35276 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

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

774 

[Docket No. 100923470–1230–03] 

RIN 0694–AF03 

Export Control Reform Initiative: 

Strategic Trade Authorization License 

Exception 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final Rule. 

SUMMARY: This rule adds a new license 

exception to the Export Administration 

Regulations (EAR) that authorizes the 

export, reexport, and transfer (incountry) of specified items to 

destinations that pose relatively low risk 

that those items will be used for a 

purpose that license requirements are 

designed to prevent. Use of the 

exception is conditioned upon the 

creation and exchange by the parties to 

the transaction of notifications and 

statements designed to provide 

assurance against diversion of such 

items to other destinations. The 

exception is only relevant to exports, 

reexports, and transfers for which a 

license is required under the EAR. Thus, 

if the EAR do not impose an obligation 

to apply for and receive a license before 

exporting, reexporting, or transferring 

an item subject to the EAR, STA is not 

relevant to the transaction. The 

exception does not alter any of the 

General Prohibitions in the EAR against 

unlicensed exports, reexports, or 

transfers to proscribed end users, end 

uses, or destinations. This rule, has been 

cleared by several departments, 

including Defense, State, Homeland 

Security, and Justice. This 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 that the President 

announced in August 2009. 

DATES: Effective date June 16, 2011. 

FOR FURTHER INFORMATION CONTACT: 

William Arvin, Regulatory Policy 

Division, Bureau of Industry and 

Security, william.arvin@bis.doc.gov or 

202–482–2440. 

SUPPLEMENTARY INFORMATION: 

Background 

The Administration’s Export Control 

Reform Initiative 

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., August 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-obamalaysfoundation-a-new-exportcontrolsystem-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 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 involve short-and medium-term 

adjustments to the current export 

control system, with a focus on 

establishing harmonized control lists 

and processes among the Departments 

of Commerce, State, and the Treasury to 

the extent practicable in order to 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 enforcement walls around the 

most sensitive items in order to enhance 

national security. 

A New License Exception as an Initial 

Step in Reform 

License Exception Strategic Trade 

Authorization (STA) authorizes, with 

conditions, the export, reexport and 

transfer (in-country) of specified items 

to destinations that pose relatively low 

risk of unauthorized uses. To safeguard 

against reexports to destinations that are 

not authorized under License Exception 

STA, License Exception STA imposes 

certain notification and consignee 

statement requirements. The exception 

does not alter any of the General 

Prohibitions in the EAR against exports, 

reexports, or transfers to proscribed end 

users, end uses, or destinations. Under 

the direction of the Office of 

Management and Budget, this rule was 

reviewed and cleared by the 

Departments of Defense, State, Energy, 

the Treasury, Homeland Security, and 

Justice. 

The exception is only relevant to 

exports, reexports, and transfers for 

which a license is required under the 

EAR. Thus, if the EAR do not impose an 

obligation to apply for and receive a 

license before exporting, reexporting, or 

transferring an item subject to the EAR, 

STA is not relevant to the transaction. 

For exports, reexports, and transfers 

where STA is relevant, its use is 

optional. Parties may use other license 

exceptions that authorize a planned 

transaction or apply for a license if they 

prefer to do so. 

On December 9, 2010, BIS issued a 

proposed rule (75 FR 76653) describing 

the proposed new License Exception 

STA that would be an initial step in the 

Export Control Reform Initiative. BIS 

received 41 submissions commenting on 

the proposed rule. They are available for 

review at: http://www.regulations.gov 

(ID # BIS–2010–0038) and on http:// 

efoia.bis.doc.gov/pubcomm/records-ofcomments/record_of_comments_sta.pdf. 

This final rule implements License 

Exception STA. It reflects review and 

analysis of the public comments. A 

summary of the comments and 

responses are provided below under 

‘‘Review of Public Comments.’’ 

Summary of Changes in the Final Rule 

as Compared to the Proposed Rule 

Releases of software source code and 

technology: Section 740.20 makes 

specific reference to releases within a 

single country of software source code 

and technology to foreign nationals and 

provides a different notification 

procedure than that required for 

exports, reexports and other in country 

transfers. These changes are in response 

to public comments. They are described 

below under the topic heading ‘‘review 

of public comments.’’ 

Clarification of terminology in 

§ 740.20: The term ‘‘transactions’’ in 

§ 740.20 has been replaced with the 

more explicit ‘‘exports, reexports and in 

country transfers’’ to avoid confusion 

that might otherwise arise when a single 

shipment or single sale includes some 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35277 

items that are subject to License 

Exception STA and some that are not. 

Items in such shipment or sale that are 

not being exported, reexported or 

transferred pursuant to License 

Exception STA need not meet the 

requirements of License Exception STA. 

Notification to consignee, consignee 

statement and destination control 

statement: The revised provisions of 

§ 740.20(d) are based on consideration 

of the public’s comments regarding the 

proposed notification requirements. The 

final rule retains the requirement to 

furnish to the consignee the ECCN of 

each item to be shipped to the 

consignee, but does not require that the 

ECCN be furnished for every successive 

shipment of the item at issue to the 

same consignee so long as the ECCN 

remains accurate. In addition, one 

consignee statement may be used for 

multiple shipments. The final rule, 

however, requires the exporter, 

reexporter, or transferor to keep a log or 

other written record that identifies each 

shipment made under License 

Exception STA and identifies the 

specific consignee statement that is 

associated with each shipment. In 

addition, the destination control 

statement described in the proposed 

rule is replaced with a more general 

notice requirement. The changes are 

described below under the topic 

heading ‘‘Final Rule Revisions to 

License Exception STA Safeguards.’’ As 

revised, § 740.20(d) provides the proper 

assurances that items shipped under 

License Exception STA will remain 

within the group of low risk 

destinations without posing excessive 

and complex burdens on parties trading 

in items subject to the EAR. 

STA paragraphs: Based on a 

suggestion in the public comments, the 

STA license exception paragraphs in 49 

ECCNs have been revised to state more 

clearly that they apply only to the 

destinations listed in paragraph (c)(2) of 

§ 740.20 and not to STA as a whole. 

This change is described below under 

the topic heading ‘‘review of public 

comments.’’ 

Removal of EI eligibility: Items 

controlled for encryption (EI) reasons 

are ineligible for License Exception 

STA, because of a determination that 

License Exception STA is not the 

appropriate approach to addressing the 

government interests in encryption 

export controls. Accordingly, BIS will 

address encryption-related aspects of 

the Export Control Reform Initiative 

separately. 

Removal of pathogen and toxin 

eligibility: Items described in ECCNs 

1C351.a, .b, .c, d.5, .d.6 or .e; 1C352; 

1C353; 1C354; 1C360; 1E001 (for 

1C351.a, .b, .c, .d.5, .d.6 or .e, 1C352, 

1C353, 1C354 or 1C360) or in ECCN 

1E351 may not be exported, reexported, 

or transferred under the authority of 

License Exception STA. The potential of 

these items to make a direct 

contribution to the creation of weapons 

of mass destruction and United States 

Government policy to deter the spread 

of chemical and biological weapons 

warrants excluding them from STA 

eligibility. 

Items in ECCN 1C351.d.1, .2, .3, .4, .7, 

.8, .9, or .10 may be exported, 

reexported, or transferred under the 

authority of License Exception STA in 

quantities up to 100 milligrams of any 

one toxin per shipment and no more 

than six shipments may be sent to any 

one end user in any one calendar year. 

Unlike the items described in the 

previous paragraph, the items described 

in the ECCNs identified in this 

paragraph have more widespread 

commercial and medical applications 

and are not of a type that can be used 

to generate or grow large quantities of 

the toxin. The quantity and frequency 

cap in this aspect of STA is designed to 

allow for shipments under the exception 

to destinations of relatively low risk for 

appropriate end uses, but not allow for 

even the potential of unapproved 

stockpiling of such items in amounts 

that would create proliferation threats. 

Modifications to License Exception 

GOV: Supplement No. 1 to § 740.11 is 

revised to remove the prohibition on use 

of License Exception GOV to export 

items controlled for chemical and 

biological weapons reasons (CB) to 

agencies of cooperating governments (as 

defined in § 740.11(b)(3)(ii) of the EAR) 

and to their embassies and consulates 

(as defined in § 740.11(b)(2)(iv) of the 

EAR) located in Country Group B (Supp. 

No. 1 to part 740 of the EAR). This 

change is needed to facilitate the export 

of pathogens and toxins to governments 

of cooperating countries to facilitate 

collaborative responses to outbreaks of 

disease, whether man-made or naturally 

occurring, in the absence of eligibility 

under License Exception STA as noted 

above. 

Removal of certain gas turbine engine 

related software and technology 

eligibility: Section 740.20 is revised to 

make the following software and 

technology ineligible for license 

exception STA. 

(A) License Exception STA may not 

be used for 9D001 or 9D002 ‘‘software’’ 

that is specially designed or modified 

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

of: 

• Components of engines controlled 

by ECCN 9A001 if such components 

incorporate any of the ‘‘technologies’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines), 9E003.h; or 

• Equipment controlled by 9B001. 

(B) License Exception STA may not be 

used for 9D001 ‘‘software’’ that is 

specially designed or modified for the 

‘‘development’’ of ‘‘technology’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines) or 9E003.h. 

(C) License Exception STA may not be 

used for 9D004.f or 9D004.g ‘‘software’’. 

(D) License Exception STA may not 

be used for 9E001 ‘‘technology’’ 

according to the General Technology 

Note for the ‘‘development’’ of 9A001.b 

engines or components of engines 

controlled by 9A001.b if such 

components incorporate: 

• Any of the ‘‘technologies’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines) or 9E003.h; or 

• Any of the 9D001 or 9D002 software 

in paragraphs (A) or (B) above. 

(E) License Exception STA may not be 

used for 9E002 ‘‘technology’’ according 

to the General Technology Note for the 

‘‘production’’ of components of engines 

controlled by 9A001.b if such 

components incorporate any of the 

‘‘technologies’’ controlled by 9E003.a.1, 

9E003.a.2, 9E003.a.3, 9E003.a.4, 

9E003.a.5, 9E003.c, 9E003.i (other than 

technology for fan or power turbines), 

9E003.h. 

(F) License Exception STA may not be 

used for ‘‘technology’’ in 9E003.a.1, 

9E003.a.2, 9E003.a.3, 9E003.a.4, 

9E003.a.5, 9E003.c, 9E003.i (other than 

technology for fan or power turbines) or 

9E003.h. 

A review of gas turbine engine 

technology has been unable to establish 

a satisfactory method of distinguishing 

the foregoing gas turbine engine 

technology and software that is within 

the scope of Tier 1 from such 

technology that is within the scope of 

Tier 2 (See 75 FR 76665, December 9, 

2010 for an explanation of the Tier 1 

and Tier 2 criteria). Accordingly, such 

technology and software may not be 

exported under the authority of License 

Exception STA. 

Removal of Unneeded License 

Exception STA Paragraph From ECCN 

7D002 

License Exception STA paragraphs 

appeared in 50 ECCNs in the proposed 

rule. Those paragraphs identified items 

that may not be shipped under License 

Exception STA authorizing paragraph 

(c)(2) (§ 740.20(c)(2) of the EAR). In both 


jlentini on DSK4TPTVN1PROD with RULES2
35278 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

the proposed rule and this final rule the 

License Exception STA paragraphs in 

the ECCNs have no effect on authorizing 

paragraph (c)(1) of STA. Because 

software covered by ECCN 7D002 is 

controlled for missile technology 

reasons (MT), such software is ineligible 

for either authorizing paragraph (c)(1) or 

authorizing paragraph (c)(2) of License 

Exception STA. This final rule 

accordingly does not include a License 

Exception STA paragraph in ECCN 

7D002. 

Clarification of Applicability of Missile 

Technology Controls to ECCN 7E001 

and 7E002 

ECCNs 7E001 and 7E002 apply inter 

alia to technology for the development 

and production of equipment controlled 

by ECCNs 7A001, 7A002 and 7A003.d. 

ECCNs 7E001 and 7E002 impose a 

national security reason for control on 

all of the technology that they cover and 

apply a missile technology reason for 

control to technology for the 

development or production of 

equipment controlled for missile 

technology reasons. ECCNs 7A001, 

7A002 and 7A003.d impose a national 

security reason for control on all of the 

equipment that they cover and impose 

a missile technology reason for control 

on such equipment if the equipment 

meets the parameters of ECCN 7A101, 

7A102, or 7A103. That pattern is the 

reverse of the pattern that prevails in the 

Commerce Control List, where an item 

that is subject to an ECCN with a lower 

number as the third character generally 

would not also be subject to an ECCN 

with a higher number as the third 

character. To guard against the 

possibility that readers will, as a result 

of this unusual pattern, erroneously 

conclude that certain 7E001 and 7E002 

technology is not subject to the missile 

technology reason for control, this rule 

adds a sentence to the license 

requirements sections of ECCN 7E001 

and 7E002 reminding readers that 

technology for 7A001, 7A002 and 

7A003.d equipment is subject to the 

missile technology reason for control if 

that equipment meets the parameters of 

7A101, 7A102 or 7A103. 

Revisions to Eligible Destinations and 

Removal of Civil End-Use Requirement 

In this final rule, 36 countries are 

included in § 740.20(c)(1), which 

authorizes exports, reexports and in 

country transfers that are subject to 

multiple reasons for control. Eight 

destinations are included in 

§ 740.20(c)(2), which authorizes export, 

reexports and in country transfers that 

are subject to national security reasons 

for control. The paragraph (c)(1) 

destinations are: 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, and the United 

Kingdom. The paragraph (c)(2) 

destinations are: Albania, Hong Kong, 

India, Israel, Malta, Singapore, South 

Africa, and Taiwan. This final rule also 

removes the civil end use requirement 

that the proposed rule applied to 

destinations listed in paragraph (c)(2). 

Preclusion of License Exception APR 

paragraph (b) in addition to paragraph 

(a): As published in the proposed rule, 

this final rule precludes use of License 

Exception APR paragraph (a) 

(§ 740.16(a) of the EAR) for items that 

have been shipped pursuant to License 

Exception STA. Also as published in the 

proposed rule, this final rule requires 

consignees in subsequent exports, 

reexports and in country transfers 

authorized by License Exception STA to 

acknowledge that preclusion. However, 

paragraph (b) of License Exception APR 

authorizes reexports to most of the 

destinations authorized by License 

Exception STA and does not require 

such notice. Thus, under the proposed 

rule, a party could receive via APR an 

item that previously had been shipped 

under STA and would be unaware of 

the preclusion. To remedy this 

inconsistent result, this final rule 

revises § 740.20 to preclude the use of 

License Exception APR paragraph (b) if 

an item previously has been shipped 

under License Exception STA and to 

add acknowledgement of that 

preclusion to the consignee statement 

required under License Exception STA. 

Resolution of items under 

consideration for Tier 1. 

The preamble to the proposed rule 

stated the U.S. Government was 

considering whether the following 

ECCNs, in whole or part: 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 and the technology 

ECCNs related to them, met the Tier 1 

criteria and thus would be excluded 

from the scope of License Exception 

STA. Commenters on the proposed rule 

addressed 1A002, 3A001, 6A001, 

6A002, 6A003, 6A005, 7A004, 8A001, 

9A001, 9A004, 9A018, 1E001, 6E002, 

and 9E003. Generally, those comments 

provided support that certain specific 

items covered by those ECCNs are 

widely available from suppliers abroad, 

including suppliers in destinations not 

eligible to receive items under License 

Exception STA under the proposed rule. 

Because planned export control tiers 

have not yet been established, nothing 

can formally be assigned to an export 

control tier at this time. However, after 

reviewing the public comments and 

consulting with other government 

agencies, BIS has concluded that the 

ECCNs, or portions thereof, that should 

be removed from the scope of STA at 

this time are those identified in 

§ 740.20(b)(2) of this final rule. 

Continuing efforts to improve export 

controls and refine License Exception 

STA. 

As part of the President’s Export 

Control Reform Initiative, the process of 

identifying the appropriate export 

control tier for each item on the 

Commerce Control List will continue. In 

addition, agencies will continue to 

study two specific issues related License 

Exception STA. 

One issue is whether some ‘‘build to 

print technology’’ related to gas turbine 

engine components and controlled 

under ECCN 9E002 can be made eligible 

for License Exception STA while 

excluding more critical technology. In 

this instance, the term ‘‘build to print 

technology’’ refers to information that 

describes the physical and dimensional 

characteristics of a component, but does 

not reveal how to perform the processes 

that are used to produce a component 

with those physical and dimensional 

characteristics. 

Another issue for further review is 

whether technology controlled under 

ECCN 2E003.f related to the application 

of certain coatings is, in whole or in 

part, appropriate for exclusion from 

License Exception STA. 

Review of Public Comments 

Public Comments 

Some commenters remarked on the 

overall nature of License Exception 

STA. Many favored the concept in 

general and some noted that their own 

organizations likely would require fewer 

licenses as a result of STA. Others 

indicated that, as proposed, STA would 

provide little or no utility for their 

organizations. Some suggested specific 

changes or clarifications to STA or other 

steps that BIS could take in addition to 

or in lieu of License Exception STA. 

These ideas and BIS’s responses are 

discussed below. 

Comments related to the general 

utility and feasibility of License 

Exception STA. 

Comment 1: Commenters’ opinions 

were divided on the utility of STA. 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35279 

Some believed that the license 

exception would substantially reduce 

the number of licenses needed by their 

organizations; others indicated that it 

would result in little or no change with 

respect to their transactions that are 

subject to the EAR. 

Response: BIS recognizes that License 

Exception STA does not address all 

issues of public concern or even all 

issues that have been identified as 

pointing to a need for export control 

reform. As noted in the preamble to the 

proposed rule, License Exception STA 

is only one step in the Administration’s 

Export Control Reform Initiative. Other 

measures will be needed to effect the 

remaining aspects of that initiative. 

Comment 2: One commenter stated 

that STA provides no real benefit that is 

not already obtainable under License 

Exception GBS and that the latter lacks 

the documentation requirements and 

restrictions of STA. Several commenters 

indicated that they thought the 

restrictions and documentation 

requirements under STA would limit its 

utility. 

Response: BIS agrees that parties who 

engage only in transactions that 

currently do not require licenses or that 

currently are eligible for License 

Exception GBS would not benefit from 

License Exception STA. A party may 

continue to use License Exception GBS 

to the extent the export at issue is 

within the scope of that exception. 

However, because License Exception 

STA is available for more ECCNs than 

is License Exception GBS, some parties 

will benefit from this new license 

exception. 

Comment 3: Several commenters 

expressed concern that STA did not go 

far enough and cited unnamed 

‘‘government officials’’ as having 

predicted that STA will replace GBS 

once the State and Commerce lists are 

merged. 

Response: BIS currently has no plan 

to remove License Exception GBS from 

the EAR. Determining whether GBS will 

be needed in a regulatory scheme based 

on a single control list is premature and 

beyond the scope of the proposed rule. 

Comment 4: Some commenters 

expressed concern that without broader 

license exceptions, BIS might be unable 

to handle the volume of licenses that it 

is likely to encounter once certain items 

are transferred from the United States 

Munitions List to the Commerce Control 

List. These commenters stated that 

although BIS’s projection of License 

Exception STA replacing over 3,000 

licenses annually is not insignificant, it 

is ‘‘not a large portion of the low risk 

licensing volume currently facing BIS.’’ 

Finally, these commenters stated that 

the State Department faced a 10,000 

case backlog in 2007 and recommended 

that BIS proactively address potential 

increases in exports and minimize 

transaction-by-transaction authorization 

requirements in order to avoid a similar 

situation. 

Response: BIS recognizes that a 

transfer of a large number of items from 

the United States Munitions List to the 

Commerce Control List could 

significantly increase BIS’s workload 

and, without adequate preparation, 

could result in backlogs and delays. BIS 

is working to develop means for 

addressing those concerns. However, 

License Exception STA is intended to 

provide a more efficient method of 

shipping items currently subject to the 

EAR to destinations that present a 

relatively low risk of diversion. 

Concerns about future transfers of items 

from the United States Munitions List 

are beyond the scope of the proposed 

rule. 

Comment 5: Some commenters on 

this topic proposed a range of changes 

to the EAR other than License Exception 

STA to address to the perceived need 

for fewer situations in which 

transaction-by-transaction authorization 

is required. Such proposals were: (i) 

Simply removing license requirements 

by removing X’s from the boxes in the 

Country Chart table [Supp. No. 1 to part 

738 of the EAR]; (ii) broadening the 

validated end-user program; (iii) 

creating an open general license similar 

to that used by the United Kingdom; 

and (iv) creating an intra-company 

transfer license that imposes fewer 

requirements on users than BIS’s 2008 

proposal on that subject. 

Response: License Exception STA is 

intended as an initial step in a broad 

export control reform effort. It 

recognizes, consistent with U.S. 

international commitments, a limited 

group of destinations in which the risk 

of diversion to unauthorized 

destinations, parties or uses is low. It 

also imposes certain safeguards to 

provide reasonable assurance that items 

exported, reexported, or transferred 

pursuant to STA will not be diverted 

outside that group. Each of the types of 

proposed revisions noted above was 

considered. BIS ultimately determined 

that a license exception approach is the 

best way to address the goals of this 

aspect of the reform effort, which 

primarily include reducing the licensing 

burden with respect to exports to a 

limited group of destinations, consistent 

with U.S. international commitments, 

without a wholesale revision of the 

EAR, creating a method of notifying 

foreign consignees about the 

prohibitions on reexports outside such 

destinations, avoiding unintentionally 

re-imposing previously removed 

controls, and creating records sufficient 

for monitoring and enforcement of 

parties’ compliance with the conditions 

and obligations of STA. 

Comments Regarding Clarity 

Comment 6: One commenter stated 

that the effects of License Exception 

STA on encryption are unclear and 

asked whether License Exception ENC 

reporting requirements apply to an 

encryption item exported under License 

Exception STA. 

Response: The final rule does not 

permit items controlled for encryption 

reasons to be exported, reexported or 

transferred under License Exception 

STA. Accordingly, any lack of clarity on 

this point that may have been present in 

the proposed rule need not be addressed 

in the final rule. 

Comment 7: One commenter stated 

that BIS needs to make clear that items 

controlled for antiterrorism (AT) reasons 

are not excluded from STA. The 

commenter noted that a license is not 

required for AT reasons for any STA 

eligible destination. 

Response: This commenter’s 

observation about the lack of an AT 

license requirement for any STA eligible 

destination is correct with respect to 

destination-based license requirements 

(although Part 744 of the EAR may 

impose an AT license requirement for 

specific end uses or end users in any 

destination). Like other License 

Exceptions in the EAR, STA would be 

used only where a license requirement 

exists; if no license is required there is 

no need to consider STA or any other 

license exception. Although most 

ECCNs include antiterrorism as a reason 

for control, that reason for control 

currently imposes a license requirement 

for only five destinations, none of which 

is eligible for STA. Although the 

absence of a reference to antiterrorism 

controls in License Exception STA 

might cause some readers to conclude 

erroneously that items controlled for 

antiterrorism reasons may not be 

shipped under license exception STA, 

adding such a reference might cause 

some readers to conclude erroneously 

that exports, reexports, and in country 

transfers to which antiterrorism controls 

do apply may be consummated under 

License Exception STA. The latter error 

has greater potential for harm than the 

former. Therefore, BIS does not believe 

that a change to the regulatory text on 

this point is desirable. 

Comments regarding deemed exports. 

Comment 8: Two commenters 

addressed the applicability of License 

Exception STA to deemed exports. One 


jlentini on DSK4TPTVN1PROD with RULES2
35280 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

indicated that it read the proposed rule 

as permitting License Exception STA to 

be used for deemed exports but 

suggested that specific authorizing 

language be added to STA for clarity. 

Another stated that STA would be 

useful for deemed exports and would be 

useful for some exports to some foreign 

subsidiary employees. 

Response: BIS’s intent in publishing 

the proposed rule was for License 

Exception STA to authorize deemed 

exports. However, upon further review, 

BIS has concluded that the requirements 

to furnish ECCNs, to obtain a consignee 

statement, and to provide a destination 

control statement are not likely to be 

relevant or useful in deemed export 

situations, which typically involve an 

employer-employee relationship or 

researcher collaborations. Accordingly, 

this final rule changes § 740.20 to 

address deemed exports and reexports 

separately from other exports and 

reexports. Releases of source code and 

technology are explicitly authorized. 

The authorization paragraphs explicitly 

refer to nationals of the destinations 

listed therein. Deemed exports and 

reexports are therefore explicitly 

authorized under License Exception 

STA. The ECCN notification, consignee 

statement, and destination control 

statement requirements are replaced 

with a requirement that the releaser of 

the technology or source code notify the 

recipient of the restrictions on further 

release. The notification must either 

expressly inform the recipient that the 

EAR impose limits on further disclosure 

or must be in the form of an agreement 

in which the recipient agrees to limits 

on further disclosure. Any such 

agreement must impose limits that are 

equivalent to or more restrictive than all 

limits on further disclosure that are 

imposed by the EAR. The notification 

must be in writing. The notification may 

be in a separate document or included 

in a document such as a contract or a 

nondisclosure agreement. If the 

document has an expiration date, it 

must provide that the restrictions on 

disclosure do not expire. 

Recommendation for new process for 

public input on eligible ECCNs for 

License Exception STA. 

Comment 9: One commenter 

recognized that statutory restrictions 

and regime controls place some 

restrictions on BIS. That commenter, 

however, recommended that BIS state in 

the final rule that it will conduct regular 

reviews of ECCNs and set up a process 

whereby exporters could submit a 

request to BIS setting forth the reasons 

that a particular ECCN should be 

eligible for STA. 

Response: BIS is reviewing the 

Commerce Control List as a whole as 

part of the Administration’s Export 

Control Reform Initiative. In addition, 

the EAR (including the Commerce 

Control List) will be subject to the 

retrospective review requirements of 

Executive Order 13563. Those who wish 

to recommend any change to License 

Exception STA or any other provision of 

the EAR may do so in a number of ways, 

such as: informal contacts with BIS; 

contacting one of the technical advisory 

committees that advise BIS; or 

petitioning BIS for issuance, 

amendment or repeal of a rule, as 

contemplated by § 756.1(a)(1) of the 

EAR. Although always open to 

suggestions, BIS does not plan to set up 

a special process to receive proposed 

changes to License Exception STA. 

Comment on end use restrictions in 

§ 740.20(c)(2)(ii) in the proposed rule. 

Comment 10: One commenter stated 

that by including the phrase ‘‘other than 

a military end use as defined in § 744.21 

of the EAR’’ in the definition of ‘‘civil 

end use’’ in proposed § 740.20(c)(2)(ii), 

the proposed rule essentially took the 

China End Use Rule and applied the 

foreign policy behind that rule to a 

much larger group of countries even 

though many of those countries are not 

subject to the same foreign policy 

considerations as is China. 

Response: Because the final rule does 

not include a civil end-use requirement, 

a discussion of whether the definition of 

civil end-use in § 744.21 is appropriate 

for STA is unnecessary. 

Proposal to expand the scope of STA. 

Comment 11: One commenter 

recommended that STA should be 

available for transactions where the 

exporter and consignee are the same 

organization. 

Response: License Exception STA is 

available for transactions where the 

exporter and the consignee are the same 

organization, but only if they otherwise 

meet the requirements for use of the 

license exception. 

Eligible destination comments. 

Comment 12: Several commenters 

raised questions regarding the 

limitations on License Exception STA 

eligibility for certain countries. 

Response: BIS has determined that for 

foreign policy reasons, the lists of 

destinations eligible for License 

Exception STA shall be limited to those 

destinations included in this final rule. 

Eligible items comments. 

Comment 13: Two commenters 

recommended that items controlled for 

missile technology reasons should be 

made eligible for License Exception 

STA under limited circumstances. One 

commenter stated that such items are 

needed for use in public light water 

reactors. Another commenter stated that 

the eligibility of certain items, which are 

in Category 7 of the Commerce Control 

List, could be limited to equipment 

required for or in support of safety of 

flight. 

Response: BIS does not have the 

discretion to include any item 

controlled for export for missile 

technology reasons in License Exception 

STA. Items are controlled on the 

Commerce Control List for missile 

technology reasons because they are 

listed in the Missile Technology Control 

Regime Annex. The exclusion of items 

on the Missile Technology Control 

Regime Annex is based on Section 6(l) 

of the Export Administration Act and 

the U.S. commitment to implement the 

Missile Technology Control Regime 

Guidelines. 

Comment 14: One commenter stated 

that ECCNs 2B232 and 2E001 should be 

eligible for STA. The commenter noted 

that manufacturers in China and India 

make comparable products. 

Response: ECCN 2B232 and the 

portion of 2E001 that addresses 

technology for the development of 

equipment controlled under 2B232 are 

controlled for nuclear proliferation 

reasons. Under both the proposed rule 

and this final rule, their License 

Exception STA eligibility is limited to 

the destinations in § 740.20(c)(1) for 

foreign policy reasons. 

Comment 15: One commenter stated 

that it needs to ship items that are 

covered by ECCN 2B350 predominantly 

to Taiwan, Singapore, China and Israel. 

The commenter stated that it currently 

has about 100 licenses and that license 

requirements make it uncompetitive and 

cause it to lose business. This 

commenter asserted that similar parts 

made in South Korea can get a license 

in one to two weeks. A better approach 

than the proposed rule would be to 

allow less sensitive components to be 

exported without a license to more 

destinations. 

Response: For such destinations as 

Taiwan, Singapore and Israel, which are 

destinations listed in § 740.20(c)(2), BIS 

proposed that License Exception STA 

may be used for transactions in which 

the only applicable reason for control is 

national security. ECCN 2B350 is 

controlled for chemical and biological 

weapons reasons. BIS has retained this 

limit in the final rule for foreign policy 

reasons. 

Comment 16: One commenter stated 

that exclusion of CCL Category 3 and 4 

items would limit the utility of License 

Exception STA. 

Response: Commerce Control List 

Categories 3 and 4 are not excluded in 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35281 

their entirety from STA. All or portions 

of some ECCNs in Categories 3 and 4 are 

excluded from eligibility to the eight 

destinations listed in § 740.20(c)(2) 

because they cover items on the 

Wassenaar Arrangement Sensitive List. 

This limitation on items eligible for 

export to destinations listed in 

§ 740.20(c)(2) was included in the 

proposed rule, and BIS has concluded 

that retaining the rule’s limit of 

eligibility for License Exception STA for 

these destinations to non-Sensitive List 

items is appropriate for foreign policy 

reasons. 

Comment 17: One commenter stated 

that ECCN 6A002.a.2 and .a.3 should be 

eligible for § 740.20(c)(1) destinations. 

Response: Under both the proposed 

rule and this final rule, ECCNs 

6A002.a.2 and .a.3 are eligible for 

§ 740.20(c)(1) destinations except for 

those portions of paragraph .a.3 that are 

subject to control for missile technology 

(MT) reasons. For the reason noted in 

the response to Comment 13 above, BIS 

is not making MT controlled items 

eligible for License Exception STA. 

Portions of 6A002.a.2 and all of 

6A002.a.3 are ineligible for 

§ 740.20(a)(2) destinations because they 

are on the Wassenaar Arrangement 

Sensitive List. 

Comment 18: Two commenters stated 

that ECCN 6A003.b should be eligible 

for the 127 destinations set forth in 

§ 740.20(c)(2) of the proposed rule and 

one of those commenters also stated that 

ECCN 9A018.b should be eligible. 

Response: The STA paragraph for 

ECCN 6A003 excludes all of paragraphs 

.b.3 and .b.4 from STA eligibility if the 

destination is one of the destinations in 

paragraph (c)(2) of the proposed rule 

(eight destinations in this final rule). 

BIS developed the STA paragraphs to 

provide a reasonable balance between 

the policy of excluding items on the 

Sensitive List from eligibility under 

§ 740.20(c)(2) and the need to make the 

regulations as clear as possible within 

substantive policy constraints. 

Rewriting the STA paragraph in 6A003 

to match exactly the Sensitive List 

would add significantly to the length 

and complexity of the entry while 

providing relatively little change in the 

scope of eligible transactions. Moreover, 

ECCN 6A003.b.3 and .b.4.b are also 

controlled for regional stability reasons. 

Thus, even if the STA paragraph in 

6A003 were rewritten to match the text 

of the Sensitive List exactly, the items 

in 6A003.b.3 and .b.4.b would continue 

to be excluded from eligibility under 

§ 740.20(c)(2) because of their regional 

stability control. ECCN 9A018.b is also 

subject to a regional stability control 

and, consistent with the policy stated 

above, is not eligible for § 740.20(c)(2). 

Comment 19: One commenter 

recommended that ECCN 6A001.a.2.d.1 

(certain underwater heading sensors), 

.a.2.b.7 (certain towed hydrophone 

arrays) and .a.2.e.1 (certain bottom or 

bay cable systems) be made eligible for 

§ 740.20(c)(2) destinations. Without 

such eligibility, the ability to use STA 

to send repair items to vessels in port is 

limited. These items do not require a 

license to go to destinations in Country 

Group A:1 (Supp. No. 1 to Part 740 of 

the EAR), which includes most of the 

destinations eligible under 

§ 740.20(c)(1). This commenter stated 

that if License Exception STA results in 

the repeal of License Exception RPL, it 

would be at a disadvantage. 

Response: This final rule excludes 

items listed on the Wassenaar 

Arrangement Sensitive List from 

destinations listed in § 740.20(c)(2). As 

set forth in the response to Comment 16, 

BIS has concluded that limiting these 

destinations to non-Sensitive List items 

is appropriate for foreign policy reasons. 

That said, BIS is not eliminating License 

Exception RPL. In addition, BIS can 

make one change to the 6A001 STA 

paragraph to track more accurately the 

Wassenaar Arrangement Sensitive List 

without adding undue length and 

complexity to the ECCN. Paragraph 

.a.2.a.4 is not on the Wassenaar 

Arrangement Sensitive List. Therefore, 

BIS is adding the phrase ‘‘except 

.a.2.a.4’’ immediately following the 

phrase ‘‘or 6A001.a.2 in the STA 

paragraph of the License Exception 

Section of ECCN 6A001.’’ 

Comment 20: One commenter 

recommended that items in ECCN 

8A001.c (unmanned tethered 

submersible vehicles) be made eligible 

for § 740.20(c)(2). The commenter noted 

that such vehicles already do not 

require a license for most of the 37 

destinations in proposed § 740.20(c)(1) 

and so STA would not affect the 

licensing burden for these items to any 

great degree. This commenter stated that 

allowing full STA eligibility for these 

items would be consistent with the 

Wassenaar Arrangement’s best practices 

agreed to at the 2006 Wassenaar 

Arrangement plenary meeting, which 

allows license exceptions for sensitive 

list items. Other Wassenaar members 

allow exports without an individual 

license. For example the United 

Kingdom permits such exports under an 

open general license. The safeguards 

imposed by License Exception STA 

allow for sensitive list items to be 

controlled and monitored consistent 

with U.S. national security interests and 

regime obligations. These vehicles 

cannot go far from their support vessel, 

cannot be preprogrammed and require 

considerable support equipment. In 

some cases a vessel or rig must be 

modified to handle the equipment and 

restored when the equipment is 

removed making diversion of such 

vehicles to military uses unlikely. 

Unmanned tethered submersible 

vehicles are not as sensitive from a 

national security perspective as 

untethered submersibles. Excluding 

8A001.c unmanned tethered 

submersible vehicles while allowing 

8A001.a manned tethered submersibles 

full STA treatment would be 

inconsistent. 

Response: Notwithstanding the 

arguments made in the Comment, BIS 

has determined that retaining the 

limitation set forth in the proposed rule 

that STA authorization for Wassenaar 

Arrangement Sensitive List items (as 

8A001.a items are) is available only to 

the destinations listed in § 740.20(c)(1) 

of this final rule is necessary for foreign 

policy reasons. 

Comments on information and 

consignee statement requirements. 

BIS received a number of comments 

on the proposed requirements to 

provide safeguards against diversion 

that were set forth in the proposed rule. 

Those safeguards are: the requirement to 

provide the consignee with the item 

description and ECCN; the requirement 

to obtain assurances from the consignee; 

and the requirement to furnish a special 

STA destination control statement. 

Some of the comments applied to the 

safeguards as a whole and others to 

specific safeguard measures. 

Comments regarding the safeguards as 

a whole. 

Comment 21: Some commenters 

stated that manufacturers already have 

processes in place to notify consignees 

not to reexport in violation of the EAR 

and to provide ECCNs and destination 

control statements or that language 

typically found in sales contracts and 

purchase order agreements is a more 

effective means of communicating 

compliance obligations. 

Response: Although BIS encourages 

parties trading in items subject to the 

EAR to inform their customers of EAR 

requirements and responsibilities of 

parties to the transaction, in general the 

EAR do not require parties to do so. 

License Exception STA could not 

function in its intended manner unless 

all exporters, reexporters, transferors 

and consignees are aware of their 

specific responsibilities. Some form of 

mandatory notice is, therefore, 

necessary. 

Comment 22: One commenter stated 

that the STA safeguards transferred 


jlentini on DSK4TPTVN1PROD with RULES2
35282 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

compliance responsibilities from the 

exporter to the consignee. 

Response: BIS does not believe that 

the creation of License Exception STA 

or the specific safeguard requirements 

that STA imposes constitute a ‘‘transfer’’ 

of responsibilities from one party to 

another. All parties dealing with items 

that are subject to the EAR are 

responsible for compliance with those 

regulations. The safeguard requirements 

of License Exception STA are intended 

to place parties on notice of their 

responsibilities and to verify that they 

are aware of, and will comply with, 

such responsibilities. 

Comments regarding the requirement 

to furnish the Export Control 

Classification Number. 

Comment 23: Several commenters 

stated that the requirement to furnish an 

ECCN is unnecessary. The reasons those 

gave were: ECCNs are already provided 

on the invoice and air waybill; the EAR 

already require the ECCN at least for the 

initial export; the ECCN is required in 

the STA consignee statement; and it 

would be difficult for U.S. exporters to 

verify that foreign buyers pass ECCN 

information along to their customers. 

Response: Although BIS encourages 

parties to notify their consignees of the 

EAR, compliance responsibilities, and 

other information that would aid 

compliance such as ECCNs, such 

activities are generally not required 

under the EAR. License Exception STA 

is intended to remove the burden of 

applying for a license in exports, 

reexports and in country transfers that 

are limited to certain destinations where 

there is a relatively low risk of 

diversion. Requiring that consignees be 

notified of the ECCN provides 

reasonable assurance that the consignee 

will be on notice that the item it is 

receiving is sensitive and that further 

distribution without a U.S. license must 

be restricted to the destinations for 

which no license is required, or for 

which STA or some other License 

Exception provides authorization. 

The EAR do not require exporters to 

monitor the conduct of foreign buyers to 

verify that they pass on ECCN 

information to their customers. The EAR 

do, however, prohibit, among other 

things, selling, transferring, transporting 

or servicing items subject to the EAR 

with knowledge that a violation has, 

will, or is intended to take place with 

respect to that item. 

Comment 24: One commenter asked 

who would be responsible if an 

erroneous ECCN is supplied and, as a 

result, the consignee reexports an item 

using License Exception STA in a 

transaction that is not authorized by 

STA. The commenter recommended 

that the reexporter not be liable in such 

a case. 

Response: BIS believes that the 

consignee should be able to place 

reasonable reliance on the ECCN 

furnished by its supplier in License 

Exception STA transactions. 

Accordingly, the final rule states that for 

purposes of determining reexport or 

transfer eligibility under STA, the 

consignee may rely on the ECCN 

provided to it by the party required to 

furnish the ECCN to the consignee 

unless the consignee ‘‘knows’’ that the 

ECCN is in error. The term ‘‘know’’ has 

the same meaning as the term 

‘‘knowledge’’ in § 772.1 of the EAR. 

Comments regarding the requirement 

to obtain consignee statement. 

Comment 25: Several commenters 

proposed that one consignee statement 

be permitted for multiple transactions. 

Various proposals were to allow a single 

statement for a specific project, a 

specific contract, a specific time period 

or for all items to be shipped to that 

consignee under STA. One commenter 

suggested that License Exception STA 

as proposed actually allows for a single 

statement to cover multiple shipments 

but clarification is desirable. 

Response: BIS agrees that a single 

consignee statement should be able to 

cover more than one transaction for the 

reasons provided by commenters and is 

revising the final rule to explicitly so 

state. These revisions are described 

more fully under the topic heading 

‘‘Final Rule Revisions to License 

Exception STA Safeguards’’ below. 

Comment 26: One commenter stated 

that the requirement for a consignee 

acknowledgement is in direct 

opposition to BIS’s statement that the 

eligible destinations are ‘‘low risk.’’ 

Another commenter stated that the 

requirement for reexporters and 

transferors to obtain a statement from 

their consignees would impose a burden 

on a particular country’s exporters 

without providing additional safeguards 

to U.S. export controls because that 

country has stringent export controls 

based on the same multilateral regimes 

as the United States. Several 

commenters noted that foreign 

customers are often reluctant or 

unwilling to acknowledge U.S. 

jurisdiction and suggested that this 

requirement continues a perception that 

dealing with U.S. companies is difficult. 

Response: An important purpose of 

the consignee statement is to ensure that 

the consignee is aware that the item has 

been shipped under a license exception 

that is limited to low risk destinations 

and agrees to take steps that will keep 

the item from leaving those destinations 

without authorization. It is integral to 

the overall purpose of STA, which is to 

provide license exception shipments 

throughout a group of low risk 

destinations. Regime membership is a 

key part of the overall structure for 

export controls in an importing country. 

STA is based, in part, on that structure 

but focuses further on actual 

transactions to ensure controlled items 

are properly exported and reexported. 

Comment 27: One commenter 

suggested that the requirement to obtain 

a consignee statement should not be 

needed for destinations in § 740.20(c)(2) 

because the eligible items are less 

sensitive than those available to 

destinations listed in § 740.20(c)(1). 

This commenter noted that BIS has 

ample existing means of identifying 

violations and enforcing STA 

restrictions, including post shipment 

verifications and placing violators on 

the Entity List. 

Response: The purpose of the 

consignee statement is to make sure that 

the consignee is aware that the item has 

been shipped under a license exception 

that is limited to low risk destinations. 

It is integral to the overall purpose of 

STA, which is to provide license 

exception shipments throughout a group 

of low risk destinations. Although the 

items eligible to § 740.20(c)(2) 

destinations are less sensitive than those 

eligible to § 740.20(c)(1) destinations, 

the items are still sufficiently sensitive 

that obtaining the consignee’s 

acknowledgement of the limits of STA 

is necessary to provide reasonable 

assurance that the item will not be 

reexported beyond the low risk group of 

authorized destinations. 

Comment 28: This commenter also 

suggested that if the consignee 

statement is retained, three specific 

provisions are unnecessary. First, the 

provision in which the consignee agrees 

not to export, reexport or transfer in 

violation of the EAR is not needed 

because it merely duplicates the 

requirements of the regulations. Second, 

consignees in § 740.20(c)(2) destinations 

should not be required to acknowledge 

that items shipped under STA may not 

subsequently be shipped under License 

Exception APR paragraph (a) because 

that paragraph does not authorize 

reexports from any § 740.20(c)(2) 

country. Third, the requirement to agree 

that items shipped under 

§ 740.20(c)(2)(ii) [125 destinations in the 

proposed rule] may be used only in a 

civil end use is unneeded because it 

repeats a restriction in part 744 of the 

EAR and creates an unreasonable 

burden on all parties in a chain of 

transactions who are, in effect, agreeing 

not to incorporate the exported item 

into a United States Munitions List 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35283 

defense article. This burden is 

particularly problematic for 

manufacturers of materials. 

Response: License exception STA 

authorizes exports, reexports and in 

country transfers in sensitive items that 

otherwise would require a license. As 

such, requiring acknowledgement of the 

regulations that apply to the shipment is 

reasonable. 

This commenter correctly notes that 

License Exception APR paragraph (a) 

does not directly authorize any reexport 

from a destination listed in 

§ 740.20(c)(2). However License 

Exception STA does authorize reexports 

from places listed in § 740.20(c)(2) to 

destinations listed in § 740.20(c)(1) and 

License Exception APR paragraph (a) 

does authorize reexports from those 

(c)(1) destinations to other destinations 

that are not eligible for STA. For the 

safeguards of License Exception STA to 

function effectively, all reexporters must 

notify their consignees of the STA 

restrictions. The party in a § 740.20(c)(2) 

location will need to be on notice of the 

APR paragraph (a) restriction in order to 

be able to obtain the needed assurance 

from any party in a § 740.20(c)(1) 

destination to which it reexports. 

Because this final rule removes the 

civil end use limitation from 

§ 740.20(c)(2), the requirement to agree 

to that limitation is not needed and this 

final rule removes it from the consignee 

statement. 

Comments regarding the destination 

control statement. 

Comment 29: Some commenters 

objected to the special STA destination 

control statement, which under the 

proposed rule, the exporter, reexporter, 

or transferor would need to place on 

export control documents that 

accompany the shipment. The stated 

reasons for the objections were that the 

requirement would be superfluous to 

other EAR provisions, the cost and 

complexity of the requirements would 

discourage use of License Exception 

STA, and that a second destination 

control statement is not needed or 

would not be effective. 

Response: After review of the 

comments and further consideration, 

BIS has concluded that some form of 

notice to the consignee that the items it 

is receiving are subject to STA is 

needed. However that notice need not 

take the form of a destination control 

statement. Accordingly, BIS is replacing 

the destination control statement 

requirement with the notice 

requirement that is described under the 

heading ‘‘Final Rule Revisions to 

License Exception STA Safeguards’’ 

below. 

Final Rule Revisions to License 

Exception STA Safeguards. 

The proposed requirements to furnish 

an ECCN, to obtain a consignee 

statement and to furnish a destination 

control statement were intended to 

operate in concert to provide assurance 

against diversions. To address the 

points raised by some of the 

commenters regarding those proposed 

requirements while maintaining their 

concerted nature, BIS is making the 

changes described below. 

The final rule adds clarifying 

language to § 740.20(d)(1) and (2) stating 

that the Export Control Classification 

Number furnished to the consignee may 

be used for multiple shipments of the 

same item by a given exporter to a given 

consignee under License Exception STA 

so long as the information remains 

accurate. The final rule also provides 

that for purposes of determining 

reexport or transfer eligibility under 

STA, the consignee may rely on the 

ECCN provided to it by the party 

required to furnish the ECCN to the 

consignee unless the consignee knows 

that the ECCN is in error. The term 

‘‘know’’ has the same meaning as the 

term ‘‘knowledge’’ in § 772.1 of the 

EAR. 

The final rule revises § 740.20(d)(2) to 

provide that one consignee statement 

may be used for multiple shipments of 

the same item by the same exporter to 

the same consignee under License 

Exception STA provided descriptions of 

the item(s), ECCN(s) and names of the 

parties remain accurate. The final rule 

also removes the provision calling for 

the consignees’ agreement that items 

shipped to certain destinations will be 

used only for civil end uses because the 

final rule does not impose a civil end 

use limitation. To facilitate verification 

of compliance with the consignee 

statement requirement, the final rule 

requires the exporter, reexporter, and 

transferor to maintain the specific 

consignee statement that is associated 

with each shipment and a log or other 

record that identifies each shipment 

made under License Exception STA and 

identifies the specific consignee 

statement that is associated with each 

shipment. 

The final rule replaces the destination 

control statement with a requirement 

that the exporter, reexporter or 

transferor, as applicable, notify the 

consignee in writing that the shipment 

is made pursuant to License Exception 

STA. The notice must either specify 

which items are subject to License 

Exception STA or state that the entire 

shipment is made pursuant to License 

Exception STA. The notice must clearly 

identify the shipment to which it 

applies. The written notice may be 

conveyed by paper documents or by 

electronic methods such as facsimile or 

email. 

BIS believes that with these changes, 

the STA safeguards provide appropriate 

assurances that items shipped under 

License Exception STA will remain 

within the group of low risk 

destinations without placing excessive 

and complex burdens on parties trading 

items subject to the EAR. 

Comments regarding the License 

Exception STA paragraphs. 

Comment 30: The STA paragraphs, 

which appear in 49 ECCNs in this final 

rule, designate those ECCNs or portions 

thereof as ineligible for License 

Exception STA if the destination is 

listed in § 740.20(c)(2) of the EAR. 

Those exclusion paragraphs have no 

effect on the availability of STA for 

destinations listed in § 740.20(c)(1) of 

the EAR. Some commenters indicated 

that these exclusion paragraphs were 

confusing and would lead readers to 

conclude erroneously that the 

designated ECCNs or the designated 

portions were ineligible for License 

Exception STA for all destinations. In 

addition, some of the commenters 

appear to have misinterpreted the 

meaning of the STA exclusion 

paragraphs in exactly that manner. 

Commenters offered several suggestions 

to address this source of confusion. 

One suggestion was to employ two 

STA paragraphs in each ECCN on the 

Commerce Control List, one paragraph 

would state whether STA is eligible for 

destinations listed in § 740.20(c)(1) and 

the other would state whether the 

License Exception is eligible for 

destinations listed in § 740.20(c)(2). 

Each paragraph would take into account 

all of the reasons for control in the 

ECCN and any other relevant factors 

including whether the item is on the 

Wassenaar Arrangement Sensitive List. 

Another suggestion was to use some 

annotation in the STA paragraphs such 

as STA 1 for § 740.20(c)(1) and STA 2 

for § 740.20(c)(2). 

A third suggestion was to reference 

the number of destinations that are 

excluded by the paragraph. 

A fourth suggestion was to create a 

matrix that would show the STA 

eligibility for each ECCN and 

destination. 

Response: BIS has decided to adopt 

the third suggestion in this final rule. 

Because the number of destinations 

listed in § 740.20(c)(2) in the final rule 

is eight compared to 36 eligible 

destinations under § 740.20(c)(1), BIS 

believes that the best solution is to 

modify the STA paragraphs to reference 

the number of destinations in addition 


jlentini on DSK4TPTVN1PROD with RULES2
35284 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

to referencing the relevant STA 

eligibility paragraph, i.e. § 740.20(c)(1) 

or (c)(2). 

Accordingly, the STA exclusion 

paragraphs in this final rule have the 

format: ‘‘License Exception STA may 

not be used to ship [list ineligible items] 

to any of the eight destinations listed in 

§ 740.20(c)(2).’’ The words ‘‘or transmit’’ 

immediately follow the words ‘‘to ship’’ 

in software or technology ECCNs to be 

consistent with terminology used 

elsewhere in the EAR. BIS decided not 

to introduce STA paragraphs into every 

ECCN because ECCNs that include 

multiple reasons for control would 

require lengthy and complex STA 

paragraphs. This complexity would be 

compounded in the case of software and 

technology ECCNs in which one ECCN 

often encompasses not only multiple 

reasons for control but also references to 

multiple commodity ECCNs. 

BIS decided not to adopt separate 

annotations such as STA1 and STA2 for 

the two authorizing paragraphs for two 

reasons. First, to be fully effective, this 

suggestion would require that the 

notations be in every ECCN, creating the 

same length and complexity issues 

noted above. Second, every License 

Exception paragraph in the Commerce 

Control List is designated by the symbol 

that is used to report shipments under 

that License Exception in the 

Automated Export System. All 

shipments under License Exception 

STA are to be reported under the 

symbol STA. Use of two different 

designators for a single license 

exception in the Commerce Control List 

could cause public confusion about the 

procedure for reporting License 

Exception STA shipments. 

BIS decided not to attempt to describe 

STA eligibility in the form of a matrix 

because this technique also would 

produce an unduly complex document. 

Such a matrix would have to account for 

every destination in the world and every 

paragraph of every ECCN, making it far 

larger than the current Country Chart 

found at Supp. No. 1 to part 738 of the 

EAR. The STA paragraphs apply to only 

eight destinations and to 49 ECCNs. BIS 

believes that revising the STA 

paragraphs themselves is a more 

practical way to reduce the possibility 

of confusion pointed out by these 

commenters. 

Specific License Exception Provisions 

Scope 

The license exception applies only to 

Commerce Control List based license 

requirements. Transactions in which a 

license is required because of an enduse—such as a proliferation end use 

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, are not eligible for 

License Exception STA. Items on the 

Commerce Control List that are subject 

to the encryption items (EI), short 

supply (SS), surreptitious listening (SL), 

missile technology (MT), or chemical 

weapons (CW) reasons for control are 

not eligible for License Exception STA 

because of various requirements 

imposed by statutes, treaties or U.S. 

implementation of international 

commitments. Items in ECCNs 0A981, 

0A982, 0A983, 0A985 or 0E982 are not 

eligible. Those ECCNs apply to 

equipment designed for the execution of 

human beings, specially designed 

implements of torture, law enforcement 

restraint devices, discharge type arms 

and devices designed to administer 

electric shocks and certain related 

technology. The human rights concerns 

associated with those items are 

sufficiently great to justify precluding 

use of License Exception STA. 

Items in ECCNs 1C351.a, .b, .c, .d.5, 

.d.6 or .e; 1C352; 1C353; 1C354; 1C360; 

1E001 (for 1C351.a, .b, .c, .d.5, .d.6 or 

.e, 1C352, 1C353, 1C354 or 1C360) or in 

ECCN 1E351 may not be shipped 

pursuant to License Exception STA 

because those ECCNs cover certain 

pathogens and toxins that have potential 

uses in developing chemical or 

biological weapons. Commodities in 

ECCN 1C351.d.1, .2, .3, .4, .7, .8, .9, or 

.10 are eligible for License Exception 

STA so long as the exports, reexports or 

transfers are limited to no more than 

100 milligrams of any one toxin per 

shipment and no more than six 

shipments are sent to any one end user 

in any one calendar year. 

License Exception STA may not be 

used for certain software and technology 

in Category 9 of the Commerce Control 

List as noted below. 

(A) License Exception STA may not 

be used for 9D001 or 9D002 ‘‘software’’ 

that is specially designed or modified 

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

of: 

(1) Components of engines controlled 

by ECCN 9A001 if such components 

incorporate any of the ‘‘technologies’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines), 9E003.h; or 

(2) Equipment controlled by 9B001; or 

(B) License Exception STA may not be 

used for 9D001 ‘‘software’’ that is 

specially designed or modified for the 

‘‘development’’ of ‘‘technology’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines) or 9E003.h. 

(C) License Exception STA may not be 

used for 9D004.f or 9D004.g ‘‘software’’. 

(D) License Exception STA may not 

be used for 9E001 ‘‘technology’’ 

according to the General Technology 

Note for the ‘‘development’’ of 9A001.b 

engines or components of engines 

controlled by 9A001.b if such 

components incorporate: 

(1) Any of the ‘‘technologies’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines) or 9E003.h; 

(2) Any of the 9D001 or 9D002 

software in paragraphs (A) or (B) above. 

(E) License Exception STA may not be 

used for 9E002 ‘‘technology’’ according 

to the General Technology Note for the 

‘‘production’’ of components of engines 

controlled by 9A001.b if such 

components incorporate any of the 

‘‘technologies’’ controlled by 9E003.a.1, 

9E003.a.2, 9E003.a.3, 9E003.a.4, 

9E003.a.5, 9E003.c, 9E003.i (other than 

technology for fan or power turbines) or 

9E003.h. 

(F) License Exception STA may not be 

used for ‘‘technology’’ in 9E003.a.1, 

9E003.a.2, 9E003.a.3, 9E003.a.4, 

9E003.a.5, 9E003.c, 9E003.i (other than 

technology for fan or power turbines), 

9E003.h. 

Authorizations. 

This license exception provides two 

distinct authorizations. One 

authorization allows exports, reexports 

or in country transfers to which any (or 

all) of six reasons for control apply to 

go to 36 destinations. Another 

authorization allows less sensitive items 

where exports, reexports and in country 

transfers subject to only national 

security reasons for control to go to 

eight additional destinations. National 

security-controlled items that are 

ineligible for the latter authorization are 

identified by the new STA paragraphs 

in the ‘‘License Exceptions’’ sections of 

49 ECCNs on the Commerce Control 

List. Thus, the STA exclusion paragraph 

serves the opposite function of a typical 

list-based license exception paragraph. 

The typical license exception paragraph 

in an ECCN identifies items that are 

eligible for a license exception rather 

than those that are ineligible. 

Authorization for Items Controlled for 

Multiple Reasons to 36 Destinations. 

If the only reason(s) for control that 

impose(s) a license requirement on the 

export, reexport or in country transfer is 

(are) national security (NS); chemical or 

biological weapons (CB); nuclear 

nonproliferation (NP); regional stability 

(RS); crime control (CC); or significant 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35285 

items (SI), exports, reexports and 

transfers (in-country) to 36 destinations 

as well as releases within a single 

country of software source code and 

technology to nationals of the same 36 

destinations are authorized, unless 

otherwise excluded from License 

Exception STA. 

On April 29, 2011, the Under 

Secretary of Commerce for Industry and 

Security, pursuant to the authority 

delegated to him under section 6(n)(2) 

of the EAA, designated Argentina, 

Austria, Finland, Ireland, South Korea, 

Sweden, and Switzerland as eligible 

destinations for export and re-export of 

items controlled for crime control (CC), 

not including ECCNs 0A981, 0A982, 

0A983, 0A985 or 0E982, without a 

license under License Exception 

Strategic Trade Authorization. 

Authorization for Less Sensitive 

National Security Items to Eight 

Additional Destinations. 

If the only reason for control that 

imposes a license requirement on the 

export, reexport or in country transfer is 

national security (NS) and the item is 

not designated in the STA sensitive 

items exclusion paragraph in its ECCN, 

eight destinations (and nationals 

thereof) in addition to the 36 noted 

above are authorized. The STA 

exclusion paragraphs closely track the 

Sensitive List of the Wassenaar 

Arrangement. This rule adds such 

paragraphs to 49 ECCNs. 

Limitations on Subsequent Use of 

License Exception APR. 

Use of License Exception STA 

precludes subsequent use of License 

Exception APR paragraphs (a) and (b) 

(§ 740.16(a) and (b) of the EAR) for items 

shipped pursuant to License Exception 

STA. 

Conditions That Apply to License 

Exception STA. 

Section 740.20(d) imposes three 

conditions on exports, reexports and 

transfers and an alternative set of 

conditions on deemed exports and 

deemed reexports made pursuant to 

License Exception STA. 

(1) Exporters must furnish the 

consignee with the ECCN that applies to 

each item transferred under License 

Exception STA. Reexporters and 

transferors must provide subsequent 

consignees with the ECCN provided by 

the exporter or by prior reexporters or 

transferors. The ECCN need be 

furnished to each consignee only once 

for each item to be shipped under 

License Exception STA. So long as the 

furnished ECCN remains accurate, it 

need not be refurnished for subsequent 

shipments. 

(2) Exporters, reexporters and 

transferors must 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 exporter, reexporter and transferor 

must maintain the consignee’s written 

statement as well as a log or other 

written record that identifies each 

shipment associated with a particular 

statement. 

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 paragraphs 

(a) or (b) of License Exception APR for 

the items; 

• Agrees not to export, reexport or 

transfer these items to any destination, 

end use or end user prohibited by the 

EAR; and 

• Agrees to produce copies of this 

document and all other export, reexport 

or transfer records (i.e., the documents 

described in part 762 of the EAR) 

relevant to the items referenced in this 

statement to the U.S. Government, upon 

request, as set forth in § 762.7. 

(3) With each shipment under License 

Exception STA, the exporter (or 

reexporter or transferor as applicable) 

must notify the consignee in writing 

that the shipment is made pursuant to 

License Exception STA. The notice 

must either specify which items are 

subject to License Exception STA or 

state that the entire shipment is made 

pursuant to License Exception STA. The 

notice must clearly identify the 

shipment to which it refers. The written 

notice may be conveyed by paper 

documents or by electronic methods 

such as facsimile or email. 

Recognizing that the foregoing 

requirements are not relevant or 

workable with respect to releases within 

a single country of software source code 

or technology to foreign nationals, 

§ 740.20(d) imposes a different set of 

requirements on them. The releaser of 

the technology or source code must 

notify the recipient of the technology or 

source code of the restrictions on further 

release. The notification must either 

expressly inform the recipient that the 

EAR impose limits on further disclosure 

or must be in the form of an agreement 

in which the recipient agrees to limits 

on further disclosure. Any such 

agreement must impose limits that are 

equivalent to or more restrictive than all 

limits on further disclosure that are 

imposed by the EAR. The notification 

must be in writing and a copy of it must 

be retained by the releaser and the 

recipient. The notification may be in a 

separate document or included in a 

document such as a contract or a 

nondisclosure agreement. If the 

document has an expiration date, it 

must provide that the restrictions on 

disclosure do not expire. 

Addition of License Exception STA 

Paragraphs to 49 ECCNs. 

This rule adds License Exception STA 

paragraphs to 49 ECCNs. These 

paragraphs, which closely track the 

Wassenaar Arrangement Sensitive List, 

designate certain items that are not 

eligible for License Exception STA to 

the eight destinations in § 740.20(c)(2). 

Incidental Changes Necessary To 

Implement License Exception STA 

Cross Reference to Wassenaar 

Arrangement Reporting Requirements 

Section 740.20 cross references the 

Wassenaar Arrangement reporting 

requirements in § 743.1 of the EAR 

because Wassenaar Arrangement 

Sensitive List items exported to 

Wassenaar Arrangement non-members 

pursuant to License Exception STA are 

subject to the reporting requirements of 

§ 743.1. 

Revisions to § 732.4 

Section 732.4 of the EAR explains 

how to identify and use license 

exceptions. This rule revises 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)(ii) 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)(ii) of that section 

explains the ‘‘License Exception’’ 

paragraph of an ECCN. This rule revises 

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 paragraphs identify 

items for which the second of the two 

authorizing paragraphs of License 

Exception STA (i.e., § 740.20(c)(2)) may 

not be used. 


jlentini on DSK4TPTVN1PROD with RULES2
35286 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

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 Wassenaar 

Arrangement 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 a 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 rule 

adds a reference to License Exception 

STA in § 743.1. The reporting 

requirement in § 743.1 is based on 

exports of Wassenaar Arrangement 

Sensitive List items to non-Wassenaar 

member states. The only non-Wassenaar 

member state to which License 

Exception STA authorizes Wassenaar 

Arrangement Sensitive List items is 

Iceland, a country with which the 

United States has a relatively small 

volume of trade. Therefore, BIS believes 

that this rule will not have any material 

impact on volume of reports required by 

§ 743.1. 

Other Incidental Changes 

The restriction on using license 

exceptions for items controlled for 

crime controlled reasons is modified by 

adding a paragraph to § 740.2 exempting 

transactions authorized by License 

Exception STA from the restriction. 

The prohibition on using License 

Exception GOV to export or reexport 

items controlled for chemical or 

biological weapons (CB) to the agencies 

of cooperating governments (as defined 

in § 740.11(b)(3)(ii) of the EAR) and 

certain diplomatic and consular 

missions of cooperating governments (as 

defined in § 740.11(b)(2)(iv) of the EAR) 

is removed by revisions to paragraphs 

(a)(2) and (b)(2) of Supplement No. 1 to 

§ 740.11 for the reasons noted above. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget. 

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 rule affects 

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 will 

have no material impact on the burden 

imposed by that collection because this 

rule merely replaces 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 requirement 

for exporters, reexporters and 

transferors to furnish ECCNs, to obtain 

a statement of assurance from the 

consignee before shipping pursuant to 

the license exception and to notify the 

consignee of shipments pursuant to the 

License Exception and the requirement 

to maintain records identifying 

shipments associated with each 

statement created by this rule 

(safeguards requirements). BIS expects 

the safeguards requirements are likely to 

increase the burden associated with 

control number 0694–0137 by about 

3,387 hours (2,903 instances of 

complying with transactions subject to 

the safeguards requirements @ 1 hour 

and 10 minutes 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 Regulation of 

the Department of Commerce has 

certified to the Chief Counsel for 

Advocacy of the Small Business 

Administration that the proposed rule, 

if adopted in final form, would not have 

a significant economic impact on a 

substantial number of small entities. 

The basis for that certification was 

published in the preamble to the 

proposed rule and is not repeated here. 

BIS received no comments regarding the 

certification. As a result, a final 

regulatory flexibility analysis is not 

required and none has been prepared. 

5. The Department finds that there is 

good cause to exempt this rule from the 

requirement of 5 U.S.C. 553(d) to 

publish a substantive rule not less than 

30 days before its effective date. This 

rule creates an exception to some export 

license requirements and requires users 

of that exception to provide certain 

information to their consignees and to 

obtain certain assurances from their 

consignees. In doing so, this rule allows 

international trade transactions to 

proceed without the delay needed to 

obtain a license. Such delays give 

international customers an incentive to 

purchase foreign made products and 

reduce the competiveness of American 

made products in the marketplace. 

Moreover, this rule does not require any 

person to use the new license exception 

that it creates. Any person may continue 

to use any other license exceptions that 

exist or may continue to apply for 

licenses. Thus no person is required to 

alter existing practices as a result of this 

rule. Because a delayed effective date 

would continue a disincentive to 

purchase American products and an 

immediate effective date would not 

require a change in existing practices, 

any delay in implementation would not 

be in the public interest. 

List of Subjects 

15 CFR Parts 732 and 740 

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 amended as follows: 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35287 

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) 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. Section 740.2 is amended by 

revising paragraphs (a)(4)(ii) and (iii) 

and by adding paragraph (a)(4)(iv) to 

read as follows: 

§ 740.2 Restrictions on all License 

Exceptions. 

(a) * * * 

(4) * * * 

(ii) Authorized by § 740.11(b)(2)(ii) 

(official use by personnel and agencies 

of the U.S. government); 

(iii) Authorized by § 740.14(e) of the 

EAR (certain shotguns and shotgun 

shells for personal use); or 

(iv) Authorized by § 740.20 of the 

EAR (License Exception STA). 

* * * * * 

■ 7. Supplement No. 1 to § 740.11 is 

amended by revising paragraphs (a)(2) 

and (b)(2) to read as follows: 

§ 740.11 Governments, international 

organizations, international inspections 

under the Chemical Weapons Convention, 

and the International Space Station (GOV). 

* * * * * 

Supplement No. 1 to § 740.11— 

Additional Restrictions on Use of 

License Exception GOV 

(a) * * * 

(2) Items identified on the Commerce 

Control List as controlled for missile 

technology (MT) or nuclear nonproliferation 

(NP) reasons; 

* * * * * 

(b) * * * 

(2) Items identified on the Commerce 

Control List as controlled for missile 

technology (MT) or nuclear nonproliferation 

(NP) reasons; 

* * * * * 

■ 8. Add § 740.20 to read as follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

(a) Introduction. This section 

authorizes exports, reexports and in 

country transfers, including releases 

within a single country of software 

source code and technology to foreign 

nationals in lieu of a license that would 

otherwise be required pursuant to part 

742 of the EAR. 

(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 export, reexport or 

in country transfer 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. The prohibitions and 

limits of this paragraph (b)(2) apply 

notwithstanding the authorizations in 

paragraph (c) of this section. 

(i) License Exception STA may not be 

used in lieu of any 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 item controlled under 

ECCNs 0A981, 0A982, 0A983, 0A985 or 

0E982. 

(iii) License Exception STA may not 

be used for any item that is controlled 

for reason of encryption items (EI), short 

supply (SS), surreptitious listening (SL), 

missile technology (MT) or chemical 

weapons (CW). 

(iv) License Exception STA may not 

be used for any item identified on the 

CCL as being subject to the exclusive 

export control jurisdiction of another 

agency, such as the Department of State, 

the Department of Energy, or the 

Nuclear Regulatory Commission. 

(v) License Exception STA may not be 

used for any item controlled by ECCNs 

1C351.a, .b, .c, .d.5, .d.6 or .e; 1C352; 

1C353; 1C354; 1C360; 1E001 (for 

1C351.a, .b, .c, .d.5, .d.6 or .e, 1C352, 

1C353, 1C354 or 1C360) or ECCN 1E351. 

(vi) Toxins controlled by ECCN 

1C351.d.1, .2, .3, .4, .7, .8, .9, and .10 are 

authorized to destinations in paragraph 

(c)(1) of this section under License 

Exception STA subject to the following 

limits. For purposes of this paragraph 

all ECCN 1C351.d.1, .2, .3, .4, .7, .8, .9, 

or .10 toxins sent from one exporter, 

reexporter or transferor to one end user 

on the same day constitute one 

shipment. 

(A) The maximum amount of any one 

toxin in any one shipment may not 

exceed 100 milligrams. 

(B) No exporter, reexporter or 

transferor may send more than six 

shipments of any one toxin to any one 

end user in a single calendar year. 

(vii) Commerce Control List Category 

9 limitations on use of License 

Exception STA. 

(A) License Exception STA may not 

be used for 9D001 or 9D002 ‘‘software’’ 

that is specially designed or modified 

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

of: 


jlentini on DSK4TPTVN1PROD with RULES2
35288 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

(1) Components of engines controlled 

by ECCN 9A001 if such components 

incorporate any of the ‘‘technologies’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines), 9E003.h; or 

(2) Equipment controlled by 9B001. 

(B) License Exception STA may not be 

used for 9D001 ‘‘software’’ that is 

specially designed or modified for the 

‘‘development’’ of ‘‘technology’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines) or 9E003.h. 

(C) License Exception STA may not be 

used for 9D004.f or 9D004.g ‘‘software’’. 

(D) License Exception STA may not 

be used for 9E001 ‘‘technology’’ 

according to the General Technology 

Note for the ‘‘development’’ of 9A001.b 

engines or components of engines 

controlled by 9A001.b if such 

components incorporate: 

(1) Any of the ‘‘technologies’’ 

controlled by 9E003.a.1, 9E003.a.2, 

9E003.a.3, 9E003.a.4, 9E003.a.5, 

9E003.c, 9E003.i (other than technology 

for fan or power turbines) or 9E003.h; 

(2) Any of the 9D001 or 9D002 

software in paragraphs (b)(2)(viii)(A) or 

(B) of this section. 

(E) License Exception STA may not be 

used for 9E002 ‘‘technology’’ according 

to the General Technology Note for the 

‘‘production’’ of components of engines 

controlled by 9A001.b if such 

components incorporate any of the 

‘‘technologies’’ controlled by 9E003.a.1, 

9E003.a.2, 9E003.a.3, 9E003.a.4, 

9E003.a.5, 9E003.c, 9E003.i (other than 

technology for fan or power turbines) 

9E003.h. 

(F) License Exception STA may not be 

used for ‘‘technology’’ in 9E003.a.1, 

9E003.a.2, 9E003.a.3, 9E003.a.4, 

9E003.a.5, 9E003.c, 9E003.i (other than 

technology for fan or power turbines) 

9E003.h. 

(c) Authorizing paragraphs—(1) 

Multiple reasons for control. Exports, 

reexports, and in country transfers 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); crime control (CC), and/ 

or significant items (SI) are authorized 

for destinations in or nationals of 

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, or the United 

Kingdom. 

(2) Controls of lesser sensitivity. 

Exports, reexports and in country 

transfers in which the only applicable 

reason for control is national security 

(NS) and the item being exported, 

reexported or transferred (in country) is 

not designated in the STA paragraph in 

the License Exception section of the 

ECCN that lists the item are authorized 

for destinations in or nationals of 

Albania, Hong Kong, India, Israel, 

Malta, Singapore, South Africa, or 

Taiwan. 

(d) Conditions—(1) Requirement to 

furnish Export Control Classification 

Number. (i) The exporter must furnish 

to the consignee the ECCN of each item 

to be shipped pursuant to this section. 

Once furnished to a particular 

consignee, the ECCN that applies to any 

item need not be refurnished to that 

consignee at the time the same exporter 

makes an additional shipment of the 

same item, if the information remains 

accurate at the time of the additional 

shipment. 

(ii) A reexporter or transferor must 

furnish to subsequent consignees the 

ECCN, provided by the exporter or a 

prior reexporter or transferor, of each 

item to be shipped pursuant to this 

section. Once furnished to a particular 

consignee, the ECCN that applies to any 

item need not be refurnished to that 

consignee at the time the same 

reexporter or transferor makes an 

additional shipment of the same item, if 

the information remains accurate at the 

time of the additional shipment. 

(iii) For purposes of determining 

reexport or transfer eligibility under this 

section, the consignee may rely on the 

ECCN provided to it by the party 

required to furnish the ECCN under 

paragraph (d)(1)(i) or (ii) of this section 

unless the consignee knows that the 

ECCN is incorrect or has changed. The 

word ‘‘knows’’ has the same meaning as 

the term ‘‘knowledge’’ in § 772.1 of the 

EAR. 

(2) Prior Consignee Statement. The 

exporter, reexporter and 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. One statement may be used 

for multiple shipments of the same 

items between the same parties so long 

as the party names, the description(s) of 

the item(s) and the ECCNs are correct. 

The exporter, reexporter, and transferor 

must maintain a log or other record that 

identifies each shipment made pursuant 

to this section and the specific 

consignee statement that is associated 

with each shipment. 

[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 paragraphs (a) or (b) of 

License Exception APR (15 CFR 

740.16(a) or (b)); 

(iv) Agrees not to export, reexport or 

transfer these items to any destination, 

use or user prohibited by the United 

States Export Administration 

Regulations; and 

(v) Agrees to provide copies of this 

document and all other export, reexport 

or transfer records (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) Notification to consignee of STA 

shipment. With each shipment under 

License Exception STA, the exporter (or 

reexporter or transferor as applicable), 

must notify the consignee in writing 

that the shipment is made pursuant to 

License Exception STA. The notice 

must either specify which items are 

subject to License Exception STA or 

state that the entire shipment is made 

pursuant to License Exception STA. The 

notice must clearly identify the 

shipment to which it applies. The 

written notice may be conveyed by 

paper documents or by electronic 

methods such as facsimile or email. 

(4) Requirements for releases of 

software source code or technology 

within a single country. Instead of the 

requirement of paragraphs (d)(1) 

through (d)(3) of this section, the party 

releasing software source code or 

technology to a national of a country 

listed in paragraph (c)(1) or (c)(2) of this 

section must notify the recipient of the 

software source code or technology of 

the restrictions upon further release of 

the software source code or technology. 

The notification must either expressly 

inform the recipient that the EAR 

impose limits on further disclosure or 

must be in the form of an agreement in 

which the recipient agrees to limits on 

further disclosure. Any such agreement 

must impose limits that are equivalent 

to or more restrictive than all limits on 

further disclosure that are imposed by 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35289 

the EAR. The notification must be in 

writing and a copy of it must be retained 

by the party making the release and the 

recipient of the release. The notification 

may be in a separate document or 

included in a document such as a 

contract or a nondisclosure agreement. 

If the document has an expiration date, 

it must provide that the restrictions on 

disclosure do not expire. 

(e) Limitation on subsequent exports, 

reexports or in country transfers. If a 

commodity has been exported, 

reexported or transferred in-country 

pursuant to this section, it may not be 

subsequently exported, reexported or 

transferred in-country pursuant to 

paragraphs (a) or (b) of License 

Exception APR (§ 740.16(a) or (b) of the 

EAR). Paragraphs (a) and (b) of License 

Exception APR do not authorize exports 

of software or technology. 

(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. 

PART 743—[AMENDED] 

■ 9. 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). 

■ 10. 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 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: License Exception STA may not be 

used to ship any item in this entry to any of 

the eight destinations listed in § 740.20(c)(2) 

of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any item in this entry to any of 

the eight destinations listed in § 740.20(c)(2) 

of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any item in 1C007.c or d to any 

of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any item in 1C010.c or d to any 

of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any item in this entry to any of 

the eight destinations listed in § 740.20(c)(2) 

of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘software’’ for the 

‘‘development’’ of organic ‘‘matrix’’, metal 

‘‘matrix’’ or carbon ‘‘matrix’’ laminates or 

‘‘composites’’ specified in ECCN 1A002 to 

any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight destinations listed 

in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 19. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 1, 


jlentini on DSK4TPTVN1PROD with RULES2
35290 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

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 

* * * * * 

STA: License Exception STA may not be 

used to ship or transmit any item in 1E002.e 

or .f to any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any item in 3A002.g.1 to any of 

the eight destinations listed in § 740.20(c)(2) 

of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any item in 3B001.a.2 to any of 

the eight destinations listed in § 740.20(c)(2) 

of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘software’’ specially 

designed for the ‘‘development’’ or 

‘‘production’’ of equipment specified by 

3A002.g.1 or 3B001.a.2 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘technology’’ 

according to the General Technology Note for 

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

equipment specified by ECCNs 3A002.g.1 or 

3B001.a.2 to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any commodity in 4A001.a.2 to 

any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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). 

* * * * * 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35291 

License Exceptions 

* * * * * 

STA: License Exception STA may not be 

used to ship or transmit ‘‘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) to 

any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 29. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 4, 

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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

■ 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: License Exception STA may not be 

used to ship any commodity in 5A001.b.3, 

.b.5 or .h to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship 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, .b.5 or .h to any of the 

eight destinations listed in § 740.20(c)(2) of 

the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit 5D001.a ‘‘software’’ 

specially designed for the ‘‘development’’ or 

‘‘production’’ of equipment, functions or 

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

or .h; 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 to any of the eight destinations listed 

in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘technology’’ 

according to the General Technology Note for 

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

equipment, functions or features specified by 

5A001.b.3, .b.5 or .h; or for ‘‘software’’ in 

5D001.a that is specified in the STA 

paragraph in the License Exception section of 

ECCN 5D001 to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship commodities in 6A001.a.1.b, 

6A001.a.1.e or 6A001.a.2 (except .a.2.a.4) to 

any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any commodity in: 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.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 

2. ‘‘Focal plane arrays’’ having the 

characteristics listed in the description of 

6A002.a.3; or 6A002.e to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any commodity in 6A003.b.3 or 

b.4 to any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: 


jlentini on DSK4TPTVN1PROD with RULES2
35292 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

6A004 Optical equipment and components, 

as follows (see List of Items Controlled). 

* * * * * 

License Exceptions 

* * * * * 

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

STA may not be used to ship any commodity 

in 6A004.c or .d to any of the eight 

destinations in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: 

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: License Exception STA may not be 

used to ship 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 or .e 

(only for underwater receivers incorporating 

magnetometers specified in 6A006.a.1 or 

6A006.a.2) to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any commodity in 6A008.d, 

6A008.h or 6A008.k to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship any commodity in this entry to 

any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘software’’ specially 

designed for the ‘‘development’’ or 

‘‘production’’ of equipment specified by 

ECCNs 6A004.c, 6A004.d, 6A008.d, 6A008.h, 

6A008.k, or 6B008 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR 

* * * * * 

■ 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: License Exception STA may not be 

used to ship transmit software in 6D003.a to 

any of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit any technology in 

this entry to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 45. 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: License Exception STA may not be 

used to ship or transmit software in 7D003.a, 

b, c, d.1 to d.4 or d.7 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 46. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 7, 

ECCN 7E001 is amended by: 

■ a. Revising the MT paragraph in the 

License Requirements section; and 

■ b. 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 Requirements 

* * * * * 


jlentini on DSK4TPTVN1PROD with RULES2
Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 35293 

Controls Country chart 

*******

MT applies to technology for equipment controlled for MT reasons. MT does not apply to 

‘‘technology’’ for equipment controlled by 7A008. MT does apply to ‘‘technology’’ for equipment specified in 7A001, 7A002 or 7A003.d that meets or exceeds parameters of 7A101, 

7A102 or 7A103.

MT Column 1. 

* * * * * * * 

License Exceptions 

* * * * * 

STA: License Exception STA may not be 

used to ship or transmit any technology in 

this entry to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 47. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 7, 

ECCN 7E002 is amended by: 

■ a. Revising the MT paragraph in the 

License Requirements section; and 

■ b. 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 

‘‘production’’ of equipment controlled by 7A 

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

License Requirements 

* * * * * 

Controls Country chart 

*******

MT applies to technology for equipment controlled for MT reasons. MT does not apply to 

‘‘technology’’ for equipment controlled by 7A008. MT does apply to ‘‘technology’’ for equipment specified in 7A001, 7A002 or 7A003.d that meets or exceeds parameters of 7A101, 

7A102 or 7A103.

MT Column 1. 

* * * * * * * 

License Exceptions 

* * * * * 

STA: License Exception STA may not be 

used to ship or transmit any technology in 

this entry to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 48. 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: License Exception STA may not be 

used to ship any commodity in 8A001.b, 

8A001.c or 8A001.d to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 49. 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: License Exception STA may not be 

used to ship any commodity in 8A002.b, h, 

j, o.3, or p to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 50. 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the 

eight destinations listed in § 740.20(c)(2) of 

the EAR. 

* * * * * 

■ 51. 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: License Exception STA may not be 

used to ship or transmit any software in this 

entry to any of the eight destinations listed 

in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 52. 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight 


jlentini on DSK4TPTVN1PROD with RULES2
35294 Federal Register / Vol. 76, No. 116 / Thursday, June 16, 2011 / Rules and Regulations 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 53. 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: License Exception STA may not be 

used to ship or transmit technology in 

8E002.a to any of the eight destinations listed 

in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 54. 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: License Exception STA may not be 

used to ship commodities in 9B001.b to any 

of the eight destinations listed in 

§ 740.20(c)(2) of the EAR. 

* * * * * 

■ 55. 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: License Exception STA may not be 

used to ship or transmit ‘‘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 to any of the eight 

destinations listed in § 740.20(c)(2) of the 

EAR. 

* * * * * 

■ 56. 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: License Exception STA may not be 

used to ship or transmit ‘‘software’’ specially 

designed or modified for the ‘‘production’’ of 

equipment specified by 9B001.b to any of the 

eight destinations listed in § 740.20(c)(2) of 

the EAR. 

* * * * * 

■ 57. 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: License Exception STA may not be 

used to ship or transmit software in 9D004.a 

and 9D004.c to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 58. 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: License Exception STA may not be 

used to ship or transmit any technology in 

this entry to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 59. 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: License Exception STA may not be 

used to ship or transmit any technology in 

this entry to any of the eight destinations 

listed in § 740.20(c)(2) of the EAR. 

* * * * * 

■ 60. 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: License Exception STA may not be 

used to ship or transmit any technology in 

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

9E003.h to any of the eight destinations listed 

in § 740.20(c)(2) of the EAR. 

* * * * * 

Dated: June 8, 2011. 

Gary Locke, 

Secretary of Commerce. 

[FR Doc. 2011–14705 Filed 6–15–11; 8:45 am] 

BILLING CODE 4910–13–P 


jlentini on DSK4TPTVN1PROD with RULES2