76072 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 

Paragraph 6011 United States Area 

Navigation Routes. 

* * * * * 

T–288 Gillette, WY (GCC) to Wolbach, NE (OBH) [Amended] 

Gillette, WY (GCC) ........................................ VOR/DME ...................................................... (Lat. 44°20′52′′ N., long. 105°32′37′′ W.) 

KARAS, .......................................................... INT ................................................................. (Lat. 44°16′23′′ N., long. 104°18′50′′ W.) 

Rapid City, SD (RAP) .................................... VORTAC ........................................................ (Lat. 43°58′34′′ N., long. 103°00′44′′ W) 

WNDED, SD ................................................... WP ................................................................. (Lat. 43°19′14′′ N., long. 101°32′19′′ W.) 

Valentine, NE (VTN) ..................................... NDB ............................................................... (Lat. 42°51′42′′ N., long. 100°32′59′′ W.) 

Ainsworth, NE (ANW) .................................. VOR/DME ...................................................... (Lat. 42°34′09′′ N., long. 99°59′23′′ W.) 

FESNT, NE .................................................... WP ................................................................. (Lat. 42°03′57′′ N., long. 99°17′18′′ W.) 

Wolbach, NE (OBH) ...................................... VORTAC ........................................................ (Lat. 41°22′33′′ N., long. 98°21′13′′ W.) 

* * * * * 

Issued in Washington, DC on November 29, 

2011. 

Gary A. Norek, 

Acting Manager, Airspace, Regulations and 

ATC Procedures Group. 

[FR Doc. 2011–31223 Filed 12–5–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 740, 742 and 774 

[Docket No. 111020646–1645–01] 

RIN 0694–AF41 

Revisions to the Export Administration 

Regulations (EAR): Control of Gas 

Turbine Engines and Related Items 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 publishes this proposed rule 

that describes how military gas turbine 

engines and related articles that the 

President determines no longer warrant 

control under Category VI, VII, or VIII of 

the United States Munitions List 

(USML) would be controlled under the 

Commerce Control List (CCL) in new 

Export Control Classification Numbers 

(ECCNs) 9A619, 9B619, 9C619, 9D619 

and 9E619. In addition, this proposed 

rule would control military trainer 

aircraft turbo prop engines and related 

items, which are currently controlled 

under ECCN 9A018.a.2 or .a.3, 9D018 or 

9E018, under new ECCN 9A619, 9D619 

or 9E619. 

This rule is one of a planned series of 

proposed rules that are part of the 

Administration’s Export Control Reform 

Initiative under which various types of 

articles presently controlled on the 

USML under the International Traffic in 

Arms Regulations (ITAR) would, 

instead, be controlled on the CCL in 

accordance with the requirements of the 

Export Administration Regulations 

(EAR), if and after the President 

determines that such articles no longer 

warrant control on the USML. This 

proposed rule is being published in 

conjunction with a proposed rule from 

the Department of State, Directorate of 

Defense Trade Controls that would 

consolidate in USML Category XIX the 

military gas turbine engines and related 

articles that would remain on the 

USML. 

DATES: Comments must be received by 

January 20, 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– 

2011–0042. 

• By email directly to: 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF41 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–AF41. 

FOR FURTHER INFORMATION CONTACT: 

Gene Christiansen, Office of National 

Security and Technology Transfer 

Controls, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Telephone: (202) 482–2984, Email: 

Gene.Christiansen@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) (‘‘the July 

15 proposed rule’’) that set forth a 

framework for how articles 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) 

and, instead, would be controlled on the 

Commerce Control List (CCL). The July 

15 proposed rule also contained a 

proposal by BIS describing how military 

vehicles and related articles in USML 

Category VII that no longer warrant 

control under the USML would be 

controlled on the CCL. 

On November 7, 2011 (76 FR 68675), 

BIS published a proposed rule 

describing how aircraft and related 

items determined by the President to no 

longer warrant control under the USML 

would be controlled on the CCL. In that 

proposed rule, BIS also made several 

changes and additions to the framework 

proposed in the July 15 proposed rule. 

BIS plans to publish additional 

proposed rules describing how surface 

vessels and related articles (currently 

controlled under USML Category VI) 

and submersibles, submarines, and 

related articles (currently controlled by 

USML Category VI or XX) that the 

President determines no longer warrant 

control on the USML would be 

controlled on the CCL. 

BIS also plans to publish a proposed 

rule describing how the new controls 

described in this and similar notices 

would be implemented, such as through 

the use of ‘‘grandfather’’ clauses and 

additional exceptions. The goal of such 

provisions would be to give exporters 

sufficient time to implement the final 

versions of such changes and to avoid, 

to the extent possible, situations where 

transactions would require licenses 

from both the State Department and the 

Commerce Department. 


tkelley on DSK3SPTVN1PROD with PROPOSALS-1
Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 76073 

Following the structure of the July 15 

and November 7 proposed rules, which 

describe the ‘‘export control reform 

initiative framework’’ for controlling on 

the CCL articles that the President 

determines no longer warrant control on 

the USML, this proposed rule describes 

BIS’s proposal for how another group of 

items—gas turbine engines and related 

articles for military vessels, vehicles, 

and aircraft that are controlled by USML 

Categories VI, VII, and VIII, 

respectively—would be controlled on 

the CCL. The changes described in this 

proposed rule and the State 

Department’s proposed amendment to 

the USML, which would move those 

items that would be retained on the 

USML into Category XIX (currently 

reserved), are based on a review of 

Categories VI, VII, and VIII by the 

Defense Department, which worked 

with the Departments of State and 

Commerce in preparing the proposed 

amendments. The review was focused 

on identifying the types of military gas 

turbine engines and related articles now 

controlled by these USML categories 

that are either: (i) Inherently military 

and otherwise warrant control on the 

USML, or (ii) if they are a type common 

to civil applications, possess parameters 

or characteristics that provide a critical 

military or intelligence advantage to the 

United States, and are almost 

exclusively available from the United 

States. If an article satisfies either or 

both of those criteria, the article would 

remain on the USML. If an article does 

not satisfy either criterion, but is 

nonetheless a type of article that is, as 

a result of differences in form and fit, 

‘‘specially designed’’ for military 

applications, then it is identified in one 

of the new ECCNs in this proposed rule. 

Finally, if an article does not satisfy 

either of the two criteria and is not 

found to be ‘‘specially designed’’ for 

military applications, the article is not 

affected by this rule because such items 

already are not on the USML. The 

licensing policies and other EARspecific controls for such items that are 

also described in this proposed rule 

would enhance our national security by: 

(i) Allowing for greater interoperability 

with our NATO, and other, allies while 

maintaining and expanding robust 

controls that, in some instances, would 

include prohibitions on exports or 

reexports destined for other countries or 

intended for proscribed end-users and 

end-uses; (ii) enhancing our 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 our 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). This proposed rule describes 

how certain military gas turbine engines 

and related articles in USML Categories 

VI, VII, and VIII 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. 

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 on Export Controls for 

Conventional Arms and Dual-Use Goods 

and Technologies Munitions List 

(Wassenaar Arrangement Munitions List 

or WAML) and are already controlled 

elsewhere on the CCL. The proposed 

rule referred to this 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 contains an 

exception to the general approach of 

tracking the numbering structure of the 

WAML. BIS believes that it will be 

easier for industry to identify and 

comply with controls on USML gas 

turbine engines and related items if they 

are combined into one category, 

regardless of the end item for which the 

engines are designed or modified. The 

suffix ‘‘019’’ was used in the proposed 

ECCNs to track the new Category XIX 

that would be used to control gas 

turbine engines that would remain on 

the USML. The Administration, 

however, encourages the public to 

comment about whether it would be 

easier and more convenient for industry 

if the controls on gas turbine engines 

remained in the categories of the end 

items into which the engines are 

installed. Thus, for example, BIS is 

soliciting public comments on whether 

it would be preferable to have gas 

turbine engines for 600 series-controlled 

military aircraft in the same ECCN 

9A610 as such aircraft, or in new ECCN 

9A619, which is specific to gas turbine 

engines. Similarly, the State 

Department, in its proposed rule, asks 

comments on whether it would be 

preferable for controls on USML aircraft 

engines to remain in USML Category 

VIII(b) or for such engines to be placed 

in a new USML Category XIX. 

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. 

Modifications to Provisions in the July 

15 and November 7 Proposed Rules 

In addition to the proposals 

mentioned above, this proposed rule 

would make the following modifications 

to the July 15 proposed rule: 

• Addition of new Category 9 (600 

series) items to proposed Supplement 

No. 4 to Part 740; and 

• Addition of the new Category 9 (600 

series) ECCNs to § 742.6(a)(1). 

These modifications are described in 

the section ‘‘Scope of this Proposed 

Rule.’’ 

Similarly, BIS will consider 

comments on the July 15 proposals only 

for the specific paragraph, note, and 

ECCNs referenced above, and only 

within the context of this proposed 

rule’s modifications to them. 

Scope of This Proposed Rule 

This proposed rule would create five 

new 600 series ECCNs in CCL Category 

9—9A619, 9B619, 9C619, 9D619, and 

9E619—that would control military gas 

turbine engines and related articles that 

the President determines no longer 

warrant control under USML Category 


tkelley on DSK3SPTVN1PROD with PROPOSALS-1
76074 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 

VI, VII, or VIII. Consistent with the 

regulatory construct identified in the 

July 15 proposed rule, this rule also 

would move military trainer aircraft 

turbo prop engines and related items 

currently classified under ECCN 

9A018.a.2 or .a.3, 9D018, or 9E018 to 

new ECCN 9A619, 9D619, or 9E619. As 

part of the proposed changes, these 

three 018 ECCNs would cross-reference 

the new classifications in the 600 series. 

As noted in the July 15 proposed rule, 

moving items from 018 ECCNs to the 

appropriate 600 series ECCNs would 

consolidate WAML and formerly USML 

items into one series of ECCNs. 

The proposed changes are discussed 

in more detail, below. 

New Category 9 (600 Series) ECCNs 

Certain military gas turbine engines 

and related articles that the President 

determines no longer warrant control in 

USML Category VI, VII, or VIII would be 

controlled under proposed new ECCNs 

9A619, 9B619, 9C619, 9D619, and 

9E619. 

Paragraphs .a through .d of ECCN 

9A619 would control, respectively: (i) 

Gas turbine engines ‘‘specially 

designed’’ for military use that would 

not be controlled under proposed USML 

Category XIX; (ii) digital engine controls 

(e.g. Full Authority Digital Engine 

Controls (FADEC) and Digital Electronic 

Engine Controls (DEEC)) ‘‘specially 

designed’’ for gas turbine engines in 

ECCN 9A619; (iii) hot section 

components and related cooled 

components ‘‘specially designed’’ for 

gas turbine engines in ECCN 9A619; and 

(iv) engine monitoring systems for gas 

turbine engines and components in 

ECCN 9A619. All such items would be 

‘‘components,’’ as that term is defined 

in the July 15 proposed rule, because 

they are items that are useful only when 

used in conjunction with an ‘‘end item.’’ 

The definition distinguishes between 

two types of ‘‘components’’: ‘‘major 

components’’ and ‘‘minor components.’’ 

A ‘‘major component’’ includes any 

assembled element which forms a 

portion of an ‘‘end item’’ without which 

the end item is inoperable. A ‘‘minor 

component’’ includes any assembled 

element of a ‘‘major component.’’ 

Paragraphs .e through .w would be 

reserved for possible future use. 

Paragraph .x would consist of ‘‘parts,’’ 

‘‘components,’’ ‘‘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 in 

ECCN 9A619 (other than ECCN 

9A619.c) or a defense article in 

proposed USML Category XIX and not 

elsewhere specified in the CCL or on the 

USML. Paragraph .y would consist of 

eight specific types of commodities that, 

if ‘‘specially designed’’ for a commodity 

subject to control in ECCN 9A619 or a 

defense article in proposed USML 

Category XIX, warrant less strict 

controls because they have little or no 

military significance. Commodities 

listed in paragraph .y would be subject 

to antiterrorism (AT Column 1) controls, 

which currently impose a license 

requirement for five countries. A license 

also would be required, in accordance 

with the July 15 proposed rule, if 

commodities listed in paragraph .y were 

destined to the People’s Republic of 

China for a military end use as 

described in § 744.21 of the EAR. 

Although including all military gas 

turbine engines transferred from the 

USML, or from an existing 018 ECCN, 

in a single 600 series ECCN (i.e., ECCN 

9A619) would deviate slightly from the 

WAML numbering approach, BIS 

believes that it would be more efficient 

to list all 600 series controls for engines 

and related items in one ECCN. New 

ECCN 9A619 would correspond to a 

new USML Category XIX that the State 

Department is proposing, which would 

control USML-controlled engines and 

related articles. When BIS publishes this 

rule in final form, BIS will add cross 

references to proposed new ECCN 

9A619 to the new military ground 

vehicle ECCN (i.e., ECCN 0A606) 

described in its July 15 proposed rule 

and to the new military aircraft ECCN 

(i.e., ECCN 9A610) described in its 

November 7 proposed rule. Subsequent 

rules in this series (e.g., the rules that 

would address military surface vessels, 

submersibles and related articles) would 

contain cross references to new ECCN 

9A610, as appropriate. BIS encourages 

the submission of comments on its 

proposal to consolidate all military gas 

turbine engines that would be 

transferred from the USML to the CCL 

into a single ECCN (ECCN 9A619), as 

opposed to listing such engines in 

separate ECCNs that would control 

military vehicles, vessels (both surface 

and submersible), and aircraft, 

respectively, transferred from the USML 

to the CCL. Similarly, the State 

Department, in its proposed rule, asks 

for comments on whether it would be 

preferable for controls on USML aircraft 

engines to remain in USML Category 

VIII(b) or for such engines to be placed 

in a new USML Category XIX. 

ECCN 9B619.a would control test, 

inspection, and production 

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

the ‘‘development,’’ ‘‘production,’’ 

repair, overhaul or refurbishment of 

military gas turbine engines and related 

commodities enumerated in ECCN 

9A619 (except for items in 9A619.y) or 

in USML Category XIX, and ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ ‘‘specially designed’’ 

therefor. ECCN 9B619.b would control 

equipment, cells, or stands ‘‘specially 

designed’’ for testing, analysis and fault 

isolation of engines, systems, ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ specified in ECCN 9A619 

or in Category XIX on the USML. ECCN 

9B619.y would control test, inspection 

and production ‘‘equipment’’ ‘‘specially 

designed’’ for the ‘‘development’’ or 

‘‘production’’ of military gas turbine 

engines and related commodities in 

ECCN 9A619 (except for 9A619.y) or in 

USML Category XIX and ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ ‘‘specially designed’’ 

therefor, as follows: bearing puller (see 

ECCN 9B619.y.1). Paragraphs .c through 

.x and paragraphs .y.2 through y.98 

would be reserved for possible future 

use. 

ECCN 9C619.a would control 

materials ‘‘specially designed’’ for 

military gas turbine engines and related 

commodities enumerated in ECCN 

9A619 (except 9A619.y) that are not 

specified elsewhere in the CCL, such as 

in Category 1, or on the USML. 

Paragraphs .b through .x of ECCN 9C619 

would be reserved for possible future 

use. USML subcategory XIII(f) would 

continue to control structural materials 

‘‘specifically designed, developed, 

configured, modified, or adapted for 

defense articles.’’ The State Department 

plans to publish a proposal that would 

make USML Category XIII(f) a positive 

list of controlled structural materials. 

BIS plans to then publish corresponding 

amendments to its controls on materials 

‘‘specially designed’’ for articles in the 

relevant 600 series ECCN and 

corresponding USML category. 

ECCN 9D619.a would control 

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

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by ECCN 9A619 

(except 9A619.y), 9B619 (except 

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

Paragraphs .b through .x of ECCN 9D619 

would be reserved for possible future 

use. ECCN 9D619.y would control 

specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘development,’’ 

‘‘production,’’ operation, or 

maintenance of commodities controlled 

by ECCN 9A619, 9B619, or 9C619, as 

follows: specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘development,’’ 

‘‘production,’’ operation or maintenance 

of commodities controlled by ECCN 

9A619.y, 9B619.y, or 9C619.y (see ECCN 


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Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 76075 

9D619.y.1). ECCN 9D619 also would 

contain a note indicating that it controls 

‘‘software,’’ not specified elsewhere on 

the CCL, that is ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities enumerated in ECCN 

9A619, 9B619, or 9C619, even if such 

‘‘software’’ is also related to an article 

on the USML, as specified in USML 

Category XIX(g). 

ECCN 9E619.a would control 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

military gas turbine engines and related 

items controlled by ECCN 9A619 

(except 9A619.y), 9B619 (except 

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

9D619 (except 9D619.y). Paragraphs .b 

through .x of ECCN 9E619 would be 

reserved for possible future use. ECCN 

9E619.y would control specific 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

military gas turbine engines and related 

items controlled by ECCN 9A619, 

9B619, 9C619, or 9D619, as follows: 

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

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

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

9C619.y, or 9D619.y (see ECCN 

9E619.y.1). ECCN 9E619 also would 

contain a note indicating that it controls 

‘‘technology,’’ not specified elsewhere 

on the CCL, that is ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

items enumerated in ECCN 9A619, 

9B619, 9C619, or 9D619, even if such 

‘‘technology’’ is also related to an article 

on the USML, as specified in Category 

XIX(g). 

In addition, ECCNs 9A619, 9B619, 

9C619, 9D619, and 9E619 would each 

contain a special paragraph designated 

‘‘.y.99.’’ Paragraph .y.99 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 9 (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 

controls. 

This proposed rule also would move 

military trainer aircraft turbo prop 

engines and parts and components 

therefor currently controlled under 

ECCN 9A018.a.2 or .a.3 to new 600 

series ECCN 9A619. In addition, related 

software and technology currently 

controlled under ECCNs 9D018 and 

9E018 would be moved to new 600 

series ECCNs 9D619 and 9E619, 

respectively. Other items currently 

controlled under ECCN 9A018 (except 

ground transport vehicles controlled 

under ECCN 9A018.b) would be moved 

to new 600 series ECCN 9A610 by the 

military aircraft proposed rule that BIS 

published on November 7, 2011. The 

July 15 proposed rule published by BIS 

would move ground transport vehicles 

currently controlled under ECCN 

9A018.b to new 600 series ECCN 0A606. 

In conjunction with the establishment of 

the new ECCN 9X619 entries, and 

consistent with the July 15 proposed 

rule’s statement that 018 entries would 

remain in the CCL for a time, but only 

for cross-reference purposes, this rule 

would amend ECCNs 9A018, 9D018, 

and 9E018 to remove all language 

except cross references to the new 600 

series ECCNs that cover the items 

currently in those 018 ECCNs. ECCN 

9A018 would refer to ECCN 0A606 for 

ground transport vehicles (for items 

currently controlled under ECCN 

9A018.b), to ECCN 9A610 for aircraft 

related commodities (i.e., for items 

currently controlled under ECCN 

9A018.a.1, .a.3, .c, .d, .e, and .f), and to 

ECCN 9A619 gas turbine aircraft engines 

(for military trainer aircraft turbo prop 

engines and parts and components 

therefore currently controlled under 

ECCN 9A018.a.2 or .a.3). Similarly, 

ECCN 9D018 would refer to new ECCNs 

0D606, 9D610, and 9D619 for related 

software, and ECCN 9E018 would refer 

to ECCNs 0E606, 9E610, and 9E619 for 

related technology. 

License Exception Restrictions (STA and 

GOV) 

Certain software and technology 

related to parts and components covered 

by .x items paragraphs of 600 series 

ECCNs warrant more restrictive license 

exception applicability than other 

software and technology currently on 

the CCL. The November 7 proposed rule 

published by BIS would create a new 

Supplement No. 4 to part 740 (600 

Series Items Subject to Limits Regarding 

License Exceptions GOV and STA) that 

would identify 600 series items that 

may not be exported, reexported, or 

transferred (in-country) pursuant to 

License Exceptions STA (§ 740.20 of the 

EAR) or GOV (§ 740.11 of the EAR). The 

supplement would be structured to 

identify by CCL category the items for 

which license exception applicability is 

limited. 

This proposed rule would include in 

new Supplement No. 4 to part 740 nine 

types of parts and components that 

would be classified under new ECCN 

9A619.x and would state that License 

Exception STA (§ 740.20 of the EAR) 

may not be used to export, reexport, or 

transfer (in-country) any software 

classified under ECCN 9D619 or 

technology classified under ECCN 

9E619—other than ‘‘build-to-print 

technology’’—for the production or 

development of any types of the listed 

ECCN 9A619.x parts and components. 

Further, the supplement would state 

that License Exception GOV, other than 

the paragraphs that authorize shipments 

to U.S. government agencies for official 

use or U.S. government personnel for 

personal use or official use 

(§ 740.11(b)(2)(i) and (b)(2)(ii) of the 

EAR), is not available for the export or 

reexport of software and technology 

(other than ‘‘build-to-print technology’’) 

for the production or development of 

the ECCN 9A619.x parts and 

components listed in the supplement. 

Similar restrictions would apply to 

9D619 software and 9E619 technology 

for seven additional types of parts and 

components classified under new ECCN 

9A619.x; however, the scope of these 

restrictions would also apply to any 

affected ‘‘build-to-print’’ technology 

controlled under ECCN 9E619. 

In this regard, note that the November 

7 proposed rule published by BIS would 

add a new definition for ‘‘build-to-print 

technology’’ to § 772.1 that would 

define the term as it would be used in 

new Supplement No. 4 to part 740. 

Furthermore, the November 7 proposed 

rule would amend the License 

Exception STA provisions by adding a 

new note to § 740.20(c)(1) and revising 

§ 740.2(a)(13) to clarify License 

Exception STA eligibility for end items 

and all other 600 series items. In the 

July 15 proposed rule, the export of a 

600 series item is eligible for License 

Exception STA if, at the time of export, 

reexport or transfer (in-country), the 

item is destined for ultimate end use by 

the armed forces, police, paramilitary, 

law enforcement, customs and border 

protection, correctional, fire, or search 

and rescue agencies of a government in 

one of the STA–36 countries. The 

November 7 proposed rule would make 

600 series items eligible for License 

Exception STA for such uses and also 

when exported, reexported, or 

transferred for the production or 

development of an item for ultimate end 

use by an STA–36 country government 

agency, by the United States 


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76076 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 

Government, or by a person in the 

United States. 

Corresponding Amendments 

As discussed in further detail below, 

the July 15 proposed rule stated that one 

reason for control for items classified in 

the 600 series is Regional Stability 

(specifically, RS Column 1). Items 

classified under proposed ECCN 9A619, 

other than ECCN 9A619.y items, as well 

as related technology and software 

classified under ECCNs 9D619 and 

9E619, would be controlled for this 

reason, among others. Correspondingly, 

this proposed rule would revise § 742.6 

of the EAR to apply the RS Column 1 

licensing policy to commodities 

classified under ECCN 9A619, 9B619, 

9C619 (except paragraphs .y of those 

ECCNs), and to related software and 

technology classified under ECCNs 

9D619 and 9E619. Note that the 

proposed rule on military aircraft and 

related items that BIS published on 

November 7, 2011, would amend the RS 

Column 1 licensing policy to impose a 

general policy of denial for ‘‘600 series’’ 

items if the destination is subject to a 

United States arms embargo. 

Relationship to the July 15 Proposed 

Rule and Other Rules in This Series of 

Proposed Rules 

As referenced above, the purpose of 

the July 15 proposed rule is to establish 

within the EAR the framework for 

controlling on the CCL articles that the 

President determines no longer warrant 

control on the USML. To facilitate that 

goal, the July 15 proposed rule contains 

definitions and concepts that are meant 

to be applied across Categories. 

However, as BIS undertakes 

rulemakings to move specific types of 

articles from the USML to the CCL, if 

and after the President determines that 

such articles no longer warrant control 

under the USML, there may be 

unforeseen issues or complications that 

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 will close on December 22, 2011. 

To the extent that this rule’s proposals 

affect any provision in the July 15 

proposed rule or the July 15 proposed 

rule’s provisions 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. For example, BIS 

will consider comments on how the 

movement of military gas turbine 

engines and related items from the 

USML to the CCL affects a definition, 

restriction, or provision that was 

contained in the July 15 proposed rule. 

BIS will also consider comments on the 

impact of a definition of a term in the 

July 15 proposed rule when that term is 

used in this proposed rule. BIS will not 

consider comments of a general nature 

regarding the July 15 proposed rule that 

are submitted in response to this 

rulemaking. BIS will follow a similar 

approach to comments received 

concerning the other proposed USML to 

CCL rules published in this series. 

BIS believes that the following 

provisions of the July 15 proposed rule 

and the November 7 proposed rule on 

aircraft and related items are among 

those that could affect the items covered 

by 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 proposed Supplement No. 

4 to part 740; and 

• 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 will be to provide greater 

flexibility for exports and reexports to 

NATO member countries and other 

multiple-regime-member countries of 

items the President determines no 

longer warrant control on the United 

States Munitions List. This greater 

flexibility will 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 RPL and 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 

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 

9A619, 9B619, 9C619, 9D619 and 9E619 

proposed in this rule would be subject 

to the de minimis provisions set forth in 

the July 15 proposed rule, because they 

would be ‘‘600 series’’ ECCNs. Foreignmade 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). The AECA 

does not permit the ITAR to have a de 

minimis treatment for these USMLlisted 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., USML-listed items remain 

subject to the ITAR when they are 

incorporated abroad into a foreign-made 

item, regardless of either of these 

factors). In addition, foreign-made items 

that incorporate any items that are 

currently classified under an 018 ECCN 

and that are moved to a new 600 series 

ECCN would be subject to the EAR if 

those foreign-made 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. 

Based on the July 15 rule’s proposals, 

foreign-made items that contain 

controlled U.S.-origin content classified 

under non-600 series ECCNs, as well as 

600 series ECCNs, would potentially 

have to be evaluated in two stages to 

determine whether they would qualify 

for de minimis treatment. First, the 

value of the 600 series ECCN content 

would have to be calculated. If the value 

of the 600 series ECCN content exceeds 

10 percent of the value of the foreignmade item, the item would not qualify 

for de minimis treatment and would be 

subject to the EAR. However, if the 

value of the 600 series ECCN content 

does not exceed 10 percent of the value 


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of the foreign-made item, then the value 

of all of the controlled U.S. origin 

content (including both non-600 series 

and 600 series ECCN content) would 

have to be calculated to determine 

whether the foreign-made item’s total 

U.S. origin controlled content exceeds 

the de minimis percentage (either 10 

percent or 25 percent) applicable to the 

country of destination. BIS is reviewing 

comments the public submitted with 

respect to this proposal and plans to 

publish another proposed rule that 

addresses these comments and other 

related issues. 

Use of License Exceptions 

The July 15 proposed rule would 

impose certain limits for 600 series 

items moving from existing 018 controls 

on the CCL. 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 9A619. BIS also believes that, in 

practice, the movement of items from 

018 ECCNs to the 600 series ECCNs 

would have little effect on license 

exception availability for those items 

because existing restrictions or the 

terms of the license exceptions 

themselves already preclude most 

transactions that would be precluded by 

the July 15 and November 7 proposed 

amendments to § 740.2 of the EAR. 

However, BIS is aware of two situations 

(the use of License Exceptions GOV and 

STA) in which the movement of items 

from an 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, 

commodities classified under an 018 

ECCN may be exported under any 

provision of License Exception GOV to 

any 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. 

In this regard, note that, for the purpose 

of this proposed rule, military gas 

turbine engines and related items 

enumerated in proposed ECCN 9A619 

are ‘‘components,’’ rather than ‘‘end 

items.’’ 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 restriction 

currently applies to the use of License 

Exception STA for commodities 

classified under an 018 ECCN. In 

addition, the July 15 proposed rule 

would limit the shipment of 600 series 

ECCN items under License Exception 

STA to destinations listed in 

§ 740.20(c)(1). Currently, commodities 

classified under an 018 ECCN may be 

shipped under License Exception STA 

to destinations listed in § 740.20(c)(1) or 

(c)(2). 

Making U.S. Export Controls More 

Consistent With the Wassenaar 

Arrangement Munitions List Controls 

The Administration has stated, since 

the beginning of the Export Control 

Reform Initiative, that the reforms will 

be consistent with the obligations of the 

United States 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. 

Although including all military gas 

turbine engines transferred from the 

USML, or from an existing 018 ECCN, 

in a single 600 series ECCN (i.e., ECCN 

9A619) would deviate slightly from the 

WAML numbering approach, BIS 

believes that it would be more efficient 

to list all 600 series controls for engines 

and related items in one ECCN. If, 

however, the commenters disagree and 

would prefer that controls on engines be 

in the same USML, or CCL, Category as 

the ‘‘end-item’’ (such as an aircraft, 

vehicle, or vessel) for which they were 

designed or modified, BIS would 

consider any comments submitted to 

that effect, along with any comments 

submitted in favor of consolidating all 

600 series controls for gas turbine 

engines and related items in a single 

CCL Category. In addition, proposed 

ECCN 9A619 would correspond to a 

new USML Category XIX that the State 

Department would propose, which 

would control USML-controlled engines 

and related articles. The proposed ECCN 

9A619 tracks, to the extent possible, the 

wording of the WAML pertaining to 

military gas turbine engines and related 

items not subject to the ITAR. It also 

implements in 9A619.x the controls in 

WAML category 16 for forgings, 

castings, and other unfinished products; 

in 9B619.a the controls in WAML 

category 18 for production equipment; 

in 9D619 the applicable controls in 

WAML category 21 for software; and in 

9E619 the applicable controls in WAML 

category 22 for technology. 

Other Effects 

Pursuant to the framework identified 

in the July 15 proposed rule, 

commodities classified under ECCN 

9A619 (other than ECCN 9A619.y), 

along with related test inspection and 

production equipment, materials, 

software, and technology classified 

under ECCN 9B619, 9C619, 9D619 or 

9E619 (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 reasons, as described in 

§ 742.4(b)(1)—specifically, NS Column 1 

controls. All commodities in ECCN 

9A619 (other than those identified in 

9A619.y, which are controlled for AT 

Column 1 anti-terrorism reasons only 

and may also be subject to the 

prohibitions described in Part 744), 

along with related test, inspection and 

production equipment, materials, 

software and technology classified 

under ECCN 9B619, 9C619, 9D619 or 

9E619 (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. 

The July 15 proposed rule would 

change § 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). 


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76078 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 

Jurisdictional and Classification Status 

of Items Subject to Previous Commodity 

Jurisdiction Determinations 

The Administration recognizes that 

some items that would fall within the 

scope of the proposed new ECCNs will 

have been subject to commodity 

jurisdiction (CJ) determinations issued 

by the United States Department of 

State. The State Department will have 

either determined that the item was 

subject to the jurisdiction of the ITAR or 

that it was not. (See 22 CFR 120.3 and 

120.4). Under this proposed rule, items 

that the State Department determined to 

be not subject to the ITAR and that are 

not described on the CCL would be 

subject to the AT-only controls of the 

‘‘.y99’’ paragraph of a 600 series ECCN 

if they would otherwise be within the 

scope of the ECCN. Thus, for example, 

ECCN 9A619.x would control any part, 

component, accessory, or attachment 

not specifically identified in the USML 

or elsewhere in the ECCN if it was 

‘‘specially designed’’ for a gas turbine 

engine controlled by either ECCN 9A619 

or USML Category XIX. However, any 

part, component, accessory or 

attachment that was determined by 

commodity jurisdiction determination 

not to have been subject to the ITAR and 

is (as defined) ‘‘specially designed’’ for 

a gas turbine engine controlled under 

ECCN 9A619 or USML Category XIX 

would be controlled under 9A619.y.99 

if it is not identified elsewhere on the 

CCL. If the item was identified or, as a 

matter of law or the result of a 

subsequent commodity classification 

(‘‘CCATS’’) determination by 

Commerce, controlled by another legacy 

ECCN, such as 9A991.c, that ECCN 

would continue to apply to the item. 

This general approach will, pending 

public comment, be repeated in 

subsequent proposed rules pertaining to 

other categories of items. 

If, however, the State Department had 

made a commodity jurisdiction 

determination that a particular item was 

subject to the jurisdiction of ITAR but 

that item is not described on the final, 

implemented version of a revised USML 

category, a new commodity jurisdiction 

determination would not be required 

unless there is doubt about the 

application of the new USML category 

to the item. (See 22 CFR 120.4). Thus, 

unless there are doubts about the 

jurisdictional status of a particular item, 

exporters and reexporters would be 

entitled to rely on the revised USML 

categories when making jurisdictional 

determinations, notwithstanding past 

commodity jurisdiction determinations 

that, under the previous version of the 

USML, the item was ITAR controlled. 

Finally, if the State Department had 

made a commodity jurisdiction 

determination that a particular article 

was subject to the jurisdiction of the 

ITAR and that article remains in the 

revised USML, then the article would 

remain subject to the jurisdiction of the 

ITAR. 

Section-by-Section Description of the 

Proposed Changes 

• Supplement No. 4 to Part 740— 

Additional new Category 9 (600 series) 

ECCNs listed. 

• Section 742.6—ECCNs 9A619, 

9B619, 9C619, 9D619 and 9E619 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— 

Adds ECCNs 9A619, 9B619, 9C619, 

9D619 and 9E619. 

Request for Comments 

BIS seeks comments on this proposed 

rule. BIS will consider all comments 

received on or before January 20, 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 http:// 

www.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 Act, as appropriate and to the extent 

permitted by law, pursuant to Executive 

Order 13222. 

Regulatory 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 proposed rules 

published at 76 FR 41958 (July 15, 2011) 

and 76 FR 68675 (November 7, 2011), 

BIS believes that 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 number of license 

applications to be submitted to BIS 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. Other 

such items may become eligible for 

License Exception STA upon approval 

of a request submitted in conjunction 

with a license application. As stated in 

the July 15 and November 7 proposed 

rules, 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 @ 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 military gas turbine engines 


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and related parts, components, 

production equipment, materials, 

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 

military gas turbine engines currently in 

service 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 our 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 9E619 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 a regulatory flexibility 

analysis of 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 statute 

does not require the agency to prepare 

a regulatory flexibility analysis. 

Pursuant to section 605(b), the Chief 

Counsel for Regulation, Department of 

Commerce, 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 for the reasons 

explained below. Consequently, BIS has 

not prepared a regulatory flexibility 

analysis. A summary of the factual basis 

for the certification is provided below. 

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) would 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 

would become controlled on the 

Commerce Control List (CCL). Such 

items, along with certain military items 

that currently are on the CCL, would be 

identified in specific Export Control 

Classification Numbers (ECCNs) known 

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

some items currently on the Commerce 

Control List would move from existing 

ECCNs to the new 600 series ECCNs. In 

practice, the greatest impact of this rule 

on small entities would likely be 

reduced administrative costs and 

reduced delay for exports of items that 

are now on the USML but would 

become subject to the EAR. This rule 

focuses on military gas turbine engines 

and related articles currently controlled 

under USML Categories VI, VII, and 

VIII. Most operational military gas 

turbine engines currently in active 

inventory would remain on the USML. 

However, parts and components, which 

are more likely to be produced by small 

businesses than are complete engines, 

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 review by that department. 

Changing the jurisdictional status of 

USML 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 

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 may reduce the incentive 

for foreign manufacturers to refrain from 

purchasing U.S.-origin parts and 

components. 

Eight types of parts and components, 

identified in ECCN 9A619.y, would be 

designated immediately as parts and 

components that, even if specially 

designed for a military use, have little 

or no military significance. These parts 

and components, which under the ITAR 

require a license to nearly all 

destinations, would, under the EAR, 

require a license to only five 

destinations and, if destined for a 

military end use, to the People’s 

Republic of China. 

Many exports and reexports of the 

USML 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 United States Government 

agencies, shipments valued at less than 

$1,500, parts and components being 

exported for use as replacement parts, 

temporary exports, and License 


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76080 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 

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 United States 

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 impose 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 

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 UMSL 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 of determining 

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 maybe 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 would 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. There are no registration or 

application processing fees for 

applications to export items listed on 

the CCL. Once the ITAR-controlled 

items that are the subject to this 

rulemaking become subject to the EAR, 

entities currently applying for licenses 

from the Department of State would find 

their registration fees reduced if the 

number of ITAR 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 

entirely. 

De minimis treatment under the EAR 

would become available for all items 

that this rule would transfer from the 

USML to the CCL. Items subject to the 

ITAR 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. 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 increased burden imposed 

by those actions will 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. 

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. 

List of Subjects 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, parts 740, 742, and 774 of the 

Export Administration Regulations (15 

CFR parts 740–774) are proposed to be 

amended as follows: 

15 CFR PART 740—[AMENDED] 

1. The authority citation for 15 CFR 

part 740 continues to read as follows: 

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

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

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

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

Comp., p. 783; Notice of August 12, 2011, 76 

FR 50661 (August 16, 2011). 

2. Part 740 is amended by adding a 

Supplement No. 4 to read as follows: 


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Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 76081 

Supplement No. 4 to Part 740—600 

Series Items Subject to Limits 

Regarding License Exceptions GOV and 

STA 

This supplement lists certain parts and 

components that are classified under the .x 

paragraphs of ‘‘600 series’’ ECCNs and 

imposes limitations on the use of License 

Exceptions GOV (§ 740.11 of the EAR) and 

STA (§ 740.20 of the EAR) with respect to 

exports, reexports, and transfers (in-country) 

of ‘‘development’’ and ‘‘production’’ software 

or technology related to those parts and 

components. The restrictions and the parts 

and components are listed by Commerce 

Control List category. 

(a) Restrictions applicable to Category 9 

(ECCNs 9D610 and 9E610). License 

Exception STA may not be used to export, 

reexport, or transfer (in-country) ECCN 

9D610 ‘‘software’’ or ECCN 9E610 

‘‘technology’’ (other than ‘‘build-to-print 

technology’’) for the ‘‘development’’ or 

‘‘production’’ of any of the types of ‘‘parts’’ 

or ‘‘components’’ listed below. In addition, 

License Exception GOV may not be used to 

export or reexport ECCN 9D610 ‘‘software’’ or 

ECCN 9E610 ‘‘technology’’ (other than 

‘‘build-to-print technology’’) for the 

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

types of ‘‘parts’’ or ‘‘components’’ listed 

below, except with respect to exports, 

reexports, and transfers (in-country) to U.S. 

government agencies and personnel 

identified in § 740.11(b)(2)(i) and (ii). 

(1) Static structural members; 

(2) Exterior skins, removable fairings, nonremovable fairings, radomes, access doors 

and panels, and in-flight opening doors; 

(3) Control surfaces, leading edges, trailing 

edges, and leading edge flap seals; 

(4) Leading edge flap actuation system 

commodities (i.e., power drive units, rotary 

geared actuators, torque tubes, asymmetry 

brakes, position sensors, and angle 

gearboxes) ‘‘specially designed’’ for fighter, 

attack, or bomber aircraft controlled in USML 

Category VIII; 

(5) Engine inlets and ducting; 

(6) Fatigue life monitoring systems 

‘‘specially designed’’ to relate actual usage to 

the analytical or design spectrum and to 

compute amount of fatigue life ‘‘specially 

designed’’ for aircraft controlled by either 

USML subcategory VIII(a) or ECCN 9A610.a, 

except for Military Commercial Derivative 

Aircraft; 

(7) Landing gear, and ‘‘parts’’ and 

‘‘components’’ ‘‘specially designed’’ therefor, 

‘‘specially designed’’ for use in aircraft 

weighing more than 21,000 pounds 

controlled by either USML subcategory 

VIII(a) or ECCN 9A610.a, except for Military 

Commercial Derivative Aircraft; 

(8) Conformal fuel tanks and ‘‘parts’’ and 

‘‘components’’ ‘‘specially designed’’ therefor; 

(9) Electrical ‘‘equipment,’’ ‘‘parts,’’ and 

‘‘components’’ ‘‘specially designed’’ for 

electro-magnetic interference (EMI)—i.e., 

conducted emissions, radiated emissions, 

conducted susceptibility and radiated 

susceptibility—protection of aircraft that 

conform to the requirements of MIL–STD– 

461; 

(10) HOTAS (Hand-on Throttle and Stick) 

controls, HOCAS (Hands on Collective and 

Stick), Active Inceptor Systems (i.e., a 

combination of Active Side Stick Control 

Assembly, Active Throttle Quadrant 

Assembly, and Inceptor Control Unit), rudder 

pedal assemblies for digital flight control 

systems, and parts and components 

‘‘specially designed’’ therefor; 

(11) Integrated Vehicle Health Management 

Systems (IVHMS), Condition Based 

Maintenance (CBM) Systems, and Flight Data 

Monitoring (FDM) systems; 

(12) Equipment ‘‘specially designed’’ for 

system prognostic and health management of 

aircraft; 

(13) Active Vibration Control Systems; 

(14) Fuel Cells ‘‘specially designed’’ for use 

in UAV or Lighter-than-Air-Vehicles; or 

(15) Self-sealing fuel bladders ‘‘specially 

designed’’ to pass a .50 caliber or larger 

gunfire test (MIL–DTL–5578, MIL–DTL– 

27422). 

(b) Restrictions applicable to CCL Category 

9 (ECCNs 9D619 and 9E619). 

(1) Restrictions applicable to 9D619 and 

9E619, other than to ‘‘build-to-print 

technology.’’ License Exception STA may not 

be used to export, reexport, or transfer (incountry) ECCN 9D619 ‘‘software’’ or ECCN 

9E619 ‘‘technology’’ (other than ‘‘build-toprint technology’’) for the ‘‘development’’ or 

‘‘production’’ of any of the types of ‘‘parts’’ 

or ‘‘components’’ listed below. In addition, 

License Exception GOV may not be used to 

export or reexport ECCN 9D619 ‘‘software’’ or 

ECCN 9E619 ‘‘technology’’ (other than 

‘‘build-to-print technology’’) for the 

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

types of ‘‘parts’’ or ‘‘components’’ listed 

below, except with respect to exports, 

reexports, and transfers (in-country) to U.S. 

government agencies and personnel 

identified in § 740.11(b)(2)(i) and (b)(2)(ii). 

(i) Front, turbine center, and exhaust 

frames; 

(ii) Low pressure compressor (i.e., fan) 

‘‘components’’ and ‘‘parts’’ as follows: nose 

cones and casings; 

(iii) High pressure compressor 

‘‘components’’ and ‘‘parts’’ as follows: 

casings; 

(iv) Combustor ‘‘components’’ and ‘‘parts’’ 

as follows: casings, fuel nozzles, swirlers, 

swirler cups, deswirlers, valve injectors, and 

igniters; 

(v) High pressure turbine ‘‘components’’ 

and ‘‘parts’’ as follows: casings; 

(vi) Low pressure turbine ‘‘components’’ 

and ‘‘parts’’ as follows: casings; 

(vii) Augmentor ‘‘components’’ and ‘‘parts’’ 

as follows: casings, flame holders, spray bars, 

pilot burners, augmentor fuel controls, flaps 

(external, convergent, and divergent), guide 

and syncronization rings, and flame detectors 

and sensors; 

(viii) Mechanical ‘‘components’’ and 

‘‘parts’’ as follows: fuel metering units and 

fuel pump metering units, valves (fuel 

throttle, main metering, oil flow 

management), heat exchangers (air/air, fuel/ 

air, fuel/oil), debris monitoring (inlet and 

exhaust), seals (carbon, labyrinth, brush, 

balance piston, and ‘‘knife-edge’’), permanent 

magnetic alternator and generator, eddy 

current sensors; or 

(ix) Torquemeter assembly (i.e., housing, 

shaft, reference shaft, and sleeve). 

(2) Restrictions applicable to Category 

9D619 and 9E619, including ‘‘build-to-print 

technology.’’ License Exception STA may not 

be used to export, reexport, or transfer (incountry) ECCN 9D619 ‘‘software’’ or ECCN 

9E619 ‘‘technology’’ for the ‘‘development’’ 

or ‘‘production’’ of any of the types of ‘‘parts’’ 

or ‘‘components’’ listed below. In addition, 

License Exception GOV may not be used to 

export or reexport ECCN 9D619 ‘‘software’’ or 

ECCN 9E619 ‘‘technology’’ for the 

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

types of ‘‘parts’’ or ‘‘components’’ listed 

below, except with respect to exports, 

reexports, and transfers (in-country) to U.S. 

government agencies and personnel 

identified in § 740.11(b)(2)(i) and (b)(2)(ii). 

(i) Low pressure compressor (i.e., fan) 

‘‘components’’ and ‘‘parts’’ as follows: 

blades, vanes, spools, shrouds, blisks, shafts 

and disks; 

(ii) High pressure compressor 

‘‘components’’ and ‘‘parts’’ as follows: 

blades, vanes, spools, shrouds, blisks, shafts, 

disks, and impellers; 

(iii) Combustor ‘‘components’’ and ‘‘parts’’ 

as follows: diffusers, liners, chambers, 

cowlings, domes and shells; 

(iv) High pressure turbine ‘‘components’’ 

and ‘‘parts’’ as follows: shafts and disks, 

blades, vanes, nozzles, shrouds; 

(v) Low pressure turbine ‘‘components’’ 

and ‘‘parts’’ as follows: shafts and disks, 

blades, vanes, nozzles, shrouds; 

(vi) Digital engine controls (e.g., Full 

Authority Digital Engine Controls (FADEC) 

and Digital Electronic Engine Controls 

(DEEC)) ‘‘specially designed’’ for gas turbine 

engines controlled in this ECCN; or 

(vii) Engine monitoring systems (i.e., 

prognostics, diagnostics, and health) 

‘‘specially designed’’ for gas turbine engines 

and components controlled in this ECCN. 

15 CFR PART 742—[AMENDED] 

3. The authority citation for 15 CFR 

part 742 is revised 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). 

4. 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 


tkelley on DSK3SPTVN1PROD with PROPOSALS-1
76082 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 

EAR), a license is required to all 

destinations, except Canada, for items 

described on the CCL under ECCNs 

0A521; 0A606 (except 0A606.b and. y); 

0B521; 0B606 (except 0B606.y); 0C521; 

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

(except 0D606.y); 0E521; 0E606 (except 

0E606.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); 9A610 

(except 9A610.y); 9A619 (except 

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

9B619 (except 9B619.y); 9C610 (except 

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

9D610 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance 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] 

5. 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). 

6. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9A018 is revised to read as follows: 

Supplement No. 1 to Part 774—the 

Commerce Control List 

* * * * * 

9A018 Equipment on the Wassenaar 

Arrangement Munitions List. 

No items currently are in this ECCN. See 

ECCN 0A606.b.4 for the ground transport 

vehicles and unarmed all-wheel drive 

vehicles that, immediately prior to [Insert 

effective date of final rule that moves these 

vehicles], were classified under 9A018.b. See 

ECCN 9A610 for the aircraft, refuelers, 

ground equipment, parachute, harnesses, 

instrument flight trainers and parts and 

accessories and attachments for the forgoing 

that, immediately prior to [Insert effective 

date of final rule that moves these items], 

were classified under 9A018.a.1, .a.3, .c, .d, 

.e, or .f. See ECCN 9A619 for military trainer 

aircraft turbo prop engines and parts and 

components therefor that, immediately prior 

to [Insert effective date of final rule that 

moves these aircraft engines], were classified 

under ECCN 9A018.a.2 or .a.3. 

7. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9A619 between ECCNs 

9A120 and 9A980 to read as follows: 

Supplement No. 1 to Part 774—the 

Commerce Control List 

* * * * * 

9A619 Military gas turbine engines and 

related commodities. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

9A619.y.

NS Column 1. 

Control(s) Country chart 

RS applies to entire 

entry except 

9A619.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

LVS: $1,500. 

GBS: N/A. 

CIV: 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 ECCN 9A619. 

List of Items Controlled 

Unit: End items in number; parts, 

components, accessories and attachments 

in $ value. 

Related Controls: (1) Military gas turbine 

engines and related articles that are 

enumerated in USML Category XIX, and 

technical data (including software) directly 

related thereto, are subject to the 

jurisdiction of the International Traffic in 

Arms Regulations (ITAR). (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. ‘‘Military Gas Turbine Engines’’ 

‘‘specially designed’’ for a military use that 

are not controlled in USML Category XIX, 

paragraphs (a), (b) or (d). 

Note: For purposes of ECCN 9A619.a, the 

term ‘‘military gas turbine engines’’ means 

gas turbine engines ‘‘specially designed’’ for 

‘‘end items’’ enumerated in USML Category 

VI, VII, or VIII or on the CCL under ECCN 

9A610, ECCN 0A606, or the 600-series ECCN 

that would control vessels transferred from 

the USML to Category 8 of the CCL by a 

proposed rule that BIS plans to publish. 

b. Digital engine controls (e.g., Full 

Authority Digital Engine Controls (FADEC) 

and Digital Electronic Engine Controls 

(DEEC)) ‘‘specially designed’’ for gas turbine 

engines controlled in this ECCN 9A619. 

c. Hot Section components (i.e., 

combustors, turbine blades, vanes, nozzles, 

disks and shrouds) and related cooled 

components (i.e., cooled low pressure turbine 

blades, vanes, disks; cooled augmenters; and 

cooled nozzles) ‘‘specially designed’’ for gas 

turbine engines controlled in this ECCN 

9A619. The cowl, diffuser, dome, chamber 

and liners for the combustors are also 

controlled by this paragraph .c. 

Note: 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 9A619.c are controlled 

by ECCN 9A619.c. 

d. Engine monitoring systems (i.e., 

prognostics, diagnostics, and health) 

‘‘specially designed’’ for gas turbine engines 

and components controlled in this ECCN 

9A619. 

e. through w. [RESERVED] 


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

attachments’’ that are ‘‘specially designed’’ 

for a commodity controlled by this ECCN 

9A619 (other than ECCN 9A619.c) or a 

defense article enumerated in USML 

Category XIX and not specified elsewhere in 

the CCL or on the USML. 

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 9A619.x are controlled 

by ECCN 9A619.x. 

Note 2: ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ specified in 

USML subcategory XIX(f) are subject to the 

controls of that paragraph. ‘‘Parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ specified in ECCN 9A619.y are 

subject to the controls of that paragraph. 

y. Specific ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ ‘‘specially 

designed’’ for a commodity subject to control 

in this ECCN 9A619 or for a defense article 

in USML Category XIX and not elsewhere 

specified on the USML or in the CCL, and 

other aircraft commodities, as follows: 

y.1. Oil tank and reservoirs; 

y.2. Oil lines and tubes; 

y.3. Fuel lines and hoses; 

y.4. Fuel and oil filters; 

y.5. V–Band, cushion, ‘‘broomstick,’’ 

hinged, and loop clamps; 

y.6. Shims; 

y.7. Identification plates; 

y.8. Air, fuel, and oil manifolds 

y.9. to 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 

this ECCN 9A619. 

8. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9B619 between ECCNs 

9B117 and 9B990 to read as follows: 

9B619 Test, inspection, and production 

‘‘equipment’’ and related commodities 

‘‘specially designed’’ for the ‘‘development’’ 

or ‘‘production’’ of commodities enumerated 

in ECCN 9A619 or USML Category XIX. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

9B619.y.

NS Column 1. 

RS applies to entire 

entry except 

9B619.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

LVS: $1,500. 

GBS: N/A. 

CIV: 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 ECCN 9B619. 

List of Items Controlled 

Unit: N/A. 

Related Controls: N/A. 

Related Definitions: N/A. 

Items: 

a. Test, inspection, and production 

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

‘‘production,’’ ‘‘development,’’ repair, 

overhaul, or refurbishment of commodities 

enumerated in ECCN 9A619 (except for 

9A619.y) or in USML Category XIX, and 

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

attachments’’ ‘‘specially designed’’ therefor. 

b. Equipment, cells, or stands ‘‘specially 

designed’’ for testing, analysis and fault 

isolation of engines, systems, components, 

parts, accessories and attachments specified 

in ECCN 9A619 on the CCL or in Category 

XIX on the USML. 

c. through x. [RESERVED] 

y. Specific test, inspection, and production 

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

‘‘production’’ or ‘‘development’’ of 

commodities enumerated in ECCN 9A619 

(except for 9A619.y) or USML Category XIX 

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

attachments’’ ‘‘specially designed’’ therefor, 

as follows: 

y.1. Bearing puller. 

y.2. 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 

this ECCN 9B619. 

9. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9C619 immediately 

following ECCN 9C110 to read as 

follows: 

9C619 MATERIALS ‘‘SPECIALLY DESIGNED’’ FOR

COMMODITIES CONTROLLED BY 9A619 NOT

ELSEWHERE SPECIFIED IN THE CCL OR ON

THE USML. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire entry 

except 9C619.y.

NS Column 1. 

RS applies to entire entry 

except 9C619.y.

RS Column 1. 

AT applies to entire entry .. AT Column 1. 

License Exceptions 

LVS: $1,500. 

GBS: N/A. 

CIV: 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 ECCN 9C619. 

List of Items Controlled 

Unit: N/A 

Related Controls: (1) See USML subcategory 

XIII(f) for controls on structural materials 

specifically designed, developed, 

configured, modified, or adapted for 

defense articles, such as USML Category 

XIX engines. (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. Materials ‘‘specially designed’’ for 

commodities enumerated in ECCN 9A619 

(except for 9A619.y) not elsewhere specified 

in the CCL or on the USML. 

Note 1: Materials enumerated elsewhere in 

the CCL, such as in a CCL Category 1 ECCN, 

are controlled pursuant to the controls of the 

applicable ECCN. 

Note 2: Materials ‘‘specially designed’’ for 

both an engine enumerated in USML 

Category XIX and an engine enumerated in 

ECCN 9A619 are subject to the controls of 

this ECCN 9C619. 

b. to .x. [RESERVED] 

y. Specific materials ‘‘specially designed’’ 

for commodities enumerated in ECCN 9A619 

(except for 9A619.y), and ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ ‘‘specially designed’’ therefor, 

as follows: 

y.1. through y.98 [RESERVED] 

y.99. Materials 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 

this ECCN 9C619. 

10. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9D018 is revised to read as follows: 

9D018 ‘‘Software’’ for the ‘‘use’’ of 

equipment controlled by 9A018. 

No items currently are in this ECCN. See 

ECCN 0D606 for software related to ground 

transport vehicles and unarmed all-wheel 

drive vehicles that, immediately prior to 

[Insert effective date of final rule that moves 

these vehicles], were classified under 

9A018.b. See ECCN 9D610 for software 

related to aircraft, refuelers, ground 

equipment, parachute, harnesses, instrument 

flight trainers and parts and accessories and 

attachments for the forgoing that, 

immediately prior to [Insert effective date of 

final rule that moves these items], were 

classified under 9A018.a.1, .a.3, .c, .d, .e, or 

.f. See ECCN 9D619 for software related to 

military trainer aircraft turbo prop engines 

and parts and components therefor that, 

immediately prior to [Insert effective date of 

final rule that moves these aircraft engines], 

were classified under ECCN 9A018.a.2 or 

.a.3. 

11. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9D619 between ECCN 9D105 

and 9D990 to read as follows: 

9D619 Software ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 


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76084 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 

operation or maintenance of military 

gas turbine engines and related 

commodities controlled by 9A619, 

equipment controlled by 9B619, or 

materials controlled by 9C619. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire entry except for software ‘‘specially designed’’ for the ‘‘development,’’ ‘‘production,’’ operation, or maintenance of commodities controlled by 9A619.y, 9B619.y, or 9C619.y.NS Column 1. 

RS applies to entire entry except for software ‘‘specially designed’’ for the ‘‘development,’’ ‘‘production,’’ operation, or maintenance of commodities controlled by 9A619.y, 9B619.y, or 9C619.y.RS 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 software in ECCN 9D619. 

License Exceptions Note: Supplement No. 

4 to part 740 of the EAR precludes the use 

of License Exception GOV (other than those 

provisions authorizing exports and reexports 

to personnel and agencies for the U.S. 

government) and License Exception STA 

with respect to ‘‘development’’ and 

‘‘production’’ ‘‘software’’ for specific types of 

‘‘parts’’ and ‘‘components’’ controlled by 

ECCN 9A619.x. and identified in the 

Supplement. 

List of Items Controlled 

Unit: $ value. 

Related Controls: (1) Software directly related 

to articles enumerated in USML Category 

XIX is subject to the control of USML 

paragraph XIX(g). (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: 

Note: ‘‘Software’’ described in this ECCN 

9D619 that is not specified elsewhere on the 

CCL is controlled by this ECCN, even if it is 

also related to an article controlled on the 

USML, as specified in Category XIX(g). 

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

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

maintenance of commodities controlled by 

ECCN 9A619 (except 9A619.y), ECCN 9B619 

(except 9B619.y), or ECCN 9C619 (except 

9C619.y). 

b. to x. [RESERVED] 

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

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

operation, or maintenance of commodities 

enumerated in ECCN 9A619, 9B619, or 

9C619, as follows: 

y.1. Specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘development,’’ 

‘‘production,’’ operation, or maintenance of 

commodities enumerated in ECCN 9A619.y, 

9B619.y, or 9C619.y. 

y.2. 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 this ECCN 9D619. 

12. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9E018 is revised to read as follows: 

9E018 ‘‘Technology’’ for the 

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

of equipment controlled by 9A018. 

No items currently are in this ECCN. See 

ECCN 0E606 for technology related to ground 

transport vehicles and unarmed all-wheel 

drive vehicles that, immediately prior to 

[Insert effective date of final rule that moves 

these vehicles], were classified under 

9A018.b. See ECCN 9E610 for technology 

related to aircraft, refuelers, ground 

equipment, parachute, harnesses, instrument 

flight trainers and parts and accessories and 

attachments for the forgoing that, 

immediately prior to [Insert effective date of 

final rule that moves these items], were 

classified under 9A018.a.1, .a.3, .c, .d, .e, or 

.f. See ECCN 9E619 for technology related to 

military trainer aircraft turbo prop engines 

and parts and components therefor that, 

immediately prior to [Insert effective date of 

final rule that moves these aircraft engines], 

were classified under ECCN 9A018.a.2 or 

.a.3. 

13. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9E619 between ECCN 9E102 

and 9E990 to read as follows: 

9E619 ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

military gas turbine engines and related 

commodities controlled by 9A619, 

equipment controlled by 9B619, 

materials controlled by 9C619, or 

software controlled by 9D619. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire entry except ‘‘technology’’ ‘‘required’’ for the ‘‘development,’’ ‘‘production,’’ operation, installation, maintenance, repair, overhaul, or refurbishment of commodities controlled by ECCN 9A619.y, 9B619.y, or 9C619.y.NS Column 1. 

RS applies to entire entry except ‘‘technology’’ ‘‘required’’ for the ‘‘development,’’ ‘‘production,’’ operation, installation, maintenance, repair, overhaul, or refurbishment of commodities controlled by ECCN 9A619.y, 9B619.y, or 9C619.y.RS 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 technology in ECCN 9E619. 

License Exceptions Note: Supplement No. 

4 to part 740 of the EAR limits the use of 

License Exception GOV (other than those 

provisions authorizing exports and reexports 

to personnel and agencies for the U.S. 

government) and License Exception STA 

with respect to ‘‘development’’ and 

‘‘production’’ ‘‘technology’’ (other than 

‘‘build to print technology’’) for specific 

types of ‘‘parts’’ and ‘‘components’’ 

controlled by ECCN 9A619.x. and identified 

in the Supplement. In addition, Supplement 

No. 4 to part 740 precludes the use of License 

Exception GOV (other than those provisions 

authorizing exports and reexports to 

personnel and agencies for the U.S. 

government) or License Exception STA with 

respect to ‘‘development’’ and ‘‘production’’ 

‘‘technology’’ (including ‘‘build to print 

technology’’ and hot section ‘‘technology’’) 

for certain types of ‘‘parts’’ and 

‘‘components’’ controlled by ECCN 9A619.x, 

as specified in the Supplement. 

List of Items Controlled 

Unit: $ value. 

Related Controls: (1) Technical data directly 

related to articles enumerated in USML 

Category XIX are subject to the control of 

USML Category XIX(g). (2) See ECCN 

0A919 for foreign made ‘‘military 

commodities’’ that incorporate more than 

10% U.S.-origin ‘‘600 series’’ items. (3) 

Technology described in ECCN 9E003 is 

controlled by that ECCN. 

Related Definitions: N/A. 

Items: 

Note: ‘‘Technology’’ described in this 

ECCN 9E619 that is not specified elsewhere 


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Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Proposed Rules 76085 

on the CCL is controlled by this ECCN, even 

if it is also related to an article controlled on 

the USML, as specified in Category XIX(g). 

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

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

installation, maintenance, repair, overhaul, 

or refurbishment of items controlled by 

ECCN 9A619 (except 9A619.y), ECCN 9B619 

(except 9B619.y), ECCN 9C619 (except 

9C619.y), or ECCN 9D619 (except 9D619.y). 

b. through x. [RESERVED] 

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

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

installation, maintenance, repair, overhaul, 

or refurbishment of commodities controlled 

by ECCN 9A619, 9B619, or 9C619, or 

‘‘software’’ controlled by ECCN 9D619, as 

follows: 

y.1. Specific ‘‘technology’’ ‘‘required’’ for 

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

installation, maintenance, repair, overhaul, 

or refurbishment of commodities controlled 

by 9A619.y, 9B619.y, or 9C619.y, or 

‘‘software’’ controlled by ECCN 9D619.y. 

y.2. 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 

this ECCN 9E619. 

Dated: November 28, 2011. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–30978 Filed 12–5–11; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 742, 770 and 774 

[Docket No. 110310188–1621–02] 

RIN 0694–AF17 

Revisions to the Export Administration 

Regulations (EAR): Control of Military 

Vehicles and Related Items That the 

President Determines No Longer 

Warrant Control on the United States 

Munitions List 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Proposed rule. 

SUMMARY: The Bureau of Industry and 

Security publishes a third proposed rule 

that describes how articles the President 

determines no longer warrant control 

under Category VII (military vehicles 

and related articles) of the United States 

Munitions List (USML) would be 

controlled under the Commerce Control 

List (CCL). This proposed rule would repropose, with certain changes, five new 

Export Control Classification Numbers 

(ECCNs) on the Commerce Control List 

(CCL) that were proposed in a proposed 

rule published on July 15, 2011 (76 FR 

41958). The revised ECCNs in this 

proposed rule are the result of 

continued deliberations of the Bureau of 

Industry and Security, the Department 

of Defense and the Department of State 

and recommendations of commenters 

on the July 15 proposed rule. This 

proposed rule is being published in 

conjunction with a proposed rule by the 

Department of State, Directorate of 

Defense Trade Controls to remove from 

Category VII of the USML (22 CFR 

121.1, Category VII) articles that the 

President determines no longer warrant 

control on the USML. 

DATES: Comments must be received by 

January 20, 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– 

2011–0040. 

• By email directly to: 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF17 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–AF17. 

FOR FURTHER INFORMATION CONTACT: 

Gene Christiansen, Office of National 

Security and Technology Transfer 

Controls, 202 482 2984, 

gene.christiansen@bis.doc.gov. 

SUPPLEMENTARY INFORMATON: 

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) that set 

forth a framework for how articles 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 that proposed 

rule, BIS also described its proposal for 

how military vehicles and related 

articles in USML Category VII that no 

longer warrant controls under the USML 

would be controlled on the CCL. On 

November 7, 2011, BIS published a 

proposed rule (76 FR 68675)) that sets 

forth how aircraft and related items the 

President determines to no longer 

warrant control on the USML would be 

controlled on the CCL (herein, the 

aircraft proposed rule). In that proposed 

rule, BIS made several changes and 

additions to the framework proposed in 

the July 15 proposed rule. Following the 

structure of the July 15 proposed rule, 

as modified by the rule published on 

November 7, this proposed rule 

describes BIS’s revised proposal for how 

various military vehicles and related 

articles that are controlled by USML 

Category VII would be controlled on the 

CCL. 

The changes described in this 

proposed rule and the State 

Department’s proposed amendment to 

Category VII of the USML are based on 

a review of Category VII by the Defense 

Department, which worked with the 

Departments of State and Commerce in 

preparing the proposed amendments. 

The review was focused on identifying 

the types of articles that are now 

controlled by USML Category VII that 

either (i) Are inherently military and 

otherwise warrant control on the USML, 

or (ii) if of a type common to civil 

vehicles, possess parameters or 

characteristics that provide a critical 

military or intelligence advantage to the 

United States and that are almost 

exclusively available from the United 

States. For articles that satisfy one or 

both of those criteria, the review 

resulted in the article’s remaining on the 

USML. An article that did not satisfy 

either standard but was nonetheless a 

type of article that is, as a result of 

differences in form and fit, ‘‘specially 

designed’’ for military applications, 

would be identified in the new ECCNs 

proposed in this notice. 

The license requirements and other 

EAR-specific controls for such items 

also described in this notice would 

enhance national security by (i) 

Allowing for greater interoperability 

with our NATO and other allies while 

still maintaining and expanding robust 

controls and, in some cases, 

prohibitions on exports or reexports to 

other countries and for proscribed end 

users and end uses; (ii) enhancing our 

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 uses, and end users of greater 

concern than our 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 


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