52880 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations 

CDCCLs. However, once the airworthiness 

limitations section has been revised, future 

maintenance actions on these components 

must be done in accordance with the 

CDCCLs. 

FAA AD Differences 

Note 3: This AD differs from the MCAI 

and/or service information as follows: No 

differences. 

Other FAA AD Provisions 

(g) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

Send information to ATTN: Shahram 

Daneshmandi, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue, SW., Renton, Washington 98057– 

3356; telephone (425) 227–1112; fax (425) 

227–1149. Before using any approved AMOC 

on any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act, 

the Office of Management and Budget (OMB) 

has approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(h) Refer to MCAI European Aviation 

Safety Agency Airworthiness Directive 2006– 

0199, dated July 11, 2006; and Saab Fuel 

Airworthiness Limitations 2000 LKS 009032, 

dated February 14, 2006; for related 

information. 

Material Incorporated by Reference 

(i) You must use Saab Fuel Airworthiness 

Limitations 2000 LKS 009032, dated 

February 14, 2006, to do the actions required 

by this AD, unless the AD specifies 

otherwise. 

(1) The Director of the Federal Register 

previously approved the incorporation by 

reference of this service information on 

December 11, 2007 (72 FR 62564, November 

6, 2007). 

(2) For service information identified in 

this AD, contact Saab Aircraft AB, SAAB 

Aerosystems, SE 581 88, Linko ̈ping, Sweden; 

telephone +46 13 18 5591; fax +46 13 18 

4874; e-mail 

saab2000.techsupport@saabgroup.com; 

Internet http://www.saabgroup.com. 

(3) You may review copies of the service 

information at the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue, SW., Renton, 

Washington. For information on the 

availability of this material at the FAA, call 

425–227–1221 or 425–227–1152. 

(4) You may also review copies of the 

service information that is incorporated by 

reference at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, or go 

to: http://www.archives.gov/federal_register/

code_of_federal_regulations/

ibr_locations.html. 

Issued in Renton, Washington, on 

September 18, 2009. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–24542 Filed 10–14–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 730, 734, 738, 740, 742, 

744, 772 and 774 

[Docket No. 080211163–9110–02] 

RIN 0694–AE18 

Encryption Simplification Rule: Final 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) published the interim 

final rule entitled ‘‘Encryption 

Simplification’’ on October 3, 2008 (73 

FR 57495). This rule finalizes that rule, 

corrects errors published in the October 

3, 2008 interim final rule, and resolves 

inconsistencies in that rule identified by 

the public. 

DATES: Effective Dates: This rule is 

effective October 15, 2009. 

ADDRESSES: Written comments on this 

final rule may be sent by e-mail to 

publiccomments@bis.doc.gov. Include 

‘‘Encryption rule’’ in the subject line of 

the message. Comments may also be 

submitted by mail or hand delivery to 

Sharron Cook, Office of Exporter 

Services, Regulatory Policy Division, 

Bureau of Industry and Security, 

Department of Commerce, 14th St. & 

Pennsylvania Avenue, NW., Room 2705, 

Washington, DC 20230, ATTN: 

Encryption rule; or by fax to (202) 482– 

3355. 

FOR FURTHER INFORMATION CONTACT: For 

questions of a general nature contact 

Sharron Cook, Office of Exporter 

Services, Regulatory Policy Division at 

(202) 482–2440 or e-mail: 

scook@bis.doc.gov. 

For questions of a technical nature 

contact: The Information Technology 

Division, Office of National Security 

and Technology Transfer Controls at 

202–482–0707 or e-mail: C. Randall 

Pratt at cpratt@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

BIS published the interim final rule 

entitled ‘‘Encryption Simplification’’ on 

October 3, 2008 (73 FR 57495). This rule 

removed section 744.9 of the EAR, 

which set forth requirements for 

authorization from BIS for U.S. persons 

to provide technical assistance 

(including training) to foreign persons 

with the intent to aid a foreign person 

in the development or manufacture 

outside the United States of encryption 

commodities or software that, if of U.S.- 

origin, would be ‘‘EI’’ controlled under 

ECCNs 5A002 or 5D002. Section 744.9 

was added to the EAR in 1996 when 

jurisdiction over dual-use encryption 

items was transferred from the 

Department of State to the Department 

of Commerce. However, other parts of 

the EAR that referred to section 744.9 

were inadvertently not removed. 

Therefore, this rule removes these 

references in § 730.5(d), § 734.5(c), 

§ 736.2(b)(7)(ii), and § 744.1(a)(1). In 

addition, other corrections are made to 

harmonize with revisions made in the 

‘‘Encryption Simplification’’ rule 

published on October 3, 2008. Some of 

the revisions in this rule are the results 

of requests for clarification from the 

public on the October 3 encryption 

simplification rule. 

Part 730 

The last sentence in paragraph (d) of 

section 730.5 is removed, because it 

makes reference to technical assistance 

in section 744.9, which was removed by 

the October 3 encryption simplification 

rule. 

Part 734 

Section 734.4 is amended to revise 

paragraphs (b)(1) and (b)(2) in order to 

harmonize with the October 3 

encryption simplification rule and 

corrections thereto. Paragraph (b)(1)(iv) 

is added to conform with the 

clarifications in this correction by 

making it clear that section 740.17(b)(4) 

is a separate authorization. Paragraph 

(b)(2) is revised to simply state that all 

items classified under ECCNs 5A992, 

5D992, or 5E992 are eligible for 

consideration under the de minimis 

rules. Paragraph (c) of section 734.5 is 

removed because it refers to technical 

assistance in section 744.9, which was 


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Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations 52881 

removed by the October 3 encryption 

simplification rule. 

Part 736 

Paragraph (b)(7)(ii) of section 736.2 is 

removed and reserved, because it refers 

to technical assistance in section 744.9, 

which was removed by the October 3 

encryption simplification rule. 

Part 738 

Paragraph (a)(2)(ii)(B) of section 738.4 

is amended by removing a reference to 

the mass market review requirements in 

section 742.15(b) for 5A992 and 5D992, 

and replacing it with an instruction that 

the export may be executed under the 

No License Required (NLR) principle 

unless the License Requirement section 

refers the reader to another section of 

the EAR. E.g., in ECCN 5A002 the 

License Requirement section not only 

refers the reader to the Commerce 

Country Chart in Supplement No. 1 of 

part 738, but it also refers the reader to 

section 742.15 of the EAR to determine 

license requirements. 

Part 740 

Section 740.17(b)(1)–(3): paragraph (b) 

is changed for clarity, transparency, and 

simplification of language authorizing 

export after review. Authorization 

language to Supplement 3 countries 

under the subparagraphs of (b)(1) was 

complex and confusing to exporters. 

Under the reorganization of License 

Exception ENC, there is no need to 

exclude exports to countries listed in 

Supplement 3 from authorization under 

paragraphs (b)(2) and (b)(3). Such 

exclusions are removed here. Once a 

review has been submitted, Paragraph 

(b)(1)(i) is intended to authorize 

immediate export to the Supplement 3 

countries of all encryption items (except 

‘‘cryptanalytic items’’ to ‘‘government 

end-users’’). After the review is 

complete, all items except technology 

and Open Cryptographic Interfaces 

(OCIs) are authorized by paragraphs 

(b)(2), (b)(3), or (b)(4). As the language 

has been revised, four sets of 

authorization language will cover 

almost all items authorized for export 

and reexport. The four authorizations 

will be: 

(a) and (b)(1)(i) technology and OCI; 

(a) and (b)(2) ENC restricted 

commodities and software; 

(a) and (b)(3) ENC unrestricted 

commodities and software; and 

(b)(4) ENC commodities and software as 

described. 

Prior to the implementation of this final 

rule, paragraph (b)(4) authorized 

immediate export under (b)(2) or (b)(3) 

for source code and key length limited 

items. However, with the authorization 

under (b)(4), it was no longer clear that 

(b)(2) items were not authorized for 

immediate export to ‘‘government endusers’’ outside the Supplement 3 

countries. The added language 

implemented by this rule makes clear 

that this continues to be true. Products 

that would not be authorized for 

permanent export to certain 

‘‘government end-users’’ should not be 

authorized for temporary export to those 

end-users. 

This rule revises section 

740.17(b)(1)(i) of the EAR to remove the 

phrase ‘‘(excluding source code),’’ 

because BIS has received a number of 

inquires from the public who are 

confused by this phrase appearing in 

this paragraph. This paragraph describes 

exports and reexports to government 

end-users and non-government endusers located in a country listed in 

Supplement No. 3 of section 740.17 of 

the EAR that are eligible for License 

Exception ENC once a review request is 

registered with BIS, including 

commodities and software that are 

pending review (under section 

742.15(b)) for mass market treatment 

(ECCNs 5A992.c and 5D992.c). 

Encryption source code is not eligible 

for such mass market treatment. This is 

what the phrase ‘‘(excluding source 

code)’’ refers to. Although this phrase 

only refers to software that is pending 

review for mass market treatment (under 

section 742.15(b)), and thus does not 

pertain to any other License Exception 

ENC-eligible encryption source code 

(e.g., as described in section 

740.17(b)(2)(ii)), it has nonetheless 

proven confusing and so is being 

removed. 

This rule revises section 740.17(b)(4) 

to fix an incorrect citation and clarify 

concerning what is authorized by each 

subsection of paragraph (b)(4). 

Paragraph (b)(4) should contain specific 

authorization language like all other 

License Exception ENC paragraphs. The 

addition of the introductory sentence 

accomplishes this. The second sentence 

makes it clear that paragraph (b)(4)(ii) 

does not authorize subsequent export 

from the United States of the foreign 

developed products. 

This rule adds text to sections 

740.17(b)(4)(ii) and 742.15(b)(2) to 

provide clarification to the regulated 

community that foreign products 

developed with or incorporating U.S.- 

origin encryption source code 

authorized for export under License 

Exception TSU (section 740.13(e)) that 

are subject to the EAR are also excluded 

from review requirements and that after 

a mass market review request is 

submitted, there is no waiting period for 

export to certain end-users as 

authorized by sections 740.17(a) and 

740.17(b)(1)(i), or for certain encryption 

items as authorized by section 

740.17(b)(1)(ii). 

This rule also makes slight editorial 

corrections to sections 740.9(c)(3), 

740.13(d)(2), 740.17(b)(2)(ii) and 

740.17(e)(1)(i)(C). 

Part 742 

The second sentence in paragraph 

(b)(1) of section 742.15 is revised and 

the fourth sentence removed to conform 

to the new mandatory SNAP–R 

procedures (published August 21, 2008, 

effective October 20, 2008, 73 FR 49323) 

for submission of review requests. 

Supplement No. 6 to part 742 

‘‘Guidelines for Submitting Review 

Requests for Encryption Items’’ is 

amended by removing the fourth and 

fifth sentences of the introductory 

paragraph to harmonize with the new 

mandatory SNAP–R procedures 

(published August 21, 2008, effective 

October 20, 2008, 73 FR 49323) for 

submission of review requests. This rule 

adds text to introductory paragraph (a), 

which was inadvertently omitted in the 

October 3 rule, explaining that 

appropriate technical information must 

accompany the review request. This 

language was in the introductory 

paragraph to Supplement 6 prior to the 

October 3 publication. The intent was to 

move it to paragraph (a) where it would 

be more visible. Instead it was 

inadvertently removed. Also, paragraph 

(c)(6) is corrected to refer to ECC 

(elliptic curve cryptography), as 

opposed to ECCN (Export Control 

Classification Number). 

Part 744 

The fifth sentence in paragraph (a)(1) 

of section 744.1 of the EAR is removed, 

because it refers to section 744.9, which 

was removed by the October 3 

encryption simplification rule. 

Part 772 

Exporters have been confused by the 

Nota Bene to the ‘‘personal area 

network’’ (PAN) definition. This rule 

deletes some of the text in that note for 

clarity. In one of the deleted sentences, 

the words ‘‘enterprise’’ and ‘‘long 

range’’ in the absence of a specific 30 

meter range limitation could be read to 

include intermediate-range devices. 

What is authorized by section 

740.17(b)(4)(iii) are certain ‘‘PAN’’ items 

with nominal operating ranges not 

exceeding 30 meters. This rule deletes 

other text where the language could also 

be misunderstood to describe items 

clearly not eligible for section 

740.17(b)(4)(iii) treatment. ‘‘PAN’’ items 

are not necessarily eligible for section 


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740.17(b)(4)(iii). Eliminating the 

confusing examples should help the 

public understand why a ‘‘data capable 

wireless telephone’’, for example, is not 

eligible for section 740.17(b)(4)(iii) selfclassification. 

In addition, this rule revises the Nota 

Bene for the term ‘‘ancillary 

cryptography’’ by making editorial 

clarifications, as well as adding a 

footnote to clarify that for the purpose 

of this definition, the term 

‘transportation systems’ does not 

include any Automatic Identification 

System (AIS)/Vessel Traffic Service 

(VTS). Secure AIS/VTS and their 

maritime applications are not 

considered ‘‘ancillary cryptography’’. 

Supplement No. 1 to Part 774— 

Commerce Control List 

ECCN 5B002 is amended by adding 

License Exception ENC to the License 

Exception section to clarify that this 

ECCN may be considered for License 

Exception ENC eligibility. 

ECCN 5E002 is amended by adding 

License Exception ENC to the License 

Exception section to clarify that this 

ECCN may be considered for License 

Exception ENC eligibility. 

ECCN 5E992 is amended by inserting 

‘‘according to the General Technology 

Note’’ into the heading to more clearly 

define the scope of this ECCN. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

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

Notice of August 13, 2009 (74 Fed. Reg. 

41,325 (August 14, 2009)), has 

continued the Export Administration 

Regulations in effect under the 

International Emergency Economic 

Powers Act. 

Rulemaking Requirements 

1. This final correction rule has been 

determined to be significant for 

purposes of Executive Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor shall any person be 

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. This rule 

involves two collections of information 

subject to the PRA. One of the 

collections has been approved by OMB 

under control number 0694 0088, 

‘‘Multi Purpose Application,’’ and 

carries a burden hour estimate of 58 

minutes for a manual or electronic 

submission. The other collection has 

been approved by OMB under control 

number 0694–0104, ‘‘Commercial 

Encryption Items Under the Jurisdiction 

of the Department of Commerce,’’ and 

carries a burden hour estimate of 7 

hours for a manual or electronic 

submission. Send comments regarding 

these burden estimates or any other 

aspect of these collections of 

information, including suggestions for 

reducing the burden, to Jasmeet Seehra, 

OMB Desk Officer, by e-mail at 

jseehra@omb.eop.gov or by fax to (202) 

395–7285; and to the Office of 

Administration, Bureau of Industry and 

Security, Department of Commerce, 

14th and Pennsylvania Avenue, NW., 

Room 6622, Washington, DC 20230. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

participation, and a delay in effective 

date, are inapplicable because this 

regulation involves a military and 

foreign affairs function of the United 

States (5 U.S.C. 553(a)(1)). Further, no 

other law requires that a notice of 

proposed rulemaking and an 

opportunity for public comment be 

given for this final rule. Because a 

notice of proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule under 

the Administrative Procedure Act or by 

any other law, the analytical 

requirements of the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) are 

not applicable. Therefore, this 

correction regulation is issued in final 

form. Although there is no formal 

comment period, public comments on 

this regulation are welcome on a 

continuing basis. Comments should be 

submitted to Sharron Cook, Office of 

Exporter Services, Bureau of Industry 

and Security, Department of Commerce, 

14th and Pennsylvania Ave., NW., 

Room 2705, Washington, DC 20230. 

List of Subjects 

15 CFR Part 730 

Administrative practice and 

procedure, Advisory committees, 

Exports, Reporting and recordkeeping 

requirements, Strategic and critical 

materials. 

15 CFR Part 734 

Administrative practice and 

procedure, Exports, Inventions and 

patents, Research Science and 

technology. 

15 CFR Parts 738 and 772 

Exports. 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

■ Accordingly, parts 730, 734, 738, 740, 

742, 744, 772, and 774 of the Export 

Administration Regulations (15 CFR 

parts 730–774) are amended as follows: 

PART 730—[AMENDED] 

■ 1. The authority citation for part 730 

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. 2151 note; 

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; 46 U.S.C. app. 

466c; 50 U.S.C. app. 5; 22 U.S.C. 7201 et seq.; 

22 U.S.C. 7210; E.O. 11912, 41 FR 15825, 3 

CFR, 1976 Comp., p. 114; E.O. 12002, 42 FR 

35623, 3 CFR, 1977 Comp., p. 133; E.O. 

12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 

179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 

Comp., p. 256; E.O. 12851, 58 FR 33181, 3 

CFR, 1993 Comp., p. 608; E.O. 12854, 58 FR 

36587, 3 CFR, 1993 Comp., p. 179; E.O. 

12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 

899; E.O. 12938, 59 FR 59099, 3 CFR, 1994 

Comp., p. 950; E.O. 12947, 60 FR 5079, 3 

CFR, 1995 Comp., p. 356; E.O. 12981, 60 FR 

62981, 3 CFR, 1995 Comp., p. 419; E.O. 

13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 

219; E.O. 13026, 61 FR 58767, 3 CFR, 1996 

Comp., p. 228; E.O. 13099, 63 FR 45167, 3 

CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 

44025, 3 CFR, 2001 Comp., p. 783; E.O. 

13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 

786; E.O. 13338, 69 FR 26751, May 13, 2004; 

Notice of August 13, 2009, 74 FR 41,325 

(August 14, 2009); November 10, 2008, 73 FR 

67097 (November 12, 2008). 

§ 730.5 [Amended] 

■ 2. Section 730.5 is amended by 

removing the last sentence in paragraph 

(d). 

PART 734—[AMENDED] 

■ 3. The authority citation for part 734 

continues to read as follows: 

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

U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 

3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 

FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 

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


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

Comp., p. 783; Notice of August 13, 2009, 74 

FR 41,325 (August 14, 2009); November 10, 

2008, 73 FR 67097 (November 12, 2008). 

■ 4. Section 734.4 is amended by: 

■ a. Revising paragraphs (b)(1)(ii), and 

(b)(1)(iii); 

■ b. Adding a new paragraph (b)(1)(iv); 

and 

■ c. Revising paragraph (b)(2) and the 

note to paragraph (b) to read as follows: 

§ 734.4 De Minimis U.S. Content. 

* * * * * 

(b) * * * 

(1) * * * 

(ii) Authorized for License Exception 

ENC by BIS after a review pursuant to 

§ 740.17(b)(3) of the EAR; 

(iii) Authorized for License Exception 

ENC by BIS after a review pursuant to 

§ 740.17(b)(2), and the foreign made 

product will not be sent to any 

destination in Country Group E:1 in 

Supplement No. 1 to part 740 of the 

EAR; or 

(iv) Authorized for License Exception 

ENC pursuant to § 740.17(b)(4). 

(2) U.S. origin encryption items 

classified under ECCNs 5A992, 5D992, 

or 5E992. 

Note to paragraph (b): See supplement No. 

2 to this part for de minimis calculation 

procedures and reporting requirements. 

* * * * * 

§ 734.5 [Amended] 

■ 5. Section 734.5 is amended by 

removing paragraph (c). 

PART 738—[AMENDED] 

■ 6. 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; 46 U.S.C. app. 466c; 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 13, 2009, 74 

FR 41,325 (August 14, 2009). 

■ 7. Section 738.4 is amended by 

revising paragraph (a)(2)(ii)(B) to read as 

follows: 

§ 738.4 Determining whether a license is 

required. 

(a) * * * 

(2) * * * 

(ii) * * * 

(B) If no, a license is not required 

based on the particular Reason for 

Control and destination. Provided that 

General Prohibitions Four through Ten 

do not apply to your proposed 

transaction and the License 

Requirement section does not refer you 

to any other part of the EAR to 

determine license requirements. For 

example, any applicable review 

requirements described in § 742.15(b) of 

the EAR must be met for certain mass 

market encryption items to effect your 

shipment using the symbol ‘‘NLR.’’ 

Proceed to parts 758 and 762 of the EAR 

for information on export clearance 

procedures and recordkeeping 

requirements. Note that although you 

may stop after determining a license is 

required based on the first Reason for 

Control, it is best to work through each 

applicable Reason for Control. A full 

analysis of every possible licensing 

requirement based on each applicable 

Reason for Control is required to 

determine the most advantageous 

License Exception available for your 

particular transaction and, if a license is 

required, ascertain the scope of review 

conducted by BIS on your license 

application. 

* * * * * 

PART 740—[AMENDED] 

■ 8. 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 13, 2009, 74 

Fed. Reg. 41325 (August 14, 2009). 

§ 740.9 [Amended] 

■ 9. Section 740.9 is amended by 

revising the citation ‘‘742.15(b)(2)’’ to 

read ‘‘742.15(b)’’ in paragraph (c)(3). 

■ 10. Section 740.13 is amended by 

revising the last two sentences of 

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

§ 740.13 Technology and Software— 

Unrestricted (TSU). 

* * * * * 

(d) * * * 

(2) Exclusions. * * * (Once such 

mass market encryption software has 

been reviewed by BIS and released from 

‘‘EI’’ and ‘‘NS’’ controls pursuant to 

§ 742.15(b) of the EAR, it is controlled 

under ECCN 5D992.c and is thus 

outside the scope of License Exception 

TSU.) See § 742.15(b) of the EAR for 

exports and reexports of mass market 

encryption products controlled under 

ECCN 5D992.c. 

* * * * * 

■ 11. Section 740.17 is amended by: 

■ a. Removing the phrase ‘‘(excluding 

source code)’’ from paragraph (b)(1)(i); 

■ b. Revising paragraph (b)(1)(ii); 

■ c. Revising the introductory paragraph 

to (b)(2); 

■ d. Removing the phrase ‘‘encryption 

source code that is not otherwise 

eligible’’ and adding the phrase 

‘‘encryption source code is not 

otherwise eligible’’ in its place in 

paragraph (b)(2)(ii); 

■ e. Removing the phrase ‘‘Supplement 

No. 3 to this part or’’ in paragraph (b)(3); 

■ f. Adding a new first sentence to 

paragraph (b)(4) introductory text; 

■ g. Revising paragraph (b)(4)(ii); and 

■ h. Adding a comma after ‘‘open 

cryptographic interface’’, and removing 

the phrase ‘‘exported to a foreign 

developer’’ and adding the phrase ‘‘to a 

foreign developer’’ in its place in 

paragraph (e)(1)(i)(C). 

The revisions and additions read as 

follows: 

§ 740.17 Encryption Commodities, 

Software and Technology (ENC). 

* * * * * 

(b) * * * 

(1) * * * 

(ii) Export and reexport to countries 

not listed in Supplement No. 3 of this 

part. License Exception ENC authorizes 

the export and reexport of the following 

commodities and software (except 

certain exports and reexports to 

‘‘government end-users’’ as further 

described in paragraph (b)(2) of this 

section, or any ‘‘open cryptographic 

interface’’ item): 

* * * * * 

(2) Review required with 30 day wait 

(non-‘‘government end-users’’ only). 

Thirty (30) days after your review 

request is registered with BIS in 

accordance with paragraph (d) of this 

section and subject to the reporting 

requirements in paragraph (e) of this 

section, License Exception ENC 

authorizes the export or reexport of the 

following commodities and software to 

‘‘government end-users’’ located or 

headquartered in a country listed in 

Supplement 3 to this part, and also to 

non-‘‘government end-users’’ located in 

a country not listed in Country Group 

E:1 of Supplement No. 1 to part 740 of 

the EAR: 

* * * * * 

(4) Items excluded from review 

requirements. License Exception ENC 

authorizes the export and reexport of 

the commodities and software described 

in this paragraph (b)(4) without review 

(for encryption reasons) by BIS, except 

that paragraph (b)(4)(ii) of this section 

does not authorize exports from the 

United States of foreign products 

developed with or incorporating U.S.- 

origin encryption source code, 

components, or toolkits. 

* * * * * 

(ii) Foreign products developed with 

or incorporating U.S.-origin encryption 


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52884 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations 

1For the purpose of this definition, the term 

‘‘transportation systems’’ does not include any 

Automatic Identification System (AIS)/Vessel 

Traffic Service (VTS). Secure AIS/VTS and their 

maritime applications are not considered ‘‘ancillary 

cryptography’’. 

source code, components, or toolkits. 

Foreign products developed with or 

incorporating U.S.-origin encryption 

source code, components or toolkits that 

are subject to the EAR, provided that the 

U.S.-origin encryption items have 

previously been reviewed and 

authorized by BIS (or else authorized for 

export under License Exception TSU 

upon meeting the notification 

requirements of section 740.13(e) of the 

EAR, without need for further review) 

and the cryptographic functionality has 

not been changed. Such products 

include foreign-developed products that 

are designed to operate with U.S. 

products through a cryptographic 

interface. 

* * * * * 

PART 742—[AMENDED] 

■ 12. The authority citation for part 742 

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. 3201 et seq.; 

42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 

U.S.C. 7210; Sec 1503, Pub. L. 108–11, 117 

Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 

1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 

3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 

FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 

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

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

Comp., p. 783; Presidential Determination 

2003–23 of May 7, 2003, 68 FR 26459, May 

16, 2003; Notice of August 13, 2009, 74 Fed. 

Reg. 41,325 (August 14, 2009); November 10, 

2008, 73 FR 67097 (November 12, 2008). 

■ 13. Section 742.15 is amended by: 

■ a. Revising the second sentence and 

removing the fourth sentence in 

paragraph (b)(1); and 

■ b. Adding a Note in parentheses after 

the first sentence in paragraph (b)(2). 

The revision and addition read as 

follows: 

§ 742.15 Encryption items. 

* * * * * 

(b) * * * 

(1) Procedures for requesting review. 

* * * Review requests must be 

submitted to BIS in accordance with 

§§ 748.1 and 748.3 of the EAR. See 

paragraph (r) of Supplement No. 2 to 

part 748 of the EAR for special 

instructions about this submission. 

Submissions to the ENC Encryption 

Request Coordinator should be directed 

to the mailing address indicated in 

§ 740.17(e)(1)(ii) of the EAR. BIS will 

notify you if there are any questions 

concerning your request for review (e.g., 

because of missing or incompatible 

support documentation). * * * 

(2) Action by BIS. * * * (Note that 

once a mass market review request is 

submitted, there is no waiting period for 

export or reexport under License 

Exception ENC to certain end users as 

authorized by §§ 740.17(a) and (b)(1)(i), 

or for certain items as authorized by 

§ 740.17(b)(1)(ii), while the mass market 

request is pending review with BIS.) 

* * * 

* * * * * 

■ 14. Supplement No. 6 to part 742 is 

amended by: 

■ a. Revising the introductory text; 

■ b. Adding paragraph (a) introductory 

text; and 

■ c. Revising the acronym ‘‘ECCN’’ to 

read ‘‘ECC’’ in paragraph (c)(6). 

The revision and addition read as 

follows: 

Supplement No. 6 to Part 742— 

Guidelines for Submitting Review 

Requests for Encryption Items 

Review requests for encryption items must 

include all of the documentation described in 

this supplement and be submitted to BIS in 

accordance with §§ 748.1 and 748.3 of the 

EAR. To ensure that your review request is 

properly routed, insert the phrase ‘‘Mass 

market encryption’’, ‘‘License Exception 

ENC’’ or ‘‘Other Encryption’’ (whichever is 

applicable) in Block 9 (Special Purpose) of 

the application form and place an ‘‘X’’ in the 

box marked ‘‘Classification Request’’ in Block 

5 (Type of Application)—Block 5 does not 

provide a separate item to check for the 

submission of encryption review requests. 

Failure to properly complete these items may 

delay consideration of your review request. 

In addition, you must send a copy of your 

review request and all support documents to: 

Attn: ENC Encryption Request Coordinator, 

9800 Savage Road, Suite 6940, Fort Meade, 

MD 20755–6000. 

If you intend to rely on the 30 day 

registration provisions of the regulations, 

express mail certification of these documents 

is needed. 

(a) For all review requests of encryption 

items, you must provide brochures or other 

documentation or specifications related to 

the technology, commodity or software, 

relevant product descriptions, architecture 

specifications, and as necessary for the 

technical review, source code. In addition, 

you must provide the following information 

in a cover letter accompanying your review 

request: 

* * * * * 

PART 744—[AMENDED] 

■ 15. The authority citation for part 744 

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. 3201 et seq.; 

42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 

U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 

1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 

3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 

FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 

12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 

356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 

Comp., p. 228; E.O. 13099, 63 FR 45167, 3 

CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 

44025, 3 CFR, 2001 Comp., p. 783; E.O. 

13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 

786; Notice of August 13, 2009, 74 FR 41,325 

(August 14, 2009); November 10, 2008, 73 FR 

67097 (November 12, 2008). 

§ 744.1 [Amended] 

■ 16. Section 744.1 is amended by 

removing the fifth sentence in paragraph 

(a)(1). 

PART 772—[AMENDED] 

■ 17. The authority citation for part 772 

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 

13, 2009, 74 FR 41,325 (August 14, 2009). 

■ 18. In section 772.1 the definition for 

‘‘ancillary cryptography’’ is amended by 

revising the Nota Bene (N.B.) and the 

definition for ‘‘personal area network’’ 

is amended by revising the Nota Bene to 

read as follows: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

* * * * * 

‘‘Ancillary cryptography’’. * * * 

N.B. Examples of commodities and 

software that perform ‘‘ancillary 

cryptography’’ are items specially designed 

and limited to: Piracy and theft prevention 

for software, music, etc.; games and gaming; 

household utilities and appliances; printing, 

reproduction, imaging and video recording or 

playback (but not videoconferencing); 

business process modeling and automation 

(e.g., supply chain management, inventory, 

scheduling and delivery); industrial, 

manufacturing or mechanical systems 

(including robotics, other factory or heavy 

equipment, and facilities systems controllers, 

such as fire alarms and HVAC); automotive, 

aviation and other transportation systems.1

Commodities and software included in this 

description are not limited to wireless 

communication and are not limited by range 

or key length. 

* * * * * 

‘‘Personal area network’’. * * * 

N.B. ‘‘Personal area network’’ items 

include but are not limited to items designed 

to comply with the Institute of Electrical and 

Electronic Engineers (IEEE) 802.15.1 

standard, class 2 (10 meters) and class 3 (1 

meter), but not class 1 (100 meters) items. 

IEEE 802.15.1 class 2 and class 3 devices 

include hands-free headsets, wireless mice, 

keyboards and printers, bar code scanners 

and game console wireless controllers, as 

well as devices or software for transfer of 

files between devices using Object Exchange 

(OBEX). 

* * * * * 


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Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations 52885 

PART 774—[AMENDED] 

■ 19. 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; 46 U.S.C. app. 466c; 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 13, 2009, 74 

FR 41,325 (August 14, 2009). 

■ 20. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 5 

Telecommunications and ‘‘Information 

Security’’, Part 2 Information Security, 

Export Control Classification Number 

(ECCN) 5B002 is amended by revising 

the License Exception section to read as 

follows: 

5B002 Information Security—test, 

inspection and ‘‘production’’ equipment. 

* * * * * 

License Exceptions 

LVS: N/A 

GBS: N/A 

CIV: N/A 

ENC: Yes for certain EI controlled 

equipment, see § 740.17 of the EAR for 

eligibility. 

* * * * * 

■ 21. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 5 

Telecommunications and ‘‘Information 

Security’’, Part 2 Information Security, 

Export Control Classification Number 

(ECCN) 5E002 is amended by revising 

the License Exception section to read as 

follows: 

5E002 ‘‘Technology’’ according to the 

General Technology Note for the 

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

equipment controlled by 5A002 or 5B002 or 

‘‘software’’ controlled by 5D002. 

* * * * * 

License Exceptions 

CIV: N/A 

TSR: N/A 

ENC: Yes for certain EI controlled 

technology, see § 740.17 of the EAR for 

eligibility. 

* * * * * 

■ 22. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 5 

Telecommunications and ‘‘Information 

Security’’, Part 2 Information Security, 

Export Control Classification Number 

(ECCN) 5E992 is amended by revising 

the Heading to read as follows: 

5E992 ‘‘Information Security’’ 

‘‘technology’’ according to the General 

Technology Note, not controlled by 5E002. 

* * * * * 

Dated: October 7, 2009. 

Matthew S. Borman, 

Acting Assistant Secretary for the Bureau of 

Industry and Security. 

[FR Doc. E9–24697 Filed 10–14–09; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Part 558 

[Docket No. FDA–2009–N–0665] 

New Animal Drugs for Use in Animal 

Feeds; Monensin; Tylosin 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Final rule. 

SUMMARY: The Food and Drug 

Administration (FDA) is amending the 

animal drug regulations to reflect 

approval of a supplemental new animal 

drug application (NADA) filed by 

Elanco Animal Health, A Division of Eli 

Lilly & Co. The supplemental NADA 

revises limitations for liquid Type B 

medicated cattle feeds containing 

tylosin phosphate. 

DATES: This rule is effective October 15, 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Cindy L. Burnsteel, Center for 

Veterinary Medicine (HFV–130), Food 

and Drug Administration, 7500 Standish 

Pl., Rockville, MD 20855, 240–276– 

8341, e-mail: 

cindy.burnsteel@fda.hhs.gov. 

SUPPLEMENTARY INFORMATION: Elanco 

Animal Health, A Division of Eli Lilly 

& Co., Lilly Corporate Center, 

Indianapolis, IN 46285, filed a 

supplement to NADA 12–491 for use of 

TYLAN (tylosin phosphate) Type A 

medicated article. For liquid Type B 

medicated cattle feeds containing 

tylosin phosphate, the supplement 

removes the presolubilization 

instructions previously required for 

manufacture and reduces the expiry 

from 8 weeks to 31 days. The 

supplemental NADA is approved as of 

September 8, 2009, and the regulations 

in 21 CFR 558.625 are amended to 

reflect the approval. In addition, the 

limitations for two-way combination 

drug medicated liquid feeds containing 

tylosin and monensin in 21 CFR 

558.355 are amended to reflect the 

revised limitations for tylosin liquid 

feeds. 

Approval of this supplemental NADA 

did not require review of additional 

safety or effectiveness data or 

information. Therefore, a freedom of 

information summary is not required. 

The agency has determined under 21 

CFR 25.33 that this action is of a type 

that does not individually or 

cumulatively have a significant effect on 

the human environment. Therefore, 

neither an environmental assessment 

nor an environmental impact statement 

is required. 

This rule does not meet the definition 

of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because 

it is a rule of ‘‘particular applicability.’’ 

Therefore, it is not subject to the 

congressional review requirements in 5 

U.S.C. 801–808. 

List of Subjects in 21 CFR Part 558 

Animal drugs, Animal feeds. 

■ Therefore, under the Federal Food, 

Drug, and Cosmetic Act and under the 

authority delegated to the Commissioner 

of Food and Drugs and redelegated to 

the Center for Veterinary Medicine, 21 

CFR part 558 is amended as follows: 

PART 558—NEW ANIMAL DRUGS FOR 

USE IN ANIMAL FEEDS 

■ 1. The authority citation for 21 CFR 

part 558 continues to read as follows: 

Authority: 21 U.S.C. 360b, 371. 

■ 2. In § 558.355, revise paragraph 

(f)(3)(ii)(b) to read as follows: 

§ 558.355 Monensin. 

* * * * * 

(f) * * * 

(3) * * * 

(ii) * * * 

(b) Limitations. Feed only to cattle 

being fed in confinement for slaughter. 

Feed continuously as sole ration at the 

rate of 50 to 480 milligrams of monensin 

and 60 to 90 milligrams of tylosin per 

head per day. Combination drug liquid 

Type B medicated feeds may be used to 

manufacture dry Type C medicated 

feeds as in § 558.625(c) of this chapter. 

* * * * * 

§ 558.625 [Amended] 

■ 3. In § 558.625, remove and reserve 

paragraph (c)(2)(i); and in paragraph 

(c)(3), remove ‘‘8 weeks’’ and in its 

place add ‘‘31 days’’. 

Dated: September 25, 2009. 

Steven D. Vaughn, 

Director, Office of New Animal Drug 

Evaluation, Center for Veterinary Medicine. 

[FR Doc. E9–24716 Filed 10–14–09; 8:45 am] 

BILLING CODE 4160–01–S 


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