41958 Federal Register / Vol. 76, No. 136 / Friday, July 15, 2011 / Proposed Rules 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 730, 732, 734, 738, 740, 

742, 743, 744, 746, 748, 756, 762, 770, 

772 and 774 

[Docket No. 110310188–1335–01] 

RIN 0694–AF17 

Proposed Revisions to the Export 

Administration Regulations (EAR): 

Control of Items the President 

Determines No Longer Warrant Control 

Under the United States Munitions List 

(USML) 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Proposed Rule. 

SUMMARY: President Obama directed the 

Administration in August 2009 to 

conduct a broad-based review of the 

U.S. export control system in order to 

identify additional ways to enhance 

national security. Secretary of Defense 

Gates described in April 2010 the initial 

results of that effort and why 

fundamental reform of the U.S. export 

control system is necessary to enhance 

national security. The Departments of 

Commerce and State described in two 

December 2010 Advanced Notice of 

Proposed Rulemakings the 

Administration’s general plans for 

reviewing and revising the two primary 

lists of controlled items—the Commerce 

Control List (CCL) and the United States 

Munitions List (USML)—to accomplish 

this objective by, inter alia, making the 

lists more ‘‘positive,’’ ‘‘aligned,’’ and 

‘‘tiered.’’ This rule proposes a new 

regulatory construct for the transfer of 

items on the USML that, in accordance 

with section 38(f) of the Arms Export 

Control Act (AECA) (22 U.S.C. 

2778(f)(1)), the President determines no 

longer warrant control under the AECA 

and that would be controlled under the 

Export Administration Regulations 

(EAR) once the congressional 

notification requirements of section 

38(f) and corresponding amendments to 

the International Traffic in Arms 

Regulations (ITAR) (22 CFR parts 120– 

130) and its USML and the EAR and its 

CCL are completed. In addition to 

proposing a regulatory construct for 

transferring these items into the CCL, 

this rule proposes the transfer of an 

initial tranche of items from USML 

Category VII (Tanks and Military 

Vehicles) to the CCL. This rule also 

proposes amending the EAR to establish 

a process by which certain items 

moving from the USML to the CCL 

would be made eligible for License 

Exception Strategic Trade Authorization 

(STA), and proposes EAR amendments 

related to movement of USML items to 

the CCL, such as new definitions of 

relevant terms, including ‘‘specially 

designed,’’ ‘‘end items,’’ ‘‘parts,’’ and 

‘‘components.’’ Finally, this notice 

proposes establishing a new holding 

Export Control Classification Number 

(ECCN) in which items that warrant a 

significant level of control, but are not 

otherwise classified on the CCL, may be 

temporarily placed. 

DATES: Comments must be received by 

BIS no later than September 13, 2011. 

ADDRESSES: Comments on this rule may 

be submitted to the Federal rulemaking 

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

regulations.gov ID for this rule is: BIS– 

2011–0015. Comments may also be 

submitted via e-mail to 

publiccomments@bis.doc.gov or on 

paper to Regulatory Policy Division, 

Bureau of Industry and Security, Room 

2099B, U.S. Department of Commerce, 

14th St. and Pennsylvania Ave., NW., 

Washington, DC 20230. Please refer to 

RIN 0694–AF17 in all comments and in 

the subject line of e-mail comments. 

FOR FURTHER INFORMATION CONTACT: 

Timothy Mooney, Regulatory Policy 

Division, Bureau of Industry and 

Security, Department of Commerce, 

Phone: (202) 482–2440, Fax: (202) 482– 

3355, E-mail: 

timothy.mooney@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

President Obama directed in August 

2009 a broad-based interagency review 

of the U.S. export control system, 

including a review of the items on the 

USML to determine which, if any, 

continue to warrant ITAR controls. In 

April 2010, Secretary of Defense Gates 

described the initial results of this 

review and why fundamental reform of 

the export control system, including its 

lists of controlled items, is necessary to 

enhance national security. In December 

2010, the Departments of Commerce and 

State described in two Advanced Notice 

of Proposed Rulemakings that they and 

the Defense Department were reviewing 

the State Department’s USML and the 

Commerce Department’s CCL and were 

considering how they could be revised 

to respond to the President’s 

instructions and to satisfy Section 38(f) 

of the AECA, 22 U.S.C. 2778(f)(1), 

which states that the ‘‘President shall 

periodically review the items on the 

[USML] to determine what items, if any, 

no longer warrant export controls under 

[section 2778].’’ See ‘‘Commerce Control 

List: Revising Descriptions of Items and 

Foreign Availability,’’ 75 FR 76664 (Dec. 

9, 2010); ‘‘Revision to the United States 

Munitions List,’’ 75 FR 76935 (Dec. 10, 

2010). In addition, the Departments of 

Commerce and State requested public 

comments in the ANPRs on how the 

lists could be made more ‘‘positive,’’ 

‘‘aligned,’’ and ‘‘tiered.’’ As described in 

the ANPRs, ‘‘positive’’ lists use 

objective criteria for describing 

controlled items rather than subjective, 

generic, or design-intent criteria. 

‘‘Aligned’’ lists are those that are 

structured similarly. ‘‘Tiered’’ lists 

identify the significance of the 

controlled items. Such lists will better 

reflect contemporary national security 

and foreign policy objectives, reduce 

confusion about which items are 

controlled and how, and improve the 

ability of the U.S. Government to 

monitor and enforce controls on 

technology transfers with national 

security implications while helping to 

speed the provision of equipment to 

allies and partners who fight alongside 

United States armed forces in coalition 

operations. 

Based on the results of the Defense 

Department-led review of the USML, the 

President has determined, pursuant to 

AECA section 38(f), that multiple types 

of items no longer warrant control on 

the USML and that their jurisdictional 

status should be changed so that they 

become subject to the EAR and its 

controls. Before the President may make 

such jurisdictional changes, however, 

he must report the results of the review 

to Congress and wait 30 days before 

removing any such items from the 

USML. The notice must also ‘‘describe 

the nature of any controls to be imposed 

on that item under any other provision 

of law.’’ 22 U.S.C. 2778(f)(1). The 

purpose of this proposed rule is to 

describe how items that no longer 

warrant control on the USML will be 

controlled by the EAR and its CCL. The 

State Department will reference this 

proposed rule, and any applicable 

follow-on proposed amendments to 

particular CCL categories, when it 

submits its 38(f) notices to Congress 

prior to publishing the final rules that 

would amend the corresponding USML 

category or groups of subcategories. 

As a result of the Defense Departmentled review of the USML, the Department 

of State plans to propose amendments to 

the USML to transfer certain items to 

the CCL and to make each of its 

categories more positive, and aligned 

with the CCL. Thus, for example, 

instead of controlling on the USML all 

generic ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ that are 

in any way ‘‘specifically designed, 

modified, adapted, or configured’’ for a 

defense article, regardless of military 


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significance, it will list the specific 

types of parts, components, accessories 

and attachments that warrant ITAR 

controls. All other generic parts, 

components, accessories and 

attachments—and the technology for 

their ‘‘production,’’ ‘‘development,’’ or 

‘‘use’’—that are ‘‘specially designed’’ for 

an item formerly on the USML and not 

specifically identified on the USML will 

become subject to the jurisdiction of the 

EAR and identified on its CCL after the 

completion of the AECA section 38(f) 

process and subsequent corresponding 

amendments to the ITAR and its USML, 

and to the EAR and its CCL. Based on 

the same Defense Department-led 

review of the USML, the State 

Department also plans to change the 

jurisdictional status of militarily less 

significant end items, such as military 

recovery vehicles (i.e., tow trucks), 

when it revises the USML, so that they 

become subject to the EAR once the 

same process and amendments are 

completed. 

Wassenaar Arrangement Munitions List 

(WAML) Items Currently on the CCL 

The term ‘‘dual-use’’ is often 

informally used to describe the types of 

items subject to the EAR. See 15 CFR 

730.3. A dual-use item has commercial 

applications and also has military 

applications or proliferation concerns. 

However, the items subject to the EAR 

encompass not only commercial items 

with military applications and 

proliferation concerns, but also items 

that are, by their form and fit, uniquely 

used in military end items. For example, 

items on the WAML (formerly known as 

the International Munitions List) that 

are now subject to the EAR are classified 

on the CCL under ECCNs ending in 

‘‘018.’’ 

In addition to the ‘‘018’’ items, under 

ECCN 0A919, the EAR controls the 

reexports of certain foreign-made 

munitions items that incorporate ECCN 

6A003.b.4.b cameras that are not 

otherwise subject to the ITAR. This 

notice proposes expanding 0A919 to 

also include foreign-made munitions 

items that incorporate more than 10% 

‘‘600 series’’ controlled content. This 

rule also makes conforming changes 

elsewhere in the EAR to reflect this 

control. 

Addressing a Larger Movement of Items 

From the USML to the CCL 

This proposed rule would create a 

new regulatory structure to address the 

movement of items from the USML to 

the CCL resulting from the revision of 

the USML, but still warrant control by 

the U.S. Government. This movement is 

expected to be different in scale from 

previous migrations of USML items to 

the CCL, so it requires more substantial 

modifications of the CCL. This proposed 

rule would impose appropriate controls, 

consistent with Wassenaar Arrangement 

commitments, other multilateral export 

control regime commitments and 

national security, while minimizing the 

amount of restructuring to the CCL and 

the rest of the EAR. The movement of 

items from the USML to the CCL will 

require some special provisions to be 

added to the EAR, but these proposed 

changes are intended to be consistent 

with the existing EAR structure as much 

as possible. 

Structure of the Discussion of the 

Proposed Changes in This Rule 

This proposed rule includes a number 

of changes to the CCL and the EAR to 

address the movement of items from the 

USML to the CCL. This section provides 

an outline of the changes that are 

discussed in further detail under the 

heading ‘‘Proposed Changes.’’ The 

discussion of the changes are grouped 

into four broad headings, described 

under (1)–(4), below. Under each of the 

broad headings, this rule provides a 

discussion of the changes, which often 

touch on various parts or sections of the 

CCL and/or other parts of the EAR 

described under paragraphs at the (A), 

(i), (a) level below. This outline is not 

intended to be an exhaustive 

description of the provisions included 

in this rule, but is intended to help the 

public better understand the proposed 

changes. The public may wish to follow 

a similar structure when drafting 

comments on the proposed rule. 

(1) ‘‘600 Series’’ 

(A) Addition of the ‘‘600 series’’ on 

the CCL. 

(i) Structure of the new ‘‘600 series.’’ 

(ii) Reasons for control for the ‘‘600 

series.’’ 

(iii) Addition of ‘‘600 series’’ items 

classified under .y to Supplement No. 2 

to part 744. 

(iv) Items formerly on the USML 

classified under the ‘‘600 series.’’ 

(v) Sample ‘‘600 series’’ entry 

demonstrating how ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ would be described. 

(vi) Current xY018 ECCNs that will be 

moved to the ‘‘600 series’’ ECCNs (while 

xY018 entries will continue for crossreference purposes). 

(vii) Conforming changes for other 

Wassenaar Arrangement Munitions List 

items on the CCL. 

(B) Addition of license review policy 

for ‘‘600 series’’ items for National 

Security (NS) and Regional Stability 

(RS) reasons. 

(C) License Exceptions for ‘‘600 

series’’ items. 

(i) Addition of general restrictions. 

(ii) Revision to existing license 

exceptions to address ‘‘600 series.’’ 

(iii) License Exception STA eligibility 

requests for ‘‘600 series’’ end items. 

(a) Proposed new paragraph (g) to 

§ 740.20 (License Exception Strategic 

Trade Authorization (STA)) explains the 

process through which license 

applicants could request License 

Exception STA eligibility for ‘‘600 

series’’ ‘‘end items’’ (as opposed to 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’). 

(b) In § 748.8 (Unique application and 

submission requirements), this notice 

proposes adding paragraph (w) (License 

Exception STA eligibility for ‘‘600 

series’’ end item requests) to alert 

license applicants that end items 

described in § 740.20(g) require unique 

application and submission 

requirements. 

(c) Web site publication of approved 

License Exception STA eligibility 

request determinations under 

§ 740.20(g). 

(d) Supplement No. 4 to Part 774— 

Listing of License Exception STA 

Eligibility Determinations Pursuant to 

§ 740.20(g) for ‘‘600 Series’’ ‘‘End Items’’ 

Eligible for License Exception STA 

under § 740.20(c)(1). 

(iv) Other conforming changes to the 

EAR to address the proposed changes in 

license exceptions for ‘‘600 series’’ 

items. 

(a) In § 732.4 (Steps regarding using 

License Exceptions), this proposed rule 

would revise Step 22 (Terms and 

Conditions of the License Exceptions) to 

add a cross reference to the 

Conventional Arms Reporting 

requirement in § 743.4 to alert exporters 

that, if they are exporting under License 

Exceptions LVS, TMP, RPL, STA, or 

GOV and their item is classified in the 

‘‘600 series,’’ they should review § 743.4 

of the EAR to determine the 

applicability of certain reporting 

requirements for conventional arms 

exports. 

(b) Expansion of EAR’s ‘‘Know Your 

Customer’’ Guidance and Red Flags to 

provide compliance guidance for 

License Exception STA and the ‘‘600 

series.’’ 

(c) Addition of new EAR reporting 

requirements to support U.S. 

Government multilateral commitments 

for reporting of Wassenaar Arrangement 

Munitions List and formerly USML item 

exports to certain destinations. 

(d) In § 762.2 (Records to be retained), 

to conform with the new recordkeeping 

requirements that would be added to the 

EAR under § 743.4 for Conventional 


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Arms Reporting and § 740.20(g), License 

Exception STA eligibility requests for 

‘‘600 series’’ end items, this rule would 

add two new paragraphs to § 762.2 

under (b)(47) and (b)(48) to indicate 

these are additional records that would 

need to be maintained. 

(v) De minimis and ‘‘600 series’’ 

items. 

(vi) Other conforming changes to the 

EAR to address the addition of the ‘‘600 

series.’’ 

(a) In § 738.2 (Commerce Control List 

(CCL) structure) under paragraph (d)(1), 

this proposed rule would add a 

reference to the ‘‘600 series’’ to indicate 

that items in which the third character 

is a ‘‘6’’ are ‘‘600 series’’ items and 

controlled because they are items 

formerly on the USML or controlled by 

the WAML. 

(b) Clarification of items of export. 

(c) Revisions to Interpretation 8: 

Ground Vehicles. 

(2) Creation of ECCN 0Y521 as an 

Equivalent to USML Category XXI 

(i) Purpose of ECCN 0Y521. 

(ii) Sample 0Y521 entry text. 

(iii) License requirements and related 

policies for ECCNs 0Y521. 

(iv) Publication of ECCN 0Y521 

classifications. 

(3) Changes to EAR Definitions To 

Address the Movement of Items From 

the USML to the CCL, Including 

Adopting a Single Definition of 

‘‘Specially Designed’’ 

(i) Creation of New Definition of 

‘‘Specially Designed’’ To Apply to (i) 

600 Series ECCNs, (ii) Existing ECCNs 

Using Term, and (iii) Revised USML 

Categories Using Term. 

(a) Purpose of adopting a single 

definition of ‘‘specially designed.’’ 

(b) ‘‘Specially designed’’ will play an 

important role in the ‘‘600 series.’’ 

(c) Clarifying the meaning of the term 

‘‘specially designed’’ will improve the 

clarity of the control lists. 

(d) Goals and limitations of effort to 

define ‘‘specially designed.’’ 

(e) Proposed definition of ‘‘specially 

designed.’’ 

(ii) Addition of ten definitions and 

revision to two existing definitions. 

(4) Other Changes to Assist in the 

Structural Alignment of the USML and 

the CCL 

(i) Revisions to CCL product group 

headings for product groups A and C. 

(ii) Change of definition of materials 

(also described under (3)(ii) above). 

Proposed Changes 

This notice proposes making the 

following changes to enable control of 

items that move from the USML to the 

CCL: 

(1) ‘‘600 series’’ 

(A) Addition of the ‘‘600 Series’’ on the 

CCL 

In Supplement No. 1 to part 774 (the 

Commerce Control List), this rule 

proposes to add a new ‘‘xY6zz’’ control 

series to the CCL to control most items 

formerly on the USML moved to the 

CCL and to consolidate the thirteen 

existing WAML entries (i.e., those 

entries currently under ‘‘xY018’’) to this 

new ‘‘600 series.’’ This new control 

series would be added to each of the 10 

CCL categories and would fall after the 

‘‘300 series’’ and before the ‘‘900 series’’ 

on the CCL. 

(i) Structure of the new ‘‘600 Series’’ 

Commerce would establish a new 

ECCN series within each CCL category 

that would be identified by a ‘‘6’’ at the 

third ECCN character (‘‘xY6zz’’) (the 

‘‘600 series’’). This proposal would 

effectively create a ‘‘Commerce 

Munitions List,’’ comprising distinct 

ECCNs, that allows for identification, 

classification, and control of items 

transferred from the USML that, based 

on their technical or other 

characteristics, are not classified under 

an existing ECCN that is subject to 

controls for any reason other than AntiTerrorism (AT) reasons. This would 

allow for a straightforward application 

of a licensing policy for items that move 

to the CCL from the USML. It would 

also be a necessary intermediate step to 

eventually creating a single dual-use 

and munitions control list, which was 

identified by the President as a goal 

during a taped presentation made on 

August 31, 2010 to the BIS Update 

Conference 2010. Commerce Secretary 

Locke and other senior members of BIS 

also spoke at the same BIS Update 

Conference, along with other senior 

members of the Departments of State 

and Defense, regarding the importance 

of achieving the goal of creating a single 

dual-use and munitions control list and 

the intermediate steps that would need 

to be taken to accomplish this goal of 

the Export Control Reform (ECR) 

initiative. The new ‘‘600 series’’ would 

be an extension of the existing 000, 100, 

200, and 300 series hierarchy in the CCL 

for items controlled by the various 

multilateral export control regimes, 

such as the Australia Group (AG), as 

outlined in § 738.2. 

BIS would retain the existing CCL 

Category (‘‘x’’) (i.e., 0 through 9) 

structure and the existing Group (‘‘Y’’) 

(i.e., A, B, C, D, and E) structure for the 

types of items that move to the CCL. If 

the type of item to be moved does not 

fit within the scope of any existing CCL 

Category’s title or scope, then that type 

of item would be classified under a new 

ECCN in CCL Category 0. The fourth 

and fifth ECCN characters (‘‘zz’’) of each 

new ‘‘600 series’’ ECCN would track the 

WAML categories for the types of items 

at issue. WAML ML21 (‘‘software’’) and 

ML22 (‘‘technology’’) would, however, 

be rolled in to the existing D 

(‘‘software’’) and E (‘‘technology’’) CCL 

Category Groups. 

The WAML numbering structure for 

the last two characters would be used 

rather than the USML numbering 

structure because the majority of items 

to be transferred would be subject to the 

WAML, although the ‘‘600 series’’ 

would not be limited to items on the 

WAML. Thus, the numbering scheme 

would be consistent with such controls. 

It would also clearly demonstrate that 

the U.S. continues to control all WAML 

items. In addition, multinational 

companies that must deal with both the 

USML system and the numbering 

system of most other allied countries 

(which tracks the WAML) would find 

compliance and tracking of controlled 

items somewhat easier. 

(ii) Reasons for Control for the ‘‘600 

Series’’ 

This rule proposes that items in the 

‘‘600 series’’ ECCNs would generally be 

controlled for National Security Column 

1 (‘‘NS1’’) reasons, which means that a 

license would be required to export or 

reexport them to all countries except 

Canada (excluding items also controlled 

for Missile Technology (MT), 

Proliferation of Chemical and Biological 

Weapons Column 1 (CB1), and Firearms 

Convention (FC) reasons) unless a 

license exception were available. MT-, 

CB1-, and FC-controlled end items that 

would move from the USML would 

continue to be controlled for, 

respectively, MT, CB, and FC reasons 

like all other MT-, CB1-, and FCcontrolled items on the CCL. 

Multilateral regime-controlled items 

moved from the USML to the CCL 

would retain their regime control 

parameters and reasons for control, even 

if added to an existing ECCN or added 

to a new ‘‘600 series’’ ECCN. Items in 

the ‘‘600 series’’ would generally also be 

controlled for Regional Stability Column 

1, Anti-Terrorism Column 1, and United 

Nations Embargo reasons for control. 

Items that were on the CCL prior to 

the creation of the ‘‘600 series’’ and that 

move into the ‘‘600 series’’ after 

implementation of this rule will retain 

the reasons for control to which those 

items were subject prior to the creation 

of the ‘‘600 series.’’ For example, if an 


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item currently classified under an ECCN 

not in the ‘‘600 series’’ were controlled 

for NS2 or RS2 reasons, such controls 

would continue to apply after 

movement of that item to a ‘‘600 series’’ 

ECCN and NS1 or RS1 controls would 

not apply. 

(iii) Addition of ‘‘600 series’’ items 

classified under .y to Supplement No. 2 

to part 744. In Supplement No. 2 to part 

744 (List of Items Subject to the Military 

End-Use License Requirement of 

§ 744.21), this rule would add a new 

paragraph (10) to add items classified 

under paragraph .y of a ‘‘600 series’’ 

entry (e.g., 0A606.y) to the scope of 

items subject to the military end-use 

license requirement of § 744.21 

(Restrictions on certain military enduses in the People’s Republic of China 

(PRC)). In addition, to conform to the 

proposed addition of paragraph (10), 

this rule would revise the introductory 

text of Supplement No. 2 to highlight 

the need to reference paragraph (10) for 

‘‘600 series’’ items. 

(iv) Items Captured Under the ‘‘600 

Series’’ 

Each of the new ‘‘600 series’’ entries 

would capture WAML and formerly 

USML end items that are not identified 

in either (i) the revised USML or (ii) 

another existing ECCN controlled for 

more than AT-only reasons. 

Generic ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories’’ and ‘‘attachments’’ moved 

from the USML would be controlled 

using a similar structure in each of the 

‘‘600 series’’ ECCNs that would be 

added to the CCL. Former USML 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’ that are not: (i) 

identified in the revised, positive 

USML; (ii) specifically identified in a 

new 600 series entry; or (iii) described 

in another ECCN controlled for more 

than AT-only reasons would be 

controlled at the end of each new 

corresponding 600 series ECCN as 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’ ‘specially designed’ 

for (i) items controlled elsewhere in 

[that ECCN] or (ii) defense articles 

controlled in [the corresponding USML 

category].’’ 

(v) Sample ‘‘600 Series’’ Entry for how 

‘‘Parts,’’ ‘‘Components,’’ ‘‘Accessories 

and Attachments’’ Would be Described 

The sample ‘‘600 series’’ ECCNs 

0A606 and 0B606, included in this 

proposed rule, demonstrate how these 

types of parts, components, accessories, 

and attachments would be described. 

These items were compiled by the 

Department of Defense, working with 

the Departments of State and 

Commerce, and are based on a review 

solely of Category VII (Tanks and 

Military Vehicles) of the U.S. Munitions 

List. 

‘‘Items’’ paragraphs 0A606.a through 

w. would cover the following specific 

types of items (*(e) through (w) would 

be reserved for future use in the ‘‘600 

series’’ entry set out in the proposed 

amendments in this proposed rule. 

Subparagraph ‘‘x’’ for the new ECCNs 

0A606 and 0B606 is set out in the 

proposed amendments in this proposed 

rule. 

Subparagraph ‘‘y’’ for the new ECCN 

0A606 would cover specific types of 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’ that, even if 

‘‘specially designed’’ for a defense 

article or ‘‘600 series’’ end item warrant 

no more than AT-only controls. Such 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’ would be indicated in 

new ECCN 0A606 as set out in the 

proposed amendments in this proposed 

rule. 

The list of 0A606.y items will be 

identified in an AECA section 38(f) 

notification, along with the other ‘‘600 

series’’ entries included in this 

proposed rule. Although this proposed 

rule is focused on creating new controls 

under the EAR for addressing the 

movement of items from the USML to 

the CCL, providing sample entries 

reflecting what items have already been 

identified as likely candidates to be 

moved from the USML to the CCL is 

intended to better inform the public. 

Lastly, other positively identified 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’ that are directly 

related to end items listed in the end 

items section above would be listed next 

to the end item to which are they most 

directly related. 

(vi) Current xY018 ECCNs Will be 

Moved in to the ‘‘600 Series’’ ECCNs 

This rule proposes that all xY018 

items be moved to the appropriate ‘‘600 

series’’ ECCNs so that all Wassenaar 

Arrangement Munitions List and 

formerly USML items would be together 

in one series, which would create a de 

facto Commerce Munitions List inside 

the larger CCL, consistent with the 

overall structure of the CCL. This 

approach would enhance the ability of 

exporters to find relevant ECCNs and 

make it easier for the U.S. Government 

to apply a consistent licensing policy for 

former USML items. Thus, for example, 

the items in the ECCN 9A018.b (military 

vehicles and related parts that are now 

controlled in the ‘‘aerospace and 

propulsion’’ CCL category) would be 

moved to ECCN 0A606 where all other 

military vehicles and related parts 

would be controlled. 

The old ‘‘xY018’’ entries would 

remain in the CCL for a time, but solely 

for cross-reference purposes. This rule 

proposes adding cross references in the 

‘‘related controls’’ paragraph in the List 

of Items Controlled section of each 

‘‘xY018’’ entry. These related control 

notes would refer to the new 

classification in the ‘‘600 series.’’ With 

respect to the new 0A606 entry being 

proposed, this notice proposes moving 

0A018.a to 0A606.a and 9A018.b to 

0A606.b.4. 

(vii) Conforming Changes for xY018 

Items on the CCL 

The xY018 entries are also referred to 

in other provisions of the EAR, such as 

in the definition of ‘‘military end use’’ 

in § 744.21(f) of the EAR. There would 

be a transitional period, after the ‘‘600 

series’’ entries are added to the CCL, in 

which certain xY018 entries would 

remain in the EAR while others would 

already have been consolidated into the 

respective ‘‘600 series’’ ECCNs. Because 

of this transitional status, the EAR 

provisions that refer to xY018 entries 

also would need to be revised to 

reference the ‘‘600 series.’’ Specifically, 

this rule proposes adding references to 

the ‘‘600 series’’ in the following five 

sections of the EAR that refer to xY018 

entries: (i) § 742.6 (Regional stability) 

under paragraph (a)(4)(i); (ii) § 744.17 

(Restrictions on certain exports and 

reexports of general purpose 

microprocessors for ‘military end-uses’ 

and to ‘military end–users’) under 

paragraph (d); (iii) § 744.21 (Restrictions 

on certain military end-uses in the 

People’s Republic of China (PRC)) under 

paragraph (f); (iv) § 746.3 (Iraq) under 

paragraph (b)(2); and (v) § 772.1 

(Definitions of terms and used in the 

Export Administration Regulations 

(EAR)) for the definition of ‘‘military 

commodity.’’ 

(B) Addition of License Review Policy 

for ‘‘600 Series’’ Items Controlled for 

National Security Reasons 

This rule proposes in § 742.4 

(National security) to revise paragraph 

(b)(1) by redesignating the existing text 

as paragraph (b)(1)(i) and adding 

paragraph (b)(1)(ii) to supplement the 

licensing policy in paragraph (b)(1)(i). 

Specifically, this new licensing policy 

in (b)(1)(ii) would state that in addition 

to the policy set forth in paragraph 

(b)(1)(i) of this section, items classified 

under the ‘‘600 series’’ would be subject 

to a general policy of denial when 

destined to a country subject to a United 

States arms embargo. BIS would publish 

the list of countries subject to a U.S. 

arms embargo in proposed 

§ 740.2(a)(12), drawing from 22 CFR 


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126.1 and successive State Department 

Federal Register notices regarding arms 

embargoed destinations, which are 

compiled at http:// 

www.pmddtc.state.gov/ 

embargoed_countries/index.html. When 

this proposed rule is published as a 

final rule, paragraph (a)(12) would 

reflect the then-current list of arms 

embargoed destinations, and as the 

Department of State publishes 

amendments to § 126.1 and other arms 

embargo-related Federal Register 

notices, BIS would make corresponding 

changes to § 740.2(a)(12). For a 

determinative understanding at any 

given time of which countries are 

subject to a general policy of denial for 

U.S. arms embargo reasons, however, 

§ 740.2(a)(12) would direct exporters, 

reexporters and transferors to review 

relevant the Department of State Federal 

Register notices, compiled at the Web 

site listed above. 

This new license review policy would 

ensure that the U.S. Government can 

comply with its multilateral 

commitments to the United Nations 

(U.N.) by preventing ‘‘600 series’’ items 

from being exported to destinations 

subject to U.N. Security Council arms 

embargoes. In addition, this new license 

review policy would ensure that any 

country subject to a unilateral U.S. arms 

embargo would also be prevented from 

receiving ‘‘600 series’’ items. 

(C) License Exceptions for ‘‘600 Series’’ 

Items 

(i) Addition of General Restrictions 

This rule proposes four changes to 

part 740 (License Exceptions) to address 

the movement of items from the USML 

to the CCL. Specifically, this rule 

proposes changes to §§ 740.2, 740.10, 

740.11 and 740.20. 

In § 740.2 (Restrictions on all License 

Exceptions), this rule proposes adding 

three new paragraphs, (a)(12), (a)(13) 

and (a)(14), to restrict the availability of 

license exceptions for ‘‘600 series’’ 

items for countries subject to a United 

States arms embargo. The restrictions on 

the use of license exceptions under 

paragraph (a)(12) are specific to 

countries subject to a United States arms 

embargo; the restrictions under 

paragraph (a)(13) are tied to the type of 

‘‘600 series’’ item; and the restrictions 

under (a)(14) are specific to items 

designated as ECCN 0Y521, discussed 

below. In proposed paragraph (a)(12), 

the list of countries subject to a United 

States arms embargo would be listed for 

cross reference elsewhere in the EAR. 

To the extent items subject to the 

Missile Technology Control Regime 

(MTCR) are moved from the USML to 

the CCL, the same limitations and 

prohibitions on the use of license 

exceptions in connection with the 

export or reexport of MT-controlled 

items would apply to such items. This 

rule proposes no changes to the general 

restriction in paragraph (a)(5) on the use 

of license exceptions for items 

controlled for MT reasons, which means 

that no MT-controlled ‘‘600 series’’ 

ECCNs would be eligible for license 

exceptions under the EAR. 

Under new paragraph (a)(12), this rule 

would make ‘‘600 series’’ items that 

were destined to a country subject to a 

United States arms embargo ineligible 

for license exceptions, unless 

authorized by License Exception GOV 

under § 740.11(b)(2)(ii). In paragraph 

(a)(12), the list of countries subject to 

such an embargo would be set forth. 

Currently, they are: Afghanistan, 

Belarus, Burma, China, Cuba, Cote 

d’Ivoire, Cyprus, Democratic Republic 

of Congo, Eritrea, Haiti, Iraq, Iran, 

Lebanon, Liberia, Libya, North Korea, 

Sierra Leone, Somalia, Sri Lanka, 

Sudan, Syria, Venezuela, Vietnam, 

Yemen, and Zimbabwe. This proposed 

paragraph (a)(12) would also include a 

note, as described above, directing 

exporter, reexporters and transferors to 

consult the Department of State Web 

site for the controlling list of countries 

subject to U.S. arms embargoes. 

Under new paragraph (a)(13), this rule 

would also restrict the availability of 

license exceptions for ‘‘600 series’’ 

items to all countries other than those 

listed in new paragraph (a)(12). These 

restrictions would be added under three 

new paragraphs (a)(13)(i), (ii) and (iii). 

Paragraph (a)(13)(i) would be specific 

to end items classified in ‘‘xA6zz’’ 

entries. This paragraph would exclude 

the use of license exceptions, except for 

License Exceptions LVS (§ 740.3); TMP 

(§ 740.9); RPL (§ 740.10); or GOV (under 

§ 740.11(b)(2)(ii) or (b)(2)(iii)). License 

Exception GOV under (b)(2)(iii) would 

only be eligible for the governments 

identified in (b)(3)(iii), i.e., one of the 

STA–36 countries, which are: 

Argentina, Australia, Austria, Belgium, 

Bulgaria, Canada, Croatia, the 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. License Exception STA under 

§ 740.20(c)(1) would be available, 

provided License Exception STA had 

been identified by BIS in writing as an 

eligible license exception for the 

particular end item classified in an 

‘‘xA6zz’’ ECCN in response to a License 

Exception STA eligibility request in 

accordance with proposed § 740.20(g) of 

the EAR and the end item is destined, 

at the time of export, reexport or transfer 

(in-country) for ultimate end use by the 

armed forces, police, paramilitary, law 

enforcement, customs and border 

protection, correctional, fire, and search 

and rescue agencies of a government in 

one of the STA–36 countries. The 

condition that the end item be destined, 

at the time of export, reexport or transfer 

(in-country) for ultimate end use by 

such agencies of a government of one of 

the STA–36 countries means that 

exports and reexports to nongovernmental end users under STA in 

STA–36 countries would be permissible 

so long as the item at issue would 

ultimately be provided to a STA–36 

government for end use by such a 

government. This eligibility under 

License Exception STA is proposed 

because the U.S. Government recognizes 

that there would be a significant volume 

of trade between and among private 

companies in the STA countries 

regarding ‘‘600 series’’ end items that 

would ultimately be for use by such 

agencies in governments in one of the 

STA–36 countries. Provided these end 

items would be exported, reexported or 

transferred (in-country) in accordance 

with the terms of License Exception 

STA, U.S. export control interests 

would be protected while at the same 

time transactions for the governments of 

STA–36 countries would be facilitated. 

BIS particularly welcomes comments on 

the types of government agencies that 

would be eligible to ultimately receive 

items through this license exception. If 

there are types of agencies that have 

been omitted from this list but should 

be included, commenters should 

provide BIS with this information, 

including specific examples of such 

agencies. 

Paragraph (a)(13)(ii) would be specific 

to ‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments,’’ in addition to any 

item classified in a ‘‘xB6zz’’ or ‘‘xC6zz’’ 

entry. This paragraph would exclude 

the use of license exceptions, except for 

License Exceptions LVS (§ 740.3); TMP 

(§ 740.9); RPL (§ 740.10); and GOV 

(under § 740.11(b)(2)(ii) or (b)(2)(iii)). 

License Exception GOV under (b)(2)(iii), 

which applies to items for official use 

within national territory by agencies of 

cooperating governments, would only 

be available for governments identified 

in (b)(3)(iii). License Exception STA 

(§ 740.20(c)(1)) would be available and 

would not need to be authorized 

through the § 740.20(g) process that is 

required for ‘‘600 series’’ end items 


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identified in (a)(13)(i), provided the 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments,’’ or any item classified 

in a ‘‘XB6zz’’ or ‘‘XC6zz’’ entry are 

destined, at the time of export, reexport 

or transfer (in-country) for ultimate end 

use by the armed forces, police, 

paramilitary, law enforcement, customs 

and border protection, correctional, fire, 

and search and rescue agencies of a 

government in one of the countries 

listed in § 740.20(c)(1). The condition 

that the end item be destined, at the 

time of export, reexport or transfer (incountry) for ultimate end use by such 

agencies of a government of one of the 

License Exception STA–36 countries 

would mean that exports and reexports 

under STA to non-governmental end 

users in one of the STA–36 countries 

would be permissible so long as the 

item at issue would ultimately be 

provided to a government of one of the 

STA countries for end use by such 

agencies of a government. 

Paragraph (a)(13)(iii) would be 

specific to ‘‘software’’ and ‘‘technology’’ 

classified in a ‘‘xD6zz’’ or ‘‘xE6zz’’ 

entry. This paragraph would exclude 

the use of license exceptions, except for 

License Exception GOV 

(§ 740.11(b)(2)(ii) or (b)(2)(iii)). License 

Exception GOV under (b)(2)(iii) would 

only be eligible for those governments 

identified in (b)(3)(iii)). License 

Exception TSU (§ 740.13(a) and (b)) 

would also be available. License 

Exception STA (§ 740.20(c)(1)) would be 

available, provided the ‘‘software’’ or 

‘‘technology’’ is destined, at the time of 

export, reexport or transfer (in-country) 

for ultimate end use by the armed 

forces, police, paramilitary, law 

enforcement, customs and border 

protection, correctional, fire, and search 

and rescue agencies of a government in 

one of the STA countries listed in 

§ 740.20(c)(1). The condition that the 

end item be destined, at the time of 

export, reexport or transfer (in-country) 

for ultimate end use by such agencies of 

a government of one of these STA–36 

countries means that exports and 

reexports to non-governmental end 

users under STA in one of the STA–36 

countries would be permissible so long 

as the item at issue would ultimately be 

provided to such agencies of a 

government of one of the STA–36 

countries for end use by such a 

government. 

Under new paragraph (a)(14), this rule 

would restrict using license exceptions 

for items classified under ECCN 0Y521, 

described below, unless authorized by 

License Exception GOV under 

§ 740.11(b)(2)(ii). 

(ii) Revision to existing license 

exceptions to address ‘‘600 series.’’ 

In § 740.10 (Servicing and 

replacement of parts and equipment 

(RPL)), this rule proposes revising 

License Exception RPL to add ‘‘600 

series’’ ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ to the 

scope of this authorization. This rule 

also proposes imposing special 

restrictions on the use of License 

Exception RPL for the export or reexport 

of ‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’ classified in ‘‘600 

series’’ ECCNs. The proposed changes to 

License Exception RPL would also 

indicate that this license exception 

authorizes exports and reexports of 

certain items ‘‘subject to the EAR’’ to or 

for a defense article described in an 

export or reexport authorization issued 

under the authority of the AECA. The 

proposed revisions to License Exception 

RPL would also indicate that the 

authorization does not, however, 

authorize the export or reexport of 

‘‘parts,’’ ‘‘components,’’ accessories,’’ or 

‘‘attachments’’ that are ‘‘defense 

articles’’ identified on the USML (22 

CFR 120.6 and 121.1). 

In § 740.11 (Governments, 

international organizations, 

international inspections under the 

Chemical Weapons Convention, and the 

International Space Station (GOV)), this 

rule proposes revising License 

Exception GOV to add a new paragraph 

(b)(3)(iii) to identify which countries 

would be eligible to receive ‘‘600 series’’ 

items. This list of countries would be 

identical to those listed in License 

Exception STA under paragraph 

740.20(c)(1). This rule proposes adding 

the STA–36 countries to (b)(3)(iii) as 

eligible to receive ‘‘600 series’’ items. 

(iii) License Exception STA eligibility 

request for ‘‘600 series’’ ‘‘end items.’’ 

(a) In § 740.20 (License Exception 

Strategic Trade Authorization (STA)), 

this rule proposes adding a new 

paragraph (g) to create a new 

interagency process through which 

license applicants could request License 

Exception STA eligibility for ‘‘600 

series’’ ‘‘end items’’ (as opposed to 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories,’’ 

or ‘‘attachments’’) classified in an ECCN 

‘‘xA6zz’’ entry at the same time that 

they submit license applications 

covering such items. This new 

interagency review process would be a 

key component of the new control 

structure that is included in this 

proposed rule for addressing the 

movement of items from the USML to 

the CCL and ensuring that the 

governments of the STA–36 destinations 

would have access to these ‘‘600 series’’ 

‘‘end items’’ once an interagency review 

and determination is made that such 

‘‘end items’’ should be exportable under 

License Exception STA. 

Proposed new paragraph (g)(1) would 

clarify when to submit a request for a 

License Exception STA eligibility 

requests for ‘‘600 series’’ end items. 

Exporters, reexporters, and transferors 

would request that specific ‘‘end items’’ 

classified in an ECCN ‘‘xA6zz’’ entry be 

identified as eligible for License 

Exception STA. Requests under 

paragraph (g) could only be submitted to 

BIS as part of a license application 

submitted for an export, reexport, or 

transfer (in-country) for an ‘‘end item’’ 

classified in an ECCN(s) ‘‘xA6zz’’ entry. 

Paragraph (g)(1) would specify that 

requests may not be submitted under 

paragraph (g) for items controlled for 

MT reasons, as such items would not be 

eligible for this procedure. Proposed 

paragraph (g)(2) would specify what 

information is required to be included 

in License Exception STA eligibility 

requests. 

Proposed paragraph (g)(3) would 

provide the timeline for U.S. 

Government review of License 

Exception STA eligibility requests. At 

this time, BIS anticipates that license 

applications for ‘‘600 series’’ items and 

License Exception STA eligibility 

requests would be reviewed in 

accordance with the timelines set forth 

in Executive Order 12981 and § 750.4. 

With respect to license applications, the 

U.S. Government intends that after 

items move from the USML to the CCL, 

processing times for ‘‘600 series’’ items 

generally would not increase as 

compared to when such items were on 

the ITAR. Pursuant to EO 12981, license 

decisions under the EAR must be made 

within 39 calendar days, although the 

average processing time for BIS in 2011 

has been 31 calendar days. For licenses 

processed by the Department of State, 

the average processing time has been 

generally around 17 calendar days. BIS 

welcomes public comments on an 

appropriate processing time for license 

applications involving these ‘‘600 

series’’ items, in light of these 

timeframes. If commenters recommend 

a shorter review period, it would be 

useful if they also specify what 

processing times would be appropriate 

and identify any unique aspects of the 

‘‘600 series’’ that may necessitate a need 

for a shorter review period, as well as 

the historical timeframes of the 

Department of State’s processing of 

license applications involving such 

items. With respect to the timeframe for 

U.S. Government reviews of License 

Exception STA eligibility requests 

pursuant to § 740.20(g), BIS also 

welcomes public comments, 

particularly in light of the connection 


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between license applications involving 

‘‘600 series’’ items and License 

Exception STA requests. 

Proposed paragraph (g)(4) would 

describe the process for interagency 

review of License Exception STA 

eligibility requests, stating that 

interagency consensus would be 

required in the disposition of License 

Exception STA eligibility requests and 

identifying the criteria that the U.S. 

Government would use to review STA 

requests and make such determinations. 

Specifically, the Departments of 

Commerce, Defense and State would 

assess whether an item will provide a 

critical military or intelligence 

advantage to the United States or is 

otherwise available in countries that are 

not regime partners or close allies. If the 

item does not provide a critical military 

or intelligence advantage to the United 

States or is otherwise available in 

countries that are not regime partners or 

close allies, the Departments will 

determine that License Exception STA 

is available unless an overarching 

foreign policy rationale for restricting 

STA availability can be articulated. 

Such determinations would be made by 

the departments’ representatives to the 

Advisory Committee on Export Policy 

(ACEP), or their designees. As 

consensus between the agencies is 

required for License Exception STA 

eligibility and such decisions are foreign 

policy determinations, this rule 

proposes in a new § 756.1(a)(4) that 

such decisions would be final agency 

action on License Exception STA 

eligibility requests and may not be 

appealed to the Under Secretary for 

Industry and Security under part 756 

(Appeals). 

Proposed paragraph (g)(5) would 

provide information on the disposition 

of License Exception STA eligibility 

requests under paragraph (g)(5)(i) for 

approvals and under (g)(5)(ii) for 

denials. 

Paragraph (g)(5)(i) would indicate that 

if the request were approved, the 

applicant would receive written 

notification from BIS authorizing the 

use of License Exception STA for the 

specific ECCN(s) included in the 

License Exception STA eligibility 

request. At this point, anyone 

complying with the requirements of 

License Exception STA would be able to 

use the license exception for the 

approved end item. After issuing 

written notification to the application, 

BIS would post a redacted version of the 

BIS written response on the BIS Web 

site (typically within 30 calendar days 

from the date on which BIS sent the 

response to the applicant) informing the 

public of the additional License 

Exception STA eligibility for that ECCN. 

Within approximately three months 

after sending such a written response to 

the applicant (i.e., the date on the BIS 

response sent to the applicant), BIS 

would publish a final rule adding the 

License Exception STA eligibility to the 

EAR for that ECCN in the next quarterly 

update to Supplement No. 4 (i.e., in 

January, April, July, or October). 

Paragraph (g)(5)(ii) would indicate 

that if the STA eligibility request were 

denied, the application would continue 

to be reviewed under the normal license 

review process described in part 750 

under § 750.4(d)(2). The license 

application would be reviewed in 

accordance with the license review 

policies in part 742 (and parts 744 and/ 

or 746, if applicable) of the EAR. 

Interagency review of license 

applications would be conducted 

without regard to the disposition of an 

STA eligibility request. Applicants 

whose requests to make a particular 

‘‘600 series’’ end item eligible for STA 

are denied would not be precluded from 

resubmitting such a request in 

connection with a future export of the 

end item. 

To confirm compliance with these 

provisions of License Exception STA, 

paragraph (g)(5)(iii) would be added to 

require that a copy of the BIS written 

response to the approved License 

Exception STA eligibility request be 

kept in accordance with the 

recordkeeping requirements in part 762 

of the EAR in case any questions arise 

regarding whether that ECCN ‘‘xA6zz’’ 

end item was eligible to be exported, 

reexported or transferred (in-country) 

under License Exception STA. 

Also in License Exception STA, but 

under paragraph (c)(1), this proposed 

rule would add a new Note to paragraph 

(c)(1) to indicate that ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ are automatically eligible 

for License Exception STA under 

paragraph (c)(1), provided the export, 

reexport or transfer (in-country) meets 

the terms of the Note, which would 

conform with the general restriction on 

the use of license exceptions in 

§ 740.2(a)(13)(ii) for ‘‘600 series’’ 

‘‘parts,’’ ‘‘components,’’ and 

‘‘accessories and attachments.’’ 

The note is set out in the proposed 

amendments in this proposed rule. 

(b) In § 748.8 (Unique application and 

submission requirements), this rule 

proposes adding paragraph (w) (License 

Exception STA eligibility for ‘‘600 

series’’ end items requests) to alert 

license applicants that end items 

described in § 740.20(g) require unique 

application and submission 

requirements. In Supplement No. 2 to 

part 748 (Unique Application and 

Submission Requirements), this notice 

proposes adding a corresponding 

paragraph (w) to identify the unique 

application and submission 

requirements for License Exception STA 

for ‘‘600 series’’ end items requests 

submitted under § 740.20(g). 

Paragraph (w) in Supplement No. 2 to 

part 748 would indicate that in order to 

request a License Exception STA 

eligibility request pursuant to 

§ 740.20(g), you must specify ‘‘License 

Exception STA eligibility requests 

pursuant to 740.20(g)’’ in Block 9 

(Special Purpose) and mark ‘‘export’’ or 

‘‘reexport’’ as applicable in Block 5 

(Type of Application) BIS–748P 

‘‘Multipurpose Application’’ form. If the 

application is for an ‘‘in-country 

(transfer),’’ the applicant would follow 

the instructions in Supplement No. 2 to 

part 748 under paragraph (v) to mark in 

Block 9 (Special Purpose) for in-country 

transfer and STA eligibility request 

under 740.20(g), along with marking 

‘‘reexport’’ in Block 5. 

Applicants would need to provide 

sufficient information for the U.S. 

Government to make such a 

determination. This would require the 

applicant to submit more than merely a 

description of the ‘‘600 series’’ end item. 

In particular, the applicant would need 

to provide supporting information for 

why it believes that the item does not, 

for example, provide a critical military 

or intelligence advantage to the United 

States and/or is otherwise available in 

countries that are not regime partners or 

close allies. The applicant would also 

need to provide information regarding 

whether and, if so, how the item is 

controlled by the export control laws 

and regulations of close allies and 

regime partners, if known. The 

applicant would further be advised that 

it may submit additional information 

that it believes is relevant to the U.S. 

Government in reviewing the License 

Exception STA eligibility request either 

under Block 24 (Additional Information) 

or as a separate support document 

attachment to the license application. 

(c) Web site publication of approved 

License Exception STA eligibility 

request determinations under 

§ 740.20(g). 

This rule proposes a two-step process 

for informing the public of U.S. 

Government determinations made under 

§ 740.20(g) (License Exception STA 

eligibility requests for ‘‘600 series’’ end 

items). The first part of the process 

would involve publishing these 

determinations on the BIS website. 

Specifically, BIS would create on its 

website a link to the lists of all ‘‘600 

series’’ end items that the departments 


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have agreed would be eligible for 

License Exception STA (pursuant to 

§ 740.20(g)). BIS would regularly update 

this list. The descriptions on the list 

would match (e.g., by model number or 

other equally specific descriptor) the 

descriptions of the items in the RWA 

notices for the License Exception STA 

eligibility requests. The description 

does not necessarily need to be limited 

to a particular manufacturer. 

The second part of the process for 

informing the public of the 

determinations made under § 740.20(g) 

(License Exception STA eligibility 

requests for ‘‘600 series’’ end items) 

would involve adding the 

determinations to a new supplement 

(Supplement No. 4 to part 774) that 

would be added to the CCL. BIS 

proposes updating this new supplement 

on a quarterly basis, as needed, in 

January, April, July and October of each 

calendar year. With each quarterly 

update, BIS would publish in the CCL 

the specific and general types of ‘‘600 

series’’ ‘‘end items’’ that may be 

exported under License Exception STA. 

As noted above, an STA RWA sent to 

an applicant would contain sufficient 

detail so that the exporter could have a 

clear record of the Government’s 

determination and would be able to cite 

the document as proof of the License 

Exception STA eligibility determination 

made pursuant to § 740.20(g). 

(d) Supplement No. 4 to Part 774— 

Listing of License Exception STA 

Eligibility Determinations Pursuant to 

§ 740.20(g) for ‘‘600 Series’’ ‘‘End Items’’ 

Eligible for License Exception STA 

under § 740.20(c)(1). 

This proposed supplement would 

consist of two columns informing the 

public of munitions end items that have 

been determined to be eligible for 

License Exception STA under 

§ 740.20(c)(1), pursuant to a License 

Exception STA eligibility determination 

under § 740.20(g). The two proposed 

columns on the table are set out in the 

proposed amendments in this proposed 

rule. 

(iv) Other conforming changes to the 

EAR to address the proposed changes in 

license exceptions for the ‘‘600 series.’’ 

(a) In § 732.4 (Steps regarding using 

License Exceptions), this proposed rule 

would revise Step 22 (Terms and 

Conditions of the License Exceptions) to 

add a cross reference to the 

Conventional Arms Reporting 

requirement in § 743.4 to alert exporters, 

if they are exporting under License 

Exceptions LVS, TMP, RPL, STA, or 

GOV and their item is classified in the 

‘‘600 series,’’ they should review § 743.4 

of the EAR to determine the 

applicability of certain reporting 

requirements for conventional arms 

exports. This proposed rule would also 

revise the last step in § 732.4 (i.e., Step 

26 License applications) to add a 

paragraph describing the process of 

requesting License Exception STA 

eligibility for end items classified in an 

ECCN ‘‘xA6zz’’ entry on the CCL. The 

revisions to Step 26 would also indicate 

where exporters, reexporters and 

transferors could review the list of such 

end items that have already been 

approved for License Exception STA. 

Lastly, to alert exporters, reexporters 

and transferors who wish to use License 

Exception STA in such cases in which 

License Exception STA has been 

approved, a new Note would be added 

to remind them to review paragraph (a) 

and (b) to determine the steps needed in 

using license exceptions. 

(b) Expansion of EAR’s ‘‘Know Your 

Customer’’ Guidance and Red Flags to 

provide compliance guidance for 

License Exception STA and the ‘‘600 

series.’’ 

This rule proposes adding two 

paragraphs to Supplement No. 3 to part 

732 (BIS’s Know Your Customer 

Guidance and Red Flags) to provide 

compliance guidance in the form of two 

additional red flags exporters, 

reexporters, and transferors for 

transactions that are subject to the EAR. 

One new red flag under new paragraph 

(b)(13) would refer to License Exception 

STA and the other would refer under 

proposed paragraph (b)(14) to the ‘‘600 

series.’’ 

As these two additional red flags also 

have broader applicability, they would 

benefit all persons involved in 

transactions subject to the EAR in 

evaluating whether there may be a red 

flag that would require additional due 

diligence under the EAR to resolve the 

red flag prior to proceeding with the 

transaction. The purpose of this 

proposed guidance would be to assist 

persons involved in transactions subject 

to the EAR, including those authorized 

under License Exception STA under 

§ 740.20 and/or involved in the export, 

reexport or transfer (in-country) of ‘‘600 

series’’ items to better understand their 

responsibilities under the EAR and 

develop voluntary compliance 

programs. 

(c) Addition of new EAR reporting 

requirements to support U.S. 

Government multilateral commitments 

for reporting on munitions exports from 

the U.S. to certain destinations. 

To allow the U.S. Government to 

fulfill its multilateral commitments to 

the Wassenaar Arrangement and to the 

United Nations in regards to reporting 

on the export of certain items, in part 

743 (Special reporting), this rule 

proposes adding a new § 743.4 

(Conventional arms reporting) to create 

a new semi-annual reporting 

requirement (related to the Wassenaar 

Arrangement) for items that would be 

classified in the ‘‘600 series’’ and would 

be specifically identified in new 

paragraph (c)(1) as items that require 

reporting under the Wassenaar 

Arrangement. In this same section, this 

rule also proposes adding a new annual 

reporting requirement (related to the 

United Nations) for items that would be 

classified in the ‘‘600 series’’ and would 

be specifically identified in new 

paragraph (c)(2) as items that require 

reporting under the United Nations for 

conventional arms exports. These semiannual and annual reports would be 

required for all exports of items 

identified in § 743.4 (which identifies 

certain items in the ‘‘600 series’’) except 

exports authorized by a BIS export 

license. The semi-annual and annual 

reporting requirements would not apply 

to reexports or transfers (in-country). 

Lastly, as a conforming change, this 

notice proposes revising paragraph (a) of 

§ 743.1 (Wassenaar Arrangement) to 

clarify that the reporting requirements 

in this existing section would be 

specific to items listed on the Wassenaar 

Arrangement’s Dual-Use list. This 

proposed revision would alert the 

public that for reporting requirements 

for conventional arms listed on the 

WAML that are subject to the EAR (i.e., 

‘‘600 series’’ ECCNs) to see § 743.4 of 

this part for Wassenaar Arrangement 

and UN reporting requirements. 

(d) In § 762.2 (Records to be retained), 

to conform with the new recordkeeping 

requirements that would be added to the 

EAR under § 743.4 (Conventional arms 

reporting) and § 740.20(g) (License 

Exception STA eligibility requests for 

‘‘600 series’’ end items), this rule would 

add two new paragraphs to § 762.2 

under (b)(47) and (b)(48) to indicate 

these are additional records that would 

need to be maintained. 

(v) De minimis and ‘‘600 series’’ 

items. 

This rule proposes to add special 

restrictions for de minimis applicability 

for ‘‘600 series’’ items. The de minimis 

provisions in the EAR set forth the 

extent to which foreign-made items 

incorporating U.S. origin content are 

subject to the EAR. This rule proposes 

amending § 734.4 (De minimis U.S. 

content) by adding paragraph (b)(3) and 

making a conforming change to 

paragraph (c). 

This rule proposes restricting the 

scope of de minimis for ‘‘600 series’’ 

‘‘parts,’’ ‘‘components,’’ and other items 

subject to the EAR (i.e., those classified 

under xB6zz, xC6zz, xD6zz and xE6zz 


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entries). When foreign-made items that 

incorporate such controlled U.S. origin 

‘‘600 series’’ items are to be exported 

from abroad or reexported to any 

country they are subject to the 10% de 

minimis rule for U.S. origin content 

rather than the 25% de minimis rule. 

New paragraph (b)(3) would thus limit 

de minimis eligibility for these ‘‘600 

series’’ items. Specifically, U.S.-origin 

‘‘600 series’’ items would be excluded 

from the 25% de minimis rule. The 

allowable dollar value under the 10% 

de minimis rule is not as permissive as 

the 25% de minimis rule, but even 

under the more restrictive 10% de 

minimis rule the U.S. Government 

believes this new proposed de minimis 

eligibility for items previously not 

eligible for de minimis treatment would 

advance the national security and 

industrial base objectives of the ECR 

initiative by reducing the incentive for 

foreign manufacturers to design out of 

their products U.S.-origin content. 

This rule also would change 

paragraph (c) (10% De minimis Rule) to 

conform to the revision of paragraph (b). 

(vi) Other conforming changes to the 

EAR to address the addition of the ‘‘600 

series.’’ 

(a) In § 738.2 (Commerce Control List 

(CCL) structure) under paragraph (d)(1), 

this proposed rule would add a 

reference to the ‘‘600 series’’ to indicate 

that items in which the third character 

is a ‘‘6’’ are ‘‘600 series’’ items and 

controlled because they are Wassenaar 

Arrangement Munitions List (WAML) 

and formerly USML items subject to the 

jurisdiction of the EAR. As described in 

the changes that would be made to part 

772 in this rule, this rule also would 

add a definition of ‘‘600 series’’ to 

provide additional information to the 

public regarding this proposed control 

series. To explain the meaning of the 

last two numbers in ‘‘600 series’’ 

ECCNs, this rule would add a new 

paragraph (d)(1)(iv) that would indicate 

that the last two characters of each ‘‘600 

series’’ ECCN will track the WAML 

categories for the types of items at issue. 

The Wassenaar Arrangement ML21 

(‘‘software’’) and ML22 (‘‘technology’’) 

however, would be rolled into the 

existing D (‘‘software’’) and E 

(‘‘technology’’) CCL product groups. 

(b) Clarification of items of export. 

In § 730.3 (Dual use exports) this 

proposed rule would revise the heading 

from ‘‘Dual use exports’’ to ‘‘Items of 

export.’’ This change would be made to 

the heading and text of the section to 

more accurately reflect the scope of 

items subject to export controls under 

the EAR. Similar to the existing text of 

the section, the revised text would begin 

with noting the term ‘‘dual use’’ is often 

used to describe the types of items 

subject to the EAR. The revised section 

would indicate a dual use item has 

commercial applications and also has 

military or proliferation applications, 

but the more precise way of describing 

what is subject to the EAR is: Any item 

that is not exclusively controlled for 

export or reexport by another agency of 

the U.S. Government or excluded from 

the EAR pursuant to section 734.3(b) is 

an item that is subject to the EAR. Items 

subject to the EAR include most dualuse items, most commercial items and 

certain munitions items listed on the 

WAML classified under ECCNs in the 

‘‘600 series,’’ ECCNs ending in ‘‘018’’ 

(but these ‘‘018’’ ECCNs are expected to 

be consolidated with the ‘‘600 series’’ in 

the near future as proposed in this rule) 

and ECCN 0A919). So although the term 

dual use in the past may have often 

been used informally to describe the 

scope of items subject to the EAR, this 

term does not accurately reflect the full 

scope of items that are subject to the 

EAR and should therefore no longer be 

used in describing the scope of items 

subject to the EAR without also 

referencing that the EAR also controls 

most commercial items and certain 

munitions items. The changes proposed 

for this section would make it clear the 

scope of items subject to the EAR 

extends beyond just dual use types of 

items. 

(c) Revisions to Interpretation 8: 

Ground Vehicles. 

In § 770.2 (Item Interpretations), this 

notice proposes revising ‘‘Interpretation 

8: Ground Vehicles.’’ Interpretation 8 

would be updated to reflect the revised, 

‘‘positive’’ Category VII of the USML 

and the proposed addition of five new 

ECCN entries: 0A606, 0B606, 0C606, 

0D606 and 0E606, along with the 

consolidation of 9A018.b into 

0A606.b.4. The revised, ‘‘positive’’ 

USML Category VII and these ‘‘600 

series’’ ECCNs would clarify which 

ground vehicles are subject to the ITAR 

and which are subject to the EAR. 

However, because some parts of 

Interpretation 8 still would serve a 

purpose in explaining the scope of these 

new ‘‘600 series’’ entries and the revised 

USML Category VII, the interpretation 

would be retained, but updated to 

reflect the updated control lists. 

(2) Creation of ECCN 0Y521 as an 

equivalent to USML Category XXI. 

(i) Purpose of ECCN 0Y521. As a 

mechanism for situations in which an 

item that warrants control is not 

controlled yet—e.g., as with an 

emerging technology—this rule 

proposes the addition of a new, 

miscellaneous ECCN to the CCL, similar 

to USML Category XXI (Miscellaneous 

Articles). 

This new temporary holding 

classification would be included in 

Supplement No. 1 to part 774 in ECCNs 

0A521, 0B521, 0C521, 0D521 and 0E521 

(the 0Y521 ECCNs). The 0Y521 ECCNs 

would be designed as a temporary 

‘‘holding’’ category for items not 

elsewhere classified on the CCL for 

which the U.S. Government is 

determining an appropriate control. 

(ii) Sample 0Y521 control text. Each 

of the new five 0Y521 ECCNs would 

contain similar language, as set out in 

the proposed amendments to 0A521 in 

this proposed rule. 

(iii) License requirements and related 

policies for ECCNs 0Y521. As set forth 

in § 742.6 (Regional stability) under 

proposed paragraph (a)(7), items 

classified under 0Y521 ECCNs would be 

identified by the Department of 

Commerce with the concurrence of the 

Departments of Defense and State. 

0Y521 ECCN items would be identified 

as needed, giving the U.S. Government 

the opportunity to review the sensitivity 

of each potential ECCN 0Y521 item on 

a case-by-case basis and to make a 

positive determination regarding the 

sensitivity of each item. 

ECCN 0Y521 items would be subject 

to a nearly worldwide license 

requirement (i.e., for every country 

except Canada) with a case-by-case 

license review policy. This would be 

accomplished by subjecting 0Y521 

items to an RS1 license requirement. No 

license exceptions would be available 

for items classified under these ECCNs 

other than License Exception GOV if 

within the scope of § 740.11(b)(2)(ii) 

(Items for official use by personnel and 

agencies of the U.S. Government). A 

new § 740.2(a)(14) would be added to 

reflect this. 

ECCN 0Y521 classifications would go 

into effect upon publication of a final 

rule in the Federal Register, amending 

the EAR, and would expire one year 

following the date of Federal Register 

publication. During that period, the U.S. 

Government would review the ECCN 

0Y521 item to determine whether 

classification under a different ECCN or 

EAR99 designation might be 

appropriate. ECCN 0Y521 classification 

would be removed if one of the 

following events occurs: (1) The oneyear 0Y521 classification period expires; 

or (2) the item is re-classified under a 

different ECCN or designated in writing 

by BIS as EAR99 and the ECCN 0Y521 

entry is revised to remove the item. 

Alternatively, the item’s ECCN 0Y521 

classification may be re-extended for 

one or more one-year periods, provided 

a consensus determination was made by 


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the Departments of Commerce, State 

and Defense to seek multilateral 

controls for the ECCN 0Y521 item and 

the U.S. Government submitted a 

proposal to obtain multilateral controls 

over the item. The proposed rule 

specifies that such classification may 

not be re-extended for more than two 

one-year periods, i.e., that an item 

would, at the most, be classified under 

ECCN 0Y521 for three years. 

Although described as a classification, 

the decision to identify an item as 

included in an 0Y521 ECCN would be 

a foreign policy determination, not a 

technical classification. Pursuant to 

§ 756.1(a)(1), listing of items in 

Supplement No. 5 to part 774 would be 

an action that is excluded from the part 

756 appeals process. 

Finally, this rule proposes revising 

paragraph (b)(1) licensing policy to add 

paragraph (a)(7) to the licensing policy 

in paragraph (b)(1) that applies for 

exports and reexports described in 

paragraph (a)(1), (a)(2) or (a)(6). The 

license review policy would be used to 

evaluate on a case-by-case basis to 

determine whether the export or 

reexport could contribute directly or 

indirectly to any country’s military 

capabilities in a manner that would 

destabilize a region’s military balance 

contrary to the foreign policy interests 

of the United States. 

(iv) Publication of ECCN 0Y521 

classifications. 

This rule proposes adding 

Supplement No. 5 to Part 774—Items 

Classified under ECCNs 0A521, 0B521, 

0C521, 0D521 and 0E521. This proposed 

supplement would consist of a table that 

would seek to identify the items as 

‘‘positively’’ as possible; it may include 

identifying items by model number or a 

broader descriptor that would not 

necessarily be company specific. This 

table would specifically enumerate the 

items classified as 0Y521, along with 

providing information on when such 

items were classified under the relevant 

ECCN and when they would be 

designated as EAR99, be added to 

another ECCN on the CCL, or be 

included in a new ECCN on the CCL. 

Controls on items classified as 0Y521 

would not go into effect until the ECCN 

0Y521 determinations were published 

in the Federal Register with a 

description of the 0Y521 classified 

items added to Supplement No. 5 to part 

774. BIS would publish rules revising 

Supplement No. 5 to part 774 as soon 

as possible once a new 0Y521 

classification was made. 

Column 1: Item descriptor. Note: The 

description must match by model 

number or a broader descriptor that 

does not necessarily need to be 

company specific; 

Column 2: Date of initial or 

subsequent BIS classification. 

Column 3: Date on which the item 

will be designated EAR99, unless 

reclassified in another ECCN or the 

0Y521 classification is reissued. 

(3) Changes to definitions to address 

the movement of items from the USML 

to the CCL, including adopting a single 

definition of ‘‘specially designed.’’ 

(i) Creation of New Definition of 

‘‘Specially Designed’’ To Apply to (i) 

600 Series ECCNs, (ii) Existing ECCNs 

Using Term, and (iii) Revised USML 

Categories Using Term. 

(a) Purpose of adopting a single 

definition of ‘‘specially designed.’’ 

As described in the ANPRs, a core 

element of the positive USML review 

exercise is to avoid using design-intent 

based control parameters for generic 

items. The Administration has 

nonetheless determined that it cannot 

completely eliminate ‘‘specially 

designed’’ as a control parameter. The 

term is commonly used in the 

multilateral export control regimes’ 

control lists upon which much of the 

CCL and USML are based. A basket 

category for controlling militarily less 

significant items ‘‘specially designed’’ 

for defense articles that move to the CCL 

is still necessary to achieve the larger 

national security objectives of the 

reform effort. Creating a positive list of 

the tens of thousands of such parts, 

components, accessories, and 

attachments that warrant some degree of 

control is not practicable as ‘‘specially 

designed’’ is used 264 times in the 

current CCL. Reviewing each such CCL 

reference, and clearing the proposed 

revisions through the multilateral 

regimes where required, is not 

realistically possible in the near term. 

Adopting the MTCR’s definition of 

‘‘specially designed’’ as the standard for 

the definition applicable to items 

controlled by the other multilateral 

export control regimes or that would 

move from the USML to the CCL is 

inappropriate. The U.S. Government has 

the national authority and discretion to 

define ‘‘specially designed’’ consistent 

with its regime commitments. 

To accomplish the regulatory and 

definitional harmonization objectives 

described in the ANPRs, the definition 

of ‘‘specially designed’’ must be single, 

clear, and objective. This proposed rule 

contains, for public review and 

comment, a single definition the 

Administration believes satisfies all 

these objectives. BIS seeks public 

comments particularly on whether there 

would be any anticipated change in 

controls based on adoption of this 

definition, relative to the current 

situation where ‘‘specially designed’’ is 

only defined for MT-controlled items. 

Through this proposed definition, if an 

item is ‘‘specially designed’’ today, it 

would continue to be ‘‘specially 

designed’’ after adoption of this 

definition. If it is not ‘‘specially 

designed’’ today (meaning prior to 

adoption of the definition included in 

this rule), it also should not, except in 

rare cases, become ‘‘specially designed’’ 

after adoption of this definition in a 

final rule. As a result, BIS strongly 

encourages the public to apply the 

proposed definition to items, 

particularly ‘‘end items,’’ ‘‘parts’’ and 

‘‘components,’’ it believes are or are not 

currently covered by ‘‘specially 

designed’’ and report to BIS any 

instances in which the proposed 

definition produces different results 

from the current definition. Such 

comments should describe the item and 

why the commentor believes that the 

item at issue is not now ‘‘specially 

designed’’ but would be as a result of 

the application of the new definition. 

(b) ‘‘Specially designed’’ will play an 

important role in the ‘‘600 series.’’ 

As described above, generic ‘‘parts,’’ 

‘‘components,’’ and ‘‘accessories and 

attachments’’ would be classified under 

the ‘‘600 series’’ ‘‘x’’ subparagraphs if 

they were ‘‘specially designed’’ for an 

end item in that ‘‘600 series’’ ECCN or 

a defense article in a corresponding 

USML category. ‘‘End items’’ not 

specifically enumerated would be 

classified in the ‘‘600 series’’ if they 

were ‘‘specially designed’’ for a 

particular function or purpose or to 

have a type of capability. The term 

would also be used by the Department 

of State in the revised USML categories. 

Although a core element of the 

positive USML review exercise is to 

avoid using design-intent based control 

parameters for generic items, the U.S. 

Government cannot completely 

eliminate ‘‘specially designed’’ as a 

control standard for two primary 

reasons: The term is used in the 

multilateral regimes’ control lists upon 

which most of the CCL is based, and a 

basket category for controlling militarily 

less significant items ‘‘specially 

designed’’ for defense articles that move 

to the CCL is still necessary. 

Adopting the MTCR’s definition of 

‘‘specially designed’’ as the definition 

applicable to items controlled by the 

other regimes or items that would move 

from the USML to the CCL is 

inappropriate because of its limitation 

to items exclusively used for the 

controlled end item at issue. The MTCR 

definition of ‘‘specially designed’’ is: 

‘‘Specially designed. (MTCR context)— 


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Equipment, parts, components, or 

‘software’ that, as a result of 

development’, have unique properties 

that distinguish them for certain 

predetermined purposes. For example, a 

piece of equipment that is ‘‘specially 

designed’’ for use in a ‘‘missile’’ will 

only be considered so if it has no other 

function or use. Similarly, a piece of 

manufacturing equipment that is 

‘specially designed’ to produce a certain 

type of component will only be 

considered such if it is not capable of 

producing any other type of component. 

The reliance of the MTCR definition on 

the concept of exclusively used limits 

the utility of this term as a single term 

for all of the items on the two control 

lists. 

The single definition of ‘‘specially 

designed’’ proposed in this rule would 

not be limited to items with an 

exclusive use. In addition, the approach 

proposed in this rule would avoid 

confusion for exporters, jurors, 

prosecutors, and government officials 

responsible for export controls. Once 

incorporated into U.S. regulations, the 

U.S. Government will seek agreement in 

the Australia Group (AG), Nuclear 

Suppliers Group (NSG), and WA— 

which do not currently define the 

term—to use this definition in those 

regimes. 

(c) Clarifying the meaning of the term 

‘‘specially designed’’ will improve the 

clarity of the control lists. 

In addition to playing an important 

role in the control structure proposed in 

this rule, the clarification of the 

meaning of ‘‘specially designed’’ as it is 

used on the two control lists would 

improve the clarity and ‘‘positive’’ 

nature of the two control lists and allow 

for drawing more clearly defined 

jurisdictional lines. Other regulatory 

initiatives are currently under way to 

address the meaning of other key terms 

used on the two control lists, such as 

‘‘technology’’ and ‘‘public domain,’’ and 

to harmonize those other terms, but the 

harmonization of ‘‘specially designed,’’ 

given how closely tied the term is to the 

control structure that has been 

developed for addressing the movement 

of items from the USML to the CCL, 

needs to be addressed now. Specifically, 

this clarification would definitively 

answer any questions the public may 

have regarding the intended meaning of 

the term ‘‘specially designed’’ for all 

references to this term on the USML and 

the CCL and allow the term ‘‘specially 

designed’’ to play a key role in the ‘‘600 

series’’ ECCNs that are proposed to be 

created. 

(d) Goals and Limitations of Effort to 

Define ‘‘Specially Designed.’’ 

The U.S. Government has the national 

authority and discretion to define 

‘‘specially designed,’’ so long as our 

definition is consistent with our regime 

commitments. A single, clear definition 

is necessary for most of the key goals of 

the export control reform effort to be 

realized. Specifically, this single 

definition must: 

Preclude multiple or overlapping 

controls of similar items within and 

across the two control lists; 

Be capable of being easily understood 

and applied by exporters, prosecutors, 

juries, and the U.S. Government—e.g., 

by using objective, knowable, and clear 

requirements that do not rely upon a 

need to investigate and divine the 

intentions of the original designer of a 

part or the predominant market 

applications for such items; 

Be consistent with definitions used by 

the international export control regimes; 

Not include any item specifically 

enumerated on either the USML or the 

CCL and, in order to avoid a definitional 

loop, do not use ‘‘specially designed’’ as 

a control criterion; 

Be capable of excluding from control 

simple or multi-use parts such as 

springs, bolts, and rivets, and other 

types of items the U.S. Government 

determines do not warrant significant 

export controls; 

Be applicable to both descriptions of 

end items that are ‘‘specially designed’’ 

to have particular characteristics and to 

parts and components that were 

‘‘specially designed’’ for particular end 

items; 

Be applicable to materials and 

software because they are ‘‘specially 

designed’’ to have a particular 

characteristic or for a particular type of 

end item; 

Not result in an increase in the 

current control level to ‘‘600 series’’ 

control or other higher end controls of 

items (i.e., not moving items currently 

subject to a lower control status to a 

higher level control status), particularly 

current EAR99 items, that are now 

controlled at lower levels; and 

Not, merely as a result of the 

definition, cause historically EAR 

controlled items to become ITAR 

controlled. 

(e) Proposed Definition of ‘‘Specially 

Designed.’’ 

BIS, in working closely with the 

Departments of State and Defense on the 

issue, has determined that the following 

proposed definition of ‘‘specially 

designed’’ achieves the objectives noted 

above. A proposed definition of the term 

that would be added to the definitions 

section of the EAR and the ITAR (the 

proposed definition of ‘‘specially 

designed’’ for the ITAR would include 

ITAR specific references, ITAR and 

USML) is set out in the proposed 

amendments to 15 CFR 772.1 in this 

proposed rule. 

(ii) Addition of ten definitions and 

revision to one existing definition. 

In addition to revising definitions of 

the terms ‘‘specially designed’’ and 

‘‘material,’’ which are discussed 

elsewhere in this proposed rule, in 

§ 772.1 (Definitions of terms used in the 

Export Administration Regulations 

(EAR)), this rule also proposes adding 

ten definitions and revising one 

definition to aid in the structural 

alignment of the CCL with the USML 

and to add specificity regarding what 

items are classified under certain entries 

on the CCL. The ITAR and the USML 

describe with specificity what these 

defined ITAR terms, described below, 

are with respect to what defense articles 

subject to the ITAR are caught or not 

caught within the scope of specific 

entries on the USML. The EAR, in many 

places, does not draw a clear distinction 

between what constitutes a ‘‘part’’ 

versus a ‘‘component,’’ although in 

certain places the EAR does draw these 

types of distinctions. This proposed rule 

would add these definitions to the EAR. 

In a separate regulatory initiative, BIS 

plans to publish another proposed rule 

that will propose various conforming 

changes to the CCL and the overall EAR 

to reflect these new definitions. 

Specifically, this rule proposes adding 

definitions for the following terms, 

which are used in the EAR but are 

currently undefined: ‘‘600 series,’’ 

‘‘accessories and attachments,’’ 

‘‘component,’’ ‘‘end item,’’ 

‘‘equipment,’’ ‘‘facilities,’’ ‘‘part,’’ 

‘‘serial production’’ and ‘‘system.’’ It 

further proposed revising the existing 

definition of ‘‘military commodity,’’ 

which is noted with an asterisk below. 

The proposed definitions for these 

terms are set out in the proposed 

amendments in this proposed rule. 

(4) Other changes to assist in the 

structural alignment of the USML and 

the CCL. 

(i) Revisions to CCL product group 

headings for product group A. 

To conform to the proposed changes 

described below under § 770.2, this 

proposed rule would update the product 

group heading for A in each Category of 

the CCL. This proposed change would 

help with the structural alignment of the 

CCL and USML by ensuring these terms 

and control lists’ product group 

headings are used in a consistent way. 

Specifically, this proposed rule would 

change the product group A heading as 

set out in the proposed amendments. 

(ii) Change to definition of 

‘‘Materials.’’ 


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This proposed rule would not change 

the heading except for adding quotation 

marks around the term to indicate it was 

defined, and would add a new 

definition in § 772.1 to define the term 

‘‘materials’’ as it is used in this CCL 

Product Group C heading and in other 

parts of the EAR. Specifically, this 

proposed rule would add quotes around 

the product group C heading as set out 

in the proposed amendments. 

In addition, this proposed rule would 

adopt the definition of ‘‘Material’’ in 

§ 772.1 as set out in the proposed 

amendments. 

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 12, 2010, 75 FR 50681 

(August 16, 2010), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. 

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, distributive 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. This regulation 

involves collections previously 

approved by the OMB under the 

following control numbers: 0694–0088, 

and 0694–0137. Specifically, BIS would 

be requesting a revision and extension 

of existing collection OMB 0694–0088 

(Simplified Network Application 

Processing and Multipurpose 

Application Form), and 0694–0137 

(License Exemptions and Exclusions). 

This proposed rule will significantly 

reduce the overall burden associated 

with exporting certain items; however, 

the burden will shift among collections. 

This proposed rule will increase public 

burden in a collection of information 

approved by OMB under control 

number 0694–0088, which authorizes, 

among other things, export license 

applications. The creation of the ‘‘600 

series’’ would result in increased license 

applications being submitted to BIS by 

exporters. In addition, certain license 

applications that include License 

Exception STA eligibility requests for 

‘‘600 series’’ end items made pursuant 

to § 740.20(g) would also involve 

submitting additional information as 

part of the license application process. 

However, some of this increased 

burden, as noted above, will be 

mitigated by the availability of certain 

EAR license exceptions or portions of 

certain license exceptions for some of 

these items moved from the USML to 

the CCL. Total burden hours associated 

with the Paperwork Reduction Act and 

OMB control number 0694–0088 are 

expected to increase by about 5,067 

hours (16,000 transactions @ 17 minutes 

each) if all items anticipated to be 

moved from the ITAR to the CCL are 

moved. 

This rule also increases public burden 

in a collection of information approved 

by OMB under control number 0694– 

0137. In addition this notice proposes 

adding certain additional restrictions 

that will be placed on the use of license 

exceptions in § 740.2. These changes 

involve including additional 

restrictions, but also involve adding 

license exception eligibility that 

previously had not been available for 

these items when they were under the 

jurisdiction of the ITAR, so any burden 

should be offset by the benefits of 

moving such items from the USML to 

the CCL. BIS expects the requirements, 

if all items anticipated to be moved from 

the USML to the CCL are moved, are 

likely to increase the burden associated 

with control number 0694–0137 by 

about 23,858 hours (20,450 transactions 

@ 1 hour and 10 minutes each) for the 

increase to license exception STA and 

95 hours for license exception GOV 

(1,000 transactions @ 5.7 minutes per 

transaction). 

This increased burden is significantly 

mitigated by the reductions in burden 

that would occur as a result of moving 

these items from the more restrictive 

licensing regime required by the AECA 

and implemented in the ITAR to the 

more flexible licensing regime of the 

EAR. The movement of these items from 

the USML to the CCL will significantly 

reduce the overall burden associated 

with exporting such items. Specifically, 

the movement of these items from the 

USML to the CCL will address and 

indeed largely solve simultaneously 

many of the most significant issues and 

goals of the ECR effort, such as (i) 

immediate relief from certain USML 

controls on non-military end items and 

militarily less significant parts and 

components; (ii) the collateral ITARspecific consequences of such controls 

(e.g., the need for registration and 

Manufacturing Licensing Agreements 

(MLAs)/Technical Assistance 

Agreements (TAAs)); (iii) the process to 

accomplish the already agreed-upon 

transfer of such items to the CCL to 

allow for more flexible controls 

consistent with the criteria developed 

under the ECR initiative; and (iv) the 

collateral consequences of the ‘‘seethrough’’ rule and the ‘‘ITAR-free’’ 

issues that create an incentive for 

foreign companies to buy foreign-made 

items that are not on the WAML instead 

of the U.S.-origin versions that are on 

the USML as a result of its broad 

controls over generic parts and 

components. For these reasons, BIS has 

determined that any increase in the 

burden associated with these collections 

is offset by the benefits of moving these 

items from the USML to the CCL. In 

addition, as noted above, looking at the 

overall burden on exporters under the 

U.S. export control system, the 

movement of these items from the 

USML to the CCL would result in a ‘‘net 

reduction’’ in the overall burden on 

exporters under the U.S. export control 

system. 

Lastly, with respect to the PRA 

estimates included in this proposed 

rule, BIS has worked with the 

Department of State to estimate the 

volume of export related activity for 

these items that may be moved over, but 

given the ‘‘positive’’ review of the 

USML is still ongoing and there are 

other steps that are required prior to any 

items being moved from the USML to 

the CCL, such as the AECA section 38(f) 

notification process with Congress, the 

numbers used in this PRA estimate are 

a rough estimate that will be revised as 

subsequent rules begin the process of 

formally moving certain items from the 

USML to the CCL. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

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 this proposed rule, 

if adopted in final form, would not have 


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41970 Federal Register / Vol. 76, No. 136 / Friday, July 15, 2011 / Proposed Rules 

a significant economic impact on a 

substantial number of small entities. 

Number of Small Entities 

Currently, BIS does not collect data 

on the size of entities that apply for and 

are issued export licenses. Although BIS 

is unable to estimate the exact number 

of small entities that would be impacted 

by this rule, it does acknowledge that 

this rule will impact some unknown 

number. 

Economic Impact 

Under the ECR initiative, a revised, 

‘‘positive’’ USML is being created to 

protect and enhance U.S. national 

security interests by focusing munitions 

controls subject to the jurisdiction of the 

ITAR on the most sensitive items. As 

part of the ECR initiative to create a 

revised, ‘‘positive’’ USML, militarily 

less significant items will be moved 

from the USML to the CCL after the 

completion of the AECA section 38(f) 

process and subsequent corresponding 

amendments to the ITAR and its USML 

and to the EAR and its CCL. 

BIS believes focusing U.S. export 

controls in this way will reduce the 

costs on small entities (and all other 

entities) subject to U.S. export controls, 

once this process of revising the two 

control lists and moving the militarily 

less significant items from the USML to 

CCL is completed in 2012, as currently 

projected. BIS believes that this rule 

would reduce the costs to small entities 

(and all other entities) because it would 

create a control structure under the EAR 

that would allow militarily less 

sensitive items to be moved from the 

USML, to the CCL and be subject to a 

more flexible licensing regime under the 

EAR. 

BIS believes the creation of the 

control structure included in this 

proposed rule is a prerequisite before 

any items could be moved from the 

USML to the CCL (i.e., before small 

entities and all other entities could 

benefit from the movement of items 

from the USML to the CCL). The 

purpose of this rule is to propose the 

new control structure and to explain to 

small entities (and all other entities) 

how items moved from the USML will 

be classified under the CCL and what 

other provisions will be added to the 

EAR to address the movement of items 

from the USML to the CCL. The control 

structure itself will not impact the 

regulated entities until items are moved 

from the USML to the CCL. 

This rule will create new license 

requirements such as imposing a NS1 

and RS1 worldwide license 

requirement, except for Canada, for the 

items moved from the USML to the CCL 

that would be classified in the new ‘‘600 

series.’’ This rule will significantly 

reduce the costs on small entities (and 

all other entities) by allowing for certain 

de minimis eligibility for these items 

moved from the USML to the CCL, but 

certain restrictions on the use of de 

minimis and restrictions on the use of 

license exceptions would be added to 

the EAR which create limits on small 

entities (and all other entities). This rule 

would also create new reporting 

requirements related to the export of 

certain ‘‘600 series’’ items under new 

§ 743.4. However, these new reporting 

requirements can be conceptualized as a 

shifting the reporting burdens as the 

burdens are largely the same in type and 

scope as those required under the 

USML. As a result, although the 

reporting requirement proposed in this 

rule is a new reporting requirement 

under the EAR, the burden placed on 

small entities (and all other entities) is 

not increased in terms of the overall 

burden placed on them under the U.S. 

export control system. 

BIS believes the additional controls 

and requirements discussed above are 

required to protect U.S. national 

security and that the benefits of moving 

these items from the USML to the CCL 

far outweigh any additional costs 

associated with moving these militarily 

less sensitive items to the CCL both 

from a U.S. national security 

perspective and in terms of the costs 

placed on small entities (and all other 

entities). In addition, as much as 

possible, these additional controls 

would be added to the CCL in a manner 

that is consistent with the existing CCL 

and EAR control structure to minimize 

the costs associated with understanding 

and complying with these new controls. 

In addition to the establishment of a 

control structure, this rule proposes to 

move a limited number of items from 

the USML to the CCL as a pilot. Because 

this rule proposes to move only a 

relatively small number of items from 

the USML to the CCL at this time, the 

economic impact of this rule will be 

minimal. These items would be moved 

from Category VII (Tanks and Military 

Vehicles) of the U.S. Munitions List to 

the following five ECCNs included in 

this proposed rule: 0A606, 0B606, 

0C606, 0D606 and 0E606. Future 

transfers of items from the USML to the 

CCL will be conducted under separate 

rulemakings and BIS will conduct an 

analysis regarding each rule’s economic 

impact. 

The other changes included in this 

proposed rule, in particular the 

clarification of ‘‘specially designed,’’ 

will benefit small entities (and all other 

entities), once a larger number of items 

are moved from the USML to the CCL 

in subsequent rulemakings because of 

the improved clarity of the control lists 

and the improvements that will occur in 

drawing a bright line between the two 

control lists. The focusing of the two 

control lists, along with the clarification 

of key control lists terms such as 

‘‘specially designed’’—a term small 

entities (and all other entities) have long 

requested be clarified under U.S. export 

controls—and the other changes 

included in this proposed rule to 

structurally align the two control lists 

are expected to reduce the costs on 

small entities (and all other entities) of 

complying with U.S. export controls. 

Although BIS is not able to quantify 

the economic impact, it estimates that 

small entities (and all other entities) 

would benefit from the movement of 

these items from the USML to the CCL. 

BIS believes moving certain parts and 

components from the USML to the CCL 

in particular would reduce the costs on 

small entities (and all other entities), 

once such items are moved from the 

USML to the CCL in subsequent 

rulemakings. Specifically, BIS believes 

that moving these militarily less 

sensitive parts and components to the 

CCL will address and indeed largely 

solve simultaneously many of the most 

significant issues and goals of the ECR 

effort, such as (i) Immediate relief from 

USML control of non-military end items 

and militarily less significant parts and 

components; (ii) the collateral ITARspecific consequences of such controls 

(e.g., the need for registration and 

MLAs/TAAs); (iii) the process to 

accomplish the already agreed-upon 

transfer of such items to the CCL to 

allow for more flexible controls 

consistent with the criteria developed 

under the ECR initiative; (iv) the 

collateral consequences of the ‘‘seethrough’’ rule and the ‘‘ITAR-free’’ 

issues that create an incentive for 

foreign companies to buy foreign-made 

items that are not on the WAML instead 

of the U.S.-origin versions that are on 

the USML as a result of its broad 

controls over generic parts and 

components. 

Conclusion 

BIS is unable to determine whether 

there are a substantial number of small 

entities affected by this rule. However, 

the effect of this rule on all entities is 

not likely to be a significant economic 

impact because, as mentioned above, 

through this proposed rule is limited to 

creating the new control structure and 

moving only a small, first tranche of 

items from the USML to the CCL. 

BIS believes, along with the other 

agencies participating in the ECR 


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initiative, that distinguishing between 

different levels of sensitivity to 

determine what items need to be 

maintained on the USML and what 

militarily less sensitive items should be 

transferred to the CCL to allow for more 

flexible licensing for the militarily less 

sensitive items will have significant 

benefits in improving the efficiency of 

the U.S. export control system by 

focusing the most restrictive controls on 

the most sensitive items, which will 

protect and enhance U.S. national 

security while also reducing the costs 

associated with complying with U.S. 

export controls, particularly for small 

and medium-sized entities. Specifically, 

moving these militarily less sensitive 

items to the EAR will protect and 

enhance U.S. national security by 

improving the interoperability of U.S. 

military forces with allied countries and 

reducing the incentive to design-out 

U.S.-origin items. Reducing the 

incentive to design out U.S.-origin ‘‘600 

series’’ items, along with all of the other 

benefits that come along with moving 

these items to the more flexible 

licensing regime of the EAR will help 

protect the U.S. industrial base. This is 

essential to ensuring the U.S. armed 

forces are properly equipped. 

For the reasons above, the Chief 

Counsel for Regulation certified that this 

rule would not have a significant 

economic impact on a substantial 

number of small entities. 

List of Subjects 

15 CFR Part 730 

Administrative practice and 

procedure, Advisory committees, 

Exports, Reporting and recordkeeping 

requirements, Strategic and critical 

materials. 

15 CFR Part 732 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

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 Parts 740, 748 and 770 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 743 

Administrative practice and 

procedure, Reporting and recordkeeping 

requirements. 

15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

15 CFR Parts 746 and 774 

Exports, Reporting and recordkeeping 

requirements. 

15 CFR Part 756 

Administrative practice and 

procedure, Exports, Penalties. 

15 CFR Part 762 

Administrative practice and 

procedure, Business and industry, 

Confidential business information, 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, parts 730, 732, 734, 738, 

740, 742, 743, 744, 746, 748, 756, 762, 

770, 772 and 774 of the Export 

Administration Regulations (15 CFR 

parts 730–774) are proposed to be 

amended as follows: 

PART 730—[AMENDED] 

1. The authority citation for 15 CFR 

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; 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. 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, 3 CFR, 2004 Comp., p. 

168; Notice of August 12, 2010, 75 FR 50681 

(August 16, 2010); Notice of November 4, 

2010, 75 FR 68673 (November 8, 2010); 

Notice of January 13, 2011, 76 FR 3009 

January 18, 2011). 

2. Section 730.3 is revised to read as 

follows: 

§ 730.3 Items of export. 

The term ‘‘dual use’’ is often used to 

describe the types of items subject to the 

EAR. A dual use item has commercial 

applications and also has military 

applications or proliferation concerns, 

but the more precise way of describing 

what is subject to the EAR is: any item 

that is not exclusively controlled for 

export or reexport by another agency of 

the U.S. Government or excluded from 

the EAR pursuant to section 734.3(b) is 

an item that is subject to the EAR. Items 

subject to the EAR encompass not only 

commercial items with military 

applications and proliferation concerns, 

but also certain items that, by their form 

and fit, are uniquely used in military 

end items. Items subject to the EAR 

include most dual-use items, most 

commercial items and certain munitions 

items listed on the Wassenaar 

Arrangment Munitions List (WAML) or 

formerly on the USML classified under 

ECCNs in the ‘‘600 series,’’ ECCNs 

ending in ‘‘018’’ (but these ‘‘018’’ 

ECCNs are expected to be consolidated 

with the ‘‘600 series’’ in the near future) 

and ECCN 0A919). So although the term 

dual use in the past may have often 

been used informally to describe the 

scope of items subject to the EAR, this 

term no longer accurately reflects the 

full scope of items that are subject to the 

EAR and should therefore no longer be 

used in describing the scope of items 

subject to the EAR without also 

referencing that the EAR also controls 

most commercial items and certain 

munitions items. 

PART 732—[AMENDED] 

3. The authority citation for 15 CFR 

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). 

4. Section 732.4 is amended: 

a. By adding one sentence to the end 

of paragraph (b)(3)(iv); 

b. By revising paragraph (b)(7); and 

c. By adding a Note to paragraph 

(b)(7)(ii), to read as follows: 

§ 732.4 Steps Regarding Using License 

Exceptions. 

* * * * * 

(b) * * * 

(3) * * * 

(iv) * * * If you are exporting under 

License Exceptions LVS, TMP, RPL, 

STA, or GOV and your item is classified 

in the ‘‘600 series,’’ you should review 

§ 743.4 of the EAR to determine the 

applicability of certain reporting 

requirements for conventional arms 

exports. 

* * * * * 


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(7) Step 26: License applications. 

(i) If you are going to file a license 

application with BIS, you should first 

review the requirements at part 748 of 

the EAR. Exporters, reexporters, and 

transferors should review the 

instructions concerning applications 

and required support documents prior 

to submitting an application for a 

license. 

(ii) If you are going to file a license 

application with BIS for the export, 

reexport or in-country transfer for an 

‘‘end item’’ classified in an ECCN 

‘‘xA6zz’’ entry on the CCL, you may also 

request as part of the license application 

a License Exception STA eligibility 

request pursuant to the process in 

§ 740.20(g) of the EAR. ‘‘End items’’ 

classified in an ECCN ‘‘xA6zz’’ entry on 

the CCL that have already been 

determined to be eligible for License 

Exception STA pursuant to § 740.20(g) 

are identified in Supplement No. 4 to 

part 774 of the EAR. See Supplement 

No. 2 to part 748 under paragraph (w) 

(License Exception STA eligibility 

requests) for instructions concerning 

applications and required support 

documents prior to submitting an 

application for a license which will 

include a License Exception STA 

eligibility requests. 

Note to paragraph (b)(7)(ii): If you intend 

to use License Exception STA, return to 

paragraphs (a) and then (b) to review the 

Steps regarding the use of license exceptions. 

5. Supplement No. 3 to part 732 is 

amended by adding paragraphs (b)13. 

and (b)14., to read as follows: 

SUPPLEMENT NO. 3 TO PART 732— 

BIS’S ‘‘KNOW YOUR CUSTOMER’’ 

GUIDANCE AND RED FLAGS 

* * * * * 

(b) * * * 

13. You receive an order for ‘‘parts’’ for an 

item in the ‘‘600 series.’’ The requested 

‘‘parts’’ may be eligible for License Exception 

STA, another authorization, or may not 

require a destination-based license 

requirement for the country in question. 

However, the requested ‘‘parts’’ would be 

sufficient to service one hundred of the ‘‘600 

series’’ items, but you ‘‘know’’ the country 

does not have those types of end items or 

only has two of those end items. 

14. The customer indicates that a ‘‘600 

series’’ item may be reexported to a country 

subject to an arms embargo (see 

§ 740.2(a)(12)). 

PART 734—[AMENDED] 

6. The authority citation for 15 CFR 

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. 

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

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

FR 50681 (August 16, 2010); Notice of 

November 4, 2010, 75 FR 68673 (November 

8, 2010). 

7. Section 734.4 is amended: 

a. By revising the heading and the 

introductory text of paragraph (b); 

b. By adding paragraph (b)(3); and 

c. By revising the introductory text of 

paragraph (c), to read as follows: 

§ 734.4 De minimis U.S. content. 

* * * * * 

(b) Special requirements for certain 

encryption items and ‘‘600 series’’ items 

subject to the EAR. Foreign made items 

that incorporate U.S. origin encryption 

items that are listed in this paragraph 

are subject to the EAR unless they meet 

the de minimis level and destination 

requirements of paragraph (c) or (d) of 

this section and the requirements of this 

paragraph. For foreign made items that 

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

items, see paragraph (b)(3) of this 

section. 

* * * * * 

(3) Foreign made items incorporating 

U.S.-origin items classified under the 

‘‘600 series’’ (i.e., ‘‘xY6zz’’) are excluded 

from the ‘‘25% De minimis Rule’’ in 

paragraph (d) of this section. See the 

‘‘10% De minimis Rule’’ in paragraph 

(c) of this section for exports from 

abroad or reexports for foreign made 

items incorporating U.S.-origin items 

classified under the ‘‘600 series’’ ECCNs 

(i.e., ‘‘xY6zz’’). 

* * * * * 

(c) 10% De Minimis Rule. Except as 

provided in paragraphs (a) and (b)(1)(iii) 

of this section and subject to the 

provisions of paragraphs (b)(1)(i), 

(b)(1)(ii), (b)(2) and (b)(3) of this section, 

the following reexports are not subject 

to the EAR when made to any country 

in the world. See Supplement No. 2 of 

this part for guidance on calculating 

values. 

* * * * * 

PART 738—[AMENDED] 

8. The authority citation for 15 CFR 

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). 

9. Section 738.2 is amended: 

a. In the introductory text of 

paragraph (b) by removing ‘‘A— 

Equipment, Assemblies and 

Components’’ and adding in its place, 

‘‘A—End Items, Equipment, Accessories 

and Attachments, Parts, Components, 

and Systems’’; 

b. In the introductory text of 

paragraph (d)(1) by adding paragraphs 

‘‘5:’’ and ‘‘6:’’ after paragraph ‘‘3:’’ and 

before paragraph ‘‘9:’’; and 

c. By adding paragraph (d)(1)(iv), to 

read as follows: 

§ 738.2 Commerce Control List (CCL) 

structure. 

* * * * * 

(d) * * * 

(1) * * * 

5: Items warranting national security 

or foreign policy controls at the 

determination of the Department of 

Commerce. 

6: ‘‘600 series’’ controls items because 

they are items on the Wassenaar 

Arrangement Munitions List (WAML) or 

formerly on the USML. 

* * * * * 

(iv) Last two characters in a ‘‘600 

series’’ ECCN. The last two characters of 

each ‘‘600 series’’ ECCN track the 

Wassenaar Arrangement Munitions List 

(WAML) categories for the types of 

items at issue. The WAML ML21 

(‘‘software’’) and ML22 (‘‘technology’’) 

are, however, included in D 

(‘‘software’’) and E (‘‘technology’’) CCL 

product groups. 

* * * * * 

PART 740—[AMENDED] 

10. The authority citation for 15 CFR 

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). 

11. Section 740.2 is amended: 

a. By adding paragraph (a)(12), a note 

to paragraph (a)(12), and paragraphs 

(a)(13) and (a)(14); and 

b. By adding a note to paragraph (a), 

to read as follows: 

§ 740.2 Restrictions on all License 

Exceptions. 

(a) * * * 

(12) Items classified under the ‘‘600 

series’’ that are destined to a country 

subject to a United States arms embargo 

or a United Nations Security Council 

arms embargo (Afghanistan, Belarus, 

Burma, China, Cote d’Ivoire, Cuba, 

Cyprus, Democratic Republic of Congo, 

Eritrea, Haiti, Iraq, Iran, Lebanon, 

Liberia, Libya, North Korea, Sierra 

Leone, Somalia, Sudan, Sri Lanka, 

Syria, Venezuela, Vietnam, Yemen, and 


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Zimbabwe) may not be authorized 

under any license exception except by 

License Exception GOV under 

§ 740.11(b)(2)(ii). 

Note to paragraph (a)(12): Countries 

subject to U.S. arms embargoes are identified 

by the State Department through notices 

published in the Federal Register. The list of 

arms embargoed destinations in this 

paragraph is drawn from 22 CFR 126.1 and 

State Department Federal Register notices 

related to arms embargoes (compiled at 

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

embargoed_countries/index.html) and will be 

amended when the State Department 

publishes subsequent notices. If there are any 

discrepancies between the list of countries in 

this paragraph and the countries identified 

by the State Department as subject to a U.S. 

arms embargo (in the Federal Register), the 

State Department’s list of countries subject to 

U.S. arms embargoes shall be controlling. 

(13) Items classified under the ‘‘600 

series’’ are not eligible for any license 

exception, except as described in 

paragraph (a)(13)(i), (ii), or (iii) of this 

section. For MT-controlled items, 

including ‘‘600 series’’ ECCNs, see the 

restrictions on all license exceptions in 

paragraph (a)(5) of this section. Under 

the restriction in paragraph (a)(5), no 

such ‘‘600 series’’ ECCNs are eligible for 

license exceptions. You may not use a 

license exception to authorize a MTcontrolled item in the ‘‘600 series.’’ 

(i) ‘‘600 series’’ ‘‘end items’’ may only 

be authorized by the following license 

exceptions: 

(A) License Exception LVS (§ 740.3); 

(B) License Exception TMP (§ 740.9); 

(C) License Exception RPL (§ 740.10); 

(D) License Exception GOV 

(§ 740.11(b)(2)(ii) or (b)(2)(iii)). License 

Exception GOV paragraph (b)(2)(iii) is 

only available for countries listed in 

§ 740.20(c)(1); or 

(E) License Exception STA under 

§ 740.20(c)(1), provided License 

Exception STA has been identified by 

BIS in writing or published as an 

eligible license exception for the 

particular ‘‘600 series’’ end item in 

response to a License Exception STA 

eligibility request in accordance with 

§ 740.20(g) of the EAR and the ultimate 

end use for the end item is by a 

government in one of the countries 

listed in § 740.20(c)(1). Exports and 

reexports to non-governmental end 

users in a country listed in 

§ 740.20(c)(1) are authorized through 

License Exception STA under 

§ 740.20(c)(1) as long as the item at issue 

at the time of export, reexport or transfer 

(in-country) is ultimately destined for 

end use by the armed forces, police, 

paramilitary, law enforcement, customs 

and border protection, correctional, fire, 

and search and rescue agencies of a 

government of one of the § 740.20(c)(1) 

countries. 

(ii) ‘‘600 series’’ ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories’’ and 

‘‘attachments,’’ or any item classified in 

a ‘‘600 series’’ product group B or C 

ECCN may only be authorized by the 

following license exceptions: 

(A) License Exception LVS (§ 740.3); 

(B) License Exception TMP (§ 740.9); 

(C) License Exception RPL (§ 740.10); 

(D) License Exception GOV 

(§ 740.11(b)(2)(ii) or (b)(2)(iii)). License 

Exception GOV paragraph (b)(2)(iii) is 

only available for countries listed in 

§ 740.20(c)(1); or 

(E) License Exception STA under 

§ 740.20(c)(1), provided the ultimate 

end use for the ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ or for 

any item classified in a ‘‘600 series’’ 

product group B or C ECCN is by a 

government in one of the countries 

listed in § 740.20(c)(1). Exports and 

reexports to non-governmental end 

users in a country listed in 

§ 740.20(c)(1) are authorized through 

License Exception STA under 

§ 740.20(c)(1) as long as the item at issue 

at the time of export, reexport or transfer 

(in-country) is ultimately destined for 

end use by the armed forces, police, 

paramilitary, law enforcement, customs 

and border protection, correctional, fire, 

and search and rescue agencies of a 

government of one of the § 740.20(c)(1) 

countries. This provision does not alter 

the limitations on the use of License 

Exception STA contained in 

§ 740.20(b)(2). 

(iii) ‘‘600 series’’ ‘‘software’’ and 

‘‘technology’’ may only be authorized by 

the following license exceptions: 

(A) License Exception GOV 

(§ 740.11(b)(2)(ii) or (b)(2)(iii)). License 

Exception GOV paragraph (b)(2)(iii) is 

only available for countries listed in 

§ 740.20(c)(1); 

(B) License Exception TSU 

(§ 740.13(a) or (b)); or 

(C) License Exception STA 

(§ 740.20(c)(1)), provided the ultimate 

end use for the ‘‘software’’ or 

‘‘technology’’ is by a government in one 

of the countries listed in § 740.20(c)(1). 

Exports and reexports to nongovernmental end users in a country 

listed in § 740.20(c)(1) are authorized 

through License Exception STA under 

§ 740.20(c)(1) as long as the item at issue 

at the time of export, reexport or transfer 

(in-country) is ultimately destined for 

end use by the armed forces, police, 

paramilitary, law enforcement, customs 

and border protection, correctional, fire, 

and search and rescue agencies of a 

government of one of the § 740.20(c)(1) 

countries. This provision does not alter 

the limitations on the use of License 

Exception STA contained in 

§ 740.20(b)(2). 

(14) Items classified under ECCNs 

0A521, 0B521, 0C521, 0D521 and 0E521 

may only be authorized by License 

Exception GOV (§ 740.11(b)(2)(ii)). 

Note to paragraph (a): Items subject to the 

exclusive export control jurisdiction of 

another agency of the U.S. Government may 

not be authorized by a license exception or 

any other authorization under the EAR. If 

your item is subject to the exclusive 

jurisdiction of another agency of the U.S. 

Government, you must determine your 

export licensing requirements pursuant to the 

other agency’s regulations. See § 734.3(b) and 

Supplement No. 3 to part 730 for other U.S. 

Government Departments and Agencies with 

Export Control Responsibilities. 

* * * * * 

12. Section 740.10 is amended: 

a. By revising the heading of the 

section; 

b. By revising the introductory text of 

the section; 

c. By revising paragraph (a); 

d. By revising paragraph (b)(1); 

e. By revising paragraph (b)(2)(ii); 

f. By revising paragraph (b)(3)(i); 

g. By revising paragraph (b)(3)(ii)(C); 

and 

h. By revising paragraph (c), to read 

as follows: 

§ 740.10 Servicing and replacement of 

parts, components, accessories, and 

attachments (RPL). 

This License Exception authorizes 

exports and reexports associated with 

one-for-one replacement of parts, 

components, accessories, and 

attachments. License Exception RPL 

also authorizes exports and reexports of 

certain items currently ‘‘subject to the 

EAR’’ to or for, or to replace, a defense 

article described in an export or 

reexport authorization issued under the 

authority of the Arms Export Control 

Act. It does not, however, authorize the 

export or reexport of ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ that are ‘‘defense articles’’ 

currently identified on the United States 

Munitions List (22 CFR 121.1). 

(a) ‘‘Parts,’’ ‘‘Components,’’ 

‘‘Accessories and Attachments’’—(1) 

Scope. The provisions of this paragraph 

(a) authorize the export and reexport of 

one-for-one replacement parts, 

components, accessories, and 

attachments for previously exported 

equipment or other end items. 

(2) One-for-one replacement of parts, 

components, accessories, or 

attachments. (i) The terms replacement 

parts, components, accessories, or 

attachments as used in this section 

mean parts, components, accessories, or 

attachments needed for the immediate 


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repair of equipment or other end items, 

including replacement of defective or 

worn parts or components. (It includes 

‘subassemblies’ but does not include 

test instruments or operating supplies.) 

(The term ‘subassembly’ means a 

number of parts or components 

assembled to perform a specific function 

or functions within a commodity. One 

example would be printed circuit 

boards with components mounted 

thereon. This definition does not 

include major subsystems such as those 

composed of a number of 

subassemblies.) Items that improve or 

change the basic design characteristics, 

e.g., as to accuracy, capability, 

performance or productivity, of the 

equipment or other end item upon 

which they are installed, are not 

deemed to be replacement parts, 

components, accessories, or 

attachments. For kits consisting of 

replacement parts or components, 

consult § 740.9(a)(2)(ii) of this part. 

(ii) Parts, components, accessories, 

and attachments may be exported only 

to replace, on a one-for-one basis, parts, 

components, accessories, or 

attachments, respectively, contained in 

commodities that were: lawfully 

exported from the United States; 

lawfully reexported; or made in a 

foreign country incorporating 

authorized U.S.-origin parts, 

components, accessories, or 

attachments. ‘‘600 series’’ parts, 

components, accessories and 

attachments may be exported only to 

replace, on a one-for-one basis, parts, 

components, accessories, or attachments 

that were: lawfully exported from the 

United States; or lawfully reexported. 

(For exports or reexports to the installed 

base in Libya, see § 764.7 of the EAR.) 

The conditions of the original U.S. 

authorization must not have been 

violated. Accordingly, the export of 

replacement parts, components, 

accessories, and attachments may be 

made only by the party who originally 

exported or reexported the commodity 

to be repaired, or by a party that has 

confirmed the existence of appropriate 

authority for the original transaction. 

(iii) The parts, components, 

accessories, or attachments to be 

replaced must either be destroyed 

abroad or returned promptly to the 

person who supplied the replacements, 

or to a foreign firm that is under the 

effective control of that person. 

(3) Exclusions to License Exception 

RPL. (i) No replacement parts, 

components, accessories, or attachments 

may be exported to repair a commodity 

exported under a license or other 

authorization if that license or other 

authorization included a condition that 

any subsequent replacements must be 

exported only under a license. 

(ii) No parts, components, accessories, 

or attachments may be exported to be 

held abroad as spares for future use. 

Replacements may be exported to 

replace spares that were authorized to 

accompany the export of equipment or 

other end items, as those spares are used 

in the repair of the equipment or other 

end item. This is intended to allow 

maintenance of the stock of spares at a 

consistent level as the parts, 

components, accessories, or attachments 

are used. 

(iii) No parts, components, 

accessories, or attachments may be 

exported to any destination, except the 

countries listed in Supplement No. 3 to 

part 744 of the EAR (Countries Not 

Subject to Certain Nuclear End Use 

Restrictions in § 744.2(a)), if the item is 

to be incorporated into or used in 

nuclear weapons, nuclear explosive 

devices, nuclear testing related to 

activities described in § 744.2(a) of the 

EAR, the chemical processing of 

irradiated special nuclear or source 

material, the production of heavy water, 

the separation of isotopes of source and 

special nuclear materials, or the 

fabrication of nuclear reactor fuel 

containing plutonium, as described in 

§ 744.2(a) of the EAR. 

(iv) No replacement parts, 

components, accessories, or attachments 

may be exported to countries in Country 

Group E:1 (see Supplement No. 1 to this 

part) (countries designated by the 

Secretary of State as supporting acts of 

international terrorism) if the 

commodity to be repaired is an 

‘‘aircraft’’ (as defined in part 772 of the 

EAR) or is controlled for NS reasons. 

(v) No replacement parts may be 

exported to countries in Country Group 

E:1 if the commodity to be repaired is 

explosives detection equipment 

classified under ECCN 2A983 or related 

software classified under ECCN 2D983. 

(vi) No replacement parts may be 

exported to countries in Country Group 

E:1 if the commodity to be repaired is 

concealed object detection equipment 

classified under ECCN 2A984 or related 

software classified under ECCN 2D984. 

(vii) The conditions described in this 

paragraph (a)(3) relating to replacement 

of parts, components, accessories, or 

attachments do not apply to reexports to 

a foreign country of parts, components, 

accessories, or attachments as 

replacements in foreign-origin products, 

if at the time the replacements are 

furnished, the foreign-origin product is 

eligible for export to such country under 

any of the License Exceptions in this 

part or the exceptions in § 734.4 of the 

EAR (de minimis U.S. content). 

(vii) Parts, components, accessories, 

and attachments classified in ‘‘600 

Series’’ ECCNs may not be exported or 

reexported to a country identified in 

§ 740.2(a)(12). 

(4) Reexports. (i) Parts, components, 

accessories, and attachments exported 

from the United States may be 

reexported to a new country of 

destination, provided that the 

conditions established in paragraphs 

(a)(2) and (3) of this section are met. A 

party reexporting U.S.-origin one-forone replacement parts, components, 

accessories, or attachments shall ensure 

that the commodities being repaired 

were shipped to their present location 

in accordance with U.S. law and 

continue to be lawfully used, and that 

either before or promptly after reexport 

of the replacement parts, components, 

accessories, or attachments, the replaced 

commodities and software are either 

destroyed or returned to the United 

States, or to the foreign firm in Country 

Group B (see Supplement No. 1 to part 

740) that shipped the replacement parts. 

(ii) The conditions described in 

paragraph (a)(3) relating to replacement 

of parts, components, accessories, or 

attachments (excluding ‘‘600 series’’ 

ECCNs) do not apply to reexports to a 

foreign country of parts, components, 

accessories, or attachments as 

replacements in foreign-origin products, 

if at the time the replacements are 

furnished, the foreign-origin product is 

eligible for export to such country under 

any of the License Exceptions in this 

part or the foreign-origin product is not 

subject to the EAR pursuant to § 734.4. 

(b) Servicing and replacement—(1) 

Scope. The provisions of this paragraph 

(b) authorize the export and reexport to 

any destination, except destinations 

identified in § 740.2(a)(12) or otherwise 

prohibited under the EAR, of 

commodities and software that were 

returned to the United States for 

servicing and the replacement of 

defective or unacceptable U.S.-origin 

commodities and software. 

(2) * * * 

(ii) Return of serviced commodities 

and software. When the serviced 

commodity or software is returned, it 

may include any replacement or rebuilt 

parts, components, accessories, or 

attachments necessary to its repair and 

may be accompanied by any spare part, 

component, tool, accessory, attachment 

or other item that was sent with it for 

servicing. 

* * * * * 

(3) * * * 

(i) Subject to the following conditions, 

commodities or software may be 

exported or reexported to replace 


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defective or otherwise unusable (e.g., 

erroneously supplied) items. 

(A) The commodity or software is 

‘‘subject to the EAR.’’ 

(B) The commodity or software to be 

replaced must have been previously 

exported or reexported in its present 

form under a license or authorization 

granted by BIS or an authorization, e.g., 

a license or exemption, issued under the 

authority of the Arms Export Control 

Act. 

(C) No commodity or software may be 

exported or reexported to replace 

equipment that is worn out from normal 

use, nor may any commodity or 

software be exported to be held in stock 

abroad as spare equipment for future 

use. 

(D) The replacement item may not 

improve the basic characteristic, e.g., as 

to accuracy, capability, performance, or 

productivity, of the equipment as 

originally authorized, e.g., under a 

license, license exception or an 

exemption, for export or reexport. 

(E) No shipment may be made to 

countries in Country Group E:1 (see 

Supplement No. 1 to this part), or to any 

other destination to replace defective or 

otherwise unusable equipment owned 

or controlled by, or leased or chartered 

to, a national of any of those countries. 

(F) Commodities or software ‘‘subject 

to the EAR’’ and classified in ‘‘600 

Series’’ ECCNs may not be exported or 

reexported to a destination identified in 

§ 740.2(a)(12). 

(ii) * * * 

(C) The commodity or software to be 

replaced must either be destroyed 

abroad or returned to the United States, 

or to a foreign firm in Country Group B 

that is under the effective control of the 

exporter, or to the foreign firm that is 

providing the replacement part or 

equipment. The destruction or return 

must be effected before, or promptly 

after, the replacement is exported from 

the United States. 

* * * * * 

(c) Special recordkeeping 

requirements: ECCNs 2A983, 2A984, 

2D983 and 2D984, and ‘‘600 Series’’ 

ECCNs. (1) In addition to the other 

recordkeeping requirements set forth 

elsewhere in the EAR, exporters are 

required to maintain records, as 

specified in this section, for any items 

exported or reexported pursuant to 

License Exception RPL to repair, 

replace, or service previously lawfully 

exported or reexported items classified 

under ECCNs 2A983, 2A984, 2D983 and 

2D984 or a ‘‘600 Series’’ ECCN. The 

following information must be 

maintained for each such export or 

reexport transaction: 

(i) A description of the item replaced, 

repaired or serviced; 

(ii) The type of repair or service; 

(iii) Certification of the destruction or 

return of item replaced; 

(iv) Location of the item replaced, 

repaired or serviced; 

(v) The name and address of those 

who received the items for replacement, 

repair, or service; 

(vi) Quantity of items shipped; and 

(vii) Country of ultimate destination. 

(2) Records maintained pursuant to 

this section may be requested at any 

time by an appropriate BIS official as set 

forth in § 762.7 of the EAR. Records that 

must be included in the annual or semiannual reports of exports and reexports 

of ‘‘600 Series’’ items under the 

authority of License Exception RPL are 

described in § 743.4 and § 762.2(b)(4), 

(b)(47) and (b)(48). 

13. Section 740.11 is amended by 

adding paragraph (b)(3)(iii), to read as 

follows: 

§ 740.11 Governments, international 

organizations, international inspections 

under the Chemical Weapons Convention, 

and the International Space Station (GOV). 

* * * * * 

(b) * * * 

(3) * * * 

(iii) Agency of a government eligible 

to receive ‘‘600 series’’ items. Only the 

countries listed in § 740.20(c)(1) are 

eligible to receive ‘‘600 series’’ items. 

* * * * * 

14. Section 740.20 is amended: 

a. By adding a Note to paragraph 

(c)(1); and 

b. By adding paragraph (g), to read as 

follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

* * * * * 

(c) * * * 

Note to paragraph (c)(1). License 

Exception STA under § 740.20(c)(1) may be 

used to authorize the export, reexport or 

transfer (in-country) of ‘‘600 series’’ items, 

provided the ultimate end-use for the 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories and 

attachments’’ or for any item classified in a 

‘‘600 series’’ product group B or C ECCN is 

by a government in one of the countries 

listed in § 740.20(c)(1). For ‘‘600 series’’ end 

items, see paragraph (g) of this section. 

Exports and reexports to non-governmental 

end-users in a country listed in § 740.20(c)(1) 

are authorized through License Exception 

STA under § 740.20(c)(1) as long as the item 

at issue at the time of export, reexport or 

transfer (in-country) is ultimately destined 

for end use by the armed forces, police, 

paramilitary, law enforcement, customs and 

border protection, correctional, fire, and 

search and rescue agencies of a government 

of one of the § 740.20(c)(1) countries. This 

provision does not alter the limitations on 

the use of License Exception STA contained 

in § 740.20(b)(2). 

* * * * * 

(g) License Exception STA eligibility 

requests for ‘‘600 series’’ end items. 

(1) Applicability. Exporters, 

reexporters and transferors may request 

License Exception STA eligibility for 

‘‘end items’’ classified in a ‘‘600 series’’ 

product group A ECCN. License 

Exception STA requests under this 

paragraph (g) may only be submitted 

together with a license application 

submitted to BIS for an export, reexport 

or transfer (in-country) of an ‘‘end item’’ 

classified in a ‘‘600 series’’ product 

group A ECCN. 

(2) Required information for requests. 

A License Exception STA eligibility 

request must include the following 

statement, ‘‘Request for additional 

License Exception STA eligibility for 

ECCN(s) ‘‘xA6zz.’’ For information on 

what information must be submitted 

and the information required in the 

BIS–748P Multipurpose Application 

form, see Supplement No. 2 to part 748. 

(3) Timeline for USG review. The U.S. 

Government reviews license 

applications and License Exception STA 

eligibility requests at the same time to 

determine whether either submission 

should be approved. Both license 

applications for ‘‘600 series’’ items and 

License Exception STA eligibility 

requests would be reviewed in 

accordance with the timelines set forth 

in Executive Order 12981 and § 750.4. If 

the License Exception STA request is 

approved, the process outlined in 

paragraph (g)(5)(i) of this section is 

followed. 

(4) Review criteria. The Departments 

of Commerce, Defense and State will 

determine whether the item is eligible 

for this license exception based on an 

assessment of whether it provides a 

critical military or intelligence 

advantage to the United States or is 

otherwise available in countries that are 

not regime partners or close allies. If the 

item does not provide a critical military 

or intelligence advantage to the United 

States or is otherwise available in 

countries that are not regime partners or 

close allies, the Departments will 

determine that License Exception STA 

is available unless an overarching 

foreign policy rationale for restricting 

STA availability can be articulated. 

Consensus between the Departments is 

required in order for an ‘‘end item’’ to 

be eligible for License Exception STA. 

Such determinations are made by the 

departments’ representatives to the 

Advisory Committee on Export Policy 

(ACEP), or their designees. 


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(5) Disposition of License Exception 

STA eligibility requests. 

(i) Approvals. If the request is 

approved, the applicant will receive 

written notification from BIS 

authorizing the use of the additional 

License Exception STA for the specific 

items requested. Applicants who receive 

an approval request may share that 

written notification with companies 

affiliated with them, such as a branch or 

distributor, and may also take steps to 

make it public (e.g., on their Web site) 

if the applicants so wish. In addition, 

BIS will add a description of the 

approved end item in an online table 

which will use the same format as 

Supplement No. 4 to part 774, which 

removes the restriction on the use of 

License Exception STA for the end item 

identified in the approved request. The 

description of these end items will be 

posted on the BIS Web site (typically 

within 30 calendar days from date on 

which the approved response was sent), 

informing other exporters, reexporters 

and transferors of the additional license 

exception eligibility for that ‘‘600 

series’’ product group A ECCN. Within 

approximately three months after such a 

written response was sent to the 

applicant (i.e., the date of the BIS 

response sent to the applicant), in either 

a January, April, July, or October 

quarterly update of Supplement No. 4 to 

part 774 (Listing of License Exception 

STA Eligibility Determinations Pursuant 

to § 740.20(g) for ‘‘600 Series’’ ‘‘End 

Items’’ Eligible for License Exception 

STA under § 740.20(c)(1)), BIS will 

publish a final rule adding this license 

exception eligibility to the EAR for that 

ECCN entry. 

(ii) Denials. If the STA eligibility 

request is not approved, the license 

application will be reviewed under the 

normal license review process described 

in part 750. The STA eligibility review 

is completed concurrently with the 

license application review period. The 

license application will be reviewed in 

accordance with the license review 

policies in part 742 (and parts 744 

and/or 746, if applicable). Interagency 

review of license applications is 

conducted without regard to the 

disposition of an STA eligibility request. 

Applicants may re-submit STA 

eligibility requests at any time. 

(iii) Recordkeeping requirements for 

approved License Exception STA 

eligibility requests. BIS written 

responses to License Exception STA 

eligibility requests (either from the BIS 

Web site or in original form) must be 

kept in accordance with the 

recordkeeping requirements in part 762 

of the EAR. 

PART 742—[AMENDED] 

15. The authority citation for 15 CFR 

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 12, 2010, 75 FR 

50681 (August 16, 2010); Notice of November 

4, 2010, 75 FR 68673 (November 8, 2010). 

16. Section 742.4 is amended by 

revising paragraph (b)(1), to read as 

follows: 

§ 742.4 National security. 

* * * * * 

(b) Licensing policy. (1)(i) The policy 

for national security controlled items 

exported or reexported to any country 

except a country in Country Group D:1 

(see Supplement No. 1 to part 740 of the 

EAR) is to approve applications unless 

there is a significant risk that the items 

will be diverted to a country in Country 

Group D:1. 

(ii) When destined to a country 

subject to a United States arms embargo 

(see § 740.2(a)(12), however, items 

classified under ‘‘600 series’’ ECCNs are 

subject to a general policy of denial. 

* * * * * 

17. Section 742.6 is amended: 

a. By revising paragraph (a)(1); 

b. In the introductory text of 

paragraph (a)(4)(i) by removing the text 

‘‘and .b’’ after the text ‘‘9A018.a’’ in 

three places where the text appears; 

c. By adding paragraph (a)(7); and 

d. By revising the first sentence of 

paragraph (b)(1), to read as follows: 

§ 742.6 Regional stability. 

(a) * * * 

(1) RS Column 1 License 

Requirements in General. As indicated 

in the CCL and in RS column 1 of the 

Commerce Country Chart (see 

Supplement No. 1 to part 738 of the 

EAR), a license is required to all 

destinations, except Canada, for items 

described on the CCL under ECCNs 

0A521; 0A606 (except 0A606.y); 0B521; 

0B606 (except 0B606.y); 0C521; 0C606 

(except 0C606.y); 0D521; 0D606 (except 

0D606.y); 0E521; 0E606 (except 

0E606.y); 6A002.a.1, a.2, a.3, .c, or .e; 

6A003.b.3, and b.4.a; 6A008.j.1; 

6A998.b; 6D001 (only ‘‘software’’ for the 

‘‘development’’ or ‘‘production’’ of 

items in 6A002.a.1, a.2, a.3, .c; 

6A003.b.3 and .b.4; or 6A008.j.1); 6D002 

(only ‘‘software’’ for the ‘‘use’’ of items 

in 6A002.a.1, a.2, a.3, .c; 6A003.b.3 and 

.b.4; or 6A008.j.1); 6D003.c; 6D991 (only 

‘‘software’’ for the ‘‘development,’’ 

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

classified under 6A002.e or 6A998.b); 

6E001 (only ‘‘technology’’ for 

‘‘development’’ of items in 6A002.a.1, 

a.2, a.3 (except 6A002.a.3.d.2.a and 

6A002.a.3.e for lead selenide focal plane 

arrays), and .c or .e, 6A003.b.3 and b.4, 

or 6A008.j.1); 6E002 (only ‘‘technology’’ 

for ‘‘production’’ of items in 6A002.a.1, 

a.2, a.3, .c, or .e, 6A003.b.3 or b.4, or 

6A008.j.1); 6E991 (only ‘‘technology’’ 

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

‘‘use’’ of equipment classified under 

6A998.b); 6D994; 7A994 (only QRS11– 

00100–100/101 and QRS11–0050–443/ 

569 Micromachined Angular Rate 

Sensors); 7D001 (only ‘‘software’’ for 

‘‘development’’ or ‘‘production’’ of 

items in 7A001, 7A002, or 7A003); 

7E001 (only ‘‘technology’’ for the 

‘‘development’’ of inertial navigation 

systems, inertial equipment, and 

specially designed components therefor 

for civil aircraft); 7E002 (only 

‘‘technology’’ for the ‘‘production’’ of 

inertial navigation systems, inertial 

equipment, and specially designed 

components therefor for civil aircraft); 

7E101 (only ‘‘technology’’ for the ‘‘use’’ 

of inertial navigation systems, inertial 

equipment, and specially designed 

components for civil aircraft). 

* * * * * 

(7) RS Column 1 license requirements 

and related policies for ‘0Y521.’ 

(i) Scope. This paragraph (a)(7) 

supplements the information in the 

‘0Y521’ ECCNs and in Supplement No. 

5 to part 774 (Items Classified Under 

ECCNs 0A521, 0B521, 0C521, 0D521 

and 0E521). This subparagraph alerts 

exporters, reexporters and transferors to 

the procedures that apply to items 

classified under the ‘0Y521’ ECCNs. 

(ii) ‘0Y521’ Items. Items subject to the 

EAR that are not listed elsewhere in the 

CCL, but which the Department of 

Commerce, with the concurrence of the 

Departments of Defense and State has 

determined should be controlled for 

export because the items provide at least 

a significant military or intelligence 

advantage to the United States or for 

foreign policy reasons shall be classified 

under ECCNs 0A521, 0B521, 0C521, 

0D521 and 0E521. These items are 

typically emerging technologies 

(including emerging commodities, 

software and technology) that are not 

otherwise yet included in the CCL, so 

such items are listed on the CCL 

through ECCNs ‘0Y521’ until the items 

are classified under another ECCN. 


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(iii) Requirement to be classified 

under another ECCN within one 

calendar year of classification under 

ECCN ‘0Y521.’ Items classified under an 

ECCN ‘0Y521’ entry must be reclassified within one calendar year from 

the date they are listed in Supplement 

No. 5 to part 774 of the EAR. If such reclassification does not occur within that 

period, classification under an ECCN 

‘0Y521’ entry expires, and such items 

are designated as EAR99 items unless 

the CCL is amended to either impose a 

control on such items under another 

ECCN or to re-extend for another oneyear period (not to exceed two 

extensions) the classification under 

ECCN ‘0Y521.’ 

(b) Licensing policy. (1) Applications 

for exports and reexports described in 

paragraph (a)(1), (a)(2), (a)(6) or (a)(7) of 

this section will be reviewed on a caseby-case basis to determine whether the 

export or reexport could contribute 

directly or indirectly to any country’s 

military capabilities in a manner that 

would alter or destabilize a region’s 

military balance contrary to the foreign 

policy interests of the United States. 

* * * * * 

PART 743—[AMENDED] 

18. The authority citation for 15 CFR 

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). 

19. Section 743.1 is amended by 

adding two sentences at the end of the 

introductory text of paragraph (a), to 

read as follows: 

§ 743.1 Wassenaar Arrangement. 

(a) * * * This section is limited to the 

Wassenaar Arrangement reporting 

requirements for items listed on the 

Wassenaar Arrangement’s Dual-Use list. 

For reporting requirements for 

conventional arms listed on the 

Wassenaar Arrangement Munitions List 

that are subject to the EAR (i.e., ‘‘600 

series’’ ECCNs), see § 743.4 of this part 

for Wassenaar Arrangement and United 

Nations reporting requirements. 

* * * * * 

20. Add § 743.4, to read as follows: 

§ 743.4 Conventional arms reporting. 

(a) Scope. This section outlines 

special reporting requirements for 

exports of certain items controlled 

under the Wassenaar Arrangement 

Munitions List and the UN Register of 

Conventional Arms. Participating States 

of the Wassenaar Arrangement exchange 

information every six months on 

deliveries to non-participating states of 

conventional arms set forth in the 

Wassenaar Arrangement’s Basic 

Documents under Part II Guideline and 

Procedures, including the Initial 

Elements, Appendix 3: Specific 

Information Exchange on Arms Content 

by Category (at http:// 

www.wassenaar.org), derived from the 

categories of the UN Register of 

Conventional Arms (at http:// 

www.un.org/disarmament/convarms/ 

Register/HTML/RegisterIndex.shtml). 

Similar, although not identical 

information is also reported by the U.S. 

Government to the United Nations on an 

annual basis. The reported information 

should include the quantity and the 

name of the recipient state and, except 

in the category of missiles and missile 

launchers, details of model and type. 

Such reports must be submitted to BIS 

semi-annually in accordance with the 

provisions of paragraph (f) of this 

section for items identified in paragraph 

(c)(1) and annually for items identified 

in paragraph (c)(2), and records of all 

exports subject to the reporting 

requirements of this section must be 

kept in accordance with part 762 of the 

EAR. This section does not require 

reports for reexports or transfers (incountry). 

Note to paragraph (a): For purposes of 

§ 743.4, the term ‘‘you’’ has the same 

meaning as the term ‘‘exporter’’, as defined 

in part 772 of the EAR. 

(b) Requirements. You must submit 

one electronic copy of each report 

required under the provisions of this 

section and maintain accurate 

supporting records (see § 762.2(b) of the 

EAR) for all exports of items specified 

in paragraph (c) of this section for the 

following: 

(1) Exports authorized under License 

Exceptions LVS, TMP, RPL, STA, or 

GOV (see part 740 of the EAR); 

(2) Exports authorized under the 

Special Comprehensive License 

procedure (see part 752 of the EAR); and 

(3) Exports authorized under the 

Validated End User authorization (see 

§ 748.15 of the EAR). 

(c) Items for which reports are 

required —. (1) Wassenaar Arrangement 

reporting. You must submit reports to 

BIS under the provisions of this section 

only for exports of items classified 

under the following ECCNs: 

(i) [RESERVED] 

(ii) [RESERVED] 

(2) United Nations reporting. You 

must submit reports to BIS under the 

provisions of this section only for 

exports of items classified under the 

following ECCNs: 

(i) [RESERVED] 

(ii) [RESERVED] 

(d) Country Exceptions for Wassenaar 

Arrangement reporting. You must report 

each export subject to the provisions of 

this section, except for exports to 

Wassenaar member countries, identified 

in Supplement No. 1 to part 743 for 

reports required under paragraph (c)(1) 

of this section. 

(e) Information that must be included 

in each report. (1) Each report submitted 

to BIS for items other than those 

identified in paragraph (e)(2) of this 

section must include the following 

information for each export during the 

time periods specified in paragraph (f) 

of this section: 

(i) Export Control Classification 

Number and paragraph reference as 

identified on the Commerce Control 

List; 

(ii) Number of units in the shipment; 

and 

Note to paragraph (e)(1)(ii): For exports of 

technology for which reports are required 

under § 743.1(c) of this section, the number 

of units in the shipment should be reported 

as one (1) for the initial export of the 

technology to a single ultimate consignee. 

Additional exports of the technology must be 

reported only when the type or scope of 

technology changes or exports are made to 

other ultimate consignees. 

(iii) Country of ultimate destination. 

(f) Frequency and timing of reports— 

(1) Semi-annual reports for items 

identified in paragraph (c)(1) of this 

section. You must submit reports 

subject to the provisions of this section 

semiannually. The reports must be 

labeled with the exporting company’s 

name and address at the top of each 

page and must include for each such 

export all the information specified in 

paragraph (e) of this section. The reports 

shall cover exports made during six 

month time periods spanning from 

January 1 through June 30 and July 1 

through December 31. 

(i) The first report must be submitted 

to and received by BIS no later than 

[INSERT DATE] for the partial reporting 

period beginning [INSERT DATE] and 

ending [INSERT DATE]. Thereafter, 

reports are due according to the 

provisions of paragraphs (f)(2) and (f)(3) 

of this section. 

(ii) Reports for the reporting period 

ending June 30 must be submitted to 

and received by BIS no later than 

August 1. 

(iii) Reports for the reporting period 

ending December 31 must be submitted 

to and received by BIS no later than 

February 1. 

(2) Annual reports for items identified 

in paragraph (c)(2) of this section. You 

must submit reports subject to the 

provisions of this section annually. The 

reports must be labeled with the 


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exporting company’s name and address 

at the top of each page and must include 

for each such export all the information 

specified in paragraph (e) of this 

section. The reports shall cover exports 

made during twelve month time periods 

spanning from January 1 through 

December 31. 

(i) The first report must be submitted 

to and received by BIS no later than 

[INSERT DATE] for the partial reporting 

period beginning [INSERT DATE] and 

ending [INSERT DATE]. Thereafter, 

reports are due according to the 

provisions of paragraph (f)(2) of this 

section. 

(ii) Reports for the reporting period 

ending December 31 must be submitted 

to and received by BIS no later than 

February 1. 

(g) Submission of reports. Information 

should be submitted in the form of an 

EXCEL spreadsheet and e-mailed to 

WAreports@BIS.DOC.GOV or 

UNreports@BIS.DOC.GOV. 

(h) Contacts. General information 

concerning the Wassenaar Arrangement 

and reporting obligations thereof is 

available from the Office of National 

Security and Technology Transfer 

Controls, Tel. (202) 482–0092, Fax: (202) 

482–4094. 

PART 744—[AMENDED] 

21. The authority citation for 15 CFR 

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 12, 2010, 75 FR 50681 

(August 16, 2010); Notice of November 4, 

2010, 75 FR 68673 (November 8, 2010): 

Notice of January 13, 2011, 76 FR 3009, 

January 18, 2011. 

22. Section 744.17 is amended: 

a. By revising the section heading; 

and 

b. By revising paragraph (d), to read 

as follows: 

§ 744.17 Restrictions on certain exports 

and reexports of general purpose 

microprocessors for ‘military end uses’ and 

to ‘military end users.’ 

* * * * * 

(d) Military end use. In this section, 

the phrase ‘military end use’ means 

incorporation into: a military item 

described on the U.S. Munitions List 

(USML) (22 CFR part 121, International 

Traffic in Arms Regulations) or the 

Wassenaar Arrangement Munitions List 

(as set out on the Wassenaar 

Arrangement Web site at http:// 

www.wassenaar.org); commodities 

classified under ECCNs ending in 

‘‘A018’’ or under ‘‘600 series’’ product 

group A, B, or C ECCNs; or any item that 

is designed for the ‘‘use,’’ 

‘‘development,’’ ‘‘production,’’ or 

deployment of military items described 

on the USML, the Wassenaar 

Arrangement Munitions List or 

classified under ECCNs ending in 

‘‘A018’’ or under ‘‘600 series’’ product 

group A, B, or C ECCNs. Supplement 

No. 1 of this part lists examples of 

‘military end use.’ 

* * * * * 

23. Section 744.21 is amended by 

revising the first sentence of paragraph 

(f), to read as follows: 

§ 744.21 Restrictions on certain military 

end uses in the People’s Republic of China 

(PRC). 

* * * * * 

(f) In this section, ‘military end use’ 

means: incorporation into a military 

item described on the U.S. Munitions 

List (USML) (22 CFR part 121, 

International Traffic in Arms 

Regulations); incorporation into a 

military item described on the 

Wassenaar Arrangement Munitions List 

(as set out on the Wassenaar 

Arrangement Web site at http:// 

www.wassenaar.org); incorporation into 

items classified under ECCNs ending in 

‘‘A018’’ or under ‘‘600 series’’ product 

group A, B or C ECCNs; or for the ‘‘use,’’ 

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

military items described on the USML 

or the Wassenaar Arrangement 

Munitions List, or items classified under 

ECCNs ending in ‘‘A018’’ or under ‘‘600 

series’’ product group A, B or C ECCNs. 

* * * 

* * * * * 

24. Supplement No. 2 to part 744 (List 

of Items Subject to the Military End-Use 

License Requirement of § 744.21) is 

amended: 

a. By revising the introductory text of 

the Supplement; and 

b. By adding paragraph (10), to read 

as follows: 

SUPPLEMENT NO. 2 TO PART 744— 

LIST OF ITEMS SUBJECT TO THE 

MILITARY END-USE LICENSE 

REQUIREMENT OF § 744.21 

The following items, as described, are 

subject to the military end-use license 

requirement in § 744.21. See paragraph (10) 

for items classified under the ‘‘600 series.’’ 

* * * * * 

(10) ‘‘600 series.’’ 

(i) Any item classified in paragraph .y of 

a ‘‘600 series’’ entry (e.g., 0A606.y). 

(ii) [Reserved] 

PART 746—[AMENDED] 

25. The authority citation for 15 CFR 

part 746 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. 287c; Sec 1503, 

Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004; 

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

12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 

614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 

Comp., p. 899; E.O. 13222, 3 CFR, 2001 

Comp., p. 783; Presidential Determination 

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

16, 2003; Presidential Determination 2007–7 

of December 7, 2006, 72 FR 1899 (January 16, 

2007); Notice of August 12, 2010, 75 FR 

50681 (August 16, 2010). 

26. Section 746.3 is amended by 

revising paragraph (b)(2), to read as 

follows: 

§ 746.3 Iraq. 

* * * * * 

(b) * * * 

(2) License applications for the export 

or reexport to Iraq or transfer within Iraq 

of machine tools controlled for national 

security (NS) or nuclear 

nonproliferation (NP) reasons, as well as 

for any items controlled for crime 

control (CC) or United Nations (UN) 

reasons (including items classified 

under ECCN 0A986) or ECCNs that end 

in the number ‘‘018’’ or items classified 

under ‘‘600 series’’ ECCNs, that would 

make a material contribution to the 

production, research, design, 

development, support, maintenance or 

manufacture of Iraqi weapons of mass 

destruction, ballistic missiles or arms 

and related materiel will be subject to a 

general policy of denial. 

* * * * * 

PART 748—[AMENDED] 

27. The authority citation for 15 CFR 

part 748 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). 

28. Section 748.8 is amended by 

adding paragraph (w), to read as 

follows: 

§ 748.8 Unique application and 

submission requirements. 

* * * * * 

(w) License Exception STA eligibility 

requests for ‘‘600 series’’ end items. 

29. Supplement No. 2 to part 748 

(Unique Application and Submission 

Requirements) is amended by adding 

paragraph (w), to read as follows: 


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SUPPLEMENT NO. 2 TO PART 748— 

UNIQUE APPLICATION AND 

SUBMISSION REQUIREMENTS 

* * * * * 

(w) License Exception STA eligibility 

requests for ‘‘600 series’’ end items. To 

request a License Exception STA eligibility 

requests for ‘‘600 series’’ items pursuant to 

§ 740.20(g), you must specify ‘‘License 

Exception STA request pursuant to 

740.20(g)’’ in Block 9 (Special Purpose) and 

mark ‘‘export’’ or ‘‘reexport’’ as applicable in 

Block 5 (Type of Application) of the BIS– 

748P ‘‘Multipurpose Application’’ form. If 

the application is for an ‘‘in-country 

(transfer)’’ follow the instructions in 

Supplement No. 2 to part 748 under 

paragraph (v) to mark in Block 9 (Special 

Purpose) for in-country transfer and License 

Exception STA eligibility request pursuant to 

§ 740.20(g), along with marking ‘‘reexport’’ in 

Block 5. Applicants will need to provide 

sufficient information for the U.S. 

Government to make such a determination. 

This will require the applicant to submit 

more than merely a description of the end 

item. In particular, the applicant will need to 

provide supporting information for why it 

believes that the item does not, for example, 

provide a critical military or intelligence 

advantage to the United States or is otherwise 

available in countries that are not regime 

partners or close allies. The applicant will 

also need to provide information regarding 

whether and, if so, how the item is controlled 

by the export control laws and regulations of 

close allies and regime partners, if known. 

The applicant should provide BIS with the 

text it would propose BIS use in describing 

the end item in Supplement No. 4 to part 774 

and the online table referenced in 

§ 740.20(g)(5)(i) in anticipation the request 

may be approved pursuant to § 740.20(g). 

You may submit additional information that 

you believe is relevant to the U.S. 

Government in reviewing the License 

Exception STA eligibility request either 

under Block 24 (Additional Information) or 

as a separate support document attachment 

to the license application. 

PART 756—[AMENDED] 

30. The authority citation for 15 CFR 

part 756 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). 

31. Section 756.1 is amended by 

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

follows: 

§ 756.1 Introduction. 

(a) * * * 

(4) A decision to make License 

Exception STA available for ‘‘600 

series’’ ‘‘end items’’ pursuant to 

§ 740.20(g). 

* * * * * 

PART 762—[AMENDED] 

32. The authority citation for 15 CFR 

part 762 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). 

33. Section 762.2 is amended: 

a. By revising paragraph (b)(4); 

b. In paragraph (b)(45) by removing 

the ‘‘and’’ at the end of the paragraph; 

c. In paragraph (b)(46) by removing 

the period at the end of the paragraph 

and adding a semi-colon at the end of 

the paragraph; and 

d. By adding paragraphs (b)(47) and 

(b)(48), to read as follows: 

§ 762.2 Records to be retained. 

* * * * * 

(b) * * * 

(4) § 740.10, Servicing and 

replacement of parts, components, 

accessories, and attachments (RPL); 

* * * * * 

(47) § 743.4, Conventional Arms 

Reporting under (c)(1) and (c)(2); and 

(48) § 740.20(g), Responses to License 

Exception STA eligibility requests for 

‘‘600 series’’ end items. 

* * * * * 

PART 770—[AMENDED] 

34. The authority citation for 15 CFR 

part 770 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). 

35. Section 770.2 is amended by 

revising paragraph (h), to read as 

follows: 

§ 770.2 Item interpretations. 

* * * * * 

(h) Interpretation 8: Ground vehicles. 

(1) BIS has export licensing jurisdiction 

over ground transport vehicles 

(including trailers), parts, and 

components therefor specially designed 

or modified for non-combat military 

use. Vehicles in this category are 

primarily transport vehicles designed or 

modified for transporting cargo, 

personnel and/or equipment, or to move 

other vehicles and equipment over land 

and roads in close support of fighting 

vehicles and troops. BIS also has export 

licensing jurisdiction over unarmed 

civil vehicles that are all-wheel drive 

sport utility vehicles capable of off-road 

use which have been manufactured or 

fitted with materials to provide ballistic 

protection, including protection to level 

III (as defined by the Department of 

Justice’s National Institute of Justice 

Standard 0108.01, September 1985) or 

better. In this section, and in ECCN 

0A606, the word ‘‘unarmed’’ means not 

having weapons installed, not having 

mountings for weapons installed, and 

not having special reinforcements for 

mountings for weapons. 

(2) Modification of a ground vehicle 

for military use entails a structural, 

electrical or mechanical change 

involving one or more ‘‘specially 

designed’’ military components. Such 

components include, but are not limited 

to: 

(i) Pneumatic tire casings of a kind 

designed to be bullet-proof or to run 

when deflated; 

(ii) Tire inflation pressure control 

systems, operated from inside a moving 

vehicle; 

(iii) Armored protection of vital parts, 

(e.g., fuel tanks or vehicle cabs); 

(iv) Special reinforcements for 

mountings for weapons; and 

(v) Black-out lighting. 

(3) Scope of ECCN 0A606.b.4 and 

ground vehicles designated as EAR99. 

(i) Ground transport vehicles 

(including trailers) ‘‘specially designed’’ 

for non-combat military use are 

classified under ECCN 0A606.b.4. 

(ii) Unarmed civil all-wheel drive 

vehicles capable of off-road use that are 

not described in paragraph (h)(4) of this 

section and which have been 

manufactured or fitted with materials to 

provide ballistic protection to level III 

(as defined by DOJ’s National Institute 

of Justice Standard 0108.01, September 

1985) or better are classified under 

ECCN 0A606.b.4. 

Note 1 to paragraph (h)(3)(ii): ECCN 

0A606.b.4 does not include ‘civil 

automobiles’, or trucks designed or modified 

for transporting money or valuables, having 

armored or ballistic protection, even if the 

automobiles or trucks incorporate items 

described in paragraphs (h)(2) (i), (ii), or (iii) 

of this section, provided the ‘civil 

automobile’ is not an all-wheel drive vehicle 

capable of off-road use. 

Note 2 to paragraph (h)(3)(ii). In this 

section, the term ‘civil automobile’ means a 

passenger car, limousine, van or sport utility 

vehicle designed for the transportation of 

passengers and marketed through civilian 

channels in the United States. 

(iii) Certain ‘‘parts,’’ ‘‘components,’’ 

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

are related to items classified under 

ECCN 0A606.b.4 will be specifically 

identified in the respective 

subparagraphs of ECCN 0A606.b.4. 

‘‘Parts,’’ ‘‘components,’’ ‘‘accessories,’’ 

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for a commodity classified 

under ECCN 0A606 or a defense article 

in USML Category VII are classified 

under 0A606.x. Specific ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ 


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‘‘attachments’’ of less military 

significance, but warrant AT-controls 

that are related to items classified under 

ECCN 0A606.b are classified under 

0A606.y. 

(iv) EAR99. Ground vehicles that are 

not described in paragraph (h)(4) of this 

section and that are not classified under 

either ECCN 0A606 or 9A990 are 

designated as EAR99 items, meaning 

that they are subject to the EAR, but not 

listed in any specific ECCN. 

(4) Related control. The Department of 

State, Directorate of Defense Trade 

Controls (DDTC) has export licensing 

jurisdiction for all military ground 

armed or armored vehicles and parts 

and components specific thereto as 

described in 22 CFR part 121, Category 

VII. DDTC also has export licensing 

jurisdiction for all-wheel drive vehicles 

capable of off-road use that have been 

armed or armored with articles 

described in 22 CFR part 121 or that 

have been manufactured or fitted with 

special reinforcements for mounting 

arms or other specialized military 

equipment described in 22 CFR part 

121. 

* * * * * 

PART 772—[AMENDED] 

36. The authority citation for 15 CFR 

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 

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

37. Section 772.1 is amended: 

a. By revising the definition of 

‘‘military commodity,’’ and ‘‘specially 

designed;’’ and 

b. By adding the following ten 

definitions for the terms ‘‘600 series,’’ 

‘‘accessories and attachments,’’ 

‘‘component,’’ ‘‘end item,’’ 

‘‘equipment,’’ ‘‘facilities,’’ ‘‘material,’’ 

‘‘part,’’ ‘‘serial production,’’ and 

‘‘system’’ as set forth below: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

600 series. This is a control series in 

the ‘‘xY6zz’’ format on the Commerce 

Control List (CCL) that controls items on 

the CCL that were previously controlled 

on the United States Munitions List or 

because they are covered by the 

Wassenaar Arrangement Munitions List 

(WAML). The ‘‘6’’ indicates the entry is 

a munitions entry on the CCL. The ‘‘x’’ 

represents the CCL category and ‘‘Y’’ the 

CCL category of the respective ‘‘600 

series’’ ECCNs, such as ECCN 0A606. 

The ‘‘600 series’’ constitutes the 

Commerce Munitions List within the 

larger CCL. 

* * * * * 

Accessories and attachments. These 

are associated items for any 

‘‘component,’’ ‘‘end item,’’ or ‘‘system,’’ 

and which are not necessary for their 

operation, but which enhance their 

usefulness or effectiveness. For 

example, for a riding lawnmower, 

accessories and attachments will 

include the bag to capture the cut grass, 

and a canopy to protect the operator 

from the sun and rain. 

* * * * * 

Component. This is an item that is 

useful only when used in conjunction 

with an ‘‘end item.’’ Components are 

also commonly referred to as 

assemblies. For purposes of this 

definition an assembly and a component 

are the same. There are two types of 

‘‘components’’: ‘‘Major components’’ 

and ‘‘minor components.’’ A ‘‘major 

component’’ includes any assembled 

element which forms a portion of an 

‘‘end item’’ without which the end item 

is inoperable. For example, for an 

automobile, components will include 

the engine, transmission, and battery. If 

you do not have all those items, the 

automobile will not function, or 

function as effectively. A ‘‘minor 

component’’ includes any assembled 

element of a ‘‘major component.’’ 

‘‘Components’’ consist of ‘parts.’’’ 

References in the CCL to ‘‘components’’ 

include both ‘‘major components’’ and 

‘‘minor components.’’ 

* * * * * 

End item. This is a combination of 

‘‘components,’’ ‘‘parts,’’ ‘‘accessories 

and attachments,’’ or material in the 

form of a product, system, or piece of 

equipment that is ready for its intended 

stand-alone use, such as a ship, aircraft, 

firearm, or milling machine. 

* * * * * 

Equipment. This is a set of tools, 

devices, kits, or similar items assembled 

for a specific purpose. Equipment is a 

subset of ‘‘end items.’’ 

* * * * * 

Facilities. This means a building or 

outdoor area in which people use an 

item that is built, installed, produced, or 

developed for a particular purpose. 

* * * * * 

Material. This is any list-specified 

crude or processed matter that is not 

clearly identifiable as any of the types 

of items defined in section 772.1 under 

the defined terms, ‘‘end item,’’ 

‘‘component,’’ ‘‘accessories and 

attachments,’’ ‘‘part,’’ ‘‘software,’’ 

‘‘system,’’ ‘‘equipment,’’ or ‘‘facilities.’’ 

* * * * * 

Military commodity. As used in 

§ 734.4(a)(5), Supplement No. 1 to part 

738 (footnote No. 3), § 740.2(a)(11), 

§ 740.16(a)(2), § 740.16(b)(2), 

§ 742.6(a)(3), § 744.9(a)(2), § 744.9(b), 

ECCN 0A919 and ECCNs 0A606, 0B606, 

0C606, 0D606, 0E606, and 6A003 

(Related Controls), ‘‘military 

commodity’’ or ‘‘military commodities’’ 

means an article, material or supply that 

is described on the United States 

Munitions List (22 CFR Part 121) or on 

the Munitions List that is published by 

the Wassenaar Arrangement on Export 

Controls for Conventional Arms and 

Dual-Use Goods and Technologies, but 

does not include software, technology 

and any item listed in any ECCN for 

which the last three numerals are 018 or 

any item in the ‘‘600 series.’’ 

* * * * * 

Part. This is any single unassembled 

element of a component, accessory, or 

attachment which is not normally 

subject to disassembly without the 

destruction or the impairment of design 

use. Examples include threaded 

fasteners (e.g., screws, bolts, nuts, nut 

plates, studs, inserts), other fasteners 

(e.g., clips, rivets, pins), common 

hardware (e.g., washers, spacers, 

insulators, grommets, bushings), springs 

and wire. 

* * * * * 

Serial production. A type of 

production where the ‘‘items’’ being 

produced are no longer in 

‘‘development.’’ In this type of 

production the ‘‘items’’ have passed 

production readiness testing (i.e., an 

approved, standardized design ready for 

large scale production) and are being or 

have been produced based on the 

approved, standardized design, 

including and especially on assembly 

lines. 

* * * * * 

Specially designed.— 

(a) A ‘‘specially designed’’ item, other 

than a ‘‘part’’ or ‘‘component,’’ is an 

item that is enumerated on the CCL and, 

as a result of ‘‘development,’’ has 

properties peculiarly responsible for 

achieving or exceeding the controlled 

performance levels, characteristics, or 

functions of the referenced item 

identified in the CCL. 

(b) A ‘‘specially designed’’ ‘‘part’’ or 

‘‘component’’ is a ‘‘part’’ or 

‘‘component’’ of an item ‘enumerated’ in 

a category of the CCL. 

(c) For the purposes of this definition, 

an item is not considered ‘‘specially 

designed’’ if it is separately 

‘enumerated’ in an USML subcategory 

or an ECCN that does not have 

‘‘specially designed’’ as a control 

criterion. 

(d) Items that are not so separately 

‘enumerated’ for purposes of this 

definition, are also not considered 


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‘‘specially designed’’ in any category of 

the CCL if they are: 

(1) A single, unassembled part used in 

multiple types of civil items, such as 

threaded fasteners (e.g., screws, bolts, 

nuts, nut plates, studs, inserts), other 

fasteners (e.g., clips, rivets, pins), 

common hardware (e.g., washers, 

spacers, insulators, grommets, 

bushings), springs and wire; or 

(2) An item specifically excluded 

from control on the USML or the CCL; 

or 

(3) A ‘‘part’’ or ‘‘component’’ used as 

a ‘‘part’’ or ‘‘component’’ of an enditem in ‘‘serial production’’ and not 

‘enumerated’ on the USML or CCL (i.e., 

the end item is an EAR99 item), and the 

part’s or component’s form, fit, and 

function have not been altered for use 

in another end item enumerated on the 

USML or CCL after ‘‘serial production’’ 

of the end-item not enumerated on the 

USML or CCL has begun; or 

(4) A ‘‘part’’ or ‘‘component’’ that can 

be exchanged with an EAR99 or ATonly controlled ‘‘part’’ or ‘‘component’’ 

on a one-for-one replacement basis 

without modification to the form, fit and 

function of the EAR99 or AT-only 

‘‘part’’ or ‘‘component,’’ and the EAR99 

or AT-only part’s or component’s 

function is identical to the ‘‘part’’ or 

‘‘component’’ at issue. 

Note 1 to Definition: The definition of 

‘‘specially designed’’ does not extend control 

to items simply because they could in theory 

be used with the listed item on the USML or 

CCL. 

Note 2 to Definition: This definition of 

‘‘specially designed’’ is not applicable to the 

phrase ‘‘specifically designed’’ in use 

throughout the U.S. Munitions List or to 

‘‘especially designed or prepared for’’ in use 

throughout the Nuclear Regulatory 

Commission regulations (see 10 CFR part 

110). 

Note 3 to Definition: ‘Enumerated’ means 

any item identified on either the USML or 

CCL that is controlled for more than AT-only 

reasons. For example, integrated circuits are 

identified in both the USML Category XV(d), 

ECCN 3A001.a, and 3A991. An integrated 

circuit, therefore, is a separately enumerated 

item that is not a ‘‘specially designed’’ ‘‘part’’ 

or ‘‘component’’ for purposes of this 

definition if it is within the control 

parameters of ECCN 3A001.a, which is an 

ECCN controlled for more than AT-only 

reasons. An integrated circuit is not a 

separately enumerated item if it is not within 

the control parameters of ECCN 3A001.a, but 

is within the control parameters of 3A991, 

which is controlled only for AT reasons. An 

item that falls within the technical or other 

parameters of an existing ECCN that has more 

than AT-only controls is classified under that 

ECCN unless the ECCN includes a ‘‘related 

control’’ note identifying that an additional 

control parameter needs to be assessed in a 

600 series ECCN. 

Note to Exclusion Paragraph Number 1: 

‘‘Threaded fasteners (e.g., screws, bolts, nuts, 

nut plates, studs, inserts), other fasteners 

(e.g., clips, rivets, pins), common hardware 

(e.g., washers, spacers, insulators, grommets, 

bushings), springs, and wire’’ are identified 

as representative types of items excluded 

from the definition of ‘‘specially designed’’ 

for non-enumerated items because they are 

commonly used in end items that are 

described, generally or specifically, in 

multiple USML and CCL categories. Bolts are 

in ground vehicles, planes, and ships, for 

example. For purposes of exclusion 

paragraph number 1, the part remains 

excluded even if it varies by physical 

dimensions or materials from other parts of 

the same type. A pivot block that is used to 

hold an axle assembly to a vehicle is, 

although a single unassembled item, only 

used on vehicles. Items such as pivot blocks 

are thus not excluded from ‘‘specially 

designed’’ by virtue of exclusion paragraph 

number 1, although they are not precluded 

from being excluded by another paragraph in 

the definition. 

Note to Exclusion Paragraph Number 2: 

Examples of items specifically excluded from 

control on the USML are (i) ‘‘aircraft’’ tires 

and propellers used with reciprocating 

engines identified in USML subcategory 

VIII(h) and the types of items identified as 

not subject to USML Category VIII in the 

‘‘Note’’ to that category. Examples of items 

specifically excluded from control on the 

CCL are those items that may be identified 

at the end of each of the 600 series ECCNs 

as a result of notices in response to license 

applications. 

Note to Exclusion Paragraph Number 3: 

‘‘Serial production’’ is defined in section 

772.1 as a type of production where the 

‘‘items’’ being produced are no longer in 

‘‘development.’’ In this type of production 

the ‘‘items’’ have passed production 

readiness testing (i.e., an approved, 

standardized design ready for large scale 

production) and are being or have been 

produced based on the approved, 

standardized design, including and 

especially on assembly lines. 

‘‘Development,’’ is defined in EAR section 

772.1 as being ‘‘related to all stages prior to 

serial production, such as: Design, design 

research, design analyses, design concepts, 

assembly and testing of prototypes, pilot 

production schemes, design data, process of 

transforming design data into a product, 

configuration design, integration design, 

layouts.’’ Items in ‘‘serial production’’ that 

are subsequently subject to ‘‘development’’ 

activities, such as those pertaining to quality 

improvements, cost reductions, or feature 

enhancements, remain items in ‘‘serial 

production.’’ Any new models or versions of 

such items developed from such efforts are 

in ‘‘development’’ until and unless they enter 

into ‘‘serial production.’’ 

* * * * * 

System. This is a combination of end 

items, components, parts, accessories, 

attachments, firmware or software that 

are designed, modified or adapted to 

operate together to perform a 

specialized function. 

* * * * * 

PART 774—[AMENDED] 

38. The authority citation for 15 CFR 

part 774 continues to read as follows: 

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

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

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

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

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

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

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

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

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

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

FR 50681 (August 16, 2010). 

39. In Supplement No. 1 to part 774 

(the Commerce Control List) is 

amended: 

a. By removing the product group A 

heading ‘‘SYSTEMS, EQUIPMENT AND 

COMPONENTS’’ and adding in its place 

the product group A heading ‘‘END 

ITEMS,’’ ‘‘EQUIPMENT,’’ 

‘‘ACCESSORIES AND 

ATTACHMENTS,’’ ‘‘PARTS,’’ 

‘‘COMPONENTS,’’ AND ‘‘SYSTEMS’’; 

and 

b. By adding quotes around the 

product group C heading MATERIALS. 

40. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment (and Miscellaneous Items), 

Export Control Classification Number 

(ECCN) 0A018 is amended: 

a. By revising the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section; and 

b. By removing and reserving ‘‘items’’ 

paragraph (a) in the List of Items 

Controlled section, to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

0A018 Items on the Wassenaar Munitions 

List 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: (1) See also 0A979, 

0A988, and 22 CFR 121.1 Categories I(a), 

III(b–d), and X(a). (2) See 0A606.a for 

construction equipment built to military 

specifications that was classified under 

0A108.a. 

* * * * * 

Items: 

a. [RESERVED]; 

* * * * * 

41. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment (and Miscellaneous Items), 


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ECCN 0A919 is amended by revising the 

‘‘Items’’ paragraph to read as follows: 

0A919 ‘‘Military commodities’’ as Follows 

(see List of Items Controlled) 

* * * * * 

Items: ‘‘Military commodities’’ with all of 

the following characteristics: 

a. Described on either the United States 

Munitions List (22 CFR part 121) or the 

Munitions List that is published by the 

Wassenaar Arrangement on Export Controls 

for Conventional Arms and Dual-Use Goods 

and Technologies (as set out on its Web site 

at http://www.wassenaar.org), but not any 

item listed in any Export Control 

Classification Number for which the last 

three characters are 018 or any item in the 

‘‘600 series’’; 

b. Produced outside the United States; 

c. Not subject to the International Traffic in 

Arms Regulations (22 CFR parts 120–130) for 

a reason other than presence in the United 

States; and 

d. Either of the following characteristics: 

d.1. Incorporate one or more cameras 

classified under ECCN 6A003.b.4.b; or 

d.2. Incorporate more than 10% ‘‘600 

series’’ controlled content. 

42. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment (and Miscellaneous Items), 

is amended: 

a. By adding two Export Control 

Classification Numbers (ECCNs) 0A521 

and 0A606 after ECCN 0A002 and 

before ECCN 0A918, 

b. By adding two ECCNs 0B521 and 

0B606 after ECCN 0B006 and before 

ECCN 0B986; 

c. By adding two ECCNs 0C521 and 

0C606 after ECCN 0C201 and before 

ECCN 0D001; 

d. By adding two ECCNs 0D521 and 

0D606 after ECCN 0D001 and before 

ECCN 0D999; and 

e. By adding two ECCNs 0E521 and 

0E606 after ECCN 0E001 and before 

ECCN 0E918, to read as follows; 

0A521 Any Item Subject to the EAR That is 

not Listed Elsewhere in the CCL but Which 

is Controlled for Export Because it Provides 

at Least a Significant Military or Intelligence 

Advantage to the United States or for 

Foreign Policy Reasons. 0A521 Items are 

Subject to RS1 Controls With no License 

Exception Eligibility Other Than GOV for 

U.S. Government Personnel and Agencies 

Under § 740.11(b)(2)(ii). The list of Items 

Determined To Be Classified Under ECCN 

0A521 Controls is Published in Supplement 

No. 5 to Part 774. The Policies and 

Procedures Relating to ECCN 0A521 are set 

Forth in 15 CFR 742.6(a)(7) 

0A606 Ground Vehicles, ‘‘Parts’’ and 

‘‘Components’’, as follows: 

License Requirements 

Reason for Control: NS, RS, AT, UN 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1, except 

0A606.y. 

RS applies to entire 

entry.

RS Column 1, except 

0A606.y. 

AT applies to entire 

entry.

AT Column 1. 

UN applies to entire 

entry.

Cote d’Ivoire, Democratic Republic of 

Congo, Eritrea, 

Iraq, Iran, Lebanon, 

Liberia, Libya, 

North Korea, Sierra 

Leone, Somalia, or 

Sudan, except 

0A606.y. 

License Exceptions 

LVS: $1500 for 0A606.a, .b, .c; N/A for Cote 

d’Ivoire, Democratic Republic of Congo, 

Lebanon, Liberia, Sierra Leone, or Somalia. 

GBS: N/A 

CIV: N/A 

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

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

used for any item in 0A606. Paragraph (c)(1) 

of License Exception STA (§ 740.20(c)(1)) 

may not be used for any ‘‘end item’’ in 

0A606, unless determined by BIS to be 

eligible for License Exception STA in 

accordance with § 740.20(g) (License 

Exception STA eligibility requests for ‘‘600 

series’’ end items). See § 740.20(g) for the 

procedures to follow if you wish to request 

new STA eligibility for ‘‘end items’’ under 

this ECCN 0A606 as part of an export, 

reexport or in-country (transfer) license 

application. ‘‘End items’’ under this entry 

that have already been determined to be 

eligible for License Exception STA are listed 

in Supplement No. 4 to part 774 and on the 

BIS Web site at http://www.bis.doc.gov 

* * *. 

List of Items Controlled 

Unit: Equipment in number; ‘‘parts’’ and 

‘‘components’’ in $ value 

Related Controls: (1) See 0B606 for test, 

inspection and production equipment that is 

‘‘specially designed’’ to test, inspect, 

produce, or develop commodities controlled 

by 0A606. (2) See 0C606 for material that is 

‘‘specially designed’’ for the ‘‘development,’’ 

or ‘‘production’’ of commodities controlled 

by 0A606. (3) See 0D606 for ‘‘software’’ for 

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

ground vehicles, ‘‘parts’’ and ‘‘components’’ 

controlled by 0A606. (4) See 0E606 for 

‘‘technology’’ ‘‘required’’ for the 

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

ground vehicles, ‘‘parts’’ and ‘‘components’’ 

controlled by 0A606. (5) See ECCN 7A611 for 

guidance and navigation equipment. (6) 

Items described in 22 CFR part 121, Category 

VII—Tanks and Other Military Vehicles are 

subject to the export licensing jurisdiction of 

the U.S. Department of State, Directorate of 

Defense Trade Controls. (7) See ECCN 0A919 

for foreign made ‘‘military commodities’’ that 

incorporate more than 10% U.S.-origin ‘‘600 

series’’ items. 

Related Definitions: N/A 

Items: 

a. Construction equipment built to military 

specifications, including equipment 

‘‘specially designed’’ for airborne transport; 

crew protection kits used as protective cabs; 

b. Other equipment as follows: 

b.1. Tanks manufactured in or prior to 

1955 (unless weapon is functional); 

b.2. Armored combat vehicles 

manufactured in or prior to 1955 (unless 

weapon is functional); 

b.3. Armored combat support vehicles 

manufactured in or prior to 1955; 

b.4. Armored vehicles employing armor 

that provides ballistic protection to level III 

(National Institute of Justice standard 

0108.01, September 1985) or better but do not 

meet the criteria for USML Category VII 

control (See § 770.2(h)—Interpretation 8). 

This includes unarmed all-wheel drive 

vehicles capable of off-road use which have 

been manufactured or fitted with materials to 

provide ballistic protection to level III or 

better. 

b.5. Ground transport vehicles (including 

trailers) ‘‘specially designed’’ for non-combat 

military use not controlled under USML 

Category VII); 

b.6. Military railway trains, except those 

‘‘designed or modified’’ for missile launch; 

b.7. Unarmored military recovery vehicles; 

b.8. Unarmored military amphibious 

vehicles; 

b.9. Unarmored vehicles with mounts or 

hard points for firearms of .50 Cal. or less. 

c. Air-cooled diesel engines and engine 

blocks for armored combat vehicles over 40- 

tons. 

d. Fully automatic continuously variable 

transmission for tracked combat vehicles. 

e. through w. [RESERVED] 

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

attachments’’ that are ‘‘specially designed’’ 

for a commodity subject to control in this 

ECCN or a defense article in USML Category 

VII. 

y. Specific ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ ‘‘specially 

designed’’ for a commodity subject to control 

in this ECCN or a defense article in USML 

Category VII but which have little or no 

military significance (see list of items 

controlled). 

y.1. Brake system components (discs, 

rotors, shoes, drums, springs, cylinders, 

lines, hoses); 

y.2 Alternators or generators; 

y.3. Axles; 

y.4. Batteries; 

y.5. Bearings (ball, roller, wheel); 

y.6. Blackout lights; 

y.7. Cables/cable assembles/connectors; 

y.8. Cooling system hoses; 

y.9. Filters (hydraulic, fuel, oil, air); 

y.10. Gaskets and o-rings; 

y.11. Hydraulic system hoses, fittings, 

couplings, adapters, and valves; 

y.12. Latches and hinges; 

y.13. Lighting systems, fuses and 

components; 

y.14. Pneumatic hoses, fittings, adapters, 

couplings and valves; 

y.15. Seats, seat assemblies, seat supports, 

harnesses; 

y.16. Tires, except run flat; 

y.17. Windows, except those for armored 

vehicles. 


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Note: Vehicles are considered 

manufactured after 1955 if, at any time after 

1955, any of the following changes occur: 

a. Propulsion upgrade to a formerly 

gasoline powered armored vehicle with 

either diesel or multi-fuel capability; 

b. Armor upgrade to employ reactive 

armor; 

c. Fire control upgrade with a digital 

control system; 

d. Addition of laser designator or laser 

rangefinder; 

e. Addition of autoloader or similar 

assisted loading/round selection; 

f. Increase of gun bore to larger than 90 

mm; or 

g. Conversion to unmanned operation. 

* * * * * 

0B521 Any item subject to the EAR that is 

not listed elsewhere in the CCL but 

which is controlled for export because it 

provides at least a significant military or 

intelligence advantage to the United 

States or for foreign policy reasons. 

0B521 items are subject to RS1 controls 

with no license exception eligibility 

other than GOV for U.S. Government 

personnel and agencies under 

§ 740.11(b)(2)(ii). The list of items 

determined to be classified under ECCN 

0B521 controls is published in 

Supplement No. 5 to part 774. The 

policies and procedures relating to 

ECCN 0B521 are set forth in 15 C.F.R. 

Section 742.6(a)(7). 

0B606 Test, inspection and production 

‘‘equipment’’ that is ‘‘specially 

designed’’ to test, inspect, produce, or 

develop commodities controlled by 

0A606. 

License Requirements 

Reason for Control: NS, RS, AT, UN 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1, except 

0B606.y. 

RS applies to entire 

entry.

RS Column 1, except 

0B606.y. 

AT applies to entire 

entry.

AT Column 1. 

UN applies to entire 

entry.

Cote d’Ivoire, Democratic Republic of 

Congo, Eritrea, 

Iraq, Iran, Lebanon, 

Liberia, Libya, 

North Korea, Sierra 

Leone, Somalia, or 

Sudan, except 

0B606.y. 

License Exceptions 

LVS: $1500; N/A for Cote d’Ivoire, 

Democratic Republic of Congo, Lebanon, 

Liberia, Sierra Leone, or Somalia. 

GBS: N/A 

CIV: N/A 

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

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

used for any item in 0B606. 

List of Items Controlled 

Unit: N/A 

Related Controls: (1) See 0A606 for ground 

vehicles, ‘‘parts’’ and ‘‘components.’’ (2) 

See 0C606 for material that is ‘‘specially 

designed’’ for the ‘‘development,’’ or 

‘‘production’’ of commodities controlled by 

0A606. (3) See 0D606 for ‘‘software’’ for the 

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

ground vehicles, ‘‘parts’’ and 

‘‘components’’ controlled by 0A606. (4) 

See 0E606 for ‘‘technology’’ ‘‘required’’ for 

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

of ground vehicles, ‘‘parts’’ and 

‘‘components’’ controlled by 0A606. (5) 

Items described in 22 CFR part 121, 

Category VII—Tanks and Other Military 

Vehicles are subject to the export licensing 

jurisdiction of the U.S. Department of 

State, Directorate of Defense Trade 

Controls. (6) See ECCN 0A919 for foreign 

made ‘‘military commodities’’ that 

incorporate more than 10% U.S.-origin 

‘‘600 series’’ items. 

Related Definitions: N/A 

Items: 

a. Armor plate drilling machines, other 

than radial drilling machines; 

b. Armor plate planing machines; 

c. Armor plate quenching presses; and 

d. Tank turret bearing grinding machines. 

e. through w. [RESERVED] 

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

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for a commodity subject to control 

in this ECCN or a defense article in USML 

Category VII. 

y. Specific ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ ‘‘attachments’’ ‘‘specially 

designed’’ for a commodity subject to control 

in this ECCN or a defense article in USML 

Category VII but which have little or no 

military significance (see list of items 

controlled). 

y.1. [RESERVED] 

0C521 Any item subject to the EAR that is 

not listed elsewhere in the CCL but 

which is controlled for export because it 

provides at least a significant military or 

intelligence advantage to the United 

States or for foreign policy reasons. 

0C521 items are subject to RS1 controls 

with no license exception eligibility 

other than GOV for U.S. Government 

personnel and agencies under 

§ 740.11(b)(2)(ii). The list of items 

determined to be classified under ECCN 

0C521 controls is published in 

Supplement No. 5 to part 774. The 

policies and procedures relating to 

ECCN 0C521 are set forth in 15 CFR 

742.6(a)(7). 

0C606 Material that is ‘‘specially designed’’ 

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

of commodities controlled by 0A606. 

License Requirements 

Reason for Control: NS, RS, AT, UN 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1. 

RS applies to entire 

entry.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

Control(s) Country chart 

UN applies to entire 

entry.

Cote d’Ivoire, Democratic Republic of 

Congo, Eritrea, 

Iraq, Iran, Lebanon, 

Liberia, Libya, 

North Korea, Sierra 

Leone, Somalia, or 

Sudan. 

License Exceptions 

LVS: $1500; N/A for Cote d’Ivoire, 

Democratic Republic of Congo, Lebanon, 

Liberia, Sierra Leone, or Somalia. 

GBS: N/A 

CIV: N/A 

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

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

used for any item in 0C606. 

List of Items Controlled 

Unit: N/A 

Related Controls: (1) See 0A606 for ground 

vehicles, ‘‘parts’’ and ‘‘components.’’ (2) See 

0B606 for test, inspection and production 

equipment that is ‘‘specially designed’’ to 

test, inspect, produce, or develop 

commodities controlled by 0A606. (3) See 

0D606 for ‘‘software’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of ground vehicles, 

‘‘parts’’ and ‘‘components’’ controlled by 

0A606. (4) See 0E606 for ‘‘technology’’ 

‘‘required’’ for the ‘‘development’’, 

‘‘production’’ or ‘‘use’’ of ground vehicles, 

‘‘parts’’ and ‘‘components’’ controlled by 

0A606. (5) Items described in 22 CFR part 

121, Category VII—Tanks and Other Military 

Vehicles are subject to the export licensing 

jurisdiction of the U.S. Department of State, 

Directorate of Defense Trade Controls. (6) See 

ECCN 0A919 for foreign made ‘‘military 

commodities’’ that incorporate more than 

10% U.S.-origin ‘‘600 series’’ items. 

Related Definitions: N/A 

Items: The list of items controlled is 

contained in the ECCN heading. 

* * * * * 

0D521 Any item subject to the EAR that is 

not listed elsewhere in the CCL but 

which is controlled for export because it 

provides at least a significant military or 

intelligence advantage to the United 

States or for foreign policy reasons. 

0D521 items are subject to RS1 controls 

with no license exception eligibility 

other than GOV for U.S. Government 

personnel and agencies under 

§ 740.11(b)(2)(ii). The list of items 

determined to be classified under ECCN 

0D521 controls is published in 

Supplement No. 5 to part 774. The 

policies and procedures relating to 

ECCN 0D521 are set forth in 15 CFR 

742.6(a)(7). 

0D606 ‘‘Software’’ ‘‘specially designed’’ for 

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

‘‘use’’ of ‘‘equipment,’’ ‘‘parts’’ and 

‘‘components’’ controlled by 0A606. 


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41984 Federal Register / Vol. 76, No. 136 / Friday, July 15, 2011 / Proposed Rules 

License Requirements 

Reason for Control: NS, RS, AT, UN 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1. 

RS applies to entire 

entry.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

UN applies to entire 

entry.

Cote d’Ivoire, Democratic Republic of 

Congo, Eritrea, 

Iraq, Iran, Lebanon, 

Liberia, Libya, 

North Korea, Sierra 

Leone, Somalia, or 

Sudan. 

License Exceptions 

CIV: N/A 

TSR: N/A 

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

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

used for any software in 0D606. 

List of Items Controlled 

Unit: N/A 

Related Controls: (1) See 0A606 for ground 

vehicles, ‘‘parts’’ and ‘‘components.’’ (2) See 

0B606 for test, inspection and production 

equipment that is ‘‘specially designed’’ to 

test, inspect, produce, or develop 

commodities controlled by 0A606. (3) See 

0C606 for material that is ‘‘specially 

designed’’ for the ‘‘development,’’ or 

‘‘production’’ of commodities controlled by 

0A606. (4) See 0E606 for ‘‘technology’’ 

‘‘required’’ for the ‘‘development,’’ 

‘‘production’’ or ‘‘use’’ of ground vehicles, 

‘‘parts’’ and ‘‘components’’ controlled by 

0A606. (5) Items described in 22 CFR part 

121, Category VII—Tanks and Other Military 

Vehicles are subject to the export licensing 

jurisdiction of the U.S. Department of State, 

Directorate of Defense Trade Controls. (6) See 

ECCN 0A919 for foreign made ‘‘military 

commodities’’ that incorporate more than 

10% U.S.-origin ‘‘600 series’’ items. 

Related Definitions: N/A 

Items: The list of items controlled is 

contained in the ECCN heading. 

* * * * * 

0E521 Any item subject to the EAR that is 

not listed elsewhere in the CCL But 

which is controlled for export because it 

provides at least a significant military or 

intelligence advantage to the United 

States or for foreign policy reasons. 

0E521 items are subject to RS1 controls 

with no license exception eligibility 

other than GOV for U.S. Government 

personnel and agencies under 

§ 740.11(b)(2)(ii). The list of items 

determined to be classified under ECCN 

0E521 controls is published in 

Supplement No. 5 to part 774. The 

policies and procedures relating to 

ECCN 0E521 are set forth in 15 CFR 

742.6(a)(7). 

0E606 ‘‘Technology’’ ‘‘required’’ for the 

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

of ‘‘equipment,’’ ‘‘parts’’ and 

‘‘components’’ controlled by 0A606. 

License Requirements 

Reason for Control: NS, RS, AT, UN 

Control(s) Country chart 

NS applies to entire 

entry.

NS Column 1. 

RS applies to entire 

entry.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

UN applies to entire 

entry.

Cote d’Ivoire, Democratic Republic of 

Congo, Eritrea, 

Iraq, Iran, Lebanon, 

Liberia, Libya, 

North Korea, Sierra 

Leone, Somalia, or 

Sudan. 

License Exceptions 

CIV: N/A 

TSR: N/A 

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

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

used for any technology in 0D606. 

List of Items Controlled 

Unit: N/A 

Related Controls: (1) See 0A606 for ground 

vehicles, ‘‘parts’’ and ‘‘components’’. (2) See 

0B606 for test, inspection and production 

equipment that is ‘‘specially designed’’ to 

test, inspect, produce, or develop 

commodities controlled by 0A606. (3) See 

0C606 for material that is ‘‘specially 

designed’’ for the ‘‘development,’’ or 

‘‘production’’ of commodities controlled by 

0A606. (4) See 0D606 for ‘‘software’’ for the 

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

ground vehicles, ‘‘parts’’ and ‘‘components’’ 

controlled by 0A606. (5) Items described in 

22 CFR part 121, Category VII—Tanks are 

subject to the export licensing jurisdiction of 

the U.S. Department of State, Directorate of 

Defense Trade Controls. (6) See ECCN 0A919 

for foreign made ‘‘military commodities’’ that 

incorporate more than 10% U.S.-origin ‘‘600 

series’’ items. 

Related Definitions: N/A 

Items: The list of items controlled is 

contained in the ECCN heading. 

43. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9A018 is amended: 

a. By revising the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section; and 

b. By removing and reserving ‘‘items’’ 

paragraph (b) in the List of Items 

Controlled section, to read as follows: 

9A018 Equipment on the Wassenaar 

Arrangement Munitions List. 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: (1) Parachute systems 

designed for use in dropping military 

equipment, braking military aircraft, slowing 

spacecraft descent, or retarding weapons 

delivery; instrument flight trainers for 

combat simulation; military ground armed or 

armored vehicles and parts and components 

specific thereto described in 22 CFR part 121, 

Category VII; and all-wheel drive vehicles 

capable of off-road use that have been armed 

or armored with articles described in 22 CFR 

part 121, Category XIII (See § 770.2(h)— 

Interpretation 8) are all subject to the export 

licensing jurisdiction of the U.S. Department 

of State, Directorate of Defense Trade 

Controls. 

(2) See 0A606.b.4 for ground transport 

vehicles and unarmed all-wheel drive 

vehicles that were classified under 9A018.b. 

* * * * * 

Items: 

* * * * * 

b. [RESERVED]. 

* * * * * 

44. Add Supplement No. 4 to Part 

774, to read as follows: 

SUPPLEMENT NO. 4 TO PART 774— 

LISTING OF LICENSE EXCEPTION 

STA ELIGIBILITY DETERMINATIONS 

PURSUANT TO § 740.20(g) FOR ‘‘600 

SERIES’’ ‘‘END ITEMS’’ ELIGIBLE FOR 

LICENSE EXCEPTION STA UNDER 

§ 740.20(c)(1) 

‘‘600 series’’ ‘‘end items’’ identifier by ECCN, ECCN ‘‘items’’ paragraph or other end item descriptors.

Note 1: For the other end item descriptors, the descriptions of these 

munitions end items must match, (e.g., by model number or other 

equally specific descriptor), the descriptions of the end items in 

the RWA notices. The description does not necessarily need to be 

limited to a particular manufacturer.

Date of initial approval of STA eligibility request (i.e., the date on 

which License Exception STA first may be used, provided the 

applicable terms of License Exception STA are met for the transaction). 

Note 2: Other end item descriptors (such as model number) will 

only be used in combination with the ECCN level identifier. 


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Federal Register / Vol. 76, No. 136 / Friday, July 15, 2011 / Proposed Rules 41985 

45. Add Supplement No. 5 to Part 

774, to read as follows: 

SUPPLEMENT NO. 5 TO PART 774— 

ITEMS CLASSIFIED UNDER ECCNS 

0A521, 0B521, 0C521, 0D521, AND 

0E521 

The following table lists items subject to 

the EAR that are not listed elsewhere in the 

CCL, but which the Department of 

Commerce, with the concurrence of the 

Departments of Defense and State, has 

determined warrant control for export 

because the items provide at least a 

significant military or intelligence advantage 

to the United States or for foreign policy 

reasons. 

Item descriptor ...................................................

Note: The description must match by model 

number or a broader descriptor that does not 

necessarily need to be company specific.

Date of initial or subsequent BIS classification Date when the item will be designated 

EAR99, unless reclassified in another 

ECCN or the 0Y521 classification is reissued. 

Dated: July 12, 2011. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–17846 Filed 7–12–11; 4:15 pm] 

BILLING CODE 3510–33–P 


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