25932 Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Proposed Rules 

eccentric bolts having P/N A5786451220800 

at slat 2 track 4 and track 7, and slat 3 track 

8, on both wings, with bolts having P/N 

A5784307920000, in accordance with the 

Accomplishment Instructions of Airbus 

Mandatory Service Bulletin A310–57–2098, 

dated July 22, 2011. 

(i) Parts Installation 

After modification of an airplane as 

required by this AD, do not install any slat 

extension eccentric bolt having P/N 

A5786451220800 on any airplane. 

(j) Other FAA AD Provisions 

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. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the International Branch, send it to ATTN: 

Dan Rodina, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue SW., Renton, Washington 98057– 

3356; telephone (425) 227–2125; fax (425) 

227–1149. Information may be emailed to: 

9-ANM-116-AMOC-REQUESTS@faa.gov. 

Before using any approved AMOC, notify 

your appropriate principal inspector, or 

lacking a principal inspector, the manager of 

the local flight standards district office/ 

certificate holding 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. 

(k) Related Information 

Refer to MCAI European Aviation Safety 

Agency Airworthiness Directive 2011–0187, 

dated September 27, 2011, and the following 

service information, for related information. 

(1) Airbus Mandatory Service Bulletin 

A310–57–2043, Revision 05, dated 

September 29, 2010. 

(2) Airbus Mandatory Service Bulletin 

A310–57–2098, dated July 22, 2011. 

(3) Airbus Mandatory Service Bulletin 

A310–57–2099, dated July 22, 2011. 

Issued in Renton, Washington, on April 25, 

2012. 

Michael Kaszycki, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2012–10573 Filed 5–1–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 742 and 774 

[Docket No. 120105018–2011–01] 

RIN 0694–AF53 

Revisions to the Export Administration 

Regulations (EAR): Control of 

Energetic Materials and Related 

Articles That the President Determines 

No Longer Warrant Control Under the 

United States Munitions List (USML) 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Proposed rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) publishes this proposed 

rule describing how energetic materials 

and related articles that the President 

determines no longer warrant control 

under Category V (Explosives and 

Energetic Materials, Propellants, 

Incendiary Agents and Their 

Constituents) of the United States 

Munitions List (USML) would be 

controlled under the Commerce Control 

List (CCL) in new Export Control 

Classification Numbers (ECCNs) 1B608, 

1C608, 1D608, and 1E608. If 

implemented, this proposed rule would 

also control under ECCN 1C111 some of 

the aluminum powder and hydrazine 

and derivatives thereof that are now 

controlled under Category V of the 

USML. This proposed rule also would 

control equipment for the ‘‘production’’ 

of explosives and solid propellants, 

currently controlled under ECCN 

1B018.a, and related ‘‘software,’’ 

currently controlled under ECCN 

1D018, under new ECCNs 1B608 and 

1D608, respectively. In addition, this 

proposed rule would control 

commercial charges and devices 

containing energetic materials, which 

are currently controlled under ECCN 

1C018, under new ECCN 1C608. This is 

one of a planned series of proposed 

rules describing how various types of 

articles that the President determines, as 

part of the Administration’s Export 

Control Reform Initiative, no longer 

warrant control on the USML, under the 

International Traffic in Arms 

Regulations (ITAR), would be controlled 

on the CCL in accordance with the 

requirements of the Export 

Administration Regulations (EAR). This 

proposed rule is being published in 

conjunction with a proposed rule from 

the Department of State, Directorate of 

Defense Trade Controls, which would 

amend the list of articles controlled by 

USML Category V. 

DATES: Comments must be received by 

June 18, 2012. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. The identification 

number for this rulemaking is BIS– 

2012–0008. 

• By email directly to 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF53 in the subject line. 

• By mail or delivery to Regulatory 

Policy Division, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Room 2099B, 14th Street and 

Pennsylvania Avenue NW., Washington, 

DC 20230. Refer to RIN 0694–AF53. 

FOR FURTHER INFORMATION CONTACT: 

Michael Rithmire, Office of National 

Security and Technology Transfer 

Controls, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Telephone: (202) 482–6105, Email: 

Michael.Rithmire@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On July 15, 2011, as part of the 

Administration’s ongoing Export 

Control Reform Initiative, the Bureau of 

Industry and Security (BIS) published a 

proposed rule (76 FR 41958) (herein 

‘‘the July 15 proposed rule’’) that set 

forth a framework for how articles, 

which the President determines in 

accordance with section 38(f) of the 

Arms Export Control Act (AECA) (22 

U.S.C. 2778(f)) would no longer warrant 

control on the United States Munitions 

List (USML), would be controlled on the 

Commerce Control List (CCL) in 

Supplement No. 1 to Part 774 of the 

Export Administration Regulations 

(EAR). On November 7, 2011 (76 FR 

68675) (herein ‘‘the November 7 

proposed rule’’), BIS published a rule 

proposing several changes to the 

framework initially proposed in the July 

15 rule. 

Following the structure of the July 15 

and November 7 proposed rules, this 

proposed rule describes BIS’s proposal 

for controlling some energetic materials 

and related articles, which currently are 

controlled by USML Category V under 

the International Traffic in Arms 

Regulations (ITAR), under the EAR and 

its CCL in new Export Control 

Classification Numbers (ECCNs) 1B608, 

1C608, 1D608 and 1E608, and current 

ECCN 1C111. The changes described in 

this proposed rule and the State 

Department’s proposed companion rule 

on Category V of the USML are based on 

a review of this USML Category by the 

Defense Department, which worked 

with the Departments of State and 

Commerce in preparing the proposed 


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Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Proposed Rules 25933 

rules. That review focused on 

identifying the types of articles that are 

now controlled by USML Category V 

that are either: (i) Inherently military 

and otherwise warrant control on the 

USML; or (ii) common to civil 

applications, possessing parameters or 

characteristics that provide a critical 

military or intelligence advantage to the 

United States, and almost exclusively 

available from the United States. If an 

article satisfies either or both of these 

criteria, the article remains on the 

USML. If an article does not satisfy 

either criterion, but is determined, 

nonetheless, to be a type of article that 

is now on the corresponding USML or 

the Munitions List of the Wassenaar 

Arrangement on Export Controls for 

Conventional Arms and Dual-Use Goods 

and Technologies (Wassenaar 

Arrangement Munitions List or WAML), 

then it has been identified in one of the 

new ECCNs in this proposed rule. The 

license requirements, licensing policies, 

and other EAR-specific controls for such 

items, as described in this proposed 

rule, would, when considered in the 

context of the other proposed 

amendments to the USML and the CCL, 

enhance national security by: (i) 

Allowing for greater interoperability 

with NATO and other allies while 

maintaining and expanding robust 

controls that, in some instances, include 

prohibitions on exports or reexports 

destined for other countries or intended 

for proscribed end-users and end-uses; 

(ii) enhancing the U.S. defense 

industrial base by, for example, 

reducing the current incentives for 

foreign companies to design out or 

avoid U.S.-origin ITAR-controlled 

content, particularly with respect to 

generic, unspecified parts and 

components; and (iii) permitting the 

U.S. Government to focus its resources 

on controlling, monitoring, 

investigating, analyzing, and, if need be, 

prohibiting exports and reexports of 

more significant items to destinations, 

end users, and end uses of greater 

concern than NATO allies and other 

multi-regime partners. 

Pursuant to section 38(f) of the AECA, 

the President shall review the USML ‘‘to 

determine what items, if any, no longer 

warrant export controls under’’ the 

AECA. The President must report the 

results of the review to Congress and 

wait 30 days before removing any such 

items from the USML. The report must 

‘‘describe the nature of any controls to 

be imposed on that item under any 

other provision of law.’’ 22 U.S.C. 

2778(f)(1). 

In the July 15 proposed rule, BIS 

proposed creating a series of new 

ECCNs to control items that: (i) would 

be moved from the USML to the CCL or 

(ii) are listed on the Wassenaar 

Arrangement Munitions List and are 

already controlled elsewhere on the 

CCL. That proposed rule referred to this 

new series as the ‘‘600 series’’ because 

the third character in each of the new 

ECCNs would be a ‘‘6.’’ The first two 

characters of the 600 series ECCNs serve 

the same function as described for any 

other ECCN in § 738.2 of the EAR. The 

first character is a digit in the range 0 

through 9 that identifies the Category on 

the CCL in which the ECCN is located. 

The second character is a letter in the 

range A through E that identifies the 

product group within a CCL Category. In 

the 600 series, the third character is the 

number 6. With few exceptions, the 

final two characters identify the WAML 

Category that covers items that are the 

same or similar to items in a particular 

600 series ECCN. 

This proposed rule describes how 

some energetic materials and related 

articles currently in USML Category V 

would be controlled by the EAR and 

identified on the CCL, if the President 

determines that the articles no longer 

warrant control on the USML. 

Specifically, this proposed rule would 

create four new 600 series ECCNs in 

CCL Category 1 (ECCNs 1B608, 1C608, 

1D608, and 1E608). ECCN 1B608 would 

cover ‘‘equipment,’’ not elsewhere 

specified on the CCL or the USML, that 

is ‘‘specially designed’’ for commodities 

in ECCN 1C608 or articles in USML 

Category V. ECCN 1C608 would cover 

energetic materials and related 

commodities not listed elsewhere in 

USML Category V or the CCL. ECCN 

1D608 would cover ‘‘software’’ 

‘‘specially designed’’ for commodities 

controlled by 1B608 or 1C608; and 

ECCN 1E608 would cover ‘‘technology’’ 

‘‘required’’ for ‘‘equipment’’ controlled 

in 1B608 or materials controlled by 

1C608. Additionally, the rule would 

amend current ECCN 1C111 to describe 

the EAR controls that would apply to 

aluminum powder and hydrazine and 

derivatives thereof the President 

determines no longer warrant control 

under USML Category V. 

BIS will publish additional Federal 

Register notices containing proposed 

amendments to the CCL that will 

describe proposed controls for 

additional categories of articles the 

President determines no longer warrant 

control under the USML. The State 

Department will publish, concurrently, 

proposed amendments to the USML that 

correspond to the BIS notices. BIS will 

also publish proposed rules to further 

align the CCL with the WAML and the 

Missile Technology Control Regime 

Equipment, Software and Technology 

Annex. 

Detailed Description of Changes 

Proposed by This Rule 

This proposed rule would create four 

new 600 series ECCNs in CCL Category 

1 (ECCNs 1B608, 1C608, 1D608, and 

1E608) and amend current ECCN 1C111 

to describe the EAR controls that would 

apply to energetic materials and related 

items the President determines no 

longer warrant control under USML 

Category V. In addition, consistent with 

the regulatory construct identified in the 

July 15 proposed rule (i.e., to move 

items from 018 ECCNs to the 

appropriate 600 series ECCNs in order 

to consolidate the WAML and former 

USML items into one series of ECCNs), 

this rule would move ‘‘equipment’’ for 

the ‘‘production’’ of explosives and 

solid propellants, currently classified 

under ECCN 1B018.a, and related 

‘‘software,’’ currently classified under 

ECCN 1D018, to new ECCNs 1B608 and 

1D608, respectively. Similarly, this rule 

would move commercial charges and 

devices containing energetic materials, 

which are currently classified under 

ECCN 1C018, to new ECCN 1C608 

(except for chlorine trifluoride, which is 

not on the WAML and would be 

controlled under ECCN 1C111.a.3.f). In 

a corresponding change, this rule would 

remove ECCN 1C238, which controls 

chlorine trifluoride, from the CCL as it 

would no longer be necessary. 

These proposed changes are discussed 

in more detail, below. 

New ECCN 1B608 (‘‘Equipment’’ 

‘‘Specially Designed’’ for Commodities 

in ECCN 1C608 or USML Category V) 

and ECCN 1B018 Amended 

Paragraph .a of ECCN 1B608 would 

control test, inspection, and production 

‘‘equipment’’ not specified elsewhere on 

the CCL or the USML that is ‘‘specially 

designed’’ for the ‘‘production’’ of 

energetic materials and related 

commodities controlled by proposed 

new ECCN 1C608 or USML Category V. 

This ‘‘equipment’’ would include items 

currently controlled under ECCN 

1B018.a.2 or .a.3. Paragraph .b of ECCN 

1B608 would control complete 

installations not specified elsewhere on 

the CCL or the USML (including 

complete installations currently 

controlled under ECCN 1B018.a.1) that 

are ‘‘specially designed’’ for the 

‘‘production’’ of energetic materials and 

related commodities controlled by 

proposed new ECCN 1C608 or USML 

Category V. Paragraph .c of ECCN 1B608 

would control environmental test 

facilities that are ‘‘specially designed’’ 

for the certification, qualification, or 


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testing of items controlled by proposed 

new ECCN 1C608 or USML Category V. 

Paragraphs .d through .w would be 

reserved for possible future use. 

Paragraph .x would control ‘‘parts,’’ 

‘‘components,’’ and ‘‘accessories and 

attachments’’ (including certain 

unfinished products that have reached a 

stage in manufacturing where they are 

clearly identifiable as commodities 

controlled by paragraph .x) that are 

‘‘specially designed’’ for a commodity 

controlled under paragraph .a, .b, or .c 

of ECCN 1B608 and not specified 

elsewhere on the CCL or the USML. 

These ‘‘parts,’’ ‘‘components,’’ and 

‘‘accessories and attachments’’ would 

include ‘‘specially designed’’ ‘‘parts’’ 

and ‘‘components’’ currently controlled 

under ECCN 1B018.a.4. Incorporating 

ECCN 1B018.a items into new ECCN 

1B608 is consistent with the regulatory 

construct identified in the July 15 

proposed rule, under which WAML 

items in 018 ECCNs will be 

consolidated with former USML items 

into 600 series ECCNs—ECCN 1B018, as 

amended, would cross reference ECCN 

1B608, and ECCN 1B018.a would be 

removed and reserved. Paragraph .y of 

ECCN 1B608 would control specific test, 

inspection, and production 

‘‘equipment’’ ‘‘specially designed’’ for 

the ‘‘production’’ or ‘‘development’’ of 

commodities controlled by ECCN 1B608 

or a defense article in USML Category 

V, and ‘‘parts,’’ ‘‘components,’’ and 

‘‘accessories and attachments’’ 

‘‘specially designed’’ therefor. Because 

this proposed rule does not list specific 

equipment under paragraph .y, subparagraphs .y.1 through .y.98 would be 

reserved for possible future use. 

New ECCN 1C608 (Energetic Materials 

and Related Commodities Not Listed 

Elsewhere in USML Category V or the 

CCL) and ECCN 1C018 Amended 

ECCN 1C608.a would control single 

base, double base, and triple base 

propellants having nitrocellulose with a 

nitrogen content greater than 12.6 

percent in the form of either: (i) 

Sheetstock or carpet rolls or (ii) grains 

with a diameter greater than 0.10 

inches. Paragraphs .b through .m of 

ECCN 1C608 would control commercial 

charges and devices, containing 

energetic materials, that are now 

controlled under ECCN 1C018.b through 

.m—as is currently the case with ECCN 

1C018.i, ECCN 1C608.i would be 

reserved. However, a Note following 

1C608.m would indicate that chlorine 

trifluoride, which is currently 

controlled under ECCNs 1C018.m and 

1C238, would be controlled under 

ECCN 1C111.a.3.f only, and not under 

new ECCN 1C608. Incorporating ECCN 

1C018 items into new ECCN 1C608 is 

consistent with the regulatory construct 

identified in the July 15 proposed rule, 

under which WAML items in 018 

ECCNs will be consolidated with former 

USML items into 600 series ECCNs. 

ECCN 1C018, as amended, would crossreference ECCN 1C608 and current 

ECCNs that control commercial charges 

and devices containing energetic 

materials. ECCN 1C608.n would control 

any explosives, propellants, oxidizers, 

pyrotechnics, fuels, binders, or 

additives that are ‘‘specially designed’’ 

for military application and are not 

listed elsewhere in the CCL or the 

USML. Paragraphs .o through .y would 

be reserved for possible future use. 

New ECCN 1D608 (‘‘Software’’ 

‘‘Specially Designed’’ for Commodities 

Controlled by 1B608 or 1C608) and 

ECCN 1D018 Amended 

ECCN 1D608.a would control 

‘‘software’’ ‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by proposed 

new ECCN 1B608 or 1C608. This 

‘‘software’’ would include ‘‘software,’’ 

currently controlled by ECCN 1D018, for 

‘‘equipment’’ described in ECCN 

1B018.a. Incorporating ECCN 1D018 

‘‘software’’ for ECCN 1B018.a items into 

new ECCN 1D608 is consistent with the 

regulatory construct identified in the 

July 15 proposed rule, under which 

WAML items in 018 ECCNs will be 

consolidated with former USML items 

into 600 series ECCNs—ECCN 1D018, as 

amended, would cross-reference ECCN 

1D608. Paragraphs .b through .x of 

ECCN 1D608 would be reserved for 

possible future use. Paragraph .y of 

ECCN 1D608 would control ‘‘software’’ 

‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by proposed 

ECCN 1B608.y. Because this proposed 

rule does not list specific ‘‘software’’ 

under paragraph .y, sub-paragraphs .y.1 

through .y.98 would be reserved for 

possible future use. 

New ECCN 1E608 (‘‘Technology’’ 

‘‘Required’’ for ‘‘Equipment’’ Controlled 

in 1B608 or Materials Controlled by 

1C608) 

ECCN 1E608.a would control 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

items controlled by ECCN 1B608 or 

1C608. This ‘‘technology’’ would 

include ‘‘technology,’’ currently 

controlled by ECCN 1E001, for 

‘‘equipment’’ currently described in 

ECCN 1B018.a—accordingly, ECCN 

1E001 would be amended to exclude 

both ‘‘technology’’ for current 1B018.a 

items that would be moved to ECCN 

1B608 and ‘‘technology’’ for 1C608 

items and to cross reference ECCN 

1E608 (the proposed amendments to 

ECCN 1E001 are described in more 

detail, below). Paragraph .b of 1E608 

would control ‘‘technology’’ for the 

‘‘development’’ or ‘‘production’’ of 

nitrocellulose with a nitrogen content 

over 12.6 percent and at rates greater 

than 2000 pounds per hour. Paragraph 

.c of 1E608 would control ‘‘technology’’ 

for the ‘‘development’’ or ‘‘production’’ 

of nitrate esters (e.g., nitroglycerine) at 

rates greater than 2000 pounds per hour. 

Paragraph .y of 1E608 would control 

specific ‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul or refurbishing of 

commodities controlled by ECCN 

1B608.y or ‘‘software’’ controlled by 

ECCN 1D608.y. Because this proposed 

rule does not list specific ‘‘technology’’ 

under paragraph .y, sub-paragraphs .y.1 

through .y.98 would be reserved for 

possible future use. 

Inclusion of ‘‘.y.99’’ Paragraphs in 600 

Series ECCNs 

Proposed new ECCNs 1B608, 1D608, 

and 1E608 would also contain a 

paragraph ‘‘.y.99’’ that would control 

any item that meets all of following 

criteria: (i) The item is not listed on the 

CCL; (ii) the item was previously 

determined to be subject to the EAR in 

an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State; and (iii) the item 

would otherwise be controlled under 

one of these Category 1, 600 series, 

ECCNs because, for example, the item 

was ‘‘specially designed’’ for a military 

use. Items in these .y.99 paragraphs 

would be subject to antiterrorism (AT 

Column 1) controls only. 

Applicable Controls for New 600 Series 

ECCNs 

ECCN 1B608, 1C608, 1D608, and 

1E608 items (except for items in ECCN 

1B608.y, 1D608.y, or 1E608.y—1C608.y 

is reserved) would be subject to national 

security (NS Column 1), regional 

stability (RS Column 1), and 

antiterrorism (AT Column 1) controls. 

In addition, missile technology (MT 

Column 1) controls would apply to: 

equipment controlled by ECCN 1B608 

that is ‘‘specially designed’’ for the 

‘‘production’’ of rocket propellants; 

oxidizers or mixtures controlled under 

ECCN 1C608.m; ‘‘software’’ in ECCN 

1D608 that is ‘‘specially designed’’ for 

oxidizers or mixtures controlled under 


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ECCN 1C608.m; and ‘‘technology’’ in 

ECCN 1E608 that is ‘‘required’’ for 

oxidizers or mixtures controlled under 

ECCN 1C608.m. 

Under ECCN 1B018.a, ‘‘equipment’’ 

for the ‘‘production’’ of military 

explosives and solid propellants is 

controlled for national security, regional 

stability, antiterrorism and United 

Nations reasons. In addition, such 

‘‘equipment’’ that is for the 

‘‘production’’ of rocket propellants, is 

controlled for missile technology 

reasons. Under ECCN 1C018, 

commercial charges and devices 

containing energetic materials are 

controlled for national security, 

antiterrorism and United Nations 

reasons, and items classified under 

ECCN 1C018.m are also controlled for 

missile technology reasons. Items 

moving to proposed ECCN 1B608 and to 

proposed 1C608 would no longer be 

controlled for United Nations reasons, 

although they would retain their other 

current reasons for control. Controlling 

these items for United Nations reasons 

is unnecessary in light of the November 

7 proposed rule’s amendment to the RS 

Column 1 licensing policy, which stated 

that there would be a general policy of 

denial for ‘‘600 series’’ items if the 

destination is subject to a United States 

arms embargo. A list of such 

destinations is identified in proposed 

section 740.2(a)(12), published in the 

November 7 proposed rule. 

ECCN 1C111 Amended and ECCN 

1C238 Removed 

This proposed rule would amend 

ECCN 1C111 by adding under 1C111.a 

and 1C111.d, respectively, aluminum 

powder and hydrazine and derivatives 

thereof, which the President determines 

no longer warrant control under USML 

Category V. These items would be 

added to ECCN 1C111 because they 

possess characteristics that are more 

similar to the propellants, and 

constituent chemicals therefor, that are 

controlled under ECCN 1C111 than the 

energetic materials that would be 

controlled under proposed ECCN 

1C608. Like the items currently 

controlled under ECCN 1C111, these 

additional items would be subject to 

missile technology (MT Column 1) 

controls and anti-terrorism (AT Column 

1) controls. In addition, this proposed 

rule would amend the Related Controls 

paragraph in ECCN 1C111 to indicate 

that ECCN 1C608 controls oxidizers that 

are composed of fluorine (and also other 

halogens, oxygen, or nitrogen), except 

for chlorine trifluoride, which would be 

controlled under ECCN 1C111.a.3.f. 

Chlorine trifluoride currently is 

controlled under both ECCNs 1C018.m 

and 1C238—ECCN 1C018.m controls 

chlorine trifluoride for missile 

technology (MT Column 1), regional 

stability (RS Column 1), and antiterrorism (AT Column 1) reasons, while 

ECCN 1C238 controls chlorine 

trifluoride for nuclear nonproliferation 

(NP Column 1) and anti-terrorism (AT 

Column 1) reasons. This proposed rule 

would remove chlorine trifluoride from 

ECCNs 1C018.m and 1C238 and control 

it under ECCN 1C111.a.3.f only, rather 

than also controlling it under ECCN 

1C608.m, because chlorine trifluoride is 

not on the WAML and, consequently, is 

not subject to national security (NS) 

controls. Accordingly, this proposed 

rule would amend ECCN 1C111 to 

control chlorine trifluoride under ECCN 

1C111.a.3.f for nuclear nonproliferation 

(NP Column 1) reasons, in addition to 

the MT and AT reasons for control that 

currently apply under this ECCN. 

Regional stability (RS Column 1) 

controls would no longer apply to 

chlorine trifluoride, because such 

controls would be redundant in view of 

the fact that they apply to the same 

group of destinations as missile 

technology controls (i.e., both RS 

Column 1 and MT Column 1 apply to 

all destinations, except for Canada). 

Because ECCN 1C238 currently controls 

chlorine trifluoride only, this ECCN 

would be removed from the CCL. 

ECCN 1E001 Amended 

This proposed rule would amend 

ECCN 1E001 by revising the ECCN 

heading to exclude ‘‘technology’’ for 

items that, with this proposed rule, 

would be controlled under proposed 

new ECCN 1B608 or 1C608 and by 

amending the Related Controls 

paragraph in the List of Items Controlled 

to include a reference to proposed new 

ECCN 1E608. In addition, this rule 

proposes to amend the nuclear 

nonproliferation (NP) controls 

paragraph in the License Requirements 

section of ECCN 1E001 to include 

‘‘technology’’ for ECCN 1C111 items 

controlled for NP reasons (i.e., chlorine 

trifluoride in ECCN 1C111.a.3.f). As a 

result of this change and the addition of 

chlorine trifluoride to ECCN 1C111, as 

described above, ‘‘technology’’ for the 

‘‘development’’ or ‘‘production’’ of 

chlorine trifluoride (ClF3) would be 

controlled under ECCN 1E001 for 

missile technology (MT Column 1), 

nuclear nonproliferation (NP Column 1), 

and anti-terrorism (AT Column 1) 

reasons. 

In addition, this proposed rule would 

amend the reference to ECCN 1E002.g, 

in the Related Controls paragraph of 

ECCN 1E001, to address control libraries 

(parametric technical databases) 

specially designed or modified to enable 

equipment to perform the functions of 

equipment controlled under either 

1A004.c (Nuclear, biological and 

chemical (NBC) detection systems) or 

1A004.d (Equipment for detecting or 

identifying explosives residues)— 

currently, only 1A004.c equipment is 

referenced. Adding 1A004.d as a cross 

reference corrects an inadvertent but 

non-substantive omission in the EAR as 

ECCN 1E002.g refers to both 1A004.c 

and 1A004.d. 

ECCN 1E101 Amended 

This proposed rule would amend the 

License Requirements section of ECCN 

1E101, consistent with the ‘‘technology’’ 

controls of the Nuclear Suppliers Group 

(NSG), to apply nuclear nonproliferation 

(NP Column 1) controls to ‘‘use’’ 

‘‘technology’’ for ECCN 1C111 items 

controlled for NP reasons (i.e., chlorine 

trifluoride in ECCN 1C111.a.3.f). As a 

result of this change, ‘‘use’’ 

‘‘technology’’ for chlorine trifluoride 

would be controlled for nuclear 

nonproliferation (NP Column 1), missile 

technology (MT Column 1), and antiterrorism (AT Column 1) reasons under 

ECCN 1E101. This change is consistent 

with the proposal in this rule to remove 

chlorine trifluoride from ECCNs 

1C018.m and 1C238 and control 

chlorine trifluoride exclusively under 

ECCN 1C111.a.3.f. Currently, ‘‘use’’ 

‘‘technology’’ for chlorine trifluoride is 

controlled under ECCN 1E201 for 

nuclear nonproliferation (NP Column 1) 

and anti-terrorism (AT Column 1) 

reasons, only. As described below, this 

rule would amend ECCN 1E201 to 

remove ‘‘use’’ ‘‘technology’’ for chlorine 

trifluoride. 

ECCN 1E201 Amended 

ECCN 1E201 currently controls ‘‘use’’ 

‘‘technology’’ for chlorine trifluoride for 

nuclear nonproliferation (NP Column 1) 

and anti-terrorism (AT Column 1) 

reasons. This proposed rule would 

amend ECCN 1E201 by revising the 

ECCN heading to remove ‘‘technology’’ 

for ECCN 1C238 items (i.e., chlorine 

trifluoride), consistent with the ECCN 

1C111 and 1E101 changes described 

above, whereby chlorine trifluoride 

would be controlled under ECCN 

1C111.a.3.f, only, and ECCN 1E101 

would be amended to control ‘‘use’’ 

‘‘technology’’ for chlorine trifluoride. 

Corresponding Amendments 

To implement the regional stability 

controls that apply to the four new 600 

series ECCNs noted above, this 

proposed rule would revise § 742.6 of 

the EAR to apply the RS Column 1 

licensing policy to commodities 


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classified under ECCN 1B608 (except 

1B608.y) and 1C608 and to related 

‘‘software’’ and ‘‘technology’’ classified 

under ECCNs 1D608 and 1E608 (except 

1D608.y and 1E608.y), respectively. 

Relationship to the July 15 and 

November 7 Proposed Rules 

As referenced above, the purpose of 

the July 15 proposed rule was to set up 

the framework to support the transfer of 

items that the President determines no 

longer warrant control on the USML 

from the USML to the CCL. To facilitate 

that goal, the July 15 proposed rule 

contained definitions and concepts that 

were meant to be applied across 

categories. However, as BIS undertakes 

rulemakings to move specific categories 

of items from the USML to the CCL, 

there may be unforeseen issues or 

complications that may require BIS to 

reexamine those definitions and 

concepts. The comment period for the 

July 15 proposed rule closed on 

September 13, 2011. In the November 7 

proposed rule, BIS proposed several 

changes to those definitions and 

concepts. The comment period for the 

November 7 proposed rule closed on 

December 22, 2011. 

To the extent that this rule’s proposals 

affect any provision in either of those 

proposed rules or any provision in 

either of those proposed rules affect this 

proposed rule, BIS will consider 

comments on those provisions so long 

as they are within the context of the 

changes proposed in this rule. 

BIS believes that the following aspects 

of the July 15 proposed rule and the 

November 7 proposed rule are among 

those that could affect this proposed 

rule: 

• De minimis provisions in § 734.4; 

• Restrictions on use of license 

exceptions in §§ 740.2, 740.10, 740.11, 

and 740.20; 

• Change to national security 

licensing policy in § 742.4; 

• Addition of 600 series items to 

Supplement No. 2 to Part 744—List of 

Items Subject to the Military End-Use 

Requirement of § 744.21; and 

• Definitions of terms in § 772.1. 

BIS believes that the following 

provisions of this proposed rule are 

among those that could affect the 

provisions of the July 15 and November 

7 proposed rules: 

• Additional 600 series items 

identified in the RS Column licensing 

policy described in § 742.6. 

Effects of This Proposed Rule 

BIS believes that the principal effect 

of this rule, when considered in the 

context of the other similar proposed 

rules being published as part of the 

Export Control Reform Initiative, will be 

to provide greater flexibility for exports 

and reexports to NATO member 

countries and other multiple-regimemember countries of items the President 

determines no longer warrant control on 

the USML. This greater flexibility would 

be in the form of: application of the 

EAR’s de minimis threshold principle 

for items constituting less than a de 

minimis amount of controlled U.S.- 

origin content in foreign made items; 

availability of license exceptions, 

particularly License Exceptions 

‘‘Servicing and Replacement of Parts 

and Equipment’’ (RPL) and ‘‘Strategic 

Trade Authorization’’ (STA); 

elimination of the requirements for 

manufacturing license agreements and 

technical assistance agreements in 

connection with exports of technology; 

and a reduction in, or elimination of, 

exporter and manufacturer registration 

requirements and associated registration 

fees. Some of these specific effects are 

discussed in more detail below. 

De Minimis 

The July 15 proposed rule would 

impose certain unique de minimis 

requirements on items controlled under 

the new 600 series ECCNs. Section 

734.3 of the EAR provides, inter alia, 

that, under certain conditions, items 

made outside the United States that 

incorporate items subject to the EAR are 

not subject to the EAR if they do not 

exceed a ‘‘de minimis’’ percentage of 

controlled U.S. origin content. 

Depending on the destination, the de 

minimis percentage can be either 10 

percent or 25 percent. If the July 15 

proposed rule’s amendments at § 734.4 

of the EAR are adopted, the new ECCNs 

1B608, 1C608, 1D608, and 1E608 

proposed in this rule would be subject 

to the de minimis provisions set forth in 

the July 15 proposed rule. Foreign-made 

items incorporating items controlled 

under the new ECCNs would become 

eligible for de minimis treatment at the 

10 percent level (i.e., a foreign-made 

item is not subject to the EAR, for de 

minimis purposes, if the value of its 

U.S.-origin controlled content does not 

exceed 10 percent of foreign-made 

item’s value). In contrast, the AECA 

does not permit the ITAR to have a de 

minimis treatment for USML-listed 

items, regardless of the significance or 

insignificance of the U.S.-origin content 

or the percentage of U.S.-origin content 

in the foreign-made item (i.e., USMLlisted items remain subject to the ITAR 

when they are incorporated abroad into 

a foreign-made item, regardless of either 

of these factors). In addition, foreignmade items that incorporate any items 

that are currently classified under an 

018 ECCN (e.g., ECCNs 1B018.a, 1C018, 

and 1D018) and that are moved to a new 

600 series ECCN (e.g., ECCNs 1B608, 

1C608, and 1D608, respectively) would 

be subject to the EAR if those foreignmade items contained more than 10 

percent U.S.-origin controlled content, 

regardless of the destination and 

regardless of the proportion of the U.S.- 

origin controlled content accounted for 

by the former 018 ECCN items. 

Use of License Exceptions 

The July 15 proposed rule would 

impose certain restrictions on the use of 

license exceptions for items that would 

be controlled under the new 600 series 

ECCNs on the CCL. For example, 

proposed § 740.2(a)(12) would make 600 

series items that are destined for a 

country subject to a United States arms 

embargo ineligible for shipment under a 

license exception, except where 

authorized by License Exception GOV 

under § 740.11(b)(2)(ii) of the EAR. BIS 

believes that, even with the July 15 and 

November 7 proposed restrictions on 

the use of license exceptions for 600 

series items, the restrictions on those 

items currently on the USML would be 

reduced, particularly with respect to 

exports to NATO members and 

multiple-regime member countries, if 

those items are moved from the USML 

to proposed ECCN 1B608 or 1C608. BIS 

also believes that, in practice, the 

movement of items from a 018 ECCN to 

a new 600 series ECCN (e.g., 

‘‘equipment’’ for the ‘‘production’’ of 

military explosives and solid 

propellants from ECCN 1B018.a to new 

ECCN 1B608 and commercial charges 

and devices containing energetic 

materials from ECCN 1C018.b through 

.m to new ECCN 1C608.b through .m, 

respectively) would have little effect on 

license exception availability for those 

items. However, BIS is aware of two 

situations (the use of License Exceptions 

GOV and STA) in which movement of 

items from a 018 ECCN to a new 600 

series ECCN could, in practice, impose 

greater limits on the use of license 

exceptions than currently is the case. 

First, the July 15 proposed rule would 

limit the use of License Exception GOV 

for 600 series commodities to situations 

in which the United States Government 

is the consignee and end user or to 

situations in which the consignee or end 

user is the government of a country 

listed in § 740.20(c)(1). Currently, 

‘‘production’’ and test ‘‘equipment’’ not 

subject to MT controls under ECCN 

1B018.a and commercial charges and 

devices containing energetic materials 

classified under ECCN 1C018.b through 

.l may be exported under any provision 

of License Exception GOV to any 


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destination authorized by that provision 

if all of the conditions of that provision 

are met and nothing else in the EAR 

precludes such shipment. 

Second, the July 15 proposed rule 

would: (i) limit the use of License 

Exception STA for ‘‘end items’’ in 600 

series ECCNs to those end items for 

which a specific request for License 

Exception STA eligibility (filed in 

conjunction with a license application) 

has been approved; and (ii) require that 

the end item be for ultimate end use by 

a foreign government agency of a type 

specified in the July 15 proposed rule. 

The July 15 proposed rule also would 

limit exports of 600 series parts, 

components, accessories, and 

attachments under License Exception 

STA for ultimate end use by the same 

set of end users. Neither the end-item 

restriction nor the restriction applicable 

to parts, components, accessories, and 

attachments currently applies to the use 

of License Exception STA for 

‘‘production’’ and test ‘‘equipment’’ not 

subject to MT controls under ECCN 

1B018.a and for commodities classified 

under ECCN 1C018.b through .l, but the 

latter restriction would apply to these 

items under new ECCNs 1B608 and 

1C608, respectively. In addition, the 

July 15 proposed rule would limit the 

shipment of 600 series items under 

License Exception STA to destinations 

listed in § 740.20(c)(1). Currently, ECCN 

1B018.a ‘‘production’’ and test 

‘‘equipment’’ (which would be moved to 

ECCN 1B608 by this proposed rule) that 

is not MT-controlled and commodities 

classified under ECCN 1C018.b through 

.l (which would be moved to ECCN 

1C608.b through .l, respectively, by this 

proposed rule) may be shipped under 

License Exception STA to destinations 

listed in § 740.20(c)(1) or (c)(2). 

In addition, this proposed rule 

provides that a license exception 

eligibility request would not have to be 

submitted for STA-eligible items 

controlled under new ECCN 1B608 or 

1C608. As proposed in the July 15 rule, 

the use of License Exception STA for 

‘‘end items’’ in 600 series ECCNs would 

be prohibited, unless a specific request 

for License Exception STA eligibility 

has been submitted to, and approved by, 

BIS. 

Items controlled under new ECCN 

1B608 or 1C608 (except those controlled 

for MT reasons) would be eligible for 

License Exception LVS (limited value 

shipments) up to a value of $1,500. Note 

that for items previously classified 

under ECCN 1B018 that would, under 

this proposal, be classified under ECCN 

1B608, the threshold for LVS 

availability would drop from $3,000 to 

$1,500 with this proposed change (and 

increase from $0 to $1,500 for Rwanda). 

For items previously classified under 

ECCN 1C018 that would, under this 

proposal, be classified under ECCN 

1C608, the threshold for LVS 

availability would drop from $3,000 to 

$1,500 (and LVS would become 

available for Rwanda). Items controlled 

under new ECCN 1B608 (except those 

controlled for MT reasons) also would 

be eligible for License Exceptions TMP 

(temporary exports), and RPL (servicing 

and replacement parts). 

Making U.S. Export Controls More 

Consistent With the Wassenaar 

Arrangement Munitions List Controls 

Since the beginning of the Export 

Control Reform Initiative, the 

Administration has stated that the 

reforms will be consistent with the 

United States’ obligations to the 

multilateral export control regimes. 

Accordingly, the Administration will, in 

this and subsequent proposed rules, 

exercise its national discretion to 

implement, clarify, and, to the extent 

feasible, align its controls with those of 

the regimes. For example, proposed 

ECCNs 1B608, 1D608, and 1E608 

implement, to the extent possible, the 

controls in WAML Category 18 for 

production equipment, the controls in 

WAML Category 21 for software, and 

the controls in WAML Category 22 for 

technology, while proposed ECCN 

1C608 implements, to the extent 

possible and to the extent that such 

items would not be controlled on the 

USML, the controls in WAML Category 

8. 

Other Effects: National Security and 

Regional Stability Controls 

Pursuant to the framework identified 

in the July 15 proposed rule, energetic 

materials and related commodities 

classified under ECCN 1C608 and 

related test, inspection and production 

equipment, software and technology 

classified under ECCN 1B608, 1D608 or 

1E608, respectively (except items 

classified under the .y paragraphs of 

these ECCNs), would be subject to the 

licensing policies that apply to items 

controlled for national security (NS) 

reasons, as described in § 742.4(b)(1)— 

specifically, NS Column 1 controls. In 

addition, all commodities in ECCN 

1C608, along with related test, 

inspection and production equipment, 

software and technology classified 

under ECCN 1B608, 1D608 or 1E608, 

respectively (except items classified 

under the .y paragraphs of these 

ECCNs), would be subject to the 

regional stability licensing policies set 

forth in § 742.6(a)(1)—specifically, RS 

Column 1. Consistent with this policy, 

this proposed rule would revise § 742.6 

of the EAR to apply the RS Column 1 

licensing policy to commodities 

classified under ECCN 1B608 (except 

1B608.y) and 1C608 and to related 

‘‘software’’ and ‘‘technology’’ classified 

under ECCNs 1D608 and 1E608 (except 

1D608.y and 1E608.y). 

The July 15 proposed rule would 

amend § 742.4 to apply a general policy 

of denial to 600 series items for 

destinations that are subject to a United 

States arms embargo. That policy would 

apply to all items controlled for national 

security (NS) reasons under this 

proposed rule. The November 7 

proposed rule would expand that 

general policy of denial to include 600 

series items subject to the licensing 

policies that apply to items controlled 

for regional stability reasons, as 

described in § 742.6(b)(1)—specifically, 

RS Column 1. While this change might 

seem redundant for the items affected 

by this proposed rule, it ensures that a 

general denial policy would apply to 

any 600 series items that are controlled 

for missile technology (MT) and 

regional stability (RS) reasons, but not 

for national security (NS) reasons (as 

would be the case for certain items 

affected by the aircraft rule). 

Section-by-Section Description of the 

Proposed Changes 

• Section 742.6—ECCNs 1B608, 

1C608, 1D608, and 1E608 are added to 

§ 742.6(a)(1) to impose an RS Column 1 

license requirement and licensing 

policy, including a general policy of 

denial in Section 742.6(b)(1) for 

applications to export or reexport ‘‘600 

series’’ items to destinations that are 

subject to a United States arms embargo. 

• Supplement No. 1 to part 774— 

ECCNs 1B608, 1C608, 1D608, and 1E608 

are added to Supplement No. 1 to part 

774. ECCN 1B018 is amended to remove 

and reserve 1B018.a and to cross 

reference ‘‘production’’ and test 

‘‘equipment’’ that would be moved from 

1B018.a to proposed new ECCN 1B608. 

ECCN 1C018 is amended to remove all 

language except cross references to 

commercial charges and devices 

containing energetic materials that 

would be moved from ECCN 1C018 to 

proposed new ECCN 1C608 under 

paragraphs .b through .m, respectively. 

ECCN 1C111 is amended to add certain 

aluminum powder and hydrazine and 

derivatives thereof. ECCN 1D018 is 

amended to remove ‘‘software’’ for 

ECCN 1B018.a ‘‘production’’ and test 

‘‘equipment’’ and to cross reference 

such equipment in proposed new ECCN 

1D608. ECCN 1E001 is amended to 

remove ‘‘technology’’ for 1B018.a items 

that would be moved to proposed new 


emcdonald on DSK29S0YB1PROD with PROPOSALS
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ECCN 1B608 and to cross reference such 

‘‘technology’’ in proposed new ECCN 

1E608. 

Request for Comments 

BIS seeks comments on this proposed 

rule. BIS will consider all comments 

received on or before June 18, 2012. All 

comments (including any personally 

identifying information or information 

for which a claim of confidentially is 

asserted either in those comments or 

their transmittal emails) will be made 

available for public inspection and 

copying. Parties who wish to comment 

anonymously may do so by submitting 

their comments via Regulations.gov, 

leaving the fields that would identify 

the commenter blank and including no 

identifying information in the comment 

itself. 

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 12, 2011, 76 FR 50661 

(August 16, 2011), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. BIS 

continues to carry out the provisions of 

the Export Administration Act, as 

appropriate and to the extent permitted 

by law, pursuant to Executive Order 

13222. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget (OMB). 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor is 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 

OMB control number. This proposed 

rule would affect two approved 

collections: Simplified Network 

Application Processing + System 

(control number 0694–0088), which 

includes, among other things, license 

applications, and License Exceptions 

and Exclusions (0694–0137). 

As stated in the July 15, 2011, 

proposed rule (76 FR 41958), BIS 

believes that the combined effect of all 

rules to be published adding items to 

the EAR that would be removed from 

the ITAR as part of the administration’s 

Export Control Reform Initiative would 

increase the number of license 

applications to be submitted by 

approximately 16,000 annually, 

resulting in an increase in burden hours 

of 5,067 (16,000 transactions at 17 

minutes each) under control number 

0694–0088. 

Some items formerly on the USML 

would become eligible for License 

Exception STA under this rule. As 

specified in the STA eligibility 

paragraphs for 1B608 and 1C608, such 

items would not need a determination 

of eligibility per § 740.20(g) of the EAR. 

As stated in the July 15 proposed rule, 

BIS believes that the increased use of 

License Exception STA resulting from 

the combined effect of all rules to be 

published adding items to EAR that 

would be removed from the ITAR as 

part of the administration’s Export 

Control Reform Initiative would 

increase the burden associated with 

control number 0694–0137 by about 

23,858 hours (20,450 transactions at 1 

hour and 10 minutes each). 

BIS expects that this increase in 

burden would be more than offset by a 

reduction in burden hours associated 

with approved collections related to the 

ITAR. This proposed rule addresses 

controls on energetic materials and 

related parts, components, production 

equipment, software, and technology. 

The largest impact of the proposed rule 

would be with respect to exporters of 

parts and components because, under 

the proposed rule, most U.S. and foreign 

energetic materials and associated 

equipment would continue to be subject 

to the ITAR. Because, with few 

exceptions, the ITAR allows exemptions 

from license requirements only for 

exports to Canada, most exports to 

integrators for U.S Government 

equipment and most exports of routine 

maintenance parts and components for 

NATO and other close allies require 

State Department authorization. In 

addition, the exports necessary to 

produce parts and components for 

defense articles in the inventories of the 

United States and its NATO and other 

close allies require State Department 

authorizations. Under the EAR, as 

proposed, a small number of low-level 

parts would not require a license to 

most destinations. Most other parts, 

components, accessories, and 

attachments would become eligible for 

export to NATO and other close allies 

under License Exception STA. Use of 

License Exception STA imposes a 

paperwork and compliance burden 

because, for example, exporters must 

furnish information about the item 

being exported to the consignee and 

obtain from the consignee an 

acknowledgement and commitment to 

comply with the EAR. It is, however, the 

Administration’s understanding that 

complying with the requirements of 

STA is likely to be less burdensome 

than applying for licenses. For example, 

under License Exception STA, a single 

consignee statement can apply to an 

unlimited number of products, need not 

have an expiration date and need not be 

submitted to the government in advance 

for approval. Suppliers with regular 

customers can tailor a single statement 

and assurance to match their business 

relationship rather than applying 

repeatedly for licenses with every 

purchase order to supply allied and, in 

some cases, U.S. forces with routine 

replacement parts and components. 

Even in situations in which a license 

would be required under the EAR, the 

burden likely will be reduced compared 

to the license requirement of the ITAR. 

In particular, license applications for 

exports of technology controlled by 

ECCN 1E608 are likely to be less 

complex and burdensome than the 

authorizations required to export ITARcontrolled technology, i.e., 

Manufacturing License Agreements and 

Technical Assistance Agreements. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Regulatory Flexibility Act 

(RFA), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA), 5 U.S.C. 

601 et seq., generally requires an agency 

to prepare an initial regulatory 

flexibility analysis (IRFA) for any rule 

subject to the notice and comment 

rulemaking requirements under the 

Administrative Procedure Act (5 U.S.C. 

553) or any other statute, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Under section 605(b) of the RFA, 

however, if the head of an agency 

certifies that a rule will not have a 

significant impact on a substantial 

number of small entities, the RFA does 

not require the agency to prepare a 

regulatory flexibility analysis. Pursuant 

to section 605(b), the Chief Counsel for 

Regulation, Department of Commerce, 


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Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Proposed Rules 25939 

certified to the Chief Counsel for 

Advocacy, Small Business 

Administration that this proposed rule, 

if promulgated, will not have a 

significant impact on a substantial 

number of small entities. 

Number of Small Entities 

The Bureau of Industry and Security 

(BIS) does not collect data on the size 

of entities that apply for and are issued 

export licenses. Although BIS is unable 

to estimate the exact number of small 

entities that would be affected by this 

rule, it acknowledges that this rule 

would affect some unknown number. 

Economic Impact 

This proposed rule is part of the 

Administration’s Export Control Reform 

Initiative. Under that initiative, the 

United States Munitions List (22 CFR 

part 121) (USML) will be revised to be 

a ‘‘positive’’ list, i.e., a list that does not 

use generic, catch-all controls on any 

part, component, accessory, attachment, 

or end item that was in any way 

specifically modified for a defense 

article, regardless of the article’s 

military or intelligence significance or 

non-military applications. At the same 

time, articles that are determined to no 

longer warrant control on the USML 

will become controlled on the 

Commerce Control List (CCL). Such 

items, along with certain military items 

that currently are on the CCL, will be 

identified in specific Export Control 

Classification Numbers (ECCNs) known 

as the ‘‘600 series’’ ECCNs. In addition, 

some items currently on the CCL will 

move from existing ECCNs to the new 

600 series ECCNs. 

This rule addresses certain energetic 

materials and related articles currently 

enumerated in USML Category V 

(Explosives and Energetic Materials, 

Propellants, Incendiary Agents and 

Their Constituents) and items currently 

controlled under ECCN 1B018.a 

(Equipment for the Production of 

Military Explosives and Solid 

Propellants), ECCN 1C018 (Commercial 

Charges and Devices Containing 

Energetic Materials on the Wassenaar 

Arrangement Munitions List), ECCN 

1D018 (‘‘Software’’ for Equipment 

Controlled by ECCN 1B018.a), and 

ECCN 1E001 (‘‘Technology’’ for the 

‘‘Development’’ or ‘‘Production’’ of 

Items Controlled by ECCN 1B018.a). 

Most energetic materials and associated 

equipment would remain on the USML. 

However, parts and components, which 

are more likely to be produced by small 

businesses than are energetic materials 

and related production equipment, 

would in many cases become subject to 

the EAR. In addition, officials of the 

Department of State have informed BIS 

that license applications for such parts 

and components are a high percentage 

of the license applications for USML 

articles reviewed by that department. 

Changing the jurisdictional status of 

certain Category V items would reduce 

the burden on small entities (and other 

entities as well) through: (i) elimination 

of some license requirements; (ii) greater 

availability of license exceptions; (iii) 

simpler license application procedures; 

and (iv) reduced or eliminated 

registration fees. 

In addition, parts and components 

that are controlled under the ITAR 

remain under ITAR control when 

incorporated into foreign-made items, 

regardless of the significance or 

insignificance of the item. This 

discourages foreign buyers from 

incorporating such U.S. content. The 

availability of de minimis treatment 

under the EAR, for those items that 

would no longer be controlled under the 

ITAR, may reduce the disincentive for 

foreign manufacturers to purchase U.S.- 

origin parts and components. 

Many exports and reexports of the 

Category V articles that would be placed 

on the CCL by this rule, particularly 

parts and components, would become 

eligible for license exceptions that apply 

to shipments to U.S. Government 

agencies, parts and components being 

exported for use as replacement parts, 

temporary exports, and License 

Exception Strategic Trade Authorization 

(STA), reducing the number of licenses 

that exporters of these items would 

need. License Exceptions under the EAR 

would allow suppliers to send routine 

replacement parts and low level parts to 

NATO and other close allies and export 

control regime partners for use by those 

governments and for use by contractors 

building equipment for those 

governments or for the U.S. Government 

without having to obtain export 

licenses. Under License Exception STA, 

the exporter would need to furnish 

information about the item being 

exported to the consignee and obtain a 

statement from the consignee that, 

among other things, would commit the 

consignee to comply with the EAR and 

other applicable U.S. laws. Because 

such statements and obligations can 

apply to an unlimited number of 

transactions and have no expiration 

date, they would create a net reduction 

in burden on transactions that the 

government routinely approves through 

the license application process that the 

License Exception STA statements 

would replace. 

Even for exports and reexports for 

which a license would be required, the 

process would be simpler and less 

costly under the EAR. When a USML 

Category V article is moved to the CCL, 

the number of destinations for which a 

license is required would remain 

unchanged. However, the burden on the 

license applicant would decrease 

because the licensing procedure for CCL 

items is simpler and more flexible that 

the license procedure for USML articles. 

Under the USML licensing procedure, 

an applicant must include a purchase 

order or contract with its application. 

There is no such requirement under the 

CCL licensing procedure. This 

difference gives the CCL applicant at 

least two advantages. First, the 

applicant has a way to determine 

whether the U.S. government will 

authorize the transaction before it enters 

into potentially lengthy, complex and 

expensive sales presentations or 

contract negotiations. Under the USML 

procedure, the applicant must caveat all 

sales presentations with a reference to 

the need for government approval, and 

is more likely to engage in substantial 

effort and expense only to find that the 

government will reject the application. 

Second, a CCL license applicant need 

not limit its application to the quantity 

or value of one purchase order or 

contract. It may apply for a license to 

cover all of its expected exports or 

reexports to a specified consignee over 

the life of a license (normally two years, 

but may be longer if circumstances 

warrant a longer period), thus reducing 

the total number of licenses for which 

the applicant must apply. 

In addition, many applicants 

exporting or reexporting items that this 

rule proposes to transfer from the USML 

to the CCL would realize cost savings 

through the elimination of some or all 

registration fees currently assessed 

under the USML’s licensing procedure. 

Currently, USML applicants must pay to 

use the USML licensing procedure even 

if they never actually are authorized to 

export. Registration fees for 

manufacturers and exporters of articles 

on the USML start at $2,500 per year, 

increase to $2,750 for organizations 

applying for one to ten licenses per year 

and further increases to $2,750 plus 

$250 per license application (subject to 

a maximum of three percent of total 

application value) for those who need to 

apply for more than ten licenses per 

year. Conversely, there are no 

registration or application processing 

fees for applications to export items 

listed on the CCL. Once the Category V 

items that are the subject to this 

rulemaking are removed from the USML 

and added to the CCL, entities currently 

applying for licenses from the 

Department of State would find their 

registration fees reduced if the number 


emcdonald on DSK29S0YB1PROD with PROPOSALS
25940 Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Proposed Rules 

of USML licenses those entities need 

declines. If an entity’s entire product 

line is moved to the CCL, its ITAR 

registration and registration fee 

requirement would be eliminated. 

De minimis treatment under the EAR 

would become available for all items 

that this rule proposes to transfer from 

the USML to the CCL. Items subject to 

the ITAR will remain subject to the 

ITAR when they are incorporated 

abroad into a foreign-made product 

regardless of the percentage of U.S 

content in that foreign-made product. 

However, foreign-made products 

incorporating items that this rule would 

move to the CCL would be subject to the 

EAR only if their total controlled U.S.- 

origin content exceeds 10 percent. 

Because including small amounts of 

U.S.-origin content would not subject 

foreign-made products to the EAR, 

foreign manufacturers would have less 

incentive to refrain from purchasing 

such U.S.-origin parts and components, 

a development that potentially would 

mean greater sales for U.S. suppliers, 

including small entities. 

For items currently on the CCL that 

would be moved from existing ECCNs to 

the new 600 series, license exception 

availability would be narrowed 

somewhat and the applicable de 

minimis threshold for foreign-made 

products containing those items would 

in some cases be reduced from 25 

percent to 10 percent. However, BIS 

believes that any increased burden 

imposed by those actions would be 

offset substantially by the reduction in 

burden attributable to the moving of 

items from the USML to CCL and the 

compliance benefits associated with the 

consolidation of all WAML items 

subject to the EAR in one series of 

ECCNs. These changes also would 

reduce the burden on small entities by 

resolving actual and potential 

jurisdictional uncertainty with respect 

to items that are related to articles 

enumerated in USML Category V. 

Conclusion 

BIS is unable to determine the precise 

number of small entities that would be 

affected by this rule. Based on the facts 

and conclusions set forth above, BIS 

believes that any burdens imposed by 

this rule would be offset by a reduction 

in the number of items that would 

require a license, increased 

opportunities for use of license 

exceptions for exports to certain 

countries, simpler export license 

applications, reduced or eliminated 

registration fees, and application of a de 

minimis threshold for foreign-made 

items incorporating U.S.-origin parts 

and components, which would reduce 

the incentive for foreign buyers to 

design out or avoid U.S.-origin content. 

For these reasons, the Chief Counsel for 

Regulation of the Department of 

Commerce certified to the Chief Counsel 

for Advocacy of the Small Business 

Administration that this rule, if adopted 

in final form, would not have a 

significant economic impact on a 

substantial number of small entities. 

Accordingly, no IRFA is required, and 

none has been prepared. 

List of Subjects 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, parts 742 and 774 of the 

Export Administration Regulations (15 

CFR parts 730–774) are proposed to be 

amended as follows: 

15 CFR PART 742—[AMENDED] 

1. 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 12, 2011, 76 FR 

50661 (August 16, 2011); Notice of November 

9, 2011, 76 FR 70319 (November 10, 2011). 

2. Section 742.6 is amended by 

revising paragraph (a)(1) to read as 

follows: 

§ 742.6 Regional stability. 

(a) * * * 

(1) RS Column 1 License 

Requirements in General. As indicated 

in the CCL and in RS column 1 of the 

Commerce Country Chart (see 

Supplement No. 1 to part 738 of the 

EAR), a license is required to all 

destinations, except Canada, for items 

described on the CCL under ECCNs 

0A521; 0A601 (except 0A601.y); 0A602 

(except 0A602.y); 0A606 (except 

0A606.b and .y); 0B521; 0B601; 0B602; 

0B606 (except 0B606.y); 0C521; 0C606 

(except 0C606.y); 0D521; 0D602; 0D606 

(except 0D606.y); 0E521; 0E601; 0E602; 

0E606 (except 0E606.y); 1A607 (except 

1A607.y); 1B607 (except 1B607.y); 

1B608 (except 1B608.y); 1C607; 1C608; 

1D607 (except 1D607.y); 1D608 (except 

1D608.y); 1E607 (except 1E607.y); 

1E608 (except 1E608.y); 6A002.a.1, a.2, 

a.3, .c, or .e; 6A003.b.3, and b.4.a; 

6A008.j.1; 6A998.b; 6D001 (only 

‘‘software’’ for the ‘‘development’’ or 

‘‘production’’ of items in 6A002.a.1, a.2, 

a.3, .c; 6A003.b.3 and .b.4; or 6A008.j.1); 

6D002 (only ‘‘software’’ for the ‘‘use’’ of 

items in 6A002.a.1, a.2, a.3, .c; 

6A003.b.3 and .b.4; or 6A008.j.1); 

6D003.c; 6D991 (only ‘‘software’’ for the 

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

of equipment classified under 6A002.e 

or 6A998.b); 6E001 (only ‘‘technology’’ 

for ‘‘development’’ of items in 

6A002.a.1, a.2, a.3 (except 

6A002.a.3.d.2.a and 6A002.a.3.e for lead 

selenide focal plane arrays), and .c or .e, 

6A003.b.3 and b.4, or 6A008.j.1); 6E002 

(only ‘‘technology’’ for ‘‘production’’ of 

items in 6A002.a.1, a.2, a.3, .c, or .e, 

6A003.b.3 or b.4, or 6A008.j.1); 6E991 

(only ‘‘technology’’ for the 

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

of equipment classified under 6A998.b); 

6D994; 7A994 (only QRS11–00100–100/ 

101 and QRS11–0050–443/569 

Micromachined Angular Rate Sensors); 

7D001 (only ‘‘software’’ for 

‘‘development’’ or ‘‘production’’ of 

items in 7A001, 7A002, or 7A003); 

7E001 (only ‘‘technology’’ for the 

‘‘development’’ of inertial navigation 

systems, inertial equipment, and 

specially designed components therefor 

for civil aircraft); 7E002 (only 

‘‘technology’’ for the ‘‘production’’ of 

inertial navigation systems, inertial 

equipment, and specially designed 

components therefor for civil aircraft); 

7E101 (only ‘‘technology’’ for the ‘‘use’’ 

of inertial navigation systems, inertial 

equipment, and specially designed 

components for civil aircraft); 8A609 

(except 8A609.y); 8A620 (except 

8A620.y); 8B609 (except 8B609.y); 

8B620 (except 8B620.y); 8C609 (except 

8C609.y); 8D609 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by 8A609.y, 

8B609.y, or 8C609.y); 8D620 (except 

software for the ‘‘development,’’ 

‘‘production,’’ operation, or 

maintenance of commodities controlled 

by 8A620.y or 8B620.y); 8E609 (except 

‘‘technology’’ for the ‘‘development,’’ 

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of commodities 

controlled by 8A609.y, 8B609.y, or 

8C609.y); 8E620 (except ‘‘technology’’ 

for the ‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

commodities controlled by 8A620.y or 

8B620.y); 9A610 (except 9A610.y); 

9A619 (except 9A619.y); 9B610 (except 

9B610.y); 9B619 (except 9B619.y); 


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9C610 (except 9C610.y); 9C619 (except 

9C619.y); 9D610 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, or overhaul of commodities 

controlled by 9A610.y, 9B610.y, or 

9C610.y); 9D619 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by 9A619.y, 

9B619.y, or 9C619.y); 9E610 (except 

‘‘technology’’ for the ‘‘development,’’ 

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of commodities 

controlled by ECCN 9A610.y, 9B610.y, 

or 9C610.y); and 9E619 (except 

‘‘technology’’ for the ‘‘development,’’ 

‘‘production’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of commodities 

controlled by ECCN 9A619.y, 9B619.y, 

or 9C619.y). 

* * * * * 

PART 774—[AMENDED] 

3. 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. 

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 12, 2011, 76 

FR 50661 (August 16, 2011). 

4. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ ECCN 

1B018 is amended in the List of Items 

Controlled by revising the ‘‘Related 

Controls’’ paragraph and by removing 

and reserving paragraph .a to read as 

follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

1B018 Equipment on the Wassenaar 

Arrangement Munitions List. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: See ECCN 1B608.a, .b, and 

.x for items that, immediately prior to 

[effective date of final rule], were classified 

under 1B018.a. 

Related Definitions: * * * 

Items: 

a. [RESERVED] 

b. * * * 

5. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a 

new ECCN 1B608 between ECCNs 

1B233 and 1B999 to read as follows: 

1B608 Test, Inspection, and Production 

‘‘Equipment’’ and Related Commodities 

‘‘Specially Designed’’ for the 

‘‘Development’’ or ‘‘Production’’ of 

Commodities Enumerated in ECCN 

1C608 or USML Category V. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry, except 

1B608.y.

NS Column 1 

RS applies to entire 

entry, except 

1B608.y.

RS Column 1 

MT applies to equipment ‘‘specially designed’’ for the 

‘‘production’’ of 

rocket propellants.

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

LVS: $1500 

GBS: N/A 

CIV: N/A 

STA: (1) Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2) of the EAR) 

may not be used for any item in 1B608. (2) 

Paragraph (c)(1) of License Exception STA 

(§ 740.20(c)(1)) may be used for items in 

1B608 without the need for a 

determination described in § 740.20(g). (3) 

STA is not available for ‘‘equipment’’ for 

the ‘‘production’’ of MT-controlled rocket 

propellants. 

List of Items Controlled 

Unit: End items in number; parts, 

component, accessories and attachments in 

$ value. 

Related Controls: Defense articles that are 

enumerated in USML Category V, and 

technical data (including software) directly 

related thereto, are subject to the ITAR. 

Related Definitions: N/A 

Items: 

a. ‘‘Equipment’’ not elsewhere specified in 

the CCL or the USML ‘‘specially designed’’ 

for the ‘‘production’’ of items controlled by 

ECCN 1C608 or USML Category V. 

Note: ECCN 1C608.a. includes: (1) 

Continuous nitrators; (2) dehydration 

presses; (3) cutting machines for the sizing of 

extruded propellants; (4) sweetie barrels 

(tumblers) 6 feet or more in diameter and 

having over 500 pounds product capacity; (5) 

convection current converters for the 

conversion of materials listed in USML 

Category V(c)(2); and (6) extrusion presses for 

the extrusion of small arms, cannon and 

rocket propellants. 

b. Complete installations not elsewhere 

specified in the CCL or the USML ‘‘specially 

designed’’ for the ‘‘production’’ of items 

controlled by ECCN 1C608 or USML Category 

V. 

c. Environmental test facilities ‘‘specially 

designed’’ for the certification, qualification, 

or testing of items controlled by ECCN 1C608 

or USML Category V. 

d. through w. [RESERVED] 

x. ‘‘Parts,’’ ‘‘components,’’ ‘‘accessories and 

attachments’’ that are ‘‘specially designed’’ 

for a commodity subject to control in this 

ECCN or a defense article in USML Category 

V and not elsewhere specified on the USML 

or the CCL. 

Note 1: Forgings, castings, and other 

unfinished products, such as extrusions and 

machined bodies, that have reached a stage 

in manufacturing where they are clearly 

identifiable by material composition, 

geometry, or function as commodities 

controlled by ECCN 1B608.x are controlled 

by ECCN 1B608.x. 

y. Specific test, inspection, and production 

‘‘equipment’’ ‘‘specially designed’’ for the 

‘‘production’’ or ‘‘development’’ of 

commodities controlled by this ECCN 1B608 

or a defense article in USML Category V, and 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories and 

attachments’’ ‘‘specially designed’’ therefor, 

as follows: 

y.1 through y. 98. [RESERVED] 

y.99. Commodities not identified on the 

CCL that (i) have been determined, in an 

applicable commodity jurisdiction 

determination issued by the U.S. Department 

of State, to be subject to the EAR and (ii) 

would otherwise be controlled elsewhere in 

ECCN 1B608. 

6. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ ECCN 

1C018 is amended to read as follows: 

1C018 Commercial Charges and Devices 

Containing Energetic Materials on the 

Wassenaar Arrangement Munitions List 

and Certain Chemicals. 

No items currently are in this ECCN. 

(1) See ECCN 1C608.b. through .m for items 

that, immediately prior to [effective date of 

final rule], were classified under 1C018.b 

through .m. (2) See ECCNs 1C011, 1C111, 

and 1C239 for additional controlled energetic 

materials, including chlorine trifluoride 

(ClF3), which is controlled under ECCN 

1C111.a.3.f. (3) See ECCN 1A008 for shaped 

charges, detonating cord, and cutters and 

severing tools. 

7. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ revise 

ECCN 1C111 to read as follows: 

1C111 Propellants and constituent 

chemicals for propellants, other than 

those specified in 1C011, as follows (see 

List of Items Controlled). 

License Requirements 

Reason for Control: MT, NP, AT 


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25942 Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Proposed Rules 

Control(s) Country chart 

MT applies to entire 

entry.

MT Column 1 

NP applies to 

1C111.a.3.f only.

NP Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

LVS: N/A 

GBS: N/A 

CIV: N/A 

List of Items Controlled 

Unit: Kilograms 

Related Controls: (1) See USML Category 

V(e)(7) for controls on HTPB (hydroxyl 

terminated polybutadiene) with a hydroxyl 

functionality equal to or greater than 2.2 

and less than or equal to 2.4, a hydroxyl 

value of less than 0.77 meq/g, and a 

viscosity at 30 °C of less than 47 poise 

(CAS # 69102–90–5). (2) See USML 

Category V(f)(3) for controls on ferrocene 

derivatives, including butacene. (3) See 

ECCN 1C608 for controls on oxidizers that 

are composed of fluorine and also other 

halogens, oxygen, or nitrogen, except for 

chlorine trifluoride, which is controlled 

under this ECCN 1C111.a.3.f. (4) See ECCN 

1C011.b for controls on boron and boron 

alloys. 

Related Definitions: Particle size is the mean 

particle diameter on a weight basis. 

Particle size must be determined through 

the use of best industrial practices and the 

controls may not be undermined by the 

addition of larger or smaller sized material 

to shift the mean diameter. 

Items: 

a. Propulsive substances: 

a.1. Aluminum powder as follows: 

a.1.a. Spherical aluminium powder not 

controlled by 1C111.a.1.b. with particles of 

uniform diameter of less than 200 

micrometer and an aluminum content of 97% 

by weight or more, if at least 10 percent of 

the total weight is made up of particles of 

less than 63 micrometer, according to ISO 

2591:1988 or national equivalents such as JIS 

Z8820. 

a.1.b. Aluminum powder with all of the 

following: 

a.1.b.1. Greater than 99% purity; 

a.1.b.2. Greater than 50% of the particles 

being spheroidal, or produced by a gas 

atomization process using an inert gas such 

as nitrogen; and 

a.1.b.3. Particle size less than 60 microns. 

Technical Note: A particle size of 63 

micrometer (ISO R–565) corresponds to 250 

mesh (Tyler) or 230 mesh (ASTM standard 

E–11). 

a.2. Metal fuels, other than that controlled 

by the U.S. Munitions List, in particle sizes 

of less than 60 × 10¥6 m (60 micrometers), 

whether spherical, atomized, spheroidal, 

flaked or ground, as follows: 

a.2.a. Consisting of 97% by weight or more 

of any of the following: 

a.2.a.1. Zirconium; 

a.2.a.2. Beryllium; 

a.2.a.3. Magnesium; or 

a.2.a.4. Alloys of the metals specified by 

a.2.a.1 to a.2.a.3 above. 

a.2.b. [RESERVED] 

Technical Note: The natural content of 

hafnium in the zirconium (typically 2% to 

7%) is counted with the zirconium. 

a.3. Oxidizer substances usable in liquid 

propellant rocket engines, as follows: 

a.3.a. Dinitrogen trioxide; 

a.3.b. Nitrogendioxide/dinitrogen 

tetroxide; 

a.3.c. Dinitrogen pentoxide; 

a.3.d. Mixed oxides of nitrogen (MON); 

a.3.e. Inhibited red fuming nitric acid 

(IRFNA); 

a.3.f. Chlorine trifluoride (ClF3). 

Technical Note: Mixed oxides of nitrogen 

(MON) are solutions of nitric oxide (NO) in 

dinitrogen tetroxide/nitrogen dioxide (N2O4/ 

NO2) that can be used in missile systems. 

There are a range of compositions that can be 

denoted as MONi or MONij, where i and j are 

integers representing the percentage of nitric 

oxide in the mixture (e.g., MON3 contains 

3% nitric oxide, MON25 25% nitric oxide. 

An upper limit is MON40, 40% by weight). 

b. Polymeric substances: 

b.1. Carboxy—terminated polybutadiene 

(including carboxyl—terminated 

polybutadiene) (CTPB); 

b.2. Hydroxy—terminated polybutadiene 

(including hydroxyl—terminated 

polybutadiene) (HTPB); 

b.3. Polybutadiene acrylic acid (PBAA); 

b.4. Polybutadiene acrylic acid 

acrylonitrile (PBAN); 

b.5. Polytetrahydrofuran polyethylene 

glycol (TPEG). 

Technical Note: Polytetrahydrofuran 

polyethylene glycol (TPEG) is a block 

copolymer of poly 1,4 Butanediol and 

polyethylene glycol (PEG). 

c. Other propellant energetic materials, 

additives, or agents: 

c.1. [RESERVED] 

c.2. Triethylene glycol dinitrate (TEGDN); 

c.3. 2 Nitrodiphenylamine (2–NDPA); 

c.4. Trimethylolethane trinitrate (TMETN); 

c.5. Diethylene glycol dinitrate (DEGDN). 

d. Hydrazine and derivatives as follows: 

d.1. Hydrazine (C.A.S. # 302–01–2) in 

concentrations of 70% or more; 

d.2. Monomethyl hydrazine (MMH) (C.A.S. 

# 60–34–4); 

d.3. Symmetrical dimethyl hydrazine 

(SDMH) (C.A.S. # 540–73–8); 

d.4. Unsymmetrical dimethyl hydrazine 

(UDMH) (C.A.S. # 57–14–7); 

d.5. Trimethylhydrazine (C.A.S. # 1741– 

01–1); 

d.6. Tetramethylhydrazine (C.A.S. # 6415– 

12–9); 

d.7. N,N diallylhydrazine; 

d.8. Allylhydrazine (C.A.S. # 7422–78–8); 

d.9. Ethylene dihydrazine; 

d.10. Monomethylhydrazine dinitrate; 

d.11. Unsymmetrical dimethylhydrazine 

nitrate; 

d.12. Dimethylhydrazinium azide; 

d.13. Hydrazinium azide (C.A.S. # 14546– 

44–2); 

d.14. Hydrazinium dinitrate; 

d.15. Diimido oxalic acid dihydrazine 

(C.A.S. # 3457–37–2); 

d.16. 2-hydroxyethylhydrazine nitrate 

(HEHN); 

d.17. Hydrazinium diperchlorate (C.A.S. 

#13812–39–0); 

d.18. Methylhydrazine nitrate (MHN); 

d.19. Diethylhydrazine nitrate (DEHN); 

d.20. 3,6-dihydrazino tetrazine nitrate 

(DHTN), also referred to as 1,4-dihydrazine 

nitrate. 

Supplement No. 1 to part 774 

[Amended] 

8. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ ECCN 

1C238 is removed. 

9. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a 

new ECCN 1C608 between ECCNs 

1C395 and 1C980 to read as follows: 

1C608 Energetic materials and related 

commodities. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

RS Column 1 

MT applies to 

1C608.m.

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

LVS: $1500 

GBS: N/A 

CIV: N/A 

STA: (1) Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2) of the EAR) 

may not be used for any item in 1C608. 

(2) Paragraph (c)(1) of License Exception 

STA (§ 740.20(c)(1)) may be used for items 

in 1C608 without the need for a 

determination described in § 740.20(g). 

List of Items Controlled 

Unit: End items in number; parts, 

component, accessories and attachments in 

$ value. 

Related Controls: (1) The EAR does not 

control devices or charges containing 

materials controlled by USML 

subparagraphs V(c)(6), V(h), or V(i). The 

USML controls devices containing such 

materials. (2) The USML in Categories III, 

IV, or V controls devices and charges in 

this entry if they contain materials 

controlled by Category V (other than 

slurries) and such materials can be easily 

extracted without destroying the device or 

charge. (3) See also explosives and other 

items enumerated in ECCNs 1A006, 1A007, 

1A008, 1C011, 1C111, 1C239, and 1C992. 

Related Definitions: For purposes of this 

entry, the term ‘‘controlled materials’’ 

means controlled energetic materials 

enumerated in ECCNs 1C011, 1C111, 

1C239, 1C608, or USML Category V. 


emcdonald on DSK29S0YB1PROD with PROPOSALS
Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Proposed Rules 25943 

Items: 

a. Single base, double base, and triple base 

propellants having nitrocellulose with 

nitrogen content greater than 12.6% in the 

form of either: 

a.1. Sheetstock or carpet rolls; or 

a.2. Grains with diameter greater than 0.10 

inches. 

Note: This entry does not control 

propellant grains used in shotgun shells, 

small arms cartridges, or rifle cartridges. 

Note: Sheetstock is propellant that has 

been manufactured in the form of a sheet 

suitable for further processing. A carpet roll 

is propellant that has been manufactured as 

a sheet, often cut to a desired width, and 

subsequently rolled up (like a carpet). 

Note: Single base is propellant which 

consists mostly of nitrocellulose. Double base 

propellants consist mostly of nitrocellulose 

and nitroglycerine. Triple base consists 

mostly of nitrocellulose, nitroglycerine, and 

nitroguanidine. Such propellants contain 

other materials, such as resins or stabilizers, 

that could include carbon, salts, burn rate 

modifiers, nitrodiphenylamine, wax, 

polyethylene glycol (PEG), polyglycol adipate 

(PGA). 

b. Shock tubes containing greater than 

0.064 kg per meter (300 grains per foot), but 

not more than 0.1 kg per meter (470 grains 

per foot) of controlled materials. 

c. Cartridge power devices containing 

greater than 0.70 kg, but not more than 1.0 

kg of controlled materials. 

d. Detonators (electric or nonelectric) and 

‘‘specially designed’’ assemblies therefor 

containing greater than 0.01 kg, but not more 

than 0.1 kg of controlled materials. 

e. Igniters not controlled by USML 

Categories III or IV that contain greater than 

0.01 kg, but not more than 0.1 kg of 

controlled materials. 

f. Oil well cartridges containing greater 

than 0.015 kg, but not more than 0.1 kg of 

controlled materials. 

g. Commercial cast or pressed boosters 

containing greater than 1.0 kg, but not more 

than 5.0 kg of controlled materials. 

h. Commercial prefabricated slurries and 

emulsions containing greater than 10 kg and 

less than or equal to thirty-five percent by 

weight of USML controlled materials. 

i. [RESERVED] 

j. Pyrotechnic devices ‘‘specially designed’’ 

for commercial purposes (e.g., theatrical 

stages, motion picture special effects, and 

fireworks displays), and containing greater 

than 3.0 kg, but not more than 5.0 kg of 

controlled materials. 

k. Other commercial explosive devices or 

charges ‘‘specially designed’’ for commercial 

applications, not controlled by 1C608.c 

through .g above, containing greater than 1.0 

kg, but not more than 5.0 kg of controlled 

materials. 

l. Propyleneimine (2 methylaziridine) 

(C.A.S. # 75–55–8). 

m. Any oxidizer or mixture thereof that is 

a compound composed of fluorine and one 

or more of the following: Other halogens, 

oxygen, or nitrogen. 

Note 1 to 1C111.m: Nitrogen trifluoride 

(NF3) in a gaseous state is controlled by 

ECCN 1C992 and not by 1C608. 

Note 2 to 1C111.m: Chlorine trifluoride 

(ClF3) is controlled under ECCN 1C111.a.3.f 

and not under ECCN 1C608. 

Note 3 to 1C111.m: Oxygen difluoride 

(OF2) is controlled under USML Category 

V.d.10 (see 22 CFR 121.1) and not under 

ECCN 1C608. 

Note to 1C111.l and .m: If a chemical in 

paragraphs .l or .m of 1C608 is incorporated 

into a commercial charge or device described 

in paragraphs .c through .k of ECCN 1C608 

or in 1C992, the classification of the 

commercial charge or device applies to the 

item. 

n. Any explosive, propellants, oxidizers, 

pyrotechnics, fuels, binders, or additives, 

‘‘specially designed’’ for military application 

not listed elsewhere in USML Category V or 

the CCL. 

o. through y. [RESERVED] 

10. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ ECCN 

1D018 is amended by revising the ECCN 

heading and by revising the ‘‘Related 

Controls’’ paragraph in the List of Items 

Controlled to read as follows: 

1D018 ‘‘Software’’ specially designed or 

modified for the ‘‘development,’’ 

‘‘production,’’ or ‘‘use’’ of items 

controlled by 1B018.b. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) See § 746.8(b)(1) for 

additional BIS licensing requirements for 

Rwanda concerning this entry. (2) See 

ECCN 1D608 for ‘‘software’’ for items 

classified under ECCN 1B608 that, 

immediately prior to [Insert effective date 

of final rule], were classified under 

1B018.a. 

Related Definitions: * * * 

Items: * * * 

11. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a 

new ECCN 1D608 between ECCNs 

1D390 and 1D993 to read as follows: 

1D608 ‘‘Software’’ ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by 1B608 or 

1C608. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry, except 

1D608.y.

NS Column 1 

RS applies to entire 

entry, except 

1D608.y.

RS Column 1 

Control(s) Country chart 

MT applies to software ‘‘specially designed’’ for 

1C608.m.

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

CIV: N/A 

TSR: N/A 

STA: Paragraph (c)(2) of License Exception 

STA (§ 740.20(c)(2) of the EAR) may not be 

used for any item in 1D608. 

List of Items Controlled 

Unit: N/A 

Related Controls: (1) Software directly related 

to articles enumerated in USML Categories 

III, IV or V are subject to the controls of 

those USML Categories, respectively. (2) 

See ECCN 0A919 for foreign-made 

‘‘military commodities’’ that incorporate 

more than 10% U.S.-origin ‘‘600 series’’ 

items. 

Related Definitions: N/A 

Items: 

a. ‘‘Software’’ ‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ operation, or 

maintenance of commodities controlled by 

ECCN 1B608 or 1C608. 

b. through x. [RESERVED] 

y. Specific ‘‘software’’ ‘‘specially designed’’ 

for the ‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of commodities 

controlled by ECCN 1B608.y, as follows: 

y.1 through y.98. [RESERVED] 

y.99. ‘‘Software’’ not identified on the CCL 

that (i) has been determined, in an applicable 

commodity jurisdiction determination issued 

by the U.S. Department of State, to be subject 

to the EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 1D608. 

12. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ ECCN 

1E001 is amended by revising the ECCN 

heading, by revising the NP controls 

paragraph in the License Requirements 

section, and by revising the ‘‘Related 

Controls’’ paragraph in the List of Items 

Controlled to read as follows: 

1E001 ‘‘Technology’’ According to the 

General Technology Note for the 

‘‘Development’’ or ‘‘Production’’ of 

Items Controlled by 1A001.b, 1A001.c, 

1A002, 1A003, 1A004, 1A005, 1A006.b, 

1A007, 1A008, 1A101, 1B (except 1B608 

or 1B999), or 1C (except 1C355, 1C608, 

1C980 to 1C984, 1C988, 1C990, 1C991, 

1C995 to 1C999). 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 


emcdonald on DSK29S0YB1PROD with PROPOSALS
25944 Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Proposed Rules 

Control(s) Country chart 

* * * * * 

NP applies to ‘‘technology’’ for items 

controlled by 

1A002, 1A007, 

1B001, 1B101, 

1B201, 1B225 to 

1B233, 1C002, 

1C010, 1C111, 

1C116, 1C202, 

1C210, 1C216, 

1C225 to 1C237, 

1C239, or 1C240 

for NP reasons.

NP Column 1 

* * * * * 

License Requirements Note: * * * 

License Exceptions 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) Also see ECCNs 1E101, 

1E201, and 1E202. (2) See ECCN 1E608 for 

‘‘technology’’ for items classified under 

ECCN 1B608 or 1C608 that, immediately 

prior to [effective date of final rule], were 

classified under 1B018.a or 1C018.b 

through .m (note that ECCN 1E001 controls 

‘‘development’’ and ‘‘production’’ 

‘‘technology’’ for chlorine trifluoride 

controlled by ECCN 1C111.a.3.f—see ECCN 

1E101 for controls on ‘‘use’’ ‘‘technology’’ 

for chlorine trifluoride). (3) See ECCN 

1E002.g for control libraries (parametric 

technical databases) specially designed or 

modified to enable equipment to perform 

the functions of equipment controlled 

under 1A004.c (Nuclear, biological and 

chemical (NBC) detection systems) or 

1A004.d (Equipment for detecting or 

identifying explosives residues). (4) 

‘‘Technology’’ for lithium isotope 

separation (see related ECCN 1B233) and 

‘‘technology’’ for items described in ECCN 

1C012 are subject to the export licensing 

authority of the Nuclear Regulatory 

Commission (see 10 CFR part 110). (5) 

‘‘Technology’’ for items described in ECCN 

1A102 is subject to the export licensing 

authority of the U.S. Department of State, 

Directorate of Defense Trade Controls (see 

22 CFR part 121). 

Related Definitions: * * * 

Items: * * * 

13. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ ECCN 

1E101 is amended by revising the ECCN 

heading and by revising the License 

Requirements section to read as follows: 

1E101 ‘‘Technology’’, in accordance with 

the General Technology Note, for the 

‘‘use’’ of commodities and software 

controlled by 1A101, 1A102, 1B001, 

1B101, 1B102, 1B115 to 1B119, 1C001, 

1C007, 1C011, 1C101, 1C107, 1C111, 

1C116, 1C117, 1C118, 1D001, 1D101, or 

1D103. 

License Requirements 

Reason for Control: MT, NP, AT 

Control(s) Country chart 

MT applies to entire 

entry.

MT Column 1 

NP applies to ‘‘technology’’ for items 

controlled by 

1B001, 1B101, 

1C111, 1C116, 

1D001, or 1D101 

for NP reasons.

NP Column 1 

AT applies to entire 

entry.

AT Column 1 

* * * * * 

14. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ ECCN 

1E201 is amended by revising the ECCN 

heading to read as follows: 

1E201 ‘‘Technology’’ according to the 

General Technology Note for the ‘‘use’’ 

of items controlled by 1A002, 1A007, 

1A202, 1A225 to 1A227, 1B201, 1B225 

to 1B232, 1B233.b, 1C002.b.3 and b.4, 

1C010.a, 1C010.b, 1C010.e.1, 1C202, 

1C210, 1C216, 1C225 to 1C237, 1C239, 

1C240 or 1D201. 

* * * * * 

15. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a 

new ECCN 1E608 between ECCNs 

1E355 and 1E994 to read as follows: 

1E608 ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul or refurbishing of 

equipment controlled in 1B608 or 

materials controlled by 1C608. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry, except 

1E608.y.

NS Column 1 

RS applies to entire 

entry, except 

1E608.y.

RS Column 1 

MT applies to technology ‘‘required’’ 

for 1C608.m.

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

CIV: N/A 

TSR: N/A 

STA: Paragraph (c)(2) of License Exception 

STA (§ 740.20(c)(2)) of the EAR may not be 

used for any item in 1E608. 

List of Items Controlled 

Unit: $ value 

Related Controls: (1) Technical data directly 

related to articles enumerated in USML 

Categories III, IV, or V are subject to the 

controls of those USML Categories, 

respectively. (2) ‘‘Technology’’ for chlorine 

trifluoride is controlled under ECCNs 

1E001 (‘‘development’’ and ‘‘production’’) 

and 1E101 (‘‘use’’). 

Related Definitions: N/A 

Items: 

a. ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ operation, 

installation, maintenance, repair, overhaul, 

or refurbishing of material controlled by 

ECCN 1B608 or 1C608. 

b. ‘‘Technology’’ for the ‘‘development’’ or 

‘‘production’’ of nitrocellulose with nitrogen 

content over 12.6% and at rates greater than 

2000 pounds per hour. 

c. ‘‘Technology’’ for the ‘‘development’’ or 

‘‘production’’ of nitrate esters (e.g., 

nitroglycerine) at rates greater than 2000 

pounds per hour. 

d. through x. [RESERVED] 

y. Specific ‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ operation, 

installation, maintenance, repair, overhaul or 

refurbishing of commodities controlled by 

ECCN 1B608.y or ‘‘software’’ controlled by 

ECCN 1D608.y, as follows: 

y.1 through y.98. [RESERVED] 

y.99. ‘‘Technology’’ not identified on the 

CCL that (i) has been determined, in an 

applicable commodity jurisdiction 

determination issued by the U.S. Department 

of State, to be subject to the EAR and (ii) 

would otherwise be controlled elsewhere in 

ECCN 1E608. 

Dated: April 13, 2012. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2012–10456 Filed 5–1–12; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF STATE 

22 CFR Part 121 

RIN 1400–AD02 

[Public Notice 7861] 

Amendment to the International Traffic 

in Arms Regulations: Revision of U.S. 

Munitions List Category V. 

AGENCY: Department of State. 

ACTION: Proposed rule. 

SUMMARY: As part of the President’s 

Export Control Reform effort, the 

Department of State proposes to amend 

the International Traffic in Arms 

Regulations (ITAR) to revise Category V 

(explosives and energetic materials, 

propellants, incendiary agents, and their 

constituents) of the U.S. Munitions List 

(USML) to describe more precisely the 

articles warranting control on the 

USML. 


emcdonald on DSK29S0YB1PROD with PROPOSALS