6750 Federal Register / Vol. 78, No. 21 / Thursday, January 31, 2013 / Proposed Rules 

the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all 

information provided by EASA and 

determined the unsafe condition exists 

and is likely to exist or develop on other 

products of the same type design. This 

proposed AD would require a one-time 

ultrasonic C-scan inspection of LP 

compressor blades that had 

accumulated more than 2,500 flight 

cycles since new. 

Costs of Compliance 

We estimate that this proposed AD 

would affect 56 engines installed on 

airplanes of U.S. registry. We also 

estimate that it would take about 38 

hours per engine to comply with this 

proposed AD. The average labor rate is 

$85 per hour. Required parts cost is $0 

per engine. Based on these figures, we 

estimate the cost of the proposed AD on 

U.S. operators to be $180,880. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

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

DOT Regulatory Policies and Procedures 

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

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new AD: 

Rolls-Royce plc: Docket No. FAA–2012– 

1327; Directorate Identifier 2012–NE– 

47–AD. 

(a) Comments Due Date 

We must receive comments by April 1, 

2013. 

(b) Affected Airworthiness Directives (ADs) 

None. 

(c) Applicability 

This AD applies to all Rolls-Royce plc (RR) 

models RB211 Trent 768–60, 772–60, and 

772B–60 turbofan engines. 

(d) Reason 

This AD was prompted by low-pressure 

(LP) compressor blade partial airfoil release 

events. We are issuing this AD to prevent LP 

compressor blade airfoil separations, engine 

damage, and damage to the airplane. 

(e) Actions and Compliance 

Unless already done, do the following 

actions. 

(1) For LP compressor blades that, on the 

effective date of this AD, have accumulated 

or exceeded 2,500 flight cycles (FCs) since 

new, or since inspection in accordance with 

RR Non-Modification Service Bulletin 

(NMSB) RB.211–72–G702, dated May 23, 

2011, or since in-shop ultrasonic inspection 

in accordance with the Engine Manual, 

replace each LP compressor blade (either onwing or in-shop) with a blade eligible for 

installation, within 500 FCs after the effective 

date of this AD. 

(2) From the effective date of this AD, do 

not install on an engine any LP compressor 

blades that have been removed as required by 

paragraph (e)(1) of this AD, unless the LP 

compressor blades have passed the ultrasonic 

C-scan inspection in accordance with 

paragraphs 3.C. through 3.F. of the 

Accomplishment Instructions of RR NMSB 

RB.211–72–G872, Revision 1, dated July 2, 

2012 (or original issue dated April 3, 2012), 

as applicable. 

(f) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

FAA, may approve AMOCs for this AD. Use 

the procedures found in 14 CFR 39.19 to 

make your request. 

(g) Related Information 

(1) For more information about this AD, 

contact Robert Green, Aerospace Engineer, 

Engine Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

phone: 781–238–7754; fax: 781–238–7199; 

email: Robert.Green@faa.gov. 

(2) European Aviation Safety Agency, AD 

2012–0247, dated November 20, 2012, RR 

NMSB RB.211–72–G702, dated May 23, 2011, 

and RR NMSB RB.211–72–G872, dated July 

2, 2012 pertain to the subject of this AD. 

(3) For service information identified in 

this AD, contact Rolls-Royce plc, P.O. Box 

31, Derby DE24 8BJ, UK; phone: 44 (0) 1332 

242424; fax: 44 (0) 1332 249936. 

(4) You may view this service information 

at the FAA, Engine & Propeller Directorate, 

12 New England Executive Park, Burlington, 

MA. For information on the availability of 

this material at the FAA, call 781–238–7125. 

Issued in Burlington, Massachusetts, on 

January 25, 2013. 

Colleen M. D’Alessandro, 

Assistant Manager, Engine & Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. 2013–02077 Filed 1–30–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 774 

[Docket No. 120326218–2180–01] 

RIN 0694–AF56 

Revisions to the Export Administration 

Regulations (EAR): Articles the 

President Determines No Longer 

Warrant Control Under the U.S. 

Munitions List That Are Related To 

Launch Vehicles, Missiles, Rockets, 

and Military Explosive Devices 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule describes 

how articles the President determines 

no longer warrant control under the 

United States Munitions List (USML) 

Category IV would be controlled on the 


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Commerce Control List (CCL). These 

articles, which are related to launch 

vehicles, missiles, rockets, torpedoes, 

bombs, mines, and other military 

explosive devices enumerated in USML 

Category IV, would be controlled under 

new Export Control Classification 

Numbers (ECCNs) 0A604, 0B604, 

0D604, 0E604, 9A604, 9B604, 9D604, 

and 9E604 on the CCL. In addition, this 

proposed rule would amend ECCNs 

0D001, 0E001, 9B115, 9B116, 9D001, 

9D002, 9D003, 9D104, 9E001, 9E002, 

9E101, and 9E102 to make clarifications 

and conforming changes based on the 

proposed addition of the 

aforementioned 0x604 and 9x604 

ECCNs to the CCL and proposed 

amendments by the Department of State, 

Directorate of Defense Trade Controls, to 

the list of articles controlled by USML 

Category IV. 

This is one in a planned series of 

proposed rules describing how various 

types of articles that the President 

determines no longer warrant control on 

the USML, as part of the 

Administration’s Export Control Reform 

Initiative, would be controlled on the 

CCL in accordance with the 

requirements of the Export 

Administration Regulations (EAR). 

This proposed rule is being published 

in conjunction with a proposed rule 

from the Department of State, 

Directorate of Defense Trade Controls, 

which would amend the list of articles 

controlled by USML Category IV. The 

citations, herein, to USML Category IV 

reflect the proposed amendments 

contained in the State Department’s 

rule. The revisions proposed in this rule 

are part of Commerce’s retrospective 

review plan under EO 13563 completed 

in August 2011. Commerce’s full plan 

can be accessed at: http:// 

open.commerce.gov/news/2011/08/23/ 

commerce-plan-restrospective-analysisexisting-rules. 

DATES: Comments must be received by 

March 18, 2013. 

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– 

2013–0003. 

• By email directly to 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF56 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–AF56. 

FOR FURTHER INFORMATION CONTACT: 

Dennis Krepp, Nuclear and Missile 

Technology Controls Division, Office of 

Nonproliferation and Treaty 

Compliance, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Telephone: (202) 482–1309, Email: 

Dennis.Krepp@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) (hereinafter 

the ‘‘July 15 (framework) rule’’) that set 

forth a framework for how articles that 

the President determines, in accordance 

with section 38(f) of the Arms Export 

Control Act (AECA) (22 U.S.C. 2778(f)), 

would no longer warrant control on the 

United States Munitions List (USML), 

would be controlled on the Commerce 

Control List (CCL) in Supplement No. 1 

to Part 774 of the Export Administration 

Regulations (EAR). On November 7, 

2011, BIS published a rule (76 FR 

68675) (hereinafter the ‘‘November 7 

(aircraft) rule’’) proposing several 

changes to the framework initially 

proposed in the July 15 (framework) 

rule. On June 19, 2012, BIS published a 

rule (77 FR 36409) (hereinafter the 

‘‘June 19 (specially designed) rule’’) 

proposing revisions to the definition of 

‘‘specially designed’’ in order to 

provide, to the extent possible, a 

common definition of the term for use 

in both the EAR (e.g., in the CCL) and 

the International Traffic in Arms 

Regulations (ITAR). Most recently, on 

June 21, 2012, BIS published a rule (77 

FR 37524) (hereinafter the ‘‘June 21 

(transition) rule’’) proposing how the 

EAR would be amended to address the 

transition of control over items the 

President determines no longer warrant 

control on the USML. 

Following the structure of the July 15 

(framework) rule and the November 7 

(aircraft) rule, this proposed rule 

describes BIS’s proposal for controlling 

under the EAR and its CCL some articles 

related to launch vehicles, missiles, 

rockets, torpedoes, bombs, mines, other 

military explosive devices, and related 

articles, which currently are controlled 

under USML Category IV in the ITAR. 

The changes proposed in this rule and 

the State Department’s companion rule 

to Category IV of the USML are based 

on a review of this USML Category by 

the Defense Department, which worked 

with the Departments of State and 

Commerce in preparing the proposed 

amendments. The review focused on 

identifying the types of articles that are 

now controlled by USML Category IV 

that are either: (i) Inherently military 

and otherwise warrant control on the 

USML or (ii) of a type common to nonmilitary applications, possessing 

parameters or characteristics that 

provide a critical military or intelligence 

advantage to the United States, and 

almost exclusively available from the 

United States. If an article satisfies 

either or both of these criteria, the 

article remains on the USML. If an 

article does not satisfy either criterion, 

but is 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 proposed in this rule. 

The license requirements and other 

EAR-specific controls for such items, as 

described in this proposed rule, would, 

when considered in the context of the 

other proposed amendments to the 

USML and the CCL, enhance national 

security by: (i) Improving U.S. military 

interoperability with allied countries; 

(ii) strengthening the U.S. industrial 

base by, among other things, reducing 

incentives for foreign companies to 

design out and avoid U.S.-origin content 

and services; and (iii) allowing U.S. 

export control officials to focus 

government resources on transactions of 

more concern. 

Pursuant to section 38(f) of the AECA, 

the President shall review the USML ‘‘to 

determine what items, if any, no longer 

warrant export controls under’’ the 

AECA. The President must report the 

results of the review to Congress and 

wait 30 days before removing any such 

items from the USML. The report must 

‘‘describe the nature of any controls to 

be imposed on that item under any 

other provision of law.’’ 22 U.S.C. 

2778(f)(1). 

In the July 15 (framework) rule, BIS 

proposed creating a series of new 

ECCNs to control articles that would be 

moved from the USML to the CCL or 

items listed on the Wassenaar 

Arrangement Munitions List (WAML) 

that 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 


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items that are the same or similar to 

items in a particular ‘‘600 series’’ ECCN. 

In accordance with the format 

described above, this proposed rule 

would create four new ‘‘600 series’’ 

ECCNs in CCL Category 0 and four new 

‘‘600 series’’ ECCNs in CCL Category 9. 

In addition, this proposed rule would 

amend ECCNs 0D001, 0E001, 9B115, 

9B116, 9D001, 9D002, 9D003, 9D104, 

9E001, 9E002, 9E101, and 9E102 to 

make clarifications and conforming 

changes based on the proposed addition 

of the new 0x604 and 9x604 ECCNs to 

the CCL and proposed amendments by 

the State Department to the list of 

articles controlled by USML Category 

IV. 

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. 

All references to the USML in this 

rule are to the list of defense articles 

that are controlled for purposes of 

export, temporary import, or brokering 

pursuant to the ITAR, and not to the list 

of defense articles on the United States 

Munitions Import List (USMIL) that are 

controlled by the Bureau of Alcohol, 

Tobacco, Firearms and Explosives (ATF) 

for purposes of permanent import under 

its regulations at 27 CFR part 447. 

Pursuant to section 38(a)(1) of the 

AECA, all defense articles controlled for 

export or import, or that are subject to 

brokering controls, are part of the 

‘‘USML’’ under the AECA. For the sake 

of clarity, references to the USMIL are 

to the list of defense articles controlled 

by ATF for purposes of permanent 

import. All defense articles described in 

the USMIL or the USML are subject to 

the brokering controls administered by 

the U.S. Department of State in part 129 

of the ITAR. The transfer of defense 

articles from the ITAR’s USML to the 

EAR’s CCL, for purposes of export 

controls, does not affect the list of 

defense articles that are controlled on 

the USMIL under the AECA for 

purposes of permanent import or 

brokering controls. 

The revisions proposed in this rule 

are part of Commerce’s retrospective 

plan under EO 13563 completed in 

August 2011. Commerce’s full plan can 

be accessed at: http:// 

open.commerce.gov/news/2011/08/23/ 

commerce-plan-retrospective-analysisexisting-rules. 

Detailed Description of Changes 

Proposed by This Rule 

This proposed rule would create four 

new ‘‘600 series’’ ECCNs in CCL 

Category 0 (ECCNs 0A604, 0B604, 

0D604, and 0E604) and four new ‘‘600 

series’’ ECCNs in CCL Category 9 

(ECCNs 9A604, 9B604, 9D604, and 

9E604) that would clarify the EAR 

controls that apply to certain items the 

President determines no longer warrant 

control under the USML that are related 

to launch vehicles, missiles, rockets, 

torpedoes, bombs, mines, and other 

military explosive devices in USML 

Category IV. Terms such as ‘‘part’’ and 

‘‘component’’ and ‘‘accessories’’ and 

‘‘attachments’’ are applied in the same 

manner in this rule as those terms were 

defined or modified in the July 15 

(framework) rule and the June 19 

(specially designed) rule, respectively. 

New ECCN 0A604: Commodities Related 

to Military Explosive Devices and 

Charges 

In new ECCN 0A604, paragraph .a 

would control demolition blocks and 

detonators designed, modified, or 

adapted therefor. Paragraph .b of ECCN 

0A604 would control military explosive 

excavating devices. A note to 0A604.a 

and .b would indicate that this new 

ECCN would not control the detonators 

and other items described in ECCN 

1A007 or ECCN 3A232. Paragraph .c of 

ECCN 0A604 would control smoke hand 

grenades and stun hand grenades (e.g., 

‘‘flashbangs’’) not described in ECCN 

1A984. Paragraphs .d through .w of 

ECCN 0A604 would be reserved for 

possible future use. Paragraph .x of 

ECCN 0A604 would control ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ and 

‘‘attachments’’ that are ‘‘specially 

designed’’ for a commodity in 

paragraphs .a through .c of ECCN 

0A604, or a defense article in USML 

Category IV, and not specified 

elsewhere on the CCL or the USML. 

Two notes to paragraph .x would 

indicate that: (1) Forgings, castings, and 

other unfinished products are controlled 

by paragraph .x if they have reached a 

stage in manufacturing where they are 

clearly identifiable, by material 

composition, geometry, or function, as 

commodities specified in paragraph .x; 

and (2) ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ 

specified in USML Category IV(h) are 

subject to the controls of that paragraph. 

New ECCN 0B604: Test, Inspection, and 

Production ‘‘Equipment’’ and Related 

Commodities ‘‘Specially Designed’’ for 

Commodities in ECCN 0A604 or Related 

Defense Articles in USML Category IV 

In new ECCN 0B604, paragraph .a 

would control test, inspection, and 

other production ‘‘equipment’’ that is 

‘‘specially designed’’ for the 

‘‘production’’ or ‘‘development’’ of 

commodities in ECCN 0A604, or related 

defense articles controlled under USML 

Category IV, and not specified 

elsewhere on the CCL or the USML. 

Paragraphs .b through .w would be 

reserved for possible future use. 

Paragraph .x of ECCN 0B604 would 

control ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and attachments’’ that are 

‘‘specially designed’’ for a commodity 

subject to control in paragraph .a of 

ECCN 0B604. 

New ECCN 0D604: ‘‘Software’’ 

‘‘Specially Designed’’ for Commodities 

Controlled by ECCN 0A604 or 0B604 

ECCN 0D604.a would control 

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

‘‘development,’’ ‘‘production,’’ 

operation or maintenance of 

commodities controlled by ECCN 0A604 

or ECCN 0B604. Paragraph .b of ECCN 

0D604 would be reserved for future use. 

New ECCN 0E604: ‘‘Technology’’ 

‘‘Required’’ for Items Controlled by 

ECCN 0A604, 0B604, or 0D604 

ECCN 0E604.a would control 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishing of 

commodities controlled by ECCN 0A604 

or 0B604, or ‘‘software’’ controlled by 

ECCN 0D604. Paragraph .b of ECCN 

0E604 would be reserved for future use. 

New ECCN 9A604: Commodities Related 

to Launch Vehicles, Missiles, Rockets, 

Torpedoes, Bombs, and Mines 

In new ECCN 9A604, paragraph .a 

would control thermal batteries 

‘‘specially designed’’ for the systems 

described in USML Category IV that are 

capable of a range equal to or greater 

than 300 km. Paragraph .b of ECCN 

9A604 would control thermal batteries, 

except for thermal batteries controlled 

by ECCN 9A604.a, that are ‘‘specially 

designed’’ for the systems described in 

USML Category IV. Paragraph .c of 

ECCN 9A604 would control 

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

ramjet, scramjet, pulse jet, or combined 

cycle engines described in USML 

Category IV, including devices to 

regulate combustion in such 

commodities. Paragraph .d of ECCN 

9A604 would control components 


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‘‘specially designed’’ for hybrid rocket 

motors described in USML Category IV 

that are usable in rockets, missiles, or 

unmanned aerial vehicles capable of a 

range equal to or greater than 300 km. 

Paragraph .e of ECCN 9A604 would 

control ‘‘components’’ ‘‘specially 

designed’’ for pressure gain combustionbased propulsion systems controlled 

under USML Category IV. Paragraphs .f 

through .w of ECCN 9A604 would be 

reserved for possible future use. 

Paragraph .x of ECCN 9A604 would 

control ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ that 

are ‘‘specially designed’’ for a 

commodity in paragraphs .a through .d 

of ECCN 9A604, or a defense article in 

USML Category IV, and not specified 

elsewhere on the CCL or the USML. 

Two notes to paragraph .x would 

indicate that: (1) forgings, castings, and 

other unfinished products are controlled 

by paragraph .x if they have reached a 

stage in manufacturing where they are 

clearly identifiable, by material 

composition, geometry, or function, as 

commodities specified in paragraph .x; 

and (2) ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ 

specified in USML Category IV(h) are 

subject to the controls of that paragraph. 

New ECCN 9B604: Test, Inspection, and 

Production ‘‘Equipment’’ and Related 

Commodities ‘‘Specially Designed’’ for 

the ‘‘Development’’ or ‘‘Production’’ of 

Commodities in ECCN 9A604 or Related 

Defense Articles in USML Category IV 

In new ECCN 9B604, paragraph .a 

would control ‘‘production facilities’’ 

‘‘specially designed’’ for items that are 

controlled by USML Category IV(a)(1) or 

(a)(2). Paragraph .b of ECCN 9B604 

would control test, calibration, and 

alignment equipment ‘‘specially 

designed’’ for items that are controlled 

by USML Category IV(h)(28). Paragraph 

.c of ECCN 9B604 would control test, 

inspection, and other production 

‘‘equipment’’ that is ‘‘specially 

designed’’ for the ‘‘production’’ or 

‘‘development’’ of commodities 

described in ECCN 9A604, or related 

defense articles enumerated in USML 

Category IV, and not specified 

elsewhere on the CCL or the USML. 

Paragraph .d of ECCN 9B604 would 

control ‘‘specially designed’’ 

‘‘production facilities’’ or production 

‘‘equipment’’ for systems, sub-systems, 

and ‘‘components’’ controlled by USML 

Category IV(d)(1), (d)(7), (h)(1), (h)(4), 

(h)(6), (h)(7), (h)(8), (h)(9), (h)(11), 

(h)(20), (h)(21), (h)(26), or (h)(28). 

Paragraphs .e through .w would be 

reserved for possible future use. 

Paragraph .x of ECCN 9B604 would 

control ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ 

‘‘specially designed’’ for a commodity 

subject to control in paragraph .a or .b 

of ECCN 9B604. 

New ECCN 9D604: ‘‘Software’’ 

‘‘Specially Designed’’ for Commodities 

Controlled by ECCN 9A604 or 9B604 

ECCN 9D604.a would control 

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

‘‘development,’’ ‘‘production,’’ 

operation or maintenance of 

commodities controlled by ECCN 9A604 

or ECCN 9B604. Paragraph .b of ECCN 

9D604 would be reserved for future use. 

New ECCN 9E604: ‘‘Technology’’ 

‘‘Required’’ for Commodities Controlled 

by ECCN 9A604 or 9B604, or ‘‘Software’’ 

Controlled by ECCN 9D604 

ECCN 9E604.a would control 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishing of 

commodities or ‘‘software’’ controlled 

by ECCN 9A604, 9B604, or 9D604. 

Paragraph .b of ECCN 9E604 would be 

reserved for future use. 

Applicable Controls for New ‘‘600 

Series’’ ECCNs 

All items in the 0x604 and 9x604 

ECCNs, as proposed in this rule, would 

be subject to national security (NS 

Column 1) and regional stability (RS 

Column 1) controls, as well as 

antiterrorism (AT Column 1) controls. 

In addition, missile technology (MT 

Column 1) controls would apply to 

items described in: ECCN 9A604.a, .c, or 

.d; ECCN 9B604.a or .b or 9B604.d (for 

‘‘specially designed’’ ‘‘production 

facilities’’ or production ‘‘equipment’’ 

for defense articles identified as MTCR 

Annex items in USML Category IV(d)(1), 

(h)(1), (h)(4), (h)(6), (h)(7), (h)(8), (h)(9), 

(h)(11), (h)(20), (h)(21), or (h)(26)); 

‘‘software’’ described in ECCN 9D604.a 

for commodities controlled for MT 

reasons in ECCN 9A604 or 9B604; and 

‘‘technology’’ described in ECCN 

9E604.a for commodities and ‘‘software’’ 

controlled for MT reasons in ECCNs 

9A604, 9B604, or 9D604. 

Conforming Amendments to ECCNs 

0D001, 0E001, 9B115, 9B116, 9D001, 

9D002, 9D003, 9D104, 9E001, 9E002, 

9E101, and 9E102 

This proposed rule would amend 

ECCNs 0D001, 0E001, 9B115, 9B116, 

9D001, 9D002, 9D003, 9D104, 9E001, 

9E002, 9E101, and 9E102 to make 

clarifications and conforming changes 

based on both the addition of new ‘‘600 

series’’ ECCNs to CCL Categories 0 and 

9, as proposed in this rule, and the 

amendments to the list of defense 

articles controlled by USML Category IV 

that are contained in a proposed rule 

from the Department of State, 

Directorate of Defense Trade Controls 

(DDTC), which is being published in 

conjunction with this proposed rule 

from BIS. 

First, this proposed rule would amend 

the headings of ECCNs 0D001 and 

0E001 to exclude ‘‘software’’ and 

‘‘technology’’ for items in proposed new 

ECCN 0B604 from control under ECCNs 

0D001 and 0E001, because such 

‘‘software’’ and ‘‘technology’’ would be 

controlled under proposed new ECCNs 

0D604 and 0E604, respectively. In 

addition, the headings of ECCNs 9D001, 

9D002, 9D003, 9E001, and 9E002 would 

be amended to exclude ‘‘software’’ and 

‘‘technology’’ for items in proposed new 

ECCN 9B604 from control under these 

ECCNs, because such ‘‘software’’ and 

‘‘technology’’ would be controlled 

under proposed new ECCNs 9D604 and 

9E604, respectively. Furthermore, 

ECCNs 0B601, 0B602, 0B603, 0B606, 

0B614, 0B617, 0C617, and 9B610, which 

have already been published in 

proposed form by BIS as part of the 

Administration’s Export Control Reform 

Initiative, also would be excluded from 

the respective CCL Category 0 and 9 

‘‘software’’ and ‘‘technology’’ ECCNs 

indicated above. 

Second, this proposed rule would 

amend ECCNs 9D001, 9D002, 9D003, 

9D104, 9E001, 9E002, 9E101, and 9E102 

by removing from the headings of these 

ECCNs all references to the CCL 

Category 9 placeholder ECCNs that 

describe only items subject to the export 

licensing jurisdiction of DDTC. 

Furthermore, this proposed rule would 

amend the Related Controls paragraphs 

of the ECCNs indicated above to identify 

the items described in the placeholder 

ECCNs as subject to the export licensing 

jurisdiction of DDTC. 

Third, this proposed rule would 

amend ECCNs 9B115 and 9B116 by 

removing from the headings of these 

ECCNs all references to the CCL 

Category 9 placeholder ECCNs that 

describe only items subject to the export 

licensing authority of DDTC. These 

placeholder references would be 

replaced with references to the 

appropriate USML Category IV controls 

described in the State Department’s 

USML Category IV proposed rule, which 

is being published in conjunction with 

this BIS proposed rule. Specific USML 

categories would be referenced in the 

headings of ECCNs 9B115 and 9B116, 

because these ECCNs control ‘‘specially 

designed’’ ‘‘production equipment’’ and 

‘‘specially designed’’ ‘‘production 

facilities,’’ respectively, for certain 

USML Category IV defense articles, as 


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well as certain CCL Category 9 

commodities. 

These proposed conforming changes 

and clarifications also would eliminate 

perceived discrepancies in the current 

text of certain CCL Category 9 

‘‘software’’ and ‘‘technology’’ ECCNs. 

For example, the heading of ECCN 

9E102 currently includes ‘‘technology’’ 

for the ‘‘use’’ of space launch vehicles 

described in ECCN 9A004, while the 

Related Controls paragraph of ECCN 

9E102 indicates that such ‘‘technology’’ 

would be subject to the export licensing 

jurisdiction of DDTC. This proposed 

rule would amend the heading of ECCN 

9E102 to include ‘‘technology’’ for 

commodities described in ECCN 9A004 

(except for items that are subject to the 

ITAR, see 22 CFR part 121) and also 

amend the Related Controls paragraph 

in ECCN 9E102 to indicate that 

‘‘technology’’ for ECCN 9A004 (except 

for items that are subject to the EAR) is 

subject to the export licensing 

jurisdiction of DDTC. 

This proposed rule also would correct 

an error in the heading of ECCN 9E101, 

which currently indicates that this 

ECCN controls ‘‘development,’’ 

‘‘production,’’ and ‘‘use’’ ‘‘technology. 

In fact, such ‘‘use’’ ‘‘technology’’ is 

controlled under ECCN 9E102. 

Therefore, this proposed rule would 

amend the heading of ECCN 9E101 to 

remove the reference to ‘‘use’’ 

‘‘technology.’’ Furthermore, this 

proposed rule would amend the MT 

controls paragraphs in ECCNs 9E001 

and 9E002 to indicate that, in addition 

to the items already identified in these 

paragraphs, MT controls apply to 

‘‘technology’’ for equipment controlled 

by 9B115. However, the MT controls 

paragraph in 9E002 would no longer 

reference 9B117, because ‘‘production’’ 

‘‘technology’’ for 9B117 would not be 

controlled under ECCN 9E002, as 

indicated in the ECCN heading. 

Effects of This proposed rule 

BIS believes that the principal effect 

of this rule, when considered in the 

context of the other similar proposed 

rules being published as part of the 

Export Control Reform Initiative, will be 

to provide greater flexibility for exports 

and reexports to NATO member 

countries and other multiple-regimemember countries of items the President 

determines no longer warrant control on 

the USML. This greater flexibility would 

be in the form of: Application of the 

EAR’s de minimis threshold principle 

for items constituting less than a de 

minimis amount of controlled U.S.- 

origin content in foreign made items; 

availability of license exceptions, 

particularly License Exceptions 

‘‘Servicing and Replacement of Parts 

and Equipment’’ (RPL) and ‘‘Strategic 

Trade Authorization’’ (STA); 

elimination of the requirements for 

manufacturing license agreements and 

technical assistance agreements in 

connection with exports of technology; 

and a reduction in, or elimination of, 

exporter and manufacturer registration 

requirements and associated registration 

fees. Some of these specific effects are 

discussed in more detail below. 

De Minimis 

The June 21 (transition) rule would 

impose certain unique de minimis 

requirements on items controlled under 

the new ‘‘600 series’’ ECCNs. These 

requirements reflect, in part, further 

interagency deliberation, as well as a 

review of the comments that BIS 

received on the de minimis 

requirements in the July 15 (framework) 

rule. 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. Section 734.4 of the EAR 

indicates that the de minimis percentage 

may be either 10 percent or 25 percent, 

based on the destination. If the June 21 

(transition) rule’s proposal to amend 

Section 734.4 of the EAR is adopted, the 

new ECCNs 0A604, 0B604, 0D604, 

0E604, 9A604, 9B604, 9D604, and 

9E604 proposed in this rule would be 

subject to the de minimis provisions set 

forth in the June 21 (transition) rule. 

Under the proposed amendment to 

Section 734.4 of the EAR, there would 

be no eligibility for de minimis 

treatment for a foreign-made item that 

incorporates U.S.-origin ‘‘600 series’’ 

items when the foreign-made item is 

destined for a country subject to a U.S. 

arms embargo (i.e., Afghanistan, 

Belarus, Burma, China, Cote d’Ivoire, 

Cuba, Cyprus, Democratic Republic of 

Congo, Eritrea, Fiji, Haiti, Iraq, Iran, 

Lebanon, Liberia, Libya, North Korea, 

Somalia, Sri Lanka, Sudan, Syria, 

Venezuela, Vietnam, and Zimbabwe). 

This list of countries differs from the 

one contained in the June 21 (transition) 

rule in that Yemen would not be 

included, consistent with the State 

Department’s July 3, 2012, amendment 

to Section 126.1 of the ITAR (see 77 FR 

39392). For destinations that are not 

subject to a U.S. arms embargo, a 

foreign-made item that incorporates 

U.S.-origin ‘‘600 series’’ items would be 

eligible for de minimis treatment at the 

25 percent level (i.e., when the value of 

its U.S.-origin controlled content does 

not exceed 25 percent of foreign-made 

item’s value). In contrast, the AECA 

does not permit the ITAR to have a de 

minimis treatment for USML-listed 

items, regardless of the significance or 

insignificance of the U.S.-origin content 

or the percentage of U.S.-origin content 

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

when they are incorporated abroad into 

a foreign-made item, regardless of either 

of these factors). 

Use of License Exceptions 

The July 15 (framework) rule and the 

June 21 (transition) rule would impose 

certain restrictions on the use of license 

exceptions for items that would be 

controlled under the new ‘‘600 series’’ 

ECCNs on the CCL. For example, 

proposed § 740.2(a)(12) would make 

‘‘600 series’’ items that are destined for 

a country subject to a United States 

arms embargo ineligible for shipment 

under a license exception, except where 

authorized by License Exception TMP 

under § 740.9(a)(12) or License 

Exception BAG under § 740.14(b)(2), for 

exports to Afghanistan and Iraq, and by 

License Exception GOV under 

§ 740.11(b)(2)(ii). In addition, the use of 

License Exception GOV for ‘‘600 series’’ 

commodities would be limited to 

situations in which the United States 

Government is the consignee and enduser or to situations in which the 

consignee or end-user is the government 

of a country listed in § 740.20(c)(1). 

This rule proposes limited License 

Exception STA availability for the 

proposed new 0x604 and 9x604 ECCNs. 

None of these new ECCNs would be 

eligible for the STA ‘‘controls of lesser 

sensitivity’’ described in § 740.20(c)(2) 

of the EAR. Instead, STA eligibility for 

items controlled under proposed new 

ECCN 0A604, 0B604, 0D604, 0E604, 

9A604, 9B604, 9D604, or 9E604 would 

be limited to the destinations listed in 

§ 740.20(c)(1) of the EAR. In addition, 

License Exception STA would not be 

available for items controlled for MT 

reasons under proposed new ECCN 

9A604, 9B604, 9D604, or 9E604. 

Consistent with the July 15 

(framework) rule: (i) The use of License 

Exception STA for ‘‘end items’’ in ‘‘600 

series’’ ECCNs would be limited 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) 

‘‘end items’’ must be for ultimate end 

use by a foreign government agency of 

a type specified in the July 15 

(framework) rule. Under this proposed 

rule, otherwise eligible commodities 

controlled under proposed ECCN 

0A604, 0B604, 9A604, or 9B604 would 

not be subject to the STA eligibility 


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request and determination requirements 

described in § 740.20(g) of the EAR that 

apply to ‘‘end items’’ controlled under 

‘‘600 series’’ ECCNs. 

Furthermore, the July 15 (framework) 

rule 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. 

Items controlled under proposed 

ECCN 0B604 or 9B604 (except for 

9B604.a, .b, or .d items, controlled for 

MT reasons) also would be eligible for 

License Exception LVS (limited value 

shipments) up to a value of $1,500, TMP 

(temporary exports), and RPL (servicing 

and replacement parts). License 

Exceptions TMP and RPL also would be 

available for items controlled under new 

ECCN 0A604 or 9A604 (except for 

9A604.a, .c, or .d items, which are 

controlled for MT reasons and excluded 

from license exception eligibility). 

BIS believes that, even with the 

restrictions proposed by the July 15 

(framework) rule, the November 7 

(aircraft) rule, and the June 21 

(transition) rule 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 0A604, 0B604, 0D604, 0E604, 

9A604, 9B604, 9D604, or 9E604. 

Alignment With the Wassenaar 

Arrangement Munitions List 

Since the beginning of the Export 

Control Reform Initiative, the 

Administration has stated that the 

reforms will be consistent with the 

United States’ obligations to the 

multilateral export control regimes. 

Accordingly, the Administration will, in 

this and subsequent proposed rules, 

exercise its national discretion to 

implement, clarify, and, to the extent 

feasible, align its controls with those of 

the regimes. In this rule, proposed 

ECCNs 0A604 and 9A604 would 

implement, to the extent possible, the 

controls in WAML Category 4 for 

commodities related to launch vehicles, 

missiles, rockets, torpedoes, bombs, 

mines, and other military explosive 

devices and charges, and related 

equipment and accessories, and 

specially designed components therefor; 

proposed ECCNs 0B604 and 9B604 

would implement, to the extent 

possible, the controls in WAML 

Category 18 for related production 

equipment; proposed ECCNs 0D604 and 

9D604 would implement, to the extent 

possible, the controls in WAML 

Category 21 for related software; and 

proposed ECCNs 0E604 and 9E604 

would implement, to the extent 

possible, the controls in WAML 

Category 22 for related technology. 

Other Effects 

Pursuant to the framework identified 

in the July 15 (framework) rule, 

commodities in ECCN 0A604 or 9A604 

related to launch vehicles, missiles, 

rockets, torpedoes, bombs, mines, and 

other military explosive devices and 

charges; related test, inspection and 

production equipment classified under 

ECCN 0B604 or 9B604; related 

‘‘software’’ classified under ECCN 

0D604 or 9D604; and related 

‘‘technology’’ classified under ECCN 

0E604 or 9E604 would be subject to the 

licensing policies that apply to items 

controlled for NS reasons, as described 

in § 742.4(b)(1)—specifically, NS 

Column 1 controls. In addition, these 

same items would be subject to the 

regional stability licensing policies set 

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

Column 1. Furthermore, items described 

in ECCN 9A604.a, .c, or .d; related test, 

inspection and production equipment 

described in ECCN 9B604.a; ‘‘software’’ 

described in ECCN 9D604.a, for 

commodities controlled for MT reasons 

in ECCN 9A604 or 9B604; and 

‘‘technology’’ described in ECCN 

9E604.a, for commodities and 

‘‘software’’ controlled for MT reasons in 

ECCNs 9A604, 9B604, or 9D604, would 

be subject to the missile technology 

licensing policies set forth in 

§ 742.5(a)(1)—specifically, MT Column 

1 controls. 

The July 15 (framework) rule would 

amend § 742.4 to apply a general policy 

of denial to ‘‘600 series’’ items for 

destinations that are subject to a United 

States arms embargo. That policy would 

apply to all items controlled for NS 

reasons under this proposed rule. The 

November 7 (aircraft) 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 MT and RS 

reasons, but not for NS reasons (as 

would be the case for certain items 

affected by the November 7 (aircraft) 

rule). 

Request for Comments 

BIS seeks comments on this proposed 

rule. BIS will consider all comments 

received on or before March 18, 2013. 

All comments (including any personally 

identifying information or information 

for which a claim of confidentially is 

asserted either in those comments or 

their transmittal emails) will be made 

available for public inspection and 

copying. Parties who wish to comment 

anonymously may do so by submitting 

their comments via Regulations.gov, 

leaving the fields that would identify 

the commenter blank and including no 

identifying information in the comment 

itself. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

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

Notice of August 15, 2012, 77 FR 49699 

(August 16, 2012), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. BIS 

continues to carry out the provisions of 

the Export Administration Act, as 

appropriate and to the extent permitted 

by law, pursuant to Executive Order 

13222. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget (OMB). 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor is subject to a penalty 

for failure to comply with, a collection 

of information, subject to the 

requirements of the Paperwork 

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

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

information displays a currently valid 

OMB control number. This proposed 

rule would affect two approved 

collections: Simplified Network 

Application Processing System (control 

number 0694–0088), which includes, 

among other things, license 

applications, and License Exceptions 

and Exclusions (0694–0137). 


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As stated in the July 15 (framework) 

rule (76 FR 41958), BIS believes that the 

combined effect of all rules to be 

published adding items to the EAR that 

would be removed from the ITAR, as 

part of the Administration’s Export 

Control Reform Initiative, would 

increase the number of license 

applications to be submitted by 

approximately 16,000 annually, 

resulting in an increase in burden hours 

of 5,067 (16,000 transactions at 17 

minutes each) under control number 

0694–0088. 

Some items formerly on the USML 

would become eligible for License 

Exception STA under this rule. Items 

controlled under proposed ECCN 

0A604, 0B604, 0D604, or 0E604, and 

items controlled under proposed ECCN 

9A604, 9B604, 9D604, or 9E604 that are 

not controlled for MT reasons, would be 

eligible for certain parts of STA. In 

addition, eligible commodities 

controlled under proposed ECCN 

0A604, 0B604, 9A604, or 9B604 would 

not be subject to the STA eligibility 

request requirements described in 

§ 740.20(g) of the EAR. As stated in the 

July 15 (framework) rule, BIS believes 

that the increased use of License 

Exception STA, resulting from the 

combined effect of all rules to be 

published adding items to the EAR that 

would be removed from the ITAR as 

part of the administration’s Export 

Control Reform Initiative, would 

increase the burden associated with 

control number 0694–0137 by about 

23,858 hours (20,450 transactions at 1 

hour and 10 minutes each). 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. 

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 items related to launch 

vehicles, missiles, rockets, torpedoes, 

bombs, mines, and other military 

explosive devices, including related 

parts, components, production 

equipment, software, and technology. 

The reduction in burden hours would 

particularly impact exporters of parts 

and components that would no longer 

be subject to the ITAR. By contrast, most 

U.S. and foreign end items that are 

related to launch vehicles, missiles, 

rockets, torpedoes, bombs, mines, and 

other military explosive devices would 

continue to be subject to the ITAR. With 

few exceptions, the ITAR currently 

exempts from license requirements only 

exports to Canada, and, as a result, most 

exports to integrators of U.S. 

Government equipment and most 

exports of routine maintenance parts 

and components for NATO and other 

close allies require State Department 

authorization. In addition, the exports 

necessary to produce parts and 

components for defense articles in the 

inventories of the United States and its 

NATO and other close allies require 

State Department authorizations. Under 

the EAR, as proposed, a small number 

of low-level parts would not require a 

license to most destinations. Most other 

parts, components, accessories, and 

attachments would become eligible for 

export to NATO and other close allies 

under License Exception STA. 

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 0E604 or 9E604 are likely to be 

less complex and burdensome than the 

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

Manufacturing License Agreements and 

Technical Assistance Agreements. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Regulatory Flexibility Act 

(RFA), as amended by the Small 

Business Regulatory Enforcement 

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

601 et seq., generally requires an agency 

to prepare an initial regulatory 

flexibility analysis (IRFA) for any rule 

subject to the notice and comment 

rulemaking requirements under the 

Administrative Procedure Act (5 U.S.C. 

553) or any other statute, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Under section 605(b) of the RFA, 

however, if the head of an agency 

certifies that a rule will not have a 

significant impact on a substantial 

number of small entities, the RFA does 

not require the agency to prepare a 

regulatory flexibility analysis. Pursuant 

to section 605(b), the Chief Counsel for 

Regulation, Department of Commerce, 

certified to the Chief Counsel for 

Advocacy, Small Business 

Administration that this proposed rule, 

if promulgated, will not have a 

significant impact on a substantial 

number of small entities. 

Number of Small Entities 

BIS does not collect data on the size 

of entities that apply for and are issued 

export licenses. Although BIS is unable 

to estimate the exact number of small 

entities that would be affected by this 

rule, it acknowledges that this rule 

would affect some unknown number. 

Economic Impact 

This proposed rule is part of the 

Administration’s Export Control Reform 

Initiative. Under that initiative, the 

United States Munitions List (22 CFR 

part 121) (USML) will be revised to be 

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

use generic, catch-all controls on any 

part, component, accessory, attachment, 

or end item that was in any way 

specifically modified for a defense 

article, regardless of the article’s 

military or intelligence significance or 

non-military applications. At the same 

time, articles that are determined to no 

longer warrant control on the USML 

will become controlled on the 

Commerce Control List (CCL). Such 

items, along with certain military items 

that currently are on the CCL, will be 

identified in specific Export Control 

Classification Numbers (ECCNs) known 

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

some items currently on the CCL will 

move from existing ECCNs to the new 

‘‘600 series’’ ECCNs. 

This rule addresses certain 

equipment, and ‘‘software’’ and 

‘‘technology’’ therefor, that are related to 

launch vehicles, missiles, rockets, 

torpedoes, bombs, mines, and other 

military explosive devices currently 

enumerated in USML Category IV 

(Launch Vehicles, Guided Missiles, 

Ballistic Missiles, Rockets, Torpedoes, 

Bombs, and Mines). Most of this 

equipment would remain on the USML. 

However, parts and components for 

such equipment, which are more likely 

to be produced by small businesses than 

are complete systems, would in many 

cases become subject to the EAR, unless 

expressly controlled on the USML (e.g., 

items enumerated in ECCN 0A604.x or 

9A604.x). In addition, officials of the 

Department of State have informed BIS 


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that license applications for such parts 

and components are a high percentage 

of the license applications for USML 

articles reviewed by that department. 

Changing the jurisdictional status of 

certain Category IV 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. 

Moreover, parts and components that 

are controlled under the ITAR remain 

under ITAR control when incorporated 

into foreign-made items, regardless of 

the significance or insignificance of the 

item. This discourages foreign buyers 

from incorporating such U.S. content. 

The availability of de minimis treatment 

under the EAR, for those items that 

would no longer be controlled under the 

ITAR, may reduce the disincentive for 

foreign manufacturers to purchase U.S.- 

origin parts and components. 

Many exports and reexports of the 

Category IV articles that would be 

placed on the CCL by this rule, 

particularly parts and components, 

would become eligible for license 

exceptions that apply to shipments to 

U.S. Government agencies, parts and 

components being exported for use as 

replacement parts, temporary exports, 

limited value exports, and License 

Exception Strategic Trade Authorization 

(STA), reducing the number of licenses 

that exporters of these items would 

need. License exceptions under the EAR 

would allow suppliers to send routine 

replacement parts and low- level parts 

to NATO and other close allies and 

export control regime partners for use 

by those governments and for use by 

contractors building equipment for 

those governments or for the U.S. 

Government without having to obtain 

export licenses. Under License 

Exception STA, the exporter would 

need to furnish information about the 

item being exported to the consignee 

and obtain a statement from the 

consignee that, among other things, 

would commit the consignee to comply 

with the EAR and other applicable U.S. 

laws. Because such statements and 

obligations can apply to an unlimited 

number of transactions and have no 

expiration date, they would create a net 

reduction in burden on transactions that 

the government routinely approves 

through the license application process 

that the License Exception STA 

statements would replace. 

Even for exports and reexports for 

which a license would be required, the 

process would be simpler and less 

costly under the EAR. When a USML 

Category IV article is moved to the CCL, 

the number of destinations for which a 

license is required would remain 

unchanged. However, the burden on the 

license applicant would decrease 

because the licensing procedure for CCL 

items is simpler and more flexible that 

the license procedure for USML articles. 

Under the USML licensing procedure, 

an applicant must include a purchase 

order or contract with its application. 

There is no such requirement under the 

CCL licensing procedure. This 

difference gives the CCL applicant at 

least two advantages. First, the 

applicant has a way to determine 

whether the U.S. government will 

authorize the transaction before it enters 

into potentially lengthy, complex and 

expensive sales presentations or 

contract negotiations. Under the USML 

procedure, the applicant must caveat all 

sales presentations with a reference to 

the need for government approval, and 

is more likely to engage in substantial 

effort and expense only to find that the 

government will reject the application. 

Second, a CCL license applicant need 

not limit its application to the quantity 

or value of one purchase order or 

contract. It may apply for a license to 

cover all of its expected exports or 

reexports to a specified consignee over 

the life of a license (normally two years, 

but may be longer if circumstances 

warrant a longer period), thus reducing 

the total number of licenses for which 

the applicant must apply. 

In addition, many applicants 

exporting or reexporting items that this 

rule proposes to transfer from the USML 

to the CCL would realize cost savings 

through the elimination of some or all 

registration fees currently assessed 

under the USML’s licensing procedure. 

Currently, USML applicants must pay to 

use the USML licensing procedure even 

if they never actually are authorized to 

export. Registration fees for 

manufacturers and exporters of articles 

on the USML start at $2,250 per year, 

increase to $2,750 for organizations 

applying for one to ten licenses per year 

and further increase to $2,750 plus $250 

per license application (subject to a 

maximum of three percent of total 

application value) for those who need to 

apply for more than ten licenses per 

year. Conversely, there are no 

registration or application processing 

fees for applications to export items 

listed on the CCL. Once the Category IV 

items that are the subject to this 

rulemaking are removed from the USML 

and added to the CCL, entities currently 

applying for licenses from the 

Department of State would find their 

registration fees reduced if the number 

of USML licenses those entities need 

declines. If an entity’s entire product 

line is moved to the CCL, its ITAR 

registration and registration fee 

requirement would be eliminated. 

De minimis treatment under the EAR 

would become available for all items 

that this rule proposes to transfer from 

the USML to the CCL. Items subject to 

the ITAR will remain subject to the 

ITAR when they are incorporated 

abroad into a foreign-made product 

regardless of the percentage of U.S 

content in that foreign-made product. 

However, foreign-made products 

incorporating items that this rule would 

move to the CCL would be subject to the 

EAR only if their total controlled U.S.- 

origin content exceeds 25 percent, 

unless the foreign-made item is destined 

for a country subject to a U.S. arms 

embargo in which case there would be 

no eligibility for de minimis treatment. 

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. 

Conclusion 

BIS is unable to determine the precise 

number of small entities that would be 

affected by this rule. Based on the facts 

and conclusions set forth above, BIS 

believes that any burdens imposed by 

this rule would be offset by a reduction 

in the number of items that would 

require a license, increased 

opportunities for use of license 

exceptions for exports to certain 

countries, simpler export license 

applications, reduced or eliminated 

registration fees and application of a de 

minimis threshold for foreign-made 

items incorporating U.S.-origin parts 

and components, which would reduce 

the incentive for foreign buyers to 

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

For these reasons, the Chief Counsel for 

Regulation of the Department of 

Commerce certified to the Chief Counsel 

for Advocacy of the Small Business 

Administration that this rule, if adopted 

in final form, would not have a 

significant economic impact on a 

substantial number of small entities. 

Accordingly, no IRFA is required, and 

none has been prepared. 

List of Subjects in 15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, part 774 of the Export 

Administration Regulations (15 CFR 


sroberts on DSK5SPTVN1PROD with 
6758 Federal Register / Vol. 78, No. 21 / Thursday, January 31, 2013 / Proposed Rules 

parts 730–774) are proposed to be 

amended as follows: 

15 CFR PART 774—[AMENDED] 

■ 1. 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 15, 2012, 77 

FR 49699 (August 16, 2012). 

■ 2. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

add a new ECCN 0A604 between ECCNs 

0A018 and 0A918 to read as follows: 

Supplement No. 1 to Part 774—the 

Commerce Control List 

* * * * * 

0A604 Commodities related to military 

explosive devices and charges. 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

RS Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

LVS: N/A 

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 this ECCN 0A604. 

List of Items Controlled 

Unit: End items in number; parts, 

components, accessories and attachments 

in $ value. 

Related Controls: (1) Smoke bombs, nonirritant smoke flares, canisters, grenades 

and charges, and other pyrotechnical 

articles having both military and 

commercial applications are controlled by 

ECCN 1A984. (2) Certain explosive 

detonator firing sets, electrically driven 

explosive detonators, and detonators and 

multipoint initiation systems are 

controlled by ECCN 1A007 or ECCN 

3A232. (3) See ECCN 0A919 for foreignmade ‘‘military commodities’’ that that 

incorporate more than a de minimis 

amount of U.S.-origin ‘‘600 series’’ 

controlled content. 

Related Definitions: N/A 

Items: 

a. Demolition blocks and detonators 

designed, modified, or adapted therefor. 

b. Military explosive excavating devices. 

Note to 0A604.a and .b: This entry does 

not control the detonators and other items 

described in ECCN 1A007 or ECCN 3A232. 

c. Smoke hand grenades and stun hand 

grenades (e.g., ‘‘flashbangs’’) not controlled 

by ECCN 1A984. 

d. through w. [RESERVED] 

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

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for a commodity subject to control 

in paragraphs .a through .c of this ECCN, or 

a defense article controlled under USML 

Category IV, and not specified elsewhere on 

the CCL or the USML. 

Note 1 to 0A604.x: 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 0A604.x, 

are controlled by ECCN 0A604.x. 

Note 2 to 0A604.x: ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ specified 

in USML Category IV(h) are subject to the 

controls of that paragraph. 

■ 3. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

add a new ECCN 0B604 between ECCNs 

0B006 and 0B986 to read as follows: 

0B604 Test, inspection, and production 

‘‘equipment’’ and related commodities 

‘‘specially designed’’ for the 

‘‘development’’ or ‘‘production’’ of 

commodities in ECCN 0A604 or related 

defense articles in USML Category IV. 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

RS Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

LVS: $1500 

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 this ECCN 0B604. 

List of Items Controlled 

Unit: $ value 

Related Controls: See ECCN 9B604, which 

controls test, inspection, and production 

‘‘equipment’’ and related commodities 

‘‘specially designed’’ for the 

‘‘development’’ or ‘‘production’’ of 

commodities in ECCN 9A604 or related 

defense articles in USML Category IV. 

Related Definitions: N/A 

Items: 

a. Test, inspection, and other production 

‘‘equipment’’ that are ‘‘specially designed’’ 

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

commodities controlled by ECCN 0A604, or 

related defense articles controlled under 

USML Category IV, and not specified 

elsewhere in the CCL or the USML. 

b. through w. [RESERVED] 

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

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for a commodity subject to control 

in paragraph .a of this ECCN. 

■ 4. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

ECCN 0D001 is amended by revising the 

heading of the ECCN to read as follows: 

0D001 ‘‘Software’’ specially designed or 

modified for the ‘‘development,’’ 

‘‘production,’’ or ‘‘use’’ of items 

described in ECCN 0A001 or 0A002, 0B 

(except for ECCNs 0B601, 0B602, 0B603, 

0B604, 0B606, 0B614, 0B617, 0B986 and 

0B999), or 0C (except for ECCN 0C617). 

* * * * * 

■ 5. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

add a new ECCN 0D604 between ECCNs 

0D001 and 0D999 to read as follows: 

0D604 ‘‘Software’’ ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation or maintenance of 

commodities controlled by ECCN 0A604 

or 0B604. 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

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 item in this ECCN 0D604. 

List of Items Controlled 

Unit: $ value 

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

related to articles enumerated in USML 

Category IV is controlled under USML 

Category IV(i). (2) See ECCN 0A919 for 

foreign-made ‘‘military commodities’’ that 

incorporate more than a de minimis 

amount of U.S.-origin ‘‘600 series’’ 

controlled content. 

Related Definitions: N/A 

Items: 

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

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

maintenance of commodities controlled by 

ECCN 0A604 or 0B604. 

b. [RESERVED] 


sroberts on DSK5SPTVN1PROD with 
Federal Register / Vol. 78, No. 21 / Thursday, January 31, 2013 / Proposed Rules 6759 

■ 6. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

ECCN 0E001 is amended by revising the 

heading of the ECCN to read as follows: 

0E001 ‘‘Technology,’’ according to the 

Nuclear Technology Note, for the 

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

of items described in ECCN 0A001 or 

0A002, 0B (except for ECCNs 0B601, 

0B602, 0B603, 0B604, 0B606, 0B614, 

0B617, 0B986 and 0B999), 0C (except for 

ECCN 0C617), or ECCN 0D001. 

* * * * * 

■ 7. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

add a new ECCN 0E604 between ECCNs 

0E018 and 1E918 to read as follows: 

0E604 ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishing of 

commodities controlled by ECCN 0A604 

or 0B604, or ‘‘software’’ controlled by 

ECCN 0D604. 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

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 item in this ECCN 0E604. 

List of Items Controlled 

Unit: N/A 

Related Controls: Technical data directly 

related to articles enumerated in USML 

Category IV are controlled under USML 

Category IV(i). 

Related Definitions: N/A 

Items: 

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

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

installation, maintenance, repair, overhaul, 

or refurbishing of commodities controlled by 

ECCN 0A604 or 0B604, or ‘‘software’’ 

controlled by ECCN 0D604. 

b. [RESERVED] 

■ 8. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9A604 between ECCNs 

9A120 and 9A980 to read as follows: 

9A604 Commodities related to launch 

vehicles, missiles, rockets, torpedoes, 

bombs, and mines. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

RS Column 1 

MT applies to 

9A604.a, .c, and .d.

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

LVS: N/A 

GBS: N/A 

CIV: N/A 

STA: (1) License Exception STA is not 

available for items in this ECCN 9A604 that 

are controlled for MT reasons (see 

§ 740.20(b)(2)(iii) of the EAR). (2) 

Paragraph (c)(2) of License Exception STA 

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

for any item in this ECCN 9A604. 

List of Items Controlled 

Unit: End items in number; parts, 

components, accessories and attachments 

in $ value. 

Related Controls: (1) Launch vehicles, 

missiles, rockets, torpedoes, bombs, and 

mines are subject to the ITAR (See 22 CFR 

§ 121.1, USML Category IV). (2) See ECCN 

0A919 for foreign-made ‘‘military 

commodities’’ that incorporate more than a 

de minimis amount of U.S.-origin ‘‘600 

series’’ controlled content. 

Related Definitions: N/A 

Items: 

a. Thermal batteries ‘‘specially designed’’ 

for systems controlled under USML Category 

IV capable of a range equal to or greater than 

300 km. 

b. Thermal batteries, except for thermal 

batteries controlled by 9A604.a, that are 

‘‘specially designed’’ for systems controlled 

under USML Category IV. 

c. ‘‘Components’’ ‘‘specially designed’’ for 

ramjet, scramjet, pulse jet, or combined cycle 

engines controlled under USML Category IV, 

including devices to regulate combustion in 

such commodities. 

d. ‘‘Components’’ ‘‘specially designed’’ for 

hybrid rocket motors controlled under USML 

Category IV usable in rockets, missiles, or 

unmanned aerial vehicles capable of a range 

equal to or greater than 300 km. 

e. ‘‘Components’’ ‘‘specially designed’’ for 

pressure gain combustion-based propulsion 

systems controlled under USML Category IV. 

f. through w. [RESERVED] 

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

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for a commodity subject to control 

in paragraphs .a through .d of this ECCN, or 

a defense article controlled under USML 

Category IV, and not specified elsewhere on 

the CCL or the USML. 

Note 1 to 9A604.x: 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 9A604.x, 

are controlled by ECCN 9A604.x. 

Note 2 to 9A604.x: ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ specified 

in USML Category IV(h) are subject to the 

controls of that paragraph. 

■ 9. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9B115 is amended by revising the 

heading of the ECCN and by revising the 

‘‘Related Controls’’ paragraph in the List 

of Items Controlled to read as follows: 

9B115 ‘‘Specially designed’’ production 

‘‘equipment’’ for systems, sub-systems 

and ‘‘components’’ controlled by ECCN 

9A101 or by USML Category IV(d)(2), 

(d)(3), (d)(4), or (h)(17). 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) Although items 

described in USML Category IV(d)(2), 

(d)(3), (d)(4), or (h)(17) are subject to the 

export licensing authority of the 

Department of State, Directorate of Defense 

Trade Controls (22 CFR part 121), the 

production ‘‘equipment’’ controlled in this 

entry that is related to these items is 

subject to the export licensing authority of 

BIS. (2) ‘‘Specially designed’’ production 

‘‘equipment’’ for systems, sub-systems, and 

‘‘components’’ described in USML 

Category IV(d)(1), (d)(7), (h)(1), (h)(4), 

(h)(6), (h)(7), (h)(8), (h)(9), (h)(11), (h)(20), 

(h)(21), (h)(26), or (h)(28) are controlled by 

ECCN 9B604. 

Related Definitions: * * * 

Items: * * * 

■ 10. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9B116 is amended by revising the 

heading of the ECCN and by revising the 

‘‘Related Controls’’ paragraph in the List 

of Items Controlled to read as follows: 

9B116 ‘‘Specially designed’’ ‘‘production 

facilities’’ for systems, sub-systems, and 

‘‘components’’ controlled by ECCN 

9A012 or 9A101 or by USML Category 

IV(d)(2), (d)(3), (d)(4), or (h)(17). 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) Although items 

described in USML Category IV(d)(2), 

(d)(3), (d)(4), or (h)(17) are subject to the 

export licensing authority of the 

Department of State, Directorate of Defense 

Trade Controls (22 CFR part 121), the 

‘‘production facilities’’ controlled in this 

entry that are related to these items is 

subject to the export licensing authority of 

BIS. (2) ‘‘Specially designed’’ ‘‘production 

facilities’’ for systems, sub-systems, and 

‘‘components’’ described in USML 

Category IV(d)(1), (d)(7), (h)(1), (h)(4), 

(h)(6), (h)(7), (h)(8), (h)(9), (h)(11), (h)(20), 

(h)(21), (h)(26), or (h)(28) are controlled by 

ECCN 9B604. 


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6760 Federal Register / Vol. 78, No. 21 / Thursday, January 31, 2013 / Proposed Rules 

Related Definitions: * * * 

Items: * * * 

■ 11. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9B604 between ECCNs 

9B117 and 9B990 to read as follows: 

9B604 Test, inspection, and production 

‘‘equipment’’ and related commodities 

‘‘specially designed’’ for the 

‘‘development’’ or ‘‘production’’ of 

commodities in ECCN 9A604 or related 

defense articles in USML Category IV. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

RS Column 1 

MT applies to 

9B604.a and .b 

and to 9B604.d 

‘‘specially designed’’ ‘‘production 

facilities’’ or production ‘‘equipment’’ for defense 

articles identified 

as MTCR Annex 

items in USML Category IV(d)(1), 

(h)(1), (h)(4), (h)(6), 

(h)(7), (h)(8), (h)(9), 

(h)(11), (h)(20), 

(h)(21), or (h)(26).

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

LVS: $1,500 

GBS: N/A 

CIV: N/A 

STA: (1) License Exception STA is not 

available for items in this ECCN 9B604 that 

are controlled for MT reasons (see 

§ 740.20(b)(2)(iii) of the EAR). (2) 

Paragraph (c)(2) of License Exception STA 

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

for any item in this ECCN 9B604. 

List of Items Controlled 

Unit: $ value. 

Related Controls: (1) ‘‘Production facilities’’ 

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

commodities enumerated in ECCN 9A012 

or 9A101 or in USML Category IV(d)(2), 

(d)(3), (d)(4), or (h)(17) are controlled by 

ECCN 9B116. (2) Test, inspection, and 

other production ‘‘equipment’’ ‘‘specially 

designed’’ for the ‘‘production’’ or 

‘‘development’’ of commodities 

enumerated in ECCN 9A101 or in USML 

Category IV(d)(2), (d)(3), (d)(4), or (h)(17) 

are controlled by ECCN 9B115. 

Related Definitions: N/A 

Items: 

a. ‘‘Production facilities’’ ‘‘specially 

designed’’ for items that are controlled by 

USML Category IV(a)(1) or (a)(2). 

b. Test, calibration, and alignment 

equipment ‘‘specially designed’’ for items 

that are controlled by USML Category 

IV(h)(28). 

c. Test, inspection, and other production 

‘‘equipment’’ that is ‘‘specially designed’’ for 

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

commodities described in ECCN 9A604, or 

defense articles controlled under USML 

Category IV, and not specified elsewhere on 

the CCL or the USML. 

d. ‘‘Specially designed’’ ‘‘production 

facilities’’ or production ‘‘equipment’’ for 

systems, sub-systems, and ‘‘components’’ 

controlled by USML Category IV(d)(1), (d)(7), 

(h)(1), (h)(4), (h)(6), (h)(7), (h)(8), (h)(9), 

(h)(11), (h)(20), (h)(21), (h)(26), or (h)(28). 

e. through w. [RESERVED] 

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

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for a commodity subject to control 

in paragraph .a or .b of this ECCN. 

■ 12. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9D001 is amended by revising the ECCN 

heading, by revising the MT controls 

paragraph in the License Requirements 

section, and by revising the Related 

Controls paragraph in the List of Items 

Controlled to read as follows: 

9D001 ‘‘Software’’ specially designed or 

modified for the ‘‘development’’ of 

equipment or ‘‘technology’’ controlled 

by ECCN 9A001 to 9A004 (except for 

items in 9A004 that are subject to the 

ITAR, see 22 CFR part 121), 9A012, 

9A101 (except for items in 9A101.b that 

are subject to the ITAR, see 22 CFR part 

121), 9A106.d. or .e, 9A110, or 9A120, 

9B (except for ECCNs 9B604, 9B610, 

9B619, 9B990, and 9B991), or ECCN 

9E003. 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

* * * * * 

MT applies to ‘‘software’’ for equipment controlled by 

9B116 for MT reasons.

MT Column 1 

* * * * * 

License Requirements Notes: * * * 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: ‘‘Software’’ that is 

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

specified in ECCNs 9A004 (except for 

items that are subject to the EAR), 9A005 

to 9A011, 9A101.b (except for items that 

are subject to the EAR), 9A103 to 9A105, 

9A106.a, .b, and .c, 9A107 to 9A109, 

9A110 (for items that are ‘‘specially 

designed’’ for use in missile systems and 

subsystems), and 9A111 to 9A119 is 

subject to the export licensing authority of 

the U.S. Department of State, Directorate of 

Defense Trade Controls (see 22 CFR part 

121). 

Related Definitions: * * * 

Items: * * * 

■ 13. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9D002 is amended by revising the ECCN 

heading, by revising the NS controls 

paragraph in the License Requirements 

section, and by revising the Related 

Controls paragraph in the List of Items 

Controlled to read as follows: 

9D002 ‘‘Software’’ specially designed or 

modified for the ‘‘production’’ of 

equipment controlled by ECCN 9A001 to 

9A004 (except for items in 9A004 that 

are subject to the ITAR, see 22 CFR part 

121), 9A012, 9A101 (except for items in 

9A101.b that are subject to the ITAR, see 

22 CFR part 121), 9A106.d or .e, 9A110, 

or 9A120, 9B (except for ECCNs 9B604, 

9B610, 9B619, 9B990, and 9B991). 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

NS applies to ‘‘software’’ for equipment controlled by 

9A001 to 9A003, 

9A012, and 9B001 

to 9B010..

NS Column 1 

* * * * * 

License Requirements Notes: * * * 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: ‘‘Software’’ that is 

‘‘required’’ for the ‘‘production’’ of items 

specified in ECCNs 9A004 (except for 

items that are subject to the EAR), 9A005 

to 9A011, 9A101.b (except for items that 

are subject to the EAR), 9A103 to 9A105, 

9A106.a, .b, and .c, 9A107 to 9A109, 

9A110 (for items that are ‘‘specially 

designed’’ for use in missile systems and 

subsystems), and 9A111 to 9A119 is 

subject to the export licensing authority of 

the U.S. Department of State, Directorate of 

Defense Trade Controls (see 22 CFR part 

121). 

Related Definitions: * * * 

Items: * * * 

■ 14. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9D003 is amended by revising the ECCN 

heading and by revising the Related 

Controls paragraph in the List of Items 

Controlled to read as follows: 

9D003 ‘‘Software’’ incorporating 

‘‘technology’’ specified by ECCN 9E003.h 

and used in ‘‘FADEC Systems’’ for 

propulsion systems controlled by ECCN 

9A001 to 9A004 (except for items in 

9A004 that are subject to the ITAR, see 

22 CFR part 121), 9A101 (except for 


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items in 9A101.b that are subject to the 

ITAR, see 22 CFR part 121), 9A106.d or 

.e, or 9B (except for ECCNs 9B604, 

9B610, 9B619, 9B990, and 9B991). 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) See also 9D103. (2) 

‘‘Software’’ ‘‘required’’ for the ‘‘use’’ of 

equipment specified in ECCNs 9A004 

(except for items that are subject to the 

EAR), 9A005 to 9A011, 9A101.b (except for 

items that are subject to the EAR), 9A103 

to 9A105, 9A106.a, .b, and .c, 9A107 to 

9A109, 9A110 (for items that are ‘‘specially 

designed’’ for use in missile systems and 

subsystems), and 9A111 to 9A119 is 

subject to the export licensing authority of 

the U.S. Department of State, Directorate of 

Defense Trade Controls (see 22 CFR part 

121). (3) ‘‘Software’’ ‘‘required’’ for the 

‘‘use’’ of ‘‘technology’’ subject to the export 

licensing authority of the U.S. Department 

of State, Directorate of Defense Trade 

Controls is also subject to the same 

licensing jurisdiction (see 22 CFR part 

121). 

Related Definitions: * * * 

Items: * * * 

■ 15. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9D104 is amended by revising the 

heading of the ECCN and by revising the 

Related Controls paragraph in the List of 

Items Controlled to read as follows: 

9D104 ‘‘Software’’ specially designed or 

modified for the ‘‘use’’ of equipment 

controlled by ECCN 9A001, 9A012 (for 

MT controlled items only), 9A101 

(except for items in 9A101.b that are 

subject to the ITAR, see 22 CFR part 

121), or 9A106.d. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: ‘‘Software’’ for 

commodities specified in ECCNs 9A005 to 

9A011, 9A103 to 9A105, 9A101.b (except 

for items that are subject to the EAR), 

9A106.a, .b, and .c, 9A107 to 9A109, 

9A111, 9A115 to 9A118 is subject to the 

export licensing authority of the U.S. 

Department of State, Directorate of Defense 

Trade Controls (see 22 CFR part 121). 

Related Definitions: * * * 

Items: * * * 

■ 16. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9D604 between ECCNs 

9D105 and 9D990 to read as follows: 

9D604 ‘‘Software’’ ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation or maintenance of 

commodities controlled by ECCN 9A604 

or 9B604. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1 

RS applies to entire 

entry.

RS Column 1 

MT applies to ‘‘software,’’ as described in paragraph .a of this 

entry, for commodities controlled for 

MT reasons in 

ECCN 9A604 or 

9B604.

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

License Exceptions 

CIV: N/A 

TSR: N/A 

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

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

used for any item in this ECCN 9D604. 

List of Items Controlled 

Unit: $ value 

Related Controls: (1) Software directly related 

to articles enumerated in USML Category 

IV is controlled under USML Category 

IV(i). (2) See also ECCNs 9D101 and 9D104 

for controls on ‘‘software’’ for the ‘‘use’’ of 

missiles and related commodities. (3) See 

ECCN 0A919 for foreign-made ‘‘military 

commodities’’ that incorporate more than a 

de minimis amount of U.S.-origin ‘‘600 

series’’ controlled content. 

Related Definitions: N/A 

Items: 

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

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

maintenance of commodities controlled by 

ECCN 9A604 or ECCN 9B604. 

b. [RESERVED] 

■ 17. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9E001 is amended by revising the ECCN 

heading, by revising the MT controls 

paragraph in the License Requirements 

section, and by revising the Related 

Controls paragraphs in the List of Items 

Controlled to read as follows: 

9E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ of equipment or 

‘‘software’’, controlled by ECCN 

9A001.b, 9A004 (except for items in 

9A004 that are subject to the ITAR, see 

22 CFR part 121), or 9A012, 9B (except 

for ECCNs 9B604, 9B610, 9B619, 9B990, 

and 9B991), or ECCN 9D001 to 9D004, 

9D101, or 9D104. 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

Control(s) Country chart 

* * * * * 

MT applies to ‘‘technology’’ for equipment controlled by 

9B001, 9B002, 

9B003, 9B004, 

9B005, 9B007, 

9B105, 9B106, 

9B115, 9B116, 

9B117, 9D001, 

9D002, 9D003, or 

9D004 for MT reasons.

MT Column 1 

* * * * * 

License Requirements Notes: * * * 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) See also 9E101 and 

1E002.f (for controls on ‘‘technology’’ for 

the repair of controlled structures, 

laminates or materials). (2) ‘‘Technology’’ 

required for the ‘‘development’’ of 

equipment described in ECCNs 9A004 

(except for items that are subject to the 

EAR), 9A005 to 9A011 or ‘‘software’’ 

described in ECCNs 9D103 and 9D105 is 

subject to the export licensing authority of 

the U.S. Department of State, Directorate of 

Defense Trade Controls (see 22 CFR part 

121). 

Related Definitions: * * * 

Items: * * * 

■ 18. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9E002 is amended by revising the ECCN 

heading, by revising the MT controls 

paragraph in the License Requirements 

section, and by revising the Related 

Controls paragraphs in the List of Items 

Controlled to read as follows: 

9E002 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘production’’ of ‘‘equipment’’ controlled 

by ECCN 9A001.b, 9A004 (except for 

items in 9A004 that are subject to the 

ITAR, see 22 CFR part 121) or 9B 

(except for ECCNs 9B117, 9B604, 9B610, 

9B619, 9B990, and 9B991). 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

* * * * * 

MT applies to ‘‘technology’’ for equipment controlled by 

9B001, 9B002, 

9B003, 9B004, 

9B005, 9B007, 

9B105, 9B106, 

9B115, or 9B116 

for MT reasons.

MT Column 1 


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Control(s) Country chart 

* * * * * 

License Requirements Notes: * * * 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) See also 9E102. (2) 

See also 1E002.f for ‘‘technology’’ for the 

repair of controlled structures, laminates or 

materials. (3) ‘‘Technology’’ that is required 

for the ‘‘production’’ of equipment described 

in ECCNs 9A004 (except for items that are 

subject to the EAR) or 9A005 to 9A011 is 

subject to the export licensing authority of 

the U.S. Department of State, Directorate of 

Defense Trade Controls (see 22 CFR part 

121). 

Related Definitions: * * * 

Items: * * * 

■ 19. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9E101 is amended by revising the 

heading of the ECCN and by revising the 

‘‘Related Controls’’ paragraph in the List 

of Items Controlled to read as follows: 

9E101 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of 

commodities or ‘‘software’’ controlled 

by ECCN 9A012, 9A101 (except for items 

in 9A101.b that are subject to the ITAR, 

see 22 CFR part 121), 9A106.d or .e, 

9A110 (for items that are ‘‘specially 

designed’’ for non-military unmanned 

air vehicles controlled by 9A012), 

9C110, 9D101, or 9D104. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: ‘‘Technology’’ that is 

required for items specified in ECCNs 

9A101.b (except for items that are subject 

to the EAR), 9A104, 9A105, 9A106.a, .b, 

and .c, 9A107 to 9A109, 9A110 (for items 

that are ‘‘specially designed’’ for use in 

missile systems and subsystems), 9A111, 

9A115 to 9A119, 9D103, and 9D105 is 

subject to the export licensing authority of 

the U.S. Department of State, Directorate of 

Defense Trade Controls (see 22 CFR part 

121). 

Related Definitions: * * * 

Items: * * * 

■ 20. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, ECCN 

9E102 is amended by revising the 

heading of the ECCN and by revising the 

‘‘Related Controls’’ paragraph in the List 

of Items Controlled to read as follows: 

9E102 ‘‘Technology’’ according to the 

General Technology Note for the ‘‘use’’ 

of commodities or ‘‘software’’ controlled 

by ECCN 9A004 (except for items in 

9A004 that are subject to the ITAR, see 

22 CFR part 121), 9A012, 9A101 (except 

for items in 9A101.b that are subject to 

the ITAR, see 22 CFR part 121), 9A106.d 

or .e, 9A110 (for items that are 

‘‘specially designed’’ for non-military 

unmanned air vehicles controlled by 

9A012), 9B105, 9B106, 9B115, 9B116, 

9D101, or 9D104. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: (1) For the purpose of this 

entry, ‘‘use’’ ‘‘technology’’ is limited to 

items controlled for MT and their 

subsystems. (2) ‘‘Technology’’ for items 

specified in ECCNs 9A004 (except for 

items that are subject to the EAR), 9A005 

to 9A011, 9A101.b (except for items that 

are subject to the EAR), 9A104, 9A105, 

9A106.a, .b and .c, 9A107 to 9A109, 9A110 

(for items that are ‘‘specially designed’’ for 

use in missile systems and subsystems), 

9A111, 9A115 to 9A119, 9D103, and 9D105 

is subject to the export licensing authority 

of the U.S. Department of State, Directorate 

of Defense Trade Controls (see 22 CFR part 

121). 

Related Definitions: * * * 

Items: * * * 

■ 21. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, add a 

new ECCN 9E604 between ECCNs 

9E102 and 9E990 to read as follows: 

9E604 ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishing of 

commodities controlled by ECCN 9A604 

or 9B604, or ‘‘software’’ controlled by 

ECCN 9D604. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire entry ..... NS Column 1 

RS applies to entire entry ..... RS Column 1 

MT applies to ‘‘technology,’’ 

as described in paragraph 

.a of this entry, for commodities and ‘‘software’’ 

controlled for MT reasons 

in ECCN 9A604, 9B604 or 

9D604.

MT Column 1 

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

License Exceptions 

CIV: N/A 

TSR: N/A 

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

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

used for any item in this ECCN 9E604. 

List of Items Controlled 

Unit: $ value 

Related Controls: (1) Technical data directly 

related to articles enumerated in USML 

Category IV is controlled under USML 

Category IV(i). (2) See also ECCNs 9E002, 

9E101, and 9E102 for controls on 

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

‘‘production,’’ and ‘‘use’’ of missiles and 

related items controlled on the CCL. 

Related Definitions: N/A 

Items: 

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

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

installation, maintenance, repair, overhaul, 

or refurbishing of commodities controlled by 

ECCN 9A604 or 9B604, or ‘‘software’’ 

controlled by ECCN 9D604. 

b. [RESERVED] 

Dated: January 18, 2013. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2013–01904 Filed 1–30–13; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Parts 1, 16, 106, 110, 112, 114, 

117, 120, 123, 129, 179, and 211 

[Docket Nos. FDA–2011–N–0920 and FDA– 

2011–N–0921] 

Food and Drug Administration Food 

Safety Modernization Act: Proposed 

Rules To Establish Standards for the 

Growing, Harvesting, Packing, and 

Holding of Produce for Human 

Consumption and for Current Good 

Manufacturing Practice and Hazard 

Analysis and Risk-Based Preventive 

Controls for Human Food; Public 

Meeting 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Notification of public meeting. 

SUMMARY: The Food and Drug 

Administration (FDA) is announcing a 

public meeting to discuss the proposed 

rules to establish standards for the 

growing, harvesting, packing, and 

holding of produce for human 

consumption (the produce safety 

proposed rule) and for current good 

manufacturing practice and hazard 

analysis and risk-based preventive 

controls for human food (the preventive 

controls proposed rule), which are the 

first of several proposed rules that 

would establish the foundation of, and 

central framework for, the modern food 

safety system envisioned by Congress in 

the FDA Food Safety Modernization Act 

(FSMA). The purpose of the public 

meeting is to solicit oral stakeholder and 

public comments on the proposed rules 

and to inform the public about the 

rulemaking process (including how to 

submit comments, data, and other 

information to the rulemaking dockets), 

and to respond to questions about the 

proposed rules. 


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