[Federal Register Volume 69, Number 214 (Friday, November 5, 2004)]
[Rules and Regulations]
[Pages 64490-64494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24680]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 774

Docket No. 041018284-4284-01

RIN 0694-AD04


Microprocessor Technology Eligible for Export Under License 
Exception

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is expanding the 
availability of License Exception CIV for certain deemed exports of 
microprocessor technology on the Commerce Control List (CCL) of the 
Export Administration Regulations (EAR) under Export Classification 
Control Numbers (ECCN) 3E001 and 3E002. These ECCNs control technology 
that can be used for the development and production of microprocessors. 
This final rule partially implements a proposed rule published on 
October 24, 2003. The proposed rule included the export and reexport of 
general purpose microprocessor technology under License Exception CIV, 
while this final rule limits License Exception CIV eligibility to 
deemed exports for certain microprocessor technology. BIS has 
determined that further liberalization of controls on exports of 
microprocessor technology must await agreement in the Wassenaar 
Arrangement. This rule also establishes a ``Foreign National Review 
(FNR)'' requirement under License Exception CIV for deemed exports of 
microprocessor technology to certain eligible foreign nationals.

DATES: This rule is effective on November 5, 2004.

FOR FURTHER INFORMATION CONTACT: Sharron Cook, Senior Export Policy 
Analyst, Office of Exporter Services, Regulatory Policy Division, 
Bureau of Industry and Security, Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

    On October 24, 2003, BIS published a proposed rule with request for 
comments (68 FR 60891) from industry to assist BIS in evaluating 
microprocessor technology controlled under ECCN 3E002, as well as 
computer technology and software controls. BIS received eleven comments 
in response to this request. While the proposed rule covered both 
microprocessor technology and computer technology and software, BIS has 
decided to address computer technology and software and microprocessor 
technology in two different rules. This final rule implements the 
license exception expansion for microprocessor technology. The 
corresponding rule on license exception eligibility for computer 
technology is published elsewhere in this issue of the Federal 
Register.

Current Controls on Microprocessor Technology

    Technology for the development and production of microprocessors 
that have a CTP exceeding 530 MTOPS and an arithmetic logic unit with 
an access width of 32 bits or more are controlled by ECCN 3E002, 
pursuant to agreement by members of the Wassenaar Arrangement (WA). 
License Exception TSR is available for the export and reexport of 
technology for microprocessors of unlimited CTP to all Country Group B 
countries (see Supplement No. 1 to part 740 of the EAR), if all the 
criteria of License Exception TSR are met (see section 740.6 of the EAR 
for License Exception TSR requirements).
    In addition, technology for the development or production of 
microprocessors that have more than one data or instruction bus or 
serial communication port that provides a direct external 
interconnection between parallel ``microprocessor microcircuits'' with 
a transfer rate exceeding 150 Megabytes per second are controlled by 
ECCN 3E001, because ``microprocessor microcircuits'', ``micro-computer 
microcircuits'' and microcontroller microcircuits having this 
characteristic are controlled under ECCN 3A001.a.3.c. License Exception 
TSR is available for the export and reexport of technology for 
microprocessors of unlimited transfer rate to all Country Group B 
countries (see Supplement No. 1 to part 740 of the EAR), if all the 
criteria of License Exception TSR are met (see section 740.6 of the EAR 
for License Exception TSR requirements).

Deemed Export Revisions

    While the original Federal Register notice proposed expanding 
License Exception availability for actual exports and reexports of 
microprocessor technology, this final rule expands License Exception 
CIV availability for deemed exports only. Generally, Wassenaar 
countries do not have in-country transfer controls (deemed export 
controls), with the exception of classified material.
    Microprocessor technology is listed by the Wassenaar Arrangement on 
the Basic List (530 MTOPS). Accordingly adjustments in control limits 
for actual exports and reexport of microprocessor technology should be 
implemented based on agreement with the United States' Wassenaar 
partners. Therefore, the United States may discuss raising the level of 
controls for actual export and reexport of microprocessor technology in 
the Wassenaar Arrangement.
    The EAR defines ``export'' to include, among other things, the 
release of technology or source code subject to the EAR to a foreign 
national within the United States. Such release is ``deemed'' to be an 
export to the home country or countries of the foreign national. The 
deemed export rule does not apply to persons lawfully admitted for 
permanent residence in the United States and does not apply to persons 
who are protected individuals under the Immigration and Naturalization 
Act (8 U.S.C. 1324b(a)(3)). Deemed export license applications for 
foreign nationals with dual citizenship should be based on the most 
recently obtained country citizenship. Applications for foreign 
nationals with temporary or permanent residence status of a third 
country (i.e., non-U.S. and a temporary or permanent residence status 
other than a foreign national's country of origin) should be based on 
the foreign national's country of citizenship.
    Because the United States is one of the only WA country members to 
implement deemed export controls, U.S. industry has been required to 
obtain license authorization for these deemed exports when other WA 
member countries have not imposed such controls on their industries. 
Expanding the availability of a License Exception for general purpose 
microprocessor technology provides relief from licensing burdens for 
U.S. industry and levels the playing field in global competition. BIS 
has found that the expansion of license exception availability under 
the technology parameters set forth below will not have

[[Page 64491]]

an adverse impact on the U.S. national security.

Expansion of License Exception CIV for Certain Deemed Exports of 
Microprocessor Technology Controlled Under ECCNs 3E001 and 3E002

    This rule authorizes under License Exception CIV deemed exports of 
technology controlled under ECCN 3E001 for the development and 
production of microprocessors controlled under ECCN 3A001.a.3.c.with a 
CTP less than or equal to 40,000 MTOPS (regardless of word length or 
access width) to Country Group D:1 nationals. License Exception CIV 
does not apply to ECCN 3E001 technology for ECCN 3A001.a.3.c required 
for the development or production of other items controlled under ECCNs 
beginning with 3A, 3B, or 3C, or to ECCN 3E001 technology also 
controlled under ECCN 3E003.
    In addition, this rule authorizes under License Exception CIV 
deemed exports of technology controlled under ECCN 3E002 for the 
development and production of microprocessors having a CTP less than or 
equal to 40,000 MTOPS (regardless of word length or access width) to 
Country Group D:1 nationals. License Exception CIV does not apply to 
ECCN 3E002 technology also required for the development or production 
of items controlled under ECCNs beginning with 3A, 3B, or 3C, or to 
ECCN 3E002 technology also controlled under ECCN 3E003.

Requirements for Use of License Exception CIV for Deemed Exports of 
Eligible Microprocessor Technology

    License Exception CIV may not be used for military end-users or to 
known military uses. In addition to conventional military activities, 
military uses include any proliferation activities described in part 
744 of the EAR. Deemed exports under License Exception CIV are not 
authorized to foreign nationals in an expired visa status. It is the 
responsibility of the exporter to ensure that, in the case of deemed 
exports, the foreign national maintains a valid U.S. visa, if required 
to hold a visa from the United States.
    This rule makes License Exception CIV available for deemed exports 
of eligible microprocessor technology to any Country Group D:1 foreign 
national once a Foreign National Review (FNR) request has been 
submitted to BIS and confirmation of eligibility has been obtained from 
the System for Tracking Export License Applications (STELA) or the 
Simplified Network Application Procedure (SNAP). FNR requests must be 
submitted using Form BIS-748P (Multipurpose Application), or its 
electronic equivalent, and must include information about the foreign 
national who is to receive the microprocessor technology. The 
information required for the FNR request is set forth in paragraphs (s) 
and (t) of Supplement No 2 to part 748 of the EAR. BIS will refer the 
FNR request for interagency review within nine business days or, if 
necessary, return the FNR request without action to the applicant, 
e.g., if more information is necessary. The agencies have 30 days in 
which to return a recommendation to BIS.
    Exporters who have current licenses for deemed exports of such 
technology to Country Group D:1 foreign nationals that become eligible 
for License Exception CIV are no longer bound by conditions on their 
licenses, as provided under section 750.7 of the EAR. Termination of 
license conditions does not relieve an exporter of its responsibility 
for violations that occurred prior to the availability of the License 
Exception.
    Although most licenses for microprocessor technology have been 
issued to companies who employ Country Group D:1 foreign nationals in 
their U.S. facilities and who hold work visas issued by the U.S. 
Government, the availability of License Exception CIV for deemed 
exports is not confined to employer releases of technology to 
employees. It is also available for deemed exports of technology to 
Country Group D:1 foreign national visitors and customers, provided 
that their backgrounds have been checked under the procedures set forth 
in License Exception CIV.
    Although the Export Administration Act expired on August 20, 2001, 
Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp., p. 783 
(2002)), as extended by the Notice of August 6, 2004, 69 FR 48763 
(August 10, 2004) continues the Regulations in effect under the 
International Emergency Economic Powers Act.

Comments

    The comments that were received by BIS may be found at http://efoia.bis.doc.gov/pubcomm/Computer%20Tech%20and%20Software/Final.pdf. 
Set forth below are the questions that were posed to industry in the 
proposed rule and a summary of the comments BIS received and, where 
applicable, BIS's response to those comments.
1. What impact would the proposed revision of computer technology and 
software controls have on your company?
    Comments in response to this question are addressed in the final 
rule for computer technology export controls.
2. Is there another proposal regarding computer technology and 
software, and microprocessor technology controls that you would like 
Commerce to consider? If so, describe your proposal in detail and 
please give technical and other justifications for your proposal.
    BIS received many comments from industry suggesting that BIS 
eliminate MTOPS controls for microprocessor technology and instead use 
end-user and end-use based controls to harmonize with the export 
controls of microprocessor chips implemented by BIS.
    Technology and software for the development and production of 
microprocessor chips is listed on the Sensitive List (Annex 1) of the 
Wassenaar Arrangement, i.e., 33 member countries have agreed that this 
technology must not only be on the List of Dual-use Good and 
Technologies, but must be carefully monitored because of the usefulness 
of this technology and software in producing and developing 
conventional arms. The controlling parameters that have been approved 
by the Wassenaar member countries are Composite Theoretical Performance 
(CTP) in Millions of Operations per Second (MTOPS), composition 
material (compound semiconductor), clock frequency in MHz, and number 
of data or instruction bus or serial communication ports and related 
data transfer rate in Mbyte/s. On the other hand, the CTP parameter has 
been removed from the Wassenaar List for microprocessor chips, which is 
why BIS decided to implement an end-user/use control for microprocessor 
chips, i.e., a license is required only when sent to military or 
weapons of mass destruction (proliferation) end-uses or end-users. 
Therefore, the microprocessor technology and hardware are controlled in 
two different ways, and BIS will not change the control parameters for 
microprocessor technology absent a change to the Wassenaar List.
    Others suggested that BIS implement a license exception for 
microprocessor technology along the same lines as License Exception 
ENC: i.e., to (a) permit U.S. information technology (IT) companies to 
transfer controlled knowledge to their foreign subsidiaries; and (b) 
permit U.S. IT companies to

[[Page 64492]]

transfer controlled knowledge to their lawfully admitted foreign 
national employees working within the United States. In return, 
companies would commit to implement fundamental safeguards on the 
internal movement of technology.
    This technology is already eligible for export or reexport under 
License Exception TSR to countries listed in Country Group B. However, 
because of the usefulness of this technology in producing and 
developing conventional arms and the sensitivity placed on it by the 
Wassenaar Arrangement, BIS has decided that it would not be prudent to 
make such technology eligible for export or reexport under a license 
exception to end-users located in countries that the United States has 
determined pose a national security concern, i.e., Country Group D:1 
countries. Nonetheless, because other Wassenaar member countries do not 
require licenses for deemed exports of this technology, this rule will 
make certain microprocessor technology eligible for License Exception 
CIV after the foreign national has been approved via a Foreign National 
Review by BIS.
    While BIS has decided to only allow deemed exports of this 
technology under license exception at this time, BIS recognizes that 
certain licensing requirements for microprocessor technology may be 
limiting. Therefore, BIS has discussed with other agencies a 
possibility of allowing the export, reexport, or transfer of this 
technology through a ``Special Intra-company License (SIL).'' The goal 
is to create a license that will ease the flow of certain authorized 
technology and source code within the global corporate structure, based 
on an approved Technology Control Plan, i.e., an internal control 
program.
3. What is the highest CTP level for microprocessors currently being 
manufactured by your company?
    Many respondents either said that this information was proprietary 
or that they had already submitted this information to BIS. Some 
respondents provided CTPs in the range of 2,700-24,170 MTOPS.
4. What should be the CTP MTOPS limitation for microprocessor 
technology under the proposed License Exception CIV? Please provide 
detailed technical and other justification for your proposal.
    Most respondents said License Exception CIV should have a CTP with 
unlimited MTOPS. This rule makes deemed exports of microprocessor 
technology at a certain MTOPs level eligible for License Exception CIV. 
While BIS believes that deemed exports are more easily enforced, 
because they take place in the United States, BIS is not naive about 
efforts of other countries to obtain this integrated circuit 
technology, see 69 F.R. 26360 5/12/04 regarding Suntek Microwave, Inc. 
Therefore, BIS has set a limit on the MTOPS level eligible under 
License Exception CIV.
    In addition, at least two respondents requested that if we do not 
eliminate the CTP parameter altogether, then the CTP should be set at 
twice the MTOPS of what is in current production. They estimated that 
this would result in a CTP threshold of 50,000 MTOPS. This final rule 
adopts the 40,000 MTOPS threshold for eligibility of deemed exports 
under License Exception CIV, because the projected future trends of 
technology thresholds, which were provided by industry, did not justify 
adopting a higher MTOPS level at this time.
    Respondents said in support of the proposed rule that the export 
control level for microprocessor technology should match that of 
microprocessor hardware. One of the controlling parameters for 
microprocessor chips, CTP, was removed from the Wassenaar List in 2003, 
which is why BIS decided to implement an end-user/use control for 
microprocessor chips, i.e., a license is required only when sent to 
military or weapons of mass destruction (proliferation) end-uses or 
end-users. On the other hand, technology and software for the 
development and production of microprocessor chips is listed on the 
Sensitive List (Annex 1) of the Wassenaar Arrangement, i.e., 33 member 
countries have agreed that this technology must not only be on the List 
of Dual-use Good and Technologies, but must be carefully monitored 
because of the usefulness of this technology and software in producing 
and developing conventional arms. The controlling parameter for 
microprocessor technology that has been approved by the Wassenaar 
member countries under ECCN 3E002 is 530 MTOPS. Therefore, BIS, in 
keeping with its agreements to the Wassenaar Arrangement, will not be 
eliminating the CTP parameter for technology to match the no longer 
existent CTP parameter for microprocessor hardware.
    A few respondents claimed that microprocessor technology controlled 
under the EAR is already available abroad, because microprocessors and 
like commodities (graphics chips, IDE controllers, and network routers) 
``require a broad set of design elements'' (Arithmetic logic unit 
(ALU), memory, clock frequency, and control unit). One respondent 
wrote, ``All of the elements are present and required in all of the 
technologies and each requires application of knowledge in each or all 
of the elements. For example, a current generation graphics processor 
chip contains ALU's capable of 100 Gf of 32 Bit FP performance. This 
level of performance would be approximately 50K CTP if the graphics 
chip were to be subjected to CTP analysis. Export controls for all of 
the example products, except for the microprocessor, are limited to 
anti-terrorism (AT) controls. There are no multi-national controls on 
those other products. Thus, countries of concern in Computer Tier 3 
Country Group can easily obtain the needed component technology and 
then simply re-package it as a microprocessor.''
    If this were feasible and simple to do, then countries around the 
world would be producing microprocessor chips and not buying U.S. 
microprocessors. However, we have found that this is not the case, and 
countries around the world greatly seek not only U.S. manufactured 
microprocessors, but the technology to produce and develop them. In 
addition, gathering bits and pieces of technology from different 
sources, while not easy in itself, does not provide enough 
comprehensive knowledge to produce a high quality microprocessor chip.
5. How do other countries license the transfer of computer technology 
and software, and microprocessor technology? Have there been instances 
where your company has been placed at a competitive disadvantage based 
on current U.S. license requirements?
    The majority of respondents stated that they did not have access to 
specific procedures or regulations of other countries' export policies 
with regard to computer technology and software, and microprocessor 
technology. Some commented that the technology was widely available 
from non-U.S. sources and that the majority of other countries impose 
minimal export restrictions on this type of technology.
6. What are your predictions for the CTP level of microprocessors that 
will be in production 3 and 5 years from now? On what basis did you 
make your predictions?
    Some respondents said they had already provided such information to 
BIS. Some respondents provided the requested predictions, based on 
Moore's Law and historic CTP information, as follows:

3 year predictions: 160,000 MTOPS, 250,000 MTOPS, and 400,000 MTOPS

[[Page 64493]]

5 year predictions: 600,000 MTOPS and 640,000 MTOPS
7 year prediction: 1,000,000 MTOPS

7. What percentage of your research and development is accomplished: 
(1) Outside of the United States; and (2) with the assistance of 
foreign nationals within the United States?
    Some respondents said they had already provided such information to 
BIS. None of the respondents addressed this specifically, but one 
respondent noted that in the physical sciences and engineering, nearly 
50 percent of all Masters and PhD degrees awarded by U.S. schools are 
earned by foreign nationals.
8. Is there an alternative method or parameter for controlling exports 
of computers and microprocessors and the technology and software 
therefore that industry believes would be more in-line with the way 
industry produces, develops, or measures these items?
    Many of the respondents pointed out that performance-based controls 
are ``unsuited'' for general purpose and rapidly-advancing technologies 
such as semiconductors and computers. Many respondents would like to 
see end-use and end-user based controls. However, it has been 
determined by Wassenaar Arrangement members that technology and 
software for the development and production of microprocessors and 
computers warrant extra care and have placed such technology and 
software on the Wassenaar Sensitive List (Annex 1). These technology 
and software controls are based on their performance capabilities, and 
at this time the only metric that the regime members have agreed upon 
is CTP. In keeping with the Wassenaar Arrangement agreements, BIS will 
not adopt a unilateral end-use/user based control for microprocessor 
technology.
    In addition to the above responses to the questions that were 
included in the proposed rule, BIS received some recommendations about 
ECCN 3A001.a.3.c, data transfer rate, another parameter that controls 
microprocessors. Some respondents recommended that BIS submit a 
proposal to Wassenaar to have this parameter removed, because it is 
outdated. BIS has in the past submitted proposals to Wassenaar to 
remove this parameter, but has not been successful in gaining unanimous 
agreement. BIS also received comments from industry explaining that 
microprocessor technology is also controlled under ECCN 3E001, because 
of the ECCN 3A001.a.3.c controls. Industry advised that this effort to 
expand CIV under ECCN 3E002 would be incomplete without a similar 
expansion of CIV under ECCN 3E001. BIS agrees with industry's 
assessment of ECCN 3E001, as it controls interconnect technology for 
microprocessors under ECCN 3A001.a.3.c. Therefore, this final rule 
adopts this recommendation by making deemed exports of certain 
microprocessor technology controlled under ECCNs 3E001 and 3E002 
eligible for License Exception CIV.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of E.O. 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with a collection of information, subject to the 
requirements of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) 
(PRA), unless that collection of information displays a currently valid 
Office of Management and Budget (OMB) ``Control Number.'' This rule 
contains a collection of information subject to the requirements of the 
PRA. This collection has been approved by OMB under Control Number 
0694-0088 (Multi-Purpose Application), which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. Send 
comments regarding this burden estimate or any other aspect of this 
collection of information, including suggestions for reducing the 
burden, to David Rostker, Office of Management and Budget (OMB), by e-
mail to <a href="/cdn-cgi/l/email-protection#074366716e6358556874736c627547686a652962687729606871"><span class="__cf_email__" data-cfemail="773316011e1328251804031c120537181a155912180759101801">[email protected]</span></a>, or by fax to (202) 395-7285; and to 
the Regulatory Policy Division, Bureau of Industry and Security, 
Department of Commerce, PO Box 273, Washington, DC 20044.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the UnitedStates (5 U.S.C. 553(a)(1)). Further, no other 
law requires that a notice of proposed rulemaking and an opportunity 
for public comment be given for this final rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule under the Administrative Procedure 
Act or by any other law, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Therefore, 
this regulation is issued in final form. Although there is no formal 
comment period, public comments on this regulation are welcome on a 
continuing basis. Comments should be submitted to Sharron Cook, Office 
of Exporter Services, Bureau of Industry and Security, Department of 
Commerce, PO Box 273, Washington, DC 20044.

List of Subjects

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.


0
Accordingly, parts 740 and 774 of the Export Administration Regulations 
(15 CFR parts 730-799) are amended as follows:

PART 740--[AMENDED]

0
1. The authority citation for part 740 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Pub. L. 106-387; 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 6, 2004, 69 FR 48763 (August 10, 2004).


0
2. Section 740.5 is revised to read as follows:


Sec.  740.5  Civil End-users (CIV).

    (a) Scope. License Exception CIV authorizes exports and reexports 
of items on the Commerce Control List (CCL) (Supplement No. 1 to part 
774 of the EAR) that have a license requirement to the ultimate 
destination pursuant to the Commerce Country Chart (Supplement No. 1 to 
part 738 of the EAR) for NS reasons only; and identified by ``CIV--
Yes'' in the License Exception section of the Export Control 
Classification Number (ECCN), provided the items are destined to civil 
end-users for civil end-uses in Country Group D:1, except North Korea 
(Supplement No. 1 to part 740 of this part).
    (b) Restrictions. (1) Restricted end-users and end-uses. You may 
not use CIV if you ``know'' the item will be or is intended to be 
exported, reexported, or transferred within country to military uses or 
military end-users. Such exports, reexports, and transfers will 
continue to require a license. In addition to conventional military 
activities, military uses include any proliferation activities 
described and prohibited by part 744 of the EAR.
    (2) Visa Status. Deemed exports under License Exception CIV are not

[[Page 64494]]

authorized to foreign nationals in an expired visa status. It is the 
responsibility of the exporter to ensure that, in the case of deemed 
exports, the foreign national maintains a valid U.S. visa, if required 
to hold a visa from the United States.
    (c) Reporting Requirement. See Sec.  743.1 of the EAR for reporting 
requirements for exports of certain items under this License Exception.
    (d) Foreign National Review (FNR) requirement for deemed exports. 
(1) Submission requirement. Prior to disclosing eligible technology to 
a foreign national under this License Exception, you must submit a 
Foreign National Review (FNR) request to BIS, as required under Sec.  
748.8(s) of the EAR. Your FNR request must include information about 
the foreign national required under Sec.  748.8(t) of the EAR and set 
forth in Supplement No. 2 of part 748 of the EAR.
    (2) Confirmation of eligibility. You may not use License Exception 
CIV until you have obtained confirmation of eligibility by calling the 
System for Tracking Export License Applications (STELA), see Sec.  
750.5 for how to use STELA, or electronically from the Simplified 
Network Application Procedure (SNAP), see http://www.bis.doc.gov/SNAP/index.htm for more information about SNAP.
    (3) Action by BIS. Within nine business days of the registration of 
the FNR request, BIS will refer the FNR request electronically, along 
with all necessary documentation for interagency review, or if 
necessary return the FNR request without action (e.g., if the 
information provided is incomplete). Processing time starts at the 
point at which the notification is registered into BIS's electronic 
system.
    (4) Review by other departments or agencies. The Departments of 
Defense, State, Energy, and other agencies, as appropriate, may review 
the FNR request. Within 30 calendar days of receipt of the BIS 
referral, the reviewing agency will provide BIS with a recommendation 
either to approve or deny the FNR request. A reviewing agency that 
fails to provide a recommendation within 30 days shall be deemed to 
have no objection to the final decision of BIS.
    (5) Action on the FNR Request. After the interagency review period, 
BIS will promptly notify the applicant regarding the FNR request, i.e., 
whether the FNR request is approved, denied, or more time is needed to 
consider the request.

PART 774--[AMENDED]

0
3. The authority citation for 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); 18 U.S.C. 2510 et seq.; 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; 46 U.S.C. 
app. 466c; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec. 
221, Pub. L. 107-56; 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 6, 2004, 69 FR 48763 (August 10, 2004).

0
4. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3--Electronics, Export Control Classification Number (ECCN) 
3E001 is amended by revising the ``CIV'' paragraph in the License 
Exceptions section, to read as follows:

    3E001 ``Technology'' according to the General Technology Note 
for the ``development'' or ``production'' of equipment or materials 
controlled by 3A (except 3A292, 3A980, 3A981, 3A991 or 3A992), 3B 
(except 3B991 or 3B992) or 3C.
* * * * *

License Exceptions

    CIV: Yes for deemed exports, as described in Sec.  
734.2(b)(2)(ii) of the EAR, of technology for the development or 
production of microprocessor microcircuits, micro-computer 
microcircuits, and microcontroller microcircuits having the 
characteristics described in 3A001.a.3.c with a CTP less than or 
equal to 40,000 MTOPS (regardless of word length or access width). 
Deemed exports under License Exception CIV are subject to a Foreign 
National Review (FNR) requirement, see Sec.  740.5 of the EAR for 
more information about the FNR. License Exception CIV does not apply 
to ECCN 3E001 technology for 3A001.a.3.c required for the 
development or production of other items controlled under ECCNs 
beginning with 3A, 3B, or 3C, or to ECCN 3E001 technology also 
controlled under ECCN 3E003.
    TSR: * * *

* * * * *

0
5. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3--Electronics, Export Control Classification Number (ECCN) 
3E002 is amended by revising the ``CIV'' paragraph in the License 
Exceptions section, to read as follows:

    3E002 ``Technology'' according to the General Technology Note 
other than that controlled in 3E001 for the ``development'' or 
``production'' of ``microprocessor microcircuits'', ``micro-computer 
microcircuits'' and microcontroller microcircuits having a 
``composite theoretical performance'' (``CTP'') of 530 million 
theoretical operations per second (MTOPS) or more and an arithmetic 
logic unit with an access width of 32 bits or more.
* * * * *

License Exceptions

    CIV: Yes, for deemed exports, as described in Sec.  
734.2(b)(2)(ii) of the EAR, of ``technology'' for the 
``development'' or ``production'' of general purpose microprocessors 
with a CTP less than or equal to 40,000 MTOPS (regardless of word 
length or access width). Deemed exports under License Exception CIV 
are subject to a Foreign National Review (FNR) requirement, see 
Sec.  740.5 of the EAR for more information about the FNR. License 
Exception CIV does not apply to ECCN 3E002 technology also required 
for the development or production of items controlled under ECCNs 
beginning with 3A, 3B, or 3C, or to ECCN 3E002 technology also 
controlled under ECCN 3E003.
    TSR: * * *

* * * * *

    Dated: October 28, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-24680 Filed 11-4-04; 8:45 am]
BILLING CODE 3510-33-P


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