Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 68675 

contact the FAA’s Office of Rulemaking, 

(202) 267–9677, for a copy of Advisory 

Circular No. 11–2A, Notice of Proposed 

Rulemaking Distribution System, which 

describes the application procedure. 

History 

Docket No. FAA–2011–0010, Airspace 

Docket No. 11–AAL–1 published on 

April 28, 2011 (76 FR 23687), that 

amends all Alaska Federal Airways 

affected by the relocation of the 

Anchorage VOR navigation aid, 

subsequently had the effective date 

delayed until further notice (76 FR 

35097; June 16, 2011). The FAA then 

determined that V–320 and V–440 did 

not have satisfactory signal reception 

coverage in the vicinity of Anchorage, 

AK, and removed them from the rule, to 

be amended in a future rulemaking (76 

FR 65106; October 20, 2011). This 

action would amend the above airways 

as the signal reception of the relocated 

navigation aid is satisfactory to meet 

Minimum Enroute Altitude (MEA) 

requirements. 

The Proposal 

The FAA is proposing an amendment 

to Title 14 Code of Federal Regulations 

(14 CFR) part 71 to amend Alaska 

Federal airways V–320 and V–440. The 

airway descriptions would reflect the 

Anchorage VOR relocation from Fire 

Island, AK, to Ted Stevens Anchorage 

International Airport, Anchorage, AK. 

Additionally, the proposed descriptions 

incorporate new navigation aid radials 

to describe airway intersections 

necessary to retain a 10,000 feet MEA 

currently used by air traffic control for 

instrument flight rules aircraft in the 

vicinity of Anchorage, AK. 

The FAA has determined that this 

proposed regulation only involves an 

established body of technical 

regulations for which frequent and 

routine amendments are necessary to 

keep them operationally current. 

Therefore, this proposed regulation: (1) 

Is not a ‘‘significant regulatory action’’ 

under Executive Order 12866; (2) is not 

a ‘‘significant rule’’ under Department of 

Transportation (DOT) Regulatory 

Policies and Procedures (44 FR 11034; 

February 26, 1979); and (3) does not 

warrant preparation of a regulatory 

evaluation as the anticipated impact is 

so minimal. Since this is a routine 

matter that will only affect air traffic 

procedures and air navigation, it is 

certified that this proposed rule, when 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart I, Section 

40103. Under that section, the FAA is 

charged with prescribing regulations to 

assign the use of the airspace necessary 

to ensure the safety of aircraft and the 

efficient use of airspace. This regulation 

is within the scope of that authority as 

it amends Federal airways in Alaska. 

Alaskan VOR Federal Airways are 

published in paragraph 6010(b) of FAA 

Order 7400.9V, dated August 9, 2011, 

and effective September 15, 2011, which 

is incorporated by reference in 14 CFR 

71.1. The domestic VOR Federal 

Airways listed in this document will be 

published subsequently in the Order. 

Environmental Review 

This proposal will be subject to an 

environmental analysis in accordance 

with FAA Order 1050.1E, 

‘‘Environmental Impacts: Policies and 

Procedures,’’ prior to any FAA final 

regulatory action. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 71 as 

follows: 

PART 71—DESIGNATION OF CLASS A, 

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

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

1. The authority citation for part 71 

continues to read as follows: 

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

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

1963 Comp., p. 389. 

§ 71.1 [Amended] 

2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9V, 

Airspace Designations and Reporting 

Points, dated August 9, 2011, and 

effective September 15, 2011, is 

amended as follows: 

Paragraph 6010—VOR Federal airways. 

b—Alaskan VOR Federal airways 

* * * * * 

V–320 [Amended] 

From McGrath, AK; INT McGrath 121°(T)/ 

102°(M) and Kenai, AK 350°(T)/331°(M) 

radials; INT Kenai 350°(T)/331°(M) and 

Anchorage, AK 291°(T)/272°(M) radials; 

Anchorage; INT Anchorage 147°(T)/128°(M) 

and Johnstone Point, AK, 271°(T)/244°(M) 

radials; to Johnstone Point. 

* * * * * 

V–440 [Amended] 

From Nome, AK; Unalakleet, AK; McGrath, 

AK; Anchorage, AK; INT Anchorage 147°(T)/ 

128°(M) and Middleton Island, AK 309°(T)/ 

288°(M) radials; Middleton Island; Yakutat, 

AK; Biorka Island, AK; to Sandspit, BC. The 

airspace within Canada is excluded. 

Issued in Washington, DC, on October 24, 

2011. 

Gary A. Norek, 

Acting Manager, Airspace, Regulation and 

ATC Procedure Group. 

[FR Doc. 2011–28614 Filed 11–4–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 738, 740, 742, 770, 772 

and 774 

[Docket No. 110824536–1499–01] 

RIN 0694–AF36 

Revisions to the Export Administration 

Regulations (EAR): Control of Aircraft 

and Related Items the President 

Determines No Longer Warrant Control 

Under the United States Munitions List 

(USML) 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule describes 

how articles the President determines 

no longer warrant control under 

Category VIII (aircraft and related items) 

of the United States Munitions List 

(USML) would be controlled under the 

Commerce Control List (CCL) in new 

Export Control Classification Numbers 

(ECCNs) 9A610, 9B610, 9C610, 9D610, 

and 9E610. In addition, this proposed 

rule would control military aircraft and 

related items now controlled under 

ECCNs 9A018, 9D018 and 9E018 under 

new ECCNs 9A610, 9D610 and 9E610. 

This proposed rule also addresses 

license exception availability for items 

controlled by the five new ECCNs that 

would be created. 

This is the second in a planned series 

of proposed rules describing how 

various types of articles the President 

determines, as part of the 

Administration’s Export Control Reform 

Initiative, no longer warrant USML 

control, would be controlled on the CCL 

and by the EAR. This proposed rule is 

being published in conjunction with a 


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68676 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 

proposed rule of the Department of 

State, Directorate of Defense Trade 

Controls, which would amend the list of 

articles controlled by USML Category 

VIII. 

In addition, this proposed rule would 

modify aspects of the Bureau of Industry 

Security’s (BIS) July 15, 2011 proposed 

rule by adding cross references to 

ECCNs 9A018, 9D018 and 9E018; by 

adding provisions relating to License 

Exception Strategic Trade Authorization 

(STA) eligibility to clarify that its scope 

extends to the United States 

Government, to any person in the 

United States, and to the 

‘‘development’’ or ‘‘production’’ of 

items; and by including a general policy 

of denial for 600 series items for 

destinations that are subject to a United 

States arms embargo under the regional 

stability reasons for control. 

DATES: Comments must be received by 

December 22, 2011. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. The identification 

number for this rulemaking is BIS– 

2011–0033. 

• By email directly to 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF36 in the subject line. 

• By mail or delivery to Regulatory 

Policy Division, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Room 2099B, 14th Street and 

Pennsylvania Avenue NW., Washington, 

DC 20230. Refer to RIN 0694–AF36. 

FOR FURTHER INFORMATION CONTACT: 

Gene Christiansen, Office of National 

Security and Information Technology 

Controls, tel. (202) 482–2984, email 

gene.christiansen@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On July 15, 2011, as part of the 

Administration’s ongoing Export 

Control Reform Initiative, BIS published 

a proposed rule (76 FR 41958) (‘‘the July 

15 proposed rule’’) that set forth a 

framework for how articles the 

President determines, in accordance 

with section 38(f) of the Arms Export 

Control Act (AECA) (22 U.S.C. 2778(f)), 

would no longer warrant control on the 

United States Munitions List (USML) 

instead would be controlled on the 

Commerce Control List (CCL). With that 

proposed rule, BIS also described its 

proposal for how military vehicles and 

related articles in USML Category VII 

that no longer warrant control under the 

USML would be controlled on the CCL. 

Following the structure of the July 15 

proposed rule, this proposed rule 

describes BIS’s proposal for how a 

second group of items—various military 

aircraft and related articles that are 

controlled by USML Category VIII— 

would be controlled on the CCL. The 

proposed changes described in this 

proposed rule and the State 

Department’s proposed amendment to 

Category VIII of the USML are based on 

a review of Category VIII by the Defense 

Department, which worked with the 

Departments of State and Commerce in 

preparing the proposed amendments. 

The review was focused on identifying 

the types of articles that are now 

controlled by USML Category VIII that 

are either (i) Inherently military and 

otherwise warrant control on the USML 

or (ii) if it is a type common to civil 

aircraft applications, possess parameters 

or characteristics that provide a critical 

military or intelligence advantage to the 

United States, and that are almost 

exclusively available from the United 

States. If an article satisfied one or both 

of those criteria, the article remained on 

the USML. If an article did not satisfy 

either standard but was nonetheless a 

type of article that is, as a result of 

differences in form and fit, ‘‘specially 

designed’’ for military applications, 

then it was identified in the new ECCNs 

proposed in this notice. The licensing 

policies and other EAR-specific controls 

for such items also described in this 

notice would enhance national security 

by (i) Allowing for greater 

interoperability with our NATO and 

other allies while still maintaining and 

expanding robust controls and, in some 

cases, prohibitions on exports or 

reexports to other countries and for 

proscribed end users and end uses; (ii) 

enhancing our defense industrial base 

by, for example, reducing the current 

incentives for foreign companies to 

design out or avoid U.S.-origin ITARcontrolled content, particularly with 

respect to generic, unspecified parts and 

components; and (iii) permitting the 

U.S. Government to focus its resources 

on controlling, monitoring, 

investigating, analyzing, and, if need be, 

prohibiting exports and reexports of 

more significant items to destinations, 

end uses, and end users of greater 

concern than our NATO allies and other 

multi-regime partners. 

Pursuant to section 38(f) of the AECA, 

the President shall review the USML ‘‘to 

determine what items, if any, no longer 

warrant export controls under’’ the 

AECA. The President must report the 

results of the review to Congress and 

wait 30 days before removing any such 

items from the USML. The report must 

‘‘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). This proposed rule describes 

how certain military aircraft and related 

articles in USML Category VIII would be 

controlled by the EAR and its CCL if the 

President determines that the articles no 

longer warrant control on the USML. 

In the July 15 proposed rule, BIS 

proposed creating a series of new 

ECCNs to control items that would be 

moved from the USML to the CCL, or 

that are items from the Wassenaar 

Arrangement on Export Controls for 

Conventional Arms and Dual Use Goods 

and Technologies Munitions List 

(Wassenaar Arrangement Munitions List 

or WAML) that are already controlled 

elsewhere on the CCL. The proposed 

rule referred to this series as the ‘‘600 

series’’ because the third character in 

each of the new ECCNs would be a ‘‘6.’’ 

The first two characters of the 600 series 

ECCNs serve the same function as any 

other ECCN as described in § 738.2 of 

the EAR. The first character is a digit in 

the range 0 through 9 that identifies the 

Category on the CCL in which the ECCN 

is located. The second character is a 

letter in the range A through E that 

identifies the product group within a 

CCL Category. In the 600 series, the 

third character is the number 6. With 

few exceptions, the final two characters 

identify the WAML category that covers 

items that are the same or similar to 

items in a particular 600 series ECCN. 

BIS will publish additional Federal 

Register notices containing proposed 

amendments to the CCL that will 

describe proposed controls for 

additional categories of articles the 

President determines no longer warrant 

control under the USML. The State 

Department will publish concurrently 

proposed amendments to the USML that 

correspond to the BIS notices. BIS will 

also publish proposed rules to further 

align the CCL with the WAML and the 

Missile Technology Control Regime 

Equipment, Software and Technology 

Annex. 

Modifications to Provisions in the July 

15 Proposed Rule 

In addition to the proposals 

mentioned above, this proposed rule 

would make the following modifications 

to the July 15 proposed rule. 

• Additions to proposed paragraph 

(a)(13) in § 740.2; 

• Changes to the proposed Note to 

paragraph (c)(1) in § 740.20; 

• Changes to ECCNs 9A018, 9D018 

and 9E018; 

• Addition of new Category 9 600 

series ECCNs to § 742.6(a)(1); and 

• Changes in eligible users for 600 

Series under License Exception STA in 

§ 740.2(a)(13). 


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A complete discussion of these 

modifications is described in the section 

‘‘Scope of this Proposed Rule.’’ BIS will 

consider comments on the original 

proposals only for the specific 

paragraph, note, and ECCNs referenced 

above, and only in the context of the 

proposed rule’s modifications to them. 

Scope of This Proposed Rule 

This proposed rule would create five 

new 600 series ECCNs in CCL Category 

9—9A610, 9B610, 9C610, 9D610, and 

9E610—that would control articles the 

President determines no longer warrant 

control under USML Category VIII. 

Consistent with the regulatory construct 

identified in the July 15 proposed rule, 

this rule also would move items 

currently classified under ECCNs 

9A018, 9D018, and 9E018 to the new 

ECCNs. As part of the proposed 

changes, these three 018 ECCNs would 

cross-reference the new classifications 

in the 600 series. As noted in the July 

15 proposed rule, moving items from 

018 ECCNs to the appropriate 600 series 

ECCNs would consolidate WAML and 

formerly USML items into one series of 

ECCNs. 

The rule would also create a new 

Supplement No. 4 to part 740 that 

would prohibit the use of License 

Exceptions STA or GOV to export or 

reexport, except to U.S. government 

agencies or personnel, ECCN 9D610 

software and ECCN 9E610 technology 

(other than ‘‘build-to-print technology’’) 

for the production of specific types of 

parts and components classified under 

ECCN 9A610.x. 

License Exception STA under 

§ 740.20(c)(1) generally would be 

available for eligible end items (as 

described in § 740.20(g) of the July 15 

proposed rule) and all other 600 series 

items if, at the time of export, reexport 

or transfer (in-country) the item is 

destined (i) For ultimate end use by the 

armed forces, police, paramilitary, law 

enforcement, customs, correctional, fire, 

and search and rescue agencies of a 

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

countries (the ‘‘STA–36’’) or of the 

United States Government; or (ii) for the 

‘‘production’’ or ‘‘development’’ of an 

item for ultimate end use by any of 

those foreign government agencies in 

any of the thirty-six § 740.20(c)(1) 

countries, by the United States 

Government, or by any person in the 

United States. This condition means 

that exports and reexports to nongovernmental end users in one of the 

STA–36 countries under STA would be 

permissible so long as the item at issue 

would ultimately be provided to, or for 

the production or development of an 

item to be provided to and for end use 

by, any of the foregoing agencies of a 

government of a STA–36 country, the 

United States Government, or any 

person in the United States. This 

eligibility under License Exception STA 

is proposed because the U.S. 

Government recognizes that there would 

be a significant volume of desirable 

trade between and among private 

companies in the STA–36 countries 

regarding ‘‘600 series’’ end items that 

would ultimately be for use by one of 

the foregoing government agencies of an 

STA–36 country, the United States 

Government, and manufacturers in the 

United States. This proposal protects 

U.S. export control interests while at the 

same time facilitating permissible 

exports, reexports, and transfers (incountry) with the governments of the 

STA–36 countries and the United 

States. BIS particularly welcomes 

comments on the types of government 

agencies that would be eligible to 

ultimately receive items through this 

license exception. If, for example, there 

are types of agencies or persons that 

have been omitted from this list but that 

commenters believe should be included, 

commenters should provide BIS with 

this information, including specific 

examples of such agencies or persons. 

The proposed changes are discussed 

in more detail below. 

New Category 9 600 Series ECCNs 

Certain military aircraft and related 

articles the President determines no 

longer warrant control in USML 

Category VIII would be controlled under 

proposed new ECCNs 9A610, 9B610, 

9C610, 9D610, and 9E610. These new 

ECCNs follow the 600 series construct 

identified in the July 15 proposed rule. 

Paragraphs .a through .k of ECCN 

9A610 would consist of ‘‘end items,’’ as 

that term was defined in the July 15 

proposed rule, and some types of related 

parts, components, accessories, 

attachments, equipment, and systems. 

Paragraphs .b, .c, .d, and .e would be 

reserved to make paragraphs .f through 

.i align with paragraphs on the WAML 

covering similar items. Paragraphs .l, 

.m, and .n would control Unmanned 

Aerial Vehicle (UAV)-related items that 

are not identified on the USML or the 

WAML, but which are identified on the 

Missile Technology Control Regime 

(MTCR) Equipment, Software and 

Technology Annex and which are 

proposed to be subject to the MT 

Column 1 reason for control. Paragraphs 

.o through .w would be reserved for 

possible future use. Paragraph .x would 

consist of parts, components, 

accessories and attachments (including 

certain unfinished products that have 

reached a stage in manufacturing where 

they are clearly identifiable as 

commodities controlled by paragraph .x) 

that are ‘‘specially designed’’ for a 

commodity in paragraphs .a through .k 

or a defense article in USML Category 

VIII. Paragraph .y would consist of 25 

specific types of commodities that, if 

specially designed for a commodity 

subject to control in this 9A610 or a 

defense article in USML Category VIII, 

warrant less strict controls because they 

have little or no military significance. 

Commodities listed in paragraph .y 

would be controlled for antiterrorism 

(AT Column 1) reasons, which imposes 

a license requirement for five countries 

and, in accordance with the July 15 

proposed rule, if destined for a military 

end use to the People’s Republic of 

China, as described in § 744.21. 

This proposed rule does not add 

aircraft gas turbine engines to the 

proposed new ECCN 9A610. Instead, the 

Administration plans to issue a 

proposed rule later that would describe 

the U.S. Government’s controls on gas 

turbine engines and related items for 

military aircraft, ships, and vehicles, 

which is currently anticipated to be new 

ECCN 9A619. Although this numbering 

deviates slightly from the WAML 

numbering approach, BIS believes that 

it would be more efficient to list all 600 

series controls for gas turbine engines 

and related items in one ECCN. The 

anticipated new ECCN will correspond 

to a new USML Category XIX that the 

State Department would propose 

creating to control USML-controlled gas 

turbine engines and related articles. 

When BIS publishes the proposed rule 

to address gas turbine engines and 

related items for military aircraft, 

missiles, ships, and vehicles, cross 

references to the proposed new ECCN 

would be added to the new ECCNs 

proposed by this rule. 

ECCN 9B610.a would consist of test, 

inspection, and production equipment 

specially designed for the development 

or production of aircraft and related 

commodities and articles controlled by 

ECCN 9A610 or USML Category VIII. 

ECCN 9B610.b would consist of 

environmental test facilities designed or 

modified for military aircraft and related 

commodities. These new ECCN 

paragraphs would also implement 

WAML Category 18, which applies to 

production equipment and components 

for items on the WAML generally, with 

respect to production equipment for 

military aircraft, and environmental test 

facilities for such aircraft and related 

commodities. ECCN 9B610.c would 

implement a Missile Technology 

Control Regime control on production 

facilities specially designed for certain 


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types of Unmanned Aerial Vehicles or 

drones. 

ECCN 9C610 would consist of 

materials specially designed for aircraft 

and related commodities controlled by 

ECCN 9A610 that are not specified 

elsewhere on the CCL, such as in CCL 

Category 1, or on the USML. USML 

subcategory XIII(f) would continue to 

control structural materials ‘‘specifically 

designed, developed, configured, 

modified, or adapted for defense 

articles,’’ such as aircraft controlled by 

USML subcategory VIII(a). The State 

Department plans to publish a proposed 

revision to XIII(f) that would make it a 

more positive list of the structural 

materials that are controlled by USML 

XIII(f). When that occurs, BIS will 

publish a corresponding proposed 

revision to ECCN 9C610 so that it 

controls such items specially designed 

for ECCN 9A610 items and USML 

Category VIII items that are not 

positively listed in any revised USML 

XIII(f). 

ECCN 9D610 would consist of 

software specially designed for 

commodities in 9A610, 9B610, or 

9C610. ECCN 9D610 would also contain 

a ‘‘Note to License Exceptions Section’’ 

referring readers to the proposed 

Supplement No. 4 to part 740, which 

would limit the use of License 

Exceptions GOV and STA for ECCN 

9D610 software for the production or 

development of 15 types of parts and 

components. 

ECCN 9E610 would consist of 

technology that is required commodities 

in 9A610, 9B610, 9C610, or software 

9D610. ECCN 9E610 would also contain 

a ‘‘Note to License Exceptions Section’’ 

referring to proposed Supplement No. 4 

to part 740, discussed below, which 

would limit the use of License 

Exceptions GOV and STA for ECCN 

9E610 technology (other than ‘‘build-toprint technology’’) for the production of 

15 types of ECCN 9A610.x parts and 

components. 

ECCNs 9A610, 9B610, 9C610, 9D610, 

and 9E610 would each have a special 

paragraph designated ‘‘.y.99’’ to cover 

items that would otherwise fall within 

the scope of one of the ECCNs because, 

for example, they were ‘‘specially 

designed’’ for a military use, but which 

(i) Had been previously determined by 

the Department of State to be subject to 

the EAR and (ii) were not listed on the 

CCL. Items in these .y.99 paragraphs 

would be subject to antiterrorism 

controls. 

Items currently classified under ECCN 

9A018 paragraphs .a, .c, .d, .e and .f 

would be moved to ECCN 9A610. In 

conjunction with the establishment of 

the new ECCN 9X610 entries and 

consistent with the July 15 proposed 

rule’s statement that 018 entries would 

remain in the CCL for a time, but only 

for cross-reference purposes, this rule 

would amend ECCNs 9A018, 9D018, 

and 9E018 to be solely cross references 

to the new 600 series ECCNs that cover 

the items currently in those 018 ECCNs. 

ECCN 9A018 would refer to ECCN 

9A610 for aircraft related commodities 

(i.e., for items currently classified under 

ECCN 9A018 paragraphs .a, .c, .d, .e, 

and .f). Similarly, for all items other 

than those applying to ground vehicles, 

ECCN 9D018 would refer to ECCN 

9D610 for software, and ECCN 9E018 

would refer to ECCN 9E610 for 

technology. 

This proposed rule would remove 

§ 770.2(i) ‘‘Interpretation 9 Civil aircraft 

and Civil aircraft equipment (including 

parts, accessories, attachments, 

components and related training 

equipment).’’ That section explains the 

licensing authorities of the Departments 

of State and Commerce with respect to 

aircraft and related items. It would no 

longer be needed given the text of 

proposed ECCN 9A610. 

In the July 15 proposed rule, BIS 

proposed moving items classified under 

ECCN 9A018.b (certain ground vehicles) 

to newly proposed ECCN 0A606.b.4. 

With that rule, BIS identified a 

corresponding proposed amendment to 

ECCN 9A018 that cross-referenced 

ECCN 0A606.b.4 for former ECCN 

9A018.b items. This rule proposes to 

further amend ECCN 9A018, 

maintaining the proposed reference to 

ECCN 0A606.b.4 for items currently 

classified under ECCN 9A018.b and 

cross-referencing ECCN 9A610 for all 

other items currently classified under 

ECCN 9A018 (i.e., items classified under 

ECCN 9A018.a, .c, .d, .e and .f). 

The July 15 proposed rule indicated 

that software and technology applying 

to ground vehicle-related commodities, 

currently classified under ECCNs 9D018 

and 9E018, would be classified under 

newly proposed ECCNs 0D606 and 

0E606. However, the July 15 proposed 

rule did not propose cross-referencing 

language to be included in ECCNs 

9D018 and 9E018. As noted above, BIS 

is now proposing amendments to 

ECCNs 9D018 and 9E018 to crossreference ECCNs 9D610 and 9E610, for 

software and technology applying to 

those classified under ECCN 9A018 

paragraphs .a, .c, .d, .e and .f. In 

conjunction with this proposal, BIS is 

also proposing amendments to ECCNs 

9D018 and 9E018 that reference ECCNs 

0D606 and 0E606 for software and 

technology applying to those items 

classified under ECCN 9A018.b. 

License Exception Restrictions 

Certain software and technology 

related to parts and components covered 

by .x items paragraphs of 600 series 

ECCNs warrant more restrictive license 

exception applicability than other 

software and technology currently on 

the CCL. This rule proposes creating a 

new Supplement No. 4 to Part 740 (600 

Series Items Subject to Limits Regarding 

License Exceptions GOV and STA) that 

would identify 600 series items that 

may not be exported, reexported, or 

transferred (in-country) pursuant to 

License Exceptions STA (§ 740.20 of the 

EAR) or GOV (§ 740.11 of the EAR). The 

supplement would be structured to list 

by CCL category the items for which 

license exception applicability is 

limited. 

New Supplement No. 4 to part 740 

would list 15 types of parts and 

components that would be classified 

under new ECCN 9A610.x and would 

state that License Exception STA 

(§ 740.20 of the EAR) may not be used 

to export, reexport, or transfer (incountry) any software classified under 

ECCN 9D610 or technology classified 

under ECCN 9E610—other than ‘‘buildto-print technology’’—for the 

production or development of any types 

of the listed ECCN 9A610.x parts and 

components. Further, the supplement 

would state that License Exception 

GOV, other than the paragraphs that 

authorize shipments to U.S. government 

agencies for official use or U.S. 

government personnel for personal use 

or official use (§ 740.11(b)(2)(i) and (ii) 

of the EAR), is not available for the 

export or reexport of software and 

technology (other than ‘‘build-to-print 

technology’’) for the production or 

development of the ECCN 9A610.x parts 

and components listed in the 

supplement. 

A new note to § 740.20(c)(1) would be 

added, and § 740.2(a)(13) would be 

clarified regarding the License 

Exception STA eligibility of end items 

and all other 600 series items. In the 

July 15 proposed rule, the export of a 

600 series item is eligible for License 

Exception STA if, at the time of export, 

reexport or transfer (in-country), the 

item is destined 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. This 

proposed rule would make 600 series 

items eligible for License Exception 

STA for such uses and also when 

exported, reexported, or transferred for 

the production or development of an 

item for ultimate end use by a STA–36 


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country government agency, by the 

United States Government, or by a 

person in the United States. In addition 

this proposed rule would replace the 

phrase ‘‘customs and border protection’’ 

with the phrase ‘‘customs’’ because BIS 

believes that the latter more accurately 

describes the practice of most 

governments. This clarification would 

make no change to the STA restrictions 

in § 740.20(b)(2), including the 

restriction that prohibits use of STA for 

missile technology (MT) controlled 

items. 

Other Changes 

A new definition for ‘‘build-to-print 

technology’’ would be added to § 772.1. 

This definition is needed to add 

precision to that term as used in new 

Supplement No. 4 to part 740. 

This rule proposes amending License 

Exception GOV (§ 740.11) by adding 

references to the new proposed 

Supplement No. 4 to Part 740 

supplement’s prohibitions in paragraphs 

(a)(5), (b)(2)(iii)(A), (b)(2)(iv)(A), and 

(c)(2)(iv), as well as in a note to (d)(1). 

Similarly, this rule proposes to amend 

License Exception STA (§ 740.20) by 

adding a reference to the proposed 

prohibitions in paragraph (b)(3). 

Corresponding Amendments 

As discussed in further detail below, 

the July 15 proposed rule stated that one 

reason for control for items classified in 

the 600 series is Regional Stability 

Column 1. Items classified under 

proposed ECCN 9A610, other than 

ECCN 9A610.y items, as well as related 

technology and software classified 

under ECCNs 9D610 and 9E610, would 

be controlled for this reason, among 

others. Correspondingly, this proposed 

rule would revise § 742.6 of the EAR to 

apply the RS Column 1 licensing policy 

to commodities classified under ECCN 

9A610, 9B610, 9C610 (except 

paragraphs .y of those ECCNs), and to 

related software and technology 

classified under ECCNs 9D610 and 

9E610. This proposed rule would also 

amend the RS Column 1 licensing 

policy to impose a general policy of 

denial for ‘‘600 series’’ items if the 

destination is subject to a United States 

arms embargo and a general policy of 

denial for items specially designed or 

required for F–14 aircraft. 

Relationship to the July 15 Proposed 

Rule 

As referenced above, the purpose of 

the July 15 proposed rule was to set up 

the framework for creating ECCNs that 

would cover articles that the President 

determines no longer warrant coverage 

on the USML, but for which export 

control under the EAR is appropriate. 

To facilitate that goal, the July 15 

proposed rule contained definitions and 

concepts that were meant to be applied 

across Categories. However, as BIS 

undertakes rulemakings to move 

specific categories of items from the 

USML to the CCL, there may be 

unforeseen issues or complications that 

may require BIS to reexamine those 

definitions and concepts. The comment 

period for the July 15 proposed rule 

closed on September 13, 2011. 

To the extent that this rule’s proposals 

affect any provision in July 15 proposed 

rule or the July 15 proposed rule’s 

provisions affect this proposed rule, BIS 

will consider comments on those 

provisions so long as they are in the 

context of the changes proposed in this 

rule. For example, BIS will consider 

comments on how the movement of 

Category VIII items from the USML to 

the CCL affects a definition, restriction, 

or provision that was contained in the 

July 15 proposed rule. BIS will also 

consider comments on the impact of a 

definition of a term in the July 15 

proposed rule when that term is used in 

this proposed rule. BIS will not consider 

comments of a general nature regarding 

the July 15 proposed rule that are 

submitted in response to this 

rulemaking. 

BIS believes that the following aspects 

of the July 15 proposed rule are among 

those that could affect this proposed 

rule: 

• De minimis provisions in § 734.4; 

• Definitions of terms in § 772.1; 

• Restrictions on use of license 

exceptions in §§ 740.2, 740.10, 740.11, 

and 740.20; 

• Change to national security 

licensing policy in § 742.4; 

• Requirement to request 

authorization to use License Exception 

STA for end items in 600 series ECCNs 

and procedures for submitting such 

requests in §§ 740.2, 740.20, 748.8 and 

Supp. No. 2 to part 748; 

• Licensing policy in § 742.4(b)(1)(ii); 

and 

• Addition of 600 series items to 

Supplement No. 2 to Part 744—List of 

Items Subject to the Military End-Use 

Requirement of § 744.21. 

BIS believes that the following aspects 

of this proposed rule are among those 

that could affect the provisions of the 

July 15 proposed rule: 

Addition of U.S. arms embargo policy 

regarding 600 series items set forth in 

§ 742.4(b)(1)(ii) (national security) of the 

July 15 proposed rule to § 742.6(b)(1) 

(regional stability) of this proposed rule; 

• Addition of denial policy regarding 

600 series items for F–14 aircraft set 

forth in § 742.6(b)(1) of this proposed 

rule. 

Positive, Tiered, and Aligned Control 

Lists 

In December 2010, the Departments of 

Commerce and State published 

Advanced Notices of Proposed 

Rulemaking that described the 

Administration’s plan to make the 

USML and the CCL positive, tiered, and 

aligned so that they eventually can be 

combined into a single control list (See 

‘‘Commerce Control List: Revising 

Descriptions of Items and Foreign 

Availability,’’ 75 FR 76664 (Dec. 9, 

2010) and ‘‘Revision to the United 

States Munitions List,’’ 75 FR 76935 

(Dec. 10, 2010)). This remains one of the 

Administration’s ultimate Export 

Control Reform objectives. In order to 

reach more quickly the national security 

objectives described above, the 

Administration has decided, as an 

interim step, to propose revisions to 

both the USML and the CCL to make 

them more objective, but to delay its 

plan to tier the export control regime 

until a later date. The most significant 

aspect of the more positive proposed 

USML categories is that they would not 

contain controls on all generic ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ and 

‘‘attachments’’ that were in any way 

‘‘specifically designed or modified’’ for 

a defense article, regardless of their 

significance to maintaining a military 

advantage for the United States. Rather, 

they would contain a positive list of 

specific types of parts, components, 

accessories, and attachments that 

continue to warrant control on the 

USML. All other parts, components, 

accessories, and attachments ‘‘specially 

designed’’ for a defense article would 

become subject to the new 600 series 

controls on the CCL as described in the 

July 15 proposed rule. The 

Administration will also propose 

revisions to the jurisdictional status of 

certain militarily less significant end 

items that do not warrant USML control, 

but the primary impact would be with 

respect to current USML controls on 

parts, components, accessories, and 

attachments that no longer warrant 

USML control. 

Based, in part, on a review of the 

comments received in response to the 

December 2010 notices, the 

Administration also has determined that 

fundamentally altering the structure of 

the USML by tiering and aligning it on 

a category-by-category basis would 

significantly disrupt the export control 

compliance systems and procedures of 

exporters and reexporters. For example, 

until the entire USML is revised and 

becomes final, some USML categories 


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68680 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 

would follow the legacy numbering and 

control structures while the newly 

revised categories would follow a 

completely different numbering 

structure. The only way to alleviate this 

impact would be to delay 

implementation until all categories are 

complete or to proceed with building 

positive lists now and returning to 

structural changes once complete. In 

order to allow for the national security 

benefits to flow from re-aligning the 

jurisdictional status of defense articles 

that no longer warrant control on the 

USML on a category-by-category basis 

while minimizing the impact on 

exporters’ internal control and 

jurisdictional and classification marking 

systems, the Administration plans to 

proceed on a category-by-category basis 

with the approach described in this 

proposed rule. 

Finally, in order to prevent any 

aircraft-related commodity specially 

designed for a military use that is not 

described in the proposed revisions to 

the USML from inadvertently dropping 

out of the U.S. Government’s export 

controls, the rule proposes to use the 

catch-all phrase ‘‘specially designed,’’ as 

defined in the July 15 proposed rule, in 

the new ECCNs to control commodities 

not otherwise identified on the revised 

USML or elsewhere in the ECCN. The 

primary examples of this approach are 

ECCN 9A610.a, which controls any 

aircraft ‘‘specially designed’’ for a 

military use not identified on the USML 

or elsewhere on the CCL, and ECCN 

9A610.x, which controls any part, 

component, accessory, or attachment 

‘‘specially designed’’ for a military 

aircraft and not otherwise identified on 

the USML or elsewhere in the CCL. This 

approach is also part of a core objective 

of the Export Control Reform Initiative, 

which is to create a bright jurisdictional 

line between the USML and the CCL. As 

evidenced by the proposed revisions to 

USML Category VIII published by the 

State Department concurrently with this 

proposed rule, the Administration is 

following through on its commitment 

that the USML not contain generic, 

catch-all controls on every ‘‘part,’’ 

‘‘component,’’ ‘‘accessory,’’ or 

‘‘attachment’’ that is in any way 

specifically designed, modified, 

adapted, or configured, regardless of its 

military significance, for a defense 

article. The proposed USML revision is 

a substantially more positive list than 

the current list. Thus, to the extent an 

item is ‘‘specially designed’’ for a 

military use, it is subject to a 600 series 

ECCN in the EAR unless specifically 

identified on the ITAR’s USML. 

Effects of This Proposed Rule 

BIS believes that the principal effect 

of this rule will be to provide greater 

flexibility for exports and reexports to 

NATO member countries and other 

multiple-regime-member countries of 

items the President determines no 

longer warrant control on the United 

States Munitions List. This greater 

flexibility will be in the form of: 

application of the EAR’s de minimis 

threshold principle for items 

constituting less than a de minimis 

amount of controlled U.S.-origin content 

in foreign made items; availability of 

license exceptions, particularly License 

Exceptions RPL and STA; elimination of 

the requirements for manufacturing 

agreements and technical assistance 

agreements in connection with exports 

of technology; and a reduction in or 

elimination of exporter and 

manufacturer registration requirements 

and associated registration fees. Some of 

these specific effects are discussed in 

more detail below. 

De Minimis 

Section 734.3 of the EAR provides, 

inter alia, that under certain conditions 

items made outside the United States 

that incorporate items subject to the 

EAR are not subject to the EAR if they 

do not exceed a ‘‘de minimis’’ 

percentage of controlled U.S. origin 

content. Depending on the destination, 

the de minimis percentage can be either 

10 percent or 25 percent. If the July 15 

proposed rule’s amendments at § 734.4 

of the EAR are adopted, the new ECCNs 

9A610, 9B610, 9C610, 9D610 and 9E610 

proposed in this rule would be subject 

to the de minimis provisions set forth in 

the July 15 proposed rule because they 

would be ‘‘600 series’’ ECCNs. Foreignmade items incorporating items in the 

new ECCNs would become eligible for 

de minimis treatment at the 10 percent 

level. The AECA does not permit the 

ITAR to have a de minimis treatment for 

these USML-listed items, regardless of 

the significance or insignificance of the 

item. Foreign-made items incorporating 

any items that currently are classified 

under ECCN 9A018 would be subject to 

the EAR if those foreign made items 

contain more than 10 percent U.S. 

origin controlled content, regardless of 

the destination and regardless of the 

proportion of the U.S. origin controlled 

content accounted for by the former 

ECCN 9A018 items. 

Use of License Exceptions 

The July 15 proposed rule would 

impose certain limits for 600 series 

items moving from existing 018 controls 

on the CCL. BIS believes that even with 

the July 15 proposed restrictions on the 

use of license exceptions and the 

additional restrictions identified in this 

proposed rule, restrictions on items 

currently on the USML would be 

reduced, particularly with respect to 

exports to NATO members and 

multiple-regime member countries, if 

those items were moved from the USML 

to proposed ECCN 9A610. BIS also 

believes that, in practice, the movement 

of items from ECCN 9A018 to ECCN 

9A610 would have little effect on 

license exception availability for those 

items because existing restrictions or the 

terms of the license exceptions 

themselves already preclude most 

transactions that would be precluded by 

the July 15 proposed amendments to 

§ 740.2 of the EAR. However, BIS is 

aware of two situations (the use of 

License Exceptions GOV and STA) in 

which movement of items in ECCN 

9A018 to ECCN 9A610 could, in 

practice, impose greater limits on use of 

license exceptions than currently is the 

case. 

First, the July 15 proposed rule would 

limit use of License Exception GOV for 

600 series commodities to situations in 

which the United States Government is 

the consignee and end user or to 

situations in which the consignee or end 

user is the government of a country 

listed in § 740.20(c)(1). Currently, 

commodities classified under ECCN 

9A018 may be exported under any 

provision of License Exception GOV to 

any destination authorized by that 

provision if all of the conditions of that 

provision are met and nothing else in 

the EAR precludes such shipment. 

Second, the July 15 proposed rule 

would limit use of License Exception 

STA for ‘‘end items’’ in 600 series 

ECCNs to those end items for which a 

specific request for License Exception 

STA eligibility, filed in conjunction 

with a license application, has been 

approved and would require that the 

end item be for ultimate end use by a 

foreign government agency of a type 

specified in the July 15 proposed rule. 

The July 15 proposed rule also would 

limit exports of 600 series parts, 

components, accessories, and 

attachments under License Exception 

STA for ultimate end use by the same 

set of end users. Neither restriction 

currently applies to use of License 

Exception STA for commodities 

classified under ECCN 9A018. In 

addition, the July 15 proposed rule 

would limit shipment of 600 series 

items under License Exception STA to 

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

Currently, commodities classified under 

ECCN 9A018.c, .d, .e, and .f (which 

would be moved to ECCN 9A610 under 


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this proposed rule) and related software 

and technology (currently classified 

under ECCNs 9D018 and 9E018, and 

proposed to move to new ECCNs 9D610 

and 9E610) may be shipped under 

License Exception STA to destinations 

listed in § 740.20(c)(1) or (c)(2). 

Making U.S. Export Controls More 

Consistent With the Wassenaar 

Arrangement Munitions List 

The Administration has stated since 

the beginning of the Export Control 

Reform Initiative that the reforms will 

be consistent with the obligations of the 

United States to the multilateral export 

control regimes. Accordingly, the 

Administration will, in this and 

subsequent proposed rules, exercise its 

national discretion to implement, 

clarify, and, to the extent feasible, align 

its controls with those of the regimes. 

For example, the proposed ECCN 9A610 

tracks, to the extent possible, the 

numbering structure and text of WAML 

category 10 pertaining to military 

aircraft not subject to the ITAR. It also 

implements in 9A610.x the controls in 

WAML category 16 for forgings, 

castings, and other unfinished products; 

in 9B610.a and .b the controls in WAML 

category 18 for production equipment; 

in 9D610 the applicable controls in 

WAML category 21 for software; and in 

9E610 the applicable controls in WAML 

category 22 for technology. 

Clarifying the Relationship Between 

U.S. Export Controls and the Missile 

Technology Control Regime (MTCR) 

Equipment, Software and Technology 

Annex 

This proposed rule would identify the 

specific paragraphs in proposed ECCNs 

9A610, 9B610, 9D610, and 9E610 that 

list items that are also on the MTCR 

Equipment, Software and Technology 

Annex and apply the MT Column 1 

reason for control to those paragraphs. 

This action would impose the missile 

technology based license requirements 

and licensing policy of § 742.5 of the 

EAR to those items. Those items are 

currently subject to the ITAR, which 

does not specify the multilateral regime 

on which a license requirement is 

based. Listing these items on the CCL 

with the reason for control stated will 

correlate the underlying MTCR control 

with export license requirements and 

licensing policy. 

Other Effects 

Pursuant to the framework identified 

in the July 15 proposed rule, 

commodities classified under ECCN 

9A610 (other than ECCN 9A610.l, .m, .n, 

and. y), along with related test, 

inspection and production equipment, 

materials, software and technology 

classified under ECCNs 9B610, 9C610, 

9D610 and 9E610 (other than ECCNs 

9B610.c. and 9X610.y) would be subject 

to the licensing policies set forth in 

§ 742.4(b)(1) (national security, column 

1). Commodities classified under ECCN 

9A610.l, .m and .n, along with related 

test, inspection and production 

equipment, software and technology 

classified under ECCNs 9B610.c, 9D610 

and 9E610 would be subject to the 

licensing policy set forth in § 742.5(b) 

(missile technology) because they are 

listed on the Missile Technology 

Control Regime Equipment, Software 

and Technology Annex. They would not 

be subject to national security controls 

because they are not identified on the 

WAML. All commodities in ECCN 

9A610 (other than 9A610.y which is 

subject to an antiterrorism reason for 

control only and the prohibitions in Part 

744) along with related test, inspection 

and production equipment, materials, 

software and technology classified 

under ECCNs 9B610, 9C610, 9D610 and 

9E610 (other than 9X610.y) would be 

subject to the licensing policies set forth 

in § 742.6(a)(1) (regional stability, 

column 1). 

The July 15 proposed rule would 

change § 742.4 to set forth a general 

policy of denial for 600 series items for 

destinations that are subject to a United 

States arms embargo, which would 

apply to all items controlled for national 

security reasons under this proposed 

rule. This proposed rule adds that 

general policy of denial to § 742.6(b)(1) 

(regional stability column 1). This 

addition is needed so that the general 

denial policy for 600 series items would 

apply to items in proposed ECCNs 

9A610, 9B610, 9D610 and 9E610 that 

are subject to the missile technology and 

regional stability reasons for control but 

not to the national security reason for 

control. This rule also adds a general 

policy of denial to § 742.6(b)(1) for items 

specially designed or required for F–14 

aircraft because Iran is the only country 

that has such aircraft in its active 

inventory. 

Jurisdictional and Classification Status 

of Items Subject to Previous Commodity 

Jurisdiction Determinations 

The Administration recognizes that 

some items that would fall within the 

scope of the proposed new ECCNs will 

have been subject to commodity 

jurisdiction (CJ) determinations issued 

by the United States Department of 

State. The State Department will have 

either determined that the item was 

subject to the jurisdiction of the ITAR or 

that it was not. (See 22 CFR 120.3 and 

120.4). Under this proposed rule, items 

the State Department determined to be 

not subject to the ITAR and that are now 

not described on the CCL would be 

subject to the AT-only controls of the 

‘‘.y99’’ paragraph of the applicable 

ECCN if they would otherwise be within 

the scope of the ECCN. Thus, for 

example, ECCN 9A610.x would control 

any part, component, accessory, or 

attachment not specifically identified in 

the USML or elsewhere in the ECCN if 

it was ‘‘specially designed’’ for a 

military aircraft. If a particular part, 

component, accessory, or attachment 

was, as defined, ‘‘specially designed’’ 

for a military aircraft and was at the 

time of a CJ determination not identified 

on the CCL, it would be controlled 

under 9A610.y.99. If it was identified 

or, as a matter of law or the result of a 

subsequent commodity classification 

(‘‘CCATS’’) determination by 

Commerce, controlled by another legacy 

ECCN, such as 9A991.d, 7A994, or 

9A003, that ECCN would continue to 

apply to the item. This general approach 

will, pending public comment, be 

repeated in subsequent proposed rules 

pertaining to other categories of items. 

If, however, the State Department had 

made a CJ determination that a 

particular item was subject to the 

jurisdiction of ITAR but that item is not 

described on the final, implemented 

version of a revised USML category, a 

new CJ determination would not be 

required unless there was doubt about 

the application of the new USML 

category to the item. (See 22 CFR 120.4). 

Thus, unless there were doubts about 

the jurisdictional status of a particular 

item, exporters and reexporters would 

be entitled to rely on the revised USML 

categories when making jurisdictional 

determinations, notwithstanding past CJ 

determinations that, under the previous 

version of the USML, the item was ITAR 

controlled. 

Finally, if the State Department had 

made a CJ determination that a 

particular item was subject to the 

jurisdiction of the ITAR and that item 

remains in the revised USML, the item 

would remain subject to the jurisdiction 

of the ITAR. 

Section-by-Section Description of the 

Proposed Changes 

• Section 738.2(d)(2)(ii)—Adds a 

reference to STA paragraphs in some 

600 series ECCNs that clarify STA 

eligibility regarding those ECCNs. 

• Section 740.2—Republishes 

proposed new paragraph (a)(13) from 

the July 15 proposed rule with changes 

to make License Exception STA eligible 

for exports, reexports, and in-country 

transfers of items that would be used in 

the production of items for governments 


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of countries listed in 740.20(c)(1), or for 

the United States Government or any 

person in the United States. 

• Section 740.11—Amends License 

Exception GOV to add references to 

Supplement No. 4 to part 740 and 

partially restates the prohibition on 

using provisions of License Exception 

GOV to export or reexport certain 

technology and software listed in that 

supplement, other than exports and 

reexports to personnel and agencies of 

the U.S. Government. 

• Section 740.20—Amends License 

Exception STA to refer to Supp. No. 4 

to part 740 and partially restate the 

prohibition on using license exception 

STA to export, reexport or transfer (incountry) certain technology and 

software listed in that supplement. 

Republishing a ‘‘Note to paragraph 

(c)(1)’’ from the July 15 proposed rule 

with additional text to make License 

Exception STA eligible for exports, 

reexports and in-country transfers of 

items that would be for or used for the 

production or development of items for 

governments of countries listed in 

740.20(c)(1), or for the United States 

Government or any person in the United 

States. 

• Supplement No. 4 to part 740— 

Prohibits using License Exception STA 

or provisions of License Exception GOV 

other than those authorizing exports and 

reexports to personnel and agencies of 

the U.S. Government to export, reexport 

or transfer software and technology 

(other than ‘‘build-to-print technology’’) 

for the development or production of 

specified ECCN 9A610.x items. 

• Section 742.6—ECCNs 9A610, 

9B610, 9C610, 9D610 and 9E610 are 

added to § 742.6(a)(1) to impose a RS 

Column 1 license requirement and 

licensing policy. Section 742.6(b)(1) 

would be amended to apply a general 

denial policy for applications to export 

or reexport ‘‘600 series’’ to destinations 

that are subject to a United States arms 

embargo and to export items specially 

designed for or required for F–14 

aircraft to any destination. 

• Section 770.2—Removes paragraph 

(i)—Interpretation 9: Civil aircraft and 

civil aircraft equipment. 

• Section 772.1—Adds a definition of 

‘‘build-to-print technology.’’ 

• Supplement No. 1 to part 774— 

Adds ECCNs 9A610, 9B610, 9C610, 

9D610 and 9E610. Replaces existing text 

of ECCNs 9A018, 9D018 and 9E018 with 

cross-references to ECCNs 0A606, 

0D606 and 0E606 for items related to 

ground vehicles that have been moved 

to those ECCNs and with references to 

new ECCNs 9A610, 9D610 and 9E610 

for all other items (i.e., items related to 

aircraft) that have been moved to those 

ECCNs. 

Request for Comments 

BIS seeks comments on this proposed 

rule. BIS will consider all comments 

received on or before December 22, 

2011. All comments (including any 

personally identifying information or 

information for which a claim of 

confidentially is asserted either in those 

comments or their transmittal emails) 

will be made available for public 

inspection and copying. Parties who 

wish to comment anonymously may do 

so by submitting their comments via 

Regulations.gov, leaving the fields that 

would identify the commenter blank 

and including no identifying 

information in the comment itself. 

Regulatory Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget (OMB). 

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 

OMB control number. This proposed 

rule would affect two approved 

collections: Simplified Network 

Application Processing + System 

(control number 0694–0088), which 

includes, among other things, license 

applications, and License Exceptions 

and Exclusions (0694–0137). 

As stated in the proposed rule 

published at 76 FR 41958 (July 15, 

2011), BIS believes that the combined 

effect of all rules to be published adding 

items to EAR that would be removed 

from the ITAR as part of the 

administration’s Export Control Reform 

Initiative would increase the number of 

license applications to be submitted by 

approximately 16,000 annually resulting 

in an increase in burden hours of 5,067 

(16,000 transactions at 17 minutes each) 

under control number 0694–0088. 

Some items formerly on the USML 

would become eligible for License 

Exception STA under this rule. Other 

such items may become eligible for 

License Exception STA upon approval 

of a request submitted in conjunction 

with a license application. As stated in 

the July 15 proposed rule, BIS believes 

that the increased use of License 

Exception STA resulting from the 

combined effect of all rules to be 

published adding items to EAR that 

would be removed from the ITAR as 

part of the administration’s Export 

Control Reform Initiative would 

increase the burden associated with 

control number 0694–0137 by about 

23,858 hours (20,450 transactions @ 1 

hour and 10 minutes each). 

BIS expects that this increase in 

burden would be more than offset by a 

reduction in burden hours associated 

with approved collections related to the 

ITAR. This proposed rule addresses 

controls on military aircraft and related 

parts, components, production 

equipment, materials, software, and 

technology. The largest impact of the 

proposed rule would be with respect to 

exporters of parts and components 

because, under the proposed rule, most 

U.S. and foreign military aircraft 

currently in service would continue to 

be subject to the ITAR. Because, with 

few exceptions, the ITAR allows 

exemptions from license requirements 

only for exports to Canada, most exports 

to integrators for U.S government 

equipment and most exports of routine 

maintenance parts and components for 

our NATO and other close allies require 

State Department authorization. In 

addition, the exports necessary to 

produce parts and components for 

defense articles in the inventories of the 

United States and its NATO and other 

close allies require State Department 

authorizations. Under the EAR, as 

proposed, a small number of low level 

parts would not require a license to 

most destinations. Most other parts, 

components, accessories, and 

attachments would become eligible for 

export to NATO and other close allies 

under License Exception STA. Use of 

License Exception STA imposes a 

paperwork and compliance burden 

because, for example, exporters must 

furnish information about the item 

being exported to the consignee and 

obtain from the consignee an 

acknowledgement and commitment to 

comply with the EAR. It is, however, the 

Administration’s understanding that 

complying with the requirements of 

STA is likely to be less burdensome 


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Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 68683 

than applying for licenses. For example, 

under License Exception STA, a single 

consignee statement can apply to an 

unlimited number of products, need not 

have an expiration date and need not be 

submitted to the government in advance 

for approval. Suppliers with regular 

customers can tailor a single statement 

and assurance to match their business 

relationship rather than applying 

repeatedly for licenses with every 

purchase order to supply allied and, in 

some cases, U.S forces with routine 

replacement parts and components. 

Even in situations in which a license 

would be required under the EAR, the 

burden is likely to be reduced compared 

to the license requirement of the ITAR. 

In particular, license applications for 

exports of technology controlled by 

ECCN 9E610 are likely to be less 

complex and burdensome than the 

authorizations required to export ITARcontrolled technology, i.e., 

Manufacturing License Agreements and 

Technical Assistance Agreements. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Regulatory Flexibility Act 

(RFA), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA), 5 U.S.C. 

601 et seq., generally requires an agency 

to prepare a regulatory flexibility 

analysis of any rule subject to the notice 

and comment rulemaking requirements 

under the Administrative Procedure Act 

(5 U.S.C. 553) or any other statute, 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. Under section 605(b) of the 

RFA, however, if the head of an agency 

certifies that a rule will not have a 

significant impact on a substantial 

number of small entities, the statute 

does not require the agency to prepare 

a regulatory flexibility analysis. 

Pursuant to section 605(b), the Chief 

Counsel for Regulations, Department of 

Commerce, certified to the Chief 

Counsel for Advocacy, Small Business 

Administration that this proposed rule, 

if promulgated, will not have a 

significant impact on a substantial 

number of small entities for the reasons 

explained below. Consequently, BIS has 

not prepared a regulatory flexibility 

analysis. A summary of the factual basis 

for the certification is provided below. 

Number of Small Entities 

The Bureau of Industry and Security 

(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 affected by this 

rule, it acknowledges that this rule 

would affect some unknown number. 

Economic Impact 

This proposed rule is part of the 

Administration’s Export Control Reform 

Initiative. Under that initiative, the 

United States Munitions List (22 CFR 

part 121) (USML) would be revised to be 

a ‘‘positive’’ list, i.e., a list that does not 

use generic, catch-all controls on any 

part, component, accessory, attachment, 

or end item that was in any way 

specifically modified for a defense 

article, regardless of the article’s 

military or intelligence significance or 

non-military applications. At the same 

time, articles that are determined to no 

longer warrant control on the USML 

would become controlled on the 

Commerce Control List (CCL). Such 

items, along with certain military items 

that currently are on the CCL, will be 

identified in specific Export Control 

Classification Numbers (ECCNs) known 

as the ‘‘600 series’’ ECCNs. In addition, 

some items currently on the Commerce 

Control List would move from existing 

ECCNs to the new 600 series ECCNs. In 

practice, the greatest impact of this rule 

on small entities would likely be 

reduced administrative costs and 

reduced delay for exports of items that 

are now on the USML but would 

become subject to the EAR. This rule 

focuses on Category VIII articles, which 

are aircraft and related parts, 

components, production equipment, 

software, and technology. Most 

operational military aircraft currently in 

active inventory would remain on the 

USML. However, parts and components, 

which are more likely to be produced by 

small businesses than are complete 

military aircraft, would in many cases 

become subject to the EAR. In addition, 

officials of the Department of State have 

informed BIS that license applications 

for such parts and components are a 

high percentage of the license 

applications for USML articles review 

by that department. 

Changing the jurisdictional status of 

Category VIII items would reduce the 

burden on small entities (and other 

entities as well) through: 

—Elimination of some license 

requirements, 

—Greater availability of license 

exceptions, 

—Simpler license application 

procedures, and 

—Reduced (or eliminated) registration 

fees. 

In addition, parts and components 

controlled under the ITAR remain under 

ITAR control when incorporated into 

foreign-made items, regardless of the 

significance or insignificance of the 

item, discouraging foreign buyers from 

incorporating such U.S. content. The 

availability of de minimis treatment 

under the EAR may reduce the incentive 

for foreign manufacturers to avoid 

purchasing U.S.-origin parts and 

components 

Twenty-five types of parts and 

components, identified in ECCN 

9A610.y, would be designated 

immediately as parts and components 

that, even if specially designed for a 

military use, have little or no military 

significance. These parts and 

components, which under the ITAR 

require a license to nearly all 

destinations, would, under the EAR, 

require a license to only five 

destinations and, if destined for a 

military end use, the People’s Republic 

of China. 

Many exports and reexports of the 

Category VIII articles that would be 

placed on the CCL by this rule, 

particularly parts and components, 

would become eligible for license 

exceptions that apply to shipments to 

United States Government agencies, 

shipments valued at less than $1,500, 

parts and components being exported 

for use as replacement parts, temporary 

exports, and License Exception Strategic 

Trade Authorization (STA), reducing 

the number of licenses that exporters of 

these items would need. License 

Exceptions under the EAR would allow 

suppliers to send routine replacement 

parts and low level parts to NATO and 

other close allies and export control 

regime partners for use by those 

governments and for use by contractors 

building equipment for those 

governments or for the United States 

government without having to obtain 

export licenses. Under License 

Exception STA, the exporter would 

need to furnish information about the 

item being exported to the consignee 

and obtain a statement from the 

consignee that, among other things, 

would commit the consignee to comply 

with the EAR and other applicable U.S. 

laws. Because such statements and 

obligations can apply to an unlimited 

number of transactions and have no 

expiration date, they would impose a 

net reduction in burden on transactions 

that the government routinely approves 

through the license application process 

that the License Exception STA 

statements would replace. 

Even for exports and reexports in 

which a license would be required, the 

process would be simpler and less 

costly under the EAR. When a USML 

Category VIII article is moved to the 

CCL, the number of destinations for 

which a license is required would 


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68684 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 

remain unchanged. However, the 

burden on the license applicant would 

decrease because the licensing 

procedure for CCL items is simpler and 

more flexible that the license procedure 

for UMSL articles. 

Under the USML licensing procedure, 

an applicant must include a purchase 

order or contract with its application. 

There is no such requirement under the 

CCL licensing procedure. This 

difference gives the CCL applicant at 

least two advantages. First, the 

applicant has a way of determining 

whether the U.S. government will 

authorize the transaction before it enters 

into potentially lengthy, complex and 

expensive sales presentations or 

contract negotiations. Under the USML 

procedure, the applicant will need to 

caveat all sales presentations with a 

reference to the need for government 

approval and is more likely to have to 

engage in substantial effort and expense 

only to find that the government will 

reject the application. Second, a CCL 

license applicant need not limit its 

application to the quantity or value of 

one purchase order or contract. It may 

apply for a license to cover all of its 

expected exports or reexports to a 

particular consignee over the life of a 

license (normally two years, but may be 

longer if circumstances warrant a longer 

period), reducing the total number of 

licenses for which the applicant must 

apply. 

In addition, many applicants 

exporting or reexporting items that this 

rule would transfer from the USML to 

the CCL would realize cost savings 

through the elimination of some or all 

registration fees currently assessed 

under the USML’s licensing procedure. 

Currently, USML applicants must pay to 

use the USML licensing procedure even 

if they never actually are authorized to 

export. Registration fees for 

manufacturers and exporters of articles 

on the USML start at $2,500 per year, 

increase to $2,750 for organizations 

applying for one to ten licenses per year 

and further increases to $2,750 plus 

$250 per license application (subject to 

a maximum of three percent of total 

application value) for those who need to 

apply for more than ten licenses per 

year. There are no registration or 

application processing fees for 

applications to export items listed on 

the CCL. Once the Category VIII items 

that are the subject to this rulemaking 

are moved from the USML to the CCL, 

entities currently applying for licenses 

from the Department of State would find 

their registration fees reduced if the 

number of USML licenses those entities 

need declines. If an entity’s entire 

product line is moved to the CCL, then 

its ITAR registration and registration fee 

requirement would be eliminated. 

De minimis treatment under the EAR 

would become available for all items 

that this rule would transfer from the 

USML to the CCL. Items subject to the 

ITAR remain subject to the ITAR when 

they are incorporated abroad into a 

foreign-made product regardless of the 

percentage of U.S content in that foreign 

made product. Foreign-made products 

that incorporate items that this rule 

would move to the CCL would be 

subject to the EAR only if their total 

controlled U.S.-origin content exceeded 

10 percent. Because including small 

amounts of U.S.-origin content would 

not subject foreign-made products to the 

EAR, foreign manufacturers would have 

less incentive to avoid such U.S.-origin 

parts and components, a development 

that potentially would mean greater 

sales for U.S. suppliers, including small 

entities. 

For items currently on the CCL that 

would be moved from existing ECCNs to 

the new 600 series, license exception 

availability would be narrowed 

somewhat and the applicable de 

minimis threshold for foreign-made 

products containing those items would 

in some cases be reduced from 25 

percent to 10 percent. BIS is still 

considering comments made in 

response to the July 15 rule pertaining 

to these proposed new de minimis 

levels and as noted above, will consider 

de minimis related comments to this 

proposed rule provided they are in the 

context of this proposed rule. However, 

BIS believes that increased burden 

imposed by those actions will be offset 

substantially by the reduction in burden 

attributable to the moving of items from 

the USML to CCL and the compliance 

benefits associated with the 

consolidation of all WAML items 

subject to the EAR in one series of 

ECCNs. 

Conclusion 

BIS is unable to determine the precise 

number of small entities that would be 

affected by this rule. Based on the facts 

and conclusions set forth above, BIS 

believes that any burdens imposed by 

this rule would be offset by the 

reduction in the number of items that 

would require a license, increased 

opportunities for use of license 

exceptions for exports to certain 

countries, simpler export license 

applications, reduced or eliminated 

registration fees and application of a de 

minimis threshold for foreign-made 

items incorporating U.S.-origin parts 

and components, which would reduce 

the incentive for foreign buyers to 

design out or avoid U.S.-origin content. 

For these reasons, the Chief Counsel for 

Regulations of the Department of 

Commerce certified to the Chief Counsel 

for Advocacy of the Small Business 

Administration that this rule, if adopted 

in final form, would not have a 

significant economic impact on a 

substantial number of small entities. 

List of Subjects 

15 CFR Parts 738, 770 and 772 

Exports. 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, the Export Administration 

Regulations (15 CFR parts 730–774) are 

proposed to be amended as follows: 

15 CFR PART 738—[AMENDED] 

1. The authority citations paragraph 

for part 738 continues to read as 

follows: 

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

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

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

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

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

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

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

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

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

Comp., p. 783; Notice of August 12, 2011, 76 

FR 50661 (August 16, 2011). 

2. Section 738.2(d)(2)(ii) is amended 

by adding a sentence immediately 

following the fifth sentence that reads as 

follows: 

§ 738.2 Commerce Control List (CCL) 

structure. 

* * * * * 

(d) * * * 

(2) * * * 

(ii) * * * In some ‘‘600 series’’ 

ECCNs, the STA license exception 

paragraph or a note to the License 

Exceptions section contains additional 

information about License Exception 

STA applicability to that ECCN. 

15 CFR PART 740—[AMENDED] 

3. The authority citations paragraph 

for part 740 continues to read as 

follows: 

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

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

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


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

Comp., p. 783; Notice of August 12, 2011, 76 

FR 50661 (August 16, 2011). 

4. Section 740.2 is amended by 

adding a paragraph (a)(13) to read as 

follows: 

§ 740.2 Restriction on all license 

exceptions. 

(a) * * * 

(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) or by the United 

States Government, or is for the 

‘‘development’’ or ‘‘production’’ of an 

item for use by one of those 

governments or a person in the United 

States. Except for MT-controlled items, 

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) so 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, correctional, fire, 

and search and rescue agencies of a 

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

countries or by the United States 

Government, or is for the 

‘‘development’’ or ‘‘production’’ of an 

item for use by one of those agencies of 

those governments or a person in the 

United States. 

(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) or by the United 

States Government, or is for the 

‘‘development’’ or ‘‘production’’ of an 

item for use by one of those 

governments or a person in the United 

States. 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) so 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, correctional, fire, 

and search and rescue agencies of a 

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

countries or by the United States 

Government, or is for the 

‘‘development’’ or ‘‘production’’ of an 

item for use by one of those agencies of 

those governments or a person in the 

United States. This paragraph 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) 

or by the United States Government, or 

is for the ‘‘development’’ or 

‘‘production’’ of an item for use by one 

of those governments or a person in the 

United States. 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) so 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, correctional, fire, 

and search and rescue agencies of a 

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

countries or by the United States 

Government, or is for the 

‘‘development’’ or ‘‘production’’ of an 

item for use by one of those agencies of 

those governments or a person in the 

United States. This paragraph does not 

alter the limitations on the use of 

License Exception STA contained in 

§ 740.20(b)(2). 

* * * * * 

5. Section 740.11 is amended by: 

a. adding a new paragraph (a)(5), 

b. revising paragraph (b)(2)(iii)(A), 

c. revising paragraph (b)(2)(iv)(A), 

d. revising paragraphs (c)(2)(ii) and 

(c)(2)(iii) and adding a new paragraph 

(c)(2)(iv), and 

e. adding a note to paragraph (d)(1), 

to read as follows: 

§ 740.11 Governments, international 

organizations, international inspections 

under the Chemical Weapons Convention, 

and the international space station (GOV). 

* * * * * 

(a) * * * 

(5) This paragraph (a) does not 

authorize exports or reexports of 

technology prohibited by Supplement 

No. 4 to this part. 

(b) * * * 

(2) * * * 

(iii)(A) Items for official use within 

national territory by agencies of 

cooperating governments. This License 

Exception is available for all items 

consigned to and for the official use of 

any agency of a cooperating government 

within the territory of any cooperating 

government, except items described in 

paragraph (a) of Supplement No. 1 to 

this section and technology prohibited 

by Supplement No. 4 to this part. 

* * * * * 

(iv) (A) Diplomatic and consular 

missions of a cooperating government. 

This License Exception is available for 

all items consigned to and for the 

official use of a diplomatic or consular 

mission of a cooperating government 

located in any country in Country 

Group B (see Supplement No. 1 to part 

740), except items described in 

paragraph (b) of Supplement No. 1 to 

this section and technology prohibited 

by Supplement No. 4 to this part. 

* * * * * 

(c) * * * 

(2) * * * 


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68686 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 

(ii) Inspection samples collected in 

the U.S. pursuant to the Convention; 

(iii) Commodities and software that 

are no longer in OPCW official use (such 

items must be disposed of in accordance 

with the EAR); and 

(iv) Technology prohibited by 

Supplement No. 4 to this part. 

* * * * * 

(d) * * * 

(1) * * * 

Note to paragraph (d)(1). This paragraph 

(d) does not authorize any export or reexport 

prohibited by Supplement No. 4 to this part. 

6. Section 740.20 is amended by 

adding a paragraph (b)(3) and a note to 

paragraph (c)(1) to read as follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

* * * * * 

(b) * * * 

(3) License Exception STA may not be 

used to export, reexport, or transfer (incountry) any technology prohibited by 

Supplement No. 4 to this part. 

* * * * * 

(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 such items 

is by, or for the ‘‘production’’ or 

‘‘development’’ of an item to be used by, the 

armed forces, police, paramilitary, law 

enforcement, customs, correctional, fire, and 

search and rescue agencies of one of the 

countries listed in § 740.20(c)(1) or the 

United States Government or a person in the 

United States. For ‘‘600 series’’ end items, see 

paragraph (g) of this section. This means that 

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) so long as the item 

at issue at the time of export, reexport, or 

transfer (in-country) is ultimately destined 

for either (i) end use by the armed forces, 

police, paramilitary, law enforcement, 

customs, correctional, fire, and search and 

rescue agencies of a government of one of the 

§ 740.20(c)(1) countries or the United States 

Government; or (ii) the ‘‘production’’ or 

‘‘development’’ of an item for ultimate end 

use by such a government entity in one of the 

§ 740.20(c)(1) countries or the United States 

Government or a person in the United States. 

This provision does not alter the limitations 

on the use of License Exception STA 

contained in § 740.20(b)(2). 

* * * * * 

7. Part 740 is amended by adding a 

Supplement No. 4 to read as follows: 

Supplement No. 4 to Part 740—600 

Series Items Subject to Limits 

Regarding License Exceptions GOV and 

STA 

This supplement lists certain parts and 

components that are classified under the .x 

paragraphs of ‘‘600 series’’ ECCNs and 

imposes limitations on the use of License 

Exceptions GOV (§ 740.11 of the EAR) and 

STA (§ 740.20 of the EAR) with respect to 

exports, reexports, and transfers (in-country) 

of ‘‘development’’ and ‘‘production’’ software 

or technology related to those parts and 

components. The restrictions and the parts 

and components are listed by Commerce 

Control List category. 

(a) Restrictions applicable to Category 9. 

License Exception STA may not be used to 

export, reexport, or transfer (in-country) 

ECCN 9D610 ‘‘software’’ or ECCN 9E610 

‘‘technology’’ (other than ‘‘build-to-print 

technology’’) for the ‘‘development’’ or 

‘‘production’’ of any of the types of ‘‘parts’’ 

or ‘‘components’’ listed below. In addition, 

License Exception GOV may not be used to 

export or reexport ECCN 9D610 ‘‘software’’ or 

ECCN 9E610 ‘‘technology’’ (other than 

‘‘build-to-print technology’’) for the 

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

types of ‘‘parts’’ or ‘‘components’’ listed 

below, except with respect to exports, 

reexports, and transfers (in-country) to U.S. 

government agencies and personnel 

identified in § 740.11(b)(2)(i) and (ii). 

(1) Static structural members; 

(2) Exterior skins, removable fairings, nonremovable fairings, radomes, access doors 

and panels, and in-flight opening doors; 

(3) Control surfaces, leading edges, trailing 

edges, and leading edge flap seals; 

(4) Leading edge flap actuation system 

commodities (i.e., power drive units, rotary 

geared actuators, torque tubes, asymmetry 

brakes, position sensors, and angle 

gearboxes) ‘‘specially designed’’ for fighter, 

attack, or bomber aircraft controlled in USML 

Category VIII; 

(5) Engine inlets and ducting; 

(6) Fatigue life monitoring systems 

‘‘specially designed’’ to relate actual usage to 

the analytical or design spectrum and to 

compute amount of fatigue life ‘‘specially 

designed’’ for aircraft controlled by either 

USML subcategory VIII(a) or ECCN 9A610.a, 

except for Military Commercial Derivative 

Aircraft; 

(7) Landing gear, and ‘‘parts’’ and 

‘‘components’’ ‘‘specially designed’’ therefor, 

‘‘specially designed’’ for use in aircraft 

weighing more than 21,000 pounds 

controlled by either USML subcategory 

VIII(a) or ECCN 9A610.a, except for Military 

Commercial Derivative Aircraft; 

(8) Conformal fuel tanks and ‘‘parts’’ and 

‘‘components’’ ‘‘specially designed’’ therefor; 

(9) Electrical ‘‘equipment,’’ ‘‘parts,’’ and 

‘‘components’’ ‘‘specially designed’’ for 

electro-magnetic interference (EMI)—i.e., 

conducted emissions, radiated emissions, 

conducted susceptibility and radiated 

susceptibility—protection of aircraft that 

conform to the requirements of MIL–STD– 

461; 

(10) HOTAS (Hand-on Throttle and Stick) 

controls, HOCAS (Hands on Collective and 

Stick), Active Inceptor Systems (i.e., a 

combination of Active Side Stick Control 

Assembly, Active Throttle Quadrant 

Assembly, and Inceptor Control Unit), rudder 

pedal assemblies for digital flight control 

systems, and parts and components 

‘‘specially designed’’ therefor; 

(11) Integrated Vehicle Health Management 

Systems (IVHMS), Condition Based 

Maintenance (CBM) Systems, and Flight Data 

Monitoring (FDM) systems; 

(12) Equipment ‘‘specially designed’’ for 

system prognostic and health management of 

aircraft; 

(13) Active Vibration Control Systems; 

(14) Fuel Cells ‘‘specially designed’’ for use 

in UAV or Lighter-than-Air-Vehicles; or 

(15) Self-sealing fuel bladders ‘‘specially 

designed’’ to pass a .50 caliber or larger 

gunfire test (MIL–DTL–5578, MIL–DTL– 

27422). 

(b) RESERVED 

15 CFR PART 742—[AMENDED] 

8. The authority citations paragraph 

for part 742 continues to read as 

follows: 

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

U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 

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

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

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

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

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

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

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

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

Comp., p. 783; Presidential Determination 

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

16, 2003; Notice of November 4, 2010, 75 FR 

68673 (November 8, 2010); Notice of August 

12, 2011, 76 FR 50661 (August 16, 2011). 

9. Section 742.6 is amended by 

revising paragraph (a)(1) and by adding 

a sentence immediately following 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 


srobinson on DSK4SPTVN1PROD with PROPOSALS
Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 68687 

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); 9A610 

(except 9A610.y); 9B610 (except 

9B610.y); 9C610 (except 9C610.y); 

9D610 (except ‘‘software’’ for the 

‘‘development,’’ ‘‘production’’ operation 

or maintenance of commodities 

controlled by 9A610.y, 9B610.y, or 

9C610.y) and 9E610 (except 

‘‘technology’’ for the ‘‘development,’’ 

‘‘production’’ operation, installation, 

maintenance, repair, or overhaul of 

commodities controlled by ECCN 

9A610.y, 9B610.y, or 9C610.y). 

* * * 

(b) Licensing policy. (1) * * * 

Applications for export or reexport of 

items classified under any ‘‘600 series’’ 

ECCN listed in paragraph (a)(1) of this 

section will also be reviewed in 

accordance with U.S. arms embargo 

policies and generally will be denied if 

destined for a destination in set forth 

§ 740.2(a)(12) of the EAR. Applications 

for export or reexport of parts, 

components, accessories, attachments, 

software, or technology ‘‘specially 

designed’’ or otherwise required for the 

F–14 aircraft will generally be denied. 

* * * 

* * * * * 

15 CFR PART 770—[AMENDED] 

10. The authority citation paragraph 

for part 774 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, 2011, 76 FR 50661 (August 16, 2011). 

Section 770.2 [Amended] 

11. Section 770.2 is amended by 

removing and reserving paragraph (i). 

15 CFR PART 772—[AMENDED] 

12. The authority citation paragraph 

for part 772 continues to read as 

follows: 

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

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

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

12, 2011, 76 FR 50661 (August 16, 2011). 

§ 772.1 [Amended] 

13. Section 772.1 is amended by 

adding in alphabetical order a definition 

for ‘‘build-to-print technology’’ to read 

as follows: 

* * * 

‘‘Build-to-Print technology’’ is 

‘‘production’’ ‘‘technology’’ that is 

sufficient for an inherently capable end 

user to produce or repair a commodity 

from engineering drawings without (i) 

Revealing ‘‘development’’ ‘‘technology,’’ 

such as design methodology, 

engineering analysis, detailed 

manufacturing or process know-how; 

(ii) revealing the production engineering 

or process improvement aspect of the 

‘‘technology;’’ or (iii) requiring 

assistance from the provider of the 

technology to produce or repair the 

commodity. Acceptance, test, or 

inspection criteria pertaining to the 

commodity at issue is included within 

the scope of ‘‘build-to-print technology’’ 

only if it is the minimum necessary to 

verify that the commodity is acceptable. 

* * * 

15 CFR PART 774—[AMENDED] 

14. The authority citation paragraph 

for part 774 continues to read as 

follows: 

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

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

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

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

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

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

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

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

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

Comp., p. 783; Notice of August 12, 2011, 76 

FR 50661 (August 16, 2011). 

15. In Supplement No. 1 to part 774, 

Category 9, revise Export Control 

Classification Number 9A018 to read as 

follows: 

Supplement No. 1 to Part 774—the 

Commerce Control List 

* * * * * 

9A018 Equipment on the Wassenaar 

Arrangement Munitions List. 

No items currently are in this ECCN. See 

ECCN 0A606.b.4 for the ground transport 

vehicles and unarmed all-wheel drive 

vehicles that immediately prior to [Insert 

effective date of final rule that moves these 

vehicles] were classified under 9A018.b. See 

ECCN 9A610 for the aircraft, aircraft engines, 

refuelers, ground equipment, parachute, 

harnesses, instrument flight trainers and 

parts and accessories and attachments for the 

forgoing that immediately prior to [Insert 

effective date of final rule that moves these 

items] were classified under 9A018.a, .c, .d, 

.e, or .f. 

16. In Supplement No. 1 to part 774, 

Category 9, add a new Export Control 

Classification Number 9A610 between 

Export Control Classification Numbers 

9A120 and 9A980 to read as follows: 

9A610 Military Aircraft and Related 

Commodities 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire entry except 9A610.l, m, n, and y ............................................................................................................ NS Column 1. 

RS applies to entire entry except 9A610.y ................................................................................................................................ RS Column 1. 

MT applies to 9A610.l, .m, and .n ............................................................................................................................................. MT Column 1. 

AT applies to entire entry .......................................................................................................................................................... AT Column 1. 

License Exceptions 

LVS: $1500 

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 9A610. Paragraph (c)(1) 

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

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

9A610, 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 9A610 as part of an export, 

reexport, or transfer (in-country) 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 www.bis.doc.gov. 


srobinson on DSK4SPTVN1PROD with PROPOSALS
68688 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 

Paragraph (c)(1) of License Exception STA 

(§ 740.20(c)(1)) may be used for items in 

9A610.x without the need for a determination 

described in § 740.20(g). 

List of Items Controlled 

Unit: End items in number; parts, 

component, accessories and attachments in 

$ value. 

Related Controls: Military aircraft and 

related articles that are enumerated in USML 

Category VIII, and technical data (including 

software) directly related thereto, are subject 

to the ITAR. See ECCN 0A919 for foreignmade ‘‘military commodities’’ that 

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

series’’ items. 

Items: 

a. ‘‘Military Aircraft’’ ‘‘specially designed’’ 

for a military use that are not enumerated in 

USML paragraph VIII(a). 

Note 1: For purposes of paragraph .a the 

term ‘‘military aircraft’’ includes the 

following types of aircraft to the extent they 

were ‘‘specially designed’’ for a military use 

and are not enumerated in USML paragraph 

VIII(a): trainer aircraft; cargo aircraft; utility 

fixed wing aircraft; military helicopters; 

observation aircraft; military non-expansive 

balloons and other lighter than air aircraft 

and unarmed military aircraft, regardless of 

origin or designation, manufactured before 

1956 and unmodified since manufacture. 

Aircraft with modifications made to 

incorporate safety of flight features or other 

FAA or NTSB modifications such as 

transponders and air data recorders are 

‘‘unmodified’’ for the purposes of this 

paragraph .a. 

b. [Reserved]. 

c. [Reserved]. 

d. [Reserved]. 

e. [Reserved]. 

f. Pressure refuelers, pressure refueling 

‘‘equipment,’’ ‘‘equipment’’ ‘‘specially 

designed’’ to facilitate operations in confined 

areas, and ground equipment ‘‘specially 

designed’’ for aircraft controlled by either 

USML paragraph VIII(a) or ECCN 9A610.a. 

g. Military crash helmets and protective 

masks, pressurized breathing equipment and 

partial pressure suits for use in aircraft 

controlled by either USML paragraph VIII(a) 

or ECCN 9A610.a, anti-g suits, liquid oxygen 

converters ‘‘specially designed’’ for aircraft 

controlled by either USML subcategory 

VIII(a) or ECCN 9A610.a, and catapults and 

cartridge actuated devices for emergency 

escape of personnel from aircraft controlled 

by either USML subcategory VIII(a) or ECCN 

9A610.a. 

h. Canopies, harnesses, platforms, 

electronic release mechanisms ‘‘specially 

designed’’ for use with aircraft controlled by 

either USML paragraph VIII(a) or ECCN 

9A610.a, parachutes and paragliders 

‘‘specially designed’’ or modified for military 

use, and ‘‘equipment’’ ‘‘designed’’ or 

modified for military high altitude 

parachutists, such as suits, special helmets, 

breathing systems, and navigation 

equipment. 

i. Automatic piloting systems for 

parachuted loads; equipment ‘‘specially 

designed’’ for military use for controlled 

opening jumps at any height, including 

oxygen equipment. 

j. Ground effect machines (GEMS), 

including surface effect machines and air 

cushion vehicles, ‘‘specially designed’’ for 

use by a military. 

k. Military aircraft instrument flight 

trainers that are not ‘‘specially designed’’ to 

simulate combat. (See USML Cat IX for 

controls on such trainers that are ‘‘specially 

designed’’ to simulate combat). 

l. Apparatus and devices designed or 

modified for the handling, control, activation 

or launching of UAVs or drones controlled by 

either USML paragraph VIII(a) or ECCN 

9A610.a, and capable of a range equal to or 

greater than 300 km. 

m. Radar altimeters designed or modified 

for use in UAVs or drones controlled by 

either USML paragraph VIII(a) or ECCN 

9A610.a., and capable of delivering at least 

500 kilograms payload to a range of at least 

300 km. 

n. Hydraulic, mechanical, electro-optical, 

or electromechanical flight control systems 

(including fly-by-wire systems) and attitude 

control equipment designed or modified for 

UAVs or drones controlled by either USML 

paragraph VIII(a) or ECCN 9A610.a., and 

capable of delivering at least 500 kilograms 

payload to a range of at least 300 km. 

o. through w. [Reserved] 

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

attachments’’ that are ‘‘specially designed’’ 

for a commodity subject to control in 

paragraphs .a through .k of this ECCN or a 

defense article in USML Category VIII and 

not elsewhere specified on the USML or the 

CCL. 

Note 1: Forgings, castings, and other 

unfinished products, such as extrusions and 

machined bodies, that have reached a stage 

in manufacturing where they are clearly 

identifiable by material composition, 

geometry, or function as commodities 

controlled by ECCN 9A610.x are controlled 

by ECCN 9A610.x. 

Note 2: ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ specified in 

USML subcategory VIII(f) or VIII(h) are 

subject to the controls of that paragraph. 

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

attachments’’ specified in ECCN 9A610.y are 

subject to the controls of that paragraph. 

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 VIII and not elsewhere specified in 

the USML or the CCL, and other aircraft 

commodities ‘‘specially designed’’ for a 

military use, as follows: 

y.1. Aircraft tires; 

y.2. Analog cockpit gauges and indicators; 

y.3. Audio selector panels; 

y.4. Check valves for hydraulic and 

pneumatic systems; 

y.5. Crew rest equipment; 

y.6. Ejection seat mounted survival aids; 

y.7. Energy dissipating pads for cargo (for 

pads made from paper or cardboard); 

y.8. Filters and filter assemblies for 

hydraulic, oil and fuel systems; 

y.9. Galleys; 

y.10. Hydraulic and fuel hoses, straight and 

unbent lines, fittings, clips, couplings, 

nutplates, and brackets; 

y.11. Lavatories; 

y.12. Life rafts; 

y.13. Magnetic compass, magnetic azimuth 

detector; 

y.14. Medical litter provisions; 

y.15. Mirrors, cockpit; 

y.16. Passenger seats including palletized 

seats; 

y.17. Potable water storage systems; 

y.18. Public address (PA) systems; 

y.19. Steel brake wear pads (does not 

include sintered mix or carbon/carbon 

materials) 

y.20. Underwater beacons; 

y.21. Urine collection bags/pads/cups/ 

pumps; 

y.22. Windshield washer and wiper 

systems; 

y.23. Filtered and unfiltered cockpit panel 

knobs, indicators, switches, buttons, and 

dials; 

y.24. Lead-acid and Nickel-Cadmium 

batteries; and 

y.25. Propellers, propeller systems, and 

propeller blades used with reciprocating 

engines. 

y.26. to y.98. [RESERVED] 

y.99. Commodities that would otherwise be 

controlled elsewhere in this entry but that (i) 

Have been determined to be subject to the 

EAR in a commodity jurisdiction 

determination issued by the U.S. Department 

of State and (ii) are not otherwise identified 

elsewhere on the CCL. 

17. In Supplement No. 1 to part 774, 

Category 9, add a new Export Control 

Classification Number 9B610 between 

Export Control Classification Numbers 

9B117 and 9B990 to read as follows: 

9B610 Test, Inspection, and Production 

‘‘Equipment’’ and Related Commodities 

‘‘Specially Designed’’ for the ‘‘Development’’ 

or ‘‘Production’’ of Commodities 

Enumerated in ECCN 9A610 or USML 

Category VIII. 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire entry except 9B610.c and 9B610.y .......................................................................................................... NS Column 1. 

RS applies to entire entry except 9B610.y ................................................................................................................................ RS Column 1. 

MT applies to 9B610.c ............................................................................................................................................................... MT Column 1. 

AT applies to entire entry .......................................................................................................................................................... AT Column 1. 


srobinson on DSK4SPTVN1PROD with PROPOSALS
Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 68689 

License Exceptions 

LVS: $1500 

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 9B610. Paragraph (c)(1) 

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

may be used for items in 9A610.x without the 

need for a determination described in 

§ 740.20(g). 

List of Items Controlled 

Unit: N/A 

Related Controls: 

Related Definitions: N/A 

Items: 

a. Test, inspection, and production 

‘‘equipment’’ ‘‘specially designed’’ for the 

‘‘production’’ or ‘‘development’’ of 

commodities enumerated in ECCN 9A610 

(except 9A610.y) or USML Category VIII, and 

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

attachments’’ ‘‘specially designed’’ therefor. 

b. Environmental test facilities designed or 

modified for the certification, qualification, 

or testing of commodities enumerated in 

ECCN 9A610 (except for 9A610.y) or USML 

Category VIII and ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ ‘‘specially 

designed’’ therefor. 

c. ‘‘Production facilities’’ ‘‘specially 

designed’’ for UAVs or drones that are (i) 

controlled by either USML paragraph VIII(a) 

or ECCN 9A610.a and (ii) capable of a range 

equal to or greater than 300 km. 

d. through x. [RESERVED] 

y. Specific test, inspection, and production 

‘‘equipment’’ ‘‘specially designed’’ for the 

‘‘production’’ or ‘‘development’’ of 

commodities enumerated in ECCN 9A610 

(except for 9A610.y) or USML Category VIII 

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

attachments’’ ‘‘specially designed’’ therefor, 

as follows: 

y.1. through y.98 [RESERVED] 

y.99. Commodities that would otherwise be 

controlled elsewhere in this entry but that (i) 

have been determined to be subject to the 

EAR in a commodity jurisdiction 

determination issued by the U.S. Department 

of State and (ii) are not otherwise identified 

elsewhere on the CCL. 

18. In Supplement No. 1 to part 774, 

Category 9, add a new Export Control 

Classification Number 9B610 between 

Export Control Classification Numbers 

9C110 and the product group header 

that reads ‘‘D. Software’’ to read as 

follows: 

9C610 Materials ‘‘Specially Designed’’ for 

Commodities Controlled by 9A610 not 

Elsewhere Specified in the CCL or the 

USML. 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire entry except 9C610.y ................................................................................................................................ NS Column 1. 

RS applies to entire entry except 9C610.y ................................................................................................................................ RS Column 1. 

AT applies to entire entry .......................................................................................................................................................... AT Column 1. 

License Exceptions 

LVS: $1500 

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 9C610. 

List of Items Controlled 

Unit: N/A 

Related Controls: USML subcategory XIII(f) 

controls structural materials specifically 

designed, developed, configured, modified, 

or adapted for defense articles, such as USML 

subcategory VIII(a) aircraft. 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. Materials ‘‘specially designed’’ for 

commodities enumerated in ECCN 9A610 

(except 9A610.y) not elsewhere specified in 

the USML or the CCL. 

Note 1: Materials enumerated elsewhere in 

the CCL, such as in a CCL Category 1 ECCN, 

are controlled pursuant to controls of the 

applicable ECCN. 

Note 2: Materials ‘‘specially designed’’ for 

an aircraft enumerated in USML Category 

VIII and for an aircraft enumerated in ECCN 

9A610 are subject to the controls of this 

ECCN. 

b. to .x. [RESERVED] 

y. Specific materials ‘‘specially designed’’ 

for commodities enumerated in ECCN 9A610 

(except for 9A610.y), as follows: 

y.1. through y.98 [RESERVED] 

y.99. Materials that would otherwise be 

controlled elsewhere in this entry but that (i) 

have been determined to be subject to the 

EAR in a commodity jurisdiction 

determination issued by the U.S. Department 

of State and (ii) are not otherwise identified 

elsewhere on the CCL. 

19. In Supplement No. 1, Category 9, 

revise Export Control Classification 

Number 9D018 to read as follows: 

9D018 ‘‘Software’’ for the ‘‘use’’ of 

Equipment Controlled by 9A018. 

No items currently are in this ECCN. See 

ECCN [Insert appropriate Category 0 ECCN] 

for ‘‘software’’ related to the ground transport 

vehicles and unarmed all-wheel drive 

vehicles that immediately prior to [Insert 

effective date of final rule that moves these 

vehicles] were classified under 9A018.b. See 

ECCN 9D610 for ‘‘software’’ related to the 

aircraft, refuelers, ground equipment, 

parachute, harnesses, instrument flight 

trainers, and parts and accessories and 

attachments for the forgoing that immediately 

prior to [Insert effective date of final rule that 

moves these items] were classified under 

9A018.a, .c, .d, .e, or .f. 

20. In Supplement No. 1, Category 9, 

add a new Export Control Classification 

Number 9D610 between Export Control 

Classification Numbers 9D105 and 

9D990 to read as follows: 

9D610 ‘‘Software’’ ‘‘Specially Designed’’ 

for the ‘‘Development,’’ ‘‘Production’’ 

Operation Installation, Maintenance, Repair, 

Overhaul or Refurbishing of Military 

Aircraft and Related Commodities 

Controlled by 9A610, Equipment Controlled 

by 9B610, or Materials Controlled by 9C610 

as Follows (See List of Items Controlled). 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to 9D610.a ............................................................................................................................................................... NS Column 1. 

RS applies to 9D610.a and .b ................................................................................................................................................... RS Column 1. 

MT applies to 9D610.c ............................................................................................................................................................... MT Column 1. 

AT applies to entire entry .......................................................................................................................................................... AT Column 1. 

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 9D610. 

Note to License Exceptions Section: 

Supplement No. 4 to part 740 precludes use 

of License Exceptions GOV (other than those 

provisions authorizing exports and reexports 

to personnel and agencies for the U.S. 

government) and STA with respect to 

‘‘development’’ and ‘‘production’’ ‘‘software’’ 


srobinson on DSK4SPTVN1PROD with PROPOSALS
68690 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules 

for specific types of ‘‘parts’’ and 

‘‘components’’ controlled by ECCN 9A610.x. 

and identified in the supplement. 

List of Items Controlled 

Unit: $ value 

Related Controls: ‘‘Software’’ directly 

related to articles enumerated in USML 

Category VIII is subject to the control of 

USML paragraph VIII(i). 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. ‘‘Software’’ (other than software 

controlled in paragraph .y of this entry) 

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

‘‘production,’’ operation or maintenance of 

commodities controlled by ECCN 9A610 

(except 9A610.l, .m, .n, or .y), ECCN 9B610 

(except 9B610.c or .y), or ECCN 9C610 

(except 9C610.y). 

b. ‘‘Software’’ (other than software 

controlled in paragraph .y of this entry) 

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

‘‘production,’’ operation or maintenance of 

commodities controlled by ECCN 9A610.l, 

.m, or .n; or ECCN 9B610.c. 

c. Software’’ (other than software 

controlled in paragraph .y of this entry) 

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

‘‘production,’’ operation, installation, 

maintenance, repair, overhauling or 

refurbishing of commodities controlled by 

ECCN 9A610.l, .m, or .n; or ECCN 9B610.c 

d. to x. [RESERVED] 

y. Specific ‘‘software’’ ‘‘specially designed’’ 

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

operation or maintenance of commodities 

enumerated in ECCN 9A610, 9B610, or 

9C610, as follows: 

y.1. Specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘production,’’ 

‘‘development,’’ operation or maintenance of 

commodities enumerated in ECCN 9A610.y, 

9B610.y, or 9C610.y. 

y.2 through y.98 [RESERVED] 

y.99. Software that would otherwise be 

controlled elsewhere in this entry but that (i) 

has been determined to be subject to the EAR 

in a commodity jurisdiction determination 

issued by the U.S. Department of State and 

(ii) is not otherwise identified elsewhere on 

the CCL. 

21. In Supplement No. 1, Category 9, 

revise Export Control Classification 

Number 9E018 to read as follows: 

9E018 Technology for the ‘‘use’’ of 

Equipment Controlled by 9A018. 

No items currently are in this ECCN. See 

ECCN 0E606 for technology related to the 

ground transport vehicles and unarmed allwheel drive vehicles that immediately prior 

to [Insert effective date of final rule that 

moves these vehicles] were classified under 

9A018.b. See ECCN 9E610 for technology 

related to the aircraft, refuelers, ground 

equipment, parachute, harnesses, instrument 

flight trainers and parts and accessories and 

attachments for the forgoing that immediately 

prior to [Insert effective date of final rule that 

moves these items] were classified under 

9A018.a, .c, .d, .e, or .f. 

22. In Supplement No. 1, Category 9, 

add a new Export Control Classification 

Number 9E610 between Export Control 

Classification Numbers 9E102 and 

9E990 to read as follows: 

9E610 Technology ‘‘Required’’ for the 

‘‘Development,’’ ‘‘Production,’’ Operation, 

Installation, Maintenance, Repair, Overhaul 

or Refurbishing of Military Aircraft and 

Related Commodities Controlled by 9A610, 

Equipment Controlled by 9B610, Materials 

Controlled by 9C610, or ‘‘Software’’ 

Controlled by 9D610 as Follows (See List of 

Items Controlled). 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to technology as described in paragraph .a of this entry for commodities and software that are controlled for 

NS reasons in ECCNs 9A610, 9B610, 9C610 or 9D610.

NS Column 1. 

RS applies to technology as described in paragraph .a of this entry for commodities and software controlled for RS reasons in 9A610, 9B610, 9C610 or 9D610.RS Column 1. 

MT applies to technology as described in paragraph .a of this entry for commodities and software controlled for MT reasons in ECCNs 9A610, 9B610 or 9D610.MT Column 1. 

AT applies to entire entry .......................................................................................................................................................... AT Column 1. 

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 9E610. 

Note to License Exceptions Section: 

Supplement No. 4 to part 740 limits use of 

License Exceptions GOV (other than those 

provisions authorizing exports and reexports 

to personnel and agencies for the US 

government) and STA with respect to 

‘‘development’’ and ‘‘production’’ 

‘‘technology’’ for specific types of ‘‘parts’’ 

and ‘‘components’’ controlled by ECCN 

9A610.x. and identified in the supplement 

other than ‘‘build-to-print technology.’’ 

List of Items Controlled 

Unit: $ value 

Related Controls: Technical data directly 

related to articles enumerated in USML 

Category VIII are subject to the control of 

USML paragraph VIII(i). 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. ‘‘Technology’’ (other than technology 

controlled by paragraph .y of this entry) 

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

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishing of commodities or software 

controlled by ECCN 9A610, 9B610, 9C610 or 

9D610. 

b. through x. [RESERVED] 

y. Specific ‘‘technology’’ ‘‘required’’ for the 

‘‘production,’’ ‘‘development,’’ operation, 

installation, maintenance, repair, or overhaul 

of commodities enumerated in ECCN 9A610, 

9B610, 9C610, or 9D610, as follows: 

y.1. Specific ‘‘technology’’ ‘‘required’’ for 

the ‘‘production,’’ ‘‘development,’’ operation, 

installation, maintenance, repair or overhaul 

of commodities enumerated in ECCN 

9A610.y, 9B610.y, 9C610.y, or 9D610.y. 

y.2. through y.98 [RESERVED] 

y.99. ‘‘Technology’’ that would otherwise 

be controlled elsewhere in this entry but that 

(i) has been determined to be subject to the 

EAR in a commodity jurisdiction 

determination issued by the U.S. Department 

of State and (ii) is not otherwise identified 

elsewhere on the CCL. 

Dated: October 28, 2011. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–28504 Filed 11–4–11; 8:45 am] 

BILLING CODE 3510–33–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 303 

Rules and Regulations Under the 

Textile Fiber Products Identification 

Act 

AGENCY: Federal Trade Commission 

(‘‘FTC’’ or ‘‘Commission’’). 

ACTION: Advance notice of proposed 

rulemaking; request for public 

comment. 

SUMMARY: The Commission 

systematically reviews all its rules and 

guides to ensure that they continue to 

achieve their intended purpose without 

unduly burdening commerce. As part of 

this systematic review, the Commission 

requests public comment on the overall 


srobinson on DSK4SPTVN1PROD with PROPOSALS