5928 Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Rules and Regulations 

of this AD has been included in the general 

revisions of the AFM, the general revisions 

may be inserted into the AFM, and the copy 

of this AD may be removed from the AFM.

Alternative Methods of Compliance 

(b) An alternative method of compliance or 

adjustment of the compliance time that 

provides an acceptable level of safety may be 

used if approved by the Manager, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA. Operators shall 

submit their requests through an appropriate 

FAA Principal Maintenance Inspector, who 

may add comments and then send it to the 

Manager, International Branch, ANM–116.

Note 2: Information concerning the 

existence of approved alternative methods of 

compliance with this AD, if any, may be 

obtained from the Manager, International 

Branch, ANM–116.

Special Flight Permits 

(c) Special flight permits may be issued in 

accordance with sections 21.197 and 21.199 

of the Federal Aviation Regulations (14 CFR 

21.197 and 21.199) to operate the airplane to 

a location where the requirements of this AD 

can be accomplished.

Note 3: The subject of this AD is addressed 

in French airworthiness directive 2001–

186(B), dated May 16, 2001.

Effective Date 

(d) This amendment becomes effective on 

March 15, 2004.

Issued in Renton, Washington, on January 

29, 2004. 

Kalene C. Yanamura, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service.

[FR Doc. 04–2572 Filed 2–6–04; 8:45 am] 

BILLING CODE 4910–13–P

DEPARTMENT OF COMMERCE

Bureau of Industry and Security 

15 CFR Parts 734, 740, and 774 

[Docket No. 040202032–4032–01] 

RIN 0694–AD03 

Licensing Jurisdiction for QRS11 

Micromachined Angular Rate Sensors

AGENCY: Bureau of Industry and 

Security, Commerce.

ACTION: Final rule.

SUMMARY: This final rule amends the 

Export Administration Regulations 

(EAR) to transfer, coincident with the 

State Department’s written commodity 

jurisdiction determination of February 

9, 2004, licensing jurisdiction for 

QRS11–00100–100/101 Micromachined 

Angular Rate Sensors from the 

Department of State to the Department 

of Commerce when those sensors are 

integrated into an instrument system 

(CSIS) of the type described in ECCN 

7A994 or aircraft of the type described 

in ECCN 9A991 that incorporates a CSIS 

that has such a sensor integrated, or are 

exported solely for integration into such 

a system. This rule also excludes 

systems or aircraft integrating QRS11–

00100–100/101 sensors from eligibility 

for the de minimis provisions of the 

EAR, and excludes the sensors from 

license exception eligibility.

DATES: This rule is effective: February 9, 

2004.

FOR FURTHER INFORMATION CONTACT:

Gene Christiansen, Office of Strategic 

Trade, Bureau of Industry and Security, 

U.S. Department of Commerce at (202) 

482–2984.

SUPPLEMENTARY INFORMATION: 

Background 

On January 7, 2004, the Department of 

State published a rule amending the 

International Traffic in Arms 

Regulations (ITAR) to remove from 

United States Munitions List (USML) 

jurisdiction certain quartz rate sensors 

when the sensors are integrated into and 

included as an integral part of a 

commercial standby instrument system 

for use on civil aircraft or exported 

solely for integration into such 

commercial standby instrument 

systems. The State Department will 

review on a case-by-case basis requests 

to determine whether a sensor is eligible 

for removal from the USML under the 

ITAR regulatory change, and must 

provide a written determination of 

commodity jurisdiction in order for the 

removal to take effect (69 FR 873). 

As of February 9, 2004, the State 

Department has determined that 

QRS11–00100–100/101 Micromachined 

Angular Rate Sensors integrated into 

and included as an integral part of a 

Commercial Standby Instrument System 

(CSIS) of the type described in the 

Export Administration Regulations 

(EAR) under ECCN 7A994 or an aircraft 

of the type described in ECCN 9A991 

that incorporates a CSIS that has such 

a sensor integrated, or exported solely 

for integration into such a system are 

subject to the licensing jurisdiction of 

the Department of Commerce. In all 

other cases, the QRS–11 Micromachined 

Angular Rate Sensors, including the 

QRS11–00100–100/101 sensors, are 

subject to the licensing jurisdiction of 

the Department of State, Directorate of 

Defense Trade Controls. 

When exported solely for integration 

into a foreign-made CSIS, the QRS11–

00100–100/101 is subject to Regional 

Stability controls under RS Column 1 in 

Part 738 of the EAR, requiring a license 

for export to all destinations except 

Canada. A CSIS integrating the sensor or 

an aircraft incorporating such a CSIS are 

subject to Anti-Terrorism controls under 

AT Column 1. No license exceptions are 

available for the QRS11–00100–100/101 

sensor or the CSIS integrating the 

sensor. License Exception AVS is 

available only for certain aircraft on 

temporary sojourn, specifically those 

eligible under § 740.15(a) of the EAR.

There is no de minimis level for 

foreign-made CSISs that contain 

QRS11–00100–100/101 Micromachined 

Angular Rate Sensors, or for foreignmade aircraft that incorporate CSISs that 

have QRS11–00100–100/101s integrated 

(see § 734.4(a) of the EAR). Both the 

instruments and the aircraft remain 

subject to the EAR regardless of their 

percentage, by value, of U.S. content. 

This final rule involves no new 

curtailment of exports, because any 

transfer or removal of items from the 

licensing jurisdiction of the Department 

of State to the licensing jurisdiction of 

the Department of Commerce maintains 

a continuity of controls. Therefore, the 

provisions regarding the impact of new 

controls do not apply and contract 

sanctity also does not apply to this 

imposition of controls (50 app. U.S.C. 

Sec. 2405(p)). 

Any violation of the International 

Traffic in Arms Regulations, including 

any violation of the terms and 

conditions of any Department of State 

issued export license, prior to the 

transfer of jurisdiction pursuant to this 

final rule, shall constitute a violation of 

the Arms Export Control Act. Items 

already exported under State 

jurisdiction, including pursuant to 

USML licenses, will remain subject to 

State jurisdiction until such time as the 

exporter requests and Commerce issues 

authorization to replace the State 

license. Upon notification by Commerce 

of such authorization, State will revoke 

any previously issued licenses. Such 

items exported under the ITAR, 

including pursuant to USML licenses, 

but made subject to the EAR by this rule 

and written determination of the 

Department of State may, thereafter, be 

integrated into CSISs or aircraft that 

incorporate CSISs that have such 

sensors integrated, or reexported in 

accordance with the provisions of this 

rule. Actions pending at the Department 

of State on February 9, 2004, including 

pending license applications, must be 

refiled with the Department of 

Commerce. In addition, items exported 

or reexported without a USML license 

prior to a change in jurisdiction in 

accordance with this rule must be 

disclosed to the Department of State 

pursuant to 22 CFR 127.12 prior to 

requesting Commerce authorization. 

Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Rules and Regulations 5929

Consistent with the provisions of 

section 6 of the Export Administration 

Act, a foreign policy report was 

submitted to Congress on February 3, 

2004, notifying the Congress of the 

change in licensing jurisdiction 

reflected in this rule. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001 (66 FR 44025, 

3 CFR, 2001 Comp., p. 783), as extended 

by the Notice of August 7, 2003 (68 FR 

47833, August 11, 2003), has continued 

the Export Administration Regulations 

in effect under the International 

Emergency Economic Powers Act. 

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, unless that collection of 

information displays a currently valid 

Office of Management and Budget 

Control Number. This rule involves a 

collection of information subject to the 

Paperwork Reduction Act of 1980 (44 

U.S.C. 3501 et seq.). This collection has 

been approved by the Office of 

Management and Budget under control 

number 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 58 minutes for a 

manual or electronic submission. Send 

comments regarding these burden 

estimates or any other aspect of these 

collections of information, including 

suggestions for reducing the burden, to 

OMB Desk Officer, New Executive 

Office Building, Washington, DC 20503; 

and to the Office of Administration, 

Bureau of Industry and Security, 

Department of Commerce, 14th and 

Pennsylvania Avenue, NW., Room 6883, 

Washington, DC 20230. 

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 prior notice, the 

opportunity for public comment, and a 

delay in effective date, are inapplicable 

because this regulation involves a 

military and foreign affairs function of 

the United States (5 U.S.C. 553(a)(1)). 

Further, no other law requires that prior 

notice and an opportunity for public 

comment be given for this final rule. 

Because prior notice 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 Hillary Hess, Office of 

Exporter Services, Bureau of Export 

Administration, Department of 

Commerce, P.O. Box 273, Washington, 

DC 20044.

List of Subjects 

15 CFR Part 734 

Administrative practice and 

procedure, Exports, Foreign trade. 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Foreign trade, 

Reporting and recordkeeping 

requirements. 

15 CFR Part 774 

Exports, Foreign trade.

■ Accordingly, parts 734, 740, and 774 of 

the Export Administration Regulations 

(15 CFR parts 730–799) are amended as 

follows:

PART 734—[AMENDED]

■ 1. The authority citation for 15 CFR 

part 734 is revised to read as follows:

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

U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 

3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 

FR 54079, 3 CFR, 1996 Comp. p. 219; 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 October 29, 2003, 68 

FR 62209, October 31, 2003; Notice of August 

7, 2003, 68 FR 47833, August 11, 2003.

■ 2. Section 734.3, paragraph (a)(3) is 

revised to read as follows:

§ 734.3 Items subject to the EAR. 

(a) * * *

(3) U.S. origin parts, components, 

materials or other commodities 

integrated abroad into foreign-made 

products, U.S. origin software 

commingled with foreign software, and 

U.S. origin technology commingled with 

foreign technology: 

(i) In any quantity, as described in 

section 734.4(a) of this part; or 

(ii) In quantities exceeding de 

minimis levels as described in section 

734.4(c) and Supplement No. 2 of this 

part;

* * * * *

■ 3. Section 734.4 is amended by:

■ (a) Revising paragraph (a), as set forth 

below;

■ (b) Removing and reserving paragraph 

(b); and

■ (c) Revising the introductory text for 

paragraph (c), to read as follows:

§ 734.4 De minimis U.S. content. 

(a) Items for which there is no de 

minimis level. (1) There is no de 

minimis level for the export from a 

foreign country of a foreign-made 

computer exceeding 190,000 MTOPS 

containing U.S.-origin controlled 

semiconductors (other than memory 

circuits) classified under ECCN 3A001 

to Computer Tier 3; or exceeding 28,000 

MTOPS containing U.S.-origin 

controlled semiconductors (other than 

memory circuits) classified under ECCN 

3A001 or high speed interconnect 

devices (ECCN 4A994.j) to Computer 

Tier 4 countries described in § 742.12 of 

the EAR. 

(2) There is no de minimis level for 

foreign-made items that incorporate 

U.S.-origin items controlled for ‘‘EI’’

reasons under ECCN 5A002, 5D002 or 

5E002 on the Commerce Control List 

(Supplement No. 1 to part 774 the EAR). 

However, exporters may, as part of an 

encryption review request, ask that 

software controlled for EI reasons under 

ECCN 5D002 and eligible for export 

under the ‘‘retail’’ or ‘‘source code’’

provisions of license exception ENC, 

and parts and components controlled 

under ECCN 5A002, be made eligible for 

de minimis treatment. The review of de 

minimis eligibility will take U.S. 

national security interests into account. 

Other encryption items controlled for 

NS or AT reasons under ECCNs 5D002, 

5A992, 5D992, and 5E992 are not 

eligible for de minimis treatment, unless 

exporters have complied with the 

applicable notification or review 

requirements described in § 740.13(e), 

§ 742.15(b)(1), and § 742.15(b)(2) of the 

EAR. Encryption items controlled by 

ECCN 5A992, 5D992, or 5E992 and 

described in § 742.15(b)(3) of the EAR 

are not subject to these notification or 

review requirements. 

(3) There is no de minimis level for 

foreign-made: 

(i) Commercial Standby Instrument 

Systems (CSIS) of the type described in 

ECCN 7A994 on the Commerce Control 

List (Supplement No. 1 to part 774 the 

EAR) when the CSISs integrate QRS11–

00100–100/101 Micromachined Angular 

Rate Sensors; and 

(ii) Aircraft of the type described in 

ECCN 9A991 when such aircraft 

incorporate a CSIS integrating a QRS11–

00100–100/101 sensor.

Note to paragraph (a)(3): QRS11 

Micromachined Angular Rate Sensors are 

subject to the export licensing jurisdiction of 

the U.S. Department of State, Directorate of 

5930 Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Rules and Regulations 

Defense Trade Controls, except when the 

QRS11–00100–100/101 version of the sensor 

is integrated into and included as an integral 

part of a CSIS of the type described in ECCN 

7A994 or aircraft of the type described in 

ECCN 9A991 that incorporates a CSIS that 

has such a sensor integrated, or is exported 

solely for integration into such a system.

(b) [Reserved] 

(c) Except as provided in paragraph 

(a) of this section for certain computers, 

items controlled for EI reasons, and 

certain aircraft and instrument systems, 

the following reexports are not subject 

to the EAR when made to a terroristsupporting country listed in Country 

Group E:1 (see Supplement No. 1 to part 

740 of the EAR):

* * * * *

PART 740—[AMENDED]

■ 4. The authority citation for 15 CFR 

part 740 continues to read as follows:

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

U.S.C. 1701 et seq.; 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 

7, 2003, 68 FR 47833, August 11, 2003.

■ 5. Section 740.2 is amended by adding 

paragraph (a)(9) to read as follows:

§ 740.2 Restrictions on all License 

Exceptions.

* * * * *

(9) The item is a QRS11–00100–100/

101 Micromachined Angular Rate 

Sensor controlled for RS reasons under 

ECCN 7A994.

* * * * *

SUPPLEMENT NO. 1 TO PART 774—

[AMENDED]

■ 6. 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); 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 7, 2003, 68 

FR 47833, August 11, 2003.

■ 7. In Supplement No. 1 to part 774 (the 

Commerce Control List), Category 7—

Navigation and Avionics, ECCN 7A994 

is amended by revising the License 

Requirements section, and the ‘‘Related 

Controls’’ paragraph in the List of Items 

Controlled section, to read as follows:

7A994 Other navigation direction finding 

equipment, airborne communication 

equipment, all aircraft inertial 

navigation systems not controlled under 

7A003 or 7A103, and other avionic 

equipment, including parts and 

components, n.e.s.

License Requirements 

Reason for Control: RS, AT

Control(s) Country chart 

RS applies to 

QRS11–00100–

100/101 Micromachined Angular 

Rate Sensors when 

exported solely for 

integration into a 

CSIS controlled in 

this entry.

RS Column 1 

AT applies to entire 

entry.

AT Column 1

License Requirement Notes: There is no de 

minimis level for foreign-made 

Commercial Standby Instrument Systems 

(CSIS) that integrate QRS11–00100–100/

101 Micromachined Angular Rate Sensors 

(see § 734.4(a) of the EAR).

* * * * *

List of Items Controlled 

Unit: * * * 

Related Controls: QRS11 Micromachined 

Angular Rate Sensors are subject to the 

export licensing jurisdiction of the U.S. 

Department of State, Directorate of Defense 

Trade Controls, unless the QRS11–00100–

100/101 is integrated into and included as 

an integral part of a CSIS of the type 

described in ECCN 7A994 or aircraft of the 

type described in ECCN 9A991 that 

incorporates a CSIS that has such a sensor 

integrated, or is exported solely for 

integration into such a system (See 22 CFR 

Part 121). In the latter case, such items are 

subject to the licensing jurisdiction of the 

Department of Commerce. Technology 

specific to the development and 

production of QRS11 sensors remains 

subject to the licensing jurisdiction of the 

Department of State. 

Related Definitions: * * * 

Items: ***

■ 8. In Supplement No. 1 to part 774 (the 

Commerce Control List), Category 7—

Navigation and Avionics, ECCN 7E994 is 

amended by revising the License 

Requirements section, and the ‘‘Related 

Controls’’ paragraph in the List of Items 

Controlled section, to read as follows:

7E994 ‘‘Technology’’, n.e.s., for the 

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

of navigation, airborne communication, 

and other avionics equipment.

* * * * *

List of Items Controlled 

Unit: * * * 

Related Controls: Technology specific to the 

development and production of QRS11 

sensors remains subject to the licensing 

jurisdiction of the Department of State (see 

ECCN 7A994, Related Controls). 

Related Definitions: * * * 

Items: ***

■ 9. In Supplement No. 1 to part 774 (the 

Commerce Control List), Category 9—

Propulsion Systems, Space Vehicles and 

Related Equipment, ECCN 9A991 is 

amended by adding a ‘‘License 

Requirements Note’’ to the License 

Requirements section, and revising the 

‘‘Related Controls’’ paragraph in the List 

of Items Controlled section, to read as 

follows:

9A991 ‘‘Aircraft’’, n.e.s., and gas turbine 

engines not controlled by 9A001 or 

9A101 and parts and components, n.e.s.

License Requirements 

Reason for Control: AT, UN

Control(s) Country chart 

AT applies to entire 

entry.

AT Column 1. 

UN applies to 

9A991.a.

Rwanda. 

License Requirement Notes: There is no de 

minimis level for foreign-made aircraft 

described by this entry that incorporate 

Commercial Standby Instrument Systems 

(CSIS) that integrate QRS11–00100–100/

101 Micromachined Angular Rate Sensors 

(see § 734.4(a) of the EAR).

* * * * *

List of Items Controlled 

Unit: ***

Related Controls: QRS11 Micromachined 

Angular Rate Sensors are subject to the 

export licensing jurisdiction of the U.S. 

Department of State, Directorate of Defense 

Trade Controls, unless the QRS11–00100–

100/101 is integrated into and included as 

an integral part of a CSIS of the type 

described in ECCN 7A994 or aircraft of the 

type described in ECCN 9A991 that 

incorporates a CSIS that has such a sensor 

integrated, or is exported solely for 

integration into such a system (See 22 CFR 

part 121). In the latter case, such items are 

subject to the licensing jurisdiction of the 

Department of Commerce. Technology 

specific to the development and 

production of QRS11 sensors remains 

subject to the licensing jurisdiction of the 

Department of State. 

Related Definitions: ***

Items: ***

Dated: February 3, 2004. 

Matthew S. Borman, 

Deputy Assistant Secretary for Export 

Administration.

[FR Doc. 04–2655 Filed 2–6–04; 8:45 am] 

BILLING CODE 3510–33–P