76930 Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 / Proposed Rules 

B. Availability of Rulemaking 

Documents 

An electronic copy of rulemaking 

documents may be obtained from the 

Internet by— 

1. Searching the Federal eRulemaking 

Portal (http://www.regulations.gov); 

2. Visiting the FAA’s Regulations and 

Policies Web page at http:// 

www.faa.gov/regulations_policies or 

3. Accessing the Government Printing 

Office’s Web page at http:// 

www.gpoaccess.gov/fr/index.html. 

Copies may also be obtained by 

sending a request to the Federal 

Aviation Administration, Office of 

Rulemaking, ARM–1, 800 Independence 

Avenue, SW., Washington, DC 20591, or 

by calling (202) 267–9680. Commenters 

must identify the docket or notice 

number of this rulemaking. 

All documents the FAA considered in 

developing this proposed rule, 

including economic analyses and 

technical reports, may be accessed from 

the Internet through the Federal 

eRulemaking Portal referenced in item 

(1) above. 

Issued in Washington, DC, on December 7, 

2010. 

Pamela Hamilton-Powell, 

Director, Office of Rulemaking. 

[FR Doc. 2010–31094 Filed 12–9–10; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 43 

RIN 3038–AD08 

Real-Time Public Reporting of Swap 

Transaction Data 

Correction 

In proposed rule document 2010– 

29994 beginning on page 76140 in the 

issue of Tuesday, December 7, 2010, 

make the following correction: 

Appendix A to Part 43 [Corrected] 

On pages 76181 and 76182, in 

Appendix A to Part 43, in Table A2, the 

table heading should read ‘‘Table A2— 

Additional Real-Time Public Reporting 

Data Fields for Options, Swaptions and 

Swaps with Embedded Options.’’ 

[FR Doc. C1–2010–29994 Filed 12–9–10; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF STATE 

22 CFR Part 121 

[Public Notice: 7256] 

RIN 1400–AC77 

Amendment to the International Traffic 

in Arms Regulations: Revision of U.S. 

Munitions List Category VII 

AGENCY: Department of State. 

ACTION: Proposed rule. 

SUMMARY: As part of the President’s 

Export Control Reform effort, the 

Department of State proposes to amend 

the International Traffic in Arms 

Regulations (ITAR) to revise Category 

VII of the U.S. Munitions List. The 

proposed rule would revise Category VII 

(tanks and military vehicles) to describe 

more precisely the defense articles 

described therein. 

DATE: Effective Date: The Department of 

State will accept comments on this 

proposed rule until February 8, 2011. 

ADDRESSES: Interested parties may 

submit comments within 60 days of the 

date of the publication by any of the 

following methods: 

• E-mail: 

DDTCResponseTeam@state.gov with the 

subject line, ‘‘Category VII Revision.’’ 

• Mail: PM/DDTC, SA–1, 12th Floor, 

Directorate of Defense Trade Controls, 

Office of Defense Trade Controls Policy, 

ATTN: Category VII Revision, Bureau of 

Political Military Affairs, U.S. 

Department of State, Washington, DC 

20522–0112. 

• Persons with access to the Internet 

may also view this notice by searching 

for its RIN on the U.S. Government 

regulations Web site at http:// 

regulations.gov/index.cfm. 

SUPPLEMENTARY INFORMATION: The 

Directorate of Defense Trade Controls 

(DDTC), U.S. Department of State, 

administers the International Traffic in 

Arms Regulations (ITAR) (22 CFR parts 

120–130). The items subject to the 

jurisdiction of the ITAR, i.e., ‘‘defense 

articles,’’ are identified on the ITAR’s 

U.S. Munitions List (USML) (22 CFR 

121.1). With few exceptions, items that 

are not subject to the export control 

jurisdiction of the ITAR are subject to 

the jurisdiction of the Export 

Administration Regulations (EAR) (15 

CFR parts 730 through 774). The Bureau 

of Industry and Security (BIS), U.S. 

Department of Commerce, administers 

the EAR, which include the Commerce 

Control List (CCL) (15 CFR part 774). 

The descriptions in many USML 

categories are general and include 

design intent as an element of causing 

an item to be controlled. The 

descriptions in most CCL categories are 

specific and generally include technical 

parameters as an element for causing an 

item to be controlled. 

Export Control Reform 

Both the ITAR and the EAR impose 

license requirements on exports and reexports. Items not subject to the ITAR or 

to the exclusive licensing jurisdiction of 

any other set of regulations are subject 

to the EAR. A key part of the 

Administration’s Export Control Reform 

effort is to review and revise these two 

lists of controlled items to enhance 

national security so that they: (1) Are 

‘‘tiered’’ consistent with the criteria the 

U.S. Government is establishing to 

distinguish the types of items that 

should be controlled at different levels 

for different types of destinations, enduses, and end-users (‘‘Criteria’’); (2) 

create a ‘‘bright line’’ between the two 

lists to clarify jurisdictional 

determinations and reduce government 

and industry uncertainty about whether 

particular items are subject to the 

jurisdiction of the ITAR or the EAR; and 

(3) are structurally ‘‘aligned’’ so that they 

later can be combined into a single list 

of controlled items. The Department 

will seek public comment on the ‘‘bright 

line’’ methodology by means of a 

separate Federal Register notice. In the 

process of revising the USML, articles 

will be screened to determine which 

items that are currently USMLcontrolled defense articles should 

remain on the USML, which items that 

are currently USML controlled defense 

articles could be controlled under the 

CCL, and which items should be subject 

to the EAR without a specific Export 

Control Classification Number (ECCN) 

on the CCL. This proposed rule 

addresses both the need for ‘‘tiering’’ 

Category VII and the need for 

establishing a ‘‘bright line’’ between the 

USML and the CCL so that, after 

application of this process to the 

remaining categories of the USML and 

meeting the statutory and other 

requirements of Export Control Reform, 

the two lists can be combined into a 

single list of controlled items. Prior to 

the completion of a single U.S. 

Government control list, DDTC plans to 

publish in the existing ITAR a final rule 

amending Category VII after it has 

reviewed and considered all comments 

received on this proposed rule, received 

interagency input and approval, and 

satisfied its obligations under section 

38(f) of the Arms Export Control Act. 

The final rule to be published amending 

Category VII will also take in to account 

and adjust for internal cross-references 

to other USML categories that have not 

yet been reviewed or revised. DDTC will 


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follow the same process described in 

this Notice with respect to the 

remaining USML Categories on a 

category-by-category basis. 

The Department of State has revised 

Category VII to assign all controlled 

defense articles under this category one 

of the three control Criteria, that is Tier 

1 (T1), Tier 2 (T2), or Tier 3 (T3). These 

tier designations were made upon a 

government-wide assessment of the 

appropriate level of export control for 

each item based upon different types of 

destinations, end-uses, and end-users. 

As other USML categories are reviewed 

and revised, the same ‘‘tiering’’ structure 

is planned to be applied to the 

remaining USML categories. The scope 

of the three tiers is as follows: 

1. A Tier 1 control shall apply to: 

a. A weapon of mass destruction 

(WMD); 

b. A WMD-capable unmanned 

delivery system; 

c. A plant, facility or item specially 

designed for producing, processing, or 

using: 

(i) WMDs; 

(ii) Special nuclear materials; or 

(iii) WMD-capable unmanned 

delivery systems; or 

d. An item almost exclusively 

available from the United States that 

provides a critical military or 

intelligence advantage. 

2. A Tier 2 control shall apply to an 

item that is not in Tier 1, is almost 

exclusively available from Regime 

Partners or Adherents and: 

a. Provides a substantial military or 

intelligence advantage; or 

b. Makes a substantial contribution to 

the indigenous development, 

production, use, or enhancement of a 

Tier 1 or Tier 2 item. 

3. A Tier 3 control shall apply to an 

item not in Tiers 1 or 2 that: 

a. Provides a significant military or 

intelligence advantage; 

b. Makes a significant contribution to 

the indigenous development, 

production, use, or enhancement of a 

Tier 1, 2, or 3 item; or 

c. Other items controlled for national 

security, foreign policy, or human rights 

reasons. 

Tier 1 defense articles are those that 

are almost exclusively available from 

the United States and that provide a 

critical military or intelligence 

advantage. 

Tier 2 defense articles are those that 

are almost exclusively available from 

countries that are members of the 

multilateral export control regimes that 

control such items and (i) provide a 

substantial military or intelligence 

advantage, or (ii) make a substantial 

contribution to the indigenous 

development, production, use, or 

enhancement of a Tier 1 or Tier 2 item. 

Tier 3 defense articles are those that 

provide a significant military or 

intelligence advantage, or make a 

significant contribution to the 

indigenous development, production, 

use, or enhancement of a Tier 1, 2, or 

3 item. 

Additional details on the bright line 

methodology and the tiering will be 

published by a separate Department of 

State advance notice of proposed 

rulemaking which should be used to 

assist the public in reviewing the 

proposed Category VII in this notice. 

Regulatory Analysis and Notices 

Administrative Procedure Act 

This proposed amendment involves a 

foreign affairs function of the United 

States and, therefore, is not subject to 

the procedures contained in 5 U.S.C. 

553 and 554. 

Regulatory Flexibility Act 

Since this proposed amendment is not 

subject to 5 U.S.C. 553, it does not 

require analysis under the Regulatory 

Flexibility Act. 

Unfunded Mandates Reform Act of 1995 

This proposed amendment does not 

involve a mandate that will result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any year and it will not significantly 

or uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

This proposed amendment has been 

found not to be a major rule within the 

meaning of the Small Business 

Regulatory Enforcement Fairness Act of 

1996. 

Executive Orders 12372 and 13132 

This proposed amendment will not 

have substantial direct effects 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. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this proposed 

amendment does not have sufficient 

federalism implications to require 

consultations or warrant the preparation 

of a federalism summary impact 

statement. The regulations 

implementing Executive Order 12372 

regarding intergovernmental 

consultation on Federal programs and 

activities do not apply to this proposed 

amendment. 

Executive Order 12866 

This proposed amendment is exempt 

from review under Executive Order 

12866, but has been reviewed internally 

by the Department of State to ensure 

consistency with the purposes thereof. 

Executive Order 12988 

The Department of State has reviewed 

the proposed amendment in light of 

sections 3(a) and 3(b)(2) of Executive 

Order 12988 to eliminate ambiguity, 

minimize litigation, establish clear legal 

standards, and reduce burden. 

Executive Order 13175 

The Department of State has 

determined that this rulemaking will 

not have tribal implications, will not 

impose substantial direct compliance 

costs on Indian tribal governments, and 

will not pre-empt tribal law. 

Accordingly, the requirement of Section 

5 of Executive Order 13175 does not 

apply to this rulemaking. 

Paperwork Reduction Act 

This proposed amendment does not 

impose any new reporting or 

recordkeeping requirements subject to 

the Paperwork Reduction Act, 44 U.S.C. 

chapter 35. 

List of Subjects in 22 CFR Part 121 

Arms and munitions, Exports. 

Accordingly, for the reasons set forth 

above, title 22, chapter I, subchapter M, 

part 121 is proposed to be amended as 

follows: 

PART 121—THE UNITED STATES 

MUNITIONS LIST 

1. The authority citation for part 121 

will continue to read as follows: 

Authority: Secs. 2, 38, and 71, Pub. L. 90– 

629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2797); E.O. 11958, 42 FR 4311; 3 CFR, 1977 

Comp. p. 79; 22 U.S.C. 2651a; Pub. L. 105– 

261, 112 Stat. 1920. 

2. Section 121.1 is amended by 

revising U.S. Munitions List Category 

VII to read as follows: 

§ 121.1 General. The United States 

Munitions List. 

* * * * * 

Category VII—Tanks and Other 

Military Vehicles 

(a) End items, systems, accessories, 

attachments, equipment, parts, and 

components. 

(1) Armed, armored, or specialized 

vehicles, and other military equipment 

as follows: 


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* (i) (Tier 1) Vehicles ‘‘specially 

designed’’ for deploying ‘‘weapons of 

mass destruction.’’ 

* (ii) (Tier 1) Vehicles ‘‘specially 

designed’’ to mount or contain any 

system designated as Tier 1 from any 

other Category. 

* (iii) Tanks 

(A) (Tier 2) Tanks manufactured after 

1955 with any of the following: 

(1) 120 mm or larger gun; 

(2) A weapon designated as a Tier 2 

defense article; 

(3) A fire control system or sensors 

designated as a Tier 2 defense article; 

(4) Armored components or materials 

designated as Tier 2 defense articles; 

(5) An autoloader or similar assisted 

loading/round selection; 

(6) A hybrid electric propulsion drive 

system; or 

(7) Countermeasures (e.g., radar 

jamming, infrared tailored smoke, 

electromagnetic pulse generator) 

designated as Tier 2 defense articles. 

(B) (Tier 3) Tanks not specified in 

VII(a)(1)(iii)(A) and built after 1955. 

* (iv) Armored combat vehicles, 

manufactured after 1955, not specified 

in VII(a)(1)(i) through (iii), capable of 

off-road or amphibious use, mounting a 

weapon controlled in Categories II, IV or 

XVIII, and that: 

(A) (Tier 2) Have any of the following: 

(1) A weapon designated as Tier 2; 

(2) A fire control system or sensors 

designated as Tier 2; 

(3) Armored components or materials 

designated as Tier 2 defense articles; or 

(4) A hybrid electric propulsion drive 

system. 

(B) (Tier 3) Is an armored combat 

vehicle mounting a Category II, IV, or 

XVIII weapon, not controlled in 

VII(a)(1)(iv)(A). 

* (v) Armored combat support 

vehicles (e.g., personnel carriers, 

resupply vehicles, recovery vehicles, 

combat engineer vehicles, 

reconnaissance vehicles, bridge 

launching vehicles, ambulances, and 

command and control vehicles), 

manufactured after 1955, not specified 

in VII(a)(1)(i) through (iv), and capable 

of off-road or amphibious use as 

follows: 

(A) (Tier 2) Have any of the following: 

(1) Sensors or mission equipment 

designated as Tier 2; 

(2) Armored components or materials 

designated as Tier 2 defense articles; or 

(3) The same chassis/hull as the 

vehicles specified in VII(a)(1)(iii)(A) or 

(iv)(A). 

(B) (Tier 3) Combat support vehicles 

not elsewhere specified in this Category 

with armor meeting NIJ Level III or 

better. 

(vi) (Tier 2) Trucks, trailers, or 

containers with installed defense 

articles designated as Tier 2 for 

command, or communications, or 

control, intelligence, or sensor or radar 

operations, or unmanned air or ground 

vehicle control, except for vehicles 

controlled elsewhere in this Category or 

in other Categories. 

Note to paragraph (a)(1)(vi): trucks, 

trailers, or containers that do not contain 

defense articles are controlled on the 

Commerce Control List. 

(vii) Unmanned ground vehicles, 

except those controlled in VII(a)(1)(i) 

through (v), or in other Categories, that: 

(A) (Tier 2) Have mission systems, 

data links, sensors, or other defense 

articles designated as Tier 2; 

(B) (Tier 2) Mount firearms or other 

weapons not designated as Tier 1; 

(C) (Tier 2) Are capable of off-road or 

amphibious operation; or 

(D) (Tier 3) Is a vehicle otherwise 

export controlled as a military vehicle 

that has been modified for unmanned 

operation. 

Technical Note 1 to paragraph (a)(1)(vii): 

As used in this paragraph, unmanned 

vehicles include vehicles which are fitted 

with controls for either manned or 

unmanned operation. 

Technical Note 2 to paragraph (a)(1)(vii): 

Vehicles in VII(a)(1)(vii)(D) that provide 

operation beyond visual control range are 

designated for Tier 2 control. 

(2) Components, parts, assemblies, 

and associated equipment for the enditem vehicles controlled by this 

Category as follows: 

(i) (Tier 2) Control modules/circuits 

‘‘specially designed’’ for the electric 

hybrid propulsion drives for the 

vehicles specified in VII(a) of this 

Category. 

(ii) Hulls, turrets or turret rings for 

armored vehicles as follows: 

(A) (Tier 2) Hulls or turrets 

incorporating armor controlled in 

VII(c)(1), (c)(2), (c)(3)(i), (c)(7), or (c)(8); 

and turret rings ‘‘specially designed’’ for 

these hulls or turrets. 

(B) (Tier 3) Hulls or turrets not 

controlled in VII(a)(2)(ii)(A) and 

associated turret rings. 

(iii) Armor systems, components, or 

parts (e.g., active protection systems, 

plates, applique ́s, tiles) as follows: 

(A) (Tier 1) Developmental armor 

components or parts. 

(B) (Tier 2) Transparent armor 

components or parts produced from 

armor materials controlled in VII(c)(3) 

as follows: 

(1) (Tier 2) Having Em greater than or 

equal to 1.3; or 

(2) Having Em less than 1.3 and 

meeting NIJ Level III standards with 

areal density as follows: 

(i) (Tier 2) Less than or equal to 30 

pounds per square foot; or 

(ii) (Tier 3) Between 30 and 40 pounds 

per square foot. 

(C) (Tier 2) Active protection systems. 

(D) (Tier 2) Composite armor 

components or parts with Em > 1.4, not 

controlled in VII(a)(2)(v)(B). 

(E) (Tier 2) Spaced armor components 

or parts, including slat armor 

components or parts. 

(F) (Tier 2) Reactive armor 

components or parts. 

(G) (Tier 2) Electromagnetic armor 

components or parts, including pulsed 

power components or parts ‘‘specially 

designed’’ for electromagnetic armor. 

Technical Note 1 to paragraph (a)(2)(iii): 

See Notes to paragraph (c) for related armor 

descriptions and definitions. 

Technical Note 2 to paragraph (a)(2)(iii): 

VII(a)(2)(iii) also includes B kits (add-on 

armor). 

(iv) (Tier 3) Deep water fording kits 

for the vehicles controlled in this 

Category. 

(v) (Tier 2) Gun mount, stabilization, 

elevating systems or the vehicles 

controlled in this Category. 

(vi) Self-launching bridge components 

for deployment by the vehicles 

designated as Tier 2 in VII(a)(1)(v) as 

follows: 

(A) (Tier 2) Self-launching bridges 

that are rated above class 60 (as 

determined IAW SSTANAG2021/ 

QSTAG 180 or equivalent); or 

(B) (Tier 3) Self-launching bridges that 

are rated at or below class 60. 

(vii) (Tier 3) Built-in test equipment 

(BITE) ‘‘specially designed’’ to evaluate 

the condition of weapon or other 

mission systems for the vehicles 

designated as Tier 2 or above in this 

Category. Note: This control does not 

apply to BITE that provides diagnostics 

solely for a subsystem or component not 

specifically controlled in this Category. 

(viii) (Tier 2) Suspension components 

as follows: 

(A) Rotary shock absorbers specially 

designed for vehicles greater than 30 

tons. 

(B) Torsion bars ‘‘specially designed’’ 

for vehicles controlled in 

VII(a)(1)(iii)(A) having a mass of greater 

than 50 tons. 

(ix) (Tier 2) Kits to convert a vehicle 

specified in this Category into either an 

unmanned or a driver optional vehicle. 

At minimum, such a kit includes 

equipment for remote or autonomous 

steering, acceleration and braking and a 

control system. 

(x) (Tier 2) Signature management 

components or parts ‘‘specially 

designed’’ to modify the thermal, 

acoustic, radar or other electromagnetic 

signatures of the vehicles in this 

category. This does not include 


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components or parts commonly used 

with commercial vehicles (e.g., mufflers, 

resonators, electrical filters/capacitors, 

acoustic or thermal insulation). 

* (xi) (Tier 2) Gas turbine engines 

‘‘specially designed’’ for ground 

vehicles. 

(xii) (Tier 2) Hot section parts or 

components ‘‘specially designed’’ for the 

gas turbine engines in VII(a)(2)(xi). 

Note 1 to paragraph (a): For controls 

related to major systems or subsystems of the 

vehicles controlled above, see USML 

Categories I, II, III, IV, XI, XII, XIII, XIV, XV 

and XVIII. 

Note 2 to paragraph (a): Parts or 

components are controlled in this Category 

only to the extent listed in VII(a)(2). It does 

not include any ‘‘part’’ as defined in 

§ 121.8(d) of this subchapter that is not 

specifically listed. For the purposes of export 

or reexport, a parts ‘‘kit’’ that contains the 

unassembled elements of a component is 

considered a component. 

Note 3 to paragraph (a): Developmental 

vehicles are controlled at the highest tier 

associated with the functions proposed to be 

accomplished by that vehicle, and are 

controlled once the vehicle is placed in full 

scale production. 

Note 4 to paragraph (a): Vehicles are 

considered manufactured after 1955 if, at any 

time after 1955, any of the following changes 

occur: 

1. Propulsion upgrade to a formerly 

gasoline powered armored vehicle with 

either diesel or multi-fuel capability. 

2. Armor upgrade to employ reactive 

armor. 

3. Fire control upgrade with a digital 

control system. 

4. Addition of laser designator or laser 

rangefinder. 

5. Addition of autoloader or similar 

assisted loading/round selection. 

6. Increase of gun bore to larger than 90 

mm. 

7. Conversion to unmanned operation. 

Note 5 to paragraph (a): Vehicles 

manufactured in 1955 or prior that retain a 

functional weapon are controlled based on 

the Category that controls the weapon. 

(b) Test, inspection, and production 

equipment. 

(1) (Tier 2) Production equipment, tooling, 

and test equipment ‘‘specially designed’’ for 

armored vehicles designated as Tier 2 in this 

Category. 

(2) (Tier 3) Test or calibration equipment 

‘‘specially designed’’ for the articles 

controlled in this Category. 

Note 1 to paragraph (b): For production of 

major systems or subsystems, see the controls 

specific to those items in Categories II, III, IV, 

etc., or in the EAR (e.g., Armor plate 

machining equipment and tank turret bearing 

grinding machines are ‘‘subject to the EAR’’ 

and controlled in ECCN 2B018). 

Note 2 to paragraph (b): This control does 

not apply to test, inspection and production 

equipment ‘‘specially designed’’ for a 

subsystem or component not specifically 

controlled in this Category. 

(c) Materials. 

(1) (Tier 1) Developmental armor for 

the vehicles controlled in this Category. 

(2) (Tier 2) Spaced armor. 

(3) Transparent armor containing a 

transparent crystalline laminate such as 

spinel, aluminum oxynitride, or 

sapphire as follows: 

(i) (T2) Having Em greater than or 

equal to 1.3; or 

(ii) Having Em less than 1.3 and 

meeting NIJ Level III standards with 

areal density as follows: 

(A) (Tier 2) Less than or equal to 30 

pounds per square foot; or 

(B) (Tier 3) Between 30 and 40 

pounds per square foot. 

(4) (Tier 2) Transparent ceramic plate 

greater than or equal to 1⁄2′′ thick and 

larger than 8′′ x 8′′, excluding glass, for 

transparent armor. 

(5) (Tier 3) Transparent ceramic plate 

greater than 1⁄4′′ thick but less than 1⁄2′′ 

thick and larger than 8′′ x 8′′, excluding 

glass, for transparent armor. 

(6) (Tier 3) Non-transparent ceramic 

plate or blanks greater than 1⁄4′′ thick 

and larger than 8′′ x 8′′ for transparent 

armor. This includes spinel and 

aluminum oxynitride (ALON). 

(7) (Tier 2) Composite armor with Em

> 1.4 and meeting NIJ Level III or better. 

(8) (Tier 3) Metal Laminate Armor 

with Em > 1.4 and meeting NIJ Level III 

or better. 

Note 1 to paragraph (c): Composite armor 

is defined for this Category as: 

1. More than one layer of different 

materials, or 

2. A matrix composite. 

Note 2 to paragraph (c): Spaced Armors 

are metallic or non-metallic armors that 

incorporate an air space and/or obliquity or 

discontinuous material path effects as part of 

the defeat mechanism. 

Note 3 to paragraph (c): Reactive armor 

employs explosives, propellants, or other 

materials between plates for the purpose of 

enhancing plate motion during a ballistic 

event or otherwise defeating the penetrator. 

Note 4 to paragraph (c): Electromagnetic 

armor (EMA) employs electricity to defeat 

threats such as shaped charges. 

Note 5 to paragraph (c): Materials used in 

composite armor could include layers of 

metals, plastics, elastomers, fibers, glass, 

ceramics, etc. and ceramic-glass reinforced 

plastic laminates, encapsulated ceramics in a 

metallic or non-metallic matrix, functionally 

gradient ceramic-metal materials, ceramic 

balls in a cast metal matrix. 

Note 6 to paragraph (c): For this Category, 

a material is considered transparent if it 

allows 75% or greater transmission of light 

in the visible spectrum through a 1 mm thick 

nominal sample. 

Note 7 to paragraph (c): The material 

controlled in VII(c)(6) has not been treated to 

reach the 75% transmission level referenced 

in Note 6. 

Note 8 to paragraph (c): Metal laminate 

armors are two or more layers of metallic 

materials which are mechanically or 

adhesively bonded together to form an armor 

system. Em is the line-of-sight target mass 

effectiveness and provides a ratio of the 

tested armors performance to that of rolled 

homogenous armor. 

Note 9 to paragraph (c): Em is the line-ofsight target mass effectiveness ratio and 

provides a measure of the tested armor’s 

performance to that of rolled homogenous 

armor, where Em is defined as follows: 

Where: 

rRHA= density of RHA (7.85 g/cm2) 

Po = Baseline Penetration of RHA (mm) 

Pr = Residual Line of Sight Penetration, 

either positive or negative (mm RHA 

equivalent) 

ADTARGET = Line-of-Sight Areal Density of 

Target (kg/m2). 

(d) Software. 

(1) (Tier 2) Software ‘‘specially 

designed’’ for the integration or control 

of vehicle combat systems or 

subsystems, both offensive and 

defensive, that is not controlled in other 

Categories. This includes software that 

is ‘‘specially designed’’ to stabilize 

weapon motion for shooting on the 

move. 

* (2) (Tier 2) Software, algorithms, and 

modules ‘‘specially designed’’ for the 

design of ballistic armor protection for 

vehicles controlled in VII(a)(1)(iii) 

through (v). 

(3) (Tier 2) Software ‘‘specially 

designed’’ for controlling the gas turbine 

engines controlled in this Category. 

(4) (Tier 2) Software containing the 

control laws or algorithms for 

unmanned ground vehicles controlled 

in this Category. 

(5) (Tier 2) Built-in test and diagnostic 

software ‘‘specially designed’’ for builtin test equipment controlled in 

VII(a)(2)(vii). 

(6) (Tier 2) Software ‘‘specially 

designed’’ for autonomic logistics for the 

vehicles controlled in this Category that 

are designated as Tier 2. 

* (7) (Tier 1) Software ‘‘specially 

designed’’ for the design, production, or 

use of articles controlled in this 

Category that are designated as Tier 1. 

* (8) (Tier 2) Software ‘‘specially 

designed’’ for the design, production, or 


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76934 Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 / Proposed Rules 

use of articles specified in this Category 

that are designated as Tier 2. 

(9) (Tier 2) Software ‘‘specially 

designed’’ for the electric hybrid 

propulsion drive control modules/ 

circuits specified in VII(a)(2)(i) of this 

Category. 

Note paragraph (d): This Category does not 

control software for major systems, 

subsystems, parts or components controlled 

in other Categories or that are incorporated 

into an end item. For controls of major 

systems or subsystems of the vehicles 

controlled under paragraph (a) of this 

Category, see USML Categories I, II, III, IV, 

VIII, XI, XII, XIII, XIV, XV, and XVIII. See 

also controls on related simulation and 

training items in Category IX. 

(e) Technology. 

* (1) Design or manufacturing 

technology ‘‘required’’ for the articles 

controlled in this Category as follows: 

(i) (Tier 1) Design or manufacturing 

technology ‘‘required’’ for articles 

controlled in this Category designated as 

Tier 1. 

(ii) (Tier 1) Design or manufacturing 

technology ‘‘required’’ for armor 

materials specified in VII(c) and armor 

systems, components, or parts specified 

in VII(a)(2)(iii) of this Category. 

(iii) (Tier 1) Design or manufacturing 

technology ‘‘required’’ for rotary shock 

absorbers or torsion bars for vehicles 

specified in VII(a)(1)(iii)(A) having a 

mass greater than 50 tons. This includes 

design technology ‘‘required’’ for the 

complete suspensions incorporating the 

shock absorbers and torsion bars. 

(iv) (Tier 1) Design or manufacturing 

technology ‘‘required’’ for armored 

vehicle hulls for vehicles designated as 

Tier 2 or better controlled in this 

Category. 

(v) (Tier 2) Design or manufacturing 

technology ‘‘required’’ for articles 

controlled in this Category and not 

elsewhere specified. 

* (2) Test technology as follows: 

(i) (Tier 1) Test technology directly 

related to defense articles designated as 

Tier 1 and controlled in this Category. 

(ii) (Tier 1) Test technology directly 

related to armor materials specified in 

VII.C and armor systems, components, 

or parts specified in VII(a)(2)(v) of this 

Category. 

(iii) (Tier 1) Test technology directly 

related to armored vehicle hull design 

for vehicles designated as Tier 2 or 

better controlled in this Category. 

(iv) (Tier 2) Test technology directly 

related to developmental vehicles 

controlled in this Category or to other 

vehicles designated as Tier 2 that are 

controlled in this Category. 

(v) (Tier 3) Test technology, not 

elsewhere specified, directly related to 

defense articles controlled in this 

Category. 

(3) Technology ‘‘required’’ for the 

operation, maintenance, and repair of 

the vehicles controlled in this Category 

as follows: 

(i) (Tier 1) Technology ‘‘required’’ for 

maintenance or operation on any 

defense article designated as Tier 1 and 

controlled in this Category. 

(ii) (Tier 2) Technology ‘‘required’’ for 

intermediate or depot level maintenance 

of any defense article designated as Tier 

2 or 3 and controlled in this Category. 

(iii) (Tier 3) Operator or 

organizational level maintenance or 

repair technology ‘‘required’’ for any 

defense article controlled in this 

Category. 

(iv) (Tier 3) Operation manuals for 

any defense article controlled in this 

Category. 

Note to paragraph (e): This Category does 

not control technology for major systems or 

subsystems or subsystems controlled in other 

Categories or incorporated into the end item. 

For controls of major systems or subsystems 

of the vehicles specified in (a) of this 

Category, see USML Categories I, II, III, IV, 

VIII, XI, XII, XIII, XIV, XV, and XVIII. See 

also controls on related simulation and 

training items in Category IX. 

(f) Defense services. 

* (1) (Tier 1) Providing assistance in 

the design, development, production or 

depot level maintenance on any defense 

article designated as Tier 1 in this 

Category. 

* (2) (Tier 2) Providing assistance in 

the design, development, production or 

intermediate or depot level maintenance 

on any defense article designated as Tier 

2 in this Category. 

(3) (Tier 2) Providing training or 

advice in the tactical employment of the 

vehicles designated as Tier 1 or Tier 2 

and controlled in this Category. 

(g) Manufacturing or production. 

(1) (Tier 1) Granting a right or license 

to manufacture any defense article 

designated as Tier 1 in this Category. 

(2) (Tier 1) Granting a right or license 

to manufacture any defense article 

designated as Tier 2 in this Category. 

(3) (T2) Granting a right or license to 

manufacture any defense article 

designated as Tier 3, enumerated in 

VII(a)(1)(iii) through VII(a)(2)(v) and 

VII(a)(2)(vii). 

(4) (T2) Granting a right or license to 

manufacture any other defense article 

designated as Tier 3 in (a) in this 

Category. 

(h) Defined terms. 

(1) Certain terms used in the category: 

(i) Specially designed. The term 

‘‘specially designed’’ means that the enditem, equipment, accessory, attachment, 

system, component, or part (see ITAR 

§ 121.8); or ‘‘software’’; has properties 

that: 

(A) Distinguish it for certain 

predetermined purposes, 

(B) Are directly related to the 

functioning of a defense article, and 

(C) Are used exclusively or 

predominantly in or with a defense 

article identified on the USML. 

(ii) Required. As applied to 

technology, refers to only that portion of 

technology which is peculiarly 

responsible for achieving or exceeding 

the controlled performance levels, 

characteristics or functions. Such 

‘‘required’’ technology may be shared by 

different products. 

(iii) Weapon of mass destruction. Any 

destructive device or weapon that is 

designed or intended to cause death or 

serious bodily injury through the 

release, dissemination, or impact of 

toxic or poisonous chemicals, or their 

precursors, any weapon involving a 

biological agent, toxin, or vector, or any 

weapon that is designed to release 

radiation or radioactivity at a level 

dangerous to human life. This includes, 

but is not limited to: 

(A) Nuclear explosive devices and 

their major sub-systems; 

(B) Chemicals covered by Schedule I 

of the Chemical Weapons Convention; 

and 

(C) Biological agents and biologically 

derived substances specifically 

developed, configured, adapted, or 

modified for the purpose of increasing 

their capability to produce casualties in 

humans or livestock, degrade 

equipment, or damage crops. 

(2) Certain terms defined in the 

Export Administration Regulations 

(contained in 15 CFR chapter VII, 

subchapter C) that may be related to 

Category VII: 

‘‘Software.’’ (Cat: all)—A collection of 

one or more ‘‘programs’’ or 

‘‘microprograms’’ fixed in any tangible 

medium of expression. 

‘‘Program.’’ (Cat 2, 4, and 6)—A 

sequence of instructions to carry out a 

process in, or convertible into, a form 

executable by an electronic computer. 

‘‘Microprogram.’’ (Cat 4 and 5)—A 

sequence of elementary instructions, 

maintained in a special storage, the 

execution of which is initiated by the 

introduction of its reference instruction 

into an instruction register. 

‘‘Technology.’’ (General Technology 

Note)—Specific information necessary 

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

‘‘use’’ of a product. The information 

takes the form of ‘‘technical data’’ or 

‘‘technical assistance.’’ Controlled 

‘‘technology’’ is defined in the 

Commerce Control List (Supplement 

No. 1 to 15 CFR part 774). 

Note: Technical assistance—May take 

forms such as instruction, skills training, 


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Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 / Proposed Rules 76935 

working knowledge, consulting services. 

‘‘Technical assistance’’ may involve transfer 

of ‘‘technical data.’’ 

‘‘Technical data.’’—May take forms such as 

blueprints, plans, diagrams, models, 

formulae, tables, engineering designs and 

specifications, manuals and instructions 

written or recorded on other media or 

devices such as disk, tape, read-only 

memories. 

Dated: December 1, 2010. 

Ellen O. Tauscher, 

Under Secretary, Arms Control and 

International Security, Department of State. 

[FR Doc. 2010–31158 Filed 12–8–10; 4:15 pm] 

BILLING CODE 4710–25–P 

DEPARTMENT OF STATE 

22 CFR Part 121 

RIN 1400–AC78 

[Public Notice: 7257] 

Revisions to the United States 

Munitions List 

AGENCY: Department of State. 

ACTION: Advance notice of proposed 

rulemaking. 

SUMMARY: As part of the President’s 

export control reform initiative, the 

Directorate of Defense Trade Controls 

(DDTC) seeks public comment on 

revisions to the United States Munitions 

List (USML) that would make it a 

‘‘positive list’’ of controlled defense 

articles, requests that the public ‘‘tier’’ 

defense articles based on the 

Administration’s three-tier control 

criteria, and identify those current 

defense articles that the public believes 

do not fall within the scope of any of the 

criteria’s tiers. A ‘‘positive list’’ is a list 

that describes controlled items using 

objective criteria rather than broad, 

open-ended, subjective, or design 

intent-based criteria. DDTC is not 

seeking with this advance notice of 

proposed rulemaking (ANPRM) input 

on whether particular defense articles 

should or should not be controlled on 

the USML or whether any defense 

articles should be controlled differently. 

Rather, it is only seeking with this 

ANPRM input on how the USML can be 

revised so that it clearly describes what 

is subject to the jurisdiction of the 

International Traffic in Arms 

Regulations (ITAR), how defense 

articles are identified by tier, and what 

current defense articles do not fall 

within the scope of any of the tiers. 

Guidelines for revision of the USML 

toward this end are provided in this 

ANPRM. Please see the proposed rule 

published elsewhere in this issue of the 

Federal Register for an example of a 

USML Category that has been revised in 

this manner. 

DATES: Comments must be received by 

February 8, 2011. 

ADDRESSES: Interested parties may 

submit comments within 60 days of the 

date of the publication by any of the 

following methods: 

• E-mail: 

DDTCResponseTeam@state.gov with the 

subject line, ‘‘USML—Positive List.’’ 

• Mail: PM/DDTC, SA–1, 12th Floor, 

Directorate of Defense Trade Controls, 

Office of Defense Trade Controls Policy, 

ATTN: USML—Positive List, Bureau of 

Political Military Affairs, U.S. 

Department of State, Washington, DC 

20522–0112. 

• Persons with access to the Internet 

may also view this ANPRM by searching 

for its RIN on the U.S. Government 

regulations Web site at http:// 

regulations.gov/index.cfm. 

FOR FURTHER INFORMATION CONTACT: 

Director Charles B. Shotwell, Office of 

Defense Trade Controls Policy, 

Department of State, Telephone (202) 

663–2792 or Fax (202) 261–8199; E-mail 

DDTCResponseTeam@state.gov, ATTN: 

USML—Positive List. 

SUPPLEMENTARY INFORMATION: 

Existing Controls 

The Directorate of Defense Trade 

Controls (DDTC), U.S. Department of 

State, administers the International 

Traffic in Arms Regulations (ITAR) (22 

CFR parts 120–130). The items subject 

to the jurisdiction of the ITAR, i.e., 

‘‘defense articles,’’ including related 

technical data, and ‘‘defense services,’’ 

are identified on the ITAR’s U.S. 

Munitions List (USML) (22 CFR 121.1). 

With few exceptions, items that are not 

subject to the export control jurisdiction 

of the ITAR are subject to the 

jurisdiction of the Export 

Administration Regulations (EAR), 15 

CFR Parts 730–774. The Bureau of 

Industry and Security (BIS), U.S. 

Department of Commerce, administers 

the EAR, which include the Commerce 

Control List (CCL) (15 CFR part 774). 

The descriptions in many USML 

categories are general and include 

design intent as a reason for an item to 

be controlled. The descriptions in most 

CCL categories are specific and 

generally include technical parameters 

for an item to be controlled. 

Export Control Reform 

A key part of the Administration’s 

Export Control Reform effort is to 

review and revise both the ITAR and the 

CCL to enhance national security so that 

they: (1) Are ‘‘tiered’’ consistent with the 

criteria the U.S. Government has 

established to distinguish the types of 

items that should be controlled at 

different levels for different types of 

destinations, end-uses, and end-users; 

(2) create a ‘‘bright line’’ between the two 

lists to clarify jurisdictional 

determinations and reduce government 

and industry uncertainty about whether 

a particular item is subject to the 

jurisdiction of the ITAR or the EAR; and 

(3) are structurally ‘‘aligned’’ so that they 

can eventually be combined into a 

single control list. 

The Administration has determined 

that these changes are necessary to 

better focus its resources on protecting 

those items that need to be protected, to 

end jurisdictional confusion between 

the ITAR and EAR, and to provide 

clarity to make it easier for exporters to 

comply with the regulations and for the 

U.S. Government to administer and 

enforce them. 

In order to accomplish the three 

above-referenced tasks simultaneously, 

the USML and, to a lesser degree, the 

CCL must be revised so that they are 

aligned into ‘‘positive lists.’’ A ‘‘positive 

list’’ is one that describes controlled 

items using objective criteria such as 

horsepower, microns, wavelength, 

speed, accuracy, hertz or other precise 

descriptions rather than broad, openended, subjective, or design intentbased criteria. 

The U.S. Government has developed 

a methodology to transition the current 

control lists to this new structure. This 

methodology includes guidance on how 

to articulate the parameters for the items 

controlled and criteria to be used to 

screen these items to determine their 

tier of control. The full draft 

methodology that was developed for 

internal use by the U.S. Government 

was provided to the Department of 

State’s Defense Trade Advisory Group 

(DTAG) as well as to the Department of 

Commerce’s Technical Advisory 

Committees as it was being finalized. 

The full text is not included in this 

notice, as aspects are beyond the scope 

of the request for public comment; 

however, the full text is available for 

public review on the DDTC Web page at 

http://www.pmddtc.state.gov/DTAG/ 

index.html. 

This notice provides a summary of the 

full methodology and the full text of its 

guidance for building a ‘‘positive’’ list to 

order to request input from the public 

on this key feature of the control list 

reform. 

Request for Comments 

As the U.S. Government continues its 

work on preparing proposed revisions to 

the USML, it seeks public input on how 

best to describe the USML in a positive 


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