 

commercial transportation purposes, are not 

subject to the ITAR or the EAR. Such 

activities and technology/technical data 

include those directly related to or required 

for: (a) Spacecraft access, ingress, and egress, 

including the operation of all spacecraft 

doors, hatches, and airlocks; (b) physiological 

training (e.g., human-rated centrifuge training 

or parabolic flights, pressure suit or spacesuit 

training/operation); (c) medical evaluation or 

assessment of the spaceflight passenger or 

participant; (d) training for and operation by 

the passenger or participant of health and 

safety related hardware (e.g., seating, 

environmental control and life support, 

hygiene facilities, food preparation, exercise 

equipment, fire suppression, 

communications equipment, safety-related 

clothing or headgear) or emergency 

procedures; (e) viewing of the interior and 

exterior of the spacecraft or terrestrial mockups; (f) observing spacecraft operations (e.g., 

pre-flight checks, landing, in-flight status); (g) 

training in spacecraft or terrestrial mock-ups 

for connecting to or operating passenger or 

participant equipment used for purposes 

other than operating the spacecraft; or (h) 

donning, wearing, or utilizing the passenger’s 

or participant’s flight suit, pressure suit, or 

spacesuit, and personal equipment. 

Note 3 to paragraph (f): Neither paragraph 

(f) nor ECCN 9E515 controls the data 

transmitted to or from a satellite or 

spacecraft, whether real or simulated, when 

limited to information about the health, 

operational status, or function of, or 

measurements or raw sensor output from, the 

spacecraft, spacecraft payload(s), or their 

associated subsystems or components. Such 

data or technology is subject to the EAR and 

is designated EAR99. Examples of such data 

and technology, which are commonly 

referred to as ‘‘housekeeping data,’’ include 

(a) system, hardware, component 

configuration, and operation status 

information pertaining to temperatures, 

pressures, power, currents, voltages, and 

battery charges; (b) spacecraft or payload 

orientation or position information, such as 

state vector or ephemeris information; (c) 

payload raw mission or science output, such 

as images, spectra, particle measurements, or 

field measurements; (d) command responses; 

(e) accurate timing information; and (f) link 

budget data. The act of processing such 

telemetry data—i.e., converting raw data into 

engineering units or readable products—or 

encrypting it does not, in and of itself, cause 

the telemetry data to become subject to the 

ITAR or to ECCN 9E515. All classified 

technical data directly related to items 

controlled in USML Category XV or ECCNs 

9A515, and defense services using the 

classified technical data, remain subject to 

the ITAR. This note does not affect controls 

in paragraph (f), ECCN 9D515, or ECCN 

9E515 on software source code or commands 

that control a spacecraft, payload, or 

associated subsystem. 

(g)–(w) [Reserved] 

(x) Commodities, software, and 

technology subject to the EAR (see 

§ 120.42 of this subchapter) used in or 

with defense articles controlled in this 

category. 

Note to paragraph (x): Use of this 

paragraph is limited to license applications 

for defense articles controlled in this category 

where the purchase documentation also 

includes commodities, software, or 

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Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27189 

technology subject to the EAR (see 

§ 123.21(b) of this subchapter). 

* * * * * 

PART 124—AGREEMENTS, OFFSHORE PROCUREMENT, AND OTHER 

DEFENSE SERVICES 

■ 5. The authority citation for part 124 

is revised to read as follows: 

Authority: Secs. 2, 38, and 71, Pub. L. 90– 

629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2797); 22 U.S.C. 2651a; 22 U.S.C. 2776; 

Section 1514, Pub. L. 105–261; Pub. L. 111– 

266; Section 1261, Pub. L. 112–239; E.O. 

13637, 78 FR 16129. 

■ 6. Section 124.15 is amended by 

revising paragraphs (a) introductory 

text, (b) introductory text, (b)(2), and (c), 

to read as follows: 

§ 124.15 Special Export Controls for 

Defense Articles and Defense Services 

Controlled Under Category XV: Space 

Systems and Space Launches. 

(a) The export of a satellite or related 

item controlled by Category XV of part 

121 of this subchapter or any defense 

service controlled by this subchapter 

associated with the launch in, or by 

nationals of, a country that is not a 

member of the North Atlantic Treaty 

Organization (NATO) or a major nonNATO ally of the United States always 

requires special export controls, in 

addition to other export controls 

required by this subchapter, as follows: 

* * * * * 

(b) Mandatory licenses for launch 

failure (crash) investigations or analyses 

of any satellite controlled pursuant to 

this subchapter or subject to the EAR: In 

the event of a failure of a launch from 

a foreign country (including a post 

liftoff failure to reach proper orbit)— 

* * * * * 

(2) Officials of the Department of 

Defense must monitor all activities 

associated with the investigation or 

analyses to insure against unauthorized 

transfer of technical data or services and 

U.S. persons must follow the procedures 

set forth in paragraphs (a)(1) and (a)(2) 

of this section. 

(c) Although Public Law 105–261 

does not require the application of 

special export controls for the launch of 

U.S.-origin satellites and components 

from or by nationals of countries that 

are members of NATO or major nonNATO allies, such export controls may 

nonetheless be applied, in addition to 

any other export controls required 

under this subchapter, as appropriate in 

furtherance of the security and foreign 

policy of the United States. Further, the 

export of any article or defense service 

controlled under this subchapter to any 

destination may also require that the 

special export controls identified in 

paragraphs (a)(1) and (a)(2) of this 

section be applied in furtherance of the 

security and foreign policy of the United 

States. 

* * * * * 

Rose E. Gottemoeller, 

Acting Under Secretary, Arms Control and 

International Security, Department of State. 

[FR Doc. 2014–10806 Filed 5–12–14; 8:45 am] 

BILLING CODE 4710–25–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Indian Affairs 

25 CFR Part 23 

[134A2100DD/AAK3000000/

A0H501010.999900] 

RIN 1076–AF21 

Change of Address; Indian Child 

Welfare Act 

AGENCY: Bureau of Indian Affairs, 

Interior. 

ACTION: Final rule; technical 

amendment. 

SUMMARY: The Bureau of Indian Affairs 

(BIA) is amending its regulations to 

reflect a change of address for filing 

copies of Indian Child Welfare Act 

(ICWA) notices to the Eastern Regional 

Director and to update the titles of 

‘‘Area Directors’’ to ‘‘Regional 

Directors.’’ This technical amendment is 

a nomenclature change that updates and 

corrects BIA officials’ titles and the 

address for filing ICWA notices to the 

Eastern Regional Director. 

DATES: Effective May 13, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Appel, Director, Office of 

Regulatory Affairs & Collaborative 

Action, (202) 273–4680; 

elizabeth.appel@bia.gov. 

SUPPLEMENTARY INFORMATION: This rule 

updates the address for the Eastern 

Regional Office, which was printed in 

error. BIA employees have ensured that 

notices sent to the printed address have 

been forwarded to the BIA authorities, 

but this rule will make the forwarding 

unnecessary. This rule also updates all 

references to ‘‘Area Director’’ in 25 CFR 

part 23 to be ‘‘Regional Director’’ in 

accordance with the nomenclature 

currently in use. 

Procedural Requirements 

A. Regulatory Planning and Review 

(E.O. 12866 and 13563) 

Executive Order (E.O.) 12866 provides 

that the Office of Information and 

Regulatory Affairs (OIRA) at the Office 

of Management and Budget (OMB) will 

review all significant rules. OIRA has 

determined that this rule is not 

significant. E.O. 13563 reaffirms the 

principles of E.O. 12866 while calling 

for improvements in the nation’s 

regulatory system to promote 

predictability, to reduce uncertainty, 

and to use the best, most innovative, 

and least burdensome tools for 

achieving regulatory ends. The E.O. 

directs agencies to consider regulatory 

approaches that reduce burdens and 

maintain flexibility and freedom of 

choice for the public where these 

approaches are relevant, feasible, and 

consistent with regulatory objectives. 

E.O. 13563 emphasizes further that 

regulations must be based on the best 

available science and that the 

rulemaking process must allow for 

public participation and an open 

exchange of ideas. We have developed 

this rule in a manner consistent with 

these requirements. This rule is also 

part of the Department’s commitment 

under the Executive Order to reduce the 

number and burden of regulations and 

provide greater notice and clarity to the 

public. 

B. Regulatory Flexibility Act 

The Department of the Interior 

certifies that this rule will not have a 

significant economic effect on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.). 

C. Small Business Regulatory 

Enforcement Fairness Act 

This rule is not a major rule under 5 

U.S.C. 804(2), the Small Business 

Regulatory Enforcement Fairness Act. It 

will not result in the expenditure by 

State, local, or tribal governments, in the 

aggregate, or by the private sector of 

$100 million or more in any one year. 

The rule’s requirements will not result 

in a major increase in costs or prices for 

consumers, individual industries, 

Federal, State, or local government 

agencies, or geographic regions. Nor will 

this rule have significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

the ability of the U.S.-based enterprises 

to compete with foreign-based 

enterprises. 

D. Unfunded Mandates Reform Act 

This rule does not impose an 

unfunded mandate on State, local, or 

tribal governments or the private sector 

of more than $100 million per year. The 

rule does not have a significant or 

unique effect on State, local, or tribal 

governments or the private sector. A 

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