Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Proposed Rules 76653 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 71 as 

follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9U, 

Airspace Designations and Reporting 

Points, dated August 18, 2010, and 

effective September 15, 2010, is 

amended as follows: 

Paragraph 2006 United States Area 

Navigation Routes. 

* * * * * 

Q–134 DUGLE to VOAXA [New] 

DUGLE ........................................................... FIX ................................................................. (Lat. 37°51′54′′ N., long. 120°40′04′′ W.) 

TATOO .......................................................... WP ................................................................. (Lat. 38°19′42′′ N., long. 117°16′50′′ W.) 

JULIK ............................................................. FIX ................................................................. (Lat. 39°09′11′′ N., long. 112°31′33′′ W.) 

HERSH ........................................................... WP ................................................................. (Lat. 39°30′46′′ N., long. 109°59′07′′ W.) 

VOAXA .......................................................... FI .................................................................... (Lat. 39°47′18′′ N., long. 106°31′58′′ W.) 

Q–136 OAL to VOAXA [New] 

OAL ................................................................ VORTAC ........................................................ (Lat. 38°00′12′′ N., long. 117°46′14′′ W.) 

RUMPS .......................................................... WP ................................................................. (Lat. 38°07′10′′ N., long. 117°16′15′′ W.) 

KATTS ........................................................... WP ................................................................. (Lat. 38°20′00′′ N., long. 116°20′00′′ W.) 

WEEMN ......................................................... WP ................................................................. (Lat. 39°21′57′′ N., long. 109°58′03′′ W.) 

VOAXA .......................................................... FIX ................................................................. (Lat. 39°47′18′′ N., long. 106°31′58′′ W.) 

Q–138 ILA to ABR [New] 

ILA ................................................................. VORTAC ........................................................ (Lat. 39°04′16′′ N., long. 122°01′38′′ W.) 

FIMUV ........................................................... WP ................................................................. (Lat. 39°49′05′′ N., long. 120°11′17′′ W.) 

JENSA ............................................................ WP ................................................................. (Lat. 40°11′36′′ N., long. 119°13′27′′ W.) 

PUHGI ............................................................ WP ................................................................. (Lat. 40°47′38′′ N., long. 117°45′32′′ W.) 

ROOHZ .......................................................... WP ................................................................. (Lat. 41°14′12′′ N., long. 116°12′58′′ W.) 

PARZZ ........................................................... WP ................................................................. (Lat. 41°36′15′′ N., long. 115°02′10′′ W.) 

UROCO .......................................................... WP ................................................................. (Lat. 42°51′52′′ N., long. 110°50′25′′ W.) 

RICCO ............................................................ WP ................................................................. (Lat. 43°48′29′′ N., long. 107°02′30′′ W.) 

MOTLY .......................................................... WP ................................................................. (Lat. 44°45′50′′ N., long. 102°25′43′′ W.) 

ABR ................................................................ VOR/DME ...................................................... (Lat. 45°25′02′′ N., long. 098°22′07′′ W.) 

Q–121 PARZZ to TOUGH [New] 

PARZZ ........................................................... WP ................................................................. (Lat. 41°36′15′′ N., long. 115°02′10′′ W.) 

PIH ................................................................. VORTAC ........................................................ (Lat. 42°52′13′′ N., long. 112°39′08′′ W.) 

TOUGH .......................................................... WP ................................................................. (Lat. 46°13′58′′ N., long. 105°12′52′′ W.) 

Q–123 PARZZ to COKEE [New] 

PARZZ ........................................................... WP ................................................................. (Lat. 41°36′15′′ N., long. 115°02′10′′ W.) 

COKEE ........................................................... WP ................................................................. (Lat. 47°22′25′′ N., long. 106°51′49′′ W.) 

Q–125 PARZZ to WLLES [New] 

PARZZ ........................................................... WP ................................................................. (Lat. 41°36′15′′ N., long. 115°02′10′′ W.) 

WLLES ........................................................... WP ................................................................. (Lat. 48°57′33′′ N., long. 110°08′18′′ W.) 

Issued in Washington, DC, December 2, 

2010. 

Edith V. Parish, 

Manager, Airspace Regulation and ATC 

Procedures Group. 

[FR Doc. 2010–31002 Filed 12–8–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 732, 738, 740, 743, 758, 

and 774 

[Docket No. 100923470–0569–01] 

RIN 0694–AF03 

Export Control Modernization: 

Strategic Trade Authorization License 

Exception 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would add 

a new license exception to the Export 

Administration Regulations (EAR). The 

exception would allow exports, 

reexports and transfers (in-country) of 

specified items to destinations that pose 

little risk of unauthorized use of those 

items. To provide assurance against 

diversion to unauthorized destinations, 

transactions under this license 

exception would be subject to 

notification, destination control 

statement and consignee statement 

requirements. This proposed rule is part 

of the Administration’s Export Control 

Reform Initiative undertaken as a result 

of the fundamental review of the U.S. 

export control system announced by the 

President in August 2009. 

DATES: Comments must be received by 

BIS no later than February 7, 2011. 

ADDRESSES: Comments on this rule may 

be submitted to the Federal rulemaking 

portal (http://www.regulations.gov). The 

regulations.gov ID for this rule is: BIS– 

2010–0038. Comments may also be 


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76654 Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Proposed Rules 

submitted via e-mail to 

publiccomments.bis.doc.gov or on paper 

to Regulatory Policy Division, Bureau of 

Industry and Security, Room 2705, U.S. 

Department of Commerce, Washington, 

DC 20230. Please refer to RIN 0694– 

AF03 in all comments and in the subject 

line of e-mail comments. 

FOR FURTHER INFORMATION CONTACT: 

William Arvin, Regulatory Policy 

Division, Bureau of Industry and 

Security, warvin@bis.doc.gov or 202– 

482–2440. 

SUPPLEMENTARY INFORMATION: 

Background 

In August 2009, the President directed 

a broad-based interagency review of the 

U.S. export control system with the goal 

of strengthening national security and 

the competitiveness of key U.S. 

manufacturing and technology sectors 

by focusing on current threats and 

adapting to the changing economic and 

technological landscape. The review 

determined that the current export 

control system is overly complicated, 

contains too many redundancies, and, 

in trying to protect too much, 

diminishes our ability to focus our 

efforts on the most critical national 

security priorities. See, e.g., October 30, 

2010 press release by the White House, 

Office of the Press Secretary at http:// 

www.whitehouse.gov/the-press-office/ 

2010/08/30/president-obama-laysfoundation-a-new-export-controlsystem-strengthen-n. 

As a result, the Administration has 

begun the Export Control Reform 

Initiative, which will fundamentally 

reform the U.S. export control system. 

The Export Control Reform Initiative is 

designed to enhance U.S. national 

security and strengthen the United 

States’ ability to counter threats such as 

the proliferation of weapons of mass 

destruction. The Administration 

determined that fundamental reform is 

needed in each of the export control 

system’s four component areas with 

transformation to a single control list, a 

single licensing agency, a single 

information technology system, and a 

single primary enforcement 

coordination agency. The 

Administration is implementing the 

reform in three phases. The first two 

phases build toward the third phase of 

the single control list, licensing agency, 

information technology system, and 

enforcement coordination agency. 

Under this approach, new criteria for 

determining what items need to be 

controlled and a common set of policies 

for determining when an export license 

is required will be implemented. The 

control list criteria will be based on 

transparent rules, which will reduce the 

uncertainty faced by our allies, U.S. 

industry, and its foreign partners, and 

will allow the government to erect 

higher walls around the most sensitive 

items in order to enhance national 

security. 

A New License Exception To Begin a 

More Precise Focus 

This proposed rule would implement 

one part of the reform initiative. It 

would revise licensing policies by 

creating a new license exception for 

transactions involving certain items 

subject to the Export Administration 

Regulations (EAR) to certain 

destinations. The new License 

Exception Strategic Trade Authorization 

(STA) would be in § 740.20 of the EAR. 

The new license exception would 

authorize exports, reexports and 

transfers (in-country) to destinations 

that pose little risk of unauthorized 

uses, and for which U.S. national 

security and foreign policy justify 

authorizing transactions without the 

delay and expense of obtaining an 

export license. To provide safeguards 

against possible reexports to 

destinations that are not authorized 

under License Exception STA, where 

there is a greater risk of diversion to 

unauthorized end-uses, the license 

exception would also impose certain 

notification, destination control 

statement and consignee statement 

requirements. Use of this license 

exception would be optional. Parties 

would be free to use other license 

exceptions that would authorize a 

planned transaction or to apply for a 

license if they prefer to do so. 

This license exception would be a 

step in the President’s Export Control 

Reform Initiative. With its associated 

specific safeguards, this license 

exception would further focus export 

controls on the most critical national 

security priorities. The Administration 

will continue to work on other parts of 

the initiative, including implementing 

the control list criteria and transitioning 

the Commerce Control List (CCL) into a 

tiered structure to further target dualuse controls on the most sensitive items. 

As described in the Notice of Inquiry 

the Department of Commerce entitled 

‘‘Request for Public Comments on How 

the Descriptions of Items on the 

Commerce Control List Could be (1) 

More Clear and ‘Positive’ and (2) 

‘Tiered’ based on Their (a) Significance 

and (b) Availability Outside of Certain 

Countries’’ issued simultaneously with 

this proposed rule, the Administration 

is continuing its review of items on the 

CCL to determine which paragraphs or 

subparagraphs within each Export 

Control Classification Number (ECCN) 

should be identified as within the scope 

of Tier 1, Tier 2, or Tier 3. Any items 

the Administration ultimately 

determines to be within the scope of 

Tier 1—i.e., items that are critical to 

maintaining a military or intelligence 

advantage for the United States and 

almost exclusively available from the 

United States—will not be within the 

scope of License Exception STA. In 

particular, the Administration is 

focusing on whether items within the 

scope of the following ECCNs would, in 

whole or in part, not be eligible for 

License Exception STA: 0A919, 1A002, 

3A001, 3A002, 3A003, 3A201, 3A228, 

3A229, 3A232, 4A001, 4A003, 5A001, 

6A001, 6A002, 6A003, 6A004, 6A005, 

6A006, 7A001, 7A002, 7A003, 7A004, 

7A006, 8A001, 8A018, 9A001, 9A004, 

9A012 and 9A018. The Administration’s 

focus on these ECCNs includes a focus 

on whether the technology controls 

related to such items and other items, 

such as in ECCNs 9E003, 6E001 and 

6E002, meet, in whole or in part, the 

Tier 1 criteria. 

Specific License Exception Provisions 

Scope 

The license exception would apply 

only to Commerce Control List-based 

license requirements. Transactions in 

which a license is required because of 

an end-use—such as a proliferation enduse described in part 744 of the EAR or 

a proscribed end-user (such as a party 

on the Entity List in part 744 of the 

EAR)—or because the destination is 

subject to an embargo or special 

restrictions in part 746 of the EAR, 

would not be eligible for License 

Exception STA. 

Items on the Commerce Control List 

that are subject to the short supply (SS), 

surreptitious listening (SL), missile 

technology (MT) or chemical weapons 

(CW) reasons for control would not be 

eligible for License Exception STA 

because of various requirements 

imposed by statutes, treaties or U.S. 

implementation of international 

commitments. Items in ECCNs 0A981 

and 0A983 also would not be eligible. 

Those two ECCNs apply to equipment 

designed for the execution of human 

beings and specially designed 

implements of torture. The human 

rights concerns associated with those 

items are sufficiently great to justify 

precluding use of License Exception 

STA. License Exception STA would also 

not affect the requirements for License 

Exception ENC in § 740.17 of the EAR. 


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Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Proposed Rules 76655 

License Exception STA 

This license exception would 

encompass three different 

authorizations, based on the reason(s) 

for control underlying the license 

requirements that would apply to the 

item in the particular transaction at 

issue, the destination, the sensitivity of 

the item and the end-use. One 

authorization would allow items subject 

to any (or all) of seven reasons for 

control to go to 37 destinations. Another 

authorization would allow less sensitive 

items subject to only national security 

reasons for control to go to two 

additional destinations. The third 

authorization would allow less sensitive 

items subject to only national security 

reasons for control to go to 125 

additional destinations for civil enduses. National security-controlled items 

that are ineligible for the last two 

authorizations would be identified by 

the new ‘‘STA exclusion paragraphs’’ in 

the ‘‘License Exceptions’’ sections of 50 

ECCN entries on the Commerce Control 

List. Thus, the STA exclusion serves the 

opposite function of a typical list-based 

license exception paragraph, such as 

those setting forth license exceptions 

LVS (§ 740.3) and GBS (§ 740.4), which 

identifies items that are eligible for a 

license exception. 

Authorization for Items Controlled for 

Multiple Reasons to 37 Countries 

If the only reason(s) for control that 

impose(s) a license requirement on the 

transaction is (are) national security 

(NS); chemical or biological weapons 

(CB); nuclear nonproliferation (NP); 

regional stability (RS); encryption items 

(EI); crime control (CC) (but not ECCNs 

0A981, 0A982, 0A983, 0A985 or 0E982); 

or significant items (SI), exports, 

reexports and transfers (in-country) to 

37 destinations would be authorized. 

Two of the crime control ECCNs 

excluded from this authorization 

(0A981 and 0A983) involve human 

rights concerns of sufficient magnitude 

to justify exclusion. The other three 

excluded crime control ECCNs would 

continue to require a license to all 

destinations other than Canada. 

Authorization for Less Sensitive 

National Security Items to 2 Additional 

Countries 

If the only reason for control that 

imposes a license requirement on the 

transaction is national security (NS) and 

the item is not designated in the STA 

sensitive items exclusion paragraph in 

its ECCN, two destinations in addition 

to the 37 noted above would be 

authorized. The STA exclusion 

paragraphs closely track the Sensitive 

List of the Wassenaar Arrangement on 

Export Controls Conventional Arms and 

Dual-Use Goods and Technologies 

(Wassenaar Arrangement). This rule 

would add such paragraphs to 50 

ECCNs. 

Authorization for Less Sensitive 

National Security Items for Civil Enduses in 125 Additional Countries 

If the only reason for control that 

imposes a license requirement on the 

transaction is national security (NS), the 

item that is the subject of the transaction 

is not designated by the STA exclusion 

paragraph in its ECCN and the item is 

being exported, reexported or 

transferred (in-country) for a civil enduse, 125 additional destinations would 

be authorized. Civil end-use is defined 

as an end-use that is not a military enduse as defined by § 744.21(f) or a 

proliferation activity described and 

prohibited by part 744 of the EAR. 

Limitations on Subsequent Transactions 

That Apply to License Exception STA 

Proposed § 740.20 would preclude 

use of License Exception APR paragraph 

(a) (§ 740.16(a)) for items that have been 

shipped pursuant to this License 

Exception STA. 

Conditions That Apply to License 

Exception STA 

Proposed § 740.20 would impose 

three conditions that would apply to 

transactions made pursuant to License 

Exception STA. 

(1) Exporters would be required to 

furnish the consignee with the ECCN 

that applies to each item transferred 

under License Exception STA. 

(2) Reexporters and transferors would 

be required to provide subsequent 

consignees with the ECCN provided by 

the exporter or prior reexporters or 

transferors. 

(3) Exporters, reexporters and 

transferors would be required to obtain 

from their consignees, prior to the 

shipment, a written statement 

identifying the items to be shipped and 

restating the ECCN(s) provided to the 

consignees by the exporters, reexporters 

or transferors. The statement must also 

acknowledge that the consignee: 

• Is aware that items will be shipped 

pursuant to License Exception STA; 

• Has been informed of the 

description of the items and their 

ECCN(s) by the exporter, reexporter or 

transferor; 

• Understands that shipment 

pursuant to License Exception STA 

precludes subsequent use of paragraph 

(a) of License Exception APR for the 

items; 

• Agrees not to export, reexport or 

transfer these items to any destination, 

enduse or end-user prohibited by the 

EAR; 

• Agrees that, for items subject to a 

civil end-use restriction, the only enduse of the items will be civil; and 

• Agrees to provide copies of this 

document and all other export, reexport 

or transfer record (i.e., the documents 

described in part 762 of the EAR) 

relevant to the items referenced in this 

statement to the U.S. Government as set 

forth in § 762.7. 

(4) Exporters, reexporters and 

transferors using License Exception STA 

would be required to use a special 

destination control statement that 

applies to shipments made pursuant to 

License Exception STA. Like the 

destination control statement 

requirement that currently applies to 

most exports of items listed in specific 

entries on the Commerce Control List, 

the destination control statement that 

applies to License Exception STA 

would have to be placed on documents 

that accompany the shipment. Unlike 

the current destination control 

statement, this new destination control 

statement would apply to reexports and 

transfers (in-country) abroad. In 

addition to noting that the shipment is 

subject to the EAR and that any further 

disposition must be in accordance with 

those regulations, this new destination 

control statement would include the 

ECCN applicable to each item, explicitly 

state that the shipment is being made 

pursuant to License Exception STA and 

explicitly state that subsequent exports 

or reexports under paragraph (a) of 

License Exception APR are prohibited. 

Addition of License Exception STA 

Exclusion Paragraphs to 50 ECCNs 

As noted above, this rule adds such 

paragraphs to 50 ECCNs. The STA 

exclusion paragraphs, which closely 

track the Wassenaar Arrangement 

Sensitive List, designate certain items 

that would not be eligible for License 

Exception STA other than for the 37 

destinations set forth in proposed 

§ 740.20(c)(1). 

Incidental Changes Necessary to 

Implement License Exception STA 

Cross Reference to Wassenaar 

Arrangement Reporting Requirements 

New § 740.20 would cross reference 

the Wassenaar Arrangement reporting 

requirements in § 743.1 of the EAR 

because Wassenaar Arrangement 

Sensitive List items exported pursuant 

to License Exception STA would be 

subject to the reporting requirements of 

§ 743.1. 


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76656 Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Proposed Rules 

Revisions to § 732.4 

Section 732.4 of the EAR explains 

how to identify and use license 

exceptions. This proposed rule would 

revise that section to note the License 

Exception STA exclusion paragraphs in 

ECCNs and to add License Exception 

STA to the list of license exceptions that 

are subject to the Wassenaar 

Arrangement reporting requirements of 

§ 743.1 of the EAR. 

Revision to § 738.2(d)(2)(i) Explaining 

the Use of the License Exception STA 

Exclusion Paragraphs in ECCNs 

Section 738.2 of the EAR explains the 

workings of the Commerce Control List, 

and paragraph (d)(2)(i) of that section 

explains the ‘‘License Exception’’ 

paragraph of an ECCN. This proposed 

rule would revise that paragraph to 

explain the role of the STA exclusion 

paragraphs, which is different from that 

of the other license exception 

paragraphs that appear in ECCNs. The 

other license exception paragraphs 

signal eligibility to use a license 

exception and the limits of that 

eligibility. The STA exclusion 

paragraphs signal that two authorizing 

paragraphs of License Exception STA 

may not be used. 

Revision to § 743.1 Wassenaar 

Arrangement Reporting 

Wassenaar Arrangement member 

states, including the United States, are 

required to report to the Wassenaar 

Arrangement exports of Sensitive List 

items to non-member states for which a 

license was not issued. Section 743.1 of 

the EAR requires exporters using certain 

license exceptions for such exports to 

report the export to BIS. The 

information reported by the exporters is 

used to compile the report that the 

United States submits to the Wassenaar 

Arrangement. To enable the United 

States to meet its reporting obligations 

to the Wassenaar Arrangement, this 

proposed rule would add License 

Exception STA to § 743.1. 

Revision to § 758.6 

Section 758.6 of the EAR imposes a 

destination control statement that 

applies to exports of all items subject to 

the EAR that are not classified as 

EAR99, i.e., to all items that are not 

controlled under a specific entry on the 

Commerce Control List. This rule would 

add language to § 758.6 to alert readers 

that transactions authorized by License 

Exception STA are subject to the 

destination control statement found in 

§ 740.20(d)(3). 

Rulemaking Requirements 

1. This rule has been determined to be 

significant for purposes of Executive 

Order 12866. 

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 

Office of Management and Budget 

(OMB) Control Number. 

The proposed rule would affect a 

collection of information approved by 

OMB under control number 0607–0152 

(the Automated Export System or AES). 

That collection is administered by the 

Census Bureau. For most exports of 

items subject to the EAR, the export 

license number, a license exception 

symbol or the designator NLR (no 

license required) must be entered into 

AES. BIS believes that this rule, if 

implemented in final form, would have 

no material impact on the burden 

imposed by that collection because this 

rule would, in effect, merely replace an 

existing requirement to enter the license 

number with a requirement to enter a 

license exception symbol instead. 

This rule also amends a collection of 

information approved by OMB under 

control number 0694–0137 (License 

Exemptions and Exclusions). This 

control number is being amended to add 

the proposed requirement for exporters, 

reexporters and transferors to furnish 

ECCNs, to prepare and furnish a revised 

destination control statement and to 

obtain a statement of assurance from the 

consignee before shipping pursuant to 

the license exception that would be 

created by this rule. BIS expects the 

requirements are likely to increase the 

burden associated with control number 

0694–0137 by about 3,200 hours (3,200 

transactions @ 1 hour each). BIS 

believes that, in most instances, this 

new burden will be wholly or partially 

offset by a reduction in burden under 

control number 0694–0088 (Simplified 

Network Application Processing 

System) which authorizes, among other 

things, export license applications. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Chief Counsel for Regulations 

of the Department of Commerce has 

certified to the Chief Counsel for 

Advocacy of the Small Business 

Administration that this proposed rule, 

if adopted in final form, would not have 

a significant economic impact on a 

substantial number of small entities. 

Number of Small Entities 

Currently, BIS does not collect data 

on the size of entities that currently 

apply for and are issued export licenses. 

Although BIS is unable to estimate the 

exact number of small entities that 

would be impacted by this rule, it does 

acknowledge that this rule will impact 

some unknown number. 

Economic Impact 

BIS believes that this rule would 

reduce the costs to small entities 

because it would provide an alternative 

to existing license requirements. Small 

entities (and all other entities) would be 

able to choose to: (1) Comply with the 

safeguard provisions of the license 

exception that would be created by this 

rule; (2) continue to apply for licenses 

before engaging in the transactions that 

would be affected by this rule; or (3) use 

any other license exception in the EAR 

that authorizes a particular transaction. 

BIS believes that in many instances, 

small entities will elect to comply with 

the safeguard provisions and use the 

license exception that would be created 

by this rule because they are likely to 

find doing so less costly than the 

requirements of applying for and 

obtaining an export license as is 

currently required for most transactions 

that would be affected by this rule. 

Obtaining an export license requires 

submitting a detailed product 

description and the names, addresses 

and contact information about most 

parties to the transaction. Moreover, the 

applicant is unable to engage in the 

transaction until it receives approval 

from the government to do so and thus 

incurs the costs associated with 

uncertainty and delay before it can 

make a sale. In many instances, 

approval is granted only with 

conditions that may impose notification 

requirements or end-use restrictions. In 

some instances, the applicant must also 

obtain an import or end-user certificate 

from its proposed consignee, a 

document that the consignee must 

obtain from its government. In other 

instances, the applicant must obtain a 

written statement from the proposed 

consignee describing the transactions 

and providing assurance that it will not 

reship the items in violation of the EAR. 

Under the license exception proposed 

in this rule, the party wishing to ship 

the item need not contact BIS prior to 

the shipment for export control 

purposes. Instead, that party would 

inform its proposed consignee of the 

description of the items being exported, 

the ECCN under which they are 

classified and a standard set of 

restrictions on further shipments of the 


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items. The party may proceed with the 

transaction once it has obtained from its 

consignee a statement that includes: (1) 

A written acknowledgement of the 

receipt of that information; (2) a 

commitment to comply with the EAR; 

and (3) a commitment to furnish 

information about the transaction to the 

United States Government upon request. 

Exporters of certain items that are 

subject to national security export 

controls would be required to report the 

transaction to BIS after the export takes 

place if the item is exported to a 

destination that is not a member of the 

Wassenaar Arrangement. However, 

currently such exports must be made 

pursuant to either an existing license 

exception or as authorized by a license. 

If the export is made pursuant to an 

existing license exception, it is already 

subject to this post-shipment reporting 

requirement so exporters who switch 

from an existing license exception to 

this new license exception would incur 

no new or increased burden as a result 

of this post-shipment reporting 

requirement. If an export currently is 

made as authorized, the exporter who 

elects to use this new license exception 

would be exchanging the burden of 

applying for a license and waiting to 

learn the results for the burden of 

submitting a post-shipment report. 

Conclusion 

BIS is unable to determine whether 

there are a substantial number of small 

entities affected by this rule. However, 

the effect of this rule on all entities is 

not likely to be a significant economic 

impact. In some instances, parties 

shipping under the license exception 

that this rule would create would be 

required to obtain documents from their 

consignees that they are not currently 

required to obtain. In some instances, 

parties shipping under the license 

exception that this rule would create 

would be required to provide a postshipment report that they are not 

currently required to provide. However, 

any increase in costs arising from those 

two requirements is likely to be offset by 

the fact that parties who elect to use 

License Exception STA would no longer 

be required to submit detailed 

information to the government in 

advance and wait for authorization 

before proceeding. Moreover the fact 

that parties may elect to: (1) Use the 

new License Exception STA that would 

be created by this rule, (2) use any 

existing license exception that 

authorizes the transaction, or (3) comply 

with existing license requirements 

provides substantial assurance that the 

safeguards requirements of the new 

license exception would not be applied 

except in instances in which the party 

that wishes to transfer the items believes 

that those safeguard procedures impose 

a lesser cost than does any available 

existing license exception or the 

existing license procedure. 

For the reasons above, the Chief 

Counsel for Regulation certified that this 

rule would not have a significant 

economic impact on a substantial 

number of small entities. 

List of Subjects 

15 CFR Parts 732, 740, and 758 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 738 

Exports. 

15 CFR Part 743 

Administrative practice and 

procedure, Reporting and recordkeeping 

requirements. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, the Export 

Administration Regulations (15 CFR 

parts 730–774) are proposed to be 

amended as follows: 

PART 732—[AMENDED] 

1. The authority citation for part 732 

continues to read as follows: 

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

U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 

3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 

FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 

of August 12, 2010, 75 FR 50681 (August 16, 

2010). 

2. Section 732.4 is amended by: 

a. Adding two sentences immediately 

following the existing third sentence in 

paragraph (b)(3)(iii); and 

b. Revising paragraph (b)(3)(iv) to read 

as follows: 

§ 732.4 Steps regarding License 

Exceptions. 

* * * * * 

(b) * * * 

(iii) * * * Some ECCNs contain 

License Exception STA exclusion 

paragraphs. Those paragraphs delineate 

items excluded from the License 

Exception STA provisions in 

§ 740.20(c)(2) of the EAR. * * * 

(iv) If you are exporting under License 

Exceptions GBS, CIV, LVS, STA, APP, 

TSR or GOV, you should review § 743.1 

of the EAR to determine the 

applicability of certain reporting 

requirements. 

* * * * * 

PART 738—[AMENDED] 

3. The authority citation for part 738 

continues to read as follows: 

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

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 

seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

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

Comp., p. 783; Notice of August 12, 2010, 75 

FR 50681 (August 16, 2010). 

4. Section 738.2 is amended by 

adding two sentences immediately 

following the existing third sentence in 

paragraph (d)(2)(ii) to read as follows: 

§ 738.2 Commerce Control List structure. 

* * * * * 

(d) * * * 

(2) * * * 

(ii) * * * Some ECCNs have License 

Exception STA exclusion paragraphs. 

These paragraphs identify items for 

which the License Exception STA 

provisions in § 740.20(c)(2)(i) and (ii) of 

the EAR may not be used, but do not 

otherwise affect License Exception STA 

availability. * * * 

* * * * * 

PART 740—[AMENDED] 

5. The authority citation for part 740 

continues to read as follows: 

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

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

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

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

Comp., p. 783; Notice of August 12, 2010, 75 

FR 50681 (August 16, 2010). 

6. Add § 740.20 to read as follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

(a) Introduction. This section 

authorizes exports, reexports and 

transfers (in-country) in lieu of a license 

that would otherwise be required 

pursuant to part 742 of the EAR. In this 

section, the term ‘‘transaction’’ means 

exports, reexports and transfers (incountry). 

(b) Requirements and limitations—(1) 

Requirements for using License 

Exception STA. (i) All of the reasons for 

control that impose a part 742 license 

requirement on the transaction must be 

addressed in at least one authorizing 

paragraph of this section. 

(ii) The party using License Exception 

STA must comply with all of the 

requirements in paragraph (d) of this 

section. 

(2) Limitations on use of License 

Exception STA. (i) License Exception 

STA may not be used in lieu of any 


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license requirement imposed by: ‘‘Part 

744—Control Policy: End User and End 

Use Based’’ or by ‘‘Part 746—Embargoes 

and other Special Controls’’ of the EAR. 

(ii) License Exception STA may not be 

used for any transaction involving an 

item controlled under ECCNs 0A981 or 

0A983. 

(iii) License Exception STA may not 

be used for any transaction involving an 

item that is controlled for reason of 

short supply (SS), surreptitious listening 

(SL), missile technology (MT) or 

chemical weapons (CW). 

(iv) License Exception STA may not 

be used for any transaction involving an 

item identified on the CCL as being 

subject to the export control jurisdiction 

of another agency, such as the 

Department of State, the Department of 

Energy, or the Nuclear Regulatory 

Commission. 

(c) Authorizing paragraphs—(1) 

Transactions subject to multiple reasons 

for control. Transactions in which the 

only applicable reason(s) for control is 

(are): National security (NS); chemical 

or biological weapons (CB); nuclear 

nonproliferation (NP); regional stability 

(RS); encryption items (EI); crime 

control (CC), but not ECCNs 0A981, 

0A982, 0A983, 0A985 or 0E982; and/or 

significant items (SI) are authorized for 

destinations in: Argentina, Australia, 

Austria, Belgium, Bulgaria, Canada, 

Croatia, Czech Republic, Denmark, 

Estonia, Finland, France, Germany, 

Greece, Hungary, Iceland, Ireland, Italy, 

Japan, Latvia, Lithuania, Luxembourg, 

Netherlands, New Zealand, Norway, 

Poland, Portugal, Romania, Slovakia, 

Slovenia, South Korea, Spain, Sweden, 

Switzerland, Turkey, Ukraine and the 

United Kingdom. 

(2) Transactions subject to national 

security controls of lesser sensitivity. 

Transactions in which the only 

applicable reason for control is national 

security (NS) and the item being 

exported, reexported or transferred (incountry) is not designated in the ‘‘STA 

exclusion’’ paragraph in the ECCN that 

lists the item are authorized if: 

(i) The destination is in Albania or 

Israel; or 

(ii) The item is being exported, 

reexported or transferred (in-country) 

for a civil end-use and the destination 

is in Algeria, Andorra, Antigua and 

Barbuda, Armenia, Aruba, Azerbaijan, 

Bahamas, Bahrain, Bangladesh, 

Barbados, Belize, Benin, Bhutan, 

Bolivia, Bosnia and Herzegovina, 

Botswana, Brazil, Brunei, Burkina Faso, 

Burundi, Cambodia, Cameroon, Cape 

Verde, Central African Republic, Chad, 

Chile, Colombia, Comoros, Congo 

(Republic of the), Costa Rica, Djibouti, 

Dominica, Dominican Republic, East 

Timor, Ecuador, El Salvador, Equatorial 

Guinea, Ethiopia, Fiji, Gabon, Gambia 

(The), Georgia, Ghana, Grenada, 

Guatemala, Guinea, Guinea-Bissau, 

Guyana, Honduras, Hong Kong, India, 

Jamaica, Jordan, Kazakhstan, Kenya, 

Kiribati, Kosovo, Kuwait, Kyrgyzstan, 

Laos, Lesotho, Liechtenstein, Macedonia 

(Former Yugoslav Republic), 

Madagascar, Malawi, Maldives, Mali, 

Malta, Marshall Islands, Mauritania, 

Mauritius, Mexico, Micronesia 

(Federated States of), Moldova, Monaco, 

Mongolia, Montenegro, Morocco, 

Mozambique, Namibia, Nauru, Nepal, 

Netherlands Antilles, Nicaragua, Niger, 

Nigeria, Oman, Palau, Panama, Papua 

New Guinea, Paraguay, Peru, 

Philippines, Qatar, Rwanda, Saint Kitts 

& Nevis, Saint Lucia, Saint Vincent and 

the Grenadines, Samoa, San Marino, Sao 

Tome & Principe, Saudi Arabia, Senegal, 

Seychelles, Singapore, Solomon Islands, 

South Africa, Surinam, Swaziland, 

Taiwan, Tajikistan, Tanzania, Thailand, 

Togo, Tonga, Trinidad & Tobago, 

Tunisia, Turkmenistan, Tuvalu, 

Uruguay, Uzbekistan, Vanuatu, Vatican 

City, Western Sahara and Zambia. For 

purposes of this section, civil end-use 

means an end-use other than a military 

end-use as defined in section 744.21(f) 

or a proliferation activity described and 

prohibited by part 744 of the EAR. 

(d) Conditions—(1) Requirement to 

furnish Export Control Classification 

Number. (i) The exporter must furnish 

to the consignee the Export Control 

Classification Number of each item to be 

shipped pursuant to this section. 

(ii) A reexporter or transferor must 

furnish to subsequent consignees the 

Export Control Classification Number, 

provided by the exporter or a prior 

reexporter or transferor, of each item to 

be shipped pursuant to this section. 

(2) Prior Consignee Statement. The 

exporter, reexporter or transferor must 

obtain the following statement in 

writing from its consignee prior to 

shipping the item and must retain the 

statement in accordance with part 762 

of the EAR. 

[INSERT NAME OF CONSIGNEE]: 

(i) Is aware that [INSERT 

DESCRIPTION AND APPLICABLE 

ECCNS OF ITEMS TO BE SHIPPED] 

will be shipped pursuant to License 

Exception Strategic Trade Authorization 

(STA) in § 740.20 of the United States 

Export Administration Regulations (15 

CFR 740.20); 

(ii) Has been informed of the ECCNs 

noted above by [INSERT NAME OF 

EXPORTER, REEXPORTER OR 

TRANSFEROR]; 

(iii) Understands that items shipped 

pursuant to License Exception STA may 

not subsequently be reexported 

pursuant to paragraph (a) of License 

Exception APR (15 CFR 740.16(a)); 

(iv) Agrees not to export, reexport or 

transfer these items to any destination, 

use or user prohibited by the United 

States Export Administration 

Regulations; 

(v) Agrees that the items shipped 

pursuant to § 740.20(c)(1)(ii) will only 

be used in a civil end-use; and 

(vi) Agrees to provide copies of this 

document and all other export, reexport 

or transfer record (i.e., the documents 

described in 15 CFR part 762) relevant 

to the items referenced in this statement 

to the U.S. Government as set forth in 

15 CFR 762.7. 

(3) Destination Control Statement. 

The Destination Control Statement 

(DCS) must be entered by the exporter, 

reexporter or transferor on the invoice 

and on any other ‘‘export control 

document’’ that accompanies the 

shipment from its point of origin to the 

ultimate consignee or end-user for all 

export, reexports and transfers (incountry) made pursuant to License 

Exception STA. The person responsible 

for preparation of those documents is 

responsible for entry of the DCS. The 

DCS is required for all exports, 

reexports and transfers (in-country) 

made pursuant to this section. At a 

minimum, the DCS must state: 

[INSERT NAME AND APPLICABLE 

ECCN FOR EACH ITEM INCLUDED IN 

THE SHIPMENT] 

These commodities, technology or 

software are subject to the Export 

Administration Regulations (15 CFR 

730–774) and were exported from the 

United States or reexported or 

transferred in accordance with License 

Exception Strategic Trade Authorization 

(STA). Any further reexport or transfer 

must be in accordance with the Export 

Administration Regulations. Paragraph 

(a) of License Exception APR (15 CFR 

740.16(a)), which permits reexports 

from certain countries without 

additional U.S. Government 

authorization, may not be used as an 

authorization for any transactions 

involving these items. 

(e) Limitation on subsequent 

transactions. If an item has been 

exported, reexported or transferred (incountry) pursuant to this section, it may 

not be subsequently exported, 

reexported or transferred (in-country) 

pursuant to paragraph (a) of License 

Exception APR (§ 740.16(a) of the EAR). 

(f) Applicability of Wassenaar 

Arrangement reporting requirements. 

See § 743.1 of the EAR for special 

reporting requirements that apply to 

some exports made pursuant to this 

section. 


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PART 743—[AMENDED] 

7. The authority citation for part 743 

continues to read as follows: 

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

U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 

3 CFR, 2001 Comp., p. 783; Notice of August 

12, 2010, 75 FR 50681 (August 16, 2010). 

8. Section 743.1 is amended by 

adding a paragraph (b)(4) to read as 

follows: 

§ 743.1 Wassenaar Arrangement. 

* * * * * 

(b) * * * 

(4) Exports authorized under License 

Exception STA (See § 740.20 of the 

EAR). 

* * * * * 

PART 758—[AMENDED] 

9. The authority citation for part 758 

continues to read as follows: 

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

U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 

3 CFR, 2001 Comp., p. 783; Notice of August 

12, 2010, 75 FR 50681 (August 16, 2010). 

10. Section 758.6 is amended by 

adding a sentence at the end of the 

section to read as follows: 

§ 758.6 Destination control statement. 

* * * In addition to the destination 

control statement in this section, the 

destination control statement 

requirements of § 740.20(d)(3) of the 

EAR apply to exports, reexports and 

transfers (in-country) made pursuant to 

License Exception Strategic Trade 

Authorization (STA). 

PART 774—[AMENDED] 

11. The authority citation for part 774 

continues to read as follows: 

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

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 

seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

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

Comp., p. 783; Notice of August 12, 2010, 75 

FR 50681 (August 16, 2010). 

12. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1A002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

1A002 ‘‘Composite’’ structures or 

laminates, having any of the following (see 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any item in this entry. 

* * * * * 

13. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1C001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

1C001 Materials specially designed for 

use as absorbers of electromagnetic waves, 

or intrinsically conductive polymers, as 

follows (see List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any item in this entry. 

* * * * * 

14. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1C007 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

1C007 Ceramic base materials, non- 

‘‘composite’’ ceramic materials, ceramic- 

‘‘matrix’’ ‘‘composite’’ materials and 

precursor materials, as follows (see List of 

Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any item in 1C007.c or d. 

* * * * * 

15. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1C010 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

1C010 ‘‘Fibrous or filamentary materials’’ 

as follows (see List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any item in 1C010.c or d. 

* * * * * 

16. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1C012 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

1C012 Materials, as follows (see List of 

Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any item in this entry. 

* * * * * 

17. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1D002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

1D002 ‘‘Software’’ for the ‘‘development’’ 

of organic ‘‘matrix’’, metal ‘‘matrix’’ or carbon 

‘‘matrix’’ laminates or ‘‘composites’’. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’ for the ‘‘development’’ of 

organic ‘‘matrix’’, metal ‘‘matrix’’ or carbon 

‘‘matrix’’ laminates or ‘‘composites’’ specified 

ECCN 1A002. 

* * * * * 

18. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

1E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of items 

controlled by 1A001.b, 1A001.c, 1A002, 

1A003, 1A004, 1A005, 1A006.b, 1A007, 

1A008, 1A101, 1B (except 1B999), or 1C 

(except 1C355, 1C980 to 1C984, 1C988, 

1C990, 1C991, 1C995 to 1C999). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of equipment 

and materials specified by ECCNs 1A002, 

1C001, 1C007.c or d, 1C010.c or d or 1C012. 

* * * * * 

19. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 

ECCN 1E002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

1E002 Other ‘‘technology’’ as follows (see 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 


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

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

used for any item in 1E002.e or .f. 

* * * * * 

20. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 2, 

ECCN 2D001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

2D001 ‘‘Software’’, other than that 

controlled by 2D002, specially designed or 

modified for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of equipment 

controlled by 2A001 or 2B001 to 2B009. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’, other than that specified 

by ECCN 2D002, specially designed for the 

‘‘development’’ or ‘‘production’’ of equipment 

as follows: 

ECCN 2B001 entire entry; or 

‘‘Numerically controlled’’ or manual 

machine tools as specified in 2B003. 

* * * * * 

21. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 2, 

ECCN 2E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

2E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ of equipment or ‘‘software’’ 

controlled by 2A (except 2A983, 2A984, 

2A991, or 2A994), 2B (except 2B991, 2B993, 

2B996, 2B997, or 2B998), or 2D (except 

2D983, 2D984, 2D991, 2D992, or 2D994). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

‘‘development’’ of ‘‘software’’ specified in the 

License Exception STA paragraph in the 

License Exception section of ECCN 2D001 or 

for the ‘‘development’’ of equipment as 

follows: 

ECCN 2B001 entire entry; or 

‘‘Numerically controlled’’ or manual 

machine tools as specified in 2B003. 

* * * * * 

22. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 2, 

ECCN 2E002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

2E002 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘production’’ of equipment controlled by 2A 

(except 2A983, 2A984, 2A991, or 2A994), or 

2B (except 2B991, 2B993, 2B996, 2B997, or 

2B998). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

‘‘production’’ of equipment as follows: 

ECCN 2B001 entire entry; or 

‘‘Numerically controlled’’ or manual 

machine tools as specified in 2B003. 

* * * * * 

23. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 3, 

ECCN 3A002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

3A002 General purpose electronic 

equipment and accessories therefor, as 

follows (see List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any item in 3A002.g.1. 

* * * * * 

24. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 3, 

ECCN 3B001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

3B001 Equipment for the manufacturing 

of semiconductor devices or materials, as 

follows (see List of Items Controlled) and 

specially designed components and 

accessories therefor. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any item in 3B001.a.2. 

* * * * * 

25. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 3, 

ECCN 3D001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

3D001 ‘‘Software’’ specially designed for 

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

equipment controlled by 3A001.b to 3A002.g 

or 3B (except 3B991 and 3B992). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’ specially designed for the 

‘‘development’’ or ‘‘production’’ of equipment 

specified by 3A002.g.1 or 3B001.a.2. 

* * * * * 

26. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 3, 

ECCN 3E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

3E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of equipment 

or materials controlled by 3A (except 3A292, 

3A980, 3A981, 3A991 3A992, or 3A999), 3B 

(except 3B991 or 3B992) or 3C (except 

3C992). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of equipment 

specified by ECCNs 3A002.g.1. or 3B001.a.2. 

* * * * * 

27. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 4, 

ECCN 4A001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

4A001 Electronic computers and related 

equipment, having any of the following (see 

List of Items Controlled), and ‘‘electronic 

assemblies’’ and specially designed 

components therefor. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in 4A001.a.2. 

* * * * * 

28. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 4, 

ECCN 4D001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

4D001 ‘‘Software’’ as follows (see List of 

Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’ specially designed for the 

‘‘development’’ or ‘‘production’’ of equipment 

specified by ECCN 4A001.a.2 or for the 

‘‘development’’ or ‘‘production’’ of ‘‘digital 

computers’’ having an ‘Adjusted Peak 

Performance’ (‘APP’) exceeding 0.5 Weighted 

TeraFLOPS (WT). 

* * * * * 

29. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 4, 


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ECCN 4E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

4E001 ‘‘Technology’’ as follows (see List 

of Items Controlled). 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

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

following equipment or ‘‘software’’: 

a. Equipment specified by ECCN 

4A001.a.2; 

b. ‘‘Digital computers’’ having an ‘Adjusted 

Peak Performance’ (‘APP’) exceeding 0.5 

Weighted TeraFLOPS (WT); or 

c. ‘‘Software’’ specified in the License 

Exception STA paragraph found in the 

License Exception section of ECCN 4D001. 

30. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 5, 

Part 1, ECCN 5A001 is amended by 

adding at the end of the License 

Exception section, a new License 

Exception STA paragraph to read as 

follows: 

5A001 Telecommunications systems, 

equipment, components and accessories, as 

follows (see List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in 5A001.b.3 or b.5 

* * * * * 

31. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 5, 

Part 1, ECCN 5B001 is amended by 

adding at the end of the License 

Exception section, a new License 

Exception STA paragraph to read as 

follows: 

5B001 Telecommunication test, 

inspection and production equipment, 

components and accessories, as follows (See 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for 5B001.a equipment and specially 

designed components or accessories therefor, 

specially designed for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of equipment, 

functions or features specified by in ECCN 

5A001.b.3 or b.5. 

* * * * * 

32. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 5, 

Part 1, ECCN 5D001 is amended by 

adding at the end of the License 

Exception section, a new License 

Exception STA paragraph to read as 

follows: 

5D001 ‘‘Software’’ as follows (see List of 

Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for 5D001.a for ‘‘software’’ specially 

designed for the ‘‘development’’ or 

‘‘production’’ of equipment, functions or 

features, specified by ECCN 5A001.b.3 or 

.b.5; and for 5D001.b. for ‘‘software’’ specially 

designed or modified to support ‘‘technology’’ 

specified by the STA paragraph in the 

License Exception section of ECCN 5E001. 

* * * * * 

33. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 5, 

Part 1, ECCN 5E001 is amended by 

adding at the end of the License 

Exception section, a new License 

Exception STA paragraph to read as 

follows: 

5E001 ‘‘Technology’’ as follows (see List 

of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of equipment, 

functions or features specified by 5A001.b.3 

or .b.5 or for ‘‘software’’ in 5D001.a that is 

specified in the STA paragraph in the 

License Exception section of ECCN 5D001. 

* * * * * 

34. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6A001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6A001 Acoustic systems, equipment and 

components, as follows (see List of Items 

Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for commodities in 6A001.a.1.b, 

6A001.a.1.e or 6A001.a.2. 

* * * * * 

35. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6A002 is amended by revising the 

ECCN heading and by adding at the end 

of the License Exception section, a new 

License Exception STA paragraph to 

read as follows: 

6A002 Optical sensors or equipment and 

components therefore, as follows (see List of 

Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for: 

6A002.a.1.a., b. or c; or 

6A002.a.2.a. in which the photocathode in 

described in 6A002.a.2.a 3.a is a Multialkali 

photocathode (e.g., S–20 and S–25) having a 

luminous sensitivity exceeding 700 μA/lm; 

or 

6A002.a.2.b; or 

6A002.a.3; or 

6A002.b; or 

6A002.c ‘‘Direct view’’ imaging equipment 

incorporating any of the following: 

1. Image intensifier tubes having the 

characteristics listed in the description of 

6A002.a.2.a earlier in this STA paragraph of 

License Exception section to this ECCN or 

6A002.a.2.b; or 

2. ‘‘Focal plane arrays’’ having the 

characteristics listed in the description of 

6A002.a.3; or 

6A002.e. 

* * * * * 

36. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6A003 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6A003 Cameras. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for: 6A003.b.3 and b.4. 

* * * * * 

37. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6A004 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6A004 Optical equipment and 

components, as follows (see List of Items 

Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in 6A004.c and d. 

* * * * * 

38. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6A006 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 


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6A006 ‘‘Magnetometers’’, ‘‘magnetic 

gradiometers’’, ‘‘intrinsic magnetic 

gradiometers’’, underwater electric field 

sensors, ‘‘compensation systems’’, and 

specially designed components therefor, as 

follows (see List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in: 

6A006.a.1; or 

6A006.a.2; or 

6A006.c.1 ‘‘Magnetic gradiometers’’ using 

multiple ‘‘magnetometers’’ specified by 

6A006.a.1 or 6.A006.a.2; or 

6A006.d. 

* * * * * 

39. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6A008 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6A008 Radar systems, equipment and 

assemblies, having any of the following (see 

List of Items Controlled), and specially 

designed components therefor. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in 6A008.d, 

6A008.h, 6A008.k or 6A008.l.3. 

* * * * * 

40. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6B008 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6B008 Pulse radar cross-section 

measurement systems having transmit pulse 

widths of 100 ns or less, and specially 

designed components therefor. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in this entry. 

* * * * * 

41. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6D001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6D001 ‘‘Software’’ specially designed for 

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

equipment controlled by 6A004, 6A005, 

6A008 or 6B008. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’ specially designed for the 

‘‘development’’ or ‘‘production’’ of equipment 

specified by ECCNs 6A004.c, 6A004.d, 

6A008.d, 6A008.h, 6A008.k, 6A008.1.3, or 

6B008. 

* * * * * 

42. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6D003 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6D003 Other ‘‘software’’ as follows (see 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for software in 6D003.a. 

* * * * * 

43. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ of equipment, materials or 

‘‘software’’ controlled by 6A (except 6A991, 

6A992, 6A994, 6A995, 6A996, 6A997, or 

6A998), 6B (except 6B995), 6C (except 6C992 

or 6C994), or 6D (except 6D991, 6D992, or 

6D993). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any technology in this entry. 

* * * * * 

44. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 6, 

ECCN 6E002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

6E002 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘production’’ of equipment or materials 

controlled by 6A (except 6A991, 6A992, 

6A994, 6A995, 6A996, 6A997 or 6A998), 6B 

(except 6B995) or 6C (except 6C992 or 

6C994). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

‘‘production’’ of equipment specified in the 

STA exclusion paragraphs found in the 

License Exception sections of by ECCNs 

6A001, 6A002, 6A003, 6A004, 6A006, 

6A008, or 6B008. 

* * * * * 

45. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 7, 

ECCN 7D002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

7D002 ‘‘Source code’’ for the ‘‘use’’ of any 

inertial navigation equipment, including 

inertial equipment not controlled by 7A003 

or 7A004, or Attitude and Heading 

Reference Systems (‘AHRS’). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any software in this entry. 

* * * * * 

46. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 7, 

ECCN 7D003 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

7D003 Other ‘‘software’’ as follows (see 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for software in 7D003.a, b, c, d.1 to d.4 

or d.7. 

* * * * * 

47. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 7, 

ECCN 7E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

7E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ of equipment or ‘‘software’’, 

controlled by 7A (except 7A994), 7B (except 

7B994) or 7D (except 7D994). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any technology in this entry. 

* * * * * 

48. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 7, 

ECCN 7E002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

7E002 ‘‘Technology’’ according to the 

General Technology Note for the 


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‘‘production’’ of equipment controlled by 7A 

(except 7A994) or 7B (except 7B994). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any technology in this entry. 

* * * * * 

49. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 8, 

ECCN 8A001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

8A001 Submersible vehicles and surface 

vessels, as follows (see List of Items 

Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in 8A001.b, 8A001.c 

or 8A001.d. 

* * * * * 

50. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 8, 

ECCN 8A002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

8A002 Marine systems, equipment and 

components, as follows (see List of Items 

Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any commodity in 8A002.b, h, j, o.3, 

or p. 

* * * * * 

51. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 8, 

ECCN 8D001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

8D001 ‘‘Software’’ specially designed or 

modified for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of equipment or 

materials, controlled by 8A (except 8A018 or 

8A992), 8B or 8C. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’ specially designed for the 

‘‘development’’ or ‘‘production’’ of equipment 

in 8A001.b, 8A001.c, 8A001.d, 8A002.b, 

8A002.h, 8A002.j, 8A002.o.3 or 8A002.p. 

* * * * * 

52. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 8, 

ECCN 8D002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

8D002 Specific ‘‘software’’ specially 

designed or modified for the ‘‘development’’, 

‘‘production’’, repair, overhaul or 

refurbishing (re-machining) of propellers 

specially designed for underwater noise 

reduction. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any software in this entire entry. 

* * * * * 

53. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 8, 

ECCN 8E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

8E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of equipment 

or materials, controlled by 8A (except 8A018 

or 8A992), 8B or 8C. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of equipment 

specified by 8A001.b, 8A001.c, 8A001.d, 

8A002.b, 8A002.h, 8A002.j, 8A002.o.3 or 

8A002.p. 

* * * * * 

54. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 8, 

ECCN 8E002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

8E002 Other ‘‘technology’’ as follows (see 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for technology in 8E002.a. 

* * * * * 

55. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 9, 

ECCN 9B001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

9B001 Equipment, tooling and fixtures, 

specially designed for manufacturing gas 

turbine blades, vanes or tip shroud castings, 

as follows (see List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for commodities in 9B001.b 

* * * * * 

56. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 9, 

ECCN 9D001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

9D001 ‘‘Software’’ specially designed or 

modified for the ‘‘development’’ of equipment 

or ‘‘technology’’, controlled by 9A (except 

9A018, 9A990 or 9A991), 9B (except 9B990 

or 9B991) or 9E003. 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’ specially designed or 

modified for the ‘‘development’’ of equipment 

or ‘‘technology’’, specified by ECCNs 9B001.b. 

or 9E003.a.1, 9E003.a.2 to a.5, 9E003.a.8, or 

9E003.h. 

* * * * * 

57. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 9, 

ECCN 9D002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

9D002 ‘‘Software’’ specially designed or 

modified for the ‘‘production’’ of equipment 

controlled by 9A (except 9A018, 9A990, or 

9A991) or 9B (except 9B990 or 9B991). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for ‘‘software’’ specially designed or 

modified for the ‘‘production’’ of equipment 

specified by 9B001.b. 

* * * * * 

58. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 9, 

ECCN 9D004 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

9D004 Other ‘‘software’’ as follows (see 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for software in 9D004.a and 9D004.c. 

* * * * * 


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59. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 9, 

ECCN 9E001 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

9E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ of equipment or ‘‘software’’, 

controlled by 9A001.b, 9A004 to 9A012, 9B 

(except 9B990 or 9B991), or 9D (except 

9D990 or 9D991). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any technology in this entry. 

* * * * * 

60. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 9, 

ECCN 9E002 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

9E002 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘production’’ of equipment controlled by 

9A001.b, 9A004 to 9A011 or 9B (except 

9B990 or 9B991). 

* * * * * 

License Exceptions 

* * * * * 

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

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

used for any technology in this entry. 

* * * * * 

61. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 9, 

ECCN 9E003 is amended by adding at 

the end of the License Exception 

section, a new License Exception STA 

paragraph to read as follows: 

9E003 Other ‘‘technology’’ as follows (see 

List of Items Controlled). 

* * * * * 

License Exceptions 

* * * 

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

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

used for any technology in 9E003.a.1, 

9E003.a.2 to a.5, 9E003.a.8, or 9E003.h. 

* * * * * 

Dated: December 6, 2010. 

Gary Locke, 

Secretary of Commerce. 

[FR Doc. 2010–30968 Filed 12–8–10; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 774 

[Docket No. 101112562–0577–01] 

Commerce Control List: Revising 

Descriptions of Items and Foreign 

Availability 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Advance notice proposed 

rulemaking. 

SUMMARY: As part of the President’s 

export control reform initiative, the 

Bureau of Industry and Security (BIS) 

seeks public comments on how the 

descriptions of items controlled on the 

Commerce Control List (CCL) of the 

Export Administration Regulations 

(EAR) could be more clear and positive 

and ‘‘tiered’’ in a manner consistent with 

the control criteria the Administration 

has developed as part of the reform 

effort. The request for comments on how 

items on the CCL could be tiered 

includes a request for comments on the 

degree to which a controlled item 

provides the United States with a 

critical, substantial, or significant 

military or intelligence advantage; and 

the availability of the item outside 

certain groups of countries. 

DATES: Comments must be received by 

February 7, 2011. 

ADDRESSES: Written comments on this 

notice of inquiry may be sent by e-mail 

to publiccomments@bis.doc.gov. 

Include ‘‘Notice of Inquiry—CCL’’ in the 

subject line of the message. Comments 

may also be submitted by mail or hand 

delivery to Timothy Mooney, Office of 

Exporter Services, Regulatory Policy 

Division, Bureau of Industry and 

Security, Department of Commerce, 

1401 Constitution Avenue, NW., Room 

2705, Washington, DC 20230, ATTN: 

Notice of Inquiry—CCL. 

FOR FURTHER INFORMATION CONTACT: 

Timothy Mooney, Regulatory Policy 

Division, Bureau of Industry and 

Security, Telephone: (202) 482–2440, 

E-mail: tmooney@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

A core task of the Administration’s 

Export Control Reform Initiative is to 

enhance national security by reviewing 

and revising, as necessary and to the 

extent permitted by law and regime 

obligations, the lists of items (i.e., 

commodities, software, and technology) 

controlled for export and reexport so 

that they (1) are clearer and more 

‘‘positive’’ in nature and (2) can more 

easily be screened into three tiers based 

upon a set of criteria. The 

Administration has developed a threetiered set of criteria to help determine 

whether a license should be required or 

a license exception should be available 

to allow license-free export, reexport, or 

transfer (in-country) of a given item, 

with appropriate conditions, to various 

destinations. The three-tiered set of 

criteria has two primary elements—(a) 

the degree to which an item provides 

the United States with a military or 

intelligence advantage and (b) the 

availability of the item outside the 

United States, its close allies and 

multilateral export control regime 

partners. 

1. Request for Comments on How To 

Make the CCL More Clear and ‘‘Positive’’ 

a. Background—The Current Commerce 

Control List and the Reform Effort 

The Commerce Control List (CCL), 

which is in Supplement No. 1 to part 

774 of the Export Administration 

Regulations (EAR) (15 CFR part 774), is 

the list of items for which BIS controls 

the export, reexport, and transfer (incountry). The CCL’s ten categories 

identify controlled items by fivecharacter Export Control Classification 

Numbers (ECCNs). Items that are not 

listed on the CCL but are still ‘‘subject 

to the EAR’’ are designated as ‘‘EAR99’’ 

items. 

Most items on the CCL are controlled 

in accordance with the United States’ 

commitments to the four multilateral 

export control regimes, i.e., the 

Wassenaar Arrangement on Export 

Controls for Conventional Arms and 

Dual-Use Goods and Technologies, the 

Missile Technology Control Regime, the 

Australia Group, and the Nuclear 

Suppliers Group. Members of the 

regimes have the discretion to clarify 

the descriptions of regime-controlled 

items on their domestic control lists. 

BIS also has items on the CCL that are 

controlled unilaterally by the United 

States, and thus generally has the 

authority to clarify the descriptions of 

those items. For purposes of this notice, 

a unilaterally controlled item is any 

item listed on the CCL that is not listed 

on a control list of one of the four 

multilateral export control regimes. 

These unilaterally controlled items are 

typically listed in the ‘‘900’’ series on the 

CCL, such as ECCNs 1C998 or 9A980, 

but many multilaterally controlled items 

(i.e., items listed in the ECCNs in the 

‘‘000’’, ‘‘100’’, ‘‘200’’ and ‘‘300’’ series) also 

include reasons for control that are 

unilateral, such as an item in the ‘‘000’’ 

series that is controlled for national 


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