Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 14335 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety. 

Adoption of the Amendment 

■ Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new AD: 

2010–07–04 Empresa Brasileira de 

Aeronautica S.A. (EMBRAER): 

Amendment 39–16248. Docket No. 

FAA–2010–0274; Directorate Identifier 

2010–NM–055–AD. 

Effective Date 

(a) This airworthiness directive (AD) 

becomes effective April 9, 2010. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Empresa Brasileira 

de Aeronautica S.A. (EMBRAER) Model ERJ 

170–100 LR, –100 STD, –100 SE, and –100 

SU airplanes; Model ERJ 170–200 LR, –200 

SU, and –200 STD airplanes; Model ERJ 190– 

100 STD, –100 LR, –100 ECJ, and –100 IGW 

airplanes; and Model ERJ 190–200 STD, –200 

LR, and –200 IGW airplanes; certificated in 

any category; equipped with Air Management 

System (AMS) controller cards having part 

number 1001050–1–YYY or 1001050–2–YYY 

containing software version Black Label 08 or 

lower installed. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 26: Fire protection. 

Reason 

(e) The mandatory continued airworthiness 

information (MCAI) states: 

It has been determined that due to an 

intermittent communication between AMS 

[Air Management System] controller cards 

and both Secondary Power Distribution 

Assemblies (SPDAs) the message ‘‘RECIRC 

SMK DET FAIL’’ is displayed in the Engine 

Indication and Crew Alerting System 

(EICAS). This communication failure could 

result in loss of automatic activation of 

engine inlet ice protection system when in 

ice condition. In this situation the caution 

messages ‘‘A–I Eng 1 Fail’’ and ‘‘A–I Eng 2 

Fail’’ will be displayed and if the flight crews 

do not follow the associated procedures ice 

may accrete in the engines inlet and cause a 

dual engine shut down. 

* * * * * 

The required action includes revising the 

Limitations section of the airplane flight 

manual to prohibit dispatch with message 

‘‘RECIRC SMK DET FAIL’’ displayed on the 

ground unless troubleshooting action 

confirms the message has not been triggered 

due to a failure of an AMS controller card. 

Compliance 

(f) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Actions 

(g) Within 10 days after the effective date 

of this AD, revise the Limitations section of 

the airplane flight manual (AFM) to include 

the following statement. This may be done by 

inserting a copy of this AD in the AFM. 

‘‘Dispatch with the message ‘RECIRC SMK 

DET FAIL’ displayed on the ground is 

prohibited unless troubleshooting action 

confirms the message has not been triggered 

due to a failure of an AMS controller card.’’ 

Note 1: When a statement identical to that 

in paragraph (g) of this AD has been included 

in the general revisions of the AFM, the 

general revisions may be inserted into the 

AFM, and the copy of this AD may be 

removed from the AFM. 

Note 2: The limitation and procedure 

specified in paragraph (g) of this AD is an 

interim solution until a final action is 

identified, at which time the FAA might 

consider further rulemaking. 

FAA AD Differences 

Note 3: This AD differs from the MCAI 

and/or service information as follows: No 

differences. 

Other FAA AD Provisions 

(h) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

Send information to ATTN: Cindy Ashforth, 

Aerospace Engineer, International Branch, 

ANM–116, Transport Airplane Directorate, 

FAA, 1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone (425) 

227–2768; fax (425) 227–1149. Before using 

any approved AMOC on any airplane to 

which the AMOC applies, notify your 

principal maintenance inspector (PMI) or 

principal avionics inspector (PAI), as 

appropriate, or lacking a principal inspector, 

your local Flight Standards District Office. 

The AMOC approval letter must specifically 

reference this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget (OMB) has 

approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

(i) Special Flight Permits: We are 

prohibiting the issuance of special flight 

permits to operate the airplane to a location 

to replace the AMS controller card, unless 

the following condition is met: The flight 

crew must manually engage the engine antiice system if icing conditions occur during 

any ferry flight. 

Related Information 

(j) Refer to MCAI Brazilian Airworthiness 

Directives 2010–01–01 and 2010–01–02, both 

effective January 31, 2010, for related 

information. 

Material Incorporated by Reference 

(k) None. 

Issued in Renton, Washington, on March 

16, 2010. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–6518 Filed 3–24–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 740, 742, 748, and 774 

[Docket No. 0906041008–91452–01] 

RIN 0694–AE64 

Revisions to the Export Administration 

Regulations To Enhance U.S. 

Homeland Security: Addition of Three 

Export Control Classification Numbers 

(ECCNs) and License Review Policy 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This rule amends the Export 

Administration Regulations (EAR) by 

revising controls to advance U.S. 

homeland security and foreign policy 

interests. The revisions include 

language that should facilitate public 

understanding of how concealed object 

detection equipment is treated for 

purposes of U.S. Government export 

controls, in particular by detailing the 

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14336 Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 

technical parameters of concealed object 

detection equipment that is subject to 

the Export Administration Regulations. 

These amendments reflect issues 

identified by an interagency working 

group that is reviewing export control 

issues related to homeland security. The 

interagency working group is made up 

of representatives from the Departments 

of Commerce, Defense, Homeland 

Security and State. The purpose of the 

interagency working group is to ensure 

that appropriate export controls are in 

place to protect U.S. export control 

interests for homeland security related 

items, while at the same time facilitating 

the development, production and use of 

items that will enhance U.S. homeland 

security and the homeland security of 

key U.S. allies. To help accomplish 

these objectives, this rule adds three 

new entries to the Commerce Control 

List (CCL) to control certain concealed 

object detection equipment operating in 

the frequency range from 30 GHz to 

3000 GHz and related software and 

technology. In addition, to facilitate the 

export and reexport of these items to 

certain trusted destinations and endusers, this rule adds new license review 

criteria to the EAR to create a 

presumption of approval for certain 

cooperating countries provided the 

items are being made to a government 

end-user or to a person designated by 

the government end-user pursuant to 

contract. 

DATES: Effective Date: This rule is 

effective March 25, 2010. Although 

there is no formal comment period, 

public comments on this regulation are 

welcome on a continuing basis. 

ADDRESSES: You may submit comments, 

identified by RIN 0694–AE64, by any of 

the following methods: 

E-mail: publiccomments@bis.doc.gov. 

Include ‘‘RIN 0694–AE64’’ in the subject 

line of the message. 

Fax: (202) 482–3355. Please alert the 

Regulatory Policy Division, by calling 

(202) 482–2440, if you are faxing 

comments. 

Mail or Hand Delivery/Courier: 

Timothy Mooney, U.S. Department of 

Commerce, Bureau of Industry and 

Security, Regulatory Policy Division, 

14th St. & Pennsylvania Avenue, NW., 

Room 2705, Washington, DC 20230, 

Attn: RIN 0694–AE64. 

Send comments regarding the 

collection of information associated 

with this rule, including suggestions for 

reducing the burden, to Jasmeet K. 

Seehra, Office of Management and 

Budget (OMB), by e-mail to 

Jasmeet_K._Seehra@omb.eop.gov, or by 

fax to (202) 395–7285; and to the 

Regulatory Policy Division, Bureau of 

Industry and Security, Department of 

Commerce, 14th St. & Pennsylvania 

Avenue, NW., Room 2705, Washington, 

DC 20230. Comments on this collection 

of information should be submitted 

separately from comments on the final 

rule (i.e., RIN 0694–AE64)—all 

comments on the latter should be 

submitted by one of the three methods 

outlined above. 

FOR FURTHER INFORMATION CONTACT: 

Ronald Rolfe, Senior Engineer/Licensing 

Officer, Nuclear Missile Technology 

Controls Division, Office of 

Nonproliferation and Treaty 

Compliance, telephone: (202) 482–4563. 

SUPPLEMENTARY INFORMATION: 

Background 

The Export Administration 

Regulations (EAR) protect the national 

security and foreign policy interests of 

the United States, which includes 

protecting the homeland security 

interests of the United States. BIS has 

previously adapted the EAR to address 

homeland security related export 

control issues through measures such as 

expanding the Entity List to add 

§ 744.11 (License Requirements that 

Apply to Entities Acting Contrary to the 

National Security or Foreign Policy 

Interests of the United States to the 

EAR), see 73 FR 49311, Aug. 21, 2008, 

and adding restrictions on certain 

designated persons in § 744.8 

(Restrictions on exports and reexports to 

persons designated pursuant to 

Executive Order 13382—Blocking 

Property of Weapons of Mass 

Destruction Proliferators and Their 

Supporters), see 74 FR 2355, Jan. 15, 

2009. An interagency working group on 

homeland security export control issues, 

composed of representatives from the 

Departments of Commerce, Defense, 

Homeland Security, and State, has 

identified additional areas where 

changes should be made to the EAR. 

This rule implements the first set of 

changes identified by the interagency 

working group by adding language to 

facilitate public understanding of how 

concealed object detection equipment is 

treated for purposes of U.S. Government 

export controls in particular by detailing 

the technical parameters of concealed 

object detection equipment that is 

subject to the Export Administration 

Regulations. These changes to the EAR 

are also in the foreign policy interest of 

the United States. 

Development, Production and 

Procurement of Homeland Security 

Items 

The Department of Homeland 

Security (DHS) has research and 

development (R&D) and procurement 

programs that are used to develop, 

produce and procure items for 

homeland security. These R&D and 

procurement activities include the use 

of various government agencies, both 

within DHS and outside of DHS, along 

with various private sector contractors. 

The U.S. Government also maintains 

international cooperative homeland 

security agreements with certain 

countries. These agreements facilitate 

collaborative efforts with partner 

countries to develop, produce and 

deploy homeland security items. The 

U.S. Government has agreements with 

the following nine countries: Australia, 

Canada, France, Germany, Israel, 

Mexico, Singapore, Sweden, and the 

United Kingdom. The U.S. Government 

has pending agreements with the 

European Union (nonbinding 

implementing arrangement only), the 

Netherlands, New Zealand and Japan. 

CCL Based Controls Need To Evolve To 

Keep Pace With Homeland Security 

Innovations 

The interagency working group on 

homeland security related export 

control issues is working to identify any 

areas in which CCL-based controls may 

not control DHS-related innovations at 

an appropriate level. This rule addresses 

one such area by adding three new 

entries to the Commerce Control List 

(CCL) to control certain concealed object 

detection equipment operating in the 

frequency range from 30 GHz to 3000 

GHz and related software and 

technology. Specifically, this rule makes 

the following changes to the Export 

Administration Regulations: 

(1) In Supplement No. 1 to part 774, 

the Commerce Control List (CCL), this 

rule adds three new Export Control 

Classification Numbers (ECCNs) 2A984, 

2D984 and 2E984. These three new 

ECCNs will be subject to Regional 

Stability (RS 2) and Anti-terrorism (AT 

1) controls on the CCL. BIS worked with 

the Departments of State, Defense and 

Homeland Security to develop these 

new controls. 

ECCN 2A984 controls concealed 

object detection equipment operating in 

the frequency range from 30 GHz to 

3000 GHz and having a spatial 

resolution of 0.5 milliradian up to and 

including 1 milliradian at a standoff 

distance of 100 meters. A ‘‘Note’’ to this 

ECCN entry clarifies that concealed 

object detection equipment includes but 

is not limited to equipment for 

screening people, documents, baggage, 

other personal effects, cargo and/or 

mail. A ‘‘Technical Note’’ to this ECCN 

entry clarifies that the range of 

frequencies span what is generally 

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Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 14337 

considered as the millimeter-wave, 

submillimeter-wave and terahertz 

frequency regions. 

ECCN 2A984 includes references to 

make the public aware of ‘‘Related 

Controls’’ for these types of concealed 

object detection equipment. 

Specifically, ECCN 2A984 specifies the 

following three ‘‘Related Controls’’: (1) 

Concealed object detection equipment 

operating in the frequency range from 

30 GHz to 3000 GHz and having a 

spatial resolution less than 0.5 

milliradian (a lower milliradian number 

means a more accurate image 

resolution) at a standoff distance of 100 

meters is under the export licensing 

authority of the U.S. Department of 

State (22 CFR parts 120 through 130). (2) 

Concealed object detection equipment 

operating in the frequency range from 

30 GHz to 3000 GHz and having a 

spatial resolution greater than 1 

milliradian (a higher milliradian 

number means a less accurate image 

resolution) at a standoff distance of 100 

meters is designated as EAR99. (3) See 

ECCNs 2D984 and 2E984 for related 

software and technology controls. 

ECCN 2D984 controls software 

‘‘required’’ for the ‘‘development,’’ 

‘‘production’’ or ‘‘use’’ of concealed 

object detection equipment controlled 

by 2A984. 

ECCN 2E984 controls technology 

‘‘required’’ for the ‘‘development,’’ 

‘‘production’’ or ‘‘use’’ of equipment 

controlled by 2A984 or ‘‘required’’ for 

the ‘‘development’’ of software 

controlled by 2D984. 

(2) This rule amends two existing 

ECCNs to conform with the three new 

ECCNs added to the CCL with this final 

rule. Specifically: 

ECCN 2E001 is amended by revising 

the heading of the ECCN to clarify that 

this ECCN entry does not include 

technology for 2A984, which will be 

controlled under new ECCN 2E984, as 

described above. 

ECCN 2E002 is amended by revising 

the heading of the ECCN to clarify that 

this ECCN entry does not include 

technology for 2A984, which will be 

controlled under new ECCN 2E984, as 

described above. 

(3) In part 740 (License Exceptions), 

this rule expands one of the general 

restrictions on the use of license 

exceptions under § 740.2 (Restrictions 

on all License Exceptions) by adding 

three additional ECCNs that are 

included in the scope of the general 

restrictions. Specifically, this rule adds 

ECCNs 2A984, 2D984 and 2E984 to 

paragraph (a)(8) of § 740.2. Prior to 

publication of this rule, paragraph (a)(8) 

of § 740.2 only applied to ECCNs 2A983, 

2D983 and 2E983. With the publication 

of this rule, paragraph (a)(8) of § 740.2 

will include ECCNs 2A983, 2A984, 

2D983, 2D984, 2E983 and 2E984. 

Because of this general restriction, items 

controlled under ECCNs 2A983, 2A984, 

2D983, 2D984, 2E983 or 2E984 are not 

eligible for export pursuant to any 

license exception unless the license 

exception is one of those specified in 

paragraph (a)(8)(i), (ii) or (iii). 

Lastly, as a technical correction to a 

final rule that was published in July 

2004, this rule removes an incorrect 

cross reference in paragraph (a)(8)(ii) 

that referenced a paragraph in License 

Exception GOV (i.e., § 740.11(b)(2)(v)) 

that does not exist. This inadvertent 

cross reference was added to the EAR on 

July 30, 2004 (69 FR 46070). 

(4) In § 740.10 (Servicing and 

replacement of parts and equipment 

(RPL)), this rule expands the scope of 

paragraph (c) (Special Recordkeeping 

Requirements: ECCNs 2A983 and 

2D983) by adding new ECCNs 2A984 

and 2D984 to these special record 

keeping requirements. Specifically, in 

addition to any other recordkeeping 

requirements set forth elsewhere in the 

EAR, exporters are required to maintain 

records, as specified in this section, for 

any items exported or reexported 

pursuant to License Exception RPL to 

repair or service previously legally 

exported or reexported items controlled 

under ECCNs 2A983, 2A984, 2D983 and 

2D984. Requirements for what 

additional information needs to be kept 

are specified under paragraph (c). 

(5) In § 740.13 (Technology and 

software—unrestricted (TSU)), this rule 

expands the scope of paragraph 

(f)(Special Recordkeeping 

Requirements: ECCNs 2D983 and 

2E983) by adding new ECCNs 2D984 

and 2E984 to these special record 

keeping requirements. Specifically, in 

addition to any other recordkeeping 

requirements set forth elsewhere in the 

EAR, exporters are required to maintain 

records, as specified in this paragraph, 

when exporting operation software or 

technology controlled under ECCNs 

2D983, 2D984, 2E983, and 2E984, 

respectively, under License Exception 

TSU. Records maintained pursuant to 

this section may be requested at any 

time by an appropriate BIS official as set 

forth in § 762.7 of the EAR. 

Requirements for what additional 

information needs to be kept are 

specified under paragraph (f). 

(6) In part 742 (Control Policy—CCL 

Based Controls), this rule adds a new 

license review policy in § 742.6 

(Regional Stability), to facilitate the 

export of items classified under ECCNs 

2A984, 2D984 and 2E984 that are being 

exported or reexported to certain trusted 

destinations and end-users. Specifically, 

this new license review policy states 

that applications to export and reexport 

items controlled under ECCNs 2A984, 

2D984 and 2E984 will be reviewed 

under a presumption of approval when 

exported or reexported to Austria, 

Cyprus, Finland, Ireland, Israel, Malta, 

Mexico, Singapore or Sweden, provided 

the items are being made to a 

government end-user or to a person 

designated by the government end-user 

pursuant to contract. License 

applications to export to a designated 

person must include a statement from 

the government end-user that the 

contractor is so designated. 

This license review policy specifically 

names Austria, Cyprus, Finland, 

Ireland, Israel, Malta, Mexico, Singapore 

and Sweden because, under 

§ 742.6(a)(4)(i), as indicated in the CCL 

and in RS Column 2 of the Country 

Chart (see Supplement No. 1 to part 738 

of the EAR), a license is not required to 

export items controlled for RS Column 

2 to Australia, Japan, New Zealand, and 

countries in the North Atlantic Treaty 

Organization (NATO). Implementing 

this license review policy for Austria, 

Cyprus, Finland, Ireland, Israel, Malta, 

Mexico, Singapore and Sweden will 

therefore facilitate the export and 

reexport of items controlled under 

ECCNs 2A984, 2D984 and 2E984 to all 

of the countries that currently maintain 

international cooperative homeland 

security agreements or are party to an 

implementing arrangement with the 

United States. 

This new licensing policy for ECCNs 

2A984, 2D984 and 2E984 differs from 

the licensing policy for the other RS 

Column 2 controlled items listed under 

§ 742.6(a)(4)(i). Applications to export 

or reexport any other RS Column 2 

controlled items listed in § 742.6(a)(4)(i) 

to Austria, Cyprus, Finland, Ireland, 

Israel, Malta, Mexico, Singapore and 

Sweden will generally be considered 

favorably on a case-by-case basis unless 

there is evidence that the export or 

reexport would contribute significantly 

to the destabilization of the region to 

which the equipment is destined. The 

license review policy for any 

destination other than for Austria, 

Cyprus, Finland, Ireland, Israel, Malta, 

Mexico, Singapore and Sweden (i.e., 

other countries subject to an RS Column 

2 license requirement) for the new 

ECCNs will be the same as other RS 

Column 2 controlled items listed under 

§ 742.6(a)(4)(i), meaning applications to 

export or reexport items controlled by 

ECCNs 2A984, 2D984 and 2E984 will 

generally be considered favorably on a 

case-by-case basis unless there is 

evidence that the export or reexport 

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14338 Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 

would contribute significantly to the 

destabilization of the region to which 

the equipment is destined. 

(7) Also in § 742.6, this rule revises 

paragraph (c) (Contract Sanctity Date) by 

redesignating paragraph (c) as paragraph 

(c)(1) and adding a new paragraph (c)(2) 

to provide contract sanctity provisions 

for the three new ECCNs added to the 

CCL with this rule: ECCNs 2A984, 

2D984 and 2E984. These new contract 

sanctity provisions will be applicable as 

of March 19, 2010. This contract 

sanctity date applies only to items 

controlled under ECCNs 2A984, 2D984 

and 2E984 destined for countries not 

listed in Country Group E (Supplement 

1 to part 740). 

(8) In §§ 742.9 (Syria), 742.10 (Sudan) 

and 742.19 (North Korea), under 

paragraph (b) (Licensing Policy) in each 

of these sections, this rule adds three 

new paragraphs under paragraph (b) to 

indicate the licensing policy for the 

three new ECCNs added to the CCL with 

this rule: ECCNs 2A984, 2D984 and 

2E984. These new paragraphs indicate 

that applications for export and reexport 

to all end-users in these three countries 

(Syria, Sudan, and North Korea) of items 

controlled under ECCNs 2A984, 2D984 

and 2E984 will generally be denied. 

(9) In Supplement No. 2 to part 742 

(Anti-Terrorism Controls: North Korea, 

Syria and Sudan Contract Sanctity Dates 

and Related Policies), to conform with 

the contract sanctity provisions added 

to paragraph (b) in §§ 742.9, 742.10 and 

742.19, as described above, this rule 

adds new contract sanctity provisions 

under paragraph (c) of Supplement No. 

2 for the three ECCNs added to the CCL 

with this rule: ECCNs 2A984, 2D984 

and 2E984. Specifically, this rule adds 

new paragraphs (c)(46), (c)(47) and 

(c)(48) to Supplement No. 2 to provide 

guidance to the public on the license 

review policy for ECCNs 2A984, 2D984 

and 2E984 for North Korea, Syria and 

Sudan, respectively. 

(10) In Supplement No. 2 to part 748 

(Unique application and submission 

requirements), this rule revises 

paragraph (k) (Regional stability 

controlled items) by redesignating 

paragraph (k) as paragraph (k)(1) and 

adding a new paragraph (k)(2) to 

provide guidance on additional support 

documentation that must be submitted 

for certain export or reexport license 

applications for items classified as 

ECCNs 2A984, 2D984 and 2E984 to 

certain countries and end-users. 

Specifically, this new paragraph states 

that if you are submitting a license 

application for the export or reexport to 

Austria, Cyprus, Finland, Ireland, Israel, 

Malta, Mexico, Singapore or Sweden of 

items controlled by ECCNs 2A984, 

2D984 and 2E984 to a person designated 

by a government end-user, pursuant to 

contract, your license application to 

export to such designated person must 

include a statement from the 

government end-user that the person is 

so designated. A responsible official 

representing the designated end-user 

must sign the statement. ‘‘Responsible 

official’’ is defined as someone with 

personal knowledge of the information 

included in the statement, and authority 

to bind the designated end-user for 

whom they sign, and who has the power 

and authority to control the use and 

disposition of the licensed items. 

Statements from government end-users 

that the person is so designated (i.e., 

support documents submitted in 

accordance with paragraph (k)(2)) must 

address the following three criteria for 

a license application to be reviewed in 

accordance with the license review 

policy in § 742.6(b)(2)(ii): (1) U.S. 

Department of Homeland Security 

(DHS) Customer Contract Number or 

agreement reference number, End-user 

name (company), complete address 

(including street address, city, state, 

country and postal code), end-user point 

of contact (POC); (2) Brief contract 

description, including DHS Project 

information and projected outcome; and 

(3) the statement shall include a 

certification stating ‘‘We certify that all 

of the representations in this statement 

are true and correct to the best of our 

knowledge and we do not know of any 

additional representations which are 

inconsistent with the above statement.’’ 

Savings Clause 

Shipments of items removed from 

eligibility for a License Exception or 

export or reexport without a license 

(NLR) as a result of this regulatory 

action that were on dock for loading, on 

lighter, laden aboard an exporting or 

reexporting carrier, or en route aboard a 

carrier to a port of export or reexport, on 

March 25, 2010, pursuant to actual 

orders for export or reexport to a foreign 

destination, may proceed to that 

destination under the previous 

eligibility for a License Exception or 

export or reexport without a license 

(NLR) so long as they are exported or 

reexported before April 26, 2010. Any 

such items not actually exported or 

reexported before midnight, on April 26, 

2010, require a license in accordance 

with this rule. 

Consistent with the provisions of 

section 6 of the Export Administration 

Act of 1979, as amended (EAA), a 

foreign policy report was submitted to 

Congress on March 19, 2010, notifying 

Congress of the imposition of foreign 

policy-based licensing requirements 

reflected in this rule. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as extended by the 

Notice of August 13, 2009 (74 FR 41325 

(August 14, 2009)), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. 

Rulemaking Requirements 

1. This rule has been determined to be 

significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to nor be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501, 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves collections previously 

approved by the OMB under control 

numbers 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 58 minutes to prepare 

and submit form BIS–748. 

Miscellaneous and recordkeeping 

activities account for 12 minutes per 

submission. Total burden hours 

associated with the Paperwork 

Reduction Act and Office of 

Management and Budget control 

number 0694–0088 are expected to 

increase slightly as a result of this rule. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

participation, and a delay in effective 

date, are inapplicable because this 

regulation involves a military or foreign 

affairs function of the United States. 

(See 5 U.S.C. 553(a)(1).) Further, no 

other law requires that a notice of 

proposed rulemaking and an 

opportunity for public comment be 

given for this rule. Because a notice of 

proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule by 5 

U.S.C. 553, or by any other law, the 

analytical requirements of the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq., are not applicable. 

mstockstill on DSKH9S0YB1PROD with RULES

Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 14339 

List of Subjects 

15 CFR Parts 740 and 748 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

■ Accordingly, parts 740, 742, 748, and 

774 of the Export Administration 

Regulations (15 CFR parts 730–774) are 

amended as follows: 

PART 740—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 740 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; 

E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., 

p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 13, 2009, 74 

FR 41325 (August 14, 2009). 

■ 2. Section 740.2 is amended: 

■ a. By revising the introductory text of 

paragraph (a)(8); and 

■ b. By revising paragraph (a)(8)(ii) to 

read as follows: 

§ 740.2 Restrictions on all License 

Exceptions. 

(a) * * * 

(8) The item is controlled under 

ECCNs 2A983, 2A984, 2D983, 2D984, 

2E983 or 2E984 and the License 

Exception is other than: 

* * * * * 

(ii) GOV, restricted to eligibility under 

the provisions of § 740.11(b)(2)(ii); or 

* * * * * 

■ 3. Section 740.10 is amended: 

■ a. By redesignating paragraph 

(a)(3)(vi) as paragraph (a)(3)(vii); 

■ b. By adding new paragraph (a)(3)(vi); 

and 

■ c. By revising the heading for 

paragraph (c) and the introductory text 

of paragraph (c)(1). 

The revision and addition read as 

follows: 

§ 740.10 Servicing and replacement of 

parts and equipment (RPL). 

* * * * * 

(a) * * * 

* * * * * 

(3) * * * 

(vi) No replacement parts may be 

exported to countries in Country Group 

E:1 if the commodity to be repaired is 

concealed object detection equipment 

controlled under ECCN 2A984 or related 

software controlled under ECCN 2D984. 

* * * * * 

(c) Special recordkeeping 

requirements: ECCNs 2A983, 2A984, 

2D983 and 2D984. (1) In addition to any 

other recordkeeping requirements set 

forth elsewhere in the EAR, exporters 

are required to maintain records, as 

specified in this section, for any items 

exported or reexported pursuant to 

License Exception RPL to repair or 

service previously legally exported or 

reexported items controlled under 

ECCNs 2A983, 2A984, 2D983 and 

2D984. The following information must 

be specially maintained for each such 

export or reexport transaction: 

* * * * * 

■ 4. Section 740.13 is amended by 

revising the introductory text of 

paragraph (f) to read as follows: 

§ 740.13 Technology and software 

—unrestricted (TSU). 

* * * * * 

(f) Special recordkeeping 

requirements: ECCNs 2D983, 2D984, 

2E983 and 2E984. In addition to any 

other recordkeeping requirements set 

forth elsewhere in the EAR, exporters 

are required to maintain records, as 

specified in this paragraph, when 

exporting operation software or 

technology controlled under ECCNs 

2D983, 2D984, 2E983, and 2E984, 

respectively, under License Exception 

TSU. Records maintained pursuant to 

this section may be requested at any 

time by an appropriate BIS official as set 

forth in § 762.7 of the EAR. The 

following information must be specially 

maintained for each export or reexport 

transaction, under License Exception 

TSU, of operation software and 

technology controlled by ECCNs 2D983, 

2D984, 2E983, and 2E984: 

* * * * * 

PART 742—[AMENDED] 

■ 5. The authority citation for 15 CFR 

part 742 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 

42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 

U.S.C. 7210; Sec 1503, Pub. L. 108–11, 117 

Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 

1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 

3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 

FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Presidential Determination 

2003–23 of May 7, 2003, 68 FR 26459, May 

16, 2003; Notice of August 13, 2009, 74 FR 

41325 (August 14, 2009); Notice of November 

6, 2009, 74 FR 58187 (November 10, 2009). 

■ 6. Section 742.6 is amended: 

■ a. By revising paragraph (a)(4)(i); 

■ b. By revising paragraph (b)(2); 

■ c. By redesignating paragraph (c) as 

(c)(1); and 

■ d. By adding paragraph (c)(2), to read 

as follows: 

§ 742.6 Regional stability. 

(a) * * * 

(4) * * * 

(i) License Requirements Applicable 

to Most RS Column 2 Items. As 

indicated in the CCL and in RS Column 

2 of the Commerce Country Chart (see 

Supplement No. 1 to part 738 of the 

EAR), a license is required to any 

destination except Australia, Japan, 

New Zealand, and countries in the 

North Atlantic Treaty Organization 

(NATO) for items described on the CCL 

under ECCNs 0A918, 0E918, 1A004.d, 

1D003 (software to enable equipment to 

perform the functions of equipment 

controlled by 1A004.d), 1E001 

(technology for the development, 

production, or use of 1A004.d), 2A983, 

2A984, 2D983, 2D984, 2E983, 2E984, 

8A918, and for military vehicles and 

certain commodities (specially 

designed) used to manufacture military 

equipment, described on the CCL in 

ECCNs 0A018.c, 1B018.a, 2B018, 

9A018.a and .b, 9D018 (only software 

for the ‘‘use’’ of commodities in ECCN 

9A018.a and .b), and 9E018 (only 

technology for the ‘‘development’’, 

‘‘production’’, or ‘‘use’’ of commodities in 

9A018.a and .b). 

* * * * * 

(b) * * * 

(2) Licensing policy for RS Column 2 

items. (i) Except as described in 

paragraph (b)(2)(ii), applications to 

export and reexport commodities 

described in paragraph (a)(4) of this 

section will generally be considered 

favorably on a case-by-case basis unless 

there is evidence that the export or 

reexport would contribute significantly 

to the destabilization of the region to 

which the equipment is destined. 

(ii) Applications to export and 

reexport items controlled under ECCNs 

2A984, 2D984 and 2E984 will be 

reviewed under a presumption of 

approval when exported or reexported 

to Austria, Cyprus, Finland, Ireland, 

Israel, Malta, Mexico, Singapore or 

Sweden, provided the items to be 

exported or reexported are being made 

to a government end-user or to a person 

designated by the government end-user 

pursuant to contract. License 

applications to export to a designated 

person must include a statement from 

the government end-user that the person 

is so designated. See Supplement No. 2 

to part 748, paragraph (k)(2). 

* * * * * 

(c) * * * 

(2) Contract sanctity date: March 19, 

2010. This contract sanctity date applies 

mstockstill on DSKH9S0YB1PROD with RULES

14340 Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 

only to items controlled under ECCNs 

2A984, 2D984 and 2E984 destined for 

countries not listed in Country Group E 

(Supplement 1 to part 740). See parts 

742 and 746 for the contract sanctity 

requirements applicable to exports and 

reexports to countries listed in Country 

Group E. 

* * * * * 

■ 7. Section 742.9 is amended by adding 

paragraphs (b)(1)(xii), (b)(1)(xiii), and 

(b)(1)(xiv), to read as follows: 

§ 742.9 Anti-terrorism: Syria. 

* * * * * 

(b) * * * 

(1) * * * 

(xii) Concealed object detection 

equipment controlled under ECCN 

2A984. 

(xiii) ‘‘Software’’ (ECCN 2D984) 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed 

object detection equipment controlled 

by 2A984. 

(xiv) ‘‘Technology’’ (ECCN 2E984) 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed 

object detection equipment controlled 

by 2A984, or the ‘‘development’’ of 

‘‘software’’ controlled by 2D984. 

* * * * * 

■ 8. Section 742.10 is amended by 

adding paragraphs (b)(1)(xii), (b)(1)(xiii), 

and (b)(1)(xiv), to read as follows: 

§ 742.10 Anti-Terrorism: Sudan. 

* * * * * 

(b) * * * 

(1) * * * 

(xii) Concealed object detection 

equipment controlled under ECCN 

2A984. 

(xiii) ‘‘Software’’ (ECCN 2D984) 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed 

object detection equipment controlled 

by 2A984. 

(xiv) ‘‘Technology’’ (ECCN 2E984) 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed 

object detection equipment controlled 

by 2A984, or the ‘‘development’’ of 

‘‘software’’ controlled by 2D984. 

* * * * * 

■ 9. Section 742.19 is amended by 

adding paragraphs (b)(1)(xxii), 

(b)(1)(xxiii), and (b)(1)(xxiv), to read as 

follows: 

§ 742.19 Anti-terrorism: North Korea. 

* * * * * 

(b) * * * 

(1) * * * 

(xxii) Concealed object detection 

equipment controlled under ECCN 

2A984. 

(xxiii) ‘‘Software’’ (ECCN 2D984) 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed 

object detection equipment controlled 

by 2A984. 

(xxiv) ‘‘Technology’’ (ECCN 2E984) 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed 

object detection equipment controlled 

by 2A984, or the ‘‘development’’ of 

‘‘software’’ controlled by 2D984. 

* * * * * 

■ 10. Supplement No. 2 to Part 742 is 

amended by adding paragraphs (c)(46), 

(c)(47), and (c)(48), to read as follows: 

Supplement No. 2 to Part 742—AntiTerrorism Controls: North Korea, Syria and 

Sudan Contract Sanctity Dates and Related 

Policies 

* * * * * 

(c) * * * 

* * * * * 

(46) Concealed object detection equipment 

described in ECCN 2A984. 

(i) Syria. Applications for all end-users in 

Syria of these commodities will generally be 

denied. Contract sanctity date: March 19, 

2010. 

(ii) Sudan. Applications for all end-users 

in Sudan of these commodities will generally 

be denied. Contract sanctity date: March 19, 

2010. 

(iii) North Korea. Applications for all endusers in North Korea of these commodities 

will generally be denied. Contract sanctity 

date: March 19, 2010. 

(47) ‘‘Software’’ described in ECCN 2D984 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed object 

detection equipment controlled by 2A984. 

(i) Syria. Applications for all end-users in 

Syria of these software will generally be 

denied. Contract sanctity date: March 19, 

2010. 

(ii) Sudan. Applications for all end-users 

in Sudan of these software will generally be 

denied. Contract sanctity date: March 19, 

2010. 

(iii) North Korea. Applications for all endusers in North Korea of these software will 

generally be denied. Contract sanctity date: 

March 19, 2010. 

(48) ‘‘Technology’’ described in ECCN 

2E984 ‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed object 

detection equipment controlled by 2A984, or 

the ‘‘development’’ of ‘‘software’’ controlled by 

2D984. 

(i) Syria. Applications for all end-users in 

Syria of these items will generally be denied. 

Contract sanctity date: March 19, 2010. 

(ii) Sudan. Applications for all end-users 

in Sudan of these items will generally be 

denied. Contract sanctity date: March 19, 

2010. 

(iii) North Korea. Applications for all endusers in North Korea of these items will 

generally be denied. Contract sanctity date: 

March 19, 2010. 

PART 748—[AMENDED] 

■ 11. The authority citation for 15 CFR 

part 748 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 

3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 

FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 

of August 13, 2009, 74 FR 41325 (August 14, 

2009). 

■ 12. Supplement No. 2 to part 748 is 

amended by revising paragraph (k), to 

read as follows: 

Supplement No. 2 to Part 748—Unique 

Application and Submission Requirements 

* * * * * 

(k) Regional stability controlled items. (1) 

If you are submitting a license application for 

the export or reexport of items controlled for 

regional stability reasons and subject to 

licensing under RS Column 1 on the Country 

Chart, your license application must be 

accompanied by full technical specifications. 

(2) If you are submitting a license 

application for the export or reexport to 

Austria, Cyprus, Finland, Ireland, Israel, 

Malta, Mexico, Singapore or Sweden of items 

controlled by ECCNs 2A984, 2D984 or 2E984 

to a person designated by a government enduser, pursuant to contract, your license 

application to export to such designated 

person must include a statement from the 

government end-user to be eligible for the 

licensing policy under § 742.6(b)(2)(ii). A 

responsible official representing the 

designated end-user must sign the statement. 

‘‘Responsible official’’ is defined as someone 

with personal knowledge of the information 

included in the statement, and authority to 

bind the designated end-user for whom they 

sign, and who has the power and authority 

to control the use and disposition of the 

licensed items. Statements from government 

end-users that the person is so designated 

(i.e., support documents submitted in 

accordance with this paragraph (k)(2)) must 

address the following three criteria for a 

license application to be reviewed in 

accordance with the license review policy in 

§ 742.6(b)(2)(ii): 

(i) U.S. Department of Homeland Security 

(DHS) Customer Contract Number or 

agreement reference number, End-user name 

(company), complete address (including 

street address, city, state, country and postal 

code), end-user point of contact (POC); 

(ii) Brief contract description, including 

DHS Project information and projected 

outcome; and 

(iii) The statement shall include a 

certification stating ‘‘We certify that all of the 

representations in this statement are true and 

correct to the best of our knowledge and we 

do not know of any additional 

representations which are inconsistent with 

the above statement.’’ 

* * * * * 

PART 774—[AMENDED] 

■ 13. The authority citation for 15 CFR 

part 774 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 

seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

mstockstill on DSKH9S0YB1PROD with RULES

Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 14341 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 13, 2009, 74 

FR 41325 (August 14, 2009). 

■ 14. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

2—Materials Processing, is amended by 

adding Export Control Classification 

Number (ECCN) 2A984 after ECCN 

2A983 and before ECCN 2A991, to read 

as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

2A984 Concealed object detection 

equipment operating in the frequency range 

from 30 GHz to 3000 GHz and having a 

spatial resolution of 0.5 milliradian up to 

and including 1 milliradian at a standoff 

distance of 100 meters; and parts and 

components, n.e.s. 

License Requirements 

Reason for Control: RS, AT 

Control(s) Country chart 

RS applies to entire entry ... RS Column 2. 

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

License Exceptions 

LVS: N/A 

GBS: N/A 

CIV: N/A 

List of Items Controlled 

Unit: $ value 

Related Controls: (1) Concealed object 

detection equipment operating in the 

frequency range from 30 GHz to 3000 GHz 

and having a spatial resolution less than 0.5 

milliradian (a lower milliradian number 

means a more accurate image resolution) at 

a standoff distance of 100 meters is under the 

export licensing authority of the U.S. 

Department of State (22 CFR parts 120 

through 130). (2) Concealed object detection 

equipment operating in the frequency range 

from 30 GHz to 3000 GHz and having a 

spatial resolution greater than 1 milliradian 

(a higher milliradian number means a less 

accurate image resolution) at a standoff 

distance of 100 meters is designated as 

EAR99. (3) See ECCNs 2D984 and 2E984 for 

related software and technology controls. 

Related Definitions: N/A 

Items: The list of items controlled is 

contained in the ECCN heading. 

Note: Concealed object detection 

equipment includes but is not limited to 

equipment for screening people, documents, 

baggage, other personal effects, cargo and/or 

mail. 

Technical Note: The range of frequencies 

span what is generally considered as the 

millimeter-wave, submillimeter-wave and 

terahertz frequency regions. 

* * * * * 

■ 15. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

2—Materials Processing, is amended by 

adding Export Control Classification 

Number (ECCN) 2D984 after ECCN 

2D983 and before ECCN 2D991, to read 

as follows: 

* * * * * 

2D984 ‘‘Software’’ ‘‘required’’ for the 

‘‘development’’, ‘‘production’’ or ‘‘use’’ of 

concealed object detection equipment 

controlled by 2A984. 

License Requirements 

Reason for Control: RS, AT 

Control(s) Country chart 

RS applies to entire entry ... RS Column 2. 

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

License Exceptions 

CIV: N/A 

TSR: N/A 

List of Items Controlled 

Unit: $ value 

Related Controls: (1) ‘‘Software’’ ‘‘required’’ 

for the ‘‘development’’, ‘‘production’’ or ‘‘use’’ 

of concealed object detection equipment 

operating in the frequency range from 30 GHz 

to 3000 GHz and having a spatial resolution 

less than 0.5 milliradian (a lower milliradian 

number means a more accurate image 

resolution) at a standoff distance of 100 

meters is under the export licensing authority 

of the U.S. Department of State (22 CFR parts 

120 through 130). (2) ‘‘Software’’ ‘‘required’’ 

for the ‘‘development’’, ‘‘production’’ or ‘‘use’’ 

of concealed object detection equipment 

operating in the frequency range from 30 GHz 

to 3000 GHz and having a spatial resolution 

greater than 1 milliradian spatial resolution 

(a higher milliradian number means a less 

accurate image resolution) at a standoff 

distance of 100 meters is designated as 

EAR99. (3) See ECCNs 2A984 and 2E984 for 

related commodity and technology controls. 

Related Definitions: N/A. 

Items: The list of items controlled is 

contained in the ECCN heading. 

* * * * * 

■ 16. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

2—Materials Processing, Export Control 

Classification Number (ECCN) 2E001 is 

amended by revising the Heading, to 

read as follows: 

* * * * * 

2E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ of equipment or ‘‘software’’ 

controlled by 2A (except 2A983, 2A984, 

2A991, or 2A994), 2B (except 2B991, 2B993, 

2B996, 2B997, or 2B998), or 2D (except 

2D983, 2D984, 2D991, 2D992, or 2D994). 

* * * * * 

■ 17. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

2—Materials Processing, Export Control 

Classification Number (ECCN) 2E002 is 

amended by revising the Heading, to 

read as follows: 

* * * * * 

2E002 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘production’’ of equipment controlled by 2A 

(except 2A983, 2A984, 2A991, or 2A994), or 

2B (except 2B991, 2B993, 2B996, 2B997, or 

2B998). 

* * * * * 

■ 18. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

2—Materials Processing, is amended by 

adding Export Control Classification 

Number (ECCN) 2E984 after ECCN 

2E983 and before ECCN 2E991, to read 

as follows: 

* * * * * 

2E984 ‘‘Technology’’ ‘‘required’’ for the 

‘‘development’’, ‘‘production’’ or ‘‘use’’ of 

equipment controlled by 2A984 or 

‘‘required’’ for the ‘‘development’’ of 

‘‘software’’ controlled by 2D984. 

License Requirements 

Reason for Control: RS, AT 

Control(s) Country chart 

RS applies to entire entry ... RS Column 2. 

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

License Exceptions 

CIV: N/A 

TSR: N/A 

List of Items Controlled 

Unit: $ value 

Related Controls: (1) ‘‘Technology’’ 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed object 

detection equipment operating in the 

frequency range from 30 GHz to 3000 GHz 

and having a spatial resolution less than 0.5 

milliradian (a lower milliradian number 

means a more accurate image resolution) at 

a standoff distance of 100 meters or 

‘‘required’’ for the ‘‘development’’ of 

‘‘software’’ ‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed object 

detection equipment operating in the 

frequency range from 30 GHz to 3000 GHz 

and having a spatial resolution less than 0.5 

milliradian at a standoff distance of 100 

meters is under the export licensing authority 

of the U.S. Department of State (22 CFR parts 

120 through 130). (2) ‘‘Technology’’ 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of concealed object 

detection equipment operating in the 

frequency range from 30 GHz to 3000 GHz 

and having a spatial resolution greater than 

1 milliradian spatial resolution (a higher 

milliradian number means a less accurate 

image resolution) at a standoff distance of 

100 meters or ‘‘required’’ for the 

‘‘development’’ of ‘‘software’’ ‘‘required’’ for 

the ‘‘development’’, ‘‘production’’ or ‘‘use’’ of 

concealed object detection equipment 

operating in the frequency range from 30 GHz 

to 3000 GHz and having a spatial resolution 

greater than 1 milliradian spatial resolution 

(a higher milliradian number means a less 

accurate image resolution) at a standoff 

distance of 100 meters is designated as 

EAR99. (3) See ECCNs 2A984 and 2D984 for 

related commodity and software controls. 

mstockstill on DSKH9S0YB1PROD with RULES

14342 Federal Register / Vol. 75, No. 57 / Thursday, March 25, 2010 / Rules and Regulations 

1 Market-Based Rates for Wholesale Sales of 

Electric Energy, Capacity and Ancillary Services by 

Public Utilities, Order No. 697–C, FERC Stats. & 

Regs. ¶ 31,291 (2009). 

2 18 CFR 35.42. 

3 Market-Based Rates for Wholesale Sales of 

Electric Energy, Capacity and Ancillary Services by 

Public Utilities, Order No. 697–B, FERC Stats. & 

Regs. ¶ 31,285 (2008). 

4 Market-Based Rates for Wholesale Sales of 

Electric Energy, Capacity and Ancillary Services by 

Public Utilities, Order No. 697, FERC Stats. & Regs. 

¶ 31,252 (Order No. 697 or Final Rule), clarified, 

121 FERC ¶ 61,260 (2007), order on reh’g, Order No. 

697–A, FERC Stats. & Regs. ¶ 31,268 (2008); 

clarified, 124 FERC ¶ 61,055 (2008) (July 17 

Clarification Order), order on reh’g, Order No. 697– 

B, FERC Stats. & Regs. ¶ 31,285 (2008), order on 

reh’g, Order No. 697–C, FERC Stats. & Regs. 

¶ 31,291 (2009). 

5 Market-Based Rates for Wholesale Sales of 

Electric Energy, Capacity and Ancillary Services by 

Public Utilities, 121 FERC ¶ 61,260 (2007) 

(December 14 Clarification Order). 

Related Definitions: N/A 

Items: The list of items controlled is 

contained in the ECCN heading. 

* * * * * 

Dated: March 19, 2010. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2010–6588 Filed 3–24–10; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 35 

[Docket No. RM04–7–008; Order No. 697– 

D] 

Market-Based Rates for Wholesale 

Sales of Electric Energy, Capacity and 

Ancillary Services by Public Utilities 

Issued March 18, 2010. 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Final rule; order on rehearing 

and clarification. 

SUMMARY: The Federal Energy 

Regulatory Commission is granting in 

part and denying in part the requests for 

rehearing and clarification of its 

determinations in Order No. 697–C, 

which granted rehearing and 

clarification of certain revisions to 

Commission regulations and to the 

standards for obtaining and retaining 

market-based rate authority for sales of 

energy, capacity and ancillary services 

to ensure that such sales are just and 

reasonable. 

DATES: Effective Date: This order on 

rehearing will become effective April 

26, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Michelle Barnaby (Technical 

Information), Office of Energy Market 

Regulation, Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426, (202) 502– 

8407. 

Paige Bullard (Legal Information), Office 

of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–6462. 

SUPPLEMENTARY INFORMATION: 

TABLE OF CONTENTS

Paragraph 

Numbers 

I. Introduction ......................................................................................................................................................................................... 1 

II. Background ......................................................................................................................................................................................... 2 

III. Discussion ......................................................................................................................................................................................... 10 

A. Vertical Market Power ............................................................................................................................................................... 10 

Other Barriers to Entry ............................................................................................................................................................ 10 

B. Mitigation .................................................................................................................................................................................... 25 

Protecting Mitigated Markets ................................................................................................................................................... 25 

IV. Information Collection Statement ................................................................................................................................................... 53 

V. Document Availability ...................................................................................................................................................................... 54 

VI. Effective Date .................................................................................................................................................................................... 57 

Before Commissioners: Jon Wellinghoff, 

Chairman; Marc Spitzer, Philip D. Moeller, 

and John R. Norris. 

Order No. 697–D 

Order on Rehearing and Clarification 

I. Introduction 

1. In this order, the Federal Energy 

Regulatory Commission (Commission) 

addresses requests for rehearing and 

clarification of Order No. 697–C.1

Specifically, the Commission provides 

additional clarification on the 

requirement that sellers file a 

notification of change in status when 

they acquire sites for new generation 

capacity development.2 The 

Commission denies the requests for 

rehearing of the tariff provision 

governing mitigated sales at the metered 

boundary and reaffirms its 

determination in Order No. 697–B to 

revise the mitigated sales tariff 

provision in order to ensure that a 

mitigated seller making market-based 

rate sales at the metered boundary does 

not sell power into the mitigated market 

either directly or through its affiliates.3

II. Background 

2. On June 21, 2007, the Commission 

issued Order No. 697,4 codifying and, in 

certain respects, revising its standards 

for obtaining and retaining market-based 

rates for public utilities. In order to 

accomplish this, as well as streamline 

the administration of the market-based 

rate program, the Commission modified 

its regulations at 18 CFR Part 35, 

subpart H, governing market-based rate 

authorization. Order No. 697 became 

effective on September 18, 2007. 

3. The Commission issued an order 

clarifying four aspects of Order No. 697 

on December 14, 2007.5 Specifically, 

that order addressed: (1) The effective 

date for compliance with the 

requirements of Order No. 697; (2) 

which entities are required to file 

updated market power analyses for the 

Commission’s regional review; (3) the 

data required for horizontal market 

power analyses; and (4) what constitute 

‘‘seller-specific terms and conditions’’ 

that sellers may list in their marketbased rate tariffs in addition to the 

standard provisions listed in Appendix 

C to Order No. 697. 

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